DITCH Act Dump Investments in Troublesome Communist Holdings Act
Impact
If enacted, HB 5109 would have considerable implications for tax-exempt organizations, including charities, educational institutions, and other non-profits, limiting their ability to invest in companies that may pose risks to U.S. interests. Organizations would need to conduct thorough due diligence and maintain compliance with new reporting requirements detailed in the bill. Moreover, they would be subjected to a waiver application process if they wish to invest in disqualified entities, which would require justification that their investment outweighs potential national security threats.
Summary
House Bill 5109, known as the 'Dump Investments in Troublesome Communist Holdings Act' (DITCH Act), aims to impose strict limitations on investment by tax-exempt entities in companies incorporated in China or significantly controlled by Chinese interests. The bill outlines definitions for what constitutes a 'disqualified Chinese company' and establishes criteria under which tax-exempt organizations would lose their status if they hold interests in such companies. This legislation seeks to mitigate perceived threats to U.S. national security stemming from foreign investments, specifically highlighting concerns about the influence of the Chinese Communist Party.
Contention
Critics of HB 5109 express concerns that the bill could stifle legitimate investment opportunities and hinder the operations of non-profit organizations that depend on a diverse portfolio for financial support. There are fears that the waiver system could create bureaucratic hurdles, dissuading organizations from making beneficial investments due to the complexities involved. Supporters argue that these measures are necessary for safeguarding U.S. interests and aligning investment practices with national security priorities.
Related
Countering Communist China Act Stop CCP Fentanyl Act Countering Atrocities through Currency Accountability Act of 2024 Sanctioning Supporters of Slave Labor Act DATA Act Deterring America’s Technological Adversaries Act DITCH Act Dump Investments in Troublesome Communist Holdings Act ENABLERS Act Establishing New Authorities for Businesses Laundering and Enabling Risks to Security Act STOP CCP Act Sanctioning Tyrannical and Oppressive People within the Chinese Communist Party Act Disclosing Investments in Foreign Adversaries Act of 2024 PARSA Protecting Americans’ Retirement Savings Act Preventing Adversaries from Developing Critical Capabilities Act
Countering Communist China Act Stop CCP Fentanyl Act Countering Atrocities through Currency Accountability Act of 2024 Sanctioning Supporters of Slave Labor Act DATA Act Deterring America’s Technological Adversaries Act DITCH Act Dump Investments in Troublesome Communist Holdings Act ENABLERS Act Establishing New Authorities for Businesses Laundering and Enabling Risks to Security Act STOP CCP Act Sanctioning Tyrannical and Oppressive People within the Chinese Communist Party Act Disclosing Investments in Foreign Adversaries Act of 2024 PARSA Protecting Americans’ Retirement Savings Act Preventing Adversaries from Developing Critical Capabilities Act
Securing American Families and Enterprises from People's Republic of China Investments Act or the SAFE from PRC Investments Act This bill requires certain issuers of securities and funds traded on an exchange to report on connections to China or the Communist Party of China. In particular, an issuer with specified connections to China must annually disclose a variety of details, including whether executive-level employees, senior directors, or board members are members of the Communist Party of China; interactions with the party; expenditures in China; expenditures in the United States regarding operations and lobbying activities; and the ability of the Public Company Accounting Oversight Board to audit the issuer. Additionally, an exchange-traded fund that invests in a Chinese company must annually disclose about that company ownership information, party involvement, whether the company participates in specified Chinese policies or activities, any ties to U.S.-sanctioned individuals, and the types of products or services produced by the company.
ANTI-SOCIAL CCP Act Averting the National Threat of Internet Surveillance, Oppressive Censorship and Influence, and Algorithmic Learning by the Chinese Communist Party Act
A bill for an act relating to controlled substances, including certain controlled substances schedules and precursor substances reporting requirements, making penalties applicable, and including effective date provisions. (Formerly HSB 25.) Effective date: 03/28/2025.
A bill for an act relating to controlled substances, including certain controlled substances schedules and precursor substances reporting requirements, making penalties applicable, and including effective date provisions.