Us Congress 2025-2026 Regular Session

Us Congress House Bill HB2246 Compare Versions

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Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 2246
5	5	To protect the national security of the United States by imposing sanctions
6	6	with respect to certain persons of the People’s Republic of China and
7	7	prohibiting and requiring notifications with respect to certain investments
8	8	by United States persons in the People’s Republic of China, and for
9	9	other purposes.
10	10	IN THE HOUSE OF REPRESENTATIVES
11	11	MARCH21, 2025
12	12	Mr. B
13	13	ARR(for himself, Mr. MOOLENAAR, Mr. MCCAUL, Mr. GOLDENof
14	14	Maine, and Mr. S
15	15	UOZZI) introduced the following bill; which was referred
16	16	to the Committee on Foreign Affairs, and in addition to the Committee
17	17	on Financial Services, for a period to be subsequently determined by the
18	18	Speaker, in each case for consideration of such provisions as fall within
19	19	the jurisdiction of the committee concerned
20	20	A BILL
21	21	To protect the national security of the United States by
22	22	imposing sanctions with respect to certain persons of
23	23	the People’s Republic of China and prohibiting and re-
24	24	quiring notifications with respect to certain investments
25	25	by United States persons in the People’s Republic of
26	26	China, and for other purposes.
27	27	Be it enacted by the Senate and House of Representa-1
28	28	tives of the United States of America in Congress assembled, 2
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31	31	•HR 2246 IH
32	32	SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 1
33	33	(a) S
34	34	HORTTITLE.—This title may be cited as the 2
35	35	‘‘Foreign Investment Guardrails to Help Thwart 3
36	36	(FIGHT) China Act’’. 4
37	37	(b) T
38	38	ABLE OFCONTENTS.—The table of contents for 5
39	39	this Act is as follows: 6
40	40	Sec. 1. Short title; table of contents.
41	41	Sec. 2. Secretary defined.
42	42	Sec. 3. Severability.
43	43	Sec. 4. Authorization of appropriations.
44	44	Sec. 5. Termination.
45	45	TITLE I—IMPOSITION OF SANCTIONS
46	46	Sec. 101. Imposition of sanctions.
47	47	Sec. 102. Definitions.
48	48	TITLE II—PROHIBITION AND NOTIFICATION ON INVESTMENTS
49	49	RELATING TO COVERED NATIONAL SECURITY TRANSACTIONS
50	50	Sec. 201. Prohibition and notification on investments relating to covered na-
51	51	tional security transactions.
52	52	TITLE III—SECURITIES AND RELATED MATTERS
53	53	Sec. 301. Requirements relating to the Non-SDN Chinese Military-Industrial
54	54	Complex Companies List.
55	55	SEC. 2. SECRETARY DEFINED.
56	56	7
57	57	Except as otherwise provided, in this Act, the term 8
58	58	‘‘Secretary’’ means the Secretary of the Treasury. 9
59	59	SEC. 3. SEVERABILITY. 10
60	60	If any provision of this Act, or the application there-11
61	61	of, is held invalid, the validity of the remainder of this 12
62	62	Act and the application of such provision to other persons 13
63	63	and circumstances shall not be affected thereby. 14
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66	66	•HR 2246 IH
67	67	SEC. 4. AUTHORIZATION OF APPROPRIATIONS. 1
68	68	(a) I
69	69	NGENERAL.—There is authorized to be appro-2
70	70	priated $150,000,000 to the Department of the Treasury, 3
71	71	out of which amounts may be transferred to the Depart-4
72	72	ment of Commerce to jointly conduct outreach to industry 5
73	73	and persons affected by this Act, for each of the first two 6
74	74	fiscal years beginning on or after the date of the enact-7
75	75	ment of this Act, to carry out this Act. 8
76	76	(b) H
77	77	IRINGAUTHORITY.— 9
78	78	(1) B
79	79	Y THE PRESIDENT.—The President may 10
80	80	appoint, without regard to the provisions of sections 11
81	81	3309 through 3318 of title 5, United States Code, 12
82	82	not more than 15 individuals directly to positions in 13
83	83	the competitive service (as defined in section 2102 of 14
84	84	that title) to carry out this Act. 15
85	85	(2) B
86	86	Y AGENCIES.—The Secretary and the Sec-16
87	87	retary of Commerce may appoint, without regard to 17
88	88	the provisions of sections 3309 through 3318 of title 18
89	89	5, United States Code, individuals directly to posi-19
90	90	tions in the competitive service (as defined in section 20
91	91	2102 of that title) of the Department of the Treas-21
92	92	ury and the Department of Commerce, respectively, 22
93	93	to carry out this Act. 23
94	94	SEC. 5. TERMINATION. 24
95	95	This Act shall cease to have any force or effect on 25
96	96	the date on which the Secretary of Commerce revises sec-26
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99	99	•HR 2246 IH
100	100	tion 791.4 of title 15, Code of Federal Regulations, to re-1
101	101	move the People’s Republic of China from the list of for-2
102	102	eign adversaries contained in such section. 3
103	103	TITLE I—IMPOSITION OF 4
104	104	SANCTIONS 5
105	105	SEC. 101. IMPOSITION OF SANCTIONS. 6
106	106	(a) I
107	107	NGENERAL.—The President may impose the 7
108	108	sanctions described in subsection (b) with respect to any 8
109	109	foreign person determined by the Secretary, in consulta-9
110	110	tion with the Secretary of State, to be a covered foreign 10
111	111	person. 11
112	112	(b) S
113	113	ANCTIONSDESCRIBED.—The President may ex-12
114	114	ercise all of the powers granted to the President under 13
115	115	the International Emergency Economic Powers Act (50 14
116	116	U.S.C. 1701 et seq.) to the extent necessary to block and 15
117	117	prohibit all transactions in property and interests in prop-16
118	118	erty of a foreign person that is determined to be a covered 17
119	119	foreign person pursuant to subsection (a) if such property 18
120	120	and interests in property are in the United States, come 19
121	121	within the United States, or are or come within the posses-20
122	122	sion or control of a United States person. 21
123	123	(c) P
124	124	ENALTIES.—The penalties provided for in sub-22
125	125	sections (b) and (c) of section 206 of the International 23
126	126	Emergency Economic Powers Act (50 U.S.C. 1705) shall 24
127	127	apply to any person who violates, attempts to violate, con-25
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130	130	•HR 2246 IH
131	131	spires to violate, or causes a violation of any prohibition 1
132	132	of this section, or an order or regulation prescribed under 2
133	133	this section, to the same extent that such penalties apply 3
134	134	to a person that commits an unlawful act described in sec-4
135	135	tion 206(a) of such Act (50 U.S.C. 1705(a)). 5
136	136	(d) E
137	137	XCEPTION FORINTELLIGENCE AND LAWEN-6
138	138	FORCEMENT ACTIVITIES.—Sanctions under this section 7
139	139	shall not apply with respect to any activity subject to the 8
140	140	reporting requirements under title V of the National Secu-9
141	141	rity Act of 1947 (50 U.S.C. 3091 et seq.) or any author-10
142	142	ized intelligence activities of the United States. 11
143	143	(e) E
144	144	XCEPTION FORUNITEDSTATESGOVERNMENT 12
145	145	A
146	146	CTIVITIES.—Nothing in this section shall prohibit trans-13
147	147	actions for the conduct of the official business of the Fed-14
148	148	eral Government by employees, grantees, or contractors 15
149	149	thereof. 16
150	150	(f) R
151	151	EPORT TOCONGRESS.—Not later than 365 days 17
152	152	after the date of the enactment of this Act, and annually 18
153	153	thereafter for 7 years, the Secretary shall submit to the 19
154	154	appropriate congressional committees a report that— 20
155	155	(1) states whether each foreign person on the 21
156	156	Non-SDN Chinese Military-Industrial Complex Com-22
157	157	panies List is a covered foreign person; and 23
158	158	(2) shall be submitted in unclassified form, but 24
159	159	may include a classified annex. 25
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162	162	•HR 2246 IH
163	163	(g) CONSIDERATION OF CERTAININFORMATION IN 1
164	164	I
165	165	MPOSINGSANCTIONS.—In determining whether a foreign 2
166	166	person is a covered foreign person, the President— 3
167	167	(1) may consider credible information obtained 4
168	168	by other countries, nongovernmental organizations, 5
169	169	or the appropriate congressional committees that re-6
170	170	lates to the foreign person; and 7
171	171	(2) may consider any other information that the 8
172	172	Secretary deems relevant. 9
173	173	(h) A
174	174	DMINISTRATIVEPROVISIONS.—The President 10
175	175	may exercise all authorities provided under sections 203 11
176	176	and 205 of the International Emergency Economic Powers 12
177	177	Act (50 U.S.C. 1702 and 1704) to carry out this section. 13
178	178	(i) D
179	179	ELEGATION.—The President shall delegate the 14
180	180	authorities granted by this section to the Secretary. 15
181	181	SEC. 102. DEFINITIONS. 16
182	182	In this title: 17
183	183	(1) A
184	184	PPROPRIATE CONGRESSIONAL COMMIT -18
185	185	TEES.—The term ‘‘appropriate congressional com-19
186	186	mittees’’ means— 20
187	187	(A) the Committee on Financial Services 21
188	188	and the Committee on Foreign Affairs of the 22
189	189	House of Representatives; and 23
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192	192	•HR 2246 IH
193	193	(B) the Committee on Banking, Housing, 1
194	194	and Urban Affairs and the Committee on For-2
195	195	eign Relations of the Senate. 3
196	196	(2) C
197	197	OUNTRY OF CONCERN .—The term ‘‘coun-4
198	198	try of concern’’— 5
199	199	(A) means the People’s Republic of China; 6
200	200	and 7
201	201	(B) includes the Hong Kong Special Ad-8
202	202	ministrative Region and the Macau Special Ad-9
203	203	ministrative Region. 10
204	204	(3) C
205	205	OVERED FOREIGN PERSON .—The term 11
206	206	‘‘covered foreign person’’ means a foreign person— 12
207	207	(A)(i) that is incorporated in, has a prin-13
208	208	cipal place of business in, or is organized under 14
209	209	the laws of a country of concern; 15
210	210	(ii) the equity securities of which are pri-16
211	211	marily traded in the ordinary course of business 17
212	212	on one or more exchanges in a country of con-18
213	213	cern; 19
214	214	(iii) that is a member of the Central Com-20
215	215	mittee of the Chinese Communist Party; 21
216	216	(iv) that is the state or the government of 22
217	217	a country of concern, as well as any political 23
218	218	subdivision, agency, or instrumentality thereof; 24
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221	221	•HR 2246 IH
222	222	(v) that is subject to the direction or con-1
223	223	trol of any entity described in clause (i), (ii), 2
224	224	(iii), or (iv); or 3
225	225	(vi) that is owned in the aggregate, directly 4
226	226	or indirectly, 50 percent or more by an entity 5
227	227	or a group of entities described in clause (i), 6
228	228	(ii), (iii), or (iv); and 7
229	229	(B) that knowingly engaged in significant 8
230	230	operations in the defense and related materiel 9
231	231	sector or the surveillance technology sector of 10
232	232	the economy of a country of concern. 11
233	233	(4) F
234	234	OREIGN PERSON.—The term ‘‘foreign per-12
235	235	son’’ means a person, country, state, or government 13
236	236	(and any political subdivision, agency, or instrumen-14
237	237	tality thereof) that is not a United States person. 15
238	238	(5) N
239	239	ON-SDN CHINESE MILITARY-INDUSTRIAL 16
240	240	COMPLEX COMPANIES LIST .—The term ‘‘Non-SDN 17
241	241	Chinese Military-Industrial Complex Companies 18
242	242	List’’ means the list maintained by the Office of 19
243	243	Foreign Assets Control of the Department of the 20
244	244	Treasury under Executive Order 13959, as amended 21
245	245	by Executive Order 14032 (50 U.S.C. 1701 note; re-22
246	246	lating to addressing the threat from securities in-23
247	247	vestments that finance certain companies of the Peo-24
248	248	ple’s Republic of China), or any successor order. 25
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251	251	•HR 2246 IH
252	252	(6) UNITED STATES PERSON .—The term 1
253	253	‘‘United States person’’ means— 2
254	254	(A) any United States citizen or an alien 3
255	255	lawfully admitted for permanent residence to 4
256	256	the United States; 5
257	257	(B) an entity organized under the laws of 6
258	258	the United States or of any jurisdiction within 7
259	259	the United States (including any foreign branch 8
260	260	of such an entity); or 9
261	261	(C) any person in the United States. 10
262	262	TITLE II—PROHIBITION AND NO-11
263	263	TIFICATION ON INVEST-12
264	264	MENTS RELATING TO COV-13
265	265	ERED NATIONAL SECURITY 14
266	266	TRANSACTIONS 15
267	267	SEC. 201. PROHIBITION AND NOTIFICATION ON INVEST-16
268	268	MENTS RELATING TO COVERED NATIONAL 17
269	269	SECURITY TRANSACTIONS. 18
270	270	The Defense Production Act of 1950 (50 U.S.C. 19
271	271	4501 et seq.) is amended by adding at the end the fol-20
272	272	lowing: 21
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275	275	•HR 2246 IH
276	276	‘‘TITLE VIII—PROHIBITION AND 1
277	277	NOTIFICATION ON INVEST-2
278	278	MENTS RELATING TO COV-3
279	279	ERED NATIONAL SECURITY 4
280	280	TRANSACTIONS 5
281	281	‘‘SEC. 801. PROHIBITION ON INVESTMENTS. 6
282	282	‘‘(a) I
283	283	NGENERAL.—The Secretary may prohibit, in 7
284	284	accordance with regulations issued under subsection (e), 8
285	285	a United States person from knowingly engaging in a cov-9
286	286	ered national security transaction in a prohibited tech-10
287	287	nology. 11
288	288	‘‘(b) E
289	289	VASION.—Any transaction by a United States 12
290	290	person or within the United States that evades or avoids, 13
291	291	has the purpose of evading or avoiding, causes a violation 14
292	292	of, or attempts to violate the prohibition set forth in sub-15
293	293	section (a) is prohibited. 16
294	294	‘‘(c) W
295	295	AIVER.—Subject to subsection (d), the Sec-17
296	296	retary is authorized to exempt from the prohibition set 18
297	297	forth in subsection (a) any activity determined by the 19
298	298	President, in consultation with the Secretary, the Sec-20
299	299	retary of Commerce and, as appropriate, the heads of 21
300	300	other relevant Federal departments and agencies, to be in 22
301	301	the national interest of the United States. 23
302	302	‘‘(d) C
303	303	ONGRESSIONAL NOTIFICATION.—The Sec-24
304	304	retary shall— 25
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307	307	•HR 2246 IH
308	308	‘‘(1) notify the appropriate congressional com-1
309	309	mittees not later than 5 business days after issuing 2
310	310	a waiver under subsection (c); and 3
311	311	‘‘(2) include in such notification an identifica-4
312	312	tion of the national interest justifying the use of the 5
313	313	waiver. 6
314	314	‘‘(e) R
315	315	EGULATIONS.— 7
316	316	‘‘(1) I
317	317	N GENERAL.—The Secretary, in consulta-8
318	318	tion with the Secretary of Commerce and, as appro-9
319	319	priate, the heads of other relevant Federal depart-10
320	320	ments and agencies, may issue regulations to carry 11
321	321	out this section in accordance with subchapter II of 12
322	322	chapter 5 and chapter 7 of title 5, United States 13
323	323	Code (commonly known as ‘Administrative Proce-14
324	324	dure Act’). 15
325	325	‘‘(2) N
326	326	ON-BINDING FEEDBACK.— 16
327	327	‘‘(A) I
328	328	N GENERAL.—The regulations issued 17
329	329	under paragraph (1) shall include a process 18
330	330	under which a person can request non-binding 19
331	331	feedback on a confidential basis as to whether 20
332	332	a transaction would constitute a covered na-21
333	333	tional security transaction in a prohibited tech-22
334	334	nology. 23
335	335	‘‘(B) A
336	336	UTHORITY TO LIMIT FRIVOLOUS 24
337	337	FEEDBACK REQUESTS .—In establishing the 25
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340	340	•HR 2246 IH
341	341	process required by subparagraph (A), the Sec-1
342	342	retary may prescribe limitations on requests for 2
343	343	feedback identified as frivolous for purposes of 3
344	344	this subsection. 4
345	345	‘‘(3) N
346	346	OTICE AND OPPORTUNITY TO CURE .— 5
347	347	‘‘(A) I
348	348	N GENERAL.—The regulations issued 6
349	349	under paragraph (1) shall account for whether 7
350	350	a United States person has self-identified a vio-8
351	351	lation of the prohibition set forth in subsection 9
352	352	(a) in determining the legal consequences of 10
353	353	that violation. 11
354	354	‘‘(B) S
355	355	ELF-DISCLOSURE LETTERS .—The 12
356	356	regulations issued under paragraph (1) shall 13
357	357	dictate the form and content of a letter of self- 14
358	358	disclosure, which shall include relevant facts 15
359	359	about the violation, why the United States per-16
360	360	son believes its activity to have violated the pro-17
361	361	hibition set forth in subsection (a), and a pro-18
362	362	posal for mitigation of the harm of such action. 19
363	363	‘‘(4) P
364	364	UBLIC NOTICE AND COMMENT .—The reg-20
365	365	ulations issued under paragraph (1) shall be subject 21
366	366	to public notice and comment. 22
367	367	‘‘(5) L
368	368	OW-BURDEN REGULATIONS .—In issuing 23
369	369	regulations under paragraph (1), the Secretary shall 24
370	370	balance the priority of protecting the national secu-25
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373	373	•HR 2246 IH
374	374	rity interest of the United States while, to the extent 1
375	375	practicable— 2
376	376	‘‘(A) minimizing the cost and complexity of 3
377	377	compliance for affected parties, including the 4
378	378	duplication of reporting requirements under 5
379	379	current regulations; 6
380	380	‘‘(B) adopting the least burdensome alter-7
381	381	native that achieves regulatory objectives; and 8
382	382	‘‘(C) prioritizing transparency and stake-9
383	383	holder involvement in the process of issuing the 10
384	384	rules. 11
385	385	‘‘(6) P
386	386	ENALTIES.— 12
387	387	‘‘(A) I
388	388	N GENERAL.—The regulations issued 13
389	389	under paragraph (1) shall provide for the impo-14
390	390	sition of civil penalties described in subpara-15
391	391	graph (B) for violations of the prohibition set 16
392	392	forth in subsection (a). 17
393	393	‘‘(B) P
394	394	ENALTIES DESCRIBED.— 18
395	395	‘‘(i) U
396	396	NLAWFUL ACTS.—It shall be 19
397	397	unlawful for a person to violate, attempt to 20
398	398	violate, conspire to violate, or cause a vio-21
399	399	lation of any license, order, regulation, no-22
400	400	tification requirement, or prohibition 23
401	401	issued under this section. 24
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404	404	•HR 2246 IH
405	405	‘‘(ii) CIVIL PENALTY.—The Secretary 1
406	406	may impose a civil penalty on any person 2
407	407	who commits an unlawful act described in 3
408	408	clause (i) in an amount not to exceed the 4
409	409	greater of— 5
410	410	‘‘(I) $250,000; or 6
411	411	‘‘(II) an amount that is twice the 7
412	412	amount of the transaction that is the 8
413	413	basis of the violation with respect to 9
414	414	which the penalty is imposed. 10
415	415	‘‘(iii) D
416	416	IVESTMENT.—The Secretary 11
417	417	may compel the divestment of a covered 12
418	418	national security transaction in a prohib-13
419	419	ited technology determined to be in viola-14
420	420	tion of this title. 15
421	421	‘‘(iv) R
422	422	ELIEF.—The President may di-16
423	423	rect the Attorney General of the United 17
424	424	States to seek appropriate relief, including 18
425	425	divestment relief, in the district courts of 19
426	426	the United States, in order to implement 20
427	427	and enforce this title. 21
428	428	‘‘(7) B
429	429	URDEN OF PROOF .—In accordance with 22
430	430	section 556(d) of title 5, United States Code, in an 23
431	431	enforcement action for a violation of the prohibition 24
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434	434	•HR 2246 IH
435	435	set forth in subsection (a), the burden of proof shall 1
436	436	be upon the Secretary. 2
437	437	‘‘SEC. 802. NOTIFICATION ON INVESTMENTS. 3
438	438	‘‘(a) M
439	439	ANDATORYNOTIFICATION.—Not later than 4
440	440	450 days after the date of the enactment of this title, the 5
441	441	Secretary shall issue regulations prescribed in accordance 6
442	442	with subsection (b), to require a United States person that 7
443	443	engages in a covered national security transaction in a 8
444	444	prohibited technology (unless the Secretary has exercised 9
445	445	the authority provided by section 801(a) to prohibit know-10
446	446	ingly engaging in such covered national security trans-11
447	447	action) or a notifiable technology to submit to the Sec-12
448	448	retary a written notification of the transaction not later 13
449	449	than 30 days after the completion date of the transaction. 14
450	450	‘‘(b) R
451	451	EGULATIONS.— 15
452	452	‘‘(1) I
453	453	N GENERAL.—Not later than 450 days 16
454	454	after the date of the enactment of this title, the Sec-17
455	455	retary, in consultation with the Secretary of Com-18
456	456	merce and, as appropriate, the heads of other rel-19
457	457	evant Federal departments and agencies, shall issue 20
458	458	regulations to carry out this section in accordance 21
459	459	with subchapter II of chapter 5 and chapter 7 of 22
460	460	title 5, United States Code (commonly known as 23
461	461	‘Administrative Procedure Act’). 24
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464	464	•HR 2246 IH
465	465	‘‘(2) PUBLIC NOTICE AND COMMENT .—The reg-1
466	466	ulations issued under paragraph (1) shall be subject 2
467	467	to public notice and comment. 3
468	468	‘‘(3) L
469	469	OW-BURDEN REGULATIONS .—In issuing 4
470	470	regulations under paragraph (1), the Secretary shall 5
471	471	balance the priority of protecting the national secu-6
472	472	rity interest of the United States while, to the extent 7
473	473	practicable— 8
474	474	‘‘(A) minimizing the cost and complexity of 9
475	475	compliance for affected parties, including the 10
476	476	duplication of reporting requirements under 11
477	477	current regulation; 12
478	478	‘‘(B) adopting the least burdensome alter-13
479	479	native that achieves regulatory objectives; and 14
480	480	‘‘(C) prioritizing transparency and stake-15
481	481	holder involvement in the process of issuing the 16
482	482	rules. 17
483	483	‘‘(4) P
484	484	ENALTIES.— 18
485	485	‘‘(A) I
486	486	N GENERAL.—The regulations issued 19
487	487	under paragraph (1) shall provide for the impo-20
488	488	sition of civil penalties described in subpara-21
489	489	graph (B) for violations of the notification re-22
490	490	quirement set forth in subsection (a). 23
491	491	‘‘(B) P
492	492	ENALTIES DESCRIBED.— 24
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495	495	•HR 2246 IH
496	496	‘‘(i) UNLAWFUL ACTS.—It shall be 1
497	497	unlawful for a person to violate, attempt to 2
498	498	violate, conspire to violate, or cause a vio-3
499	499	lation of any license, order, regulation, no-4
500	500	tification requirement, or prohibition 5
501	501	issued under this section. 6
502	502	‘‘(ii) C
503	503	IVIL PENALTY.—A civil penalty 7
504	504	may be imposed on any person who com-8
505	505	mits an unlawful act described in clause (i) 9
506	506	in an amount not to exceed the greater 10
507	507	of— 11
508	508	‘‘(I) $250,000; or 12
509	509	‘‘(II) an amount that is twice the 13
510	510	amount of the transaction that is the 14
511	511	basis of the violation with respect to 15
512	512	which the penalty is imposed. 16
513	513	‘‘(5) B
514	514	URDEN OF PROOF .—In accordance with 17
515	515	section 556(d) of title 5, United States Code, in an 18
516	516	enforcement action for a violation of the prohibition 19
517	517	set forth in subsection (a), the burden of proof shall 20
518	518	be upon the Secretary. 21
519	519	‘‘(6) C
520	520	OMPLETENESS OF NOTIFICATION .— 22
521	521	‘‘(A) I
522	522	N GENERAL.—The Secretary shall, 23
523	523	upon receipt of a notification under subsection 24
524	524	(a), and in consultation with the Secretary of 25
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526	526	mprince on LAP1J3WLY3PROD with $$_JOB 18
527	527	•HR 2246 IH
528	528	Commerce, promptly inspect the notification for 1
529	529	completeness. 2
530	530	‘‘(B) I
531	531	NCOMPLETE NOTIFICATIONS .—If a 3
532	532	notification submitted under subsection (a) is 4
533	533	incomplete, the Secretary shall promptly inform 5
534	534	the United States person that submits the noti-6
535	535	fication that the notification is not complete 7
536	536	and provide an explanation of relevant material 8
537	537	respects in which the notification is not com-9
538	538	plete. 10
539	539	‘‘(7) I
540	540	DENTIFICATION OF NON -NOTIFIED ACTIV-11
541	541	ITY.—The Secretary, in coordination with the Sec-12
542	542	retary of Commerce, shall establish a process to 13
543	543	identify covered national security transactions in a 14
544	544	prohibited technology or a notifiable technology for 15
545	545	which— 16
546	546	‘‘(A) a notification is not submitted to the 17
547	547	Secretary under subsection (a); and 18
548	548	‘‘(B) information is reasonably available. 19
549	549	‘‘(c) C
550	550	ONFIDENTIALITY OFINFORMATION.— 20
551	551	‘‘(1) I
552	552	N GENERAL.—Except as provided in para-21
553	553	graph (2), any information or documentary material 22
554	554	filed with the Secretary pursuant to this section 23
555	555	shall be exempt from disclosure under section 24
556	556	552(b)(3) of title 5, United States Code, and no 25
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558	558	mprince on LAP1J3WLY3PROD with $$_JOB 19
559	559	•HR 2246 IH
560	560	such information or documentary material may be 1
561	561	made public by any government agency or Member 2
562	562	of Congress. 3
563	563	‘‘(2) E
564	564	XCEPTIONS.—The exemption from disclo-4
565	565	sure provided by paragraph (1) shall not prevent the 5
566	566	disclosure of the following: 6
567	567	‘‘(A) Information relevant to any adminis-7
568	568	trative or judicial action or proceeding. 8
569	569	‘‘(B) Information provided to Congress or 9
570	570	any of the appropriate congressional commit-10
571	571	tees. 11
572	572	‘‘(C) Information important to the national 12
573	573	security analysis or actions of the Secretary to 13
574	574	any domestic governmental entity, or to any 14
575	575	foreign governmental entity of an ally or part-15
576	576	ner of the United States, under the direction 16
577	577	and authorization of the Secretary, only to the 17
578	578	extent necessary for national security purposes, 18
579	579	and subject to appropriate confidentiality and 19
580	580	classification requirements. 20
581	581	‘‘(D) Information that the parties have 21
582	582	consented to be disclosed to third parties. 22
583	583	‘‘(E) Information where the disclosure of 23
584	584	such information is determined by the Secretary 24
585	585	to be in the national security interest. 25
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588	588	•HR 2246 IH
589	589	‘‘(d) INAPPLICABILITY.—If the Secretary prohibits a 1
590	590	covered national security transaction in a prohibited tech-2
591	591	nology under section 801, the requirements of this section 3
592	592	shall not apply with respect to the covered national secu-4
593	593	rity transaction. 5
594	594	‘‘SEC. 803. REPORT. 6
595	595	‘‘(a) I
596	596	NGENERAL.—Not later than one year after the 7
597	597	date on which the regulations issued under section 801(e) 8
598	598	take effect, and not less frequently than annually there-9
599	599	after for 7 years, the Secretary, in consultation with the 10
600	600	Secretary of Commerce, shall submit to the appropriate 11
601	601	congressional committees a report that— 12
602	602	‘‘(1) lists all enforcement actions taken subject 13
603	603	to the regulations during the year preceding submis-14
604	604	sion of the report, which includes, with respect to 15
605	605	each such action, a description of— 16
606	606	‘‘(A) the prohibited technology or notifiable 17
607	607	technology; 18
608	608	‘‘(B) the covered national security trans-19
609	609	action; and 20
610	610	‘‘(C) the covered foreign person; 21
611	611	‘‘(2) provides an assessment of whether Con-22
612	612	gress should amend the definition of the term ‘pro-23
613	613	hibited technology’ by— 24
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616	616	•HR 2246 IH
617	617	‘‘(A) identifying additional technologies, 1
618	618	not currently listed as a prohibited technology, 2
619	619	that the Secretary, in consultation with the Sec-3
620	620	retary of Commerce and, as applicable, the Sec-4
621	621	retary of Defense, the Secretary of State, the 5
622	622	Secretary of Energy, the Director of National 6
623	623	Intelligence, and the heads of any other rel-7
624	624	evant Federal agencies, determines may pose an 8
625	625	acute threat to the national security of the 9
626	626	United States if developed or acquired by a 10
627	627	country of concern; 11
628	628	‘‘(B) explaining why each technology iden-12
629	629	tified in subparagraph (A) may pose an acute 13
630	630	threat to the national security of the United 14
631	631	States if developed or acquired by a country of 15
632	632	concern; and 16
633	633	‘‘(C) recommending the repeal of tech-17
634	634	nologies from the category of prohibited tech-18
635	635	nology to the extent that the technologies no 19
636	636	longer pose an acute threat to the national se-20
637	637	curity of the United States if developed or ac-21
638	638	quired by a country of concern; 22
639	639	‘‘(3) lists all notifications submitted under sec-23
640	640	tion 802 during the year preceding submission of the 24
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642	642	mprince on LAP1J3WLY3PROD with $$_JOB 22
643	643	•HR 2246 IH
644	644	report and includes, with respect to each such notifi-1
645	645	cation— 2
646	646	‘‘(A) basic information on each party to 3
647	647	the covered national security transaction with 4
648	648	respect to which the notification was submitted; 5
649	649	and 6
650	650	‘‘(B) the nature of the covered national se-7
651	651	curity transaction that was the subject to the 8
652	652	notification, including the elements of the cov-9
653	653	ered national security transaction that neces-10
654	654	sitated a notification; 11
655	655	‘‘(4) includes a summary of those notifications, 12
656	656	disaggregated by prohibited technology, notifiable 13
657	657	technology, by covered national security transaction, 14
658	658	and by country of concern; 15
659	659	‘‘(5) provides additional context and informa-16
660	660	tion regarding trends in the prohibited technology, 17
661	661	notifiable technology, the types of covered national 18
662	662	security transaction, and the countries involved in 19
663	663	those notifications; and 20
664	664	‘‘(6) assesses the overall impact of those notifi-21
665	665	cations, including recommendations for— 22
666	666	‘‘(A) expanding existing Federal programs 23
667	667	to support the production or supply of prohib-24
668	668	ited technologies or notifiable technologies in 25
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670	670	mprince on LAP1J3WLY3PROD with $$_JOB 23
671	671	•HR 2246 IH
672	672	the United States, including the potential of ex-1
673	673	isting authorities to address any related na-2
674	674	tional security concerns; 3
675	675	‘‘(B) investments needed to enhance pro-4
676	676	hibited technologies or notifiable technologies 5
677	677	and reduce dependence on countries of concern 6
678	678	regarding those technologies; and 7
679	679	‘‘(C) the continuation, expansion, or modi-8
680	680	fication of the implementation and administra-9
681	681	tion of this title, including recommendations 10
682	682	with respect to whether the definition of the 11
683	683	term ‘country of concern’ under section 807(2) 12
684	684	should be amended to add or remove countries. 13
685	685	‘‘(b) C
686	686	ONSIDERATION OF CERTAININFORMATION.— 14
687	687	In preparing the report pursuant to subsection (a), the 15
688	688	Secretary— 16
689	689	‘‘(1) shall consider information provided jointly 17
690	690	by the chairperson and ranking member of any of 18
691	691	the appropriate congressional committees; 19
692	692	‘‘(2) may consider credible information obtained 20
693	693	by other countries and nongovernmental organiza-21
694	694	tions that monitor the military, surveillance, intel-22
695	695	ligence, or technology capabilities of a country of 23
696	696	concern; and 24
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698	698	mprince on LAP1J3WLY3PROD with $$_JOB 24
699	699	•HR 2246 IH
700	700	‘‘(3) may consider any other information that 1
701	701	the Secretary deems relevant. 2
702	702	‘‘(c) F
703	703	ORM OFREPORT.—Each report required by 3
704	704	this section shall be submitted in unclassified form, but 4
705	705	may include a classified annex. 5
706	706	‘‘(d) T
707	707	ESTIMONYREQUIRED.—Not later than one 6
708	708	year after the date of the enactment of this title, and an-7
709	709	nually thereafter for five years, the Secretary and the Sec-8
710	710	retary of Commerce shall each provide to the Committee 9
711	711	on Banking, Housing, and Urban Affairs of the Senate 10
712	712	and the Committee on Financial Services of the House of 11
713	713	Representatives testimony with respect to the national se-12
714	714	curity threats relating to investments by United States 13
715	715	persons in countries of concern and broader international 14
716	716	capital flows. 15
717	717	‘‘(e) R
718	718	EQUESTS BYAPPROPRIATECONGRESSIONAL 16
719	719	C
720	720	OMMITTEES.— 17
721	721	‘‘(1) I
722	722	N GENERAL.—After receiving a request 18
723	723	that meets the requirements of paragraph (2) with 19
724	724	respect to whether a technology should be included 20
725	725	in the amendments as described in subsection (a)(2), 21
726	726	the Secretary shall, in preparing the report pursuant 22
727	727	to subsection (a)— 23
728	728	‘‘(A) determine if that technology may 24
729	729	pose an acute threat to the national security of 25
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732	732	•HR 2246 IH
733	733	the United States if developed or acquired by a 1
734	734	country of concern; and 2
735	735	‘‘(B) include in the report pursuant to sub-3
736	736	section (a) an explanation with respect to that 4
737	737	determination that includes— 5
738	738	‘‘(i) a statement of whether or not the 6
739	739	technology, as determined by the Sec-7
740	740	retary, may pose an acute threat to the na-8
741	741	tional security of the United States if de-9
742	742	veloped or acquired by a country of con-10
743	743	cern; and 11
744	744	‘‘(ii) if the Secretary determines 12
745	745	that— 13
746	746	‘‘(I) the technology may pose an 14
747	747	acute threat to the national security 15
748	748	of the United States if developed or 16
749	749	acquired by a country of concern, an 17
750	750	explanation for such determination 18
751	751	and a recommendation whether that 19
752	752	technology should be named a prohib-20
753	753	ited technology or a notifiable tech-21
754	754	nology; and 22
755	755	‘‘(II) the technology would not 23
756	756	pose an acute threat to the national 24
757	757	security of the United States if devel-25
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759	759	mprince on LAP1J3WLY3PROD with $$_JOB 26
760	760	•HR 2246 IH
761	761	oped or acquired by a country of con-1
762	762	cern, an explanation for such deter-2
763	763	mination. 3
764	764	‘‘(2) R
765	765	EQUIREMENTS.—A request under para-4
766	766	graph (1) with respect to whether a technology may 5
767	767	pose an acute threat to the national security of the 6
768	768	United States if developed or acquired by a country 7
769	769	of concern shall be submitted to the Secretary in 8
770	770	writing jointly by the chairperson and ranking mem-9
771	771	ber of one or more of the appropriate congressional 10
772	772	committees. 11
773	773	‘‘SEC. 804. MULTILATERAL ENGAGEMENT AND COORDINA-12
774	774	TION. 13
775	775	‘‘(a) A
776	776	UTHORITIES.—The Secretary, in coordination 14
777	777	with the Secretary of State, the Secretary of Commerce, 15
778	778	and the heads of other relevant Federal agencies, should— 16
779	779	‘‘(1) conduct bilateral and multilateral engage-17
780	780	ment with the governments of countries that are al-18
781	781	lies and partners of the United States to promote 19
782	782	and increase coordination of protocols and proce-20
783	783	dures to facilitate the effective implementation of 21
784	784	and appropriate compliance with the prohibitions 22
785	785	pursuant to this title; 23
786	786	‘‘(2) upon adoption of protocols and procedures 24
787	787	described in paragraph (1), work with those govern-25
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790	790	•HR 2246 IH
791	791	ments to establish mechanisms for sharing informa-1
792	792	tion, including trends, with respect to such activities; 2
793	793	and 3
794	794	‘‘(3) work with and encourage the governments 4
795	795	of countries that are allies and partners of the 5
796	796	United States to develop similar mechanisms of their 6
797	797	own, for the exclusive purpose of preventing the de-7
798	798	velopment or acquisition of prohibited technologies 8
799	799	by a country of concern. 9
800	800	‘‘(b) S
801	801	TRATEGY FORMULTILATERALENGAGEMENT 10
802	802	ANDCOORDINATION.—Not later than 180 days after the 11
803	803	date of the enactment of this title, the Secretary, in con-12
804	804	sultation with the Secretary of State, the Secretary of 13
805	805	Commerce, and the heads of other relevant Federal agen-14
806	806	cies, should— 15
807	807	‘‘(1) develop a strategy to work with the gov-16
808	808	ernments of countries that are allies and partners of 17
809	809	the United States to develop mechanisms that are 18
810	810	comparable to the prohibitions pursuant to this title, 19
811	811	for the exclusive purpose of preventing the develop-20
812	812	ment and acquisition of prohibited technologies by a 21
813	813	country of concern; and 22
814	814	‘‘(2) assess opportunities to provide technical 23
815	815	assistance to those countries with respect to the de-24
816	816	velopment of those mechanisms. 25
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819	819	•HR 2246 IH
820	820	‘‘(c) REPORT.—Not later than one year after the date 1
821	821	of the enactment of this title, and annually thereafter for 2
822	822	four years, the Secretary shall submit to the appropriate 3
823	823	congressional committees a report that includes— 4
824	824	‘‘(1) a discussion of any strategy developed pur-5
825	825	suant to subsection (b)(1), including key tools and 6
826	826	objectives for the development of comparable mecha-7
827	827	nisms by the governments of allies and partners of 8
828	828	the United States; 9
829	829	‘‘(2) a list of partner and allied countries to 10
830	830	target for cooperation in developing their own prohi-11
831	831	bitions; 12
832	832	‘‘(3) the status of the strategy’s implementation 13
833	833	and outcomes; and 14
834	834	‘‘(4) a description of impediments to the estab-15
835	835	lishment of comparable mechanisms by governments 16
836	836	of allies and partners of the United States. 17
837	837	‘‘(d) A
838	838	PPROPRIATECONGRESSIONAL COMMITTEES 18
839	839	D
840	840	EFINED.—In this section, the term ‘appropriate congres-19
841	841	sional committees’ means— 20
842	842	‘‘(1) the Committee on Foreign Relations and 21
843	843	the Committee on Banking, Housing, and Urban Af-22
844	844	fairs of the Senate; and 23
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847	847	•HR 2246 IH
848	848	‘‘(2) the Committee on Foreign Affairs and the 1
849	849	Committee on Financial Services of the House of 2
850	850	Representatives. 3
851	851	‘‘SEC. 805. PUBLIC DATABASE OF COVERED FOREIGN PER-4
852	852	SONS. 5
853	853	‘‘(a) I
854	854	NGENERAL.—The Secretary, in consultation 6
855	855	with the Secretary of Commerce, may establish a publicly 7
856	856	accessible, non-exhaustive database that identifies covered 8
857	857	foreign persons in a prohibited technology pursuant to this 9
858	858	title. 10
859	859	‘‘(b) C
860	860	ONFIDENTIALITY OF EVIDENCE.—The Sec-11
861	861	retary shall establish a mechanism for the public, includ-12
862	862	ing Congress, stakeholders, investors, and nongovern-13
863	863	mental organizations, to submit evidence on a confidential 14
864	864	basis regarding whether a foreign person is a covered for-15
865	865	eign person in a prohibited technology and should be in-16
866	866	cluded in the database described in subsection (a), if any. 17
867	867	‘‘(c) E
868	868	XEMPTIONFROMDISCLOSURE.— 18
869	869	‘‘(1) I
870	870	N GENERAL.—Except as provided in para-19
871	871	graph (2), any information or documentary material 20
872	872	filed with the Secretary pursuant to this section 21
873	873	shall be exempt from disclosure under section 22
874	874	552(b)(3) of title 5, United States Code, and no 23
875	875	such information or documentary material may be 24
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878	878	•HR 2246 IH
879	879	made public (other than the identity of a covered 1
880	880	foreign person in accordance with subsection (b)). 2
881	881	‘‘(2) E
882	882	XCEPTIONS.—Paragraph (1) shall not 3
883	883	prohibit the disclosure of the following: 4
884	884	‘‘(A) Information relevant to any adminis-5
885	885	trative or judicial action or proceeding. 6
886	886	‘‘(B) Information to Congress or any duly 7
887	887	authorized committee or subcommittee of Con-8
888	888	gress. 9
889	889	‘‘(C) Information important to the national 10
890	890	security analysis or actions of the Secretary to 11
891	891	any domestic governmental entity, or to any 12
892	892	foreign governmental entity of a United States 13
893	893	ally or partner, under the exclusive direction 14
894	894	and authorization of the Secretary, only to the 15
895	895	extent necessary for national security purposes, 16
896	896	and subject to appropriate confidentiality and 17
897	897	classification requirements. 18
898	898	‘‘(D) Information that the parties have 19
899	899	consented to be disclosed to third parties. 20
900	900	‘‘(d) R
901	901	ULE OFCONSTRUCTION.—The database de-21
902	902	scribed in subsection (a), if any, shall not be considered 22
903	903	to be an exhaustive or comprehensive list of covered for-23
904	904	eign persons for the purposes of this title. 24
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907	907	•HR 2246 IH
908	908	‘‘SEC. 806. RULE OF CONSTRUCTION. 1
909	909	‘‘Nothing in this title may be construed to negate the 2
910	910	authority of the President under any authority, process, 3
911	911	regulation, investigation, enforcement measure, or review 4
912	912	provided by or established under any other provision of 5
913	913	Federal law, or any other authority of the President or 6
914	914	the Congress under the Constitution of the United States. 7
915	915	‘‘SEC. 807. DEFINITIONS. 8
916	916	‘‘In this title: 9
917	917	‘‘(1) A
918	918	PPROPRIATE CONGRESSIONAL COMMIT -10
919	919	TEES.—Except as provided by section 804(d), the 11
920	920	term ‘appropriate congressional committees’ 12
921	921	means— 13
922	922	‘‘(A) the Committee on Financial Services, 14
923	923	the Committee on Foreign Affairs, the Com-15
924	924	mittee on Energy and Commerce, and the Com-16
925	925	mittee on Appropriations of the House of Rep-17
926	926	resentatives; and 18
927	927	‘‘(B) the Committee on Banking, Housing, 19
928	928	and Urban Affairs and the Committee on Ap-20
929	929	propriations of the Senate. 21
930	930	‘‘(2) C
931	931	OUNTRY OF CONCERN .—The term ‘coun-22
932	932	try of concern’— 23
933	933	‘‘(A) means the People’s Republic of 24
934	934	China; and 25
935	935	VerDate Sep 11 2014 08:39 Mar 26, 2025 Jkt 000000 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\H2246.IH H2246
936	936	mprince on LAP1J3WLY3PROD with $$_JOB 32
937	937	•HR 2246 IH
938	938	‘‘(B) includes the Hong Kong Special Ad-1
939	939	ministrative Region and the Macau Special Ad-2
940	940	ministrative Region. 3
941	941	‘‘(3) C
942	942	OVERED FOREIGN PERSON .—Subject to 4
943	943	regulations prescribed in accordance with this title, 5
944	944	the term ‘covered foreign person’ means a foreign 6
945	945	person that— 7
946	946	‘‘(A) is incorporated in, has a principal 8
947	947	place of business in, or is organized under the 9
948	948	laws of a country of concern; 10
949	949	‘‘(B) is a member of the Central Com-11
950	950	mittee of the Chinese Communist Party; 12
951	951	‘‘(C) is subject to the direction or control 13
952	952	of a country of concern, an entity described in 14
953	953	subparagraph (A) or (B), or the state or the 15
954	954	government of a country of concern (including 16
955	955	any political subdivision, agency, or instrumen-17
956	956	tality thereof); or 18
957	957	‘‘(D) is owned in the aggregate, directly or 19
958	958	indirectly, 50 percent or more by a country of 20
959	959	concern, an entity described in subparagraph 21
960	960	(A) or (B), or the state or the government of 22
961	961	a country of concern (including any political 23
962	962	subdivision, agency, or instrumentality thereof). 24
963	963	VerDate Sep 11 2014 08:39 Mar 26, 2025 Jkt 000000 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\H2246.IH H2246
964	964	mprince on LAP1J3WLY3PROD with $$_JOB 33
965	965	•HR 2246 IH
966	966	‘‘(4) COVERED NATIONAL SECURITY TRANS -1
967	967	ACTION.— 2
968	968	‘‘(A) I
969	969	N GENERAL.—Subject to such regu-3
970	970	lations as may be issued in accordance with this 4
971	971	title, the term ‘covered national security trans-5
972	972	action’ means any activity engaged in by a 6
973	973	United States person that involves— 7
974	974	‘‘(i) the acquisition of an equity inter-8
975	975	est or contingent equity interest in a cov-9
976	976	ered foreign person; 10
977	977	‘‘(ii) the provision of a loan or similar 11
978	978	debt financing arrangement to a covered 12
979	979	foreign person, where such debt financ-13
980	980	ing— 14
981	981	‘‘(I) is convertible to an equity 15
982	982	interest; or 16
983	983	‘‘(II) affords or will afford the 17
984	984	United States person the right to 18
985	985	make management decisions with re-19
986	986	spect to or on behalf of a covered for-20
987	987	eign person or the right to appoint 21
988	988	members of the board of directors (or 22
989	989	equivalent) of the covered foreign per-23
990	990	son; 24
991	991	VerDate Sep 11 2014 08:39 Mar 26, 2025 Jkt 000000 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\H2246.IH H2246
992	992	mprince on LAP1J3WLY3PROD with $$_JOB 34
993	993	•HR 2246 IH
994	994	‘‘(iii) the entrance by such United 1
995	995	States person into a joint venture with a 2
996	996	covered foreign person; 3
997	997	‘‘(iv) the conversion of a contingent 4
998	998	equity interest (or interest equivalent to a 5
999	999	contingent equity interest) or conversion of 6
1000	1000	debt to an equity interest in a covered for-7
1001	1001	eign person; 8
1002	1002	‘‘(v) the acquisition, leasing, or other 9
1003	1003	development of operations, land, property, 10
1004	1004	or other assets in a country of concern 11
1005	1005	that will result in, or that the United 12
1006	1006	States person intends to result in— 13
1007	1007	‘‘(I) the establishment of a cov-14
1008	1008	ered foreign person; or 15
1009	1009	‘‘(II) the engagement of a person 16
1010	1010	of a country of concern in a prohib-17
1011	1011	ited technology where it was not pre-18
1012	1012	viously engaged in such prohibited 19
1013	1013	technology; 20
1014	1014	‘‘(vi) knowingly directing transactions 21
1015	1015	by foreign persons that the United States 22
1016	1016	person has knowledge at the time of the 23
1017	1017	transaction would constitute an activity de-24
1018	1018	VerDate Sep 11 2014 08:39 Mar 26, 2025 Jkt 000000 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\H2246.IH H2246
1019	1019	mprince on LAP1J3WLY3PROD with $$_JOB 35
1020	1020	•HR 2246 IH
1021	1021	scribed in clause (i), (ii), (iii), (iv), or (v), 1
1022	1022	if engaged in by a United States person; or 2
1023	1023	‘‘(vii) the acquisition of a limited part-3
1024	1024	ner or equivalent interest in a venture cap-4
1025	1025	ital fund, private equity fund, fund of 5
1026	1026	funds, or other pooled investment fund 6
1027	1027	that the United States person has knowl-7
1028	1028	edge at the time of the acquisition, intends 8
1029	1029	to engage in an activity described in clause 9
1030	1030	(i), (ii), (iii), (iv), (v), or (vi). 10
1031	1031	‘‘(B) E
1032	1032	XCEPTIONS.—Subject to notice and 11
1033	1033	comment regulations prescribed in consultation 12
1034	1034	with Congress and in accordance with this title, 13
1035	1035	the term ‘covered national security transaction’ 14
1036	1036	does not include— 15
1037	1037	‘‘(i) any transaction the value of 16
1038	1038	which the Secretary determines is de mini-17
1039	1039	mis; 18
1040	1040	‘‘(ii) any category of transactions that 19
1041	1041	the Secretary determines is in the national 20
1042	1042	interest of the United States; 21
1043	1043	‘‘(iii) an investment— 22
1044	1044	‘‘(I) in a security (as defined in 23
1045	1045	section 3(a) of the Securities Ex-24
1046	1046	change Act of 1934 (15 U.S.C. 25
1047	1047	VerDate Sep 11 2014 08:39 Mar 26, 2025 Jkt 000000 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\H2246.IH H2246
1048	1048	mprince on LAP1J3WLY3PROD with $$_JOB 36
1049	1049	•HR 2246 IH
1050	1050	78c(a))) that is traded on an ex-1
1051	1051	change or the over-the-counter market 2
1052	1052	in any jurisdiction; 3
1053	1053	‘‘(II) in a security issued by an 4
1054	1054	investment company (as defined in 5
1055	1055	section 3 of the Investment Company 6
1056	1056	Act of 1940 (15 U.S.C. 80a–3)) that 7
1057	1057	is registered with the Securities and 8
1058	1058	Exchange Commission; 9
1059	1059	‘‘(III) made as a limited partner 10
1060	1060	or equivalent in a venture capital 11
1061	1061	fund, private equity fund, fund of 12
1062	1062	funds, or other pooled investment 13
1063	1063	fund (other than as described in sub-14
1064	1064	clause (II)) where— 15
1065	1065	‘‘(aa) the limited partner or 16
1066	1066	equivalent’s committed capital is 17
1067	1067	not more than $2,000,000, ag-18
1068	1068	gregated across any investment 19
1069	1069	and co-investment vehicles of the 20
1070	1070	fund; or 21
1071	1071	‘‘(bb) the limited partner or 22
1072	1072	equivalent has secured a binding 23
1073	1073	contractual assurance that its 24
1074	1074	capital in the fund will not be 25
1075	1075	VerDate Sep 11 2014 08:39 Mar 26, 2025 Jkt 000000 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\H2246.IH H2246
1076	1076	mprince on LAP1J3WLY3PROD with $$_JOB 37
1077	1077	•HR 2246 IH
1078	1078	used to engage in a transaction 1
1079	1079	that would be a covered national 2
1080	1080	security transaction if engaged in 3
1081	1081	by a United States person; or 4
1082	1082	‘‘(IV) in a derivative of a security 5
1083	1083	described under subclause (I), (II), or 6
1084	1084	(III); 7
1085	1085	‘‘(iv) any ancillary transaction under-8
1086	1086	taken by a financial institution (as defined 9
1087	1087	in section 5312 of title 31, United States 10
1088	1088	Code); 11
1089	1089	‘‘(v) the acquisition by a United 12
1090	1090	States person of the equity or other inter-13
1091	1091	est owned or held by a covered foreign per-14
1092	1092	son in an entity or assets located outside 15
1093	1093	of a country of concern in which the 16
1094	1094	United States person is acquiring the to-17
1095	1095	tality of the interest in the entity held by 18
1096	1096	the covered foreign person; 19
1097	1097	‘‘(vi) an intracompany transfer of 20
1098	1098	funds, as defined in regulations prescribed 21
1099	1099	in accordance with this title, from a United 22
1100	1100	States parent company to a subsidiary lo-23
1101	1101	cated in a country of concern or a trans-24
1102	1102	action that, but for this clause, would be a 25
1103	1103	VerDate Sep 11 2014 08:39 Mar 26, 2025 Jkt 000000 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\H2246.IH H2246
1104	1104	mprince on LAP1J3WLY3PROD with $$_JOB 38
1105	1105	•HR 2246 IH
1106	1106	covered national security transaction be-1
1107	1107	tween a United States person and its con-2
1108	1108	trolled foreign person that supports oper-3
1109	1109	ations that are not covered national secu-4
1110	1110	rity transactions or that maintains covered 5
1111	1111	national security transactions that the con-6
1112	1112	trolled foreign person was engaged in prior 7
1113	1113	to January 2, 2025; 8
1114	1114	‘‘(vii) a transaction secondary to a 9
1115	1115	covered national security transaction, in-10
1116	1116	cluding— 11
1117	1117	‘‘(I) contractual arrangements or 12
1118	1118	the procurement of material inputs 13
1119	1119	for any covered national security 14
1120	1120	transaction (such as raw materials); 15
1121	1121	‘‘(II) bank lending; 16
1122	1122	‘‘(III) the processing, clearing, or 17
1123	1123	sending of payments by a bank; 18
1124	1124	‘‘(IV) underwriting services; 19
1125	1125	‘‘(V) debt rating services; 20
1126	1126	‘‘(VI) prime brokerage; 21
1127	1127	‘‘(VII) global custody; 22
1128	1128	‘‘(VIII) equity research or anal-23
1129	1129	ysis; or 24
1130	1130	‘‘(IX) other similar services; 25
1131	1131	VerDate Sep 11 2014 08:39 Mar 26, 2025 Jkt 000000 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\H2246.IH H2246
1132	1132	mprince on LAP1J3WLY3PROD with $$_JOB 39
1133	1133	•HR 2246 IH
1134	1134	‘‘(viii) any ordinary or administrative 1
1135	1135	business transaction as may be defined in 2
1136	1136	such regulations; or 3
1137	1137	‘‘(ix) any transaction completed before 4
1138	1138	the date of the enactment of this title. 5
1139	1139	‘‘(C) A
1140	1140	NCILLARY TRANSACTION DE -6
1141	1141	FINED.—In this paragraph, the term ‘ancillary 7
1142	1142	transaction’ means— 8
1143	1143	‘‘(i) the processing, settling, clearing, 9
1144	1144	or sending of payments and cash trans-10
1145	1145	actions; 11
1146	1146	‘‘(ii) underwriting services; 12
1147	1147	‘‘(iii) credit rating services; and 13
1148	1148	‘‘(iv) other services ordinarily incident 14
1149	1149	to and part of the provision of financial 15
1150	1150	services, such as opening deposit accounts, 16
1151	1151	direct custody services, foreign exchange 17
1152	1152	services, remittances services, and safe de-18
1153	1153	posit services. 19
1154	1154	‘‘(5) F
1155	1155	OREIGN PERSON.—The term ‘foreign per-20
1156	1156	son’ means a person that is not a United States per-21
1157	1157	son. 22
1158	1158	‘‘(6) N
1159	1159	OTIFIABLE TECHNOLOGY .— 23
1160	1160	VerDate Sep 11 2014 08:39 Mar 26, 2025 Jkt 000000 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\H2246.IH H2246
1161	1161	mprince on LAP1J3WLY3PROD with $$_JOB 40
1162	1162	•HR 2246 IH
1163	1163	‘‘(A) IN GENERAL.—The term ‘notifiable 1
1164	1164	technology’ means a technology with respect to 2
1165	1165	which a covered foreign person— 3
1166	1166	‘‘(i) designs any advanced integrated 4
1167	1167	circuit that is not covered under paragraph 5
1168	1168	(8)(A)(iii); 6
1169	1169	‘‘(ii) fabricates any integrated circuit 7
1170	1170	that is not covered under paragraph 8
1171	1171	(8)(A)(iv); 9
1172	1172	‘‘(iii) packages any integrated circuit 10
1173	1173	that is not covered under paragraph 11
1174	1174	(8)(A)(v); or 12
1175	1175	‘‘(iv) develops any artificial intel-13
1176	1176	ligence system that is not covered under 14
1177	1177	clause (vii), (viii), (ix), or (xvi) of para-15
1178	1178	graph (8)(A), and that is— 16
1179	1179	‘‘(I) designed to be used for— 17
1180	1180	‘‘(aa) any military end use 18
1181	1181	(such as for weapons targeting, 19
1182	1182	target identification, combat sim-20
1183	1183	ulation, military vehicle or weap-21
1184	1184	ons control, military decision- 22
1185	1185	making, weapons design (includ-23
1186	1186	ing chemical, biological, radio-24
1187	1187	logical, or nuclear weapons), or 25
1188	1188	VerDate Sep 11 2014 08:39 Mar 26, 2025 Jkt 000000 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\H2246.IH H2246
1189	1189	mprince on LAP1J3WLY3PROD with $$_JOB 41
1190	1190	•HR 2246 IH
1191	1191	combat system logistics and 1
1192	1192	maintenance); or 2
1193	1193	‘‘(bb) any government intel-3
1194	1194	ligence or mass-surveillance end 4
1195	1195	use (such as through incorpora-5
1196	1196	tion of features such as mining 6
1197	1197	text, audio, or video, image rec-7
1198	1198	ognition, location tracking, or 8
1199	1199	surreptitious listening devices); 9
1200	1200	‘‘(II) intended by the covered for-10
1201	1201	eign person or joint venture to be 11
1202	1202	used for— 12
1203	1203	‘‘(aa) cybersecurity applica-13
1204	1204	tions; 14
1205	1205	‘‘(bb) digital forensics tools; 15
1206	1206	‘‘(cc) penetration testing 16
1207	1207	tools; or 17
1208	1208	‘‘(dd) control of robotic sys-18
1209	1209	tems; or 19
1210	1210	‘‘(III) trained using a quantity of 20
1211	1211	computing power greater than 10
1212	1212	23 21
1213	1213	computational operations (such as in-22
1214	1214	teger or floating-point operations). 23
1215	1215	‘‘(B) U
1216	1216	PDATES.—The Secretary, in con-24
1217	1217	sultation with Congress, may prescribe regula-25
1218	1218	VerDate Sep 11 2014 08:39 Mar 26, 2025 Jkt 000000 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\H2246.IH H2246
1219	1219	mprince on LAP1J3WLY3PROD with $$_JOB 42
1220	1220	•HR 2246 IH
1221	1221	tions in accordance with this title to refine the 1
1222	1222	technical parameters of technologies described 2
1223	1223	in subparagraph (A) as reasonably needed for 3
1224	1224	national security purposes or to add or remove 4
1225	1225	categories to or from the list in subparagraph 5
1226	1226	(A). 6
1227	1227	‘‘(7) P
1228	1228	ARTY.—The term ‘party’, with respect to 7
1229	1229	a covered national security transaction, has the 8
1230	1230	meaning given that term in regulations prescribed in 9
1231	1231	accordance with this title. 10
1232	1232	‘‘(8) P
1233	1233	ROHIBITED TECHNOLOGY .— 11
1234	1234	‘‘(A) I
1235	1235	N GENERAL.—The term ‘prohibited 12
1236	1236	technology’ means a technology with respect to 13
1237	1237	which a covered foreign person— 14
1238	1238	‘‘(i) develops or produces any design 15
1239	1239	automation software for the design of inte-16
1240	1240	grated circuits or advanced packaging; 17
1241	1241	‘‘(ii) develops or produces any— 18
1242	1242	‘‘(I) electronic design automation 19
1243	1243	software for the design of integrated 20
1244	1244	circuits or advanced packaging; 21
1245	1245	‘‘(II) front-end semiconductor 22
1246	1246	fabrication equipment designed for the 23
1247	1247	volume fabrication of integrated cir-24
1248	1248	cuits, including equipment used in the 25
1249	1249	VerDate Sep 11 2014 08:39 Mar 26, 2025 Jkt 000000 PO 00000 Frm 00042 Fmt 6652 Sfmt 6201 E:\BILLS\H2246.IH H2246
1250	1250	mprince on LAP1J3WLY3PROD with $$_JOB 43
1251	1251	•HR 2246 IH
1252	1252	production stages from a blank wafer 1
1253	1253	or substrate to a completed wafer or 2
1254	1254	substrate; or 3
1255	1255	‘‘(III) equipment for performing 4
1256	1256	volume advanced packaging; 5
1257	1257	‘‘(iii) designs any integrated circuit 6
1258	1258	designs that meet or exceed the specifica-7
1259	1259	tions set in Export Control Classification 8
1260	1260	Number (ECCN) 3A090 in Supplement 9
1261	1261	No. 1 to the Export Administration Regu-10
1262	1262	lations, or integrated circuits designed for 11
1263	1263	operation at or below 4.5 Kelvin; 12
1264	1264	‘‘(iv) fabricates integrated circuits 13
1265	1265	that are— 14
1266	1266	‘‘(I) logic integrated circuits 15
1267	1267	using a non-planar transistor architec-16
1268	1268	ture or with a technology node of 16/ 17
1269	1269	14 nanometers or less, including fully 18
1270	1270	depleted silicon-on-insulator (FDSOI) 19
1271	1271	integrated circuits; 20
1272	1272	‘‘(II) NOT–AND (NAND) mem-21
1273	1273	ory integrated circuits with 128 layers 22
1274	1274	or more; 23
1275	1275	‘‘(III) dynamic random-access 24
1276	1276	memory (DRAM) integrated circuits 25
1277	1277	VerDate Sep 11 2014 08:39 Mar 26, 2025 Jkt 000000 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\H2246.IH H2246
1278	1278	mprince on LAP1J3WLY3PROD with $$_JOB 44
1279	1279	•HR 2246 IH
1280	1280	using a technology node of 18 1
1281	1281	nanometer half-pitch or less; 2
1282	1282	‘‘(IV) integrated circuits manu-3
1283	1283	factured from a gallium-based com-4
1284	1284	pound semiconductor; 5
1285	1285	‘‘(V) integrated circuits using 6
1286	1286	graphene transistors or carbon 7
1287	1287	nanotubes; or 8
1288	1288	‘‘(VI) integrated circuits designed 9
1289	1289	for operation at or below 4.5 Kelvin; 10
1290	1290	‘‘(v) packages any integrated circuit 11
1291	1291	using advanced packaging techniques; 12
1292	1292	‘‘(vi) develops, designs, or produces 13
1293	1293	any commodity, material, software, or 14
1294	1294	technology designed exclusively for use in 15
1295	1295	or with extreme ultraviolet lithography fab-16
1296	1296	rication equipment; 17
1297	1297	‘‘(vii) develops, designs, or produces 18
1298	1298	any artificial intelligence models trained 19
1299	1299	with at least 10
1300	1300	25floating point oper-20
1301	1301	ations; 21
1302	1302	‘‘(viii) develops, designs, or produces 22
1303	1303	any artificial intelligence models that rely 23
1304	1304	upon or utilize advanced integrated circuits 24
1305	1305	that meet or exceed the specifications set 25
1306	1306	VerDate Sep 11 2014 08:39 Mar 26, 2025 Jkt 000000 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\H2246.IH H2246
1307	1307	mprince on LAP1J3WLY3PROD with $$_JOB 45
1308	1308	•HR 2246 IH
1309	1309	in Export Control Classification Number 1
1310	1310	(ECCN) 3A090 in Supplement No. 1 to 2
1311	1311	the Export Administration Regulations; 3
1312	1312	‘‘(ix) develops, designs, or produces 4
1313	1313	any artificial intelligence models designed 5
1314	1314	for use by the Government of the People’s 6
1315	1315	Republic of China, its special administra-7
1316	1316	tive regions, or its agencies and instrumen-8
1317	1317	talities; 9
1318	1318	‘‘(x) develops a quantum computer or 10
1319	1319	produces any critical components required 11
1320	1320	to produce a quantum computer such as a 12
1321	1321	dilution refrigerator or two-stage pulse 13
1322	1322	tube cryocooler; 14
1323	1323	‘‘(xi) develops or produces any quan-15
1324	1324	tum sensing platform designed for, or 16
1325	1325	which the relevant covered foreign person 17
1326	1326	intends to be used for, any military, gov-18
1327	1327	ernment intelligence, or mass-surveillance 19
1328	1328	end use; 20
1329	1329	‘‘(xii) develops or produces quantum 21
1330	1330	networks or quantum communication sys-22
1331	1331	tems designed for or intended to be used 23
1332	1332	for— 24
1333	1333	VerDate Sep 11 2014 08:39 Mar 26, 2025 Jkt 000000 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\H2246.IH H2246
1334	1334	mprince on LAP1J3WLY3PROD with $$_JOB 46
1335	1335	•HR 2246 IH
1336	1336	‘‘(I) networking to scale up the 1
1337	1337	capabilities of quantum computers, 2
1338	1338	such as for the purposes of breaking 3
1339	1339	or compromising encryption; 4
1340	1340	‘‘(II) secure communications, 5
1341	1341	such as quantum key distribution; or 6
1342	1342	‘‘(III) any other application that 7
1343	1343	has any military, government intel-8
1344	1344	ligence, or mass-surveillance end use; 9
1345	1345	‘‘(xiii) develops, designs, or produces 10
1346	1346	materials, components, avionics, flight con-11
1347	1347	trol, propulsion, Global Positioning System 12
1348	1348	(GPS), data relay, and target detection 13
1349	1349	systems designed for use in hypersonic sys-14
1350	1350	tems or capable of sustainable operations 15
1351	1351	above 1,000 degrees Celsius; 16
1352	1352	‘‘(xiv) develops, installs, sells, or pro-17
1353	1353	duces any supercomputer enabled by ad-18
1354	1354	vanced integrated circuits that can provide 19
1355	1355	theoretical compute capacity of 100 or 20
1356	1356	more double-precision (64-bit) petaflops or 21
1357	1357	200 or more single-precision (32-bit) 22
1358	1358	petaflops of processing power within a 23
1359	1359	41,600 cubic foot or smaller envelope; 24
1360	1360	VerDate Sep 11 2014 08:39 Mar 26, 2025 Jkt 000000 PO 00000 Frm 00046 Fmt 6652 Sfmt 6201 E:\BILLS\H2246.IH H2246
1361	1361	mprince on LAP1J3WLY3PROD with $$_JOB 47
1362	1362	•HR 2246 IH
1363	1363	‘‘(xv) develops, designs, or produces 1
1364	1364	any other technologies in the advanced 2
1365	1365	semiconductors and microelectronics sec-3
1366	1366	tor, the artificial intelligence sector, the 4
1367	1367	high-performance computing and super-5
1368	1368	computing sector, the hypersonic missiles 6
1369	1369	sector, or the quantum information science 7
1370	1370	and technology sector that are— 8
1371	1371	‘‘(I) defense articles or defense 9
1372	1372	services included on the United States 10
1373	1373	Munitions List set forth in the Inter-11
1374	1374	national Traffic in Arms Regulations 12
1375	1375	under subchapter M of chapter I of 13
1376	1376	title 22, Code of Federal Regulations; 14
1377	1377	‘‘(II) specially designed and pre-15
1378	1378	pared nuclear equipment, parts or 16
1379	1379	components, materials, software, or 17
1380	1380	technologies covered by part 810 of 18
1381	1381	title 10, Code of Federal Regulations 19
1382	1382	(relating to assistance to foreign 20
1383	1383	atomic energy activities); 21
1384	1384	‘‘(III) nuclear facilities, equip-22
1385	1385	ment, or materials covered by part 23
1386	1386	110 of title 10, Code of Federal Regu-24
1387	1387	lations (relating to export and import 25
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1390	1390	•HR 2246 IH
1391	1391	of nuclear equipment and material); 1
1392	1392	or 2
1393	1393	‘‘(IV) emerging or foundational 3
1394	1394	technologies controlled pursuant to 4
1395	1395	section 1758 of the Export Control 5
1396	1396	Reform Act of 2018 (50 U.S.C. 6
1397	1397	4817); or 7
1398	1398	‘‘(xvi) develops any artificial intel-8
1399	1399	ligence system that is designed to be exclu-9
1400	1400	sively used for, or which the relevant cov-10
1401	1401	ered foreign person intends to be used for, 11
1402	1402	any— 12
1403	1403	‘‘(I) military end use (such as for 13
1404	1404	weapons targeting, target identifica-14
1405	1405	tion, combat simulation, military vehi-15
1406	1406	cle or weapon control, military deci-16
1407	1407	sion-making, weapons design (includ-17
1408	1408	ing chemical, biological, radiological, 18
1409	1409	or nuclear weapons), or combat sys-19
1410	1410	tem logistics and maintenance); or 20
1411	1411	‘‘(II) government intelligence or 21
1412	1412	mass-surveillance end (such as 22
1413	1413	through incorporation of features such 23
1414	1414	as mining text, audio, or video, image 24
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1417	1417	•HR 2246 IH
1418	1418	recognition, location tracking, or sur-1
1419	1419	reptitious listening devices). 2
1420	1420	‘‘(B) U
1421	1421	PDATES.—The Secretary, in con-3
1422	1422	sultation with Congress, may prescribe regula-4
1423	1423	tions in accordance with this title to make up-5
1424	1424	dates to the technical parameters of tech-6
1425	1425	nologies described in subparagraph (A) as rea-7
1426	1426	sonably needed for national security purposes. 8
1427	1427	‘‘(9) S
1428	1428	ECRETARY.—Except as otherwise pro-9
1429	1429	vided, the term ‘Secretary’ means the Secretary of 10
1430	1430	the Treasury. 11
1431	1431	‘‘(10) U
1432	1432	NITED STATES PERSON .—The term 12
1433	1433	‘United States person’ means— 13
1434	1434	‘‘(A) any United States citizen or an alien 14
1435	1435	lawfully admitted for permanent residence to 15
1436	1436	the United States; 16
1437	1437	‘‘(B) an entity organized under the laws of 17
1438	1438	the United States or of any jurisdiction within 18
1439	1439	the United States (including any foreign branch 19
1440	1440	of such an entity); or 20
1441	1441	‘‘(C) any person in the United States.’’. 21
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1444	1444	•HR 2246 IH
1445	1445	TITLE III—SECURITIES AND 1
1446	1446	RELATED MATTERS 2
1447	1447	SEC. 301. REQUIREMENTS RELATING TO THE NON-SDN CHI-3
1448	1448	NESE MILITARY-INDUSTRIAL COMPLEX COM-4
1449	1449	PANIES LIST. 5
1450	1450	(a) R
1451	1451	EPORT.— 6
1452	1452	(1) I
1453	1453	N GENERAL.—Not later than 365 days 7
1454	1454	after the date of the enactment of this Act, and bi-8
1455	1455	ennially thereafter for 6 years, the Secretary shall 9
1456	1456	submit to the appropriate congressional committees 10
1457	1457	a report that states whether any of the following for-11
1458	1458	eign persons qualifies for inclusion on the Non-SDN 12
1459	1459	Chinese Military-Industrial Complex Companies 13
1460	1460	List: 14
1461	1461	(A) Any PRC person listed on the Military 15
1462	1462	End-User List (Supplement No. 7 to part 744 16
1463	1463	of the Export Administration Regulations). 17
1464	1464	(B) Any PRC person listed pursuant to 18
1465	1465	section 1260H of the William M. (Mac) Thorn-19
1466	1466	berry National Defense Authorization Act for 20
1467	1467	Fiscal Year 2021 (10 U.S.C. 113 note). 21
1468	1468	(C) Any PRC person listed on the Depart-22
1469	1469	ment of Commerce’s Entity List (Supplement 23
1470	1470	No. 4 to part 744 of the Export Administration 24
1471	1471	Regulations). 25
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1474	1474	•HR 2246 IH
1475	1475	(2) PROCESS REQUIRED.—To prepare the re-1
1476	1476	ports under paragraph (1), the President shall es-2
1477	1477	tablish a process under which the Federal agencies 3
1478	1478	responsible for administering the lists described in 4
1479	1479	subparagraphs (A), (B), and (C) of paragraph (1) 5
1480	1480	shall share with each other all relevant information 6
1481	1481	that led to the identification of the entities described 7
1482	1482	in such lists. 8
1483	1483	(3) R
1484	1484	ISK-BASED PRIORITIZATION FRAME -9
1485	1485	WORK.—In making the initial determinations under 10
1486	1486	paragraph (1), the Secretary may establish a risk- 11
1487	1487	based prioritization framework factoring in 12
1488	1488	prioritization of entity review submitted to the Sec-13
1489	1489	retary by the Federal agencies administering the 14
1490	1490	lists described in subparagraphs (A), (B), and (C) of 15
1491	1491	paragraph (1). 16
1492	1492	(4) A
1493	1493	NNUAL REPORTS TO THE APPROPRIATE 17
1494	1494	CONGRESSIONAL COMMITTEES .—The report under 18
1495	1495	paragraph (1) may summarize findings concerning 19
1496	1496	entities previously reviewed pursuant to this section 20
1497	1497	and do not necessitate additional review by the Sec-21
1498	1498	retary. 22
1499	1499	(5) M
1500	1500	ATTERS TO BE INCLUDED .—The Sec-23
1501	1501	retary shall include in the report required by para-24
1502	1502	graph (1) an overview of the criteria required for 25
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1505	1505	•HR 2246 IH
1506	1506	listing on Non-SDN Chinese Military-Industrial 1
1507	1507	Complex Companies List. The heads of the Federal 2
1508	1508	agencies administering the lists described in sub-3
1509	1509	paragraphs (A), (B), and (C) of paragraph (1) shall 4
1510	1510	provide an overview of the criteria for entity identi-5
1511	1511	fication or listing on each respective list. 6
1512	1512	(b) R
1513	1513	EQUIREMENT FOR DIVESTMENT.— 7
1514	1514	(1) I
1515	1515	N GENERAL.—The President shall promul-8
1516	1516	gate rules that prohibit a United States person from 9
1517	1517	knowingly holding securities of entities on the Non- 10
1518	1518	SDN Chinese Military-Industrial Complex Compa-11
1519	1519	nies List, after the date that is 365 days after the 12
1520	1520	date of enactment of this Act. 13
1521	1521	(2) A
1522	1522	UTHORIZATION.—The prohibitions on in-14
1523	1523	vestment imposed under paragraph (1) shall not 15
1524	1524	apply to a transaction in a security that is entered 16
1525	1525	into on or before the date that is 365 days after the 17
1526	1526	date of enactment of this Act by a United States 18
1527	1527	person, if such transaction is entered into solely to 19
1528	1528	divest of the security. 20
1529	1529	(c) W
1530	1530	AIVER.— 21
1531	1531	(1) I
1532	1532	N GENERAL.—The President may establish 22
1533	1533	a process under which the requirements of sub-23
1534	1534	section (b) shall not apply if the President deter-24
1535	1535	mines to do so is necessary to protect the national 25
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1538	1538	•HR 2246 IH
1539	1539	security or foreign policy objectives of the United 1
1540	1540	States. 2
1541	1541	(2) C
1542	1542	ASE-BY-CASE REQUIREMENT .—Determina-3
1543	1543	tions under paragraph (1) shall be issued on a case- 4
1544	1544	by-case basis for each entity on the Non-SDN Chi-5
1545	1545	nese Military-Industrial Complex Companies List. 6
1546	1546	(3) N
1547	1547	OTICE AND BRIEFING .—The President 7
1548	1548	shall notify the appropriate congressional committees 8
1549	1549	in writing in advance of issuing a determination 9
1550	1550	under paragraph (1) and shall provide a substantive 10
1551	1551	briefing on the determination to the appropriate con-11
1552	1552	gressional committees within 30 days of issuing a 12
1553	1553	determination. 13
1554	1554	(d) D
1555	1555	EFINITIONS.—In this section: 14
1556	1556	(1) A
1557	1557	PPROPRIATE CONGRESSIONAL COMMIT -15
1558	1558	TEES.—The term ‘‘appropriate congressional com-16
1559	1559	mittees’’ means— 17
1560	1560	(A) the Committee on Financial Services 18
1561	1561	and the Committee on Foreign Affairs of the 19
1562	1562	House of Representatives; and 20
1563	1563	(B) the Committee on Banking, Housing, 21
1564	1564	and Urban Affairs of the Senate. 22
1565	1565	(2) C
1566	1566	OUNTRY OF CONCERN .—The term ‘‘coun-23
1567	1567	try of concern’’— 24
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1570	1570	•HR 2246 IH
1571	1571	(A) means the People’s Republic of China; 1
1572	1572	and 2
1573	1573	(B) includes the Hong Kong Special Ad-3
1574	1574	ministrative Region and the Macau Special Ad-4
1575	1575	ministrative Region. 5
1576	1576	(3) N
1577	1577	ON-SDN CHINESE MILITARY-INDUSTRIAL 6
1578	1578	COMPLEX COMPANIES LIST .—The term ‘‘Non-SDN 7
1579	1579	Chinese Military-Industrial Complex Companies 8
1580	1580	List’’ means the list maintained by the Office of 9
1581	1581	Foreign Assets Control of the Department of the 10
1582	1582	Treasury under Executive Order 13959, as amended 11
1583	1583	by Executive Order 14032 (50 U.S.C. 1701 note; re-12
1584	1584	lating to addressing the threat from securities in-13
1585	1585	vestments that finance certain companies of the Peo-14
1586	1586	ple’s Republic of China), and any successor order. 15
1587	1587	(4) PRC
1588	1588	PERSON.—The term ‘‘PRC person’’ 16
1589	1589	means a foreign person that— 17
1590	1590	(A) is incorporated in a principal place of 18
1591	1591	business in, or is organized under the laws of, 19
1592	1592	a country of concern; 20
1593	1593	(B) is a member of the Central Committee 21
1594	1594	of the Chinese Communist Party; 22
1595	1595	(C) is the state or the government of a 23
1596	1596	country of concern, as well as any political sub-24
1597	1597	division, agency, or instrumentality thereof; or 25
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1600	1600	•HR 2246 IH
1601	1601	(D) is owned in the aggregate, directly or 1
1602	1602	indirectly, 50 percent or more by an entity or 2
1603	1603	a group of entities described in subparagraph 3
1604	1604	(A), (B), or (C). 4
1605	1605	Æ
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