[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7064 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 7064
To prohibit financial investment by a United States person in foreign
industrial defense corporations with substantial contracts with, ties
to, or support from, the Chinese military and affiliated entities, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 1, 2020
Mr. Banks (for himself, Mr. Gallagher, and Mr. LaMalfa) introduced the
following bill; which was referred to the Committee on Financial
Services, and in addition to the Committee on Foreign Affairs, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To prohibit financial investment by a United States person in foreign
industrial defense corporations with substantial contracts with, ties
to, or support from, the Chinese military and affiliated entities, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Stop Funding the PLA Act''.
SEC. 2. SPECIFICATION OF PROHIBITED FOREIGN INDUSTRIAL DEFENSE
CORPORATIONS.
(a) Specification Required.--Not later than 90 days after the date
of the enactment of this section, and annually thereafter, the
Secretary, in consultation with the Secretary of State, the Secretary
of Defense, and the domestic intelligence community, shall submit to
the Committee on Banking, Housing, and Urban Affairs of the Senate and
the Committee on Financial Services of the House of Representatives a
report that specifies each foreign industrial defense corporation with
substantial contracts with, ties to, or support from, a PLA entity.
(b) Effect of Specification.--
(1) Purchase of securities prohibited.--Beginning on the
date that is 180 days after a report is submitted under
subsection (a), a United States person may not purchase
securities of a foreign industrial defense corporation
specified in such report.
(2) Divestment required.--
(A) In general.--Except as provided in subparagraph
(B), not later than 180 days after a report is
submitted under subsection (a), a United States person
that owns a security of a foreign industrial defense
corporation specified in such report shall divest
themselves of such security.
(B) Extended wind-down in case of financial
hardship.--The Secretary may allow a United States
person a 270-day extension to the 180-day period for
compliance under subparagraph (A) if the Secretary
determines that such entity--
(i) owns a security of a foreign industrial
defense corporation specified in a report
submitted under subsection (a); and
(ii) would experience extreme financial
hardship to comply within the 180-day period
under subparagraph (A).
(c) Assignment of Authority.--
(1) Enforcement.--The Secretary shall enforce the
provisions of this section.
(2) Regulations.--Not later than 90 days after the date of
the enactment of this section, the Secretary shall issue such
regulations and guidance as necessary to implement and enforce
this section.
(d) Report.--Not later than 360 days after the date of the
enactment of this section, the Secretary shall submit to the Committee
on Banking, Housing, and Urban Affairs of the Senate and the Committee
on Financial Services of the House of Representatives a report on the
progress of the divestments required under subsection (b)(2).
(e) Petition for Removal From Designation.--
(1) In general.--A foreign industrial defense corporation
may petition the Secretary to not be included or removed from a
report under subsection (a).
(2) Requirements.--A petition under paragraph (1) shall
include such documentation of the assets and liabilities,
company financial records, ownership and investor records, and
past and current business contracts of the foreign industrial
defense corporation submitting such petition that the Secretary
determines necessary.
(f) Final Report.--Not later than 8 years after the date of the
enactment of this section, the Secretary shall submit to the Committee
on Banking, Housing, and Urban Affairs of the Senate and the Committee
on Financial Services of the House of Representatives a final report on
the implementation of this section, including--
(1) an analysis of the effectiveness of this section;
(2) the development and maintenance of the reports required
under subsection (a); and
(3) a description of completed and ongoing civil and
criminal cases related to securities of foreign industrial
defense corporations.
(g) Sunset.--This section and the authority under this section
shall expire on the date that is 10 years after the date of the
enactment of this section.
(h) Definitions.--In this section:
(1) PLA entity.--The term ``PLA entity'' means any entity
of the Chinese military, including the People's Liberation
Army, Navy, Air Force, Rocket Force, Strategic Support Force,
and Joint Logistics Force, and the Chinese intelligence
community.
(2) Foreign industrial defense corporation.--The term
``foreign industrial defense corporation'' means any
corporation based--
(A) outside of the United States; and
(B) in a country that the Secretary, in
consultation with the Secretary of Defense, the
Secretary of State, and the domestic intelligence
community, determines does not possess positive
economic and military relations with the United States.
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(4) Substantial.--The term ``substantial'' shall, with
respect to contracts with, ties to, or support from, a PLA
entity, have the meaning determined by the Secretary, in
consultation with the Secretary of State, the Secretary of
Defense, and the domestic intelligence community.
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