[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7759 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 7759
To prohibit the purchase of certain securities from covered entities,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 20, 2024
Mr. Sherman (for himself and Mrs. Spartz) introduced the following
bill; which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To prohibit the purchase of certain securities from covered 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 ``PRC Military and Human Rights
Capital Markets Sanctions Act of 2024''.
SEC. 2. PROHIBITION ON PURCHASE OF CERTAIN SECURITIES FROM COVERED
ENTITIES.
(a) In General.--Not later than 90 days after the date of the
enactment of this Act, the President shall--
(1) compile and maintain a single list of covered entities;
(2) where possible, include in the list a unique
identification number for each covered entity, such as a
Committee on Uniform Securities Identification Procedures
number or a Stock Exchange Daily Official List number;
(3) make such list available to the public; and
(4) publicly identify and prohibit the purchase, sale, or
holding by a United States person (as defined under section
560.314 of title 31, Code of Federal Regulations) of a--
(A) publicly traded security issued by a covered
entity;
(B) publicly traded security that is derivative of
a publicly traded security issued by a covered entity;
and
(C) security that provides investment exposure to a
publicly traded security issued by a covered entity.
(b) Divestment Required.--
(1) In general.--Notwithstanding subsection (a), a United
States person shall divest of all securities described in
subsection (a)--
(A) with respect to a security identified by the
President under subsection (a) before the end of the
90-day period beginning on the date of the enactment of
this Act, not later than 180 days after the date of the
enactment of this Act; and
(B) with respect to a security identified by the
President under subsection (a) after the end of the 90-
day period beginning on the date of the enactment of
this Act, not later than 180 days after the date of
such identification.
(2) Facilitating divestment transactions.--Subsection (a)
shall not apply to a United States person to the extent the
person is facilitating the divestment of securities described
under paragraph (1).
(c) Penalties.--
(1) In general.--A United States person that violates,
attempts to violate, conspires to violate, or causes a
violation of this Act shall be subject to the following
penalties:
(A) A civil penalty in an amount not to exceed the
greater of--
(i) $250,000; or
(ii) an amount that is twice the amount of
the transaction that is the basis of the
violation with respect to which the penalty is
imposed.
(B) With respect to a United States person that
willfully violates, willfully attempts to violate,
willfully conspires to violate, or aids or abets in the
commission of a violation of this Act shall be subject
to a criminal penalty--
(i) of a fine of not more than $1,000,000;
or
(ii) if such United States person is an
individual, a fine of not more than $1,000,000,
a term of imprisonment of not more than 20
years, or both.
(2) Amount of a transaction defined.--For purposes of
paragraph (1)(A)(ii), the term ``amount of a transaction''
means--
(A) with respect to a purchase that violates this
Act, the purchase price;
(B) with respect to a sale that violates this Act,
the sale price; and
(C) with respect to the holding of a security that
violates this Act, the fair market value of the
security at the time of the violation.
(d) Covered Entity Defined.--
(1) In general.--In this section, the term ``covered
entity'' means the following:
(A) Any person that is on the list of Specially
Designated Nationals and Blocked Persons maintained by
the Office of Foreign Assets Control of the Department
of the Treasury, or any person under common ownership
or control of such person.
(B) Any person on the Non-SDN Chinese Military-
Industrial Complex Companies List (NS-CMIC List)
maintained by the Office of Foreign Assets Control of
the Department of the Treasury under Executive Order
14032 (86 Fed. Reg. 30145; relating to addressing the
threat from securities investments that finance certain
companies of the People's Republic of China), or any
person under common ownership or control of such
person.
(C) Any person that is a Chinese military company
or a military-civil fusion contributor and included on
the list maintained by the Department of Defense in
accordance with section 1260H(b) of the National
Defense Authorization Act for Fiscal Year 2021 (10
U.S.C. 113 note) as of the date of the enactment of
this Act, or any person under common ownership or
control of such person.
(D) Any person that is a Chinese person and with
respect to which sanctions have been imposed under the
under the Global Magnitsky Human Rights Accountability
Act (22 U.S.C. 10101 et seq.), or any person under
common ownership or control of such person.
(E) Any person that is a Chinese person whose goods
have been the subject of a Withhold Release Order
pursuant to section 307 of the Tariff Act of 1930 (19
U.S.C. 1307) during the 2-year period ending on the
date of the enactment of this Act, or any person under
common ownership or control of such person.
(F) Any person that is Chinese entity listed on the
Entity List set forth in Supplement No. 4 to part 744
of the Export Administration Regulations.
(G) Any Chinese person on the Uyghur Forced Labor
Prevention Act Entity List, maintained by the
Department of Homeland Security, or any person under
common ownership or control of such person.
(H) Any Chinese person on the Military End User
List maintained by the Department of Commerce
(Supplement 7 to part 744 of chapter VII, subchapter C
of title 15, Code of Federal Regulations), or any
person under common ownership or control of such
person.
(2) Control.--For purposes of paragraph (1), the term
``control'' has the meaning given that term under section
230.405 of title 17, Code of Federal Regulations.
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