Text: S.1501 — 114th Congress (2015-2016)All Information (Except Text)

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Introduced in Senate (06/03/2015)

 
[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1501 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                S. 1501

 To promote and reform foreign capital investment and job creation in 
                         American communities.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 3, 2015

Mr. Leahy (for himself and Mr. Grassley) introduced the following bill; 
  which was read twice and referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
 To promote and reform foreign capital investment and job creation in 
                         American communities.

    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 ``American Job Creation and Investment 
Promotion Reform Act of 2015''.

SEC. 2. REAUTHORIZATION OF EB-5 REGIONAL CENTER PROGRAM.

    (a) Repeal.--Section 610 of the Departments of Commerce, Justice, 
and State, the Judiciary, and Related Agencies Appropriations Act, 1993 
(8 U.S.C. 1153 note) is repealed.
    (b) Authorization.--Section 203(b)(5) of the Immigration and 
Nationality Act (8 U.S.C. 1153(b)(5)) is amended by adding at the end 
the following:
                    ``(E) Regional center program.--
                            ``(i) In general.--Visas under this 
                        paragraph shall be made available through 
                        September 30, 2020, to qualified immigrants 
                        (and the eligible spouse and children of such 
                        immigrants) participating in a program 
                        implementing this paragraph that involves a 
                        regional center in the United States, which has 
                        been designated by the Secretary of Homeland 
                        Security on the basis of a proposal for the 
                        promotion of economic growth, including 
                        prospective job creation and increased domestic 
                        capital investment.
                            ``(ii) Priority.--In processing petitions 
                        under section 204(a)(1)(H) for classification 
                        under this paragraph, the Secretary of Homeland 
                        Security may give priority to petitions filed 
                        by aliens seeking admission under this 
                        subparagraph. Notwithstanding subsection (e), 
                        immigrant visas made available under this 
                        paragraph may be issued to such aliens in an 
                        order that takes into account any priority 
                        accorded under this clause.
                            ``(iii) Establishment of a regional 
                        center.--A regional center shall operate within 
                        a defined geographic area, which shall be 
                        described in the proposal and be consistent 
                        with the purpose of concentrating pooled 
                        investment within the defined and limited 
                        geographic area. The proposal to establish a 
                        regional center shall demonstrate that the 
                        pooled investment will have a significant 
                        economic impact on such geographic area, and 
                        shall include--
                                    ``(I) reasonable predictions, 
                                supported by economically and 
                                statistically valid forecasting tools, 
                                concerning the amount of investment 
                                that will be pooled, the kinds of 
                                commercial enterprises that will 
                                receive such investments, verifiable 
                                details of the jobs that will be 
                                created directly or indirectly as a 
                                result of such investments, and other 
                                positive economic effects such 
                                investments will have; and
                                    ``(II) a description of the 
                                policies and procedures in place 
                                reasonably designed to monitor 
                                associated commercial enterprises to 
                                ensure compliance with all laws, 
                                regulations, and Executive orders of 
                                the United States.
                            ``(iv) Indirect job creation.--The 
                        Secretary of Homeland Security shall permit 
                        aliens seeking admission under this paragraph 
                        to satisfy up to 90 percent of the requirements 
                        under subparagraph (A)(ii) with jobs that are 
                        estimated to be created indirectly through 
                        investment under this paragraph in accordance 
                        with this subparagraph.
                            ``(v) Compliance.--
                                    ``(I) In general.--In determining 
                                compliance with subparagraph (A)(ii), 
                                the Secretary of Homeland Security 
                                shall--
                                            ``(aa) permit aliens 
                                        seeking admission under this 
                                        paragraph to rely on 
                                        economically and statistically 
                                        valid methodologies for 
                                        determining the number of jobs 
                                        created by the program, 
                                        including, consistent with this 
                                        subparagraph, jobs estimated to 
                                        have been created indirectly 
                                        through revenues generated from 
                                        increased exports, improved 
                                        regional productivity, job 
                                        creation, and increased 
                                        domestic capital investment 
                                        resulting from the program; and
                                            ``(bb) verify that the jobs 
                                        described in item (aa) meet the 
                                        requirements under this 
                                        subparagraph by using a 
                                        methodology that has been 
                                        accepted by the Bureau of 
                                        Economic Analysis of the 
                                        Department of Commerce to be 
                                        economically and statistically 
                                        valid for such purposes.
                                    ``(II) Projects involving capital 
                                contribution from non-alien 
                                entrepreneurs.--
                                            ``(aa) Credit for job 
                                        creation.--Alien entrepreneurs 
                                        may accrue credit for job 
                                        creation based on capital 
                                        investment provided by non-
                                        alien entrepreneurs only for 
                                        the percentage of total jobs 
                                        created that is equal to the 
                                        percentage of total capital 
                                        investment provided by such 
                                        non-alien entrepreneurs in the 
                                        commercial enterprise.
                                            ``(bb) Limitation.--The 
                                        percentage of jobs created for 
                                        which alien entrepreneurs may 
                                        accrue credit under item (aa) 
                                        based on such non-alien 
                                        entrepreneur capital 
                                        contribution may not exceed 30 
                                        percent of all jobs created 
                                        even if such contribution 
                                        exceeds 30 percent.
                                    ``(III) Ineligible jobs.--In 
                                determining compliance with the job 
                                creation requirements under 
                                subparagraph (A)(ii), the Secretary may 
                                not include jobs estimated to be 
                                created under a tenant-occupancy 
                                methodology.
                            ``(vi) Amendments.--The Secretary of 
                        Homeland Security shall--
                                    ``(I) require approved regional 
                                centers to give advance notice to the 
                                Secretary of significant proposed 
                                changes to their organizational 
                                structure, ownership, or 
                                administration, including the sale or 
                                rental of such centers;
                                    ``(II) approve or disapprove the 
                                changes referred to in subclause (I) 
                                before any such proposed changes take 
                                effect; and
                                    ``(III) approve the changes 
                                referred to in subclause (I) only 
                                after--
                                            ``(aa) notice of any such 
                                        proposed changes are made 
                                        publicly available through a 
                                        publicly accessible website of 
                                        U.S. Citizenship and 
                                        Immigration Services for a 
                                        period of not fewer than 30 
                                        days; and
                                            ``(bb) the Secretary 
                                        determines that the regional 
                                        center would remain compliant 
                                        with this subparagraph and with 
                                        subparagraph (H).
                    ``(F) Business plans for regional center 
                investments.--
                            ``(i) Application for approval of 
                        investment in commercial enterprise.--A 
                        commercial enterprise associated with a 
                        regional center shall file an application with, 
                        and obtain approval from, the Secretary of 
                        Homeland Security for each particular 
                        investment offering through the commercial 
                        enterprise to aliens seeking classification 
                        under this paragraph, which shall include--
                                    ``(I) a comprehensive business plan 
                                for a specific capital investment 
                                project;
                                    ``(II) a credible economic analysis 
                                regarding estimated job creation that 
                                is based upon economically and 
                                statistically valid methodologies;
                                    ``(III) documents filed with the 
                                Securities and Exchange Commission 
                                under the Securities Act of 1933 (15 
                                U.S.C. 77a et seq.);
                                    ``(IV) investment and offering 
                                documents, including subscription, 
                                investment, partnership, and operating 
                                agreements, private placement 
                                memoranda, term sheets, management 
                                biographies, the description of the 
                                business plan to be provided to 
                                potential alien entrepreneurs, and any 
                                marketing materials used or prepared 
                                for use in connection with the offering 
                                by the regional center or any 
                                associated commercial enterprise, which 
                                shall contain references, as 
                                appropriate, to any--
                                            ``(aa) investment risks 
                                        associated with the new 
                                        commercial enterprise and any 
                                        other business subsequently 
                                        receiving investment capital 
                                        from the new commercial 
                                        enterprise;
                                            ``(bb) conflicts of 
                                        interest that currently exist 
                                        or may arise among the regional 
                                        center, new commercial 
                                        enterprise, other business 
                                        subsequently receiving 
                                        investment capital from the new 
                                        commercial enterprise, or the 
                                        principals of the 
                                        aforementioned entities;
                                            ``(cc) the name and contact 
                                        information of any person that 
                                        has received or the commercial 
                                        enterprise knows will receive 
                                        any fees or transaction-based 
                                        compensation in connection with 
                                        the investment, and a 
                                        description of the services 
                                        performed or to be performed by 
                                        such person which entitle them 
                                        to the fees or transaction-
                                        based compensation; and
                                            ``(dd) any pending 
                                        litigation or bankruptcy or 
                                        adverse judgments during the 
                                        most recent 10-year period 
                                        affecting the regional center, 
                                        new commercial enterprise, any 
                                        other business subsequently 
                                        receiving investment capital 
                                        from the new commercial 
                                        enterprise, or any other 
                                        enterprise in which any 
                                        principal of the aforementioned 
                                        entities held majority 
                                        ownership at the time;
                                    ``(V) a description of the policies 
                                and procedures reasonably designed to 
                                ensure that the commercial enterprise, 
                                its agents, employees, and attorneys, 
                                and any persons in active concert or 
                                participation with the commercial 
                                enterprise, comply with the securities 
                                laws of the United States in connection 
                                with the offer, purchase, or sale of 
                                its securities;
                                    ``(VI) a certification that the 
                                commercial enterprise and its agents, 
                                employees, and attorneys, and any 
                                persons in active concert or 
                                participation with the commercial 
                                enterprise, are in compliance with the 
                                securities laws of the United States in 
                                connection with the offer, purchase, or 
                                sale of its securities; and
                                    ``(VII) for a capital investment in 
                                a targeted employment area, a credible 
                                economic analysis regarding estimated 
                                job creation that is likely to occur--
                                            ``(aa) if the targeted 
                                        employment area is located 
                                        within a combined statistical 
                                        area or a metropolitan 
                                        statistical area, in the 
                                        combined statistical area or 
                                        metropolitan statistical area; 
                                        or
                                            ``(bb) if the targeted 
                                        employment area is located 
                                        outside of an area described in 
                                        item (aa), in any county that 
                                        is included in the targeted 
                                        employment area and counties 
                                        adjacent to the targeted 
                                        employment area.
                            ``(ii) Effect of approval of business plan 
                        for investment in regional center commercial 
                        enterprise.--The approval of an application 
                        under this subparagraph shall be binding for 
                        purposes of the adjudication of subsequent 
                        petitions seeking classification under this 
                        paragraph by immigrants investing in the same 
                        commercial enterprise concerning the same 
                        economic activity, and of petitions filed under 
                        section 216A, unless the Secretary of Homeland 
                        Security determines that there is evidence of 
                        fraud, misrepresentation, criminal misuse, a 
                        threat to public safety or national security, a 
                        material change that affects the approved 
                        economic model, other evidence affecting 
                        program eligibility that was not disclosed by 
                        the petitioner during the approval process, or 
                        a material mistake of law or fact in the prior 
                        adjudication.
                            ``(iii) Consideration of fraudulent or 
                        other criminal activity in establishing 
                        eligibility criteria.--
                                    ``(I) In general.--The Secretary of 
                                Homeland Security shall consider the 
                                potential for fraud, misrepresentation, 
                                criminal misuse, and threats to public 
                                safety or national security in 
                                establishing eligibility criteria under 
                                this subparagraph.
                                    ``(II) Grounds for denial or 
                                revocation.--The Secretary shall deny 
                                or revoke the approval of any business 
                                plan application under this 
                                subparagraph with any particular 
                                investment or business arrangement 
                                that, in the Secretary's unreviewable 
                                discretion--
                                            ``(aa) presents a threat to 
                                        public safety or national 
                                        security; or
                                            ``(bb) presents a 
                                        significant risk of criminal 
                                        misuse, fraud, or abuse, 
                                        including arrangements that 
                                        involve self-dealing or any 
                                        other inherent conflict of 
                                        interest between potential 
                                        alien entrepreneurs and the 
                                        principals of a regional center 
                                        or a regional center associated 
                                        commercial enterprise.
                            ``(iv) Site visits.--The Secretary shall 
                        perform at least 1 site visit to each regional 
                        center associated commercial enterprise in 
                        accordance with section 216A(c)(1)(C).
                            ``(v) Premium processing option.--The 
                        Secretary shall establish a process for premium 
                        processing of business plan applications under 
                        this subparagraph related to investment in a 
                        regional center commercial enterprise, 
                        including making available the expeditious 
                        execution of a site visit described in clause 
                        (iv), which may include an opportunity for the 
                        applicant to address and cure any deficiencies 
                        identified by the Secretary in the applicant's 
                        business plan, investment documents, or 
                        statement regarding job creation prior to a 
                        final determination. The Secretary shall impose 
                        a fee for the use of the process described in 
                        this clause sufficient to recover the costs of 
                        its administration.
                            ``(vi) Approval of business plan in a 
                        targeted employment area.--For a capital 
                        investment in a designated targeted employment 
                        area, at least 50 percent of the estimated job 
                        creation intended to form the basis of the job 
                        creation requirement under subparagraph (A)(ii) 
                        shall be expected to occur within an area 
                        specified in subparagraph (F)(i)(VII). If the 
                        estimated job creation in such area is below 50 
                        percent, the total number of jobs created by 
                        the capital investment for which alien 
                        entrepreneurs may receive credit shall be 
                        limited to the number at which 50 percent of 
                        the job creation requirement occurs within an 
                        area described in clause (i)(VII).
                    ``(G) Regional center annual statements.--
                            ``(i) In general.--Each regional center 
                        designated under subparagraph (E) shall 
                        annually submit, to the Director of U.S. 
                        Citizenship and Immigration Services (referred 
                        to in this subparagraph as the `Director'), in 
                        a manner prescribed by the Secretary of 
                        Homeland Security, a statement, including--
                                    ``(I) a certification by the 
                                regional center that it remains in 
                                compliance with clauses (i) and (ii) of 
                                subparagraph (H);
                                    ``(II) a certification by the 
                                regional center described in 
                                subparagraph (I)(ii)(II);
                                    ``(III) a certification by the 
                                regional center that it is in 
                                compliance with subparagraph (K)(iii);
                                    ``(IV) a description of any pending 
                                litigation or bankruptcy proceedings, 
                                or litigation or bankruptcy proceedings 
                                resolved during the preceding fiscal 
                                year, involving the regional center or 
                                an associated commercial enterprise;
                                    ``(V) an accounting of all foreign 
                                investor money invested in the regional 
                                center and its associated commercial 
                                enterprises; and
                                    ``(VI) for each new commercial 
                                enterprise associated with the regional 
                                center--
                                            ``(aa) an accounting of the 
                                        aggregate capital invested in 
                                        the new commercial enterprise 
                                        by alien entrepreneurs under 
                                        this paragraph for each capital 
                                        investment project being 
                                        undertaken by the new 
                                        commercial enterprise;
                                            ``(bb) a description of how 
                                        such capital is being used to 
                                        execute each capital investment 
                                        project in the approved 
                                        business plan or plans;
                                            ``(cc) evidence that 100 
                                        percent of such capital has 
                                        been irrevocably committed to 
                                        each capital investment 
                                        project;
                                            ``(dd) detailed evidence of 
                                        the progress made toward the 
                                        completion of each capital 
                                        investment project;
                                            ``(ee) an accounting of the 
                                        aggregate direct jobs created 
                                        or preserved;
                                            ``(ff) a description of all 
                                        funds, including 
                                        administrative, loan 
                                        monitoring, or loan management 
                                        fees, in addition to investor 
                                        capital collected from alien 
                                        entrepreneurs by any party in 
                                        relation to the investment or 
                                        participation in the regional 
                                        center program described in 
                                        subparagraph (E), the entities 
                                        that received such funds, and 
                                        the purpose for which such 
                                        funds were collected;
                                            ``(gg) any documentation 
                                        referred to in subparagraph 
                                        (F)(i)(IV) if there has been a 
                                        material change during the 
                                        preceding fiscal year; and
                                            ``(hh) a certification by 
                                        the regional center and 
                                        associated commercial 
                                        enterprise that such statements 
                                        are accurate.
                            ``(ii) Amendment of annual statements.--The 
                        Director--
                                    ``(I) shall require the regional 
                                center to amend or supplement an annual 
                                statement required under clause (i) if 
                                the Director determines that such 
                                statement is deficient; and
                                    ``(II) may require the regional 
                                center to amend or supplement such 
                                annual statement if the Director 
                                determines that such an amendment or 
                                supplement is appropriate.
                            ``(iii) Sanctions.--
                                    ``(I) Effect of violation.--If the 
                                Director determines that a regional 
                                center or other individual affiliated 
                                with a regional center, including an 
                                individual affiliated with an 
                                associated commercial enterprise, and 
                                any legal representative of such 
                                entities, has violated any 
                                certification under clause (i) or that 
                                the regional center is conducting 
                                itself in a manner inconsistent with 
                                its designation, including any willful 
                                and material deviation by commercial 
                                enterprises associated with the 
                                regional center from any approved 
                                business plan for such commercial 
                                enterprises, the Director shall 
                                sanction the violating entity or 
                                individual under subclause (II).
                                    ``(II) Authorized sanctions.--The 
                                Director shall establish a graduated 
                                set of sanctions based on the severity 
                                of the violations referred to in 
                                subclause (I), as determined by the 
                                Director, including--
                                            ``(aa) civil money 
                                        penalties equal to not more 
                                        than 10 percent of the total 
                                        capital invested by alien 
                                        entrepreneurs in the regional 
                                        center's associated commercial 
                                        enterprises, the payment of 
                                        which shall not in any 
                                        circumstance utilize any of 
                                        such alien entrepreneurs' 
                                        capital investment;
                                            ``(bb) temporary suspension 
                                        from participation in the 
                                        program described in 
                                        subparagraph (E), which may be 
                                        lifted by the Director if the 
                                        individual or entity cures the 
                                        alleged violation after being 
                                        provided such an opportunity by 
                                        the Director;
                                            ``(cc) permanent bar from 
                                        program participation for 1 or 
                                        more individuals associated 
                                        with the regional center or an 
                                        associated commercial 
                                        enterprise; and
                                            ``(dd) termination of 
                                        regional center status.
                    ``(H) Bona fides of persons associated with 
                regional centers or regional center associated 
                commercial enterprises.--
                            ``(i) In general.--No person shall be 
                        permitted by any regional center or regional 
                        center associated commercial enterprise to be 
                        directly or indirectly involved with the 
                        regional center or commercial enterprise as its 
                        principal, representative, administrator, 
                        owner, officer, board member, manager, 
                        executive, general partner, fiduciary, 
                        marketer, promoter, or other similar position 
                        of substantive authority for the operations, 
                        management or promotion of the regional center 
                        or commercial enterprise if--
                                    ``(I) the person has been found 
                                liable within the previous 10 years for 
                                any criminal or civil violation of any 
                                law relating to fraud or deceit, or at 
                                any time if such violation involved a 
                                civil liability in excess of 
                                $1,000,000, a criminal conviction with 
                                a term of imprisonment of more than 1 
                                year or a criminal or civil violation 
                                of any law or agency regulation in 
                                connection with the offer, purchase, or 
                                sale of a security;
                                    ``(II) the person is subject to a 
                                final order of a State securities 
                                commission (or an agency or officer of 
                                a State who performs similar 
                                functions), a State authority that 
                                supervises or examines banks, savings 
                                associations, or credit unions, a State 
                                insurance commission (or an agency of 
                                or officer of a State who performs 
                                similar functions), an appropriate 
                                Federal banking agency, the Commodity 
                                Futures Trading Commission, or the 
                                National Credit Union Administration, 
                                which is based on a violation of any 
                                law or regulation that--
                                            ``(aa) prohibits 
                                        fraudulent, manipulative, or 
                                        deceptive conduct; or
                                            ``(bb) bars the person 
                                        from--

                                                    ``(AA) association 
                                                with an entity 
                                                regulated by such 
                                                commission, authority, 
                                                agency, or officer;

                                                    ``(BB) engaging in 
                                                the business of 
                                                securities, insurance, 
                                                or banking; or

                                                    ``(CC) engaging in 
                                                savings association or 
                                                credit union 
                                                activities;

                                    ``(III) there is reasonable cause 
                                to believe that the person is engaged 
                                in, has ever been engaged in, or seeks 
                                to engage in--
                                            ``(aa) any illicit 
                                        trafficking in any controlled 
                                        substance or in any listed 
                                        chemical (as defined in section 
                                        102 of the Controlled 
                                        Substances Act);
                                            ``(bb) any activity 
                                        relating to espionage, 
                                        sabotage, or theft of 
                                        intellectual property;
                                            ``(cc) any activity related 
                                        to money laundering (as 
                                        described in section 1956 or 
                                        1957 of title 18, United States 
                                        Code);
                                            ``(dd) any terrorist 
                                        activity (as defined in clauses 
                                        (iii) and (iv) of section 
                                        212(a)(3)(B));
                                            ``(ee) any activity related 
                                        to human trafficking or a human 
                                        rights offense;
                                            ``(ff) any activity 
                                        described in section 
                                        212(a)(3)(E); or
                                            ``(gg) the violation of any 
                                        statute, regulation, or 
                                        Executive order regarding 
                                        foreign financial transactions 
                                        or foreign asset control; or
                                    ``(IV) the person--
                                            ``(aa) is, or during the 
                                        preceding 10 years has been, 
                                        included on the Department of 
                                        Justice's List of Currently 
                                        Disciplined Practitioners; or
                                            ``(bb) during the preceding 
                                        10 years, has received a 
                                        reprimand or otherwise been 
                                        publicly disciplined by a bar 
                                        association of which the person 
                                        is or was a member.
                            ``(ii) Status of regional center 
                        principals.--
                                    ``(I) Lawful status required.--No 
                                person may be directly or indirectly 
                                involved with a regional center as its 
                                principal, administrator, owner, 
                                officer, board member, manager, 
                                executive, general partner, fiduciary, 
                                or other similar position of 
                                significant authority for the 
                                operations or management of the 
                                regional center unless the person is a 
                                national of the United States or an 
                                individual who has been lawfully 
                                admitted for permanent residence.
                                    ``(II) Foreign governments.--No 
                                foreign government entity may be 
                                directly or indirectly involved with 
                                the ownership or administration of a 
                                regional center.
                            ``(iii) Information required.--The 
                        Secretary shall require such attestations and 
                        information, including the submission of 
                        fingerprints or other biometrics to the Federal 
                        Bureau of Investigation, and shall perform such 
                        criminal record checks and other background 
                        checks with respect to a regional center or 
                        regional center associated commercial 
                        enterprise, and persons involved in a regional 
                        center or regional center associated commercial 
                        enterprise as described in clauses (i) and 
                        (ii), to determine whether such regional center 
                        or regional center associated commercial 
                        enterprise is in compliance with clauses (i) 
                        and (ii). The Secretary may require the 
                        information and attestations described in this 
                        clause from such regional center or regional 
                        center associated commercial enterprise, and 
                        any person involved in the regional center or 
                        regional center associated commercial 
                        enterprise, at any time on or after the date of 
                        the enactment of the American Job Creation and 
                        Investment Promotion Reform Act of 2015.
                            ``(iv) Termination.--The Secretary, in the 
                        Secretary's unreviewable discretion, shall 
                        terminate from the program under this paragraph 
                        any regional center or regional center 
                        associated commercial enterprise if the 
                        Secretary determines that--
                                    ``(I) the regional center or 
                                regional center associated commercial 
                                enterprise has violated clause (i);
                                    ``(II) the regional center has 
                                violated clause (ii);
                                    ``(III) the regional center, a 
                                regional center associated commercial 
                                enterprise, or any person involved with 
                                the regional center or regional center 
                                associated commercial enterprise fails 
                                to provide an attestation or 
                                information requested by the Secretary 
                                or provides any false attestation or 
                                information under clause (iii); or
                                    ``(IV) the regional center, a 
                                regional center associated commercial 
                                enterprise, or any person involved with 
                                the regional center or regional center 
                                associated commercial enterprise has 
                                engaged in fraud, misrepresentation, 
                                criminal misuse, or poses a threat to 
                                public safety or national security.
                    ``(I) Compliance with securities laws.--
                            ``(i) Jurisdiction.--In view of the 
                        objective of promoting investment in the United 
                        States, in an action filed by the Securities 
                        and Exchange Commission, the purchase or sale 
                        of securities offered or sold by any regional 
                        center or any party associated with a regional 
                        center shall be deemed to have occurred within 
                        the territory of the United States for purposes 
                        of the securities laws, and subject matter 
                        jurisdiction shall also lie within the United 
                        States.
                            ``(ii) Regional center certifications 
                        required.--
                                    ``(I) Initial certification.--The 
                                Secretary of Homeland Security shall 
                                not approve an application for regional 
                                center designation or regional center 
                                amendment unless the regional center 
                                certifies that the regional center is 
                                in compliance with and has policies and 
                                procedures reasonably designed to 
                                ensure that all parties associated with 
                                the regional center remain in 
                                compliance with the securities laws of 
                                the United States and of any State in 
                                which the regional center operates in 
                                connection with the offer, purchase, or 
                                sale of securities or the provision of 
                                investment advice by the regional 
                                center or parties associated with the 
                                regional center.
                                    ``(II) Reissue.--A regional center 
                                shall annually reissue a certification 
                                described in subclause (I) in 
                                accordance with subparagraph (G). 
                                Annual certifications under this 
                                subclause shall also certify compliance 
                                with clause (iii) by stating that the 
                                certifier is in a position to have 
                                knowledge of the offers, purchases, and 
                                sales of securities or the provision of 
                                investment advice by parties associated 
                                with the regional center and, to the 
                                best of the certifier's knowledge, 
                                after reasonable investigation, all 
                                such offers, purchases, and sales of 
                                securities or the provision of 
                                investment advice complied with 
                                securities laws of the United States 
                                and that records, data, and information 
                                related to such offers, purchases, and 
                                sales have been maintained.
                                    ``(III) Effect of noncompliance.--
                                If a regional center, through its due 
                                diligence, discovered during the 
                                previous fiscal year that the regional 
                                center or any party associated with the 
                                regional center was not in compliance 
                                with the securities laws of the United 
                                States, the certifier shall--
                                            ``(aa) describe the 
                                        activities that led to 
                                        noncompliance;
                                            ``(bb) describe the actions 
                                        taken to remedy the 
                                        noncompliance; and
                                            ``(cc) certify that the 
                                        regional center and all parties 
                                        associated with the regional 
                                        center are currently in 
                                        compliance.
                            ``(iii) Oversight required.--Each regional 
                        center shall monitor and supervise all offers, 
                        purchases, and sales of, and advice relating 
                        to, securities made by parties associated with 
                        the regional center to ensure compliance with 
                        the securities laws of the United States, and 
                        maintain records, data, and information 
                        relating to all such offers, purchases, sales, 
                        and advice during the 5-year period beginning 
                        on the date of their creation. Such records, 
                        data, and information shall be made available 
                        to the Securities and Exchange Commission and 
                        to the Secretary upon request.
                            ``(iv) Suspension or termination.--The 
                        Secretary, in the Secretary's unreviewable 
                        discretion, shall suspend or terminate the 
                        designation of any regional center that does 
                        not provide the certification described in 
                        clause (ii). In addition to any other authority 
                        provided to the Secretary under this paragraph, 
                        the Secretary, in the Secretary's unreviewable 
                        discretion, may suspend or terminate the 
                        designation of any regional center or impose 
                        other sanctions against the regional center if 
                        the regional center or any parties associated 
                        with the regional center--
                                    ``(I) are permanently or 
                                temporarily enjoined by order, 
                                judgment, or decree of any court of 
                                competent jurisdiction in connection 
                                with the offer, purchase, or sale of a 
                                security or the provision of investment 
                                advice;
                                    ``(II) are subject to any final 
                                order of the Securities and Exchange 
                                Commission that--
                                            ``(aa) bars such person 
                                        from association with an entity 
                                        regulated by the Securities and 
                                        Exchange Commission; or
                                            ``(bb) constitutes a final 
                                        order based on violations in 
                                        connection with the offer, 
                                        purchase, or sale of, or advice 
                                        relating to, a security; or
                                    ``(III) knowingly submitted or 
                                caused to be submitted a certification 
                                described in clause (ii) that contained 
                                an untrue statement of a material fact 
                                or omitted to state a material fact 
                                necessary in order to make the 
                                statements made, in light of the 
                                circumstances under which they were 
                                made, not misleading.
                            ``(v) Savings provision.--Nothing in this 
                        subparagraph may be construed to impair or 
                        limit the authority of the Securities and 
                        Exchange Commission under the Federal 
                        securities laws.
                            ``(vi) Defined term.--In this subparagraph, 
                        the term `parties associated with a regional 
                        center' means--
                                    ``(I) the regional center;
                                    ``(II) any commercial enterprise 
                                associated with the regional center;
                                    ``(III) the regional center's and 
                                associated commercial enterprise's 
                                owners, officers, directors, managers, 
                                partners, agents, employees, promoters 
                                and attorneys; and
                                    ``(IV) any person in active concert 
                                or participation with the regional 
                                center or directly or indirectly 
                                controlling, controlled by, or under 
                                common control with the regional 
                                center.
                    ``(J) EB-5 integrity fund.--
                            ``(i) Establishment.--There is established 
                        in the United States Treasury a special fund, 
                        which shall be known as the EB-5 Integrity Fund 
                        (referred to in this subparagraph as the 
                        `Fund'). Amounts deposited into the Fund shall 
                        be available until expended to the Secretary of 
                        Homeland Security for the purposes set forth in 
                        clause (iii).
                            ``(ii) Fees.--The Secretary of Homeland 
                        Security shall collect an annual fee of $20,000 
                        for the Fund from each regional center 
                        designated under subparagraph (E). The first 
                        fee under this clause shall be due not later 
                        than January 1, 2016, and subsequent fees due 
                        not later than January 1 of each year 
                        thereafter. Newly designated regional centers 
                        shall pay their initial fee for the calendar 
                        year following the calendar year during which 
                        the regional center was so designated. The 
                        Secretary may prescribe regulations, as 
                        necessary, to increase the dollar amount 
                        specified under this clause to ensure the 
                        Secretary's continued ability to carry out the 
                        activities specified in clause (iii).
                            ``(iii) Permissible uses of fund.--The 
                        Secretary of Homeland Security shall--
                                    ``(I) use not less than \1/3\ of 
                                the amounts deposited into the Fund to 
                                conduct audits and site visits 
                                (announced and unannounced);
                                    ``(II) use not less than \1/3\ of 
                                the amounts deposited into the Fund for 
                                investigations based outside of the 
                                United States, including--
                                            ``(aa) monitoring and 
                                        investigating program-related 
                                        events and promotional 
                                        activities; and
                                            ``(bb) ensuring an alien 
                                        entrepreneur's compliance with 
                                        subparagraph (L);
                                    ``(III) use amounts deposited into 
                                the Fund--
                                            ``(aa) to detect and 
                                        investigate fraud or other 
                                        crimes; and
                                            ``(bb) to determine whether 
                                        regional centers, associated 
                                        commercial enterprises, and 
                                        alien entrepreneurs (and alien 
                                        spouses and alien children, if 
                                        any) comply with applicable 
                                        immigration laws and 
                                        regulations;
                                    ``(IV) use amounts deposited into 
                                the Fund to conduct interviews of the 
                                owners, officers, directors, managers, 
                                partners, agents, employees, promoters, 
                                and attorneys of a regional center and 
                                regional center associated commercial 
                                enterprise; and
                                    ``(V) otherwise use amounts 
                                deposited into the Fund as the 
                                Secretary determines to be necessary, 
                                including monitoring compliance with 
                                the requirements under section 7 of the 
                                American Job Creation and Investment 
                                Promotion Reform Act of 2015.
                            ``(iv) Failure to pay fee.--The Secretary 
                        of Homeland Security shall--
                                    ``(I) impose a reasonable penalty 
                                if a regional center does not pay the 
                                fee required under clause (ii) within 
                                30 days of the date on which such fee 
                                is due under clause (ii); and
                                    ``(II) terminate the designation of 
                                any regional center that does not pay 
                                the fee required under clause (ii) 
                                before 90 days after the date on which 
                                such fee is due under clause (ii).
                            ``(v) Report.--The Secretary shall submit 
                        an annual report to the Committee on the 
                        Judiciary of the Senate and the Committee on 
                        the Judiciary of the House of Representatives 
                        that describes how amounts in the Fund were 
                        expended during the previous fiscal year.
                    ``(K) Direct and third-party promoters.--
                            ``(i) Rules and standards.--Direct and 
                        third-party promoters of a regional center, 
                        parties associated with a regional center, or 
                        of the investment opportunities of a regional 
                        center, shall comply with the rules and 
                        standards prescribed by the Secretary of 
                        Homeland Security to oversee regional center 
                        promotion, including--
                                    ``(I) registration with U.S. 
                                Citizenship and Immigration Services, 
                                which the Secretary shall make publicly 
                                available;
                                    ``(II) minimum qualifications;
                                    ``(III) guidelines for offering 
                                investment opportunities and 
                                representing the visa process to 
                                foreign entrepreneurs; and
                                    ``(IV) permissible fee 
                                arrangements.
                            ``(ii) Effect of violation.--If the 
                        Secretary determines, in the Secretary's 
                        unreviewable discretion, that a direct or 
                        third-party promoter has violated clause (i), 
                        the Secretary shall suspend or permanently bar 
                        such individual from participation in the 
                        program described in subparagraph (E).
                            ``(iii) Compliance.--Each regional center 
                        shall maintain a written agreement between the 
                        regional center or regional center associated 
                        commercial enterprise and each direct or third-
                        party promoter operating on behalf of such 
                        regional center or commercial enterprise that 
                        outlines the rules and standards prescribed 
                        under clause (i).
                    ``(L) Source of funds.--
                            ``(i) In general.--An alien entrepreneur 
                        shall demonstrate that the capital required 
                        under subparagraph (A) and any funds used to 
                        pay administrative costs and fees associated 
                        with the alien's investment were obtained from 
                        a lawful source and through lawful means.
                            ``(ii) Required information.--The Secretary 
                        of Homeland Security shall require, as 
                        applicable, that an alien entrepreneur petition 
                        under this paragraph contain--
                                    ``(I) business and tax records, 
                                including--
                                            ``(aa) foreign business 
                                        registration records;
                                            ``(bb) corporate or 
                                        partnership tax returns (or any 
                                        other entity in any form that 
                                        has filed in any country or 
                                        subdivision thereof any return 
                                        described in this subpart), and 
                                        personal tax returns including 
                                        income, franchise, property 
                                        (whether real, personal, or 
                                        intangible), or any other tax 
                                        returns of any kind filed 
                                        within 7 years, with any taxing 
                                        jurisdiction in or outside the 
                                        United States by or on behalf 
                                        of the alien entrepreneur; and
                                            ``(cc) evidence identifying 
                                        any other source of capital or 
                                        administrative fees;
                                    ``(II) evidence related to monetary 
                                judgments against the alien 
                                entrepreneur, including certified 
                                copies of any judgments or evidence of 
                                all pending governmental civil or 
                                criminal actions, governmental 
                                administrative proceedings, and any 
                                private civil actions (pending or 
                                otherwise) involving monetary judgments 
                                against the alien entrepreneur from any 
                                court in or outside the United States; 
                                and
                                    ``(III) the identity of all persons 
                                who transfer into the United States, on 
                                behalf of the entrepreneur--
                                            ``(aa) any funds that are 
                                        used to meet the capital 
                                        requirement under subparagraph 
                                        (A); and
                                            ``(bb) any funds that are 
                                        used to pay administrative 
                                        costs and fees associated with 
                                        the alien's investment.
                            ``(iii) Gift restrictions.--Gifted funds 
                        may be counted toward the minimum capital 
                        investment requirement under subparagraph (C) 
                        only if such funds were gifted to the alien 
                        entrepreneur by the alien entrepreneur's 
                        spouse, parent, child, sibling, or grandparent 
                        and such funds were gifted in good faith and 
                        not to circumvent any limitations imposed on 
                        permissible sources of capital under this 
                        subparagraph. If a significant portion of the 
                        capital invested under subparagraph (A) was 
                        gifted to the alien entrepreneur, the Secretary 
                        shall require the alien entrepreneur's petition 
                        under this paragraph to include records 
                        described in subclauses (I) and (II) of clause 
                        (ii) from the donor.
                            ``(iv) Loan restrictions.--Capital derived 
                        from indebtedness may be counted toward the 
                        minimum capital investment requirement under 
                        subparagraph (C) only if such capital is--
                                    ``(I) secured by assets owned by 
                                the alien entrepreneur; and
                                    ``(II) issued by a reputable 
                                banking or lending institution that is 
                                properly chartered or licensed under 
                                the laws of any State, territory, 
                                country, or applicable jurisdiction, 
                                which the Secretary shall determine 
                                after consulting with relevant 
                                commercial or government databases, 
                                such as those of the Department of the 
                                Treasury's Office of Foreign Assets 
                                Control, Office of Terrorist Financing 
                                and Financial Crimes, and Financial 
                                Crimes Enforcement Network.
                    ``(M) Treatment of entrepreneurs if regional center 
                terminated.--
                            ``(i) In general.--Upon the termination of 
                        a regional center or regional center associated 
                        commercial enterprise under this paragraph--
                                    ``(I) the conditional permanent 
                                residence of an alien who has been 
                                admitted to the United States pursuant 
                                to section 216A(a)(1) based on an 
                                investment in a commercial enterprise 
                                associated with the terminated regional 
                                center or regional center associated 
                                commercial enterprise shall continue to 
                                be authorized; and
                                    ``(II) the alien shall not accrue 
                                any period of unlawful presence under 
                                section 212(a)(9) during the 180-day 
                                period following such termination 
                                unless the Secretary has reason to 
                                believe the alien was a knowing 
                                participant in the conduct that led to 
                                the termination of such regional center 
                                or regional center associated 
                                commercial enterprise.
                            ``(ii) New regional center or investment.--
                        The conditional permanent resident status of an 
                        alien described in clause (i)(I) shall be 
                        terminated at the end of the 180-day period 
                        described in clause (i)(II) unless--
                                    ``(I) in the case of the 
                                termination of a regional center--
                                            ``(aa) the associated 
                                        commercial enterprise 
                                        affiliates with an approved 
                                        regional center designated to 
                                        operate within the same 
                                        geographic area as the 
                                        commercial enterprise; or
                                            ``(bb) such alien invests 
                                        in another commercial 
                                        enterprise associated with an 
                                        approved regional center; or
                                    ``(II) in the case of the 
                                termination of a regional center 
                                associated commercial enterprise, such 
                                alien invests in another commercial 
                                enterprise associated with an approved 
                                regional center.
                            ``(iii) Removal of conditions.--Aliens 
                        described in subclauses (I)(bb) and (II) of 
                        clause (ii) shall be eligible to have their 
                        conditions removed pursuant to section 216A 
                        beginning on the date that is 2 years after the 
                        date of the subsequent investment.
                    ``(N) Fraud, criminal misuse, and threats to 
                national interests.--
                            ``(i) Denial or revocation.--If the 
                        Secretary of Homeland Security determines, in 
                        the Secretary's unreviewable discretion, that 
                        the approval of a petition, application, or 
                        benefit described in this paragraph is contrary 
                        to the national interest of the United States 
                        for reasons relating to fraud, 
                        misrepresentation, criminal misuse, or threats 
                        to public safety or national security, the 
                        Secretary shall deny or revoke the approval 
                        of--
                                    ``(I) a petition seeking 
                                classification of an alien as an alien 
                                entrepreneur under this paragraph;
                                    ``(II) a petition to remove 
                                conditions under section 216A before 
                                granting lawful permanent resident 
                                status or any other petition, 
                                application, or benefit based upon the 
                                previous or concurrent filing or 
                                approval of a petition for 
                                classification of an alien under this 
                                paragraph;
                                    ``(III) an application for approval 
                                of a business plan in a regional center 
                                associate commercial enterprise; or
                                    ``(IV) an application for 
                                designation as a regional center.
                            ``(ii) Debarment.--If a regional center or 
                        regional center associated commercial 
                        enterprise has its designation or participation 
                        in the program under this paragraph terminated 
                        for reasons relating to fraud, intentional 
                        material misrepresentation, criminal misuse, or 
                        threats to public safety or national security, 
                        any person associated with such regional center 
                        or regional center associated commercial 
                        enterprise, including an alien investor, shall 
                        be permanently barred from future participation 
                        in the program if the Secretary of Homeland 
                        Security, in the Secretary's unreviewable 
                        discretion, determines that such person was a 
                        knowing participant in the conduct that led to 
                        the termination.''.
    (c) Effective Date.--The amendments made by this section--
            (1) shall take effect on the date of the enactment of this 
        Act; and
            (2) shall apply to--
                    (A) any application to designate a regional center, 
                and any person involved with the regional center, that 
                is pending or approved on or after the date of the 
                enactment of this Act; and
                    (B) any regional center approved before the date of 
                the enactment of this Act, on or after a delayed 
                effective date that is 1 year after such date of 
                enactment with respect to any person involved in the 
                regional center on or after such delayed effective 
                date, unless otherwise provided in this section.
    (d) GAO Report.--Not later than December 31, 2018, the Comptroller 
General of the United States shall submit a report to the Committee on 
the Judiciary of the Senate and the Committee on the Judiciary of the 
House of Representatives that describes--
            (1) the economic benefits of the regional center program 
        established under section 203(b)(5) of the Immigration and 
        Nationality Act (8 U.S.C. 1153(b)(5)), including the steps 
        taken by U.S. Citizenship and Immigration Services to verify 
        job creation;
            (2) the extent to which U.S. Citizenship and Immigration 
        Services ensures compliance by regional center participants;
            (3) the extent to which U.S. Citizenship and Immigration 
        Services has maintained records by regional centers and 
        associated commercial enterprises, including annual statements 
        and certifications;
            (4) the steps taken by U.S. Citizenship and Immigration 
        Services to verify the source of funds, as required under 
        section 203(b)(5)(L) of the Immigration and Nationality Act, as 
        added by subsection (b);
            (5) the extent to which U.S. Citizenship and Immigration 
        Services collaborates with other Federal and law enforcement 
        agencies, particularly to detect illegal activity and threats 
        to national security;
            (6) the extent to which U.S. Citizenship and Immigration 
        Services has prevented fraud and abuse in regional center 
        activities, including the designation of a regional center 
        investment in a targeted employment area;
            (7) the extent to which U.S. Citizenship and Immigration 
        Services has used its authority to sanction, suspend, bar, or 
        terminate a regional center or individuals affiliated with a 
        regional center;
            (8) the steps that have been taken to oversee direct and 
        third-party promoters under section 203(b)(5)(H) of the 
        Immigration and Nationality Act, as added by subsection (b);
            (9) the extent to which employees of the Department of 
        Homeland Security have complied with the ethical standards and 
        transparency requirements under section 7; and
            (10) an accounting of the expenditure of amounts from the 
        EB-5 Integrity Fund established under section 203(b)(5)(J) of 
        the Immigration and Nationality Act, as added by subsection 
        (b).
    (e) Inspector General Report.--Not later than December 31, 2018, 
the Inspector General of the Intelligence Community, in coordination 
with the Inspector General of the Department of Homeland Security and 
after consultation with relevant Federal agencies, including U.S. 
Immigration and Customs Enforcement, shall submit a report to the 
Committee on the Judiciary of the Senate and the Committee on the 
Judiciary of the House of Representatives that describes--
            (1) vulnerabilities within the EB-5 Immigrant Investor 
        Program that may undermine the national security of the United 
        States;
            (2) actual or potential use of the EB-5 Immigrant Investor 
        Program to facilitate export of sensitive technology;
            (3) actual or potential use of the EB-5 Immigrant Investor 
        Program to facilitate economic espionage;
            (4) actual or potential use of the EB-5 Immigrant Investor 
        Program by foreign government agents; and
            (5) actual or potential use of the EB-5 Immigrant Investor 
        Program to facilitate terrorist activity, including funding 
        terrorist activity or laundering terrorist funds.

SEC. 3. CONDITIONAL PERMANENT RESIDENT STATUS FOR ALIEN ENTREPRENEURS, 
              SPOUSES, AND CHILDREN.

    (a) In General.--Section 216A of the Immigration and Nationality 
Act (8 U.S.C. 1186b) is amended--
            (1) by striking ``Attorney General'' each place such term 
        appears (except in subsection (d)(2)(C)) and inserting 
        ``Secretary of Homeland Security'';
            (2) in subsection (a), by amending paragraph (1) to read as 
        follows:
            ``(1) Conditional basis for status.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), an alien entrepreneur, alien spouse, 
                and alien child shall be considered, at the time of 
                obtaining status of an alien lawfully admitted for 
                permanent residence, to have obtained such status on a 
                conditional basis subject to the provisions of this 
                section.
                    ``(B) Exception.--Alien entrepreneurs who meet the 
                requirements under subsection (d)(2)(A)(ii) shall 
                obtain the status of an alien lawfully admitted for 
                permanent residence without a conditional basis upon 
                approval of the petition required under such 
                subsection.'';
            (3) in subsection (c)--
                    (A) in the heading, by striking ``of Timely 
                Petition and Interview'';
                    (B) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``In order'' and inserting 
                        ``Except as provided in paragraph (3)(D), in 
                        order'';
                            (ii) in subparagraph (A), by striking ``, 
                        and'' and inserting a semicolon;
                            (iii) in subparagraph (B), by striking 
                        ``Service respecting the facts and information 
                        described in subsection (d)(1).'' and inserting 
                        ``Department of Homeland Security respecting 
                        the facts and information described in 
                        subsection (d)(1); and''; and
                            (iv) by adding at the end the following:
                    ``(C) the Secretary shall perform a site visit to 
                the job creating entity in which the alien entrepreneur 
                invested capital under section 203(b)(5)(A), which 
                visit may take place at any time after an application 
                for approval of investment in a commercial enterprise 
                is filed under section 203(b)(5)(F).''; and
                    (C) in paragraph (3)(A), by striking ``the'' before 
                ``such filing'';
            (4) in subsection (d)--
                    (A) in paragraph (1)(A)(ii), by inserting ``except 
                for alien entrepreneurs described in subsection 
                (d)(2)(A)(ii),'' before ``sustained'';
                    (B) in paragraph (2), by amending subparagraph (A) 
                to read as follows:
                    ``(A) 90-day period before second anniversary.--(i) 
                Except as provided in clause (ii) and subparagraph (B), 
                the petition under subsection (c)(1)(A) shall be filed 
                during the 90-day period before the second anniversary 
                of the alien entrepreneur's lawful admission for 
                permanent residence.
                    ``(ii) If the alien entrepreneur has sustained the 
                actions described in paragraph (1)(A)(i) for at least a 
                24-month period before admission, the alien 
                entrepreneur may file the petition under subsection 
                (c)(1)(A) any time after such period and before 
                admission for permanent residence.''; and
                    (C) in paragraph (3), by striking ``Service'' and 
                inserting ``Department of Homeland Security'';
            (5) by redesignating subsection (f) as subsection (g); and
            (6) by inserting after subsection (e) the following:
    ``(f) Fraud, Misrepresentation, Criminal Misuse, or Threats to the 
Public Safety or National Security.--If the Secretary of Homeland 
Security determines, in the Secretary's sole and unreviewable 
discretion, that the approval of any petition under this section or the 
conditional permanent resident status granted to an alien entrepreneur 
under subsection (a) is contrary to the national interest of the United 
States for reasons relating to fraud, misrepresentation, criminal 
misuse, or threats to public safety or national security, the Secretary 
shall--
            ``(1) notify the alien involved of such determination 
        without being required to disclose the basis for such 
        determination to the extent such disclosure would be contrary 
        to the national interest of the United States; and
            ``(2) deny such petition or terminate the permanent 
        resident status of the alien involved (and the alien spouse and 
        alien children of such immigrant) as of the date of such 
        determination.''.
    (b) Effective Date.--
            (1) In general.--Except as provided under paragraph (2), 
        the amendments made by this section shall take effect on the 
        date of the enactment of this Act.
            (2) Exception.--The amendment made by subsection 
        (a)(3)(B)(iv) shall take effect on the date that is 2 years 
        after the date of the enactment of this Act.

SEC. 4. EB-5 VISA REFORMS.

    (a) Targeted Employment Areas.--
            (1) In general.--Section 203(b)(5)(B) of the Immigration 
        and Nationality Act (8 U.S.C. 1153(b)(5)(B)) is amended to read 
        as follows:
                    ``(B) Set-aside for targeted employment areas.--
                            ``(i) In general.--Not fewer than 5,000 of 
                        the visas made available under this paragraph 
                        in each fiscal year shall be reserved for 
                        qualified immigrants who invest in a new 
                        commercial enterprise described in subparagraph 
                        (A), which--
                                    ``(I) is investing such capital in 
                                a targeted employment area; and
                                    ``(II) will create employment in 
                                such targeted employment area.
                            ``(ii) Duration of high unemployment area 
                        designation.--A designation of a high 
                        unemployment area as a targeted employment area 
                        shall be valid for the 2-year period beginning 
                        on the date of approval of an application filed 
                        under subparagraph (F) or at the time of the 
                        investment for aliens not subject to the 
                        requirements of subparagraph (F). Such 
                        designation may be renewed for additional 2-
                        year periods if the area continues to meet the 
                        definition of a high unemployment area. An 
                        entrepreneur who has made the required amount 
                        of investment in such a targeted employment 
                        area during its period of designation shall not 
                        be required to increase the amount of 
                        investment based upon expiration of the 
                        designation.''.
    (b) Adjustment of Minimum EB-5 Investment Amount.--Section 
203(b)(5)(C) of such Act (8 U.S.C. 1153(b)(5)(C)) is amended--
            (1) by striking clauses (i) and (ii) and inserting the 
        following:
                            ``(i) Minimum investment amounts.--Except 
                        as otherwise provided in this subparagraph, the 
                        amount of capital required under subparagraph 
                        (A) shall be $1,200,000. In the case of an 
                        investment in a targeted employment area, the 
                        amount of capital required under subparagraph 
                        (A) shall be $800,000.
                            ``(ii) Adjustment of minimum investment 
                        amounts.--
                                    ``(I) In general.--The Secretary of 
                                Homeland Security, in consultation with 
                                the Secretary of Labor and the 
                                Secretary of Commerce, may from time to 
                                time prescribe regulations increasing 
                                the dollar amounts specified under 
                                clause (i).
                                    ``(II) Automatic adjustments.--
                                Beginning on January 1, 2020, and on 
                                every fifth subsequent January 1--
                                            ``(aa) if the Secretary did 
                                        not increase the minimum amount 
                                        during the previous 5 fiscal 
                                        years, the amounts specified in 
                                        clause (i) shall automatically 
                                        be adjusted by the amount of 
                                        the cumulative percentage 
                                        change in the Consumer Price 
                                        Index (CPI-U) for the previous 
                                        5 fiscal years;
                                            ``(bb) if the Secretary 
                                        increased the minimum amount 
                                        during the previous 5 fiscal 
                                        years by an amount that is less 
                                        than the cumulative percentage 
                                        change in the CPI-U during the 
                                        previous 5 fiscal years, the 
                                        amounts specified in clause (i) 
                                        shall automatically be adjusted 
                                        by the amount of such 
                                        cumulative percentage change 
                                        for such period minus any 
                                        increase prescribed by the 
                                        Secretary by regulations; or
                                            ``(cc) if the Secretary 
                                        increased the minimum amount 
                                        during the previous 5 fiscal 
                                        years by an amount that is 
                                        greater than the cumulative 
                                        percentage change in the CPI-U 
                                        during the previous 5 fiscal 
                                        years, the amounts specified in 
                                        clause (i) shall not be 
                                        increased.
                            ``(iii) Minimum investment amount in a 
                        targeted employment area.--The minimum 
                        investment amount in a targeted employment area 
                        shall be not less than \1/2\ and not more than 
                        \3/4\ of the investment in a non-targeted area 
                        of employment.''; and
            (2) in clause (iii) by striking ``the Attorney General'' 
        and inserting ``the Secretary''.
    (c) Definitions.--
            (1) In general.--Section 203(b)(5) of such Act (8 U.S.C. 
        1153(b)(5)), as amended by subsections (a) and (b) and by 
        section 2, is further amended by amending subparagraph (D) to 
        read as follows:
                    ``(D) Definitions.--In this paragraph:
                            ``(i) Capital.--The term `capital'--
                                    ``(I) means all real, personal, or 
                                mixed tangible assets owned and 
                                controlled by the alien entrepreneur, 
                                or held in trust for the benefit of the 
                                alien and to which the alien has 
                                unrestricted access;
                                    ``(II) shall be valued at fair 
                                market value in United States dollars, 
                                in accordance with Generally Accepted 
                                Accounting Principles or other standard 
                                accounting practice adopted by the 
                                Securities and Exchange Commission, at 
                                the time it is invested under this 
                                paragraph; and
                                    ``(III) shall not include assets 
                                acquired, directly or indirectly, by 
                                unlawful means, including any cash 
                                proceeds of indebtedness secured by 
                                such assets.
                            ``(ii) Commercial enterprise associated 
                        with a regional center.--The terms `commercial 
                        enterprise associated with a regional center' 
                        and `regional center associated commercial 
                        enterprise' mean any for-profit activity formed 
                        for the ongoing conduct of lawful business, 
                        including a sole proprietorship, partnership 
                        (whether limited or general), holding company, 
                        joint venture, corporation, business trust, or 
                        other entity, that associates with a regional 
                        center and receives, or is established to 
                        receive, capital investment under the regional 
                        center program described in subparagraph (E).
                            ``(iii) Full-time employment.--The term 
                        `full-time employment' means employment in a 
                        position that requires at least 35 hours of 
                        service per week for at least a 24-month 
                        period.
                            ``(iv) High unemployment area.--The term 
                        `high unemployment area' means an area, using 
                        the most recent census data available, 
                        consisting of a census tract that has an 
                        unemployment rate that is at least 150 percent 
                        of the national average unemployment rate.
                            ``(v) Rural area.--The term `rural area' 
                        means any area other than an area within a 
                        metropolitan statistical area or within the 
                        outer boundary of any city or town having a 
                        population of 20,000 or more (based on the most 
                        recent decennial census of the United States).
                            ``(vi) Targeted employment area.--
                                    ``(I) In general.--The term 
                                `targeted employment area' means a high 
                                unemployment area, a rural area, or any 
                                area within the geographic boundaries 
                                of any military installation closed, 
                                during the 20-year period immediately 
                                preceding the filing of an application 
                                under subparagraph (F), based upon a 
                                recommendation by the Defense Base 
                                Closure and Realignment Commission.
                                    ``(II) Eligibility.--Eligibility 
                                for designation as a targeted 
                                employment area shall be determined by 
                                the Secretary of Homeland Security, who 
                                shall not be bound by the determination 
                                of any other Federal or State 
                                governmental or nongovernmental 
                                entity.''.
            (2) Rulemaking.--The Secretary of Homeland Security, in 
        consultation with the Secretary of Defense, shall issue 
        appropriate regulations to account for the modified definition 
        of targeted employment area in section 203(b)(5)(D)(vi) of the 
        Immigration and Nationality Act, as added by paragraph (1).
    (d) Age Determination for Children of Alien Entrepreneurs.--Section 
203(h) of the Immigration and Nationality Act (8 U.S.C. 1153(h)) is 
amended by adding at the end the following:
            ``(5) Age determination for children of alien 
        entrepreneurs.--An alien admitted under subsection (d) as a 
        lawful permanent resident on a conditional basis as the child 
        of an alien lawfully admitted for permanent residence under 
        subsection (b)(5), whose lawful permanent resident status on a 
        conditional basis is terminated under section 216A, shall 
        continue to be considered a child of the principal alien for 
        the purpose of a subsequent immigrant petition by such alien 
        under subsection (b)(5) if the alien remains unmarried and the 
        subsequent petition is filed by the principal alien not later 
        than 1 year after the termination of conditional lawful 
        permanent resident status. No alien shall be considered a child 
        under this paragraph with respect to more than 1 petition filed 
        after the alien reaches 21 years of age.''.
    (e) Enhanced Pay Scale for Certain Federal Employees Administering 
the EB-5 Program.--The Secretary of Homeland Security may establish, 
fix the compensation of, and appoint individuals to, designated 
critical, technical, and professional positions needed to administer 
sections 203(b)(5) and 216A of the Immigration and Nationality Act (8 
U.S.C. 1153(b)(5) and 1186b).
    (f) Concurrent Filing of EB-5 Petitions and Applications for 
Adjustment of Status.--Section 245 of the Immigration and Nationality 
Act (8 U.S.C. 1255) is amended--
            (1) in subsection (k), in the matter preceding paragraph 
        (1), by striking ``or (3)'' and inserting ``(3), or (5)''; and
            (2) by adding at the end the following:
    ``(n) If the approval of a petition for classification under 
section 203(b)(5) would make a visa immediately available to the alien 
beneficiary, the alien beneficiary's application for adjustment of 
status under this section shall be considered to be properly filed 
whether the application is submitted concurrently with, or subsequent 
to, the visa petition.''.
    (g) Effective Dates.--
            (1) In general.--Except as provided under paragraph (2), 
        the amendments made by this section shall be effective upon the 
        date of the enactment of this Act.
            (2) Exceptions.--The amendments made by subsections (b)(1) 
        and (c)(1) shall not apply to--
                    (A) applications for business plan approval for 
                regional center investments in actual projects that 
                were filed with, or approved by, the Secretary of 
                Homeland Security before the date of the enactment of 
                this Act; and
                    (B) petitions seeking classification under section 
                203(b)(5) of the Immigration and Nationality Act (8 
                U.S.C. 1153(b)(5)) and petitions filed under section 
                216A of such Act (8 U.S.C. 1186b) by immigrants 
                investing in the same commercial enterprise concerning 
                the same economic activity as contained in an 
                application for business plan approval described in 
                subparagraph (A).

SEC. 5. PROCEDURE FOR GRANTING IMMIGRANT STATUS.

    (a) Filing Order.--Section 204(a)(1)(H) of the Immigration and 
Nationality Act (8 U.S.C. 1154(a)(1)(H)) is amended to read as follows:
    ``(H) An alien desiring to be classified under section 203(b)(5) 
may file a petition with the Secretary of Homeland Security. An alien 
petitioning for classification pursuant to section 203(b)(5)(E) may 
file a petition with the Secretary only after approval of investment in 
a commercial enterprise under section 203(b)(5)(F).''.
    (b) Effective Date.--The amendment made by subsection (a)--
            (1) shall take effect on the date of the enactment of this 
        Act; and
            (2) shall apply to any petition for classification pursuant 
        to section 203(b)(5)(E) of the Immigration and Nationality Act 
        (8 U.S.C. 1153(b)(5)(E)) that is filed with the Secretary of 
        Homeland Security on or after the date of the enactment of this 
        Act.

SEC. 6. ADJUSTMENT OF FEES TO ACHIEVE EFFICIENT PROCESSING.

    (a) Fee Study.--Not later than 30 days after the date of the 
enactment of this Act, the Director of U.S. Citizenship and Immigration 
Service shall initiate a study of fees charged in the administration of 
the program described in section 203(b)(5)(E) of the Immigration and 
Nationality Act (8 U.S.C. 1153(b)(5)(E)).
    (b) Fee Levels.--Notwithstanding section 286(m) of the Immigration 
and Nationality Act (8 U.S.C. 1356(m)), and except as provided under 
subsection (c), the Director shall set fees for services provided 
pursuant to section 203(b)(5) of such Act at a level sufficient to 
ensure the full recovery only of the costs of providing such services, 
including the cost of ensuring that adjudication is completed, on 
average, not later than--
            (1) 120 days after receiving a proposal for the 
        establishment of a regional center described in section 
        203(b)(5)(E);
            (2) 120 days after receiving an application for approval of 
        investment in a commercial enterprise described in section 
        203(b)(5)(F);
            (3) 150 days after receiving a petition from an alien 
        desiring to be classified under section 203(b)(5)(E); and
            (4) 180 days after receiving a petition from an alien for 
        removal of conditions described in section 216A(c).
    (c) Additional Fees.--Additional fees in excess of the fee levels 
described in subsection (b) may be charged only to contribute--
            (1) in an amount that is equal to the amount paid by all 
        other classes of fee-paying applicants for immigration related 
        benefits, to the coverage or reduction of the costs of 
        processing or adjudicating classes of immigration benefit 
        applications that Congress or, in the case of asylum 
        applications, the Secretary has authorized to be processed or 
        adjudicated at no cost or at a reduced cost to the applicant; 
        and
            (2) in an amount that is not greater than 1 percent of the 
        fee for filing a petition under section 203(b)(5) of the 
        Immigration and Nationality Act (8 U.S.C. 1153(b)(5)), to 
        improvements to the information technological systems used by 
        the Secretary to process, adjudicate, and archive applications 
        and petitions under such section, including the conversion to 
        electronic format of documents filed by petitioners and 
        applicants for benefits under such section.
    (d) Rule of Construction.--Nothing in this section may be construed 
to require any modification of fees before the completion of--
            (1) the fee study described in subsection (a); and
            (2) regulations promulgated by the Secretary of Homeland 
        Security, in accordance with subchapter II of chapter 5 and 
        chapter 7 of title 5, United States Code (commonly known as the 
        ``Administrative Procedures Act''), to carry out subsection 
        (b).

SEC. 7. TRANSPARENCY.

    (a) In General.--Employees of the Department of Homeland Security, 
including the Secretary of Homeland Security, the Secretary's 
counselors, the Assistant Secretary for the Private Sector, the 
Director of U.S. Citizenship and Immigration Services, counselors to 
such Director, and the Chief of Immigrant Investor Programs at U.S. 
Citizenship and Immigration Services, shall act impartially and may not 
give preferential treatment to any organization or individual in 
connection with any aspect of the immigrant visa program described in 
section 203(b)(5)(E) of the Immigration and Nationality Act, as added 
by section 2(b).
    (b) Improper Activities.--Activities that constitute preferential 
treatment under subsection (a) shall include--
            (1) working on, or in any way attempting to expedite or 
        otherwise influence, in a manner not available to or accorded 
        to all other petitioners, applicants, and seekers of benefits 
        under the immigrant visa program described in section 
        203(b)(5)(E) of the Immigration and Nationality Act, as added 
        by section 2(b), the processing of, an application, petition, 
        or benefit for--
                    (A) a regional center;
                    (B) a commercial enterprise associated with a 
                regional center;
                    (C) a job-creating entity associated with a 
                regional center; or
                    (D) any person or entity associated with such 
                regional center, commercial enterprise, or job-creating 
                entity; and
            (2) meeting or communicating with persons associated with 
        the entities described in paragraph (1), at the request of such 
        persons, in a manner not available to or accorded to all other 
        petitioners, applicants, and seekers of benefits under the 
        immigrant visa program described in section 203(b)(5)(E) of the 
        Immigration and Nationality Act, as added by section 2(b).
    (c) Reporting of Communications.--
            (1) Written communication.--Employees of the Department of 
        Homeland Security, including the officials listed in subsection 
        (a), shall include, in the record of proceeding for a case 
        under section 203(b)(5)(E) of the Immigration and Nationality 
        Act, as added by section 2(b), actual or electronic copies of 
        all case-specific written communication, including e-mails from 
        government and private accounts, with non-Department persons or 
        entities advocating for regional center proposals or individual 
        petitions pending on or after the date of enactment of this 
        Act.
            (2) Oral communication.--If substantive oral communication, 
        including telephonic communication, virtual communication, and 
        in-person meetings, takes place between officials of the 
        Department of Homeland Security and non-Department persons or 
        entities regarding specific cases under section 203(b)(5)(E) of 
        the Immigration and Nationality Act (other than routine 
        communications with other agencies of the Federal Government 
        regarding the case, including communications involving 
        background checks and litigation defense)--
                    (A) the conversation shall be recorded; or
                    (B) detailed minutes of the session shall be taken 
                and included in the record of proceeding.
            (3) Notification.--
                    (A) In general.--If the Secretary, in the course of 
                written or oral communication described in this 
                subsection, receives evidence about a specific case 
                from anyone other than an affected party or his or her 
                representative (excluding Federal Government or law 
                enforcement sources), such information may not be made 
                part of the record of proceeding and may not be 
                considered in adjudicative proceedings unless--
                            (i) the affected party has been given 
                        notice of such evidence; and
                            (ii) if such evidence is derogatory, the 
                        affected party has been given an opportunity to 
                        respond to the evidence.
                    (B) Information from law enforcement, intelligence 
                agencies, or confidential sources.--
                            (i) Law enforcement or intelligence 
                        agencies.--Evidence received from law 
                        enforcement or intelligence agencies may not be 
                        made part of the record of proceeding without 
                        the consent of the relevant agency or law 
                        enforcement entity.
                            (ii) Whistleblowers or other confidential 
                        sources.--Evidence received from whistleblowers 
                        or other confidential sources that is included 
                        in the record of proceeding and considered in 
                        adjudicative proceedings shall be handled in a 
                        manner that does not reveal the identity of the 
                        whistleblower or confidential source.
    (d) Consideration of Evidence.--
            (1) In general.--No case-specific communication with 
        persons or entities that are not part of the Department of 
        Homeland Security may be considered in the adjudication of an 
        application or petition under section 203(b)(5)(E) of the 
        Immigration and Nationality Act, as added by section 2(b), 
        unless the communication is included in the record of 
        proceeding of the case.
            (2) Waiver.--The Secretary of Homeland Security may waive 
        the requirement under paragraph (1) only in the interests of 
        national security or for investigative or law enforcement 
        purposes.
    (e) Channels of Communication.--
            (1) E-mail address or equivalent.--The Director of U.S. 
        Citizenship and Immigration Services shall maintain an e-mail 
        account (or equivalent means of communication) for persons or 
        entities--
                    (A) with inquiries regarding specific cases under 
                section 203(b)(5)(E) of the Immigration and Nationality 
                Act, as added by section 2(b); or
                    (B) seeking non-case-specific information about the 
                regional center program described in such section.
            (2) Communication only through appropriate channels or 
        offices.--
                    (A) Announcement of appropriate channels of 
                communication.--Not later than 40 days after the date 
                of the enactment of this Act, the Director of U.S. 
                Citizenship and Immigration Services shall announce 
                that the only channels or offices by which petitioners, 
                applicants, and seekers of benefits under the immigrant 
                visa program described in section 203(b)(5)(E) of the 
                Immigration and Nationality Act, or such persons' 
                representatives, may communicate with the Department of 
                Homeland Security regarding specific cases under such 
                section, or non-case-specific information about the 
                regional center program applicable to certain cases 
                under such section, are through--
                            (i) the e-mail address or equivalent 
                        channel described in paragraph (1);
                            (ii) the U.S. Citizenship and Immigration 
                        Services National Customer Service Center, or 
                        any successor to that Center; or
                            (iii) the U.S. Citizenship and Immigration 
                        Services Office of Public Engagement, Immigrant 
                        Investor Program Office, Stakeholder Engagement 
                        Branch, or any successors to those Offices or 
                        Branch.
                    (B) Direction of incoming communications.--
                            (i) In general.--Employees of the 
                        Department of Homeland Security shall direct 
                        all persons making inquiries regarding the 
                        regional center program applicable to certain 
                        cases under section 203(b)(5)(E) of the 
                        Immigration and Nationality Act, as added by 
                        section 2(b) to the channels of communication 
                        or offices listed in subparagraph (A).
                            (ii) Savings provision.--Nothing in this 
                        subparagraph may be construed to prevent 
                        Department employees from directing inquiries 
                        to the U.S. Citizenship and Immigration 
                        Services Ombudsman.
                    (C) Log.--
                            (i) In general.--The Director of U.S. 
                        Citizenship and Immigration Services shall 
                        maintain a written or electronic log of--
                                    (I) all communications described in 
                                subparagraph (A), which shall reference 
                                the date, time, and subject of the 
                                communication, and the identity of the 
                                Department official, if any, to whom 
                                the inquiry was forwarded;
                                    (II) with respect to written 
                                communications described in subsection 
                                (c)(1), the date the communication was 
                                received, the identities of the sender 
                                and addressee, and the subject of the 
                                communication; and
                                    (III) with respect to oral 
                                communications described in subsection 
                                (c)(2), the date on which the 
                                communication occurred, the 
                                participants in the conversation or 
                                meeting, and the subject of the 
                                communication.
                            (ii) Transparency.--The log of 
                        communications described in clause (i) shall be 
                        made publicly available in accordance with 
                        section 552 of title 5, United States Code 
                        (commonly known as the ``Freedom of Information 
                        Act'').
            (3) Publication of information.--If, as a result of a 
        communication with an official of the Department of Homeland 
        Security, a person or entity inquiring about a specific case or 
        generally about the regional center program described in 
        section 203(b)(5)(E) of the Immigration and Nationality Act 
        received generally applicable and non-case specific information 
        about program requirements or administration that has not been 
        made publicly available by the Department, the Director of U.S. 
        Citizenship and Immigration Services, not later than 30 days 
        after the communication of such information to such person or 
        entity, shall publish such information on the U.S. Citizenship 
        and Immigration Services website as an update to the relevant 
        Frequently Asked Questions page or by some other comparable 
        mechanism.
    (f) Penalty.--
            (1) In general.--Any person who violates the prohibition on 
        preferential treatment under this section or intentionally 
        violates the reporting requirements under subsection (c) shall 
        be disciplined in accordance with paragraph (2).
            (2) Sanctions.--Not later than 90 days after the date of 
        the enactment of this Act, the Secretary of Homeland Security 
        shall establish a graduated set of sanctions based on the 
        severity of the violation referred to in paragraph (1), which 
        may include, in addition to any criminal or civil penalties 
        that may be imposed--
                    (A) written reprimand;
                    (B) suspension;
                    (C) demotion; or
                    (D) removal.
    (g) Rule of Construction.--Nothing in this section may be construed 
to modify any law, regulation, or policy regarding the handling or 
disclosure of classified information.
    (h) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
                                 <all>

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