Cage the Paper Tiger Act of 2020

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6916 Introduced in House (IH)]

<DOC>






116th CONGRESS
  2d Session
                                H. R. 6916

    To prohibit the listing of certain firms on national securities 
 exchanges, to provide for expensing of costs directly connected with 
 moving manufacturing from China to the United States, to establish a 
    counterintelligence vetting task force, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 15, 2020

  Mr. Walker introduced the following bill; which was referred to the 
 Committee on Homeland Security, and in addition to the Committees on 
Ways and Means, and Financial Services, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
    To prohibit the listing of certain firms on national securities 
 exchanges, to provide for expensing of costs directly connected with 
 moving manufacturing from China to the United States, to establish a 
    counterintelligence vetting task force, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Cage the Paper Tiger Act of 2020''.

SEC. 2. PROHIBITION AGAINST THE LISTING OF CERTAIN FIRMS ON NATIONAL 
              SECURITIES EXCHANGES.

    (a) In General.--Section 6(b) of the Securities Exchange Act of 
1934 (15 U.S.C. 78f(b)) is amended by adding at the end the following:
            ``(11)(A) The rules of the exchange prohibit the initial 
        listing, after the date of enactment of this paragraph, of any 
        security of an issuer if the registration statement filed with 
        the Commission for such security includes an audit report 
        prepared by a covered foreign public accounting firm.
            ``(B) Nothing in subparagraph (A) may be construed to 
        prevent an exchange from listing a security on the exchange on 
        or after the date of enactment of this paragraph if that 
        security was listed on the exchange or a national securities 
        exchange before the date of enactment of this paragraph.
            ``(C) In this paragraph--
                    ``(i) the term `audit report' has the meaning given 
                the term in section 2(a) of the Sarbanes-Oxley Act of 
                2002 (15 U.S.C. 7201(a));
                    ``(ii) the term `covered foreign public accounting 
                firm' means a foreign public accounting firm that the 
                Public Company Accounting Oversight Board is unable to 
                inspect or investigate under the Sarbanes-Oxley Act of 
                2002 (15 U.S.C. 7201 et seq.) because of a position 
                taken by an authority outside of the United States; and
                    ``(iii) the term `foreign public accounting firm' 
                has the meaning given the term in section 106(g) of the 
                Sarbanes-Oxley Act of 2002 (15 U.S.C. 7216(g)).''.
    (b) Rules.--
            (1) Proposals.--Not later than 90 days after the date of 
        enactment of this Act, each national securities exchange shall 
        file with the Commission any proposed change to the rules of 
        the exchange that is required as a result of the amendments 
        made by this section.
            (2) Adoption.--Not later than 1 year after the date of 
        enactment of this Act, each national securities exchange shall 
        have each proposed change described in paragraph (1) approved 
        by the Commission.

SEC. 3. EXPENSING OF COSTS DIRECTLY CONNECTED WITH MOVING MANUFACTURING 
              FROM CHINA TO THE UNITED STATES.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
179E the following new section:

``SEC. 179F. ELECTION TO EXPENSE CERTAIN ASSETS DIRECTLY CONNECTED TO 
              MOVING MANUFACTURING FROM CHINA TO THE UNITED STATES.

    ``(a) In General.--A specified taxpayer may elect to treat amounts 
paid or incurred for repatriation property as an expense which is not 
chargeable to capital account. Any cost so treated shall be allowed as 
a deduction for the taxable year in which such repatriation property is 
placed in service.
    ``(b) Specified Taxpayer.--For purposes of this section, the term 
`specified taxpayer' means any taxpayer engaged in the trade or 
business of manufacturing any product if--
            ``(1) as of the date of the enactment of this section, such 
        taxpayer manufactured such product in China, and
            ``(2) as of the date which is 3 years after the date that 
        the repatriation property is placed in service--
                    ``(A) such taxpayer does not manufacture such 
                product in China, and
                    ``(B) the quantity of such product manufactured in 
                the United States by such taxpayer has increased 
                (relative to such quantity determined as of the date of 
                the enactment of this section) by an amount not less 
                than the quantity of such product manufactured in China 
                as of the date of the enactment of this section.
    ``(c) Repatriation Property.--For purposes of this section, the 
term `repatriation property' means any property (including any real 
property) if--
            ``(1) such property is used by the taxpayer in the United 
        States to manufacture the product referred to in subsection 
        (b),
            ``(2) the acquisition of such property by the taxpayer is 
        directly connected to replacing the productive capacity lost by 
        the taxpayer by reason of ceasing manufacturing of such product 
        in China (as described in subsection (b)(2)(A)), and
            ``(3) such property is of a character which is subject to 
        the allowance for depreciation provided in section 167.
    ``(d) Application of Certain Rules.--Rules similar to the rules of 
subsection (c), and paragraphs (4) and (10) of subsection (d), of 
section 179 shall apply for purposes of this section.''.
    (b) Clerical Amendment.--The table of sections for part VI of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 179E the following new item:

``Sec. 179F. Election to expense certain assets directly connected to 
                            moving manufacturing from China to the 
                            United States.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act, in taxable years ending after such date.

SEC. 4. DEPARTMENT OF HOMELAND SECURITY COUNTERINTELLIGENCE VETTING 
              TASK FORCE.

    (a) Establishment.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Homeland Security shall assign 
personnel of the Department of Homeland Security to participate in a 
counterintelligence vetting task force to make recommendations to 
improve counterintelligence vetting for appropriate departmental 
programs.
    (b) Personnel.--In carrying out subsection (a), the Secretary of 
Homeland Security may assign personnel from any component of the 
Department of Homeland Security the Secretary determines necessary to 
participate in the task force established pursuant to such subsection.
    (c) Coordination.--In carrying out subsection (a), the Secretary of 
Homeland Security may request participation in the task force 
established pursuant to such subsection from other appropriate Federal 
agencies.
    (d) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Homeland Security shall submit 
to the Committee on Homeland Security of the House of Representatives 
and the Committee on Homeland Security and Governmental Affairs of the 
Senate a report on the recommendations made by the task force 
established pursuant to subsection (a).

SEC. 5. COUNTERINTELLIGENCE TRAINING AND VETTING.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, in carrying out the program administered 
pursuant to section 442(a)(4) of the Homeland Security Act (6 U.S.C. 
252(a)(4)), the Secretary of Homeland Security shall develop a 
counterintelligence awareness training program and require 
participation in such program from appropriate faculty, as determined 
by the Secretary in consultation with the Homeland Security Academic 
Advisory Council (established pursuant to section 871 of the Homeland 
Security Act of 2002 (6 U.S.C. 451)), from approved institutions of 
higher education, other approved educational institutions, and 
designated exchange visitor programs in the United States.
    (b) Program Enhancements.--Not later than one year after the date 
of enactment of this Act, the Secretary of Homeland Security shall make 
the following enhancements to the program administered pursuant to 
section 442(a)(4) of the Homeland Security Act (6 U.S.C. 252(a)(4)):
            (1) Identify degrees and fields of study determined to be 
        sensitive for homeland security and counterintelligence 
        purposes.
            (2) Update the information to be collected to include any 
        changes to the degree programs, if applicable, and fields of 
        study.
            (3) Make any other enhancements determined appropriate by 
        the Secretary to improve counterintelligence vetting 
        capabilities.
    (c) Consultation.--In carrying out the identification required 
pursuant to subsection (b)(1), the Secretary of Homeland Security shall 
consult with the Secretary of State to ensure the degrees and field of 
study determined to be sensitive for homeland security and 
counterintelligence purposes referred to in such subsection are 
aligned, to the greatest extent practicable, between the Department of 
Homeland Security and the Department of State.
    (d) Definitions.--
            (1) Approved institution of higher education.--The term 
        ``approved institution of higher education'' has the meaning 
        given such term in section 641(h) of the Illegal Immigration 
        Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 
        1372).
            (2) Designated exchange visitor program.--The term 
        ``designated exchange visitor program'' has the meaning given 
        such term in section 641(h) of the Illegal Immigration Reform 
        and Immigrant Responsibility Act of 1996 (8 U.S.C. 1372).
            (3) Other approved educational institution.--The term 
        ``other approved educational institution'' has the meaning 
        given such term in section 641(h) of the Illegal Immigration 
        Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 
        1372).

SEC. 6. HOMELAND SECURITY ACADEMIC ADVISORY COUNCIL.

    (a) In General.--Not later than 30 days after the date of the 
enactment of this Act, the Secretary of Homeland Security shall convene 
a meeting of the Homeland Security Academic Advisory Council to seek 
advice and recommendations from the Council on the counterintelligence 
awareness training and appropriate faculty designated to receive such 
training required under section 5.
    (b) Notification.--Not later than September 1, 2020, the Secretary 
of Homeland Security shall notify the Committee on Homeland Security of 
the House of Representatives and the Committee on Homeland Security and 
Governmental Affairs of the Senate if the Secretary determines to not 
extend the existence of the Homeland Security Academic Advisory 
Council.
                                 <all>