Hong Kong Autonomy Act
This bill imposes sanctions on foreign individuals and entities that materially contribute to China's failure to preserve Hong Kong's autonomy.
Hong Kong is part of China but has a largely separate legal and economic system with protections for civil rights such as freedom of speech. This arrangement is enshrined in (1) the Joint Declaration, a 1984 treaty pertaining to the United Kingdom's transfer of Hong Kong's sovereignty to China; and (2) the Basic Law, Hong Kong's constitutional document.
The Department of State shall report annually to Congress information about (1) foreign individuals and entities that materially contributed to China's failure to comply with the Joint Declaration or the Basic Law; and (2) foreign financial institutions that knowingly conducted a significant transaction with such identified individuals and entities. An individual, entity, or financial institution may be excluded from this report for various reasons, such as to protect an intelligence source.
The President shall impose property-blocking sanctions on an individual or entity named in a report, and visa-blocking sanctions on a named individual. The President shall impose various sanctions on a financial institution named in a report, such as prohibiting the institution from receiving loans from a U.S. financial institution.
The President may waive or terminate the imposition of sanctions under this bill. Congress may override such a waiver or termination by passing a joint resolution of disapproval.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3798 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
2d Session
S. 3798
To impose sanctions with respect to foreign persons involved in the
erosion of certain obligations of China with respect to Hong Kong, and
for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 21, 2020
Mr. Toomey (for himself, Mr. Van Hollen, Mr. Tillis, and Mr.
Blumenthal) introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To impose sanctions with respect to foreign persons involved in the
erosion of certain obligations of China with respect to Hong Kong, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Hong Kong Autonomy
Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Findings.
Sec. 4. Sense of Congress regarding Hong Kong.
Sec. 5. Identification of foreign persons involved in the erosion of
the obligations of China under the Joint
Declaration or the Basic Law and foreign
financial institutions that conduct
significant transactions with those
persons.
Sec. 6. Sanctions with respect to foreign persons that contravene the
obligations of China under the Joint
Declaration or the Basic Law.
Sec. 7. Sanctions with respect to foreign financial institutions that
do business with foreign persons that
contravene the obligations of China under
the Joint Declaration or the Basic Law.
Sec. 8. Waiver, termination, and congressional review process.
Sec. 9. Rule of construction.
SEC. 2. DEFINITIONS.
In this Act:
(1) Alien; national; national of the united states.--The
terms ``alien'', ``national'', and ``national of the United
States'' have the meanings given those terms in section 101 of
the Immigration and Nationality Act (8 U.S.C. 1101).
(2) Appropriate congressional committees and leadership.--
The term ``appropriate congressional committees and
leadership'' means--
(A) the Committee on Armed Services, the Committee
on Banking, Housing, and Urban Affairs, the Committee
on Foreign Relations, the Committee on Homeland
Security and Governmental Affairs, the Committee on the
Judiciary, the Select Committee on Intelligence, and
the majority leader and the minority leader of the
Senate; and
(B) the Committee on Armed Services, the Committee
on Financial Services, the Committee on Foreign
Affairs, the Committee on Homeland Security, the
Committee on the Judiciary, the Permanent Select
Committee on Intelligence, and the Speaker and the
minority leader of the House of Representatives.
(3) Basic law.--The term ``Basic Law'' means the Basic Law
of the Hong Kong Special Administrative Region of the People's
Republic of China.
(4) China.--The term ``China'' means the People's Republic
of China.
(5) Entity.--The term ``entity'' means a partnership, joint
venture, association, corporation, organization, network,
group, or subgroup, or any other form of business
collaboration.
(6) Financial institution.--The term ``financial
institution'' means a financial institution specified in
section 5312(a)(2) of title 31, United States Code.
(7) Foreign financial institution.--
(A) In general.--Except as provided in subparagraph
(B), the term ``foreign financial institution'' means
any foreign entity that is engaged in the business of
accepting deposits, making, granting, transferring,
holding, or brokering loans or credits, or purchasing
or selling foreign exchange, securities, commodity
futures or options, or procuring purchasers and sellers
thereof, as principal or agent, including--
(i) a depository institution;
(ii) a bank;
(iii) a savings bank;
(iv) a money service business;
(v) a trust company;
(vi) a securities broker or dealer;
(vii) a commodity futures and options
broker or dealer;
(viii) a forward contract or foreign
exchange merchant;
(ix) a securities or commodities exchange;
(x) a clearing corporation;
(xi) an investment company;
(xii) an employee benefit plan;
(xiii) a dealer in precious metals, stones,
or jewels; and
(xiv) any holding company, affiliate, or
subsidiary of an entity specified in any of
clauses (i) through (xiii).
(B) Exceptions.--The term ``foreign financial
institution'' does not include--
(i) an international financial institution,
as defined in section 1701(c) of the
International Financial Institutions Act (22
U.S.C. 262r(c));
(ii) the International Fund for
Agricultural Development;
(iii) the North American Development Bank;
or
(iv) any other international financial
institution specified by the Office of Foreign
Assets Control of the Department of the
Treasury.
(8) Foreign person.--The term ``foreign person''--
(A) means--
(i) any citizen or national of a foreign
country; or
(ii) any entity not organized under the
laws of the United States or a jurisdiction
within the United States; and
(B) does not include the government of a foreign
country.
(9) Hong kong.--The term ``Hong Kong'' means the Hong Kong
Special Administrative Region of the People's Republic of
China.
(10) Joint declaration.--The term ``Joint Declaration''
means the Joint Declaration of the Government of the United
Kingdom of Great Britain and Northern Ireland and the
Government of the People's Republic of China on the Question of
Hong Kong, done at Beijing on December 19, 1984.
(11) Knowingly.--The term ``knowingly'', with respect to
conduct, a circumstance, or a result, means that a person has
actual knowledge, or should have known, of the conduct, the
circumstance, or the result.
(12) Person.--The term ``person'' means an individual or
entity.
(13) Significant transaction.--The term ``significant
transaction'' means a transaction determined by the Secretary
of the Treasury to be significant on the basis of the following
factors--
(A) the size, number, and frequency of the
transaction;
(B) the nature of the transaction;
(C) whether the transaction is part of a pattern of
conduct;
(D) the nexus between the transaction and a person
subject to sanctions under this Act; and
(E) the impact of the transaction on the objectives
of this Act.
(14) United states person.--The term ``United States
person'' means--
(A) any citizen or national of the United States;
(B) any alien lawfully admitted for permanent
residence in the United States;
(C) any entity organized under the laws of the
United States or any jurisdiction within the United
States (including a foreign branch of such an entity);
or
(D) any person located in the United States.
SEC. 3. FINDINGS.
Congress makes the following findings:
(1) The Joint Declaration and the Basic Law clarify certain
obligations and promises that the Government of China has made
with respect to the future of Hong Kong.
(2) The obligations of the Government of China under the
Joint Declaration were codified in a legally-binding treaty,
signed by the Government of the United Kingdom of Great Britain
and Northern Ireland and registered with the United Nations.
(3) The obligations of the Government of China under the
Basic Law originate from the Joint Declaration, were passed
into the domestic law of China by the National People's
Congress, and are widely considered by citizens of Hong Kong as
part of the de facto legal constitution of Hong Kong.
(4) Foremost among the obligations of the Government of
China to Hong Kong is the promise that, pursuant to Paragraph
3b of the Joint Declaration, ``the Hong Kong Special
Administrative Region will enjoy a high degree of autonomy,
except in foreign and defence affairs which are the
responsibilities of the Central People's Government''.
(5) The obligation specified in Paragraph 3b of the Joint
Declaration is referenced, reinforced, and extrapolated on in
several portions of the Basic Law, including Articles 2, 12,
13, 14, and 22.
(6) Article 22 of the Basic Law establishes that ``No
department of the Central People's Government and no province,
autonomous region, or municipality directly under the Central
Government may interfere in the affairs which the Hong Kong
Special Administrative Region administers on its own in
accordance with this Law.''.
(7) The Joint Declaration and the Basic Law make clear that
additional obligations shall be undertaken by China to ensure
the ``high degree of autonomy'' of Hong Kong.
(8) Paragraph 3c of the Joint Declaration states, as
reinforced by Articles 2, 16, 17, 18, 19, and 22 of the Basic
Law, that Hong Kong ``will be vested with executive,
legislative and independent judicial power, including that of
final adjudication''.
(9) On multiple occasions, the Government of China has
undertaken actions that have contravened the letter or intent
of the obligation described in paragraph (8) of this section,
including the following:
(A) In 1999, the Standing Committee of the National
People's Congress overruled a decision by the Hong Kong
Court of Final Appeal on the right of abode.
(B) On multiple occasions, the Government of Hong
Kong, at the advice of the Government of China, is
suspected to have not allowed persons entry into Hong
Kong allegedly because of their support for democracy
and human rights in Hong Kong and China.
(C) The Liaison Office of China in Hong Kong has,
despite restrictions on interference in the affairs of
Hong Kong as detailed in Article 22 of the Basic Law--
(i) openly expressed support for candidates
in Hong Kong for Chief Executive and
Legislative Council;
(ii) expressed views on various policies
for the Government of Hong Kong and other
internal matters relating to Hong Kong; and
(iii) on April 17, 2020, asserted that both
the Liaison Office of China in Hong Kong and
the Hong Kong and Macau Affairs Office of the
State Council ``have the right to exercise
supervision . . . on affairs regarding Hong
Kong and the mainland, in order to ensure
correct implementation of the Basic Law''.
(D) The National People's Congress has passed laws
requiring Hong Kong to pass laws banning disrespectful
treatment of the national flag and national anthem of
China.
(E) The State Council of China released a white
paper on June 10, 2014, that stressed the
``comprehensive jurisdiction'' of the Government of
China over Hong Kong and indicated that Hong Kong must
be governed by ``patriots''.
(F) The Government of China has directed operatives
to kidnap and bring to the mainland, or is otherwise
responsible for the kidnapping of, residents of Hong
Kong, including businessman Xiao Jianhua and bookseller
Gui Minhai.
(G) The Government of Hong Kong, acting with the
support of the Government of China, introduced an
extradition bill that would have permitted the
Government of China to request and enforce extradition
requests for any individual present in Hong Kong,
regardless of the legality of the request or the degree
to which it compromised the judicial independence of
Hong Kong.
(H) The spokesman for the Standing Committee of the
National People's Congress said, ``Whether Hong Kong's
laws are consistent with the Basic Law can only be
judged and decided by the National People's Congress
Standing Committee. No other authority has the right to
make judgments and decisions.''.
(10) Paragraph 3e of the Joint Declaration states, as
reinforced by Article 5 of the Basic Law, that the ``current
social and economic systems in Hong Kong will remain unchanged,
as so will the life-style.''.
(11) On multiple occasions, the Government of China has
undertaken actions that have contravened the letter or intent
of the obligation described in paragraph (10) of this section,
including the following:
(A) In 2002, the Government of China pressured the
Government of Hong Kong to introduce ``patriotic''
curriculum in primary and secondary schools.
(B) The governments of China and Hong Kong proposed
the prohibition of discussion of Hong Kong independence
and self-determination in primary and secondary
schools, which infringes on freedom of speech.
(C) The Government of Hong Kong mandated that
Mandarin, and not the native language of Cantonese, be
the language of instruction in Hong Kong schools.
(D) The governments of China and Hong Kong agreed
to a daily quota of mainland immigrants to Hong Kong,
which is widely believed by citizens of Hong Kong to be
part of an effort to ``mainlandize'' Hong Kong.
(12) Paragraph 3e of the Joint Declaration states, as
reinforced by Articles 4, 26, 27, 28, 29, 30, 31, 32 33, 34,
and 39 of the Basic Law, that the ``rights and freedoms,
including those of person, of speech, of the press, of
assembly, of association, of travel, of movement, of
correspondence, of strike, of choice of occupation, of academic
research and of religious belief will be ensured by law'' in
Hong Kong.
(13) On multiple occasions, the Government of China has
undertaken actions that have contravened the letter or intent
of the obligation described in paragraph (12) of this section,
including the following:
(A) On February 26, 2003, the Government of Hong
Kong introduced a national security bill that would
have placed restrictions on freedom of speech and other
protected rights.
(B) The Liaison Office of China in Hong Kong has
pressured businesses in Hong Kong not to advertise in
newspapers and magazines critical of the governments of
China and Hong Kong.
(C) The Hong Kong Police Force selectively blocked
demonstrations and protests expressing opposition to
the governments of China and Hong Kong or the policies
of those governments.
(D) The Government of Hong Kong refused to renew
work visa for a foreign journalist, allegedly for
hosting a speaker from the banned Hong Kong National
Party.
(E) The Justice Department of Hong Kong selectively
prosecuted cases against leaders of the Umbrella
Movement, while failing to prosecute police officers
accused of using excessive force during the protests in
2014.
(F) On April 18, 2020, the Hong Kong Police Force
arrested 14 high-profile democracy activists and
campaigners for their role in organizing a protest
march that took place on August 18, 2019, in which
almost 2,000,000 people rallied against a proposed
extradition bill.
(14) Articles 45 and 68 of the Basic Law assert that the
selection of Chief Executive and all members of the Legislative
Council of Hong Kong should be by ``universal suffrage.''.
(15) On multiple occasions, the Government of China has
undertaken actions that have contravened the letter or intent
of the obligation described in paragraph (14) of this section,
including the following:
(A) In 2004, the National People's Congress created
new, antidemocratic procedures restricting the adoption
of universal suffrage for the election of the Chief
Executive of Hong Kong.
(B) The decision by the National People's Congress
on December 29, 2007, which ruled out universal
suffrage in 2012 elections and set restrictions on when
and if universal suffrage will be implemented.
(C) The decision by the National People's Congress
on August 31, 2014, which placed limits on the
nomination process for the Chief Executive of Hong Kong
as a condition for adoption of universal suffrage.
(D) On November 7, 2016, the National People's
Congress interpreted Article 104 of the Basic Law in
such a way to disqualify 6 elected members of the
Legislative Council.
(E) In 2018, the Government of Hong Kong banned the
Hong Kong National Party and blocked the candidacy of
pro-democracy candidates.
(16) The ways in which the Government of China, at times
with the support of a subservient Government of Hong Kong, has
acted in contravention of its obligations under the Joint
Declaration and the Basic Law, as set forth in this section,
are deeply concerning to the people of Hong Kong, the United
States, and members of the international community who support
the autonomy of Hong Kong.
SEC. 4. SENSE OF CONGRESS REGARDING HONG KONG.
It is the sense of Congress that--
(1) the United States continues to uphold the principles
and policy established in the United States-Hong Kong Policy
Act of 1992 (22 U.S.C. 5701 et seq.) and the Hong Kong Human
Rights and Democracy Act of 2019 (Public Law 116-76; 22 U.S.C.
5701 note), which remain consistent with China's obligations
under the Joint Declaration and certain promulgated objectives
under the Basic Law, including that--
(A) as set forth in section 101(1) of the United
States-Hong Kong Policy Act of 1992 (22 U.S.C.
5711(1)), ``The United States should play an active
role, before, on, and after July 1, 1997, in
maintaining Hong Kong's confidence and prosperity, Hong
Kong's role as an international financial center, and
the mutually beneficial ties between the people of the
United States and the people of Hong Kong.''; and
(B) as set forth in section 2(5) of the United
States-Hong Kong Policy Act of 1992 (22 U.S.C.
5701(5)), ``Support for democratization is a
fundamental principle of United States foreign policy.
As such, it naturally applies to United States policy
toward Hong Kong. This will remain equally true after
June 30, 1997.'';
(2) although the United States recognizes that, under the
Joint Declaration, the Government of China ``resumed the
exercise of sovereignty over Hong Kong with effect on 1 July
1997'', the United States supports the autonomy of Hong Kong in
furtherance of the United States-Hong Kong Policy Act of 1992
and the Hong Kong Human Rights and Democracy Act of 2019 and
advances the desire of the people of Hong Kong to continue the
``one country, two systems'' regime, in addition to other
obligations promulgated by China under the Joint Declaration
and the Basic Law;
(3) in order to support the benefits and protections that
Hong Kong has been afforded by the Government of China under
the Joint Declaration and the Basic Law, the United States
should establish a clear and unambiguous set of penalties with
respect to foreign persons determined by the Secretary of State
to be involved in the contravention of the obligations of China
under the Joint Declaration and the Basic Law and the financial
institutions transacting with those foreign persons;
(4) the Secretary of State should provide an unclassified
assessment of the reason for imposition of certain economic
penalties on entities, so as to permit a clear path for the
removal of economic penalties if the sanctioned behavior is
reversed and verified by the Secretary of State;
(5) relevant Federal agencies should establish a
multilateral sanctions regime with respect to foreign persons
involved in the contravention of the obligations of China under
the Joint Declaration and the Basic Law; and
(6) in addition to the penalties on foreign persons, and
financial institutions transacting with those foreign persons,
for the contravention of the obligations of China under the
Joint Declaration and the Basic Law, the United States should
take steps, in a time of crisis, to assist permanent residents
of Hong Kong who are persecuted or fear persecution as a result
of the contravention by China of its obligations under the
Joint Declaration and the Basic Law to become eligible to
obtain lawful entry into the United States.
SEC. 5. IDENTIFICATION OF FOREIGN PERSONS INVOLVED IN THE EROSION OF
THE OBLIGATIONS OF CHINA UNDER THE JOINT DECLARATION OR
THE BASIC LAW AND FOREIGN FINANCIAL INSTITUTIONS THAT
CONDUCT SIGNIFICANT TRANSACTIONS WITH THOSE PERSONS.
(a) In General.--Not later than 90 days after the date of the
enactment of this Act, and annually thereafter, if the Secretary of
State determines that a foreign person is materially contributing to,
has materially contributed to, or attempts to materially contribute to
the failure of the Government of China to meet its obligations under
the Joint Declaration or the Basic Law, the Secretary of State shall
submit to the appropriate congressional committees and leadership a
report that includes--
(1) an identification of the foreign person;
(2) a clear explanation for why the foreign person was
identified and a description of the activity that resulted in
the identification; and
(3) an identification of any foreign financial institution
that knowingly conducts a significant transactions with the
foreign person.
(b) Exclusion of Certain Information.--
(1) Intelligence.--The Secretary of State shall not
disclose the identity of a person in a report submitted under
subsection (a) if the Director of National Intelligence
determines that such disclosure could compromise an
intelligence operation, activity, source, or method of the
United States.
(2) Law enforcement.--The Secretary of State shall not
disclose the identity of a person in a report submitted under
subsection (a) if the Attorney General, in coordination, as
appropriate, with the Director of the Federal Bureau of
Investigation, the head of any other appropriate Federal law
enforcement agency, and the Secretary of the Treasury,
determines that such disclosure could reasonably be expected--
(A) to compromise the identity of a confidential
source, including a State, local, or foreign agency or
authority or any private institution that furnished
information on a confidential basis;
(B) to jeopardize the integrity or success of an
ongoing criminal investigation or prosecution;
(C) to endanger the life or physical safety of any
person; or
(D) to cause substantial harm to physical property.
(3) Notification required.--If the Director of National
Intelligence makes a determination under paragraph (1) or the
Attorney General makes a determination under paragraph (2), the
Director or the Attorney General, as the case may be, shall
notify the appropriate congressional committees and leadership
of the determination and the reasons for the determination.
(c) Exclusion of Foreign Persons and Foreign Financial
Institutions.--
(1) Foreign persons.--The President may exclude a foreign
person from the report under subsection (a) if the material
contribution (as described in subsection (d)) that merited
inclusion in that report--
(A) does not have a significant and lasting
negative effect that contravenes the obligations of
China under the Joint Declaration and the Basic Law;
(B) is not likely to be repeated in the future; and
(C) has been reversed or otherwise mitigated
through positive countermeasures taken by that foreign
person.
(2) Foreign financial institutions.--The President may
exclude a foreign financial institution from the report under
subsection (a) if the significant transaction or significant
transactions of the foreign financial institution that merited
inclusion in that report--
(A) does not have a significant and lasting
negative effect that contravenes the obligations of
China under the Joint Declaration and the Basic Law;
(B) is not likely to be repeated in the future; and
(C) has been reversed or otherwise mitigated
through positive countermeasures taken by that foreign
financial institution.
(d) Form of Report.--Each report under subsection (a) shall be
submitted in unclassified form but may include a classified annex.
(e) Timing of Report.--
(1) In general.--Each report under subsection (a), to the
extent practicable, shall be submitted with the annual report
under section 301 of the United States-Hong Kong Policy Act of
1992 (22 U.S.C. 5731).
(2) Rule of construction.--Nothing in this subsection shall
be construed to terminate the requirement to submit the report
under subsection (a) upon the termination of the requirement to
submit the annual report under section 301 of the United
States-Hong Kong Policy Act of 1992 (22 U.S.C. 5731).
(f) Material Contributions Related to Obligations of China
Described.--For purposes of this section, a foreign person materially
contributes to the failure of the Government of China to meet its
obligations under the Joint Declaration or the Basic Law if the
person--
(1) took action that resulted in the inability of the
people of Hong Kong--
(A) to enjoy freedom of assembly, speech, press, or
independent rule of law; or
(B) to participate in democratic outcomes; or
(2) otherwise took action that reduces the high degree of
autonomy of Hong Kong.
SEC. 6. SANCTIONS WITH RESPECT TO FOREIGN PERSONS THAT CONTRAVENE THE
OBLIGATIONS OF CHINA UNDER THE JOINT DECLARATION OR THE
BASIC LAW.
(a) Imposition of Sanctions.--
(1) In general.--On and after the date on which a foreign
person is included in a report under section 5(a)(1), the
President may impose sanctions described in subsection (b) with
respect to that foreign person.
(2) Mandatory sanctions.--On and after the date on which a
foreign person is included in 2 reports submitted under section
5(a)(1), the President shall impose sanctions described in
subsection (b) with respect to that foreign person.
(b) Sanctions Described.--The sanctions described in this
subsection with respect to a foreign person are the following:
(1) Property transactions.--The President may, pursuant to
such regulations as the President may prescribe, prohibit any
person from--
(A) acquiring, holding, withholding, using,
transferring, withdrawing, transporting, or exporting
any property that is subject to the jurisdiction of the
United States and with respect to which the foreign
person has any interest;
(B) dealing in or exercising any right, power, or
privilege with respect to such property; or
(C) conducting any transaction involving such
property.
(2) Exclusion from the united states and revocation of visa
or other documentation.--In the case of a foreign person who is
an individual, the President may direct the Secretary of State
to deny a visa to, and the Secretary of Homeland Security to
exclude from the United States, the foreign person, subject to
regulatory exceptions to permit the United States to comply
with the Agreement regarding the Headquarters of the United
Nations, signed at Lake Success June 26, 1947, and entered into
force November 21, 1947, between the United Nations and the
United States, or other applicable international obligations.
SEC. 7. SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL INSTITUTIONS THAT
DO BUSINESS WITH FOREIGN PERSONS THAT CONTRAVENE THE
OBLIGATIONS OF CHINA UNDER THE JOINT DECLARATION OR THE
BASIC LAW.
(a) Imposition of Sanctions.--With respect to any financial
institution included in a report under section 5(a)(3)--
(1) not later than one year after the submittal of the
report, the President shall impose not fewer than five of the
sanctions described in subsection (b); and
(2) not later than 2 years after the submittal of the
report, the President shall impose each of the sanctions
described in subsection (b).
(b) Sanctions Described.--The sanctions that may imposed with
respect to a foreign financial institution included in the report under
section 5(a)(3) are the following:
(1) Loans from united states financial institutions.--The
United States Government may prohibit any United States
financial institution from making loans or providing credits to
the foreign financial institution.
(2) Prohibition on designation as primary dealer.--Neither
the Board of Governors of the Federal Reserve System nor the
Federal Reserve Bank of New York may designate, or permit the
continuation of any prior designation of, the foreign financial
institution as a primary dealer in United States Government
debt instruments.
(3) Prohibition on service as a repository of government
funds.--The foreign financial institution may not serve as
agent of the United States Government or serve as repository
for United States Government funds.
(4) Foreign exchange.--The President may, pursuant to such
regulations as the President may prescribe, prohibit any
transactions in foreign exchange that are subject to the
jurisdiction of the United States and in which the foreign
financial institution has any interest.
(5) Banking transactions.--The President may, pursuant to
such regulations as the President may prescribe, prohibit any
transfers of credit or payments between financial institutions
or by, through, or to any financial institution, to the extent
that such transfers or payments are subject to the jurisdiction
of the United States and involve any interest of the foreign
financial institution.
(6) Property transactions.--The President may, pursuant to
such regulations as the President may prescribe, prohibit any
person from--
(A) acquiring, holding, withholding, using,
transferring, withdrawing, transporting, importing, or
exporting any property that is subject to the
jurisdiction of the United States and with respect to
which the foreign financial institution has any
interest;
(B) dealing in or exercising any right, power, or
privilege with respect to such property; or
(C) conducting any transaction involving such
property.
(7) Restriction on exports.--The President may restrict or
prohibit exports of goods, technology, or services, directly or
indirectly, from the United States to the foreign financial
institution.
(8) Ban on investment in equity or debt.--The President
may, pursuant to such regulations or guidelines as the
President may prescribe, prohibit any United States person from
investing in or purchasing significant amounts of equity or
debt instruments of the foreign financial institution.
(9) Exclusion of corporate officers.--The President may
direct the Secretary of State to deny a visa to, and the
Secretary of Homeland Security to exclude from the United
States, any alien that the President determines is a corporate
officer or principal of, or a shareholder with a controlling
interest in, the foreign financial institution.
(10) Sanctions on principal executive officers.--The
President may impose on the principal executive officer or
officers of the foreign financial institution, or on
individuals performing similar functions and with similar
authorities as such officer or officers, any of the sanctions
described in paragraphs (1) through (8) that are applicable.
(c) Timing of Sanctions.--The President may impose sanctions
required under subsection (a) with respect to a financial institution
included in a report under section 5(a)(3) beginning on the day on
which the financial institution is included in that report.
SEC. 8. WAIVER, TERMINATION, AND CONGRESSIONAL REVIEW PROCESS.
(a) National Security Waiver.--Unless a disapproval resolution is
enacted under subsection (d), the President may waive the application
of sanctions under section 6 or 7 with respect to a foreign person or
foreign financial institution if the President--
(1) determines that the waiver is in the national security
interest of the United States; and
(2) submits to the appropriate congressional committees and
leadership a report on the determination and the reasons for
the determination.
(b) Termination of Sanctions and Removal From Report.--Unless a
disapproval resolution is enacted under subsection (d), the President
may terminate the application of sanctions under section 6 or 7 with
respect to a foreign person or foreign financial institution and remove
that foreign person or foreign financial institution from the report
required under section 5(a) if the Secretary of State determines that
the actions taken by the foreign person or foreign financial
institution that led to the imposition of sanctions--
(1) do not have a significant and lasting negative effect
that contravenes the obligations of China under the Joint
Declaration and the Basic Law;
(2) are not likely to be repeated in the future; and
(3) have been reversed or otherwise mitigated through
positive countermeasures taken by that foreign person or
foreign financial institution.
(c) Termination of Act.--
(1) Report.--
(A) In general.--Not later than July 1, 2046, the
President, in consultation with the Secretary of State,
the Secretary of the Treasury, and the heads of such
other Federal agencies as the President considers
appropriate, shall submit to Congress a report
evaluating the implementation of this Act and sanctions
imposed pursuant to this Act.
(B) Elements.--The President shall include in the
report submitted under paragraph (1) an assessment of
whether this Act and the sanctions imposed pursuant to
this Act should be terminated.
(2) Termination.--This Act and the sanctions imposed
pursuant to this Act shall remain in effect unless a
termination resolution is enacted under subsection (d) after
July 1, 2047.
(d) Congressional Review.--
(1) Resolutions.--
(A) Disapproval resolution.--In this section, the
term ``disapproval resolution'' means only a joint
resolution of either House of Congress--
(i) the title of which is as follows: ``A
joint resolution disapproving the waiver or
termination of sanctions with respect to a
foreign person that contravenes the obligations
of China with respect to Hong Kong or a foreign
financial institution that provides services to
that person.''; and
(ii) the sole matter after the resolving
clause of which is the following: ``Congress
disapproves of the action under section 8 of
the Hong Kong Autonomy Act relating to the
application of sanctions imposed with respect
to a foreign person that contravenes the
obligations of China with respect to Hong Kong,
or a foreign financial institution that
provides services to that person, on _______
relating to ________.'', with the first blank
space being filled with the appropriate date
and the second blank space being filled with a
short description of the proposed action.
(B) Termination resolution.--In this section, the
term ``termination resolution'' means only a joint
resolution of either House of Congress--
(i) the title of which is as follows: ``A
joint resolution terminating sanctions with
respect to foreign persons that contravene the
obligations of China with respect to Hong Kong
and foreign financial institutions that provide
services to those persons.''; and
(ii) the sole matter after the resolving
clause of which is the following: ``The Hong
Kong Autonomy Act and any sanctions imposed
pursuant to that Act shall terminate on
____.'', with the blank space being filled with
the termination date.
(C) Covered resolution.--In this subsection, the
term ``covered resolution'' means a disapproval
resolution or a termination resolution.
(2) Introduction.--A covered resolution may be introduced--
(A) in the House of Representatives, by the
majority leader or the minority leader; and
(B) in the Senate, by the majority leader (or the
majority leader's designee) or the minority leader (or
the minority leader's designee).
(3) Floor consideration in house of representatives.--If a
committee of the House of Representatives to which a covered
resolution has been referred has not reported the resolution
within 10 calendar days after the date of referral, that
committee shall be discharged from further consideration of the
resolution.
(4) Consideration in the senate.--
(A) Committee referral.--
(i) Disapproval resolution.--A disapproval
resolution introduced in the Senate shall be--
(I) referred to the Committee on
Banking, Housing, and Urban Affairs if
the resolution relates to an action
that is not intended to significantly
alter United States foreign policy with
regard to China; and
(II) referred to the Committee on
Foreign Relations if the resolution
relates to an action that is intended
to significantly alter United States
foreign policy with regard to China.
(ii) Termination resolution.--A termination
resolution introduced in the Senate shall be
referred to the Committee on Banking, Housing,
and Urban Affairs and the Committee on Foreign
Relations.
(B) Reporting and discharge.--If a committee to
which a covered resolution was referred has not
reported the resolution within 10 calendar days after
the date of referral of the resolution, that committee
shall be discharged from further consideration of the
resolution and the resolution shall be placed on the
appropriate calendar.
(C) Proceeding to consideration.--Notwithstanding
Rule XXII of the Standing Rules of the Senate, it is in
order at any time after the Committee on Banking,
Housing, and Urban Affairs or the Committee on Foreign
Relations, as the case may be, reports a covered
resolution to the Senate or has been discharged from
consideration of such a resolution (even though a
previous motion to the same effect has been disagreed
to) to move to proceed to the consideration of the
resolution, and all points of order against the
resolution (and against consideration of the
resolution) are waived. The motion to proceed is not
debatable. The motion is not subject to a motion to
postpone. A motion to reconsider the vote by which the
motion is agreed to or disagreed to shall not be in
order.
(D) Rulings of the chair on procedure.--Appeals
from the decisions of the Chair relating to the
application of the rules of the Senate, as the case may
be, to the procedure relating to a covered resolution
shall be decided without debate.
(E) Consideration of veto messages.--Debate in the
Senate of any veto message with respect to a covered
resolution, including all debatable motions and appeals
in connection with the resolution, shall be limited to
10 hours, to be equally divided between, and controlled
by, the majority leader and the minority leader or
their designees.
(5) Rules relating to senate and house of
representatives.--
(A) Treatment of senate resolution in house.--In
the House of Representatives, the following procedures
shall apply to a covered resolution received from the
Senate (unless the House has already passed a
resolution relating to the same proposed action):
(i) The resolution shall be referred to the
appropriate committees.
(ii) If a committee to which a resolution
has been referred has not reported the
resolution within 2 calendar days after the
date of referral, that committee shall be
discharged from further consideration of the
resolution.
(iii) Beginning on the third legislative
day after each committee to which a resolution
has been referred reports the resolution to the
House or has been discharged from further
consideration thereof, it shall be in order to
move to proceed to consider the resolution in
the House. All points of order against the
motion are waived. Such a motion shall not be
in order after the House has disposed of a
motion to proceed on the resolution. The
previous question shall be considered as
ordered on the motion to its adoption without
intervening motion. The motion shall not be
debatable. A motion to reconsider the vote by
which the motion is disposed of shall not be in
order.
(iv) The resolution shall be considered as
read. All points of order against the
resolution and against its consideration are
waived. The previous question shall be
considered as ordered on the resolution to
final passage without intervening motion except
2 hours of debate equally divided and
controlled by the sponsor of the resolution (or
a designee) and an opponent. A motion to
reconsider the vote on passage of the
resolution shall not be in order.
(B) Treatment of house resolution in senate.--
(i) Received before passage of senate
resolution.--If, before the passage by the
Senate of a covered resolution, the Senate
receives an identical resolution from the House
of Representatives, the following procedures
shall apply:
(I) That resolution shall not be
referred to a committee.
(II) With respect to that
resolution--
(aa) the procedure in the
Senate shall be the same as if
no resolution had been received
from the House of
Representatives; but
(bb) the vote on passage
shall be on the resolution from
the House of Representatives.
(ii) Received after passage of senate
resolution.--If, following passage of a covered
resolution in the Senate, the Senate receives
an identical resolution from the House of
Representatives, that resolution shall be
placed on the appropriate Senate calendar.
(iii) No senate companion.--If a covered
resolution is received from the House of
Representatives, and no companion resolution
has been introduced in the Senate, the Senate
procedures under this subsection shall apply to
the resolution from the House of
Representatives.
(C) Application to revenue measures.--The
provisions of this paragraph shall not apply in the
House of Representatives to a covered resolution that
is a revenue measure.
(6) Rules of house of representatives and senate.--This
subsection is enacted by Congress--
(A) as an exercise of the rulemaking power of the
Senate and the House of Representatives, respectively,
and as such is deemed a part of the rules of each
House, respectively, and supersedes other rules only to
the extent that it is inconsistent with such rules; and
(B) with full recognition of the constitutional
right of either House to change the rules (so far as
relating to the procedure of that House) at any time,
in the same manner, and to the same extent as in the
case of any other rule of that House.
SEC. 9. RULE OF CONSTRUCTION.
Nothing in this Act shall be construed as an authorization of
military force against China.
<all>
Introduced in Senate
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 116-320.
Senate Committee on Banking, Housing, and Urban Affairs discharged by Unanimous Consent.
Senate Committee on Banking, Housing, and Urban Affairs discharged by Unanimous Consent.
Measure laid before Senate by unanimous consent. (consideration: CR S3285-3289)
Passed/agreed to in Senate: Passed Senate with an amendment by Voice Vote.(text of amendment in the nature of a substitute: CR S3285-3289)
Passed Senate with an amendment by Voice Vote. (text of amendment in the nature of a substitute: CR S3285-3289)
Message on Senate action sent to the House.
Received in the House.
Held at the desk.
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