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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3948 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 3948
To amend the Defense Production Act of 1950 to better address certain
transactions by foreign entities of concern, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 14, 2024
Ms. Stabenow (for herself and Mr. Peters) introduced the following
bill; which was read twice and referred to the Committee on Banking,
Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To amend the Defense Production Act of 1950 to better address certain
transactions by foreign entities of concern, 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 ``Protecting Against Foreign Adversary
Investments Act of 2024''.
SEC. 2. AUTHORITY OF COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED
STATES TO REVIEW CERTAIN REAL ESTATE PURCHASES BY FOREIGN
ENTITIES OF CONCERN.
(a) In General.--Section 721(a)(4) of the Defense Production Act of
1950 (50 U.S.C. 4565(a)(4)) is amended--
(1) in subparagraph (A)--
(A) in clause (i), by striking ``; and'' and
inserting a semicolon;
(B) in clause (ii), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following new clause:
``(iii) any transaction described in
subparagraph (B)(vi) proposed or pending on or
after the date of the enactment of this
clause.'';
(2) in subparagraph (B), by adding at the end the following
new clause:
``(vi) Subject to subparagraph (C), the
purchase or lease by, or a concession to, a
foreign entity of concern of private or public
real estate in the United States if--
``(I) the value or fair market
value of such purchase, lease, or
concession exceeds $1,000,000;
``(II) the real estate exceeds 100
acres;
``(III) the aggregate value or fair
market value of such purchase, lease,
or concession, in combination with the
value or fair market value of other
purchases or leases by, or concessions
to, such foreign entity during the 3-
year period preceding the date of such
purchase, lease, or concession, exceeds
$1,000,000;
``(IV) the aggregate acreage of
such purchase, lease, or concession, in
combination with the aggregate acreage
of other purchases or leases by, or
concessions to, such foreign entity
during the 3-year period preceding the
date of such purchase, lease, or
concession, exceeds 100 acres; or
``(V) the structure of such
purchase, lease, or concession is
designed or intended to evade or
circumvent the application of this
clause, as determined by the
Committee.''; and
(3) in subparagraph (C)(i), by striking ``subparagraph
(B)(ii)'' and inserting ``clause (ii) or (iv) of subparagraph
(B)''.
(b) Definition of Foreign Entities of Concern.--Section 721(a) of
the Defense Production Act of 1950 (50 U.S.C. 4565(a)) is amended--
(1) by redesignating paragraphs (7) through (13) as
paragraphs (8) through (14), respectively; and
(2) by inserting after paragraph (6) the following new
paragraph:
``(7) Foreign entity of concern.--The term `foreign entity
of concern' has the meaning given that term in section 9901 of
the William M. (Mac) Thornberry National Defense Authorization
Act for Fiscal Year 2021 (15 U.S.C. 4651).''.
(c) Factors To Be Considered.--Section 721(f) of the Defense
Production Act of 1950 (50 U.S.C. 4565(f)) is amended--
(1) by redesignating paragraphs (8) through (11) as
paragraphs (10) through (13), respectively; and
(2) by inserting after paragraph (7) the following new
paragraphs:
``(8) the potential effects of a proposed or pending
transaction on the national security of the United States as a
result of the impact of the transaction on the economic
security of the United States;
``(9) the factors described in section 3 of Executive Order
14083 (50 U.S.C. 4565 note; relating to consideration of
evolving national security risks by the Committee on Foreign
Investment in the United States), as in effect on January 1,
2024;''.
(d) Mandatory Declarations.--Section 721(b)(1)(C)(v)(IV) of the
Defense Production Act of 1950 (50 U.S.C. 4565(b)(1)(C)(v)(IV)) is
amended by adding at the end the following:
``(hh) Required
declarations for certain real
estate transactions.--
Notwithstanding item (dd), the
parties to a real estate
transaction described in
subsection (a)(4)(B)(vi) shall
submit a declaration described
in subclause (I) with respect
to the transaction.''.
(e) Reports Required.--
(1) Retroactive applicability.--Not later than 180 days
after the date of the enactment of this Act, the Secretary of
the Treasury, in coordination with Secretary of State and the
Secretary of Homeland Security, shall submit to Congress a
report that includes an assessment of the feasibility of
requiring retroactive mitigation measures or divestment of real
estate described in clause (vi) of section 721(a)(4)(B) of the
Defense Production Act of 1950, as added by this section, that
is owned by a foreign entity of concern (as defined in
paragraph (7) of section 721(a) of such Act, as amended by this
section) that presents a threat to national security (as
determined by the Committee on Foreign Investment in the United
States).
(2) Additional resources.--Not later than 180 after the
date of the enactment of this Act, the Secretary of the
Treasury and the Committee on Foreign Investment in the United
States shall submit to Congress a report describing any
statutory or regulatory changes necessary to carry out this
section and the amendments made by this section.
(f) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act and apply with respect
to any covered transaction the review or investigation of which is
initiated under section 721 of the Defense Production Act of 1950 on or
after such date of enactment.
SEC. 3. REPORT ON PUBLIC OR PRIVATE REAL ESTATE PURCHASING ACTIVITIES
IN THE UNITED STATES BY FOREIGN ENTITIES OF CONCERN.
(a) Reports.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, and annually thereafter, the
Director, in coordination with the Secretary of Homeland
Security and the head of any other appropriate Federal agency,
shall submit to the appropriate congressional committees a
report containing a description of the national security risks
of the purchase, ownership, or lease of public or private real
estate by a foreign entity of concern.
(2) Contents.--Each report submitted under paragraph (1)
shall include, with respect to the year covered by the report,
the following:
(A) A list of all real estate in the United States
described in clause (vi) of section 721(a)(4)(B) of the
Defense Production Act of 1950, as added by this Act.
(B) An analysis of the potential use of real estate
for industrial espionage or intellectual property
transfer by a foreign entity of concern.
(C) An analysis of the potential use by a foreign
entity of concern of real estate in close proximity to
manufacturing facilities, water sources, and other
critical infrastructure to monitor, interrupt, or
disrupt activities critical to the national and
economic security of the United States.
(D) An analysis of other threats to the economic
security or national security of the United States due
to the ownership, including ownership in the aggregate,
of real estate by a foreign entity of concern.
(3) Unclassified form.--Each report submitted under this
subsection shall--
(A) be submitted in unclassified form, but may
include a classified annex; and
(B) be consistent with the protection of
intelligence sources and methods.
(4) Publicly available.--Upon submitting a report under
paragraph (1), the Director shall make publicly available the
information included in such report under paragraph (2)(A).
(b) Definitions.--In this section:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Energy and Commerce, the
Committee on Homeland Security, and the Permanent
Select Committee on Intelligence of the House of
Representatives; and
(B) the Committee on Environment and Public Works,
the Committee on Homeland Security and Governmental
Affairs, and the Select Committee on Intelligence of
the Senate.
(2) Foreign entity of concern.--The term ``foreign entity
of concern'' has the meaning given that term in section 9901 of
the William M. (Mac) Thornberry National Defense Authorization
Act for Fiscal Year 2021 (15 U.S.C. 4651).
(3) Director.--The term ``Director'' means the Director of
National Intelligence.
(4) State.--The term ``State'' has the meaning given such
term in section 101 of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (42 U.S.C.
9601).
SEC. 4. BEST PRACTICES FOR STATE AND LOCAL OFFICIALS RELATING TO
POTENTIAL TRANSACTIONS WITH FOREIGN ENTITIES OF CONCERN.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the Director of National Intelligence, in
coordination with the Secretary of Homeland Security, the Secretary of
Commerce, and the heads of any other Federal department or agencies
determined relevant by the Director of National Intelligence, shall
develop and make publicly available best practices for use by State and
local officials with respect to engaging in a potential transaction
with a foreign entity of concern. Such best practices shall including
an identification of--
(1) common risks associated with engaging a foreign entity
of concern with respect to such a potential transaction; and
(2) Federal resources available to assist such officials in
determining the specific national security risks, if any, of
such a potential transaction.
(b) Foreign Entity of Concern Defined.--In this section, the term
``foreign entity of concern'' has the meaning given that term in
section 9901 of the William M. (Mac) Thornberry National Defense
Authorization Act for Fiscal Year 2021 (15 U.S.C. 4651).
<all>
Introduced in Senate
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
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