[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2772 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2772

 To establish an Office of National Security within the Securities and 
   Exchange Commission, provide for the monitoring of the extent of 
  foreign involvement in United States securities markets, financial 
        institutions, and pension funds, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 29, 1997

 Mr. Solomon introduced the following bill; which was referred to the 
      Committee on Commerce, and in addition to the Committees on 
International Relations, Banking and Financial Services, and Education 
 and the Workforce, 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 establish an Office of National Security within the Securities and 
   Exchange Commission, provide for the monitoring of the extent of 
  foreign involvement in United States securities markets, financial 
        institutions, and pension funds, 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; DEFINITIONS.

    (a) Short Title.--This Act may be cited as the ``U.S. Market 
Security Act of 1997''.
    (b) Definitions.--For purposes of this Act--
            (1) the term ``Commission'' means the Securities and 
        Exchange Commission;
            (2) the term ``Director'' means the director of the Office 
        of National Security established under this Act;
            (3) the term ``Federal banking agency'' has the same 
        meaning as in section 3 of the Federal Deposit Insurance Act;
            (4) the term ``foreign bank'' has the same meaning as in 
        section 1 of the International Banking Act of 1978;
            (5) the term ``Office'' means the Office of National 
        Security established under this Act;
            (6) the term ``securities laws'' has the same meaning as in 
        section 3 of the Securities Exchange Act of 1934; and
            (7) the term ``securities offering'' has the meaning given 
        that term by the Commission.

SEC. 2. ESTABLISHMENT OF OFFICE.

    There is established within the Securities and Exchange Commission 
the Office of National Security.

SEC. 3. DIRECTOR.

    The Office shall be headed by a Director, selected by the 
Commission, in consultation with the appropriate committees of 
Congress.

SEC. 4. FUNCTIONS.

    (a) Securities Activities of Foreign or Foreign Controlled 
Entities.--The functions of the Office shall be to review and monitor 
securities offerings by foreign governments and by any person or entity 
that the Office has reason to believe is an agent for or is controlled, 
in whole or in part, directly or indirectly, by a foreign government or 
any political subdivision of a foreign government.
    (b) Reports to Congress.--
            (1) In general.--The Office shall submit a quarterly report 
        to the Committees on Banking, Housing, and Urban Affairs and 
        Foreign Relations of the Senate and the Select Committee on 
        Intelligence of the Senate, and the Committees on Banking and 
        Financial Services and International Relations of the House of 
        Representatives and the Permanent Select Committee on 
        Intelligence of the House of Representatives regarding the 
        amount of securities offerings by foreign governments and other 
        persons and entities described in subsection (a) that have 
        occurred during the preceding quarter, or are planned to be 
        offered in the next occurring quarter.
            (2) Accessibility of information.--The Office may, by rule, 
        regulation, or order, take such action as may be necessary to 
        collect information necessary to complete the reports required 
        under paragraph (1).
    (c) Notification to Chairman.--The Director shall promptly notify 
the Chairman of the Commission of any information that the Director has 
reason to believe indicates a violation or possible violation of the 
securities laws by any person or entity described in subsection (a).

SEC. 5. ANNUAL REPORT BY FEDERAL BANKING AGENCIES.

    (a) In General.--Each Federal banking agency shall prepare and 
submit to the appropriate committees of Congress an annual report 
regarding the number of foreign banks operating in the United States 
that the agency has reason to believe is controlled, in whole or in 
part, directly or indirectly, by a foreign government or any political 
subdivision of a foreign government.
    (b) Accessibility of Information.--The Federal banking agencies 
may, by rule, regulation, or order, take such action as may be 
necessary to collect information necessary to complete the reports 
required under subsection (a).

SEC. 6. ANNUAL REPORT BY PENSION BENEFIT GUARANTY CORPORATION.

    (a) In General.--The Pension Benefit Guaranty Corporation shall 
prepare and submit to the appropriate committees of Congress an annual 
report regarding the extent of United States pension fund assets that 
represent interests in any person, entity, or foreign government 
described in section 4(a).
    (b) Accessibility to Information.--The Pension Benefit Guaranty 
Corporation may, by rule, regulation, or order, take such action as may 
be necessary to collect information necessary to complete the reports 
required under subsection (a).

SEC. 7. INTERNATIONAL NEGOTIATIONS.

    The Secretary of State and the Secretary of the Treasury are 
directed to enter into negotiations to conclude agreements with other 
nations that are allied with the United States, including Japan and 
members of the European Union, to institute in those nations reporting 
requirements similar to those imposed by this Act. Within one year from 
the date of enactment, the State Department and the Treasury Department 
shall report to Congress on the progress of negotiations required 
pursuant to this section.
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