[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3471 Introduced in House (IH)]

<DOC>






115th CONGRESS
  1st Session
                                H. R. 3471

 To amend section 203(b)(5) of the Immigration and Nationality Act to 
  implement new reforms, and to reauthorize the EB-5 Regional Center 
Program, in order to promote and reform foreign capital investment and 
    job creation in communities in the United States, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 27, 2017

 Mr. Fitzpatrick (for himself and Mr. Evans) introduced the following 
       bill; which was referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
 To amend section 203(b)(5) of the Immigration and Nationality Act to 
  implement new reforms, and to reauthorize the EB-5 Regional Center 
Program, in order to promote and reform foreign capital investment and 
    job creation in communities in the United States, 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 ``American Job 
Creation and Investment Into Public Works Reform Act of 2017''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. New EB-5 general provisions.
Sec. 3. Reauthorization and reform of the regional center program.
Sec. 4. Other EB-5 visa reforms.
Sec. 5. Conditional permanent resident status for alien investors, 
                            spouses, and children.
Sec. 6. Procedure for granting immigrant status.
Sec. 7. Timely processing.
Sec. 8. Transparency.
Sec. 9. Reports.

SEC. 2. NEW EB-5 GENERAL PROVISIONS.

    (a) In General.--Section 203(b)(5) of the Immigration and 
Nationality Act (8 U.S.C. 1153(b)(5)) is amended by inserting after 
subparagraph (C) the following:
                    ``(D) Source of funds.--
                            ``(i) In general.--An alien investor 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 investor's petition 
                        under this paragraph contain--
                                    ``(I) business and tax records, or 
                                similar records, including, but not 
                                limited to--
                                            ``(aa) foreign business 
                                        registration records;
                                            ``(bb) to the extent such 
                                        tax returns have been prepared, 
                                        corporate or partnership tax 
                                        returns (or tax returns of any 
                                        other entity in any form filed 
                                        in any country or subdivision 
                                        of such country), 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 
                                        investor; and
                                            ``(cc) evidence identifying 
                                        any other source of capital or 
                                        administrative fees;
                                    ``(II) evidence related to monetary 
                                judgments against the alien investor, 
                                including certified copies of any 
                                judgments, and evidence of all pending 
                                governmental civil or criminal actions, 
                                governmental administrative 
                                proceedings, and any private civil 
                                actions (pending or otherwise) 
                                involving possible monetary judgments 
                                against the alien investor 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 alien investor--
                                            ``(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 (B) 
                        only if such funds were gifted to the alien 
                        investor by the alien investor's spouse, 
                        parent, son, or daughter (but not children (as 
                        defined in section 101(b)(1))), 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 investor, the Secretary 
                        shall require the alien investor'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 (B) only if such capital is--
                                    ``(I) secured by assets owned by 
                                the alien investor; and
                                    ``(II) issued by a banking or 
                                lending institution that is properly 
                                chartered or licensed under the laws of 
                                any State, territory, country, or 
                                applicable jurisdiction, and that is 
                                not sanctioned or restricted, 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.
                    ``(E) Threats to the national interest.--
                            ``(i) Denial or revocation.--The Secretary 
                        of Homeland Security shall deny or revoke the 
                        approval of a petition, application, or benefit 
                        described in this paragraph, including the 
                        documents described in clause (ii), if the 
                        Secretary determines that the approval of such 
                        petition, application, or benefit is contrary 
                        to the national interest of the United States 
                        for reasons relating to threats to public 
                        safety or national security.
                            ``(ii) Documents.--The documents described 
                        in this clause are--
                                    ``(I) a certification, designation, 
                                or amendment to the designation, of a 
                                regional center;
                                    ``(II) a petition seeking 
                                classification of an alien as an alien 
                                investor under this paragraph;
                                    ``(III) a petition to remove 
                                conditions under section 216A; or
                                    ``(IV) an application for approval 
                                of a business plan in a new commercial 
                                enterprise under subparagraph (I).
                            ``(iii) Debarment.--If a regional center, 
                        new commercial enterprise, or job-creating 
                        entity has its designation or participation in 
                        the program under this paragraph terminated for 
                        reasons relating to public safety or national 
                        security, any person associated with such 
                        regional center, new commercial enterprise, or 
                        job-creating entity, including an alien 
                        investor, shall be permanently barred from 
                        future participation in the program under this 
                        paragraph if the Secretary of Homeland 
                        Security, in the Secretary's discretion, 
                        determines, by a preponderance of the evidence, 
                        that such person was a knowing participant in 
                        the conduct that led to the termination.
                            ``(iv) Notice.--If the Secretary of 
                        Homeland Security determines that the approval 
                        of a petition, application, or benefit 
                        described in this paragraph should be denied or 
                        revoked pursuant to clause (i), the Secretary 
                        shall--
                                    ``(I) notify the relevant 
                                individual, regional center, or 
                                commercial entity of such 
                                determination; and
                                    ``(II) deny or revoke such 
                                petition, application, or benefit or 
                                terminate the permanent resident status 
                                of the alien (and the alien spouse and 
                                alien children of such immigrant), as 
                                provided in clause (i) as of the date 
                                of such determination.
                            ``(v) Judicial review.--Notwithstanding any 
                        other provision of law (statutory or 
                        nonstatutory), including section 2241 of title 
                        28, United States Code, or any other habeas 
                        corpus provision, and sections 1361 and 1651 of 
                        such title, no court shall have jurisdiction to 
                        review a denial or revocation under this 
                        subparagraph. Nothing in this clause may be 
                        construed as precluding review of 
                        constitutional claims or questions of law 
                        raised upon a petition for review filed with an 
                        appropriate court of appeals in accordance with 
                        section 242.
                    ``(F) Fraud, misrepresentation, and criminal 
                misuse.--
                            ``(i) Denial or revocation.--The Secretary 
                        of Homeland Security shall deny or revoke the 
                        approval of a petition, application, or benefit 
                        described in this paragraph, including the 
                        documents described in subparagraph (E)(ii), if 
                        the Secretary determines that such petition, 
                        application, or benefit was predicated on or 
                        involved fraud, deceit, intentional material 
                        misrepresentation, or criminal misuse.
                            ``(ii) Debarment.--If a regional center, 
                        new commercial enterprise, or job-creating 
                        entity has its designation or participation in 
                        the program under subparagraph (H) terminated 
                        for reasons relating to fraud, intentional 
                        material misrepresentation, or criminal misuse, 
                        any person associated with such regional 
                        center, new commercial enterprise, or job-
                        creating entity, including an alien investor, 
                        shall be permanently barred from future 
                        participation in the program under subparagraph 
                        (H) if the Secretary of Homeland Security 
                        determines, by a preponderance of the evidence, 
                        that such person was a knowing participant in 
                        the conduct that led to the termination.
                            ``(iii) Notice.--If the Secretary of 
                        Homeland Security determines that the approval 
                        of a petition, application, or benefit 
                        described in this paragraph should be denied or 
                        revoked pursuant to clause (i), the Secretary 
                        shall--
                                    ``(I) notify the relevant 
                                individual, regional center, or 
                                commercial entity of such 
                                determination; and
                                    ``(II) deny or revoke such 
                                petition, application, or benefit or 
                                terminate the permanent resident status 
                                of the alien (and the alien spouse and 
                                alien children of such immigrant) as 
                                provided in clause (i) as of the date 
                                of such determination.
                    ``(G) Administrative appellate review.--
                            ``(i) In general.--The Director of U.S. 
                        Citizenship and Immigration Services shall 
                        provide an opportunity for an administrative 
                        appellate review by the Administrative Appeals 
                        Office of U.S. Citizenship and Immigration 
                        Services of any determination made under this 
                        paragraph, including--
                                    ``(I) an application for regional 
                                center designation or regional center 
                                amendment;
                                    ``(II) an application for approval 
                                of a business plan under subparagraph 
                                (I);
                                    ``(III) a petition by an alien 
                                investor for status as an immigrant 
                                under this paragraph;
                                    ``(IV) the termination or 
                                suspension of any benefit accorded 
                                under this paragraph; and
                                    ``(V) any sanction imposed by the 
                                Secretary of Homeland Security pursuant 
                                to this paragraph.
                            ``(ii) Judicial review.--Subject to section 
                        242(a)(2), and notwithstanding any other 
                        provision of law (statutory or nonstatutory), 
                        including section 2241 of title 28, United 
                        States Code, or any other habeas corpus 
                        provision, and sections 1361 and 1651 of such 
                        title, no court shall have jurisdiction to 
                        review a determination under this paragraph 
                        until the regional center, its associated 
                        entities, or the alien investor has exhausted 
                        all administrative appeals.''.
    (b) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendment made by subsection (a) shall be effective at any time 
        after the date of the enactment of this Act, as determined by 
        the Secretary, and shall be effective not later than 90 days 
        after such date of enactment.
            (2) Exceptions.--Subparagraph (D) of section 203(b)(5) of 
        the Immigration and Nationality Act (8 U.S.C. 1153(b)(5)), as 
        inserted by subsection (a), shall not apply to a petition 
        that--
                    (A) was filed by an alien investor under such 
                section 203(b)(5) prior to June 1, 2015;
                    (B) was filed by an alien investor under such 
                section 203(b)(5) during the period beginning on June 
                1, 2015, and ending on the date of the enactment of 
                this Act if such beneficiary is investing in the same 
                commercial enterprise concerning the same economic 
                activity as contained in an exemplar filed prior to 
                June 1, 2015, or approved by the Secretary of Homeland 
                Security at any time prior to the date of enactment of 
                this Act, unless the Secretary determines that such 
                approval or filing was based on fraud, 
                misrepresentation in the record of proceeding, or is 
                legally deficient; or
                    (C) is filed under section 216A of such Act (8 
                U.S.C. 1186b) if the underlying petition filed under 
                section 203(b)(5) of such Act was filed prior to June 
                1, 2015, or approved before the date of the enactment 
                of this Act.

SEC. 3. REAUTHORIZATION AND REFORM OF THE 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)), as amended by section 2, is 
further amended by inserting after subparagraph (G) the following:
                    ``(H) Regional center program.--
                            ``(i) In general.--Visas under this 
                        paragraph shall be made available through 
                        September 30, 2022, to qualified immigrants 
                        (and the eligible spouses and children of such 
                        immigrants) pooling their investments with one 
                        or more additional qualified immigrants 
                        participating in a program implementing this 
                        paragraph that promotes economic growth, 
                        including prospective job creation and 
                        increased domestic capital investment, through 
                        regional centers operating within defined 
                        geographic areas and designated by the 
                        Secretary of Homeland Security based upon 
                        proposals for concentrating pooled investment 
                        within such areas.
                            ``(ii) Processing.--In processing petitions 
                        under section 204(a)(1)(H) for classification 
                        pursuant to this subparagraph, the Secretary of 
                        Homeland Security--
                                    ``(I) may process petitions in a 
                                manner and order established by the 
                                Secretary; and
                                    ``(II) shall deem such petitions to 
                                include records previously filed with 
                                the Secretary pursuant to subparagraph 
                                (I) if the alien petitioner certifies 
                                that such records are incorporated by 
                                reference into the alien's petition.
                            ``(iii) Establishment of a regional 
                        center.--The manager of a prospective regional 
                        center shall file a proposal, as provided in 
                        clause (i), with the Secretary of Homeland 
                        Security requesting that the Secretary 
                        designate the regional center for purposes of 
                        this subparagraph. A regional center shall 
                        operate within a defined and limited geographic 
                        area, which shall be described in the proposal 
                        and shall be consistent with the purpose of 
                        concentrating pooled investment within such 
                        area. The proposal shall demonstrate that the 
                        pooled investment will have a significant 
                        economic impact on such area, and shall 
                        include--
                                    ``(I) reasonable predictions, 
                                supported by economically and 
                                statistically valid forecasting tools, 
                                concerning--
                                            ``(aa) the amount of 
                                        investment that will be pooled;
                                            ``(bb) the kinds of new 
                                        commercial enterprises that 
                                        will receive such investments;
                                            ``(cc) details of the jobs 
                                        that will be created directly 
                                        or indirectly as a result of 
                                        such investments; and
                                            ``(dd) other positive 
                                        economic effects such 
                                        investments will have; and
                                    ``(II) a description of the 
                                policies and procedures in place 
                                reasonably designed to monitor new 
                                commercial enterprises and any 
                                affiliated job-creating entity to 
                                ensure compliance with--
                                            ``(aa) all applicable laws, 
                                        regulations, and Executive 
                                        orders of the United States, 
                                        including immigration laws and 
                                        securities laws; and
                                            ``(bb) all securities laws 
                                        of each State in which 
                                        securities offerings will be 
                                        conducted, investment advice 
                                        will be rendered, or the 
                                        offerors or offerees reside.
                            ``(iv) Indirect job creation.--The 
                        Secretary of Homeland Security shall permit 
                        aliens seeking admission under this 
                        subparagraph to satisfy only up to 90 percent 
                        of the requirement under subparagraph (A)(ii) 
                        with jobs that are estimated to be created 
                        indirectly through investment in accordance 
                        with this subparagraph. An employee of the new 
                        commercial enterprise or job-creating entity 
                        may be considered to hold a job that has been 
                        directly created.
                            ``(v) Compliance.--
                                    ``(I) In general.--In determining 
                                compliance with subparagraph (A)(ii), 
                                the Secretary of Homeland Security 
                                shall permit aliens seeking admission 
                                under this subparagraph to rely on 
                                economically and statistically valid 
                                methodologies for determining the 
                                number of jobs created by the program, 
                                including--
                                            ``(aa) jobs estimated to 
                                        have been created directly, 
                                        which may be verified using 
                                        such methodologies, except that 
                                        the Secretary may request 
                                        additional evidence to verify 
                                        that the directly created jobs 
                                        satisfy the requirements under 
                                        subparagraph (A)(ii); and
                                            ``(bb) 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.
                                    ``(II) Job and investment 
                                requirements.--
                                            ``(aa) Relocated jobs.--In 
                                        determining compliance with the 
                                        job creation requirement under 
                                        subparagraph (A)(ii), the 
                                        Secretary may include jobs 
                                        estimated to be created under a 
                                        methodology whereby jobs are 
                                        attributable to prospective 
                                        tenants occupying commercial 
                                        real estate created or improved 
                                        by capital investments, but 
                                        only if the number of such jobs 
                                        estimated to be created has 
                                        been determined by an 
                                        economically and statistically 
                                        valid methodology and such jobs 
                                        are not existing jobs that have 
                                        been relocated.
                                            ``(bb) Publicly available 
                                        bonds.--Alien investor capital 
                                        may not be utilized, by a new 
                                        commercial enterprise or 
                                        otherwise, to purchase 
                                        municipal bonds or any other 
                                        bonds, if such bonds are 
                                        available to the general 
                                        public, either as part of a 
                                        primary offering or from a 
                                        secondary market.
                                            ``(cc) Construction 
                                        activity jobs.--The length of 
                                        full-time construction activity 
                                        jobs that last shorter than 24 
                                        months may be aggregated to 
                                        satisfy the employment creation 
                                        requirement under subparagraph 
                                        (A)(ii) for alien investors 
                                        participating in the program 
                                        described in this subparagraph. 
                                        A construction activity job may 
                                        be considered a job that is 
                                        created directly.
                            ``(vi) Amendments.--The Secretary of 
                        Homeland Security shall--
                                    ``(I) require a regional center to 
                                give advance notice to, and obtain 
                                approval from, the Secretary of 
                                significant proposed changes to its 
                                organizational structure, ownership, or 
                                administration, including the sale of 
                                such center or other arrangements in 
                                which individuals not previously 
                                subject to the requirements under 
                                subparagraph (K) become involved with 
                                the regional center, before any such 
                                proposed changes may take effect unless 
                                exigent circumstances are present in 
                                which case the regional center shall 
                                provide notice to the Secretary within 
                                5 business days of such change;
                                    ``(II) 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 Web site 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 (K); and
                                    ``(III) notwithstanding the 
                                pendency of a request for approval of 
                                any amendment that has been filed 
                                pursuant to subclause (I), adjudicate 
                                business plans under subparagraph (I) 
                                and petitions under section 
                                204(a)(1)(H).
                    ``(I) Business plans for regional center 
                investments.--
                            ``(i) Application for approval of an 
                        investment in a new commercial enterprise.--A 
                        regional center shall file an application with 
                        the Secretary of Homeland Security for each 
                        particular investment offering in or through an 
                        associated new commercial enterprise before any 
                        alien files a petition for classification under 
                        this paragraph by reason of investment in that 
                        offering, 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) any documents filed with 
                                the Securities and Exchange Commission 
                                under the Securities Act of 1933 (15 
                                U.S.C. 77a et seq.) or with the 
                                securities regulator of any State, as 
                                required by law;
                                    ``(IV) any investment and offering 
                                documents, including subscription, 
                                investment, partnership, and operating 
                                agreements, private placement 
                                memoranda, term sheets, biographies for 
                                management, officers, directors, and 
                                any individual with similar 
                                responsibilities, the description of 
                                the business plan to be provided to 
                                potential alien investors, and 
                                marketing materials used or drafts 
                                prepared for use in connection with the 
                                offering, which shall contain 
                                references, as appropriate, to any--
                                            ``(aa) investment risks 
                                        associated with the new 
                                        commercial enterprise and the 
                                        job-creating entity;
                                            ``(bb) conflicts of 
                                        interest that currently exist 
                                        or may arise among the regional 
                                        center, new commercial 
                                        enterprise, job-creating 
                                        entity, or the principals or 
                                        attorneys of the aforementioned 
                                        entities;
                                            ``(cc) pending material 
                                        litigation or bankruptcy, or 
                                        adverse judgments or bankruptcy 
                                        orders issued during the most 
                                        recent 10-year period, in the 
                                        United States or abroad, 
                                        affecting the regional center, 
                                        the new commercial enterprise, 
                                        any affiliated job-creating 
                                        entity, or any other enterprise 
                                        in which any principal of the 
                                        aforementioned entities held 
                                        majority ownership at the time; 
                                        and
                                            ``(dd)(AA) fees, ongoing 
                                        interest, or other compensation 
                                        that has been paid, or will be 
                                        paid, to any person in 
                                        connection with the investment, 
                                        including agents, finders, or 
                                        broker dealers involved in the 
                                        offering, and of which the 
                                        regional center or new 
                                        commercial enterprise has 
                                        knowledge;
                                            ``(BB) a description of the 
                                        services performed, or which 
                                        will be performed, by such 
                                        person to entitle the person to 
                                        such fees, interest, or 
                                        compensation; and
                                            ``(CC) the name and contact 
                                        information of any such person;
                                    ``(V) a description of the policies 
                                and procedures, such as those related 
                                to internal and external due diligence, 
                                reasonably designed to cause the 
                                regional center, new commercial 
                                enterprise, and any affiliated job-
                                creating entity, their agents, 
                                employees, advisors, and attorneys, and 
                                any persons in active concert or 
                                participation with the regional center, 
                                new commercial enterprise, or any 
                                affiliated job-creating entity to 
                                comply, as applicable, with the 
                                securities laws of the United States 
                                and the laws of the applicable States 
                                in connection with the offer, purchase, 
                                or sale of their securities;
                                    ``(VI) a certification from the 
                                regional center and any issuer of 
                                securities that is affiliated with the 
                                regional center that their respective 
                                agents, employees, advisors, and 
                                attorneys, and any parties associated 
                                with the regional center or the issuer 
                                of securities that is affiliated with 
                                the regional center, are in compliance 
                                with the securities laws of the United 
                                States and the laws of the applicable 
                                States in connection with the offer, 
                                purchase, or sale of its securities, to 
                                the best of the certifier's knowledge, 
                                after a due diligence investigation; 
                                and
                                    ``(VII) documentation demonstrating 
                                that the regional center consulted with 
                                a local economic development agency or 
                                municipality regarding the capital 
                                investment project, which shall 
                                address--
                                            ``(aa) the number and type 
                                        of jobs anticipated to be 
                                        created; and
                                            ``(bb) whether the project 
                                        is consistent with the agency 
                                        or municipality's plan for 
                                        economic development in the 
                                        region.
                            ``(ii) Effect of approval of a business 
                        plan for an investment in a regional center's 
                        new 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 capital investment project through a 
                        new commercial enterprise, and of petitions by 
                        the same immigrants filed under section 216A, 
                        except in the case of fraud, misrepresentation, 
                        criminal misuse, a threat to public safety or 
                        national security, a material change that 
                        affects the program eligibility of the approved 
                        economic model, other evidence affecting 
                        program eligibility that was not disclosed by 
                        the applicant during the adjudication process, 
                        or a material mistake of law or fact in the 
                        prior adjudication.
                            ``(iii) Site visits.--The Secretary shall--
                                    ``(I) perform site visits to 
                                regional centers; and
                                    ``(II) perform at least 1 site 
                                visit to each new commercial enterprise 
                                and job-creating entity, which--
                                            ``(aa) shall include a 
                                        review for evidence of direct 
                                        job creation in accordance with 
                                        subparagraph (H)(v)(I); and
                                            ``(bb) may occur at any 
                                        time during the period between 
                                        the filing of an application 
                                        for approval of an investment 
                                        in a new commercial enterprise 
                                        under this subparagraph and the 
                                        adjudication of the first 
                                        petition for removal of 
                                        conditions on lawful permanent 
                                        resident status under section 
                                        216A(c) filed by an alien 
                                        investing in such investment.
                    ``(J) Regional center annual statements.--
                            ``(i) In general.--Each regional center 
                        designated under subparagraph (H) shall 
                        annually submit a statement to the Director of 
                        United States Citizenship and Immigration 
                        Services (referred to in this subparagraph as 
                        the `Director'), in a manner prescribed by the 
                        Secretary of Homeland Security, which shall 
                        include--
                                    ``(I) a certification stating that, 
                                to the best of the certifier's 
                                knowledge, after a due diligence 
                                investigation, the regional center, the 
                                new commercial enterprise, and any 
                                affiliated job-creating entity, are in 
                                compliance with clauses (i) and (ii) of 
                                subparagraph (K);
                                    ``(II) a certification described in 
                                subparagraph (L)(ii)(II);
                                    ``(III) a certification stating 
                                that, to the best of the certifier's 
                                knowledge, after a due diligence 
                                investigation, the regional center is 
                                in compliance with subparagraph 
                                (N)(iii);
                                    ``(IV) a description of any pending 
                                material litigation or bankruptcy 
                                proceedings, or litigation or 
                                bankruptcy proceedings resolved during 
                                the preceding fiscal year, involving 
                                the regional center, new commercial 
                                enterprise, or any affiliated job-
                                creating entity;
                                    ``(V) an accounting of all alien 
                                investor capital invested pursuant to 
                                subparagraph (H) in the regional 
                                center, new commercial enterprise, or 
                                job-creating entity;
                                    ``(VI) for each new commercial 
                                enterprise associated with the regional 
                                center--
                                            ``(aa) an accounting of the 
                                        aggregate capital invested in 
                                        the new commercial enterprise 
                                        and job-creating entity by 
                                        alien investors 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 filed business 
                                        plan or plans;
                                            ``(cc) evidence that 100 
                                        percent of such capital has 
                                        actually been 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) to the best of the 
                                        regional center's knowledge, 
                                        for all fees, including 
                                        administrative fees, loan 
                                        monitoring fees, loan 
                                        management fees, commissions 
                                        and similar transaction-based 
                                        compensation, collected from 
                                        alien investors by the regional 
                                        center, new commercial 
                                        enterprise, any affiliated job-
                                        creating entity, or issuer of 
                                        securities associated with the 
                                        regional center, or any 
                                        promoter, finder, broker-
                                        dealer, or other entity engaged 
                                        by any of the foregoing to 
                                        locate alien investors 
                                        investing pursuant to 
                                        subparagraph (H)--

                                                    ``(AA) a 
                                                description of all fees 
                                                collected;

                                                    ``(BB) an 
                                                accounting of the 
                                                entities that received 
                                                such fees; and

                                                    ``(CC) the purpose 
                                                for which such fees 
                                                were collected;

                                            ``(gg) any documentation 
                                        referred to in subparagraph 
                                        (I)(i)(IV), if there has been a 
                                        material change during the 
                                        preceding fiscal year; and
                                            ``(hh) a certification by 
                                        the regional center that such 
                                        statements are accurate, to the 
                                        best of the certifier's 
                                        knowledge, after a due 
                                        diligence investigation; and
                                    ``(VII) a description of the 
                                regional center's policies and 
                                procedures that are designed to enable 
                                the regional center to comply with 
                                applicable Federal labor laws.
                            ``(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.--The 
                                Director shall sanction any regional 
                                center entity in accordance with 
                                subclause (II) if the regional center 
                                fails to submit an annual statement or 
                                if the Director determines that the 
                                regional center--
                                            ``(aa) knowingly submitted 
                                        or caused to be submitted a 
                                        statement, certification, or 
                                        any information submitted 
                                        pursuant to this subparagraph 
                                        that contained an untrue 
                                        statement of material fact; or
                                            ``(bb) is conducting itself 
                                        in a manner inconsistent with 
                                        its designation, including any 
                                        willful, undisclosed, and 
                                        material deviation by new 
                                        commercial enterprises from any 
                                        filed business plan for such 
                                        commercial enterprises.
                                    ``(II) Authorized sanctions.--The 
                                Director shall establish a graduated 
                                set of sanctions based on the severity 
                                of the violations referred to in 
                                subclause (I), including--
                                            ``(aa) fines equal to not 
                                        more than 10 percent of the 
                                        total capital invested by alien 
                                        investors in the regional 
                                        center's new commercial 
                                        enterprises or job-creating 
                                        entities, the payment of which 
                                        shall not in any circumstance 
                                        utilize any of such alien 
                                        investors' capital investments, 
                                        and which shall be deposited 
                                        into the EB-5 Integrity Fund 
                                        established under subparagraph 
                                        (M);
                                            ``(bb) temporary suspension 
                                        from participation in the 
                                        program described in 
                                        subparagraph (H), 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 one 
                                        or more individuals associated 
                                        with the regional center or new 
                                        commercial enterprise or job-
                                        creating entity; and
                                            ``(dd) termination of 
                                        regional center designation.
                    ``(K) Bona fides of persons involved with regional 
                center program.--
                            ``(i) In general.--No person shall be 
                        permitted to be involved with any regional 
                        center, new commercial enterprise, or job-
                        creating entity if--
                                    ``(I) the person has been found to 
                                have committed--
                                            ``(aa) a criminal or civil 
                                        violation involving fraud or 
                                        deceit within the previous 10 
                                        years;
                                            ``(bb) a civil violation 
                                        resulting in a liability in 
                                        excess of $1,000,000 involving 
                                        fraud or deceit; or
                                            ``(cc) a crime resulting in 
                                        a conviction with a term of 
                                        imprisonment of more than 1 
                                        year;
                                    ``(II) the person is subject to a 
                                final order, for the duration of any 
                                penalty imposed by such 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, 
                                the Securities and Exchange Commission, 
                                a financial self-regulatory 
                                organization recognized by the 
                                Securities and Exchange 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) appearing 
                                                before such commission, 
                                                authority, agency, or 
                                                officer;

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

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

                                    ``(III) 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 section 
                                        212(a)(3)(B));
                                            ``(ee) any activity 
                                        constituting or facilitating 
                                        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 for 
                                        conduct related to fraud or 
                                        deceit by a State bar 
                                        association of which the person 
                                        is or was a member.
                            ``(ii) Foreign involvement in regional 
                        center program.--
                                    ``(I) Lawful status required.--No 
                                person may be involved with a regional 
                                center unless the person is a national 
                                of the United States or an individual 
                                who has been lawfully admitted for 
                                permanent residence (as defined in 
                                paragraphs (20) and (22) of section 
                                101(a)).
                                    ``(II) Foreign governments.--No 
                                foreign government entity may provide 
                                capital to, or be directly or 
                                indirectly involved with the ownership 
                                or administration of, a regional 
                                center, a new commercial enterprise, or 
                                a job-creating entity.
                            ``(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 and 
                        database checks with respect to a regional 
                        center, new commercial enterprise, and any 
                        affiliated job-creating entity, and persons 
                        involved with such entities (as described in 
                        clause (v)), in order to determine whether such 
                        entities are in compliance with clauses (i) and 
                        (ii). The Secretary may require the information 
                        and attestations described in this clause from 
                        such entities, and any person involved with 
                        such entities, at any time on or after the date 
                        of the enactment of the American Job Creation 
                        and Investment Into Public Works Reform Act of 
                        2017 and may perform such checks with respect 
                        to any job creating entity, and persons 
                        involved with such entity.
                            ``(iv) Termination.--
                                    ``(I) In general.--The Secretary 
                                shall suspend or terminate the 
                                designation of any regional center, or 
                                the participation under the program of 
                                any new commercial enterprise or job-
                                creating entity under this paragraph if 
                                the Secretary determines that such 
                                entity--
                                            ``(aa) knowingly involved a 
                                        person with such entity in 
                                        violation of clause (i) or 
                                        (ii);
                                            ``(bb) failed to provide an 
                                        attestation or information 
                                        requested by the Secretary; or
                                            ``(cc) knowingly provided 
                                        any false attestation or 
                                        information under clause (iii).
                                    ``(II) Information.--The Secretary, 
                                after the performance of the criminal 
                                record and other background checks 
                                described in clause (iii), shall notify 
                                a regional center, new commercial 
                                enterprise, or job-creating entity 
                                whether any person involved with such 
                                entities is not in compliance with 
                                clause (i) or (ii). If, 30 days after 
                                receiving such notification, the 
                                regional center, new commercial 
                                enterprise, or job-creating entity, as 
                                the case may be, fails to discontinue 
                                the prohibited person's involvement 
                                with the regional center, new 
                                commercial enterprise, or job-creating 
                                entity, as applicable, the regional 
                                center, new commercial enterprise, or 
                                job-creating entity shall be deemed to 
                                have knowledge under subclause (I)(aa) 
                                that such person is in violation of 
                                clause (i) or (ii).
                            ``(v) Persons involved with a regional 
                        center, new commercial enterprise, or job-
                        creating entity.--For the purposes of this 
                        subparagraph, a person is considered to be 
                        `involved' with a regional center, a new 
                        commercial enterprise, any affiliated job-
                        creating entity, or other job-creating entity, 
                        as applicable, if he or she is, directly or 
                        indirectly, an owner or in a position of 
                        substantive authority to make operational or 
                        managerial decisions over pooling, 
                        securitization, investment, release, 
                        acceptance, or control of any funding that was 
                        procured pursuant to subparagraph (H). An 
                        individual may be in a position of substantive 
                        authority if he or she serves as a principal, 
                        representative, administrator, owner, officer, 
                        board member, manager, executive, general 
                        partner, fiduciary, or in a similar position at 
                        the regional center, new commercial enterprise, 
                        any affiliated job-creating entity, or other 
                        job-creating entity, respectively.
                    ``(L) Compliance with securities laws.--
                            ``(i) Jurisdiction.--
                                    ``(I) In general.--The United 
                                States has jurisdiction over the 
                                purchase or sale of any security 
                                offered or sold by any regional center 
                                or any party associated with a regional 
                                center for purposes of the securities 
                                laws. Subject matter jurisdiction shall 
                                also lie within the United States.
                                    ``(II) Compliance with 
                                regulations.--Solely for purposes of 
                                section 5 of the Securities Act of 1933 
                                (15 U.S.C. 77e), a regional center or 
                                any party associated with a regional 
                                center is not precluded from offering 
                                or selling a security pursuant to 
                                Regulation S under the Securities Act 
                                of 1933 (15 U.S.C. 77a et seq.) to the 
                                extent that such offering or selling 
                                otherwise complies with that 
                                regulation.
                            ``(ii) Regional center certifications 
                        required.--
                                    ``(I) Initial certification.--The 
                                Secretary of Homeland Security may not 
                                approve an application for regional 
                                center designation or regional center 
                                amendment unless the regional center 
                                certifies that, to the best of the 
                                certifier's knowledge, after a due 
                                diligence investigation, the regional 
                                center is in compliance with and has 
                                policies and procedures, such as those 
                                related to internal and external due 
                                diligence, reasonably designed to 
                                confirm, as applicable, that all 
                                parties associated with the regional 
                                center are and will remain in 
                                compliance with the securities laws of 
                                the United States and of any State in 
                                which the offer, purchase, or sale of 
                                securities was conducted, or the issuer 
                                of securities was located, or the 
                                investment advice was provided 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 (J). 
                                Annual certifications under this 
                                subclause shall also certify compliance 
                                with clause (iii) by stating that--
                                            ``(aa) 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;
                                            ``(bb) to the best of the 
                                        certifier's knowledge, after a 
                                        due diligence investigation, 
                                        all such offers, purchases, and 
                                        sales of securities or the 
                                        provision of investment advice 
                                        complied with the securities 
                                        laws of the United States and 
                                        the securities laws of any 
                                        State in which the offer, 
                                        purchase, or sale of securities 
                                        was conducted, or the issuer of 
                                        securities was located, or the 
                                        investment advice was provided; 
                                        and
                                            ``(cc) 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 a 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 or 
                                the securities laws of any State in 
                                which the securities activities were 
                                conducted by any party associated with 
                                the regional center, 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, to the best of the 
                                        certifier's knowledge, after a 
                                        due diligence investigation.
                            ``(iii) Oversight required.--Each regional 
                        center shall monitor and supervise all offers, 
                        purchases, and sales of, and investment advice 
                        relating to securities made by parties 
                        associated with the regional center to confirm 
                        compliance with the securities laws of the 
                        United States, and maintain records, data, and 
                        information relating to all such offers, 
                        purchases, sales, and investment advice during 
                        the 5-year period beginning on the date of 
                        their creation. Such records, data, and 
                        information shall be made available to the 
                        Secretary upon request.
                            ``(iv) Suspension or termination.--In 
                        addition to any other authority provided to the 
                        Secretary under this paragraph, the Secretary, 
                        in the Secretary's discretion, may suspend or 
                        terminate the designation of any regional 
                        center, or impose other sanctions against the 
                        regional center, if--
                                    ``(I) the regional center is 
                                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, or any party associated with 
                                the regional center is so enjoined and 
                                the regional center knew, or reasonably 
                                should have known, that this is the 
                                case;
                                    ``(II) the regional center is 
                                subject to any final order of the 
                                Securities and Exchange Commission or a 
                                State securities regulator, or any 
                                party associated with the regional 
                                center is subject to such an order and 
                                the regional center knew, or reasonably 
                                should have known, that this is the 
                                case, if the order--
                                            ``(aa) bars such person 
                                        from association with an entity 
                                        regulated by the Securities and 
                                        Exchange Commission or a State 
                                        securities regulator; or
                                            ``(bb) constitutes a final 
                                        order based on a finding of an 
                                        intentional violation or a 
                                        violation related to fraud or 
                                        deceit in connection with the 
                                        offer, purchase, or sale of, or 
                                        investment advice relating to, 
                                        a security; or
                                    ``(III) the regional center 
                                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, or any party 
                                associated with the regional center 
                                undertook such an action and the 
                                regional center knew, or reasonably 
                                should have known, that this is the 
                                case.
                            ``(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 or any State securities 
                        regulator under State securities laws.
                            ``(vi) Defined term.--In this subparagraph, 
                        the term `party associated with a regional 
                        center' means--
                                    ``(I) the regional center;
                                    ``(II) any new commercial 
                                enterprise or affiliated job-creating 
                                entity or issuer of securities 
                                associated with the regional center;
                                    ``(III) the regional center's and 
                                new commercial enterprise's owners, 
                                officers, directors, managers, 
                                partners, agents, employees, promoters 
                                and attorneys; or
                                    ``(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.
                    ``(M) 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 to the Secretary of Homeland 
                        Security until expended for the purposes set 
                        forth in clause (iii).
                            ``(ii) Fees.--
                                    ``(I) Annual fee.--Beginning on 
                                January 1, 2017, and each year 
                                thereafter, the Secretary of Homeland 
                                Security shall collect a fee of $25,000 
                                for the Fund from each regional center 
                                designated under subparagraph (H). The 
                                fee shall be $10,000 if a regional 
                                center has 20 or fewer alien investors 
                                investing pursuant to subparagraph (H) 
                                in the immediately preceding fiscal 
                                year in its new commercial enterprises.
                                    ``(II) Petition fee.--Beginning on 
                                October 1, 2016, the Secretary shall 
                                collect a fee of $2,000 for the Fund 
                                with each petition filed pursuant to 
                                section 204(a)(1)(H) for classification 
                                under this paragraph pursuant to 
                                subparagraph (H).
                                    ``(III) Increases.--The Secretary 
                                may prescribe regulations, as 
                                necessary, to increase the dollar 
                                amounts 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 shall--
                                    ``(I) use not less than \1/3\ of 
                                the amounts deposited into the Fund to 
                                conduct audits and site visits (with or 
                                without notice);
                                    ``(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 
                                        investor's compliance with 
                                        subparagraph (D);
                                    ``(III) use amounts deposited into 
                                the Fund--
                                            ``(aa) to detect and 
                                        investigate fraud or other 
                                        crimes; and
                                            ``(bb) to determine whether 
                                        regional centers, new 
                                        commercial enterprises, any 
                                        affiliated job-creating 
                                        entities, and alien investors 
                                        (and their alien spouses and 
                                        alien children, if any) comply 
                                        with applicable immigration 
                                        laws;
                                    ``(IV) use amounts deposited into 
                                the Fund to conduct interviews of the 
                                owners, officers, directors, managers, 
                                partners, agents, employees, promoters, 
                                and attorneys of regional centers, new 
                                commercial enterprises, and job-
                                creating entities; and
                                    ``(V) otherwise use amounts 
                                deposited into the Fund as the 
                                Secretary determines to be necessary, 
                                including monitoring compliance with 
                                the requirements under section 8 of the 
                                American Job Creation and Investment 
                                Into Public Works Reform Act of 2017.
                            ``(iv) Failure to pay fee.--The Secretary 
                        of Homeland Security shall--
                                    ``(I) impose a reasonable penalty, 
                                which shall be deposited into the Fund, 
                                if a regional center does not pay the 
                                fee required under clause (ii)(I) 
                                within 30 days of the date on which 
                                such clause requires the Secretary to 
                                collect the fee; and
                                    ``(II) terminate the designation of 
                                any regional center that does not pay 
                                the fee required under clause (ii)(I) 
                                within 90 days of the date on which 
                                such clause requires the Secretary to 
                                collect the fee.
                            ``(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 immediately preceding 
                        fiscal year.
                    ``(N) Direct and third-party promoters.--
                            ``(i) Rules and standards.--Direct and 
                        third-party promoters of a regional center, any 
                        new commercial enterprise, an affiliated job-
                        creating entity, or issuer of securities 
                        affiliated with the regional center shall 
                        comply with the rules and standards prescribed 
                        by the Secretary of Homeland Security and any 
                        applicable Federal or State securities laws, to 
                        oversee regional center promotion, including--
                                    ``(I) registration with U.S. 
                                Citizenship and Immigration Services, 
                                which--
                                            ``(aa) may be limited to 
                                        identifying and contact 
                                        information of such promoter 
                                        and confirmation of the 
                                        existence of the written 
                                        agreement required by clause 
                                        (iii); and
                                            ``(bb) shall not include 
                                        any requirement that U.S. 
                                        Citizenship and Immigration 
                                        Services approve the 
                                        registration of such promoter;
                                    ``(II) minimum qualifications;
                                    ``(III) guidelines for offering 
                                investment opportunities and 
                                representing the visa process to 
                                prospective investors under the program 
                                established under subparagraph (H); and
                                    ``(IV) permissible fee 
                                arrangements.
                            ``(ii) Effect of violation.--If the 
                        Secretary determines 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 this paragraph.
                            ``(iii) Compliance.--Each regional center 
                        shall maintain a written agreement between the 
                        regional center, the new commercial enterprise, 
                        any affiliated job-creating entity, or any 
                        issuer of securities affiliated with the 
                        regional center, and each direct or third-party 
                        promoter operating on behalf of such entities 
                        or issuer that outlines the rules and standards 
                        prescribed under clause (i).
                            ``(iv) Disclosure.--Each petition filed 
                        pursuant to section 204(a)(1)(H) for 
                        classification under this paragraph pursuant to 
                        subparagraph (H) shall include a disclosure, 
                        signed by the alien investor, that reflects all 
                        fees, ongoing interest, and other compensation 
                        paid to any person that the regional center or 
                        new commercial enterprise knows has received, 
                        or will receive, in connection with the 
                        investment, including compensation to agents, 
                        finders, or broker dealers involved in the 
                        offering, to the extent not already 
                        specifically identified in the business plan 
                        filed under subparagraph (I).
                            ``(v) Publication.--The list of such 
                        registered promoters may be made publicly 
                        available by the Secretary.
                    ``(O) Treatment of good faith investors following 
                program noncompliance.--
                            ``(i) Termination or debarment of eb-5 
                        entity.--Except as provided in clause (v), upon 
                        the termination or debarment, as applicable, 
                        from the program under this paragraph of a 
                        regional center, new commercial enterprise, or 
                        job-creating entity, an otherwise qualified 
                        petition under section 204(a)(1)(H) or 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 terminated regional center, new commercial 
                        enterprise, or job-creating entity shall remain 
                        valid or continue to be authorized, as 
                        applicable, consistent with this subparagraph.
                            ``(ii) New regional center or investment.--
                        The petition under section 204(a)(1)(H) of an 
                        alien described in clause (i) and the 
                        conditional permanent resident status of an 
                        alien described in clause (i) shall be 
                        terminated 180 days after the termination from 
                        the program under this paragraph of a regional 
                        center, a new commercial enterprise, or a job 
                        creating entity unless--
                                    ``(I) in the case of the 
                                termination of a regional center--
                                            ``(aa) the new commercial 
                                        enterprise associates with an 
                                        approved regional center;
                                            ``(bb) such alien makes a 
                                        qualifying investment in 
                                        another new commercial 
                                        enterprise associated with an 
                                        approved regional center; or
                                            ``(cc) such alien makes a 
                                        qualifying investment in 
                                        another new commercial 
                                        enterprise under this paragraph 
                                        not associated with a regional 
                                        center; or
                                    ``(II) in the case of the debarment 
                                of a new commercial enterprise or job-
                                creating entity, such alien invests in 
                                another new commercial enterprise 
                                associated with an approved regional 
                                center.
                            ``(iii) Removal of conditions.--Aliens 
                        described in subclause (I)(bb), (I)(cc), or 
                        (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.
                            ``(iv) In case of enforcement action.--
                        Except as provided in clause (v), if the 
                        Secretary, the Attorney General, or the 
                        Securities and Exchange Commission files a 
                        criminal or civil enforcement action in any 
                        United States District Court containing 
                        allegations that a regional center, new 
                        commercial enterprise, job-creating entity, or 
                        any person involved with the foregoing 
                        entities, committed fraud which affected an 
                        alien's investment capital under subparagraph 
                        (A), or if a State authority or agency files 
                        such an action in a State court--
                                    ``(I) for all related petitions for 
                                classification under this paragraph and 
                                petitions for removal of conditions 
                                described in section 216A--
                                            ``(aa) the Secretary may 
                                        hold such petitions in abeyance 
                                        unless ordered to take action 
                                        by the United States District 
                                        Court overseeing such action, 
                                        if applicable; and
                                            ``(bb) the United States 
                                        District Court overseeing such 
                                        action, if applicable, may 
                                        enter an order extending any 
                                        deadlines applicable under this 
                                        paragraph and to prevent age-
                                        out of derivative 
                                        beneficiaries;
                                    ``(II) the alien investor may--
                                            ``(aa) petition to amend 
                                        the alien's underlying petition 
                                        for classification under this 
                                        paragraph or the petition for 
                                        removal of conditions described 
                                        in section 216A(c) without such 
                                        facts underlying the amendment 
                                        being deemed a material change; 
                                        and
                                            ``(bb) retain the immigrant 
                                        visa priority date related to 
                                        the original petition; and
                                    ``(III) any funds obtained or 
                                recovered by an alien investor, 
                                directly or indirectly, from claims 
                                against third parties, including 
                                insurance proceeds, or any additional 
                                investment capital provided by the 
                                alien after the enforcement action 
                                described in this clause is filed, may 
                                be deemed to be such alien's investment 
                                capital for the purposes of 
                                subparagraph (A) if such investment 
                                otherwise complies with the 
                                requirements of this paragraph and 
                                section 216A.
                            ``(v) Exception.--If the Secretary has 
                        reason to believe an alien was a knowing 
                        participant in the conduct that led to the 
                        termination of a regional center, new 
                        commercial enterprise, or job-creating entity, 
                        as described in clause (i), or was a knowing 
                        participant in the alleged wrongdoing that led 
                        to an enforcement action described in clause 
                        (iv)--
                                    ``(I) the alien shall not be 
                                accorded any benefit under this 
                                subparagraph; and
                                    ``(II) the Secretary shall notify 
                                the alien of such belief and, subject 
                                to section 216A(b)(2), shall deny or 
                                initiate proceedings to revoke the 
                                approval of such alien's petition, 
                                application, or benefit (and that of 
                                any spouse or child, if applicable) 
                                described in this paragraph.
                    ``(P) Account transparency requirement.--
                            ``(i) In general.--Except as provided in 
                        clause (iii), a new commercial enterprise shall 
                        deposit and maintain the capital investment of 
                        each alien investor in a separate account as 
                        described in this subparagraph, including funds 
                        held in escrow.
                            ``(ii) Requirements for separate 
                        accounts.--
                                    ``(I) Required information.--Prior 
                                to, or within one business day of, the 
                                deposit of an alien investor's capital 
                                investment in a separate account, the 
                                new commercial enterprise shall provide 
                                the following information to the alien 
                                investor whose capital investment will 
                                be or has been deposited into the 
                                separate account, the regional center 
                                associated with the new commercial 
                                enterprise, and the Director of U.S. 
                                Citizenship and Immigration Services:
                                            ``(aa) The name, address, 
                                        and other contact information 
                                        of the bank or other financial 
                                        institution where the separate 
                                        account is or will be 
                                        maintained and the name of the 
                                        authorized signatory required 
                                        under subclause (II).
                                            ``(bb) Sufficient 
                                        information to enable the alien 
                                        investor whose capital 
                                        investment will be or has been 
                                        deposited into the separate 
                                        account, the regional center 
                                        associated with the new 
                                        commercial enterprise, and the 
                                        Director to view online the 
                                        balance in the separate account 
                                        on an ongoing basis.
                                    ``(II) Authorized signatories.--At 
                                least one of the authorized signatories 
                                to the separate account shall be an 
                                individual who is--
                                            ``(aa) independent of, and 
                                        not directly or indirectly 
                                        related to, the new commercial 
                                        enterprise, the regional center 
                                        associated with the new 
                                        commercial enterprise, the job 
                                        creating entity, or any of the 
                                        principals or managers of such 
                                        entities; and
                                            ``(bb) an officer at the 
                                        bank or other financial 
                                        institution where the separate 
                                        account is maintained; 
                                        licensed, active, and in good 
                                        standing as an attorney, 
                                        certified public accountant, or 
                                        broker-dealer; or otherwise 
                                        authorized by the Director to 
                                        serve as a signatory.
                            ``(iii) Transfers from a separate 
                        account.--
                                    ``(I) In general.--The funds in a 
                                separate account may be transferred 
                                only--
                                            ``(aa) to the alien 
                                        investor who contributed the 
                                        funds held in the separate 
                                        account as a refund of that 
                                        investor's capital investment 
                                        if otherwise permitted under 
                                        this paragraph, to another 
                                        separate account, or to a job 
                                        creating entity or otherwise 
                                        deployed into the capital 
                                        investment project for which 
                                        the funds were intended; and
                                            ``(bb) after at least one 
                                        of the authorized signatories 
                                        described in clause (ii)(II) 
                                        has provided written consent 
                                        for the proposed transfer.
                                    ``(II) Notice.--Prior to, or within 
                                one business day of, funds being 
                                transferred from a separate account, 
                                the new commercial enterprise shall 
                                provide notice to the alien investor 
                                whose capital investment has been or 
                                will be transferred from the separate 
                                account, the regional center associated 
                                with the new commercial enterprise, and 
                                the Director, including--
                                            ``(aa) the amount of the 
                                        funds that are to be or were 
                                        transferred; and
                                            ``(bb) the destination of 
                                        the transferred funds, 
                                        including whether the funds are 
                                        transferred to another separate 
                                        account, or transferred 
                                        directly to a job creating 
                                        entity or otherwise deployed 
                                        into the capital investment 
                                        project for which the funds 
                                        were intended.
                                    ``(III) Transfer of funds.--In the 
                                case of a transfer of funds from a 
                                separate account maintained by a new 
                                commercial enterprise to an affiliated 
                                job creating entity, the affiliated job 
                                creating entity shall maintain the 
                                funds in a separate account that meets 
                                the requirements of this section until 
                                the funds are deployed into the capital 
                                investment project for which they were 
                                intended. Within 30 days of the 
                                deployment of the funds into the 
                                capital investment project for which 
                                they were intended, an individual who 
                                is licensed, active, and in good 
                                standing as an attorney, certified 
                                public accountant, or broker-dealer, or 
                                an individual otherwise authorized by 
                                the Director to serve as a signatory, 
                                shall verify that the funds were 
                                deployed into the capital investment 
                                project for which they were intended 
                                and shall so notify the alien investor 
                                whose capital investment was invested, 
                                the regional center associated with the 
                                capital investment project, and the 
                                Director.
                            ``(iv) Electronic mail authorized.--Any 
                        notice or information to be provided under this 
                        section may be given via electronic mail.
                            ``(v) Definitions.--In this subparagraph:
                                    ``(I) The term `financial 
                                institution' has the meaning given such 
                                term by section 20 of title 18, United 
                                States Code.
                                    ``(II) The term `separate account' 
                                means an account--
                                            ``(aa) maintained in the 
                                        United States by a new 
                                        commercial enterprise at a 
                                        federally regulated bank or at 
                                        another financial institution 
                                        in the United States that is 
                                        insured; and
                                            ``(bb) that contains only 
                                        the pooled investment funds of 
                                        alien investors in a new 
                                        commercial enterprise with 
                                        respect to a single capital 
                                        investment project.''.
    (c) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall be effective at any time 
        after the date of the enactment of this Act, as determined by 
        the Secretary, and shall be effective not later than 90 days 
        after such date of enactment.
            (2) Exceptions.--
                    (A) Clauses (iv) and (v) of subparagraph (H) of 
                section 203(b)(5) of the Immigration and Nationality 
                Act (8 U.S.C. 1153(b)(5)), as inserted by subsection 
                (b), shall not apply to a petition that--
                            (i) was filed by an alien investor under 
                        such section 203(b)(5) prior to June 1, 2015;
                            (ii) was filed by an alien investor under 
                        such section 203(b)(5) during the period 
                        beginning on June 1, 2015, and ending on the 
                        date of the enactment of this Act if such 
                        beneficiary is investing in the same commercial 
                        enterprise concerning the same economic 
                        activity as contained in an exemplar filed 
                        prior to June 1, 2015, or approved by the 
                        Secretary of Homeland Security at any time 
                        prior to the date of enactment of this Act, 
                        unless the Secretary determines that such 
                        approval or filing was based on fraud, 
                        misrepresentation in the record of proceeding, 
                        or is legally deficient; or
                            (iii) is filed under section 216A of such 
                        Act (8 U.S.C. 1186b) if the underlying petition 
                        filed under section 203(b)(5) of such Act was 
                        filed prior to June 1, 2015, or approved before 
                        the date of the enactment of this Act.
                    (B) Subparagraph (P) of section 203(b)(5) of the 
                Immigration and Nationality Act (8 U.S.C. 1153(b)(5)), 
                as inserted by subsection (b), shall take effect 1 year 
                after the date of the enactment of this Act and shall 
                apply to any application filed by a regional center for 
                approval of an investment under subparagraph (I) of 
                such section 203(b)(5), as so inserted, filed on or 
                after such date.

SEC. 4. OTHER EB-5 VISA REFORMS.

    (a) Type of Investment.--Section 203(b)(5)(A) of the Immigration 
and Nationality Act (8 U.S.C. 1153(b)(5)(A)), is amended--
            (1) in the matter preceding clause (i), by striking 
        ``(including a limited partnership)'';
            (2) in clause (i), by striking ``(C),'' and inserting 
        ``(B), and which is expected to remain invested for not less 
        than 2 years;''; and
            (3) in clause (ii)--
                    (A) by striking ``and create'' and inserting ``by 
                creating''; and
                    (B) by inserting ``, United States nationals,'' 
                after ``citizens''.
    (b) Targeted Employment Areas.--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) Visa set-asides and area designations.--
                            ``(i) Reserved visas.--Of the visas made 
                        available under this paragraph in each fiscal 
                        year--
                                    ``(I) 2,000 shall be reserved for 
                                immigrants who invest in rural areas;
                                    ``(II) 2,000 shall be reserved for 
                                immigrants who invest in priority urban 
                                investment areas; and
                                    ``(III) 2,000 shall be reserved for 
                                immigrants who invest in infrastructure 
                                projects.
                            ``(ii) Eligibility.--The Secretary of 
                        Homeland Security shall determine eligibility 
                        for designation as a targeted employment area 
                        and shall not be bound by the determination of 
                        any other governmental or nongovernmental 
                        entity.
                            ``(iii) Designation of infrastructure 
                        project, manufacturing project, and targeted 
                        employment area.--
                                    ``(I) Infrastructure project or 
                                manufacturing project.--The designation 
                                of an infrastructure project or 
                                manufacturing project shall be made at 
                                the time of the investment.
                                    ``(II) Targeted employment area.--
                                The designation of a targeted 
                                employment area--
                                            ``(aa) may be made at the 
                                        time of the investment or at 
                                        the time an application is 
                                        filed under subparagraph (I); 
                                        and
                                            ``(bb) shall be valid for a 
                                        2-year period.
                                    ``(III) Designations and 
                                renewals.--The Secretary shall 
                                establish a process by which regional 
                                centers may request a designation under 
                                subclause (I) or (II). A designation 
                                under either such subclause shall be 
                                issued not later than 60 days after a 
                                request by a regional center and a 
                                designation under subclause (II) may be 
                                renewed for additional 2-year periods 
                                if the area continues to meet the 
                                definition of a targeted employment 
                                area. An alien investor who has made 
                                the required amount of investment in 
                                such an area during its period of 
                                designation shall not be required to 
                                increase the amount of investment based 
                                upon expiration of the designation. The 
                                Secretary shall establish a fee for the 
                                adjudication of a designation request 
                                at a level that is sufficient to ensure 
                                the full recovery of the costs of 
                                providing such adjudication within the 
                                required timeframe. Nothing in this 
                                clause shall be deemed to prohibit an 
                                investor from filing a petition before 
                                such designation is made.''.
    (c) Adjustment of Minimum Investment Amount.--
            (1) In general.--Section 203(b)(5)(C) of such Act (8 U.S.C. 
        1153(b)(5)(C)) is amended--
                    (A) by redesignating clause (iii) as clause (iv);
                    (B) 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--
                                    ``(I) $1,200,000 (except as 
                                provided in subclause (II)); or
                                    ``(II) $800,000 in the case of an 
                                investment in an infrastructure 
                                project, a manufacturing project, or a 
                                project that is physically located in a 
                                targeted employment area.
                            ``(ii) Authority to increase investment 
                        amounts.--The Secretary may periodically 
                        prescribe regulations increasing the dollar 
                        amount specified under clause (i) if any such 
                        increase simultaneously affects each category 
                        of investment under clause (i) by the same 
                        percentage. The Secretary shall publish a 
                        notice in the Federal Register no later than 
                        the date that is 60 days prior to the date upon 
                        which the increase will take effect.
                            ``(iii) Automatic adjustment of minimum 
                        investment amounts.--Beginning on January 1, 
                        2022, and on every fifth subsequent January 1, 
                        after notice in the Federal Register is 
                        published for not less than 60 days, the 
                        Secretary shall adjust each of the minimum 
                        amounts specified in clause (i) as follows:
                                    ``(I) No increases in previous 5 
                                fiscal years.--If the Secretary did not 
                                increase the minimum amount during the 
                                5 prior fiscal years concluding with 
                                the fiscal year ending on September 30 
                                of the prior calendar year, 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, rounded to 
                                the nearest multiple of $10,000.
                                    ``(II) Increases below cpi-u during 
                                previous 5 fiscal years.--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 previously prescribed by 
                                the Secretary by regulations, rounded 
                                to the nearest multiple of $10,000.
                                    ``(III) Increases above cpi-u 
                                during previous 5 fiscal years.--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.''; and
                    (C) in clause (iv), as redesignated, by striking 
                ``Attorney General'' and inserting ``Secretary''.
            (2) Redesignations.--Section 203(b)(5) of such Act (8 
        U.S.C. 1153(b)(5)) is amended--
                    (A) by redesignating subparagraph (B), as amended 
                by subsection (b), as subparagraph (C);
                    (B) by redesignating the second subparagraph (C), 
                as amended by paragraph (1), as subparagraph (B); and
                    (C) by moving subparagraph (B), as so redesignated, 
                so that it appears after subparagraph (A).
    (d) Required Checks.--Section 203(b)(5) of the Immigration and 
Nationality Act, as amended by sections 2 and 3, is further amended by 
inserting after subparagraph (O) the following:
                    ``(P) Required checks.--An alien investor, alien 
                spouse, or alien child may not be granted the status of 
                an alien lawfully admitted for permanent residence 
                under this paragraph unless the Secretary of Homeland 
                Security has determined that such alien is not on the 
                Department of the Treasury's Office of Foreign Assets 
                Control Specially Designated Nationals List.''.
    (e) Definitions.--
            (1) In general.--Section 203(b)(5) of such Act (8 U.S.C. 
        1153(b)(5)), as amended by sections 2 and 3 of this Act, is 
        further amended by striking the second subparagraph (D) 
        (relating to definitions) and inserting the following:
                    ``(Q) Definitions.--In this paragraph:
                            ``(i) Affiliated job-creating entity.--The 
                        term `affiliated job-creating entity' means any 
                        job-creating entity that is directly or 
                        indirectly controlled, managed, or owned by any 
                        of the persons involved with the regional 
                        center or new commercial enterprise under 
                        section 203(b)(5)(K)(v).
                            ``(ii) Capital.--The term `capital'--
                                    ``(I) means cash and all real, 
                                personal, or mixed tangible assets 
                                owned and controlled by the alien 
                                investor, 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.
                            ``(iii) Certifier.--The term `certifier' 
                        means a person in a position of substantive 
                        authority for the management or operations of a 
                        regional center, new commercial enterprise, 
                        affiliated job-creating entity, or issuer of 
                        securities, such as a principal executive 
                        officer or principal financial officer, with 
                        knowledge of such entity's policies and 
                        procedures related to compliance with the 
                        requirements of this paragraph.
                            ``(iv) 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, regardless of who fills the position. A 
                        position or job that is filled by more than 1 
                        employee may be considered full-time employment 
                        for purposes of subparagraph (A)(ii).
                            ``(v) Infrastructure project.--The term 
                        `infrastructure project' means a capital 
                        investment project in a filed or approved 
                        business plan, which is administered by a 
                        governmental entity, such as a Federal, State, 
                        or local agency or authority, where the 
                        governmental entity is the job-creating entity 
                        which contracts with a regional center, or new 
                        commercial enterprise to receive capital 
                        investment under the regional center program 
                        described in subparagraph (H) from alien 
                        investors or the new commercial enterprise as 
                        financing for maintaining, improving, or 
                        constructing a public works project.
                            ``(vi) Job-creating entity.--The term `job-
                        creating entity' means any organization formed 
                        in the United States for the ongoing conduct of 
                        lawful business, including a partnership 
                        (whether limited or general), corporation, 
                        limited liability company, governmental entity 
                        (whether a Federal, State, or local entity, 
                        authority, or instrumentality), or other entity 
                        that receives, or is established to receive, 
                        capital investment from alien investors or a 
                        new commercial enterprise under the regional 
                        center program described in subparagraph (H) 
                        and which is responsible for creating jobs to 
                        satisfy the requirement under subparagraph 
                        (A)(ii).
                            ``(vii) Manufacturing project.--The term 
                        `manufacturing project' means a capital 
                        investment project in a filed or approved 
                        business plan, the purpose of which is to 
                        improve, construct, or operate a plant, 
                        factory, or mill, which primarily exists in 
                        order to produce or assemble a product in the 
                        United States.
                            ``(viii) New commercial enterprise.--The 
                        term `new commercial enterprise' means any for-
                        profit organization formed in the United States 
                        for the ongoing conduct of lawful business, 
                        including a partnership (whether limited or 
                        general), corporation, limited liability 
                        company, or other entity that receives, or is 
                        established to receive, capital investment from 
                        alien investors under subparagraph (H).
                            ``(ix) Priority urban investment area.--The 
                        term `priority urban investment area' means an 
                        area consisting of a census tract or tracts, 
                        each of which is in a metropolitan statistical 
                        area and, using the most recent census data 
                        available, each of which has--
                                    ``(I) an unemployment rate that is 
                                at least 150 percent of the national 
                                average unemployment rate;
                                    ``(II) a poverty rate that is at 
                                least 30 percent; or
                                    ``(III) a median family income that 
                                is not more than 60 percent of the 
                                greater of the statewide median family 
                                income or the metropolitan statistical 
                                area median family income.
                            ``(x) Rural area.--The term `rural area' 
                        means an area that--
                                    ``(I) is outside of 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); and
                                    ``(II) is--
                                            ``(aa) outside of a 
                                        metropolitan statistical area;
                                            ``(bb) within an outlying 
                                        county of a metropolitan 
                                        statistical area; or
                                            ``(cc) within any census 
                                        tract that is greater than 100 
                                        square miles in area and has a 
                                        population density of fewer 
                                        than 100 people per square 
                                        mile.
                            ``(xi) Targeted employment area.--The term 
                        `targeted employment area' means--
                                    ``(I) a priority urban investment 
                                area;
                                    ``(II) a rural area;
                                    ``(III) any area within the 
                                geographic boundaries of any military 
                                installation that was closed, during 
                                the 25-year period immediately 
                                preceding the filing of an application 
                                under subparagraph (F) based upon a 
                                recommendation by the Defense Base 
                                Closure and Realignment Commission; or
                                    ``(IV) an area consisting of a 
                                census tract or contiguous census 
                                tracts, each of which, using the most 
                                recent census data available--
                                            ``(aa) is not located 
                                        within a metropolitan 
                                        statistical area; and
                                            ``(bb) has a poverty rate 
                                        that is at least 20 percent or 
                                        a median family income that is 
                                        not more than 80 percent of the 
                                        statewide median family 
                                        income.''.
            (2) Rulemaking.--The Secretary of Homeland Security shall 
        issue appropriate regulations to account for the modified 
        definition of targeted employment area in section 
        203(b)(5)(Q)(xi) of the Immigration and Nationality Act, as 
        added by paragraph (1), within 180 days of the enactment of 
        this Act.
    (f) Age Determination for Children of Alien Investors.--Section 
203(h) of such Act (8 U.S.C. 1153(h)) is amended by adding at the end 
the following:
            ``(5) Age determination for children of alien investors.--
        An alien who has reached 21 years of age and has been 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 or subparagraph (O) of subsection (b)(5), 
        shall continue to be considered a child of the principal alien 
        for the purpose of a subsequent immigrant petition by the 
        principle alien under subsection (b)(5) if the alien who was a 
        child of the principle 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.''.
    (g) Enhanced Pay Scale for Certain Federal Employees Administering 
the Employment Creation 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).
    (h) 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.''.
    (i) Conforming Changes.--
            (1) Section 203(b)(1) of the Immigration and Nationality 
        Act is amended by inserting ``, subject to section 
        203(b)(5)(C)(i),'' after ``classes specified in paragraphs (4) 
        and (5)''.
            (2) Section 203(b)(5)(A) of the Immigration and Nationality 
        Act is amended by striking ``Visas shall be made available'' 
        and inserting ``Subject to section 203(b)(5)(C)(i), visas shall 
        be made available''.
    (j) 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.--
                    (A) In general.--The amendments made by 
                subparagraphs (A) and (B) of subsection (c)(1) and 
                subsection (e)(1) shall not apply to a beneficiary of a 
                petition that--
                            (i) was filed by an alien investor under 
                        section 203(b)(5) of the Immigration and 
                        Nationality Act (8 U.S.C. 1153(b)(5)) prior to 
                        June 1, 2015;
                            (ii) was filed by an alien investor under 
                        such section 203(b)(5) during the period 
                        beginning on June 1, 2015, and ending on the 
                        date of the enactment of this Act if such 
                        beneficiary is investing in the same commercial 
                        enterprise concerning the same economic 
                        activity as contained in an exemplar filed 
                        prior to June 1, 2015, or approved by the 
                        Secretary of Homeland Security at any time 
                        prior to the date of enactment of this Act, 
                        unless the Secretary determines that such 
                        approval or filing was based on fraud, 
                        misrepresentation in the record of proceeding, 
                        or is legally deficient; or
                            (iii) is filed under section 216A of such 
                        Act (8 U.S.C. 1186b) if the underlying petition 
                        filed under section 203(b)(5) of such Act was 
                        filed prior to June 1, 2015, or approved before 
                        the date of the enactment of this Act.
                    (B) Reserved visas.--Items (aa) and (bb) of section 
                203(b)(5)(C)(i)(I) of the Immigration and Nationality 
                Act (8 U.S.C. 1153(b)(5)(C)(i)(I)), as added by this 
                section, shall take effect beginning on October 1, 
                2016.
            (3) Redesignation.--
                    (A) Petition amendment.--Petitioners described in 
                paragraph (2)(A) may apply to amend their petition to 
                redesignate the targeted employment area upon which 
                such petition was based to conform to the targeted 
                employment area criteria described in section 
                203(b)(5)(Q) of the Immigration and Nationality Act (8 
                U.S.C. 1153(b)(5)(Q)), as amended by subsection (e), if 
                such application for amendment is filed with the 
                Secretary prior to October 1, 2017.
                    (B) Retention of priority date.--If a petitioner 
                applies to amend a petition in accordance with 
                subparagraph (A)--
                            (i) the immigrant visa priority date 
                        related to the original petition shall be 
                        retained;
                            (ii) changes made in the amended petition 
                        to redesignate such area shall not be deemed a 
                        material change; and
                            (iii) the minimum investment amount such 
                        petitioner is required to make shall not be 
                        affected by any such redesignation.

SEC. 5. CONDITIONAL PERMANENT RESIDENT STATUS FOR ALIEN INVESTORS, 
              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) by striking ``entrepreneur'' each place such term 
        appears and inserting ``investor'';
            (3) 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 investor, 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.--An alien investor (and his or her 
                alien spouse or alien child) whose petition under 
                subsection (f) is approved before the alien investor is 
                lawfully admitted for permanent residence shall be 
                granted the status of an alien lawfully admitted for 
                permanent residence without conditions.'';
            (4) in subsection (b)--
                    (A) in the heading, by striking 
                ``Entrepreneurship'' and inserting ``Investment''; and
                    (B) by amending paragraph (1)(B) to read as 
                follows:
                    ``(B) the alien did not invest the requisite 
                capital; or'';
            (5) 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)--
                                    (I) by striking ``must'' and 
                                inserting ``shall''; and
                                    (II) by striking ``, and'' and 
                                inserting a semicolon;
                            (iii) in subparagraph (B)--
                                    (I) by striking ``must'' and 
                                inserting ``shall'';
                                    (II) by striking ``Service'' and 
                                inserting ``Department of Homeland 
                                Security''; and
                                    (III) by striking the period at the 
                                end and inserting ``; and''; and
                            (iv) by adding at the end the following:
                    ``(C) the Secretary shall have performed a site 
                visit to the new commercial enterprise and job-creating 
                entity in which the alien investor invested capital 
                under subparagraph (A) of section 203(b)(5) pursuant to 
                subparagraph (I)(iii) of such section.''; and
                    (C) in paragraph (3)--
                            (i) in subparagraph (A), in the 
                        undesignated matter following clause (ii), by 
                        striking ``the'' before ``such filing''; and
                            (ii) by amending subparagraph (B) to read 
                        as follows:
                    ``(B) Removal or extension of conditional basis.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), if the Secretary determines that 
                        the facts and information contained in a 
                        petition submitted under paragraph (1)(A) are 
                        true, including demonstrating that the alien 
                        complied with subsection (d)(1)(B)(i), the 
                        Secretary shall--
                                    ``(I) notify the alien involved of 
                                such determination; and
                                    ``(II) remove the conditional basis 
                                of the alien's status effective as of 
                                the second anniversary of the alien's 
                                lawful admission for permanent 
                                residence.
                            ``(ii) Exception.--If the petition 
                        demonstrates that the facts and information are 
                        true and that the alien is in compliance with 
                        subsection (d)(1)(B)(ii)--
                                    ``(I) the Secretary, in the 
                                Secretary's discretion, may provide one 
                                1-year extension of the alien's 
                                conditional status; and
                                    ``(II)(aa) if the alien files a 
                                petition not later than 30 days after 
                                the third anniversary of the alien's 
                                lawful admission for permanent 
                                residence demonstrating that the alien 
                                complied with subsection (d)(1)(B)(i), 
                                the Secretary shall remove the 
                                conditional basis of the alien's status 
                                effective as of such third anniversary; 
                                or
                                    ``(bb) if the alien does not file 
                                the petition described in item (aa), 
                                the conditional status shall terminate 
                                at the end of such additional year.'';
            (6) in subsection (d)--
                    (A) in paragraph (1)--
                            (i) by amending subparagraph (A) to read as 
                        follows:
                    ``(A) invested the requisite capital;'';
                            (ii) by redesignating subparagraph (B) as 
                        subparagraph (C); and
                            (iii) by inserting after subparagraph (A) 
                        the following:
                    ``(B)(i) created the employment required under 
                section 203(b)(5)(A)(ii); or
                    ``(ii) is actively in the process of creating the 
                employment required under section 203(b)(5)(A)(ii) and 
                will create such employment before the third 
                anniversary of the alien's lawful admission for 
                permanent residence; and'';
                    (B) in paragraph (2), by amending subparagraph (A) 
                to read as follows:
                    ``(A) 90-day period before second anniversary.--
                            ``(i) In general.--Except as provided in 
                        clause (ii) and subparagraph (B), a petition 
                        under subsection (c)(1)(A) shall be filed 
                        during the 90-day period before the second 
                        anniversary of the alien investor's lawful 
                        admission for permanent residence.
                            ``(ii) Exception.--Aliens described in 
                        subclauses (I)(bb), (I)(cc), and (II) of 
                        section 203(b)(5)(O)(ii) shall file a petition 
                        under subsection (c)(1)(A) during the 90-day 
                        period before the second anniversary of the 
                        subsequent investment.''; and
                    (C) in paragraph (3)--
                            (i) by striking ``The interview'' and 
                        inserting the following:
                    ``(A) In general.--The interview'';
                            (ii) by striking ``Service'' and inserting 
                        ``Department of Homeland Security''; and
                            (iii) by striking the last sentence and 
                        inserting the following:
                    ``(B) Waiver.--The Secretary of Homeland Security, 
                in the Secretary's discretion, may waive the deadline 
                for such an interview or the requirement for such an 
                interview according to criteria developed by United 
                States Citizenship and Immigration Services in 
                consultation with its Fraud Detection and National 
                Security Directorate, and United States Immigration and 
                Customs Enforcement, except that such criteria shall 
                not include reduction of case processing times or the 
                allocation of adjudicatory resources. A waiver may not 
                be granted under this subparagraph if the alien to be 
                interviewed--
                            ``(i) invested in a regional center, new 
                        commercial enterprise, or job-creating entity 
                        that was sanctioned under section 203(b)(5); or
                            ``(ii) is in a class of aliens determined 
                        by the Secretary to be threats to public safety 
                        or national security.'';
            (7) by redesignating subsection (f) as subsection (g);
            (8) by inserting after subsection (e) the following:
    ``(f) Petition From Qualified Alien Investor.--An alien investor 
who invested the requisite capital and created the employment required 
under section 203(b)(5)(A)(ii) at least 24 months before admission, and 
is otherwise conforming to the requirements under section 203(b)(5), 
may file a petition, before admission for permanent residence, to be 
considered, at the time of obtaining status of an alien lawfully 
admitted for permanent residence, to obtain such status without 
conditions.''; and
            (9) in subsection (g)(3), as redesignated, by striking ``a 
        limited partnership'' and inserting ``any entity formed for the 
        purpose of doing for-profit business''.
    (b) Effective Dates.--
            (1) In general.--Except as provided under paragraph (2), 
        the amendments made by subsection (a) shall take effect on the 
        date of the enactment of this Act.
            (2) Exceptions.--
                    (A) Site visits.--The amendment made by subsection 
                (a)(5)(B)(iv) shall take effect not later than 2 years 
                after the date of the enactment of this Act.
                    (B) Petition beneficiaries.--The amendments made by 
                subsection (a) shall not apply to the beneficiary of a 
                petition that is filed under section 216A of the 
                Immigration and Nationality Act (8 U.S.C. 1186b) if the 
                underlying petition filed pursuant to section 
                204(a)(1)(H) of such Act (8 U.S.C. 1154(a)(1)(H)) was 
                approved before the date of the enactment of this Act.

SEC. 6. PROCEDURE FOR GRANTING IMMIGRANT STATUS.

    (a) Filing Order and Eligibility.--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)(i) An alien desiring to be classified under 
                section 203(b)(5) may file a petition with the 
                Secretary of Homeland Security, but only if the alien 
                is not under 18 years of age at the time of filing. An 
                alien who seeks to pool the alien's investment with one 
                or more additional aliens seeking classification under 
                section 203(b)(5) shall file for classification 
                pursuant to section 203(b)(5)(H). An alien petitioning 
                for classification pursuant to section 203(b)(5)(H) may 
                only file a petition with the Secretary after the 
                regional center has filed an application for approval 
                of an investment under section 203(b)(5)(I).
                    ``(ii) A petitioner shall establish eligibility at 
                the time the alien files for classification under 
                section 203(b)(5) and, if not eligible at the time of 
                filing, shall be denied such classification even if the 
                petitioner later becomes eligible under materially 
                different facts or circumstances. Aliens asserting 
                eligibility under a materially different set of facts 
                that did not exist when the petition was filed shall 
                file a new petition. A petitioner shall continue to be 
                eligible for classification at the time such petition 
                is adjudicated.''.
    (b) Effective Dates.--
            (1) In general.--The amendments made by subsection (a) 
        shall take effect on the date of the enactment of this Act.
            (2) Applicability to petitions.--
                    (A) Filing.--Clause (i) of section 204(a)(1)(H) of 
                the Immigration and Nationality Act (8 U.S.C. 
                1154(a)(1)(H)), as added by subsection (a), shall apply 
                to any petition for classification pursuant to section 
                203(b)(5)(H) of such Act (8 U.S.C. 1153(b)(5)(H)) that 
                is filed with the Secretary of Homeland Security on or 
                after the date of the enactment of this Act.
                    (B) Eligibility.--Clause (ii) of section 
                204(a)(1)(H) of such Act, as added by subsection (a), 
                shall apply to any petition for classification pursuant 
                to section 203(b)(5)(H) of the Immigration and 
                Nationality Act (8 U.S.C. 1153(b)(5)(E)) filed with the 
                Secretary of Homeland Security at any time.

SEC. 7. TIMELY PROCESSING.

    (a) Fee Study.--Not later than 180 days after the date of the 
enactment of this Act, the Director of United States Citizenship and 
Immigration Services shall complete a study of fees charged in the 
administration of the program described in sections 203(b)(5) and 216A 
of the Immigration and Nationality Act (8 U.S.C. 1153(b)(5) and 1186b).
    (b) Adjustment of Fees To Achieve Efficient Processing.--
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 sections 
203(b)(5) and 216A of such Act (8 U.S.C. 1153(b)(5) and 1186b), as 
amended by this Act, and for adjudicating petitions filed pursuant to 
section 204(a)(1)(H) of such Act (8 U.S.C. 1154(a)(1)(H)), as amended 
by this Act, at a level sufficient to ensure the full recovery only of 
the costs of providing such services, including the cost of attaining 
the goal of completing adjudications, 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)(H);
            (2) 120 days after receiving an application for approval of 
        investment in a commercial enterprise described in section 
        203(b)(5)(I);
            (3) 150 days after receiving a petition from an alien 
        desiring to be classified under section 203(b)(5)(H); 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 the Secretary in the case of 
        asylum applications, 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 pursuant to section 204(a)(1)(H) of 
        the Immigration and Nationality Act (8 U.S.C. 1154(a)(1)(H)), 
        to make improvements to the information technology 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) Premium Processing of EB-5 Petitions and Applications.--
            (1) Modification of existing premium processing 
        provision.--Section 286(u) of the Immigration and Nationality 
        Act (8 U.S.C. 1356(u)) is amended to read as follows:
    ``(u) Premium Fee for Employment-Based Petitions and 
Applications.--
            ``(1) In general.--The Secretary of Homeland Security is 
        authorized to establish and collect a premium fee for 
        employment-based petitions and applications. The fee under this 
        paragraph shall be used to provide certain premium-processing 
        services to business customers and to make infrastructure 
        improvements in the adjudications and customer-service 
        processes. For approval of the benefit applied for, the 
        petitioner or applicant shall meet the legal criteria for such 
        benefit. Except as provided under paragraph (2), the fee under 
        this paragraph shall be set at $1,000, shall be paid in 
        addition to any normal petition or application fee that may be 
        applicable, and shall be deposited as offsetting collections in 
        the Immigration Examinations Fee Account. The Secretary may 
        adjust the fee under this paragraph in proportion to changes in 
        the Consumer Price Index.
            ``(2) Alien investor petitions and applications.--The 
        Secretary shall establish and collect a premium fee for 
        expeditious processing of applications for regional center 
        designation or regional center amendment under section 
        203(b)(5)(H), petitions under section 203(b)(5), petitions for 
        removal of conditions on lawful permanent residence under 
        section 216A(c), and applications under section 203(b)(5)(I) 
        related to investment in a new commercial enterprise (as 
        defined in section 203(b)(5)(Q)). A petitioner or applicant 
        shall be permitted an opportunity to provide additional 
        evidence identified by the Secretary in any such petition or 
        application prior to a final determination. The premium fee for 
        each such application or petition shall be set at an amount 
        sufficient to adjudicate such application or petition within 
        \1/2\ of the relevant period set forth in section 6(b) of the 
        American Job Creation and Investment Into Public Works Reform 
        Act of 2017, and shall otherwise only be used to recover the 
        costs of such processing, including the hiring of additional 
        adjudicatory staff, shall be paid in addition to any normal 
        petition or application fee that may be applicable, and shall 
        be deposited as offsetting collections in the Immigration 
        Examinations Fee Account.''.
            (2) Establishment of eb-5 premium processing.--Not later 
        than 180 days after the date of the enactment of this Act, the 
        Secretary of Homeland Security shall establish the premium 
        processing of immigrant investor petitions and applications, as 
        described in section 286(u) of the Immigration and Nationality 
        Act (8 U.S.C. 1356(u)), as amended by paragraph (1).
    (e) Delay in Adjudication.--Nothing in this Act may be construed to 
limit the authority of the Secretary of Homeland Security to suspend 
the adjudication of any application or petition under section 203(b)(5) 
or 216A of the Immigration and Nationality Act (8 U.S.C. 1153(b)(5) and 
1186b) or related petition under section 204(a)(1)(H) of such Act (8 
U.S.C. 1154(a)(1)(H)) pending the completion of a national security or 
law enforcement investigation relating to such application or petition.
    (f) Exemption From Paperwork Reduction Act.--For a period of one 
year after the date of the enactment of this Act, the requirements of 
chapter 35 of title 44, United States Code, shall not apply to any 
collection of information required under this Act, under any amendment 
made by this Act, or under any rule promulgated by the Secretary of 
Homeland Security to implement this Act or the amendments made by this 
Act, to the extent the Secretary determines that compliance with such 
requirements would impede the expeditious implementation of this Act or 
the amendments made by this Act.
    (g) 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 Procedure Act''), to carry out subsections (b) 
        and (c).

SEC. 8. 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 United States Citizenship and Immigration Services, 
counselors to such Director, and the Chief of Immigrant Investor 
Programs at United States Citizenship and Immigration Services, shall 
act impartially and may not give preferential treatment to any entity, 
organization, or individual in connection with any aspect of the 
immigrant visa program described in section 203(b)(5) of the 
Immigration and Nationality Act (8 U.S.C. 1153(b)(5)).
    (b) Improper Activities.--Activities that constitute preferential 
treatment under subsection (a) shall include--
            (1) working on, or in any way attempting to 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) of the Immigration and 
        Nationality Act (8 U.S.C. 1153(b)(5)), as amended by this Act, 
        the standard processing of an application, petition, or benefit 
        for--
                    (A) a regional center established under 
                subparagraph (H) of such section;
                    (B) a new commercial enterprise (as defined in 
                subparagraph (Q) of such section);
                    (C) a job-creating entity (as so defined); or
                    (D) any person or entity associated with such 
                regional center, new 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 such 
        immigrant visa program.
    (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) of the Immigration and Nationality Act, 
        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 applications or individual petitions under 
        such section that are pending on or after the date of the 
        enactment of this Act (other than routine communications with 
        other agencies of the Federal Government regarding the case, 
        including communications involving background checks and 
        litigation defense).
            (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 advocating for regional center applications or 
        individual petitions under section 203(b)(5) of the Immigration 
        and Nationality Act (8 U.S.C. 1153(b)(5)) that are pending on 
        or after the date of the enactment of this 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, confidential sources, 
                        or intelligence agencies.--Evidence received 
                        from whistleblowers, other confidential 
                        sources, or the intelligence community 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, or reveal classified information.
    (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) of the 
        Immigration and Nationality Act (8 U.S.C. 1153(b)(5)) 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 United 
        States Citizenship and Immigration Services shall maintain an 
        e-mail account (or equivalent means of communication) for 
        persons or entities--
                    (A) with inquiries regarding specific petitions or 
                applications under the immigrant visa program described 
                in section 203(b)(5) of the Immigration and Nationality 
                Act (8 U.S.C. 1153(b)(5)); or
                    (B) seeking non-case-specific information about the 
                immigrant visa program described in such section 
                203(b)(5).
            (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 United 
                States Citizenship and Immigration Services shall 
                announce that the only channels or offices by which 
                industry stakeholders, petitioners, applicants, and 
                seekers of benefits under the immigrant visa program 
                described in section 203(b)(5) of the Immigration and 
                Nationality Act (8 U.S.C. 1153(b)(5)) may communicate 
                with the Department of Homeland Security regarding 
                specific cases under such section (except for 
                communication made by applicants and petitioners 
                pursuant to regular adjudicatory procedures), or non-
                case-specific information about the visa program 
                applicable to certain cases under such section, are 
                through--
                            (i) the e-mail address or equivalent 
                        channel described in paragraph (1);
                            (ii) the United States Citizenship and 
                        Immigration Services National Customer Service 
                        Center, or any successor to that Center; or
                            (iii) the United States 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 
                        communications described in subparagraph (A) to 
                        the channels of communication or offices listed 
                        in subparagraph (A).
                            (ii) Rule of construction.--Nothing in this 
                        subparagraph may be construed to prevent--
                                    (I) any person from communicating 
                                with the Ombudsman of United States 
                                Citizenship and Immigration Services 
                                regarding the immigrant investor 
                                program under section 203(b)(5) of the 
                                Immigration and Nationality Act (8 
                                U.S.C. 1153(b)(5)); or
                                    (II) the Ombudsman from resolving 
                                problems regarding such immigrant 
                                investor program pursuant to the 
                                authority granted under section 452 of 
                                the Homeland Security Act of 2002 (6 
                                U.S.C. 272).
                    (C) Log.--
                            (i) In general.--The Director of United 
                        States Citizenship and Immigration Services 
                        shall maintain a written or electronic log of--
                                    (I) all communications described in 
                                subparagraph (A) and communications 
                                from Members of Congress, 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 immigrant visa program described in section 
        203(b)(5) of the Immigration and Nationality Act (8 U.S.C. 
        1153(b)(5)) 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 United States 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 United States Citizenship and Immigration 
        Services Web site as an update to the relevant Frequently Asked 
        Questions page or by some other comparable mechanism.
    (f) Penalty.--
            (1) In general.--Any person who intentionally 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, written reprimand, suspension, demotion, 
        or 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) No Creation of Private Right of Action.--Nothing in this 
section may be construed to create or authorize a private right of 
action to challenge a decision of an employee of the Department of 
Homeland Security.

SEC. 9. REPORTS.

    (a) GAO Report.--Not later than December 31, 2019, 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 United States Citizenship and Immigration Services to 
        verify job creation;
            (2) the extent to which United States Citizenship and 
        Immigration Services ensures compliance by regional center 
        participants with their obligations under the immigrant 
        investor program;
            (3) the extent to which United States Citizenship and 
        Immigration Services has maintained records of regional centers 
        and associated commercial enterprises, including annual 
        statements and certifications;
            (4) the steps taken by United States Citizenship and 
        Immigration Services to verify the source of funds, as required 
        under section 203(b)(5)(D) of the Immigration and Nationality 
        Act, as added by section 2 of this Act;
            (5) the extent to which United States Citizenship and 
        Immigration Services collaborates with other Federal and law 
        enforcement agencies, particularly to detect illegal activity 
        and threats to national security related to the regional center 
        program;
            (6) the extent to which United States Citizenship and 
        Immigration Services has prevented fraud and abuse in regional 
        center activities, including the designation of targeted 
        employment areas in areas that otherwise have high employment;
            (7) the extent to which United States Citizenship and 
        Immigration Services has used its authority to sanction, 
        suspend, bar, or terminate regional centers or individuals 
        affiliated with regional centers;
            (8) the steps that have been taken to oversee direct and 
        third-party promoters under section 203(b)(5)(N) of the 
        Immigration and Nationality Act, as added by section 3 of this 
        Act;
            (9) the extent to which employees of the Department of 
        Homeland Security have complied with the ethical standards and 
        transparency requirements under section 8 of this Act; and
            (10) an accounting of the expenditure of amounts from the 
        EB-5 Integrity Fund established under section 203(b)(5)(M) of 
        the Immigration and Nationality Act, as added by section 3 of 
        this Act.
    (b) Inspector General Report.--Not later than December 31, 2019, 
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 United 
States 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 concerning the immigrant visa 
program set forth in section 203(b)(5) of the Immigration and 
Nationality Act (8 U.S.C. 1153(b)(5)) that describes--
            (1) the vulnerabilities within the program that may 
        undermine the national security of the United States;
            (2) the actual or potential use of the program to 
        facilitate export of sensitive technology;
            (3) the actual or potential use of the program to 
        facilitate economic espionage;
            (4) the actual or potential use of the program by foreign 
        government agents; and
            (5) the actual or potential use of the program to 
        facilitate terrorist activity, including funding terrorist 
        activity or laundering terrorist funds.
    (c) Review of Job Creation Methodologies.--Not later than 1 year 
after the date of the enactment of this Act, the Secretary of Homeland 
Security, in consultation with the Bureau of Economic Analysis of the 
Department of Commerce, or another component within the Department of 
Commerce, as determined by the Secretary of Commerce, shall publish 
regulations to determine economically and statistically valid general 
economic methodologies that are in compliance with section 
203(b)(5)(A)(ii) of the Immigration and Nationality Act (8 U.S.C. 
1153(b)(5)(A)(ii)).
    (d) Report.--
            (1) In general.--Not later than 3 years after the date of 
        the enactment of this Act, the Secretary of Homeland Security, 
        in coordination with the Secretary of Commerce and after 
        consultation with relevant Federal agencies, 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, with respect to the program under section 203(b)(5) 
        of the Immigration and Nationality Act (8 U.S.C. 1153(b)(5))--
                    (A) the percentage of completed and pending capital 
                investment projects and the number of alien investors 
                investing pursuant to such program in the States, 
                metropolitan and micropolitan statistical areas, and 
                counties in which such projects occurred in each fiscal 
                year, within the scope of business plans filed pursuant 
                to section 203(b)(5)(I) of the Immigration and 
                Nationality Act (8 U.S.C. 1153(b)(5)(I)), as added by 
                this Act, both approved and awaiting approval--
                            (i) in rural areas;
                            (ii) in rural areas where the median family 
                        income is 125 percent or more than the national 
                        average;
                            (iii) in priority urban investment areas;
                            (iv) for infrastructure projects;
                            (v) for manufacturing projects; and
                            (vi) in areas that are not described in any 
                        of the clauses (i) through (v);
                    (B) whether other Federal financial assistance and 
                tax incentive programs, such as economic development 
                programs administered by the Department of Agriculture, 
                the Department of Housing and Urban Development, or the 
                Community Development Financial Institutions Fund, are 
                also used or available for use by projects described in 
                subparagraph (A);
                    (C)(i) what data is available to assess commuting 
                patterns from high unemployment census tracts to 
                project locations;
                    (ii) whether the consideration of such commuting 
                patterns may be an appropriate factor for targeted 
                employment area designations; and
                    (iii) whether such data can be used to assess job 
                creation in high unemployment census tracts;
                    (D) whether market demands to approve projects 
                described in subparagraph (A) exceed the number of 
                visas allowed under section 203(b)(5) of the 
                Immigration and Nationality Act (8 U.S.C. 1153(b)(5));
                    (E) whether other metrics or Federal data sets are 
                available that capture underserved or undercapitalized 
                communities that may provide an appropriate factor for 
                targeted employment area designations; and
                    (F) what data is available to assess the percentage 
                of jobs created through the investor visa program that 
                are held by persons who reside in census tracts that 
                have an unemployment rate of at least 150 percent of 
                the national average.
            (2) Public input.--Not later than 60 days before the 
        submission of the report required under paragraph (1), the 
        Secretary of Homeland Security shall provide the public with 
        notice and an opportunity to comment on the draft report.
                                 <all>