[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1092 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 1092

    To impose sanctions with respect to the theft of United States 
   intellectual property by Chinese persons, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 9, 2019

   Mr. Cruz introduced the following bill; which was read twice and 
             referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL


 
    To impose sanctions with respect to the theft of United States 
   intellectual property by Chinese persons, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Sanction Entities in China for 
Undermining Rules, Exploiting Intellectual Property Act of 2019'' or 
the ``SECURE IP Act of 2019''.

SEC. 2. IMPOSITION OF SANCTIONS WITH RESPECT TO CHINESE PERSONS THAT 
              ARE INVOLVED IN THE THEFT OF UNITED STATES INTELLECTUAL 
              PROPERTY.

    (a) Identification Required.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, and every 180 days thereafter, the 
        President shall--
                    (A) identify Chinese persons that the President 
                determines to, on or after such date of enactment--
                            (i) be responsible for or complicit in, or 
                        to have engaged in, the misappropriation, 
                        receipt, or use of intellectual property stolen 
                        from United States persons if that 
                        misappropriation, receipt, or use is reasonably 
                        likely to result in, or has materially 
                        contributed to, a significant threat to the 
                        national security, foreign policy, or economy 
                        of the United States;
                            (ii) have materially assisted, sponsored, 
                        or provided financial, material, or 
                        technological support for, or goods or services 
                        to or in support of--
                                    (I) any activity described in 
                                clause (i); or
                                    (II) any person the property and 
                                interests in property of which are 
                                blocked pursuant to subsection (b)(1);
                            (iii) be owned or controlled by, or to have 
                        acted or purported to act for or on behalf of, 
                        directly or indirectly, any person the property 
                        and interests in property of which are blocked 
                        pursuant to subsection (b)(1);
                            (iv) have attempted to engage in any of the 
                        activity described in clause (i), (ii), or 
                        (iii); or
                            (v) be a corporate officer of, or a 
                        principal shareholder with controlling 
                        interests in, an entity described in any of 
                        clauses (i) through (iv); and
                    (B) submit to the appropriate congressional 
                committees a list of such persons.
            (2) Form.--The list required by paragraph (1)(B) shall be 
        submitted to the appropriate congressional committees in 
        unclassified form and published in the Federal Register.
            (3) Public input.--
                    (A) In general.--In identifying persons under 
                paragraph (1)(A), the President shall solicit and 
                consider public input, as appropriate.
                    (B) Process.--Not later than 30 days after the date 
                of the enactment of this Act, the President shall--
                            (i) establish a process for soliciting and 
                        considering public input under subparagraph (A) 
                        in a manner that protects the confidentiality 
                        of persons providing that input;
                            (ii) publish guidelines for providing input 
                        pursuant to that process on a publicly 
                        available internet website in an easily 
                        searchable format; and
                            (iii) submit to the appropriate 
                        congressional committees a report on that 
                        process.
    (b) Imposition of Sanctions.--The President shall impose the 
following sanctions with respect to each person on the list required by 
subsection (a)(1)(B):
            (1) Blocking of property.--The President shall block and 
        prohibit, in accordance with the International Emergency 
        Economic Powers Act (50 U.S.C. 1701 et seq.), all transactions 
        in all property and interests in property of the person if such 
        property and interests in property are in the United States, 
        come within the United States, or are or come within the 
        possession or control of a United States person.
            (2) Exclusion from united states.--In the case of an alien, 
        the Secretary of State shall deny a visa to, and the Secretary 
        of Homeland Security shall exclude from the United States, the 
        alien.
    (c) Exceptions.--
            (1) Intelligence activities.--This section shall not apply 
        with respect to activities subject to the reporting 
        requirements under title V of the National Security Act of 1947 
        (50 U.S.C. 3091 et seq.) or any authorized intelligence 
        activities of the United States.
            (2) Compliance with united nations headquarters 
        agreement.--Subsection (b)(2) shall not apply with respect to 
        the admission of an alien to the United States if such 
        admission is necessary to comply with United States obligations 
        under the Agreement between the United Nations and the United 
        States of America regarding the Headquarters of the United 
        Nations, signed at Lake Success June 26, 1947, and entered into 
        force November 21, 1947, under the Convention on Consular 
        Relations, done at Vienna April 24, 1963, and entered into 
        force March 19, 1967, or under other international agreements.
    (d) Implementation; Penalties.--
            (1) Implementation.--The President may exercise all 
        authorities provided under sections 203 and 205 of the 
        International Emergency Economic Powers Act (50 U.S.C. 1702 and 
        1704) to carry out this section.
            (2) Penalties.--A person that violates, attempts to 
        violate, conspires to violate, or causes a violation of 
        subsection (b)(1) or any regulation, license, or order issued 
        to carry out that subsection shall be subject to the penalties 
        set forth in subsections (b) and (c) of section 206 of the 
        International Emergency Economic Powers Act (50 U.S.C. 1705) to 
        the same extent as a person that commits an unlawful act 
        described in subsection (a) of that section.
    (e) Termination of Sanctions.--The President may remove a Chinese 
person from the list required by subsection (a)(1)(B), and terminate 
the application of sanctions under subsection (b) with respect to the 
person, if the President determines and reports to the appropriate 
congressional committees that the person--
            (1) has not, during the 2-year period preceding the date of 
        the determination, engaged in any activity described in 
        subsection (a)(1)(A); and
            (2) has provided assurances that the person will not engage 
        in any such activity in the future.
    (f) Report Required.--
            (1) In general.--With the third consecutive list required 
        by subsection (a)(1)(B) that includes a Chinese person, the 
        President shall submit to the appropriate congressional 
        committees a report that includes a description of--
                    (A) the activity described in subsection (a)(1)(A) 
                in which the person engaged;
                    (B) how the intellectual property involved in the 
                activity was misappropriated or used;
                    (C) how the use of that intellectual property 
                affected the United States person from which the 
                intellectual property was stolen; and
                    (D) the significant threat to the national 
                security, foreign policy, or economy of the United 
                States the misappropriation, receipt, or use of the 
                intellectual property is reasonably likely to result in 
                or has materially contributed to.
            (2) Form of report.--The report required by paragraph (1) 
        shall be submitted in unclassified form but may include a 
        classified annex.
    (g) Definitions.--In this section:
            (1) Admission; alien.--The terms ``admission'' and 
        ``alien'' have the meanings given those terms in section 101 of 
        the Immigration and Nationality Act (8 U.S.C. 1101).
            (2) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Banking, Housing, and Urban 
                Affairs, the Committee on Foreign Relations, and the 
                Committee on Finance of the Senate; and
                    (B) the Committee on Foreign Affairs, the Committee 
                on Financial Services, and the Committee on Ways and 
                Means of the House of Representatives.
            (3) Chinese person.--The term ``Chinese person'' means--
                    (A) an individual who is a citizen or national of 
                the People's Republic of China; or
                    (B) an entity organized under the laws of the 
                People's Republic of China or otherwise subject to the 
                jurisdiction of the Government of the People's Republic 
                of China.
            (4) Intellectual property.--The term ``intellectual 
        property'' means--
                    (A) any work protected by a copyright under title 
                17, United States Code;
                    (B) any property protected by a patent granted by 
                the United States Patent and Trademark Office under 
                title 35, United States Code;
                    (C) any word, name, symbol, or device, or any 
                combination thereof, that is registered as a trademark 
                with the United States Patent and Trademark Office 
                under the Act entitled ``An Act to provide for the 
                registration and protection of trademarks used in 
                commerce, to carry out the provisions of certain 
                international conventions, and for other purposes'', 
                approved July 5, 1946 (commonly known as the ``Lanham 
                Act'' or the ``Trademark Act of 1946'') (15 U.S.C. 1051 
                et seq.);
                    (D) a trade secret (as defined in section 1839 of 
                title 18, United States Code); or
                    (E) any other form of intellectual property.
            (5) United states person.--The term ``United States 
        person'' means--
                    (A) a United States citizen or an alien lawfully 
                admitted for permanent residence to the United States; 
                or
                    (B) an entity organized under the laws of the 
                United States or of any jurisdiction within the United 
                States, including a foreign branch of such an entity.
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