[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1869 Enrolled Bill (ENR)]

        S.1869

                     One Hundred Sixteenth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Friday,
            the third day of January, two thousand and twenty


                                 An Act


 
To require the disclosure of ownership of high-security space leased to 
          accommodate a Federal agency, 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; FINDINGS.
    (a) Short Title.--This Act may be cited as the ``Secure Federal 
Leases from Espionage And Suspicious Entanglements Act'' or the 
``Secure Federal LEASEs Act''.
    (b) Findings.--Congress finds that--
        (1) the Government Accountability Office has reported that the 
    Federal Government often leases high-security space from private 
    sector landlords;
        (2) the General Services Administration collects highest- level 
    and immediate ownership information through the System for Award 
    Management, but it is not currently required to collect beneficial 
    ownership information and lacks an adequate system for doing so;
        (3) the General Services Administration and Federal agencies 
    with leasing authority may not know if foreign owners have a stake 
    in the buildings leased by the agencies, either through foreign-
    incorporated legal entities or through ownership in United States-
    incorporated legal entities, even when the leased space is used for 
    classified operations or to store sensitive data; and
        (4) according to a report of the Government Accountability 
    Office, dated January 2017, that examined the risks of foreign 
    ownership of Government-leased real estate, ``leasing space in 
    foreign-owned buildings could present security risks such as 
    espionage and unauthorized cyber and physical access''.
SEC. 2. DEFINITIONS.
    In this Act:
        (1) Beneficial owner.--
            (A) In general.--Except as provided in subparagraph (B), 
        the term ``beneficial owner'' means, with respect to a covered 
        entity, each natural person who, directly or indirectly, 
        through any contract, arrangement, understanding, relationship, 
        or otherwise--
                (i) exercises control over the covered entity; or
                (ii) has a substantial interest in or receives 
            substantial economic benefits from the assets of the 
            covered entity.
            (B) Exceptions.--The term ``beneficial owner'' does not 
        include, with respect to a covered entity--
                (i) a minor child;
                (ii) a person acting as a nominee, intermediary, 
            custodian, or agent on behalf of another person;
                (iii) a person acting solely as an employee of the 
            covered entity and whose control over or economic benefits 
            from the covered entity derives solely from the employment 
            status of the person;
                (iv) a person whose only interest in the covered entity 
            is through a right of inheritance, unless the person also 
            meets the requirements of subparagraph (A); or
                (v) a creditor of the covered entity, unless the 
            creditor also meets the requirements of subparagraph (A).
            (C) Anti-abuse rule.--The exceptions under subparagraph (B) 
        shall not apply if used for the purpose of evading, 
        circumventing, or abusing the requirements of this Act.
        (2) Control.--The term ``control'' means, with respect to a 
    covered entity--
            (A) having the authority or ability to determine how a 
        covered entity is utilized; or
            (B) having some decision-making power for the use of a 
        covered entity.
        (3) Covered entity.--The term ``covered entity'' means--
            (A) a person, corporation, company, business association, 
        partnership, society, trust, or any other nongovernmental 
        entity, organization, or group; or
            (B) any governmental entity or instrumentality of a 
        government.
        (4) Executive agency.--The term ``Executive agency'' has the 
    meaning given the term in section 105 of title 5, United States 
    Code.
        (5) Federal agency.--The term ``Federal agency'' means any 
    Executive agency or any establishment in the legislative or 
    judicial branch of the Government.
        (6) Federal lessee.--The term ``Federal lessee''--
            (A) means the Administrator of General Services, the 
        Architect of the Capitol, or the head of any Federal agency, 
        other than the Department of Defense, that has independent 
        statutory leasing authority; and
            (B) does not include the head of an element of the 
        intelligence community.
        (7) Federal tenant.--The term ``Federal tenant''--
            (A) means a Federal agency that is occupying or will occupy 
        a high-security leased space for which a lease agreement has 
        been secured on behalf of the Federal agency; and
            (B) does not include an element of the intelligence 
        community.
        (8) Foreign entity.--The term ``foreign entity'' means a 
    covered entity that is headquartered or incorporated in a country 
    that is not the United States.
        (9) Foreign person.--The term ``foreign person'' means an 
    individual who is not a United States person.
        (10) High-security leased space.--The term ``high-security 
    leased space'' means a space leased by a Federal lessee that--
            (A) will be occupied by Federal employees for nonmilitary 
        activities; and
            (B) has a facility security level of III, IV, or V, as 
        determined by the Federal tenant in consultation with the 
        Interagency Security Committee, the Department of Homeland 
        Security, and the General Services Administration.
        (11) Highest-level owner.--The term ``highest-level owner'' 
    means the entity that owns or controls an immediate owner of the 
    offeror of a lease, or that owns or controls 1 or more entities 
    that control an immediate owner of the offeror.
        (12) Immediate owner.--The term ``immediate owner'' means an 
    entity, other than the offeror of a lease, that has direct control 
    of the offeror, including ownership or interlocking management, 
    identity of interests among family members, shared facilities and 
    equipment, and the common use of employees.
        (13) Intelligence community.--The term ``intelligence 
    community'' has the meaning given the term in section 3 of the 
    National Security Act of 1947 (50 U.S.C. 3003).
        (14) Substantial economic benefits.--The term ``substantial 
    economic benefits'' means, with respect to a natural person 
    described in paragraph (1)(A)(ii), having an entitlement to the 
    funds or assets of a covered entity that, as a practical matter, 
    enables the person, directly or indirectly, to control, manage, or 
    direct the covered entity.
        (15) United states person.--The term ``United States person'' 
    means an individual who--
            (A) is a citizen of the United States; or
            (B) is an alien lawfully admitted for permanent residence 
        in the United States.
        (16) Widely held.--The term ``widely held'' means a fund that 
    has not less than 100 natural persons as direct or indirect 
    investors.
SEC. 3. DISCLOSURE OF OWNERSHIP OF HIGH-SECURITY SPACE LEASED FOR 
FEDERAL AGENCIES.
    (a) Required Disclosures.--Before entering into a lease agreement 
with a covered entity or approving a novation agreement with a covered 
entity involving a change of ownership under a lease that will be used 
for high-security leased space, a Federal lessee shall require the 
covered entity to identify and disclose whether the immediate or 
highest-level owner of the leased space, including an entity involved 
in the financing thereof, is a foreign person or a foreign entity, 
including the country associated with the ownership entity.
    (b) Notification.--If a disclosure is made under subsection (a), 
the Federal lessee shall notify the Federal tenant of the building or 
other improvement that will be used for high-security space in writing, 
and consult with the Federal tenant, regarding security concerns and 
necessary mitigation measures, if any, prior to award of the lease or 
approval of the novation agreement.
    (c) Timing.--
        (1) In general.--A Federal lessee shall require a covered 
    entity to provide the information described in subsection (a) when 
    first submitting a proposal in response to a solicitation for 
    offers issued by the Federal lessee.
        (2) Updates.--A Federal lessee shall require a covered entity 
    to submit an update of the information described in subsection (a) 
    annually, beginning on the date that is 1 year after the date on 
    which the Federal tenant began occupancy, with information 
    including--
            (A) the list of immediate or highest-level owners of the 
        covered entity during the preceding 1-year period of Federal 
        occupancy; or
            (B) the information required to be provided relating to 
        each such immediate or highest-level owner.
SEC. 4. IMMEDIATE, HIGHEST-LEVEL, AND BENEFICIAL OWNERS.
    (a) Plan.--The General Services Administration, in coordination 
with the Office of Management and Budget, shall develop a Government-
wide plan for agencies (as such term is defined in section 551 of title 
5, United States Code) for identifying all immediate, highest-level, or 
beneficial owners of high-security leased spaces before entering into a 
lease agreement with a covered entity for the accommodation of a 
Federal tenant in a high-security leased space.
    (b) Requirements.--
        (1) Contents.--The plan described in subsection (a) shall 
    include a process for collecting and utilizing the following 
    information on each immediate, highest-level, or beneficial owner 
    of a high-security leased space:
            (A) Name.
            (B) Current residential or business street address.
            (C) An identifying number or document that verifies 
        identity as a United States person, foreign person, or foreign 
        entity.
        (2) Disclosures and notifications.--The plan described in 
    subsection (a) shall--
            (A) require the disclosure of any immediate, highest-level, 
        or beneficial owner that is a foreign person;
            (B) require that, if the Federal lessee is assigning the 
        building or other improvement that will be used for high-
        security space to a Federal tenant, the Federal tenant shall be 
        notified of the disclosure described in subparagraph (A); and
            (C) exclude collecting ownership information on widely held 
        pooled-investment vehicles, mutual funds, trusts, or other 
        pooled-investment vehicles.
    (c) Report and Implementation.--The General Services Administration 
shall--
        (1) not later than 1 year after the date of enactment of this 
    Act, submit the plan described in subsection (a) to the Committee 
    on Homeland Security and Governmental Affairs of the Senate and the 
    Committee on Transportation and Infrastructure of the House of 
    Representatives;
        (2) not later than 2 years after the date of enactment of this 
    Act, implement the plan described in subsection (a); and
        (3) not later than 1 year after the implementation of the plan 
    described in subsection (a), and each year thereafter for 9 years, 
    submit a report to the Committee on Homeland Security and 
    Governmental Affairs of the Senate and the Committee on 
    Transportation and Infrastructure of the House of Representatives 
    on the status of the implementation of the plan, including the 
    number of disclosures made under subsection (b)(2).
SEC. 5. OTHER SECURITY AGREEMENTS FOR LEASED SPACE.
    A lease agreement between a Federal lessee and a covered entity for 
the accommodation of a Federal agency in a building or other 
improvement that will be used for high-security leased space shall 
include language that provides that--
        (1) the covered entity and any member of the property 
    management company who may be responsible for oversight or 
    maintenance of the high-security leased space shall not--
            (A) maintain access to the high-security leased space; or
            (B) have access to the high-security leased space without 
        prior approval from the Federal tenant;
        (2) access to the high-security leased space or any property or 
    information located within that space will only be granted by the 
    Federal tenant if the Federal tenant determines that the access is 
    clearly consistent with the mission and responsibilities of the 
    Federal tenant; and
        (3) the Federal lessee shall have written procedures in place, 
    signed by the Federal lessee and the covered entity, governing 
    access to the high-security leased space in case of emergencies 
    that may damage the leased property.
SEC. 6. AGENCY NOTIFICATIONS.
    Not later than 60 days after the date of enactment of this Act, the 
Administrator of General Services, in consultation with the Office of 
Management and Budget, shall provide notification to relevant Executive 
branch agencies with independent leasing authorities of the 
requirements of this Act.
SEC. 7. APPLICABILITY.
    Except where otherwise provided, this Act shall apply with respect 
to any lease or novation agreement entered into on or after the date 
that is 6 months after the date of enactment of this Act.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.