[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7759 Introduced in House (IH)]

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118th CONGRESS
  2d Session
                                H. R. 7759

 To prohibit the purchase of certain securities from covered entities, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 20, 2024

  Mr. Sherman (for himself and Mrs. Spartz) introduced the following 
    bill; which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
 To prohibit the purchase of certain securities from covered entities, 
                        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 ``PRC Military and Human Rights 
Capital Markets Sanctions Act of 2024''.

SEC. 2. PROHIBITION ON PURCHASE OF CERTAIN SECURITIES FROM COVERED 
              ENTITIES.

    (a) In General.--Not later than 90 days after the date of the 
enactment of this Act, the President shall--
            (1) compile and maintain a single list of covered entities;
            (2) where possible, include in the list a unique 
        identification number for each covered entity, such as a 
        Committee on Uniform Securities Identification Procedures 
        number or a Stock Exchange Daily Official List number;
            (3) make such list available to the public; and
            (4) publicly identify and prohibit the purchase, sale, or 
        holding by a United States person (as defined under section 
        560.314 of title 31, Code of Federal Regulations) of a--
                    (A) publicly traded security issued by a covered 
                entity;
                    (B) publicly traded security that is derivative of 
                a publicly traded security issued by a covered entity; 
                and
                    (C) security that provides investment exposure to a 
                publicly traded security issued by a covered entity.
    (b) Divestment Required.--
            (1) In general.--Notwithstanding subsection (a), a United 
        States person shall divest of all securities described in 
        subsection (a)--
                    (A) with respect to a security identified by the 
                President under subsection (a) before the end of the 
                90-day period beginning on the date of the enactment of 
                this Act, not later than 180 days after the date of the 
                enactment of this Act; and
                    (B) with respect to a security identified by the 
                President under subsection (a) after the end of the 90-
                day period beginning on the date of the enactment of 
                this Act, not later than 180 days after the date of 
                such identification.
            (2) Facilitating divestment transactions.--Subsection (a) 
        shall not apply to a United States person to the extent the 
        person is facilitating the divestment of securities described 
        under paragraph (1).
    (c) Penalties.--
            (1) In general.--A United States person that violates, 
        attempts to violate, conspires to violate, or causes a 
        violation of this Act shall be subject to the following 
        penalties:
                    (A) A civil penalty in an amount not to exceed the 
                greater of--
                            (i) $250,000; or
                            (ii) an amount that is twice the amount of 
                        the transaction that is the basis of the 
                        violation with respect to which the penalty is 
                        imposed.
                    (B) With respect to a United States person that 
                willfully violates, willfully attempts to violate, 
                willfully conspires to violate, or aids or abets in the 
                commission of a violation of this Act shall be subject 
                to a criminal penalty--
                            (i) of a fine of not more than $1,000,000; 
                        or
                            (ii) if such United States person is an 
                        individual, a fine of not more than $1,000,000, 
                        a term of imprisonment of not more than 20 
                        years, or both.
            (2) Amount of a transaction defined.--For purposes of 
        paragraph (1)(A)(ii), the term ``amount of a transaction'' 
        means--
                    (A) with respect to a purchase that violates this 
                Act, the purchase price;
                    (B) with respect to a sale that violates this Act, 
                the sale price; and
                    (C) with respect to the holding of a security that 
                violates this Act, the fair market value of the 
                security at the time of the violation.
    (d) Covered Entity Defined.--
            (1) In general.--In this section, the term ``covered 
        entity'' means the following:
                    (A) Any person that is on the list of Specially 
                Designated Nationals and Blocked Persons maintained by 
                the Office of Foreign Assets Control of the Department 
                of the Treasury, or any person under common ownership 
                or control of such person.
                    (B) Any person on the Non-SDN Chinese Military-
                Industrial Complex Companies List (NS-CMIC List) 
                maintained by the Office of Foreign Assets Control of 
                the Department of the Treasury under Executive Order 
                14032 (86 Fed. Reg. 30145; relating to addressing the 
                threat from securities investments that finance certain 
                companies of the People's Republic of China), or any 
                person under common ownership or control of such 
                person.
                    (C) Any person that is a Chinese military company 
                or a military-civil fusion contributor and included on 
                the list maintained by the Department of Defense in 
                accordance with section 1260H(b) of the National 
                Defense Authorization Act for Fiscal Year 2021 (10 
                U.S.C. 113 note) as of the date of the enactment of 
                this Act, or any person under common ownership or 
                control of such person.
                    (D) Any person that is a Chinese person and with 
                respect to which sanctions have been imposed under the 
                under the Global Magnitsky Human Rights Accountability 
                Act (22 U.S.C. 10101 et seq.), or any person under 
                common ownership or control of such person.
                    (E) Any person that is a Chinese person whose goods 
                have been the subject of a Withhold Release Order 
                pursuant to section 307 of the Tariff Act of 1930 (19 
                U.S.C. 1307) during the 2-year period ending on the 
                date of the enactment of this Act, or any person under 
                common ownership or control of such person.
                    (F) Any person that is Chinese entity listed on the 
                Entity List set forth in Supplement No. 4 to part 744 
                of the Export Administration Regulations.
                    (G) Any Chinese person on the Uyghur Forced Labor 
                Prevention Act Entity List, maintained by the 
                Department of Homeland Security, or any person under 
                common ownership or control of such person.
                    (H) Any Chinese person on the Military End User 
                List maintained by the Department of Commerce 
                (Supplement 7 to part 744 of chapter VII, subchapter C 
                of title 15, Code of Federal Regulations), or any 
                person under common ownership or control of such 
                person.
            (2) Control.--For purposes of paragraph (1), the term 
        ``control'' has the meaning given that term under section 
        230.405 of title 17, Code of Federal Regulations.
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