[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3476 Introduced in Senate (IS)]

<DOC>






118th CONGRESS
  1st Session
                                S. 3476

To monitor United States investments in entities that are controlled by 
              foreign adversaries, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 12, 2023

    Mr. Rubio (for himself and Mr. Scott of Florida) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To monitor United States investments in entities that are controlled by 
              foreign adversaries, 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 ``American Investment Accountability 
Act''.

SEC. 2. REPORTING REQUIREMENTS.

    (a) Definitions.--In this section:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Armed Services of the Senate;
                    (B) the Committee on Banking, Housing, and Urban 
                Affairs of the Senate;
                    (C) the Committee on Finance of the Senate;
                    (D) the Committee on Foreign Relations of the 
                Senate;
                    (E) the Select Committee on Intelligence of the 
                Senate;
                    (F) the Committee on Armed Services of the House of 
                Representatives;
                    (G) the Committee on Financial Services of the 
                House of Representatives;
                    (H) the Committee on Foreign Affairs of the House 
                of Representatives;
                    (I) the Permanent Select Committee on Intelligence 
                of the House of Representatives; and
                    (J) the Committee on Ways and Means of the House of 
                Representatives.
            (2) Country of concern.--The term ``country of concern''--
                    (A) means a country the government of which is a 
                foreign adversary, as defined in section 8(c)(2) of the 
                Secure and Trusted Communications Networks Act of 2019 
                (47 U.S.C. 1607(c)(2)); and
                    (B) includes--
                            (i) the People's Republic of China 
                        (including the Special Administrative Regions 
                        of the People's Republic of China, including 
                        Hong Kong and Macau);
                            (ii) the Russian Federation;
                            (iii) Iran;
                            (iv) North Korea;
                            (v) Cuba; and
                            (vi) Venezuela.
            (3) Covered united states business.--The term ``covered 
        United States business'' means any entity that--
                    (A) is--
                            (i) a corporation, partnership, or other 
                        association organized under the laws of the 
                        United States or of any State, the District of 
                        Columbia, or any commonwealth, territory, or 
                        possession of the United States; or
                            (ii) a foreign corporation, partnership, or 
                        other association, not less than 25 percent of 
                        the ownership interest in which is held by 
                        United States citizens or entities described in 
                        clause (i); and
                    (B) is not a small business concern (as defined in 
                section 3 of the Small Business Act (15 U.S.C. 632)).
            (4) Covered entity.--The term ``covered entity'' means any 
        entity--
                    (A) that--
                            (i) has its headquarters or principal place 
                        of business in a country of concern;
                            (ii) is organized under the laws of, or 
                        otherwise subject to the jurisdiction of, a 
                        country of concern;
                            (iii) is owned by the government of a 
                        country of concern;
                            (iv) is under the direct or indirect 
                        control of such a government;
                            (v) is subject to the influence of such a 
                        government; or
                            (vi) is subject to intimidation by a public 
                        official of such a government;
                    (B) not less than 25 percent of the ownership 
                interest in which is held, in the aggregate, directly 
                or indirectly, by not less than 1 entity--
                            (i) included on a sanctions list; or
                            (ii) owned or controlled by the government 
                        of a country of concern;
                    (C) that has a subsidiary or parent organization 
                that--
                            (i) has its headquarters or principal place 
                        of business in a country of concern; or
                            (ii) is organized under the laws of, or 
                        otherwise subject to the jurisdiction of, a 
                        country of concern; or
                    (D) that the Secretary of the Treasury considers to 
                have an interest in property or interests in property 
                of an entity in which not less than 25 percent of the 
                ownership interest is held, in the aggregate, directly 
                or indirectly, by not less than 1 entity included on a 
                sanctions list.
            (5) Direct investment.--The term ``direct investment'' has 
        the meaning given that term in section 3 of the International 
        Investment and Trade in Services Survey Act (22 U.S.C. 3102).
            (6) Offshore financial center.--The term ``offshore 
        financial center'' means any country, special administrative 
        region, territory, or jurisdiction outside the United States 
        that acts as an intermediary for investments originating in the 
        United States and destined for countries of concern, through 
        which, on an annual basis--
                    (A) more than $100,000,000 in direct investments in 
                countries of concern or covered entities are made; or
                    (B) more than $500,000,000 in portfolio investments 
                in countries of concern or covered entities are made.
            (7) Portfolio investment.--The term ``portfolio 
        investment'' has the meaning given that term in section 3 of 
        the International Investment and Trade in Services Survey Act 
        (22 U.S.C. 3102).
            (8) Sanctions list.--The term ``sanctions list'' means--
                    (A) the Entity List maintained by the Bureau of 
                Industry and Security of the Department of Commerce and 
                set forth in Supplement No. 4 to part 744 of title 15, 
                Code of Federal Regulations;
                    (B) the list of specially designated nationals and 
                blocked persons maintained by the Office of Foreign 
                Assets Control of the Department of the Treasury 
                (commonly known as the ``SDN list'');
                    (C) the list of foreign financial institutions 
                subject to correspondent account or payable-through 
                account sanctions maintained by the Office of Foreign 
                Assets Control (commonly known as the ``CAPTA List'');
                    (D) the list of persons operating in sectors of the 
                Russian economy identified by the Secretary of the 
                Treasury pursuant to Executive Order 13662 (commonly 
                known as the ``Sectoral Sanctions Identifications 
                List''); or
                    (E) the Non-SDN Chinese Military Industrial Complex 
                List maintained by the Office of Foreign Assets 
                Control.
            (9) United states.--The term ``United States'' means the 50 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, Guam, the Virgin Islands, American Samoa, Wake Island, 
        Midway Islands, Kingman Reef, Johnston Atoll, the Northern 
        Mariana Islands, and any other territory or possession of the 
        United States.
            (10) United states person.--The term ``United States 
        person'' has the meaning given that term in section 3 of the 
        International Investment and Trade in Services Survey Act (22 
        U.S.C. 3102).
    (b) Report by Secretary of Commerce.--Not later than 1 year after 
the date of the enactment of this Act, and every 90 days thereafter, 
the Secretary of Commerce shall submit to the appropriate congressional 
committees a report that identifies, for the period specified in 
subsection (e)--
            (1) the value of direct investments by United States 
        persons in countries of concern, which shall--
                    (A) be disaggregated by sector and by the State in 
                which the investment originated; and
                    (B) account for investment occurring through 
                offshore financial centers;
            (2) the value of direct investments by United States 
        persons in covered entities, which shall--
                    (A) be disaggregated by sector; and
                    (B) account for investment occurring through 
                offshore financial centers; and
            (3) the number of direct investments by United States 
        persons in countries of concern in excess of--
                    (A) $5,000,000 in a single transaction; or
                    (B) $10,000,000 in the aggregate.
    (c) Report by Secretary of the Treasury.--Not later than 1 year 
after the date of the enactment of this Act, and every 90 days 
thereafter, the Secretary of the Treasury shall submit to the 
appropriate congressional committees a report that identifies, for the 
period specified in subsection (e)--
            (1) the value of portfolio investments by United States 
        persons in countries of concern, which shall--
                    (A) be disaggregated by sector and by the State in 
                which the investment originated; and
                    (B) account for investment occurring through 
                offshore financial centers;
            (2) the value of portfolio investments by United States 
        persons in covered entities, which shall--
                    (A) be disaggregated by sector; and
                    (B) account for investment occurring through 
                offshore financial centers;
            (3) the number of portfolio investments by United States 
        persons in countries of concern in excess of--
                    (A) $10,000,000 in a single transaction; or
                    (B) $25,000,000 in the aggregate; and
            (4) the value of portfolio investments by United States 
        persons in initial offerings for sale to the public of common 
        equity securities of covered entities and secondary market 
        trading in such securities.
    (d) Report by Securities and Exchange Commission.--Not later than 1 
year after the date of the enactment of this Act, and every 90 days 
thereafter, the Securities and Exchange Commission shall submit to the 
appropriate congressional committees a report that, for the period 
specified in subsection (e), identifies the following:
            (1) Each instance in which a covered United States business 
        spun off a separate entity that subsequently operated in a 
        country of concern.
            (2) Each joint venture entered into between a covered 
        United States business and a covered entity.
            (3) Each instance in which a covered United States business 
        merged with, acquired, or was acquired by a covered entity.
            (4) Each instance in which the value of expanded operations 
        of a covered United States business in a country of concern 
        exceeds--
                    (A) $5,000,000 in a single transaction; or
                    (B) $10,000,000 in the aggregate.
            (5) Each instance in which a covered United States business 
        made a direct investment in a country of concern.
    (e) Period Specified.--The period specified in this subsection is--
            (1) in the case of the first report required by subsection 
        (b), (c), or (d), the 1-year period preceding submission of the 
        report; and
            (2) in the case of any subsequent report required by any 
        such subsection, the 90-day period preceding submission of the 
        report.
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