[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3948 Introduced in Senate (IS)]

<DOC>






118th CONGRESS
  2d Session
                                S. 3948

 To amend the Defense Production Act of 1950 to better address certain 
  transactions by foreign entities of concern, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 14, 2024

  Ms. Stabenow (for herself and Mr. Peters) introduced the following 
 bill; which was read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To amend the Defense Production Act of 1950 to better address certain 
  transactions by foreign entities of concern, 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 ``Protecting Against Foreign Adversary 
Investments Act of 2024''.

SEC. 2. AUTHORITY OF COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED 
              STATES TO REVIEW CERTAIN REAL ESTATE PURCHASES BY FOREIGN 
              ENTITIES OF CONCERN.

    (a) In General.--Section 721(a)(4) of the Defense Production Act of 
1950 (50 U.S.C. 4565(a)(4)) is amended--
            (1) in subparagraph (A)--
                    (A) in clause (i), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in clause (ii), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following new clause:
                            ``(iii) any transaction described in 
                        subparagraph (B)(vi) proposed or pending on or 
                        after the date of the enactment of this 
                        clause.'';
            (2) in subparagraph (B), by adding at the end the following 
        new clause:
                            ``(vi) Subject to subparagraph (C), the 
                        purchase or lease by, or a concession to, a 
                        foreign entity of concern of private or public 
                        real estate in the United States if--
                                    ``(I) the value or fair market 
                                value of such purchase, lease, or 
                                concession exceeds $1,000,000;
                                    ``(II) the real estate exceeds 100 
                                acres;
                                    ``(III) the aggregate value or fair 
                                market value of such purchase, lease, 
                                or concession, in combination with the 
                                value or fair market value of other 
                                purchases or leases by, or concessions 
                                to, such foreign entity during the 3-
                                year period preceding the date of such 
                                purchase, lease, or concession, exceeds 
                                $1,000,000;
                                    ``(IV) the aggregate acreage of 
                                such purchase, lease, or concession, in 
                                combination with the aggregate acreage 
                                of other purchases or leases by, or 
                                concessions to, such foreign entity 
                                during the 3-year period preceding the 
                                date of such purchase, lease, or 
                                concession, exceeds 100 acres; or
                                    ``(V) the structure of such 
                                purchase, lease, or concession is 
                                designed or intended to evade or 
                                circumvent the application of this 
                                clause, as determined by the 
                                Committee.''; and
            (3) in subparagraph (C)(i), by striking ``subparagraph 
        (B)(ii)'' and inserting ``clause (ii) or (iv) of subparagraph 
        (B)''.
    (b) Definition of Foreign Entities of Concern.--Section 721(a) of 
the Defense Production Act of 1950 (50 U.S.C. 4565(a)) is amended--
            (1) by redesignating paragraphs (7) through (13) as 
        paragraphs (8) through (14), respectively; and
            (2) by inserting after paragraph (6) the following new 
        paragraph:
            ``(7) Foreign entity of concern.--The term `foreign entity 
        of concern' has the meaning given that term in section 9901 of 
        the William M. (Mac) Thornberry National Defense Authorization 
        Act for Fiscal Year 2021 (15 U.S.C. 4651).''.
    (c) Factors To Be Considered.--Section 721(f) of the Defense 
Production Act of 1950 (50 U.S.C. 4565(f)) is amended--
            (1) by redesignating paragraphs (8) through (11) as 
        paragraphs (10) through (13), respectively; and
            (2) by inserting after paragraph (7) the following new 
        paragraphs:
            ``(8) the potential effects of a proposed or pending 
        transaction on the national security of the United States as a 
        result of the impact of the transaction on the economic 
        security of the United States;
            ``(9) the factors described in section 3 of Executive Order 
        14083 (50 U.S.C. 4565 note; relating to consideration of 
        evolving national security risks by the Committee on Foreign 
        Investment in the United States), as in effect on January 1, 
        2024;''.
    (d) Mandatory Declarations.--Section 721(b)(1)(C)(v)(IV) of the 
Defense Production Act of 1950 (50 U.S.C. 4565(b)(1)(C)(v)(IV)) is 
amended by adding at the end the following:
                                            ``(hh) Required 
                                        declarations for certain real 
                                        estate transactions.--
                                        Notwithstanding item (dd), the 
                                        parties to a real estate 
                                        transaction described in 
                                        subsection (a)(4)(B)(vi) shall 
                                        submit a declaration described 
                                        in subclause (I) with respect 
                                        to the transaction.''.
    (e) Reports Required.--
            (1) Retroactive applicability.--Not later than 180 days 
        after the date of the enactment of this Act, the Secretary of 
        the Treasury, in coordination with Secretary of State and the 
        Secretary of Homeland Security, shall submit to Congress a 
        report that includes an assessment of the feasibility of 
        requiring retroactive mitigation measures or divestment of real 
        estate described in clause (vi) of section 721(a)(4)(B) of the 
        Defense Production Act of 1950, as added by this section, that 
        is owned by a foreign entity of concern (as defined in 
        paragraph (7) of section 721(a) of such Act, as amended by this 
        section) that presents a threat to national security (as 
        determined by the Committee on Foreign Investment in the United 
        States).
            (2) Additional resources.--Not later than 180 after the 
        date of the enactment of this Act, the Secretary of the 
        Treasury and the Committee on Foreign Investment in the United 
        States shall submit to Congress a report describing any 
        statutory or regulatory changes necessary to carry out this 
        section and the amendments made by this section.
    (f) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act and apply with respect 
to any covered transaction the review or investigation of which is 
initiated under section 721 of the Defense Production Act of 1950 on or 
after such date of enactment.

SEC. 3. REPORT ON PUBLIC OR PRIVATE REAL ESTATE PURCHASING ACTIVITIES 
              IN THE UNITED STATES BY FOREIGN ENTITIES OF CONCERN.

    (a) Reports.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, and annually thereafter, the 
        Director, in coordination with the Secretary of Homeland 
        Security and the head of any other appropriate Federal agency, 
        shall submit to the appropriate congressional committees a 
        report containing a description of the national security risks 
        of the purchase, ownership, or lease of public or private real 
        estate by a foreign entity of concern.
            (2) Contents.--Each report submitted under paragraph (1) 
        shall include, with respect to the year covered by the report, 
        the following:
                    (A) A list of all real estate in the United States 
                described in clause (vi) of section 721(a)(4)(B) of the 
                Defense Production Act of 1950, as added by this Act.
                    (B) An analysis of the potential use of real estate 
                for industrial espionage or intellectual property 
                transfer by a foreign entity of concern.
                    (C) An analysis of the potential use by a foreign 
                entity of concern of real estate in close proximity to 
                manufacturing facilities, water sources, and other 
                critical infrastructure to monitor, interrupt, or 
                disrupt activities critical to the national and 
                economic security of the United States.
                    (D) An analysis of other threats to the economic 
                security or national security of the United States due 
                to the ownership, including ownership in the aggregate, 
                of real estate by a foreign entity of concern.
            (3) Unclassified form.--Each report submitted under this 
        subsection shall--
                    (A) be submitted in unclassified form, but may 
                include a classified annex; and
                    (B) be consistent with the protection of 
                intelligence sources and methods.
            (4) Publicly available.--Upon submitting a report under 
        paragraph (1), the Director shall make publicly available the 
        information included in such report under paragraph (2)(A).
    (b) Definitions.--In this section:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Energy and Commerce, the 
                Committee on Homeland Security, and the Permanent 
                Select Committee on Intelligence of the House of 
                Representatives; and
                    (B) the Committee on Environment and Public Works, 
                the Committee on Homeland Security and Governmental 
                Affairs, and the Select Committee on Intelligence of 
                the Senate.
            (2) Foreign entity of concern.--The term ``foreign entity 
        of concern'' has the meaning given that term in section 9901 of 
        the William M. (Mac) Thornberry National Defense Authorization 
        Act for Fiscal Year 2021 (15 U.S.C. 4651).
            (3) Director.--The term ``Director'' means the Director of 
        National Intelligence.
            (4) State.--The term ``State'' has the meaning given such 
        term in section 101 of the Comprehensive Environmental 
        Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
        9601).

SEC. 4. BEST PRACTICES FOR STATE AND LOCAL OFFICIALS RELATING TO 
              POTENTIAL TRANSACTIONS WITH FOREIGN ENTITIES OF CONCERN.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Director of National Intelligence, in 
coordination with the Secretary of Homeland Security, the Secretary of 
Commerce, and the heads of any other Federal department or agencies 
determined relevant by the Director of National Intelligence, shall 
develop and make publicly available best practices for use by State and 
local officials with respect to engaging in a potential transaction 
with a foreign entity of concern. Such best practices shall including 
an identification of--
            (1) common risks associated with engaging a foreign entity 
        of concern with respect to such a potential transaction; and
            (2) Federal resources available to assist such officials in 
        determining the specific national security risks, if any, of 
        such a potential transaction.
    (b) Foreign Entity of Concern Defined.--In this section, the term 
``foreign entity of concern'' has the meaning given that term in 
section 9901 of the William M. (Mac) Thornberry National Defense 
Authorization Act for Fiscal Year 2021 (15 U.S.C. 4651).
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