[Congressional Record Volume 168, Number 156 (Tuesday, September 27, 2022)]
[Senate]
[Page S5087]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 5727. Mr. SCOTT of Florida submitted an amendment intended to be 
proposed to amendment SA 5499 submitted by Mr. Reed (for himself and 
Mr. Inhofe) and intended to be proposed to the bill H.R. 7900, to 
authorize appropriations for fiscal year 2023 for military activities 
of the Department of Defense, for military construction, and for 
defense activities of the Department of Energy, to prescribe military 
personnel strengths for such fiscal year, and for other purposes; which 
was ordered to lie on the table; as follows:

        At the end of title XII, add the following:

     Subtitle G--Sanctions With Respect to Chinese Communist Party

     SEC. 1281. SHORT TITLE.

       This subtitle may be cited as the ``Sanction Transactions 
     Originating from Pernicious Chinese Companies and Policies 
     Act of 2022'' or the ``STOP CCP Act of 2022''.

     SEC. 1282. DEFINITIONS.

       In this subtitle:
       (1) Chinese entity.--The term ``Chinese entity'' means 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.
       (2) Publicly traded securities.--The term ``publicly traded 
     securities'' includes--
       (A) any security (as defined in section 3(a) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78c(a))) 
     denominated in any currency that trades on a securities 
     exchange, or through the method of trading that is commonly 
     referred to as ``over-the-counter'', in any jurisdiction; and
       (B) any security that is derivative of or designed to 
     provide investment exposure to a security described in 
     subparagraph (A).
       (3) United states person.--The term ``United States 
     person'' means--
       (A) an individual who is a United States citizen or an 
     alien lawfully admitted for permanent residence to the United 
     States;
       (B) an entity organized under the laws of the United States 
     or any jurisdiction within the United States, including a 
     foreign branch of such an entity; or
       (C) any person in the United States.

     SEC. 1283. PROHIBITION ON SECURITIES INVESTMENTS THAT FINANCE 
                   CERTAIN COMPANIES OF THE PEOPLE'S REPUBLIC OF 
                   CHINA.

       The following activities by a United States person are 
     prohibited:
       (1) The purchase or sale of any publicly traded securities, 
     or any publicly traded securities that are derivative of such 
     securities or are designed to provide investment exposure to 
     such securities, issued by any person determined by the 
     Secretary of the Treasury, in consultation with the Secretary 
     of State, and, as the Secretary of the Treasury deems 
     appropriate, the Secretary of Defense--
       (A) to operate or have operated in the defense and related 
     materiel sector or the surveillance technology sector of the 
     economy of the People's Republic of China; or
       (B) to own or control, or to be owned or controlled by, 
     directly or indirectly, a person described in subparagraph 
     (A).
       (2) The execution, support, or servicing of a purchase or 
     sale described in paragraph (1).
       (3) Any transaction that evades or avoids, has the purpose 
     of evading or avoiding, causes a violation of, or attempts to 
     violate the prohibition under paragraph (1).
       (4) Any conspiracy formed to violate the prohibition under 
     paragraph (1).

     SEC. 1284. EXPANSION OF NON-SPECIALLY DESIGNATED NATIONALS 
                   CHINESE MILITARY-INDUSTRIAL COMPLEX COMPANIES 
                   LIST.

       Not later than 180 days after the date of the enactment of 
     this Act, the Secretary of the Treasury shall prescribe 
     regulations to expand the Non-Specially Designated Nationals 
     Chinese Military-Industrial Complex Companies List (commonly 
     referred to as the ``NS-CMIC List'') of the Office of Foreign 
     Assets Control to include--
       (1) any entity engaged in supporting the Chinese military-
     industrial complex;
       (2) any entity that is owned or controlled by an entity 
     described in paragraph (1);
       (3) any entity that is formed from a spin-off, merger or 
     acquisition, or sale of a business unit involving an entity 
     described in paragraph (1) or is otherwise a successor to 
     such an entity; and
       (4) any entity that provides financial services for an 
     entity described in paragraph (1), (2), or (3).

     SEC. 1285. CLOSING SANCTIONS LOOPHOLES.

       (a) In General.--If sanctions are imposed with respect to a 
     Chinese entity under any statute or executive order described 
     in subsection (b), sanctions shall be imposed with respect to 
     the Chinese entity under each other applicable statute and 
     executive order described in subsection (b) unless--
       (1) the President waives the imposition of such sanctions; 
     or
       (2) a waiver provided for under such other statute or 
     executive order applies.
       (b) Statutes and Executive Orders Described.--A statute or 
     executive order described in this subsection is a statute or 
     executive order that provides for the imposition of 
     sanctions.
       (c) National Security Waiver.--
       (1) In general.--The President may waive the application of 
     any sanction imposed with respect to any person under 
     subsection (a) if the President determines and certifies to 
     Congress that such a waiver is important to the national 
     security interests of the United States.
       (2) Notification of and report to congress.--If the 
     President decides to exercise the waiver authority provided 
     under paragraph (1), the President shall, not less than 20 
     days before the waiver takes effect, submit to Congress a 
     report--
       (A) notifying Congress of the decision to exercise the 
     waiver authority; and
       (B) fully articulating the rationale and circumstances that 
     led to the decision.
       (d) Termination of Sanctions to Be Reported to Congress.--
     Not later than 20 days after the termination of any sanction 
     under subsection (a), the President shall promptly submit to 
     Congress a report on that termination and the reasons for the 
     termination.
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