[Congressional Record Volume 168, Number 198 (Tuesday, December 20, 2022)]
[Senate]
[Pages S9657-S9658]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 6580. Mr. HEINRICH (for Mr. Van Hollen) proposed an amendment to
the bill S. 1294, to authorize the imposition of sanctions with respect
to foreign persons that have engaged in significant theft of trade
secrets of United States persons, and for other purposes; as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Protecting American
Intellectual Property Act of 2022''.
SEC. 2. IMPOSITION OF SANCTIONS WITH RESPECT TO THEFT OF
TRADE SECRETS OF UNITED STATES PERSONS.
(a) Report Required.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, and not less frequently than
annually thereafter, the President shall submit to the
appropriate congressional committees a report--
(A) identifying any foreign person the President
determines, during the period specified in paragraph (2)--
(i) has knowingly engaged in, or benefitted from,
significant theft of trade secrets of United States persons,
if the theft of such trade secrets occurred on or after such
date of enactment and is reasonably likely to result in, or
has materially contributed to, a significant threat to the
national security, foreign policy, or economic health or
financial stability of the United States;
(ii) has provided significant financial, material, or
technological support for, or goods or services in support of
or to benefit significantly from, such theft;
(iii) is an entity that is owned or controlled by, or that
has acted or purported to act for or on behalf of, directly
or indirectly, any foreign person identified under clause (i)
or (ii); or
(iv) is a chief executive officer or member of the board of
directors of any foreign entity identified under clause (i)
or (ii);
(B) describing the nature, objective, and outcome of the
theft of trade secrets each foreign person described in
subparagraph (A)(i) engaged in or benefitted from; and
(C) assessing whether any chief executive officer or member
of the board of directors described in clause (iv) of
subparagraph (A) engaged in, or benefitted from, activity
described in clause (i) or (ii) of that subparagraph.
(2) Period specified.--The period specified in this
paragraph is--
(A) in the case of the first report required by paragraph
(1), the period beginning on the date of the enactment of
this Act and ending on the date on which the report is
required to be submitted; and
(B) in the case of each subsequent report required by
paragraph (1), the one-year period preceding the date on
which the report is required to be submitted.
(3) Form of report.--Each report required by paragraph (1)
shall be submitted in unclassified form but may include a
classified annex.
(b) Authority to Impose Sanctions.--
(1) Sanctions applicable to entities.--In the case of a
foreign entity identified under subparagraph (A) of
subsection (a)(1) in the most recent report submitted under
that subsection, the President shall impose 5 or more of the
following:
(A) Blocking of property.--The President may, pursuant to
the International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.), block and prohibit all transactions in all
property and interests in property of the entity if such
property and interests in property are in the United States,
come within the United States, or are or come within the
possession or control of a United States person.
(B) Inclusion on entity list.--The President may include
the entity on 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 the Export
Administration Regulations, for activities contrary to the
national security or foreign policy interests of the United
States.
(C) Export-import bank assistance for exports to sanctioned
persons.--The President may direct the Export-Import Bank of
the United States not to give approval to the issuance of any
guarantee, insurance, extension of credit, or participation
in the extension of credit in connection with the export of
any goods or services to the entity.
(D) Loans from united states financial institutions.--The
President may prohibit any United States financial
institution from making loans or providing credits to the
entity totaling more than $10,000,000 in any 12-month period
unless the person is engaged in activities to relieve human
suffering and the loans or credits are provided for such
activities.
(E) Loans from international financial institutions.--The
President may direct the United States executive director to
each international financial institution to use the voice and
vote of the United States to oppose any loan from the
international financial institution that would benefit the
entity.
(F) Prohibitions on financial institutions.--The following
prohibitions may be imposed against the entity if the entity
is a financial institution:
(i) Prohibition on designation as primary dealer.--Neither
the Board of Governors of the Federal Reserve System nor the
Federal Reserve Bank of New York may designate, or permit the
continuation of any prior designation of, the financial
institution as a primary dealer in United States Government
debt instruments.
(ii) Prohibition on service as a repository of government
funds.--The financial institution may not serve as agent of
the United States Government or serve as repository for
United States Government funds.
The imposition of either sanction under clause (i) or (ii)
shall be treated as one sanction for purposes of this
paragraph, and the imposition of both such sanctions shall be
treated as 2 sanctions for purposes of this paragraph.
(G) Procurement sanction.--The United States Government may
not procure, or enter into any contract for the procurement
of, any goods or services from the entity.
(H) Foreign exchange.--The President may, pursuant to such
regulations as the President may prescribe, prohibit any
transactions in foreign exchange that are subject to the
jurisdiction of the United States and in which the entity has
any interest.
(I) Banking transactions.--The President may, pursuant to
such regulations as the President may prescribe, prohibit any
transfers of credit or payments between financial
institutions or by, through, or to any financial institution,
to the extent that such transfers or payments are subject to
the jurisdiction of the United States and involve any
interest of the entity.
(J) Ban on investment in equity or debt of sanctioned
person.--The President may, pursuant to such regulations or
guidelines as the President may prescribe, prohibit any
United States person from investing in or purchasing
significant amounts of equity or debt instruments of the
entity.
(K) Exclusion of corporate officers.--The President may
direct the Secretary of State to deny a visa to, and the
Secretary of Homeland Security to exclude from the United
States, any alien that the President determines is a
corporate officer or principal of, or a shareholder with a
controlling interest in, the entity.
[[Page S9658]]
(L) Sanctions on principal executive officers.--The
President may impose on the principal executive officer or
officers of the entity, or on individuals performing similar
functions and with similar authorities as such officer or
officers, any of the sanctions under this paragraph.
(2) Sanctions applicable to individuals.--In the case of an
alien identified under subparagraph (A) of subsection (a)(1)
in the most recent report submitted under that subsection,
the following shall apply:
(A) Blocking of property.--The President shall, pursuant to
the International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.), block and prohibit all transactions in all
property and interests in property of the alien if such
property and interests in property are in the United States,
come within the United States, or are or come within the
possession or control of a United States person.
(B) Ineligibility for visas, admission, or parole.--
(i) Visas, admission, or parole.--An alien described in
subparagraph (A) of subsection (a)(1) is--
(I) inadmissible to the United States;
(II) ineligible to receive a visa or other documentation to
enter the United States; and
(III) otherwise ineligible to be admitted or paroled into
the United States or to receive any other benefit under the
Immigration and Nationality Act (8 U.S.C. 1101 et seq.).
(ii) Current visas revoked.--
(I) In general.--An alien described in subparagraph (A) of
subsection (a)(1) is subject to revocation of any visa or
other entry documentation regardless of when the visa or
other entry documentation is or was issued.
(II) Immediate effect.--A revocation under subclause (I)
shall--
(aa) take effect pursuant to section 221(i) of the
Immigration and Nationality Act (8 U.S.C. 1201(i)); and
(bb) cancel any other valid visa or entry documentation
that is in the alien's possession.
(c) National Interest Waiver.--The President may waive the
imposition of sanctions under subsection (b) with respect to
a person if the President--
(1) determines that such a waiver is in the national
interests of the United States; and
(2) not more than 15 days after issuing the waiver, submits
to the appropriate congressional committees a notification of
the waiver and the reasons for the waiver.
(d) Implementation; Penalties.--
(1) Implementation.--The President may exercise all
authorities provided under sections 203 and 205 of the
International Emergency Economic Powers Act (50 U.S.C. 1702
and 1704) to carry out this section.
(2) Penalties.--A person that violates, attempts to
violate, conspires to violate, or causes a violation of this
section or any regulation, license, or order issued to carry
out this section shall be subject to the penalties set forth
in subsections (b) and (c) of section 206 of the
International Emergency Economic Powers Act (50 U.S.C. 1705)
to the same extent as a person that commits an unlawful act
described in subsection (a) of that section.
(e) Exceptions.--
(1) Intelligence activities.--This section shall not apply
with respect to activities subject to the reporting
requirements under title V of the National Security Act of
1947 (50 U.S.C. 3091 et seq.) or any authorized intelligence
activities of the United States.
(2) Law enforcement activities.--Sanctions under this
section shall not apply with respect to any authorized law
enforcement activities of the United States.
(3) Exception to comply with international agreements.--
Sanctions under this section shall not apply with respect to
the admission of an alien to the United States if such
admission is necessary to comply with the obligations of the
United States under the Agreement regarding the Headquarters
of the United Nations, signed at Lake Success June 26, 1947,
and entered into force November 21, 1947, between the United
Nations and the United States, or the Convention on Consular
Relations, done at Vienna April 24, 1963, and entered into
force March 19, 1967, or other international obligations.
(4) Exception relating to importation of goods.--
(A) In general.--The authority or a requirement to impose
sanctions under this section shall not include the authority
or a requirement to impose sanctions on the importation of
goods.
(B) Good defined.--In this paragraph, the term ``good''
means any article, natural or manmade substance, material,
supply, or manufactured product, including inspection and
test equipment, and excluding technical data.
(f) Sunset.--This section shall terminate on the date that
is 7 years after the date of the enactment of this Act.
(g) Definitions.--In this section:
(1) Admission; admitted; alien; lawfully admitted for
permanent residence.--The terms ``admission'', ``admitted'',
``alien'', and ``lawfully admitted for permanent residence''
have the meanings given those terms in section 101 of the
Immigration and Nationality Act (8 U.S.C. 1101).
(2) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Banking, Housing, and Urban Affairs
and the Committee on Foreign Relations of the Senate; and
(B) the Committee on Financial Services and the Committee
on Foreign Affairs of the House of Representatives.
(3) Entity.--The term ``entity'' means a partnership,
association, trust, joint venture, corporation, group,
subgroup, or other organization.
(4) Export administration regulations.--The term ``Export
Administration Regulations'' has the meaning given that term
in section 1742 of the Export Control Reform Act of 2018 (50
U.S.C. 4801).
(5) Foreign entity.--The term ``foreign entity'' means an
entity that is not a United States person.
(6) Foreign person.--The term ``foreign person'' means any
person that is not a United States person.
(7) Knowingly.--The term ``knowingly'', with respect to
conduct, a circumstance, or a result, means that a person has
actual knowledge, or should have known, of the conduct, the
circumstance, or the result.
(8) Person.--The term ``person'' means an individual or
entity.
(9) Trade secret.--The term ``trade secret'' has the
meaning given that term in section 1839 of title 18, United
States Code.
(10) United states person.--The term ``United States
person'' means--
(A) 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 of any jurisdiction within the United States, including a
foreign branch of such an entity; or
(C) any person in the United States.
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