[Congressional Record Volume 169, Number 120 (Thursday, July 13, 2023)]
[Senate]
[Pages S2714-S2716]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 598. Mr. TESTER (for himself, Mr. Rounds, and Mr. Braun) submitted
an amendment intended to be proposed by him to the bill S. 2226, to
authorize appropriations for fiscal year 2024 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 appropriate place, insert the following:
DIVISION F--PROTECTING AMERICAN AGRICULTURE FROM FOREIGN ADVERSARIES
ACT OF 2023
SEC. 6001. SHORT TITLE.
This division may be cited as the ``Protecting American
Agriculture from Foreign Adversaries Act of 2023''.
SEC. 6002. DEFINITIONS.
In this division:
(1) Covered foreign person.--
(A) In general.--Except as provided by subparagraph (B),
the term ``covered foreign person''--
(i) has the meaning given the term ``a person owned by,
controlled by, or subject to the jurisdiction or direction of
a foreign adversary'' in section 7.2 of title 15, Code of
Federal Regulations (as in effect on the date of the
enactment of the National Defense Authorization Act for
Fiscal Year 2024), except that each reference to ``foreign
adversary'' in that definition shall be deemed to be a
reference to the government of a covered country; and
(ii) includes an entity that--
(I) is registered in or organized under the laws of a
covered country;
(II) has a principal place of business in a covered
country; or
(III) has a subsidiary with a principal place of business
in a covered country.
(B) Exclusions.--The term ``covered person'' does not
include a United States citizen or an alien lawfully admitted
for permanent residence to the United States.
(2) Covered country.--The term ``covered country'' means
any of the following:
(A) The People's Republic of China.
(B) The Russian Federation.
(C) The Islamic Republic of Iran.
(D) The Democratic People's Republic of Korea.
(3) FinCEN.--The term ``FinCEN'' means the Financial Crimes
Enforcement Network of the Department of the Treasury.
[[Page S2715]]
TITLE LXI--IDENTIFICATION OF SHELL CORPORATIONS
SEC. 6101. MODIFICATION OF FINCEN REPORTING REQUIREMENTS.
(1) In general.--The Director of FinCEN shall identify each
reporting company, as defined in section 5336 of title 31,
United States Code, that is owned by a covered foreign
person.
(2) Report.--Not later than two business days after
identifying a reporting company under paragraph (1), the
Director of FinCEN shall provide to the Committee on Foreign
Investment in the United States and the Secretary of
Agriculture information on such reporting company.
TITLE LXII--FOREIGN PURCHASES OF AGRICULTURAL LAND AND AGRIBUSINESSES
SEC. 6201. INVESTIGATIVE ACTIONS.
(a) Investigative Actions.--Section 4 of the Agricultural
Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3503) is
amended to read as follows:
``SEC. 4. INVESTIGATIVE ACTIONS.
``(a) In General.--The Secretary shall appoint an employee
in the Senior Executive Service (as described in section 3131
of title 5, United States Code) of the Department of
Agriculture to serve as Chief of Operations of Investigative
Actions (referred to in this section as the `Chief of
Operations'), who shall hire, appoint, and maintain
additional employees to monitor compliance with the
provisions of this Act.
``(b) Chief of Operations.--The Chief of Operations may
serve in such position simultaneously with a concurrent
position within the Department of Agriculture.
``(c) Security.--The Secretary shall--
``(1) provide classified storage, meeting, and other
spaces, as necessary, for personnel; and
``(2) assist personnel in obtaining security clearances.
``(d) Duties.--The Chief of Operations shall--
``(1) monitor compliance with this Act;
``(2) refer noncompliance with this Act to the Secretary,
the Farm Service Agency, and any other appropriate authority;
``(3) conduct investigations, in coordination with the
Department of Justice, the Federal Bureau of Investigation,
the Department of the Treasury, the National Security
Council, and State and local law enforcement agencies, on
malign efforts--
``(A) to steal agricultural knowledge and technology; and
``(B) to disrupt the United States agricultural base;
``(4) seek to enter into memoranda of agreement and
memoranda of understanding with the Federal agencies
described in paragraph (3)--
``(A) to ensure compliance with this Act; and
``(B) to prevent the malign efforts described in that
paragraph;
``(5) refer to the Committee on Foreign Investment in the
United States transactions that--
``(A) raise potential national security concerns; and
``(B) result in agricultural land acquisition by a foreign
person that is a citizen of, or headquartered in, as
applicable, a foreign entity of concern; and
``(6) publish annual reports that summarize the information
contained in every report received by the Secretary under
section 2 during the period covered by the report.
``(e) Administration.--The Chief of Operations shall report
to--
``(1) the Secretary; or
``(2) if delegated by the Secretary, to the Administrator
of the Farm Service Agency.''.
(b) Definition of Foreign Entity of Concern.--Section 9 of
the Agricultural Foreign Investment Disclosure Act of 1978 (7
U.S.C. 3508) is amended--
(1) in the matter preceding paragraph (1), by striking
``For purposes of this Act--'' and inserting ``In this
Act:'';
(2) in each of paragraphs (1) through (6)--
(A) by striking ``the term'' and inserting ``The term'';
and
(B) by inserting a paragraph heading, the text of which
comprises the term defined in that paragraph;
(3) by redesignating paragraphs (2) through (6) as
paragraphs (3), (4), (6), (7), and (8), respectively;
(4) by inserting after paragraph (1) the following:
``(2) Foreign entity of concern.--The term `foreign entity
of concern' has the meaning given the term `covered foreign
person' in section 6002 of the Protecting American
Agriculture from Foreign Adversaries Act of 2023.''; and
(5) by inserting after paragraph (4) (as so redesignated)
the following:
``(5) Malign effort.--The term `malign effort' means any
hostile effort undertaken by, at the direction of, on behalf
of, or with the substantial support of the government of a
foreign entity of concern.''.
(c) Reports.--The Agricultural Foreign Investment
Disclosure Act of 1978 (7 U.S.C. 3501 et seq.) is amended by
adding at the end the following:
``SEC. 11. REPORTS.
``(a) Initial Report.--Not later than 180 days after the
date of enactment of this section, the Secretary shall submit
to Congress a report that describes the progress of the
Secretary in implementing the amendments made by subsections
(a) and (b) of section 6201 of the Protecting American
Agriculture from Foreign Adversaries Act of 2023.
``(b) Report on Tracking Covered Transactions.--Not later
than 180 days after the date of enactment of this section,
the Secretary shall submit to Congress a report on the
feasibility of--
``(1) establishing a mechanism for quantifying the threats
posed by foreign entities of concern to United States food
security, biosecurity, food safety, environmental protection,
and national defense; and
``(2) building, and submitting to the Committee on Foreign
Investment in the United States for further review, a
rigorous discovery and review process to review transactions
described in section 721(a)(4)(B)(vi) of the Defense
Production Act of 1950 (50 U.S.C. 4565(a)(4)(B)(vi)).
``(c) Yearly Report.--Not later than 1 year after the date
of enactment of this section, and annually thereafter for the
following 10 years, the Secretary shall submit to Congress a
report on the activities of the Secretary pursuant to this
Act during the year covered by the report.''.
SEC. 6202. PROHIBITION ON PURCHASE OR LEASE OF AGRICULTURAL
LAND IN THE UNITED STATES BY PERSONS ASSOCIATED
WITH CERTAIN FOREIGN GOVERNMENTS.
(a) Definitions.--In this section:
(1) Agricultural land.--
(A) In general.--The term ``agricultural land'' has the
meaning given the term in section 9 of the Agricultural
Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3508).
(B) Inclusion.--The term ``agricultural land'' includes
land described in section 9(1) of the Agricultural Foreign
Investment Disclosure Act of 1978 (7 U.S.C. 3508(1)) that is
used for ranching purposes.
(2) United states.--The term ``United States'' includes any
State, territory, or possession of the United States.
(b) Prohibition.--Notwithstanding any other provision of
law, the President shall take such actions as may be
necessary to prohibit the purchase or lease by covered
foreign persons of--
(1) public agricultural land that is owned by the United
States and administered by the head of any Federal department
or agency, including the Secretary, the Secretary of the
Interior, and the Secretary of Defense; or
(2) private agricultural land located in the United States.
(c) 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 subsection (b).
(d) Penalties.--A person that knowingly violates, attempts
to violate, conspires to violate, or causes a violation of
subsection (b) or any regulation, license, or order issued to
carry out that subsection 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) Rule of Construction.--Nothing in this section may be
construed--
(1) to prohibit or otherwise affect the purchase or lease
of public or private agricultural land described in
subsection (b) by any person other than a covered foreign
person;
(2) to prohibit or otherwise affect the use of public or
private agricultural land described in subsection (b) that is
transferred to or acquired by a person other than a covered
foreign person from a covered foreign person; or
(3) to require a covered foreign person that owns or leases
public or private agricultural land described in subsection
(b) as of the date of enactment of this Act to sell that
land.
SEC. 6203. TRANSPARENCY IN AGRICULTURAL FOREIGN INVESTMENT
DISCLOSURE.
(a) In General.--Section 7 of the Agricultural Foreign
Investment Disclosure Act of 1978 (7 U.S.C. 3506) is amended
to read as follows:
``SEC. 7. PUBLIC DATA SETS.
``(a) In General.--Not later than 2 years after the date of
enactment of the Consolidated Appropriations Act, 2023
(Public Law 117-328), the Secretary shall publish in the
internet database established under section 773 of division A
of that Act human-readable and machine-readable data sets
that--
``(1) contain all data that the Secretary possesses
relating to reporting under this Act from each report
submitted to the Secretary under section 2; and
``(2) as soon as practicable, but not later than 30 days,
after the date of receipt of any report under section 2,
shall be updated with the data from that report.
``(b) Included Data.--The data sets established under
subsection (a) shall include--
``(1) a description of--
``(A) the purchase price paid for, or any other
consideration given for, each interest in agricultural land
for which a report is submitted under section 2; and
``(B) updated estimated values of each interest in
agricultural land described in subparagraph (A), as that
information is made available to the Secretary, based on the
most recently assessed value of the agricultural land or
another comparable method determined by the Secretary; and
``(2) with respect to any agricultural land for which a
report is submitted under section 2, updated descriptions of
each foreign person who holds an interest in at least 1
percent of the agricultural land, as that information is made
available to the Secretary, categorized as a majority owner
or a minority owner that holds an interest in the
agricultural land.''.
[[Page S2716]]
(b) Deadline for Database Establishment.--Section 773 of
division A of the Consolidated Appropriations Act, 2023
(Public Law 117-328), is amended, in the first proviso, by
striking ``3 years'' and inserting ``2 years''.
(c) Definition of Foreign Person.--Section 9(4) of the
Agricultural Foreign Investment Disclosure Act of 1978 (7
U.S.C. 3508(4)) (as so redesignated) is amended--
(1) in subparagraph (C)(ii)(IV), by striking ``and'' at the
end;
(2) in subparagraph (D), by inserting ``and'' after the
semicolon; and
(3) by adding at the end the following:
``(E) any person, other than an individual or a government,
that issues equity securities that are primarily traded on a
foreign securities exchange within--
``(i) Iran;
``(ii) North Korea;
``(iii) the People's Republic of China; or
``(iv) the Russian Federation;''.
TITLE LXIII--COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED STATES
SEC. 6301. CONSIDERATION OF FOOD INSECURITY IN DETERMINATIONS
OF THE COMMITTEE ON FOREIGN INVESTMENT IN THE
UNITED STATES.
Section 721(f) of the Defense Production Act of 1950 (50
U.S.C. 4565(f)) is amended--
(1) by redesignating paragraph (11) as paragraph (13);
(2) by redesignating paragraphs (8) through (10) as
paragraphs (9) through (11), respectively;
(3) by inserting after paragraph (7) the following new
paragraph:
``(8) the potential follow-on national security effects of
the risks posed by the proposed or pending transaction to
United States food security, food safety, biosecurity,
environmental protection, or national defense;'';
(4) in paragraph (11) (as so redesignated), by striking ``;
and'' and inserting a semicolon; and
(5) by inserting after paragraph (11) (as so redesignated)
the following new paragraph:
``(12) the potential effects of the proposed or pending
transaction on the security of the food and agriculture
systems of the United States, including any effects on the
availability of, access to, or safety and quality of food;
and''.
SEC. 6302. INCLUSION OF SECRETARY OF AGRICULTURE ON THE
COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED
STATES.
(a) In General.--Section 721(k)(2) of the Defense
Production Act of 1950 (50 U.S.C. 4565(k)(2)) is amended--
(1) by redesignating subparagraphs (H), (I), and (J) as
subparagraphs (I), (J), and (K), respectively; and
(2) by inserting after subparagraph (G) the following new
subparagraph:
``(H) The Secretary of Agriculture (nonvoting, ex
officio).''.
(b) Role of Secretary of Agriculture in CFIUS.--Section
721(k) of the Defense Production Act of 1950 (50 U.S.C.
4565(k)) is amended by adding at the end the following new
paragraph:
``(8) Role of secretary of agriculture.--The Secretary of
Agriculture shall participate in the review by the Committee
of any covered transaction described in clause (vi), (vii),
or (viii) of subsection (a)(4)(B).''.
SEC. 6303. REVIEW OF AGRICULTURE-RELATED TRANSACTIONS BY
COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED
STATES.
(a) In General.--Section 721 of the Defense Production Act
of 1950 (50 U.S.C. 4565) is amended--
(1) in subsection (a)--
(A) in paragraph (4)--
(i) in subparagraph (A)--
(I) in clause (i), by striking ``; and'' and inserting a
semicolon;
(II) in clause (ii), by striking the period at the end and
inserting ``; and''; and
(III) by adding at the end the following:
``(iii) any transaction described in clause (vi) or (vii)
of subparagraph (B) proposed or pending on or after the date
of the enactment of this clause.'';
(ii) in subparagraph (B), by adding at the end the
following:
``(vi) Any other investment, subject to regulations
prescribed under subparagraphs (D) and (E), by a foreign
person in any unaffiliated United States business that is
engaged in agriculture or biotechnology related to
agriculture.
``(vii) Subject to subparagraphs (C) and (E), the purchase
or lease by, or a concession to, a foreign person of private
real estate that is--
``(I) located in the United States;
``(II) used in agriculture; and
``(III) more than 320 acres or valued in excess of
$5,000,000.
``(viii) Subject to subparagraph (C), the purchase or lease
by, or a concession to, a covered person (as that term is
defined in subsection (r)(3)) of private or public real
estate in the United States if--
``(I)(aa) the value of the purchase, lease, or concession--
``(AA) exceeds $5,000,000; or
``(BB) in combination with the value of other such
purchases or leases by, or concessions to, the same entity
during the preceding 3 years, exceeds $5,000,000; or
``(bb) the real estate--
``(AA) exceeds 320 acres; or
``(BB) in combination with other private or public real
estate in the United States purchased or leased by, or for
which a concession is provided to, the same entity during the
preceding 3 years, exceeds 320 acres; and
``(II) the real estate is primarily used for--
``(aa) agriculture, including raising of livestock and
forestry;
``(bb) extraction of fossil fuels, natural gas, purchases
or leases of renewable energy sources; or
``(cc) extraction of critical precursor materials for
biological technology industries, information technology
components, or national defense technologies.'';
(iii) in subparagraph (C)(i), by striking ``subparagraph
(B)(ii)'' and inserting ``clause (ii), (vii), or (viii) of
subparagraph (B)'';
(iv) in subparagraph (D)--
(I) in clause (i), by striking ``subparagraph (B)(iii)''
and inserting ``clauses (iii) and (vi) of subparagraph (B)'';
(II) in clause (iii)(I), by striking ``subparagraph
(B)(iii)'' and inserting ``clauses (iii) and (vi) of
subparagraph (B)'';
(III) in clause (iv)(I), by striking ``subparagraph
(B)(iii)'' each place it appears and inserting ``clauses
(iii) and (vi) of subparagraph (B)''; and
(IV) in clause (v), by striking ``subparagraph (B)(iii)''
and inserting ``clauses (iii) and (vi) of subparagraph (B)'';
and
(v) in subparagraph (E), by striking ``clauses (ii) and
(iii)'' and inserting ``clauses (ii), (iii), (iv), and
(vii)''; and
(B) by adding at the end the following:
``(14) Agriculture.--The term `agriculture' has the meaning
given such term in section 3 of the Fair Labor Standards Act
of 1938 (29 U.S.C. 203).''; and
(2) by adding at the end the following:
``(r) Prohibition With Respect to Agricultural Companies
and Real Estate.--
``(1) In general.--Notwithstanding any other provision of
this section, if the Committee, in conducting a review and
investigation under this section, determines that a
transaction described in clause (i), (vi), or (vii) of
subsection (a)(4)(B) would result in control by a covered
foreign person of or investment by a covered foreign person
in a United States business engaged in agriculture or private
real estate used in agriculture, the President shall prohibit
such transaction.
``(2) Waiver.--The President may waive, on a case-by-case
basis, the requirement to prohibit a transaction under
paragraph (1), not less than 30 days after the President
determines and reports to the relevant committees of
jurisdiction that it is vital to the national security
interests of the United States to waive such prohibition.
``(3) Defined terms.--In this subsection:
``(A) Covered person.--
``(i) In general.--Except as provided by clause (ii), the
term `covered person'--
``(I) has the meaning given the term `a person owned by,
controlled by, or subject to the jurisdiction or direction of
a foreign adversary' in section 7.2 of title 15, Code of
Federal Regulations (as in effect on the date of the
enactment of the National Defense Authorization Act for
Fiscal Year 2024), except that each reference to `foreign
adversary' in that definition shall be deemed to be a
reference to the government of a covered country; and
``(II) includes an entity that--
``(aa) is registered in or organized under the laws of a
covered country;
``(bb) has a principal place of business in a covered
country; or
``(cc) has a subsidiary with a principal place of business
in a covered country.
``(ii) Exclusions.--The term `covered person' does not
include a United States citizen or an alien lawfully admitted
for permanent residence to the United States.
``(B) Covered country.--The term `covered country' means
any of the following:
``(i) The People's Republic of China.
``(ii) The Russian Federation.
``(iii) The Islamic Republic of Iran.
``(iv) The Democratic People's Republic of Korea.''.
(b) Report Required.--Not later than 180 days after the
date of the enactment of this Act, and every 180 days
thereafter, the Secretary of Agriculture shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report on the risks that foreign purchases of United
States businesses engaged in agriculture (as such term is
defined in section 3 of the Fair Labor Standards Act of 1938
(29 U.S.C. 203)) pose to the agricultural sector of the
United States.
______