[Congressional Record Volume 170, Number 115 (Thursday, July 11, 2024)]
[Senate]
[Pages S4972-S4974]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2661. Mr. RISCH submitted an amendment intended to be proposed by 
him to the bill S. 4638, to authorize appropriations for fiscal year 
2025 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 subtitle F of title XII, add the following:

     SEC. 1291. PROHIBITION ON CERTAIN GIFTS AND CONTRACTS FROM 
                   THE PEOPLE'S REPUBLIC OF CHINA TO CERTAIN 
                   UNITED STATES INSTITUTIONS.

       (a) Definitions.--In this section:
       (1) Appropriate committees of congress.--The term 
     ``appropriate committees of Congress'' means--
       (A) the Committee on Foreign Relations of the Senate;
       (B) the Committee on Health, Education, Labor, and Pensions 
     of the Senate;
       (C) the Committee on Foreign Affairs of the House of 
     Representatives; and
       (D) the Committee on Energy and Commerce of the House of 
     Representatives.
       (2) Contract.--The term ``contract'' means any agreement to 
     acquire, by purchase, lease, or barter, property or services 
     for the direct benefit or use of either of party to the 
     agreement.
       (3) Covered prc person.--The term ``covered PRC person'' 
     means a person that, according to unclassified or publicly 
     available information--
       (A) is a current or former member of the People's 
     Liberation Army of the People's Republic of China;
       (B) is currently, or was formerly, employed in any security 
     or intelligence service of the People's Republic of China;
       (C) is, or is affiliated with, an entity identified by the 
     Secretary of Defense under section 1260H(a) of the William M. 
     (Mac) Thornberry National Defense Authorization Act for 
     Fiscal Year 2021 (Public Law 116-283; 10 U.S.C. 113 note) as 
     a Chinese military company operating directly or indirectly 
     in the United States;
       (D) is, or is affiliated with, any entity that is included 
     in the Non-SDN Chinese Military-Industrial Complex Companies 
     List maintained by the Office of Foreign Assets Control of by 
     the Department of the Treasury;
       (E) is, or is affiliated with, the United Front Work 
     Department of the Government of the People's Republic of 
     China or any subsidiary or affiliate organization, or is 
     otherwise involved in activities that support the goals of 
     the United Front Work Department;
       (F) is an employee of any entity owned or controlled by the 
     Government of the People's Republic of China;
       (G) is or was an employee of any 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 title 15, Code of Federal Regulations;
       (H) is or was an employee of an entity organized under the 
     laws of the People's Republic of China that--
       (i) is in noncompliance with the auditing rules and 
     standards of the Public Company Accounting Oversight Board; 
     or
       (ii) has been sanctioned by the Public Company Accounting 
     Oversight Board;
       (I) is a think tank directed or funded by the Chinese 
     Communist Party or any entity of the Government of the 
     People's Republic of China;
       (J) is any state key laboratory, including any defense 
     science and technology state key laboratory identified in the 
     2022 report of the China Aerospace Studies Institute of the 
     Department of the Air Force entitled ``The PRC State & 
     Defense Laboratory System Part Two: Defense S&T Key Lab 
     Directory'' that is--
       (i) working on critical emerging technologies, including 
     advanced computing, advanced engineering materials, advanced 
     gas turbine engine technologies, advanced manufacturing, 
     advanced and networked sensing and signature management, 
     advanced nuclear energy technologies, artificial 
     intelligence, autonomous systems and robotics, 
     biotechnologies, communication and networking technologies, 
     directed energy, financial technologies, human-machine 
     interfaces, hypersonics, networked sensors and sensing, 
     quantum information technologies, renewable energy generation 
     and storage, semiconductors and microelectronics, or space 
     technologies and systems; and
       (ii) affiliated with, controlled, or administratively 
     managed by an agency of the Government of the People's 
     Republic of China, the Chinese Academy of Sciences, or the 
     Polar Research Institute of China; or
       (K) is, or was affiliated with, any entity owned or 
     controlled by an agency or instrumentality of any person 
     described in any of subparagraphs (A) through (J).
       (4) Covered united states institution.--The term ``covered 
     United States institution'' means any public or private 
     institution or, if a multicampus institution, any single 
     campus of such institution, in any State--
       (A) that is legally authorized within such State to provide 
     a program of education beyond secondary school;
       (B) that provides a program for which the institution 
     awards a bachelor's degree (or provides not less than a 2-
     year program which is acceptable for full credit toward such 
     a degree) or a more advanced degree;
       (C) that is accredited by a nationally recognized 
     accrediting agency or association; and
       (D) to which the Federal Government extends Federal 
     financial assistance (directly or indirectly through another 
     entity or person), or that receives support from the 
     extension of Federal financial assistance to any of the 
     institution's subunits.
       (5) Critical technologies.--The term ``critical 
     technologies'' has the meaning given such term in section 
     721(a)(6) of the Defense Production Act of 1950 (50 U.S.C. 
     4565(a)(6))).
       (6) Foreign source.--The term ``foreign source'' means--
       (A) a foreign government, including an agency of a foreign 
     government;
       (B) a legal entity, governmental or otherwise, created 
     solely under the laws of a foreign state or states;
       (C) an individual who is not a citizen or a national of the 
     United States or a trust territory or protectorate thereof; 
     and
       (D) an agent, including a subsidiary or affiliate of a 
     foreign legal entity, acting on behalf of a foreign source.
       (7) Freely associated states.--The term ``Freely Associated 
     States'' means the Republic of the Marshall Islands, the 
     Federated States of Micronesia, and the Republic of Palau.
       (8) Gift.--The term ``gift'' means any gift of money or 
     property.
       (9) Restricted or conditional gift or contract.--The term 
     ``restricted or conditional gift or contract'' means any 
     endowment, gift, grant, contract, award, present, or property 
     of any kind that includes provisions regarding--
       (A) the employment, assignment, or termination of faculty;
       (B) the establishment of departments, centers, research or 
     lecture programs, or new faculty positions;
       (C) the selection or admission of students; or
       (D) the award of grants, loans, scholarships, fellowships, 
     or other forms of financial aid restricted to students of a 
     specified country, religion, sex, ethnic origin, or political 
     opinion.

[[Page S4973]]

       (10) State.--The term ``State'' includes, in addition to 
     the several States of the United States, the Commonwealth of 
     Puerto Rico, the District of Columbia, Guam, American Samoa, 
     the United States Virgin Islands, the Commonwealth of the 
     Northern Mariana Islands, and the Freely Associated States.
       (11) State key laboratory.--The term ``state key 
     laboratory'' means an institution in the People's Republic of 
     China that has been categorized as a national laboratory or 
     state key laboratory by, and receives funding, policy, 
     developmental guidance, or administrative support from, the 
     Government of the People's Republic of China.
       (b) Prohibition.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, the Secretary of State shall 
     prescribe regulations to prohibit a covered United States 
     institution from accepting a gift from, or entering into a 
     contract with, a covered PRC person if--
       (A)(i) the value of the gift or contract equals or exceeds 
     $1,000,000; or
       (ii) including the gift or contract, the institution would 
     receive, directly or indirectly, more than 1 gift from or 
     enter into more than 1 contract, directly or indirectly, with 
     the same covered PRC person, the aggregate of which, during a 
     period of 2 consecutive calendar years, would equal or exceed 
     $1,000,000; and
       (B) the gift or contract--
       (i) relates to research, development, or production of 
     critical technologies and provides the covered PRC person 
     making the gift or providing the contract--

       (I) access to regulated or unregulated United States-
     developed information, technology, or data in the possession 
     of the institution; or
       (II) rights, including early access, to intellectual 
     property created by or in the possession of the institution; 
     or

       (ii) except as provided under paragraph (2), is a 
     restricted or conditional gift or contract.
       (2) Exception for operating agreements for branches of 
     covered united states institutions.--The Secretary of State 
     shall include, in the regulations prescribed pursuant to 
     paragraph (1), an exception to the prohibition under such 
     paragraph for a contract between a covered United States 
     institution and a branch of such institution located in the 
     People's Republic of China that provides funding for the 
     operation of such branch.
       (c) Penalties.--
       (1) Fine.--
       (A) In general.--A covered United States institution that 
     accepts a gift or enters into a contract in violation of 
     subsection (b) shall be fined--
       (i) for the first such violation, not more than $250,000;
       (ii) for the second such violation, not more than $500,000; 
     and
       (iii) for the third such violation or a subsequent such 
     violation, not more than the greater of--

       (I) $1,000,000; or
       (II) the total value of the gift or contract, as the case 
     may be.

       (B) Availability of fines to administer this section.--
       (i) Establishment of fund.--There is established in the 
     Treasury of the United States a fund, consisting of such 
     amounts as may be transferred to the fund pursuant to clause 
     (ii).
       (ii) Transfer of amounts.--The Secretary of the Treasury 
     shall transfer to the fund established under clause (i), from 
     the general fund of the Treasury, an amount determined by the 
     Secretary of State to be equivalent to the amount received in 
     the general fund and attributable to fines collected under 
     subparagraph (A) during fiscal year 2024 and during each 
     fiscal year thereafter.
       (iii) Availability and use of amounts.--Amounts in the fund 
     established under clause (i) shall be available, as provided 
     in advance in appropriations Acts, to the Secretary of State 
     for fiscal year 2025 and for each fiscal year thereafter to 
     carry out this section.
       (2) Requirement to return gift or terminate contract.--A 
     covered United States institution that accepts a gift or 
     enters into a contract in violation of subsection (b) shall 
     return the gift or terminate the contract, as the case may 
     be.
       (3) Restriction on funding from the department of state.--
       (A) In general.--A covered United States institution that 
     accepts a gift or enters into a contract in violation of 
     subsection (b) is ineligible to receive any grant or other 
     funding from the Department of State during the 5-year period 
     beginning on the date on which the institution accepts such 
     gift or enters into such contract, as the case may be.
       (B) Restriction on grantees doing business with 
     violators.--A person that receives a grant or other funding 
     from the Department of State may not, as a condition of the 
     grant or funding, conduct any business with a covered United 
     States institution that accepts a gift or enters into a 
     contract in violation of subsection (b) during the 5-year 
     period beginning on the date on which the institution accepts 
     such gift or enters into such contract, as the case may be.
       (4) Waiver.--
       (A) Authorization.--The Secretary of State may waive the 
     application of not more than 2 of the penalties under 
     paragraphs (1) through (3), with respect to a covered United 
     States institution that accepts a gift or enters into a 
     contract in violation of subsection (b), if the President--
       (i) determines that--

       (I) such waiver is in the national security interest of the 
     United States; and
       (II) such gift or contract does not result in any 
     restrictions on academic freedom or freedom of expression 
     within the United States; and

       (ii) not later than 15 days after making such 
     determination, submits to the chairperson and ranking member 
     of the appropriate committees of Congress a written report 
     regarding such determination that includes a detailed 
     justification for the determination.
       (B) Elements.--Each report submitted pursuant to 
     subparagraph (A)(ii) shall--
       (i) be accompanied by materials submitted by the covered 
     United States institution that accepted a gift or entered 
     into a contract in violation of subsection (b) disclosing--

       (I) the covered PRC person that provided the gift or with 
     which the contract was entered into;
       (II) the nature of the gift or contract; and
       (III) the purpose of the gift or contract; and

       (ii) include a detailed justification for why the gift or 
     contract does not result in--

       (I) harm to the national security of the United States; or
       (II) any restrictions on academic freedom or freedom of 
     expression within the United States.

       (d) Guidance.--The regulations prescribed pursuant to 
     subsection (b)(1) shall--
       (1) provide guidance to covered United States institutions 
     with respect to complying with this section; and
       (2) provide a specific point of contact through which 
     covered United States institutions can communicate with the 
     Department of State on matters relating to compliance with 
     this section.
       (e) Disclosure Reports.--
       (1) In general.--A covered United States institution shall 
     submit to the Secretary of State a disclosure report relating 
     to any gift or contract received from or entered into with a 
     foreign source described in paragraph (5) that includes--
       (A) the aggregate dollar amount or value of the gift or 
     contract;
       (B) a detailed description of the nature and purpose of the 
     gift or contract, including--
       (i) whether such gift or contract relates to the research, 
     development, or production of critical technologies and, if 
     so, a description of the nature of such relationship; and
       (ii) whether it is a restricted or conditional gift or 
     contract and, if so, a description of the restrictions or 
     conditions on the gift or contract;
       (C) in the case of a gift or contract that relates to the 
     research, development, or production of critical technologies 
     or that is a restricted or conditional gift or contract, a 
     justification for why the gift or contract does not result 
     in--
       (i) harm to the national security of the United States; or
       (ii) any restrictions on academic freedom or freedom of 
     expression within the United States;
       (D) the name and verified address of the foreign source;
       (E) a description of any due diligence conducted by such 
     institution before accepting the gift or entering into the 
     contract; and
       (F) an assurance that such institution will--
       (i) maintain a true copy of the gift or contract agreement 
     until the later of--

       (I) the date that is 4 years after the date on which such 
     institution entered into such agreement; or
       (II) the date on which such agreement terminates;

       (ii) produce a true copy of the gift or contract agreement 
     upon the request of the Secretary of State during an audit of 
     the compliance of the institution with this section or 
     another institutional investigation; and
       (iii) ensure that all gifts and contracts from the foreign 
     source are translated into English by a third party that is 
     unaffiliated with the foreign source or institution.
       (2) Provision of information to congress upon request.--
       (A) In general.--The Secretary of State shall provide the 
     information described in subparagraph (B) to the chairperson 
     or ranking member of the Committee on Foreign Relations of 
     the Senate or the Committee on Foreign Affairs of the House 
     of Representatives not later than 15 days after receiving a 
     request from the chairperson or ranking member for such 
     information.
       (B) Information described.--The information described in 
     this subparagraph, with respect to any disclosure report 
     submitted under paragraph (1) is--
       (i) any information required to be included in the report; 
     and
       (ii) a justification for any decision by the Secretary of 
     State with respect to the gift or contract that is the 
     subject of the report.
       (3) Public information.--The Secretary of State shall make 
     public, in a searchable database, with respect to each gift 
     or contract that is the subject of a disclosure report 
     submitted under paragraph (1)--
       (A) the aggregate dollar amount or value of the gift or 
     contract;
       (B) a summary of the purpose of the gift or contract, 
     including--
       (i) whether the gift or contract relates to the research, 
     development, or production of critical technologies and, if 
     so, a description of the nature of such relationship; and
       (ii) whether it is a restricted or conditional gift or 
     contract and, if so, a description of

[[Page S4974]]

     the restrictions or conditions on the gift or contract; and
       (C) with respect to the foreign source from which the gift 
     was received or with which the contract was entered into--
       (i) in the case of a foreign source that is an individual, 
     the primary professional affiliation of the individual; and
       (ii) in the case of a foreign source that is an entity, the 
     name and verified address of the entity.
       (4) Condition.--A gift received from, or a contract entered 
     into with, a foreign source described in paragraph (5) may 
     not be disclosed to the Department of State or to the 
     chairperson or ranking member of the Committee on Foreign 
     Relations of the Senate or of the Committee on Foreign 
     Affairs of the House of Representatives, or publicly 
     reported, as anonymous.
       (5) Foreign sources described.--A foreign source described 
     in this paragraph is a foreign source that is--
       (A) the Chinese Communist Party or the Government of the 
     People's Republic of China, including an agency of such 
     government;
       (B) a legal entity (governmental or otherwise) created 
     solely under the laws of the People's Republic of China;
       (C) an individual who is a citizen or a national of the 
     People's Republic of China; or
       (D) an agent, including a subsidiary or affiliate of a 
     foreign legal entity, acting on behalf of--
       (i) the Chinese Communist Party or the Government of the 
     People's Republic of China; or
       (ii) an entity or individual described in subparagraph (B) 
     or (C).
       (f) Annual Report.--
       (1) In general.--Not later than 2 years after the date of 
     the enactment of this Act, and annually thereafter for a 
     period of 7 years, the Secretary of State shall submit to the 
     appropriate committees of Congress a report that--
       (A) describes steps taken during the period described in 
     paragraph (2) to implement this section;
       (B) includes information or recommendations to improve the 
     implementation of this section; and
       (C) includes any other information the Secretary of State 
     considers relevant.
       (2) Period described.--The period described in this 
     paragraph is--
       (A) in the case of the first report required by paragraph 
     (1), the 2-year period beginning on the date of the enactment 
     of this Act; and
       (B) in the case of any subsequent such report, the 1-year 
     period preceding submission of the report.
       (3) Form of report.--
       (A) In general.--The report required under paragraph (1) 
     shall be submitted in unclassified form, but (subject to 
     subparagraph (B)) may include a classified annex.
       (B) Material required to be unclassified.--The Secretary of 
     State shall include all information on foreign donations 
     received by covered United States institutions in the 
     unclassified portion of the report required by paragraph (1).
                                 ______