[116th Congress Public Law 276]
[From the U.S. Government Publishing Office]



[[Page 3361]]

  SECURE FEDERAL LEASES FROM ESPIONAGE AND SUSPICIOUS ENTANGLEMENTS ACT

[[Page 134 STAT. 3362]]

Public Law 116-276
116th Congress

                                 An Act


 
To require the disclosure of ownership of high-security space leased to 
 accommodate a Federal agency, and for other purposes. <<NOTE: Dec. 31, 
                          2020 -  [S. 1869]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Secure Federal 
Leases from Espionage And Suspicious Entanglements Act. 40 USC 585 
note.>> 
SECTION 1. SHORT TITLE; FINDINGS.

    (a) Short Title.--This Act may be cited as the ``Secure Federal 
Leases from Espionage And Suspicious Entanglements Act'' or the ``Secure 
Federal LEASEs Act''.
    (b) Findings.--Congress finds that--
            (1) the Government Accountability Office has reported that 
        the Federal Government often leases high-security space from 
        private sector landlords;
            (2) the General Services Administration collects highest- 
        level and immediate ownership information through the System for 
        Award Management, but it is not currently required to collect 
        beneficial ownership information and lacks an adequate system 
        for doing so;
            (3) the General Services Administration and Federal agencies 
        with leasing authority may not know if foreign owners have a 
        stake in the buildings leased by the agencies, either through 
        foreign-incorporated legal entities or through ownership in 
        United States-incorporated legal entities, even when the leased 
        space is used for classified operations or to store sensitive 
        data; and
            (4) according to a report of the Government Accountability 
        Office, dated January 2017, that examined the risks of foreign 
        ownership of Government-leased real estate, ``leasing space in 
        foreign-owned buildings could present security risks such as 
        espionage and unauthorized cyber and physical access''.
SEC. 2. DEFINITIONS.

    In this Act:
            (1) Beneficial owner.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``beneficial owner'' means, with respect 
                to a covered entity, each natural person who, directly 
                or indirectly, through any contract, arrangement, 
                understanding, relationship, or otherwise--
                          (i) exercises control over the covered entity; 
                      or
                          (ii) has a substantial interest in or receives 
                      substantial economic benefits from the assets of 
                      the covered entity.

[[Page 134 STAT. 3363]]

                    (B) Exceptions.--The term ``beneficial owner'' does 
                not include, with respect to a covered entity--
                          (i) a minor child;
                          (ii) a person acting as a nominee, 
                      intermediary, custodian, or agent on behalf of 
                      another person;
                          (iii) a person acting solely as an employee of 
                      the covered entity and whose control over or 
                      economic benefits from the covered entity derives 
                      solely from the employment status of the person;
                          (iv) a person whose only interest in the 
                      covered entity is through a right of inheritance, 
                      unless the person also meets the requirements of 
                      subparagraph (A); or
                          (v) a creditor of the covered entity, unless 
                      the creditor also meets the requirements of 
                      subparagraph (A).
                    (C) Anti-abuse rule.--The exceptions under 
                subparagraph (B) shall not apply if used for the purpose 
                of evading, circumventing, or abusing the requirements 
                of this Act.
            (2) Control.--The term ``control'' means, with respect to a 
        covered entity--
                    (A) having the authority or ability to determine how 
                a covered entity is utilized; or
                    (B) having some decision-making power for the use of 
                a covered entity.
            (3) Covered entity.--The term ``covered entity'' means--
                    (A) a person, corporation, company, business 
                association, partnership, society, trust, or any other 
                nongovernmental entity, organization, or group; or
                    (B) any governmental entity or instrumentality of a 
                government.
            (4) Executive agency.--The term ``Executive agency'' has the 
        meaning given the term in section 105 of title 5, United States 
        Code.
            (5) Federal agency.--The term ``Federal agency'' means any 
        Executive agency or any establishment in the legislative or 
        judicial branch of the Government.
            (6) Federal lessee.--The term ``Federal lessee''--
                    (A) means the Administrator of General Services, the 
                Architect of the Capitol, or the head of any Federal 
                agency, other than the Department of Defense, that has 
                independent statutory leasing authority; and
                    (B) does not include the head of an element of the 
                intelligence community.
            (7) Federal tenant.--The term ``Federal tenant''--
                    (A) means a Federal agency that is occupying or will 
                occupy a high-security leased space for which a lease 
                agreement has been secured on behalf of the Federal 
                agency; and
                    (B) does not include an element of the intelligence 
                community.
            (8) Foreign entity.--The term ``foreign entity'' means a 
        covered entity that is headquartered or incorporated in a 
        country that is not the United States.
            (9) Foreign person.--The term ``foreign person'' means an 
        individual who is not a United States person.

[[Page 134 STAT. 3364]]

            (10) High-security leased space.--The term ``high-security 
        leased space'' means a space leased by a Federal lessee that--
                    (A) will be occupied by Federal employees for 
                nonmilitary activities; and
                    (B) has a facility security level of III, IV, or V, 
                as determined by the Federal tenant in consultation with 
                the Interagency Security Committee, the Department of 
                Homeland Security, and the General Services 
                Administration.
            (11) Highest-level owner.--The term ``highest-level owner'' 
        means the entity that owns or controls an immediate owner of the 
        offeror of a lease, or that owns or controls 1 or more entities 
        that control an immediate owner of the offeror.
            (12) Immediate owner.--The term ``immediate owner'' means an 
        entity, other than the offeror of a lease, that has direct 
        control of the offeror, including ownership or interlocking 
        management, identity of interests among family members, shared 
        facilities and equipment, and the common use of employees.
            (13) Intelligence community.--The term ``intelligence 
        community'' has the meaning given the term in section 3 of the 
        National Security Act of 1947 (50 U.S.C. 3003).
            (14) Substantial economic benefits.--The term ``substantial 
        economic benefits'' means, with respect to a natural person 
        described in paragraph (1)(A)(ii), having an entitlement to the 
        funds or assets of a covered entity that, as a practical matter, 
        enables the person, directly or indirectly, to control, manage, 
        or direct the covered entity.
            (15) United states person.--The term ``United States 
        person'' means an individual who--
                    (A) is a citizen of the United States; or
                    (B) is an alien lawfully admitted for permanent 
                residence in the United States.
            (16) Widely held.--The term ``widely held'' means a fund 
        that has not less than 100 natural persons as direct or indirect 
        investors.
SEC. 3. DISCLOSURE OF OWNERSHIP OF HIGH-SECURITY SPACE LEASED FOR 
                    FEDERAL AGENCIES.

    (a) Required Disclosures.--Before entering into a lease agreement 
with a covered entity or approving a novation agreement with a covered 
entity involving a change of ownership under a lease that will be used 
for high-security leased space, a Federal lessee shall require the 
covered entity to identify and disclose whether the immediate or 
highest-level owner of the leased space, including an entity involved in 
the financing thereof, is a foreign person or a foreign entity, 
including the country associated with the ownership entity.
    (b) <<NOTE: Consultation.>>  Notification.--If a disclosure is made 
under subsection (a), the Federal lessee shall notify the Federal tenant 
of the building or other improvement that will be used for high-security 
space in writing, and consult with the Federal tenant, regarding 
security concerns and necessary mitigation measures, if any, prior to 
award of the lease or approval of the novation agreement.

[[Page 134 STAT. 3365]]

    (c) Timing.--
            (1) In general.--A Federal lessee shall require a covered 
        entity to provide the information described in subsection (a) 
        when first submitting a proposal in response to a solicitation 
        for offers issued by the Federal lessee.
            (2) <<NOTE: Deadline. Effective date.>>  Updates.--A Federal 
        lessee shall require a covered entity to submit an update of the 
        information described in subsection (a) annually, beginning on 
        the date that is 1 year after the date on which the Federal 
        tenant began occupancy, with information including--
                    (A) <<NOTE: List. Time period.>>  the list of 
                immediate or highest-level owners of the covered entity 
                during the preceding 1-year period of Federal occupancy; 
                or
                    (B) the information required to be provided relating 
                to each such immediate or highest-level owner.
SEC. 4. IMMEDIATE, HIGHEST-LEVEL, AND BENEFICIAL OWNERS.

    (a) <<NOTE: Coordination.>>  Plan.--The General Services 
Administration, in coordination with the Office of Management and 
Budget, shall develop a Government-wide plan for agencies (as such term 
is defined in section 551 of title 5, United States Code) for 
identifying all immediate, highest-level, or beneficial owners of high-
security leased spaces before entering into a lease agreement with a 
covered entity for the accommodation of a Federal tenant in a high-
security leased space.

    (b) Requirements.--
            (1) Contents.--The plan described in subsection (a) shall 
        include a process for collecting and utilizing the following 
        information on each immediate, highest-level, or beneficial 
        owner of a high-security leased space:
                    (A) Name.
                    (B) Current residential or business street address.
                    (C) An identifying number or document that verifies 
                identity as a United States person, foreign person, or 
                foreign entity.
            (2) Disclosures and notifications.--The plan described in 
        subsection (a) shall--
                    (A) require the disclosure of any immediate, 
                highest-level, or beneficial owner that is a foreign 
                person;
                    (B) require that, if the Federal lessee is assigning 
                the building or other improvement that will be used for 
                high-security space to a Federal tenant, the Federal 
                tenant shall be notified of the disclosure described in 
                subparagraph (A); and
                    (C) exclude collecting ownership information on 
                widely held pooled-investment vehicles, mutual funds, 
                trusts, or other pooled-investment vehicles.

    (c) Report and Implementation.--The General Services Administration 
shall--
            (1) not later than 1 year after the date of enactment of 
        this Act, submit the plan described in subsection (a) to the 
        Committee on Homeland Security and Governmental Affairs of the 
        Senate and the Committee on Transportation and Infrastructure of 
        the House of Representatives;
            (2) not later than 2 years after the date of enactment of 
        this Act, implement the plan described in subsection (a); and

[[Page 134 STAT. 3366]]

            (3) <<NOTE: Time period.>>  not later than 1 year after the 
        implementation of the plan described in subsection (a), and each 
        year thereafter for 9 years, submit a report to the Committee on 
        Homeland Security and Governmental Affairs of the Senate and the 
        Committee on Transportation and Infrastructure of the House of 
        Representatives on the status of the implementation of the plan, 
        including the number of disclosures made under subsection 
        (b)(2).
SEC. 5. OTHER SECURITY AGREEMENTS FOR LEASED SPACE.

    A lease agreement between a Federal lessee and a covered entity for 
the accommodation of a Federal agency in a building or other improvement 
that will be used for high-security leased space shall include language 
that provides that--
            (1) the covered entity and any member of the property 
        management company who may be responsible for oversight or 
        maintenance of the high-security leased space shall not--
                    (A) maintain access to the high-security leased 
                space; or
                    (B) have access to the high-security leased space 
                without prior approval from the Federal tenant;
            (2) <<NOTE: Determination.>>  access to the high-security 
        leased space or any property or information located within that 
        space will only be granted by the Federal tenant if the Federal 
        tenant determines that the access is clearly consistent with the 
        mission and responsibilities of the Federal tenant; and
            (3) <<NOTE: Procedures.>>  the Federal lessee shall have 
        written procedures in place, signed by the Federal lessee and 
        the covered entity, governing access to the high-security leased 
        space in case of emergencies that may damage the leased 
        property.
SEC. 6. <<NOTE: Deadline. Consultation.>>  AGENCY NOTIFICATIONS.

    Not later than 60 days after the date of enactment of this Act, the 
Administrator of General Services, in consultation with the Office of 
Management and Budget, shall provide notification to relevant Executive 
branch agencies with independent leasing authorities of the requirements 
of this Act.

[[Page 134 STAT. 3367]]

SEC. 7. <<NOTE: Time period.>>  APPLICABILITY.

    Except where otherwise provided, this Act shall apply with respect 
to any lease or novation agreement entered into on or after the date 
that is 6 months after the date of enactment of this Act.

    Approved December 31, 2020.

LEGISLATIVE HISTORY--S. 1869:
---------------------------------------------------------------------------

SENATE REPORTS: No. 116-92 (Comm. on Homeland Security and Governmental 
Affairs).
CONGRESSIONAL RECORD, Vol. 166 (2020):
            Mar. 3, considered and passed Senate.
            Nov. 17, considered and passed House, amended.
            Dec. 8, Senate concurred in House amendment.

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