    [United States Statutes at Large, Volume 134, 116th Congress, 2nd Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    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. <>

    Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress assembled, <>
    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.

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    (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.

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    (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) <>  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.

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    (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) <>  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) <>  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) <>  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

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    (3) <>  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) <>  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) <>  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. <>  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.

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    SEC. 7. <>  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.