[117th Congress Public Law 336]
[From the U.S. Government Publishing Office]
[[Page 136 STAT. 6147]]
Public Law 117-336
117th Congress
An Act
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. <<NOTE: Jan. 5, 2023 - [S. 1294]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Protecting
American Intellectual Property Act of 2022. President.>>
SECTION <<NOTE: 50 USC 1701 note.>> 1. SHORT TITLE.
This Act may be cited as the ``Protecting American Intellectual
Property Act of 2022''.
SEC. <<NOTE: 50 USC 1709.>> 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) <<NOTE: Determination.>> 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) <<NOTE: Assessment.>> 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.
[[Page 136 STAT. 6148]]
(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.-- <<NOTE: Time period.>> 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:
[[Page 136 STAT. 6149]]
(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) <<NOTE: Determination.>> 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.
(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
[[Page 136 STAT. 6150]]
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) <<NOTE: Determination.>> determines that such a waiver
is in the national interests of the United States; and
(2) <<NOTE: Deadline. Notification.>> 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.
[[Page 136 STAT. 6151]]
(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--
[[Page 136 STAT. 6152]]
(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.
Approved January 5, 2023.
LEGISLATIVE HISTORY--S. 1294:
---------------------------------------------------------------------------
CONGRESSIONAL RECORD, Vol. 168 (2022):
Dec. 20, considered and passed Senate.
Dec. 22, considered and passed House.
<all>