I 

114TH CONGRESS 

2D SESSION H. R. 4530 

To implement integrity measures to strengthen the EB–5 Regional Center 

Program in order to promote and reform foreign capital investment 

and job creation in American communities. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 10, 2016 

Mr. POLIS (for himself and Mr. AMODEI) introduced the following bill; which 

was referred to the Committee on the Judiciary 

A BILL 

To implement integrity measures to strengthen the EB– 

5 Regional Center Program in order to promote and 

reform foreign capital investment and job creation in 

American communities. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘EB–5 Integrity Act 

5 of 2016’’. 


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1 SEC. 2. REFORM OF THE REGIONAL CENTER PROGRAM. 

2 (a) INTEGRITY REFORMS.—Section 203(b)(5) of the 

3 Immigration and Nationality Act (8 U.S.C. 1153(b)(5)) 

4 is amended by adding at the end the following: 

5 ‘‘(E) REGIONAL CENTER PROGRAM.— 

6 ‘‘(i) PROCESSING.—In processing peti7 tions under section 204(a)(1)(H) for clas8 sification under this paragraph, the Sec9 retary of Homeland Security— 

10 ‘‘(I) may process petitions in a 

11 manner and order established by the 

12 Secretary; and 

13 ‘‘(II) shall deem such petitions to 

14 include records previously filed with 

15 the Secretary pursuant to subpara16 graph (F) if the alien petitioner cer17 tifies that such records are incor18 porated by reference into the alien’s 

19 petition. 

20 ‘‘(ii) ESTABLISHMENT OF A REGIONAL

21 CENTER.—A regional center shall operate 

22 within a defined and limited geographic 

23 area, which shall be described in the pro24 posal and be consistent with the purpose of 

25 concentrating pooled investment within 


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1 such area. The proposal to establish a re2 gional center shall— 

3 ‘‘(I) demonstrate that the pooled 

4 investment will have a significant eco5 nomic impact on such geographic 

6 area; 

7 ‘‘(II) include reasonable pre8 dictions, supported by economically 

9 and statistically valid forecasting 

10 tools, concerning— 

11 ‘‘(aa) the amount of invest12 ment that will be pooled; 

13 ‘‘(bb) the kinds of commer14 cial enterprises that will receive 

15 such investments; 

16 ‘‘(cc) the details of the jobs 

17 that will be created directly or in18 directly as a result of such in19 vestments; and 

20 ‘‘(dd) other positive eco21 nomic effects such investments 

22 will have; and 

23 ‘‘(III) include a description of the 

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1 mercial enterprises and any affiliated 

2 job-creating entity to ensure compli3 ance with— 

4 ‘‘(aa) all applicable laws, 

5 regulations, and Executive orders 

6 of the United States, including 

7 immigration laws (as defined in 

8 section 101(a)(17)) and securi9 ties laws; and 

10 ‘‘(bb) all securities laws of 

11 each State in which securities of12 ferings will be conducted, invest13 ment advice will be rendered, or 

14 the offerors or offerees reside. 

15 ‘‘(iii) COMPLIANCE.— 

16 ‘‘(I) IN GENERAL.—In deter17 mining compliance with subparagraph 

18 (A)(ii), the Secretary of Homeland Se19 curity shall permit aliens seeking ad20 mission under this subparagraph to 

21 rely on economically and statistically 

22 valid methodologies for determining 

23 the number of jobs created by the pro24 gram, including— 


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1 ‘‘(aa) jobs estimated to have 

2 been created directly, which may 

3 be verified using such methodolo4 gies, provided that the Secretary 

5 may request additional evidence 

6 to verify that the directly created 

7 jobs satisfy the requirements 

8 under subparagraph (A)(ii); and 

9 ‘‘(bb) consistent with this 

10 subparagraph, jobs estimated to 

11 have been created indirectly 

12 through revenues generated from 

13 increased exports, improved re14 gional productivity, job creation, 

15 and increased domestic capital 

16 investment resulting from the 

17 program. 

18 ‘‘(II) JOB AND INVESTMENT RE19 QUIREMENTS.— 

20 ‘‘(aa) RELOCATED JOBS.— 

21 In determining compliance with 

22 the job creation requirement 

23 under subparagraph (A)(ii), the 

24 Secretary may include jobs esti25 mated to be created under a 


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1 methodology that attributes jobs 

2 to prospective tenants occupying 

3 commercial real estate created or 

4 improved by capital investments 

5 if the number of such jobs esti6 mated to be created has been de7 termined by an economically and 

8 statistically valid methodology 

9 and such jobs are not existing 

10 jobs that have been relocated. 

11 ‘‘(bb) PUBLICLY AVAILABLE

12 BONDS.—Alien investor capital 

13 may not be utilized, by a new 

14 commercial enterprise or other15 wise, to purchase municipal 

16 bonds or any other bonds, if such 

17 bonds are available to the general 

18 public, either as part of a pri19 mary offering or from a sec20 ondary market. 

21 ‘‘(iv) AMENDMENTS.—The Secretary 

22 of Homeland Security shall— 

23 ‘‘(I) require regional centers to 

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1 cant proposed changes to their organi2 zational structure, ownership, or ad3 ministration, including the sale of 

4 such centers or other arrangements in 

5 which individuals not previously sub6 ject to the requirements under sub7 paragraph (H) become involved with 

8 the regional center, before any such 

9 proposed changes may take effect un10 less exigent circumstances are present 

11 in which case the regional center shall 

12 provide notice to the Secretary within 

13 5 business days of such change; 

14 ‘‘(II) approve the changes re15 ferred to in subclause (I) after— 

16 ‘‘(aa) notice of any such 

17 proposed changes are made pub18 licly available through a publicly 

19 accessible website of U.S. Citi20 zenship and Immigration Services 

21 for not fewer than 30 days; and 

22 ‘‘(bb) the Secretary deter23 mines that the regional center 

24 would remain compliant with this 


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1 subparagraph and subparagraph 

2 (H); and 

3 ‘‘(III) notwithstanding the pend4 ency of a request for approval of any 

5 amendment that has been filed pursu6 ant to subclause (I), adjudicate busi7 ness plans under subparagraph (F) 

8 and petitions under section 

9 204(a)(1)(H). 

10 ‘‘(F) BUSINESS PLANS FOR REGIONAL

11 CENTER INVESTMENTS.— 

12 ‘‘(i) APPLICATION FOR APPROVAL OF

13 AN INVESTMENT IN A COMMERCIAL EN14 TERPRISE.—A regional center shall file an 

15 application with the Secretary of Home16 land Security for each particular invest17 ment offering through an associated com18 mercial enterprise before any alien files a 

19 petition for classification under this para20 graph by reason of investment in that of21 fering, which shall include— 

22 ‘‘(I) a comprehensive business 

23 plan for a specific capital investment 

24 project; 


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1 ‘‘(II) a credible economic analysis 

2 regarding estimated job creation that 

3 is based upon economically and statis4 tically valid methodologies; 

5 ‘‘(III) any documents filed with 

6 the Securities and Exchange Commis7 sion under the Securities Act of 1933 

8 (15 U.S.C. 77a et seq.) or with the 

9 securities regulator of any State, as 

10 required by law; 

11 ‘‘(IV) any investment and offer12 ing documents, including subscription, 

13 investment, partnership, and oper14 ating agreements, private placement 

15 memoranda, term sheets, biographies 

16 for management, officers, directors, 

17 and any person with similar respon18 sibilities, the description of the busi19 ness plan to be provided to potential 

20 alien investors, and marketing mate21 rials used or drafts prepared for use 

22 in connection with the offering, which 

23 shall contain references, as appro24 priate, to— 


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1 ‘‘(aa) any investment risks 

2 associated with the new commer3 cial enterprise and the job-cre4 ating entity; 

5 ‘‘(bb) any conflicts of inter6 est that currently exist or may 

7 arise among the regional center, 

8 new commercial enterprise, job9 creating entity, or the principals 

10 or attorneys of the aforemen11 tioned entities; 

12 ‘‘(cc) any pending material 

13 litigation or bankruptcy, or ad14 verse judgments or bankruptcy 

15 orders issued during the most re16 cent 10-year period, in the 

17 United States or abroad, affect18 ing the regional center, new com19 mercial enterprise, any affiliated 

20 job-creating entity, or any other 

21 enterprise in which any principal 

22 of the aforementioned entities 

23 held majority ownership at the 

24 time; and 


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1 ‘‘(dd)(AA) any fees, ongoing 

2 interest, or other compensation 

3 paid or to be paid by regional 

4 center or new commercial enter5 prise to agents, finders, or broker 

6 dealers involved in the offering; 

7 ‘‘(BB) a description of the 

8 services performed, or which will 

9 be performed, by such person to 

10 entitle the person to such fees, 

11 interest, or compensation; and 

12 ‘‘(CC) the name and contact 

13 information of any such person; 

14 ‘‘(V) a description of the policies 

15 and procedures, including those re16 lated to internal and external due dili17 gence, reasonably designed to cause 

18 the regional center, new commercial 

19 enterprise, and any affiliated job-cre20 ating entity, their agents, employees, 

21 advisors, and attorneys, and any per22 sons in active concert or participation 

23 with the regional center, new commer24 cial enterprise, or any affiliated job25 creating entity comply, as applicable, 


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1 with the securities laws of the United 

2 States and the laws of the applicable 

3 States in connection with the offer, 

4 purchase, or sale of its securities; and 

5 ‘‘(VI) a certification from each of 

6 the regional centers and any issuer of 

7 securities under common control with 

8 the regional center that their respec9 tive employees and any parties associ10 ated with each of the regional centers 

11 and the issuer of securities under 

12 common control with any of the re13 gional centers are in compliance with 

14 the securities laws of the United 

15 States and the laws of the applicable 

16 States in connection with the offer, 

17 purchase, or sale of its securities, to 

18 the best of the certifier’s knowledge, 

19 after a due diligence investigation. 

20 ‘‘(ii) EFFECT OF APPROVAL OF A

21 BUSINESS PLAN FOR AN INVESTMENT IN A

22 REGIONAL CENTER’S COMMERCIAL ENTER23 PRISE.—The approval of an application 

24 under this subparagraph shall be binding 

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1 quent petitions seeking classification under 

2 this paragraph by immigrants investing in 

3 the same capital investment project 

4 through a new commercial enterprise, and 

5 of petitions by the same immigrants filed 

6 under section 216A, except in the case of 

7 fraud, misrepresentation, criminal misuse, 

8 a threat to public safety or national secu9 rity, a material change that affects the 

10 program eligibility of the approved eco11 nomic model, other evidence affecting pro12 gram eligibility that was not disclosed by 

13 the applicant during the adjudication proc14 ess, or a material mistake of law or fact in 

15 the prior adjudication. 

16 ‘‘(iii) SITE VISITS.—The Secretary 

17 shall— 

18 ‘‘(I) perform site visits to re19 gional centers; and 

20 ‘‘(II) perform at least 1 site visit 

21 to each new commercial enterprise or 

22 affiliated job-creating entity, which— 

23 ‘‘(aa) shall include a review 

24 for evidence of direct job creation 


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1 in accordance with subparagraph 

2 (E)(v)(I); and 

3 ‘‘(bb) may occur at any time 

4 during the period between the fil5 ing of an application for approval 

6 of an investment in a commercial 

7 enterprise under this subpara8 graph and the adjudication of the 

9 first petition for removal of con10 ditions on lawful permanent resi11 dent status under section 

12 216A(c) filed by an alien invest13 ing in such investment if the re14 gional center, new commercial 

15 enterprise, or affiliated job-cre16 ating entity, as applicable, is pro17 vided with notice in accordance 

18 with section 274A. 

19 ‘‘(G) REGIONAL CENTER ANNUAL STATE20 MENTS.— 

21 ‘‘(i) IN GENERAL.—Each regional cen22 ter designated under subparagraph (E) 

23 shall annually submit a statement to the 

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1 graph as the ‘Director’), in a manner pre2 scribed by the Secretary of Homeland Se3 curity, which shall include— 

4 ‘‘(I) a certification stating that, 

5 to the best of the certifier’s knowl6 edge, after a due diligence investiga7 tion, the regional center, the new com8 mercial enterprise, and any affiliated 

9 job-creating entity is in compliance 

10 with clauses (i) and (ii) of subpara11 graph (H); 

12 ‘‘(II) a certification described in 

13 subparagraph (I)(ii)(II); 

14 ‘‘(III) a certification stating that, 

15 to the best of the certifier’s knowl16 edge, after a due diligence investiga17 tion, the regional center is in compli18 ance with subparagraph (K)(iii); 

19 ‘‘(IV) a description of any pend20 ing material litigation or bankruptcy 

21 proceedings, or litigation or bank22 ruptcy proceedings resolved during the 

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1 prise, or any affiliated job-creating en2 tity; 

3 ‘‘(V) an accounting of all foreign 

4 investor capital invested in the re5 gional center, new commercial enter6 prise, or affiliated job-creating entity; 

7 ‘‘(VI) for each new commercial 

8 enterprise associated with the regional 

9 center— 

10 ‘‘(aa) an accounting of the 

11 aggregate capital invested in the 

12 new commercial enterprise and 

13 job-creating entity by alien inves14 tors under this paragraph for 

15 each capital investment project 

16 being undertaken by the new 

17 commercial enterprise; 

18 ‘‘(bb) a description of how 

19 the capital described in item (aa) 

20 is being used to execute each 

21 capital investment project in the 

22 filed business plan or plans; 

23 ‘‘(cc) evidence that 100 per24 cent of the capital described in 


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1 item (aa) has been committed to 

2 each capital investment project; 

3 ‘‘(dd) detailed evidence of 

4 the progress made toward the 

5 completion of each capital invest6 ment project; 

7 ‘‘(ee) an accounting of the 

8 aggregate direct jobs created or 

9 preserved; 

10 ‘‘(ff) to the best of the re11 gional center’s knowledge, for all 

12 fees, including administrative 

13 fees, loan monitoring fees, loan 

14 management fees, commissions 

15 and similar transaction-based 

16 compensation, collected from 

17 alien investors by the regional 

18 center, new commercial enter19 prise, any affiliated job-creating 

20 entity or issuer of securities 

21 under common control with the 

22 regional center, or any promoter, 

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1 going to locate individual inves2 tors— 

3 ‘‘(AA) a description of 

4 all fees collected; 

5 ‘‘(BB) an accounting of 

6 the entities that received 

7 such fees; and 

8 ‘‘(CC) the purpose for 

9 which such fees were col10 lected; 

11 ‘‘(gg) any documentation re12 ferred to in subparagraph 

13 (F)(i)(IV) if there has been a 

14 material change during the pre15 ceding fiscal year; and 

16 ‘‘(hh) a certification by the 

17 regional center that such state18 ments are accurate, to the best of 

19 the certifier’s knowledge, after a 

20 due diligence investigation; and 

21 ‘‘(VII) a description of the re22 gional center’s policies and procedures 

23 that are designed to enable the re24 gional center to comply with applica25 ble Federal labor laws. 


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1 ‘‘(ii) AMENDMENT OF ANNUAL STATE2 MENTS.—The Director— 

3 ‘‘(I) shall require the regional 

4 center to amend or supplement an an5 nual statement required under clause 

6 (i) if the Director determines that 

7 such statement is deficient; and 

8 ‘‘(II) may require the regional 

9 center to amend or supplement such 

10 annual statement if the Director de11 termines that such an amendment or 

12 supplement is appropriate. 

13 ‘‘(iii) SANCTIONS.— 

14 ‘‘(I) EFFECT OF VIOLATION.— 

15 The Director shall sanction any re16 gional center in accordance with sub17 clause (II) if the regional center fails 

18 to submit an annual statement or if 

19 the Director determines that the re20 gional center— 

21 ‘‘(aa) knowingly submitted 

22 or caused to be submitted a 

23 statement, certification, or any 

24 information submitted under this 

25 subparagraph, that contained an 


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1 untrue statement of material 

2 fact; or 

3 ‘‘(bb) is conducting itself in 

4 a manner inconsistent with its 

5 designation, including any willful, 

6 undisclosed, and material devi7 ation by new commercial enter8 prises from any filed business 

9 plan for such commercial enter10 prises. 

11 ‘‘(II) AUTHORIZED SANCTIONS.— 

12 The Director shall establish a grad13 uated set of sanctions based on the 

14 severity of the violations referred to in 

15 subclause (I), including— 

16 ‘‘(aa) fines equal to not 

17 more than 10 percent of the total 

18 capital invested by alien investors 

19 in the regional center’s new com20 mercial enterprises or job-cre21 ating entities, which— 

22 ‘‘(AA) may not be paid 

23 from any of such alien inves24 tor’s capital investments; 

25 and 


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1 ‘‘(BB) shall be depos2 ited into the EB–5 Integrity 

3 Fund established under sub4 paragraph (J); 

5 ‘‘(bb) temporary suspension 

6 from participation in the pro7 gram described in subparagraph 

8 (E), which may be lifted by the 

9 Director if the individual or enti10 ty cures the alleged violation 

11 after being provided such an op12 portunity by the Director; 

13 ‘‘(cc) permanent bar from 

14 program participation for 1 or 

15 more individuals associated with 

16 the regional center or new com17 mercial enterprise or job-creating 

18 entity; and 

19 ‘‘(dd) termination of re20 gional center designation. 

21 ‘‘(H) BONA FIDES OF PERSONS INVOLVED

22 WITH REGIONAL CENTER PROGRAM.— 

23 ‘‘(i) IN GENERAL.—A person may not 

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1 gional center, new commercial enterprise, 

2 or job-creating entity if— 

3 ‘‘(I) the person has been found to 

4 have committed— 

5 ‘‘(aa) a criminal or civil vio6 lation involving fraud or deceit 

7 within the previous 10 years; 

8 ‘‘(bb) a civil violation involv9 ing fraud or deceit that resulted 

10 in a liability in excess of 

11 $1,000,000; or 

12 ‘‘(cc) a crime for which the 

13 person was convicted and was 

14 sentenced to a term of imprison15 ment of more than 1 year; 

16 ‘‘(II) the person is subject to a 

17 final order, for the duration of any 

18 penalty imposed by such order, of a 

19 State securities commission (or an 

20 agency or officer of a State who per21 forms similar functions), a State au22 thority that supervises or examines 

23 banks, savings associations, or credit 

24 unions, a State insurance commission 

25 (or an agency of or officer of a State 


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1 who performs similar functions), an 

2 appropriate Federal banking agency, 

3 the Commodity Futures Trading 

4 Commission, the Securities and Ex5 change Commission, a financial self6 regulatory organization recognized by 

7 the Securities and Exchange Commis8 sion, or the National Credit Union 

9 Administration, which is based on a 

10 violation of any law or regulation 

11 that— 

12 ‘‘(aa) prohibits fraudulent, 

13 manipulative, or deceptive con14 duct; or 

15 ‘‘(bb) bars the person 

16 from— 

17 ‘‘(AA) association with 

18 an entity regulated by such 

19 commission, authority, agen20 cy, or officer; 

21 ‘‘(BB) appearing before 

22 such commission, authority, 

23 agency, or officer; 


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1 ‘‘(CC) engaging in the 

2 business of securities, insur3 ance, or banking; or 

4 ‘‘(DD) engaging in sav5 ings association or credit 

6 union activities; 

7 ‘‘(III) the person is engaged in, 

8 has ever been engaged in, or seeks to 

9 engage in— 

10 ‘‘(aa) any illicit trafficking 

11 in any controlled substance or in 

12 any listed chemical (as defined in 

13 section 102 of the Controlled 

14 Substances Act (21 U.S.C. 802)); 

15 ‘‘(bb) any activity relating to 

16 espionage, sabotage, or theft of 

17 intellectual property; 

18 ‘‘(cc) any activity related to 

19 money laundering (as described 

20 in section 1956 or 1957 of title 

21 18, United States Code); 

22 ‘‘(dd) any terrorist activity 

23 (as defined in section 

24 212(a)(3)(B)(iii)); 


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1 ‘‘(ee) any activity consti2 tuting or facilitating human traf3 ficking or a human rights of4 fense; 

5 ‘‘(ff) any activity described 

6 in section 212(a)(3)(E); or 

7 ‘‘(gg) the violation of any 

8 statute, regulation, or Executive 

9 order regarding foreign financial 

10 transactions or foreign asset con11 trol; or 

12 ‘‘(IV) the person— 

13 ‘‘(aa) is, or during the pre14 ceding 10 years has been, in15 cluded on the Department of 

16 Justice’s List of Currently Dis17 ciplined Practitioners; or 

18 ‘‘(bb) during the preceding 

19 10 years, has received a rep20 rimand or otherwise been publicly 

21 disciplined for conduct related to 

22 fraud or deceit by a State bar as23 sociation of which the person is 

24 or was a member. 


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1 ‘‘(ii) FOREIGN INVOLVEMENT IN RE2 GIONAL CENTER PROGRAM.— 

3 ‘‘(I) LAWFUL STATUS RE4 QUIRED.—A person may not be in5 volved with a regional center unless 

6 the person is a national of the United 

7 States or an individual who has been 

8 lawfully admitted for permanent resi9 dence (as such terms are defined in 

10 paragraphs (20) and (22) of section 

11 101(a)). 

12 ‘‘(II) FOREIGN GOVERNMENTS.— 

13 A foreign government entity may not 

14 provide capital to, or be directly or in15 directly involved with the ownership or 

16 administration of, a regional center. 

17 ‘‘(III) RULEMAKING.—Not later 

18 than 180 days after the date of the 

19 enactment of this Act, the Secretary, 

20 in consultation with the Secretary of 

21 the Treasury and the Secretary of 

22 Commerce, shall issue regulations im23 plementing subclauses (I) and (II). 

24 ‘‘(iii) INFORMATION REQUIRED.—The 

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1 quire such attestations and information, 

2 including the submission of fingerprints or 

3 other biometrics to the Federal Bureau of 

4 Investigation, and shall perform such 

5 criminal record checks and other back6 ground and database checks with respect 

7 to a regional center, new commercial enter8 prise, and any affiliated job-creating entity, 

9 and persons involved with such entities (as 

10 described in clause (v)), to determine 

11 whether such entities are in compliance 

12 with clauses (i) and (ii). The Secretary 

13 may require the information and attesta14 tions described in this clause from the enti15 ties described in this clause and any person 

16 involved with such entities, at any time on 

17 or after the date of the enactment of the 

18 EB–5 Integrity Act of 2016. 

19 ‘‘(iv) TERMINATION.— 

20 ‘‘(I) IN GENERAL.—The Sec21 retary shall suspend or terminate the 

22 designation of any regional center, or 

23 the participation under the program 

24 of any new commercial enterprise or 

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1 graph if the Secretary determines that 

2 such entity— 

3 ‘‘(aa) knowingly involved a 

4 person with such entity in viola5 tion of clause (i) or (ii); 

6 ‘‘(bb) failed to provide an 

7 attestation or information re8 quested by the Secretary; or 

9 ‘‘(cc) knowingly provided 

10 any false attestation or informa11 tion under clause (iii). 

12 ‘‘(II) INFORMATION.—The Sec13 retary, after the performance of the 

14 criminal record and other background 

15 checks described in clause (iii), shall 

16 notify a regional center, new commer17 cial enterprise, or job-creating entity 

18 whether any person involved with such 

19 entities is not in compliance with 

20 clause (i) or (ii). If the regional cen21 ter, new commercial enterprise, or 

22 job-creating entity, as the case may 

23 be, fails to discontinue the prohibited 

24 person’s involvement with such entity 

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1 cation under this subclause, the re2 gional center, new commercial enter3 prise, or job-creating entity shall be 

4 deemed to have knowledge under sub5 clause (I)(aa) that such person is in 

6 violation of clause (i) or (ii). 

7 ‘‘(v) PERSONS INVOLVED WITH A RE8 GIONAL CENTER, NEW COMMERCIAL EN9 TERPRISE, OR JOB-CREATING ENTITY.—In 

10 this paragraph, a person is involved with a 

11 regional center, a new commercial enter12 prise, any affiliated job-creating entity, or 

13 other job-creating entity, as applicable, if 

14 the person is in a position of substantive 

15 authority to make operational or manage16 rial decisions over any pooling, 

17 securitization, investment, release, accept18 ance, or control of any funding that was 

19 procured under the EB–5 Regional Center 

20 Program. A person may be in a position of 

21 substantive authority if the person serves 

22 as the principal, representative, adminis23 trator, owner, officer, board member, man24 ager, executive, or general partner of the 

25 regional center, new commercial enterprise, 


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1 any affiliated job-creating entity, or other 

2 job-creating entity, respectively. 

3 ‘‘(I) COMPLIANCE WITH SECURITIES

4 LAWS.— 

5 ‘‘(i) JURISDICTION.— 

6 ‘‘(I) IN GENERAL.—The United 

7 States has jurisdiction, including sub8 ject matter jurisdiction, over the pur9 chase or sale of any security offered 

10 or sold by any regional center or any 

11 party associated with a regional cen12 ter for purposes of the securities laws. 

13 ‘‘(II) COMPLIANCE WITH REGU14 LATION S.—For purposes of section 5 

15 of the Securities Act of 1933 (15 

16 U.S.C. 77e), a regional center or any 

17 party associated with a regional cen18 ter is not precluded from offering or 

19 selling a security pursuant to Regula20 tion S (17 C.F.R. 230.901 et seq.) to 

21 the extent that such offering or selling 

22 otherwise complies with such regula23 tion. Subparagraph (I) is not intended 

24 to modify any existing regulations or 

25 interpretations of the Securities and 


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1 Exchange Commission related to the 

2 application of section 15(a) of the Se3 curities Exchange Act of 1934 (15 

4 U.S.C. 78o(a)) to foreign broker deal5 ers. 

6 ‘‘(ii) REGIONAL CENTER CERTIFI7 CATIONS REQUIRED.— 

8 ‘‘(I) INITIAL CERTIFICATION.— 

9 The Secretary of Homeland Security 

10 may not approve an application for re11 gional center designation or regional 

12 center amendment unless the regional 

13 center certifies that, to the best of the 

14 certifier’s knowledge, after a due dili15 gence investigation, the regional cen16 ter is in compliance with and has poli17 cies and procedures, including those 

18 related to internal and external due 

19 diligence, reasonably designed to con20 firm, as applicable, that all parties as21 sociated with the regional center are 

22 and will remain in compliance with 

23 the securities laws of the United 

24 States and of any State in which— 


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1 ‘‘(aa) the offer, purchase, or 

2 sale of securities was conducted; 

3 ‘‘(bb) the issuer of securities 

4 was located; or 

5 ‘‘(cc) the investment advice 

6 was provided by the regional cen7 ter or parties associated with the 

8 regional center. 

9 ‘‘(II) REISSUE.—A regional cen10 ter shall annually reissue a certifi11 cation described in subclause (I), in 

12 accordance with subparagraph (G), to 

13 certify compliance with clause (iii) by 

14 stating that— 

15 ‘‘(aa) the certifier is in a po16 sition to have knowledge of the 

17 offers, purchases, and sales of se18 curities or the provision of invest19 ment advice by parties associated 

20 with the regional center; 

21 ‘‘(bb) to the best of the cer22 tifier’s knowledge, after a due 

23 diligence investigation, all such 

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1 ment advice complied with the se2 curities laws of the United States 

3 and the securities laws of any 

4 State in which the offer, pur5 chase, or sale of securities was 

6 conducted, the issuer of securities 

7 was located, or the investment 

8 advice was provided; and 

9 ‘‘(cc) records, data, and in10 formation related to such offers, 

11 purchases, and sales have been 

12 maintained. 

13 ‘‘(III) EFFECT OF NONCOMPLI14 ANCE.—If a regional center, through 

15 its due diligence, discovered during 

16 the previous fiscal year that the re17 gional center or any party associated 

18 with the regional center was not in 

19 compliance with the securities laws of 

20 the United States or the securities 

21 laws of any State in which the securi22 ties activities were conducted by any 

23 party associated with the regional cen24 ter, the certifier shall— 


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1 ‘‘(aa) describe the activities 

2 that led to noncompliance; 

3 ‘‘(bb) describe the actions 

4 taken to remedy the noncompli5 ance; and 

6 ‘‘(cc) certify that the re7 gional center and all parties asso8 ciated with the regional center 

9 are currently in compliance, to 

10 the best of the certifier’s knowl11 edge, after a due diligence inves12 tigation. 

13 ‘‘(iii) OVERSIGHT REQUIRED.—Each 

14 regional center shall— 

15 ‘‘(I) monitor and supervise all of16 fers, purchases, and sales of, and in17 vestment advice relating to securities 

18 made by parties associated with the 

19 regional center to confirm compliance 

20 with the securities laws of the United 

21 States; 

22 ‘‘(II) maintain records, data, and 

23 information relating to all such offers, 

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1 vice during the 5-year period begin2 ning on the date of their creation; and 

3 ‘‘(III) make the records, data, 

4 and information described in sub5 clause (II) available to the Secretary 

6 upon request. 

7 ‘‘(iv) SUSPENSION OR TERMI8 NATION.—In addition to any other author9 ity provided to the Secretary under this 

10 paragraph, the Secretary may suspend or 

11 terminate the designation of any regional 

12 center or impose other sanctions against 

13 the regional center if the regional center, 

14 or any parties associated with the regional 

15 center that the regional center knew or 

16 reasonably should have known— 

17 ‘‘(I) are permanently or tempo18 rarily enjoined by order, judgment, or 

19 decree of any court of competent ju20 risdiction in connection with the offer, 

21 purchase, or sale of a security or the 

22 provision of investment advice; 

23 ‘‘(II) are subject to any final 

24 order of the Securities and Exchange 


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1 Commission or a State securities reg2 ulator that— 

3 ‘‘(aa) bars such person from 

4 association with an entity regu5 lated by the Securities and Ex6 change Commission or a State 

7 securities regulator; or 

8 ‘‘(bb) constitutes a final 

9 order based on a finding of an in10 tentional violation or a violation 

11 related to fraud or deceit in con12 nection with the offer, purchase, 

13 or sale of, or investment advice 

14 relating to, a security; or 

15 ‘‘(III) submitted or caused to be 

16 submitted a certification described in 

17 clause (ii) that contained an untrue 

18 statement of a material fact or omit19 ted to state a material fact necessary 

20 in order to make the statements 

21 made, in light of the circumstances 

22 under which they were made, not mis23 leading. 


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1 ‘‘(v) DEFINED TERM.—In this sub2 paragraph, the term ‘parties associated 

3 with a regional center’ means— 

4 ‘‘(I) the regional center; 

5 ‘‘(II) any new commercial enter6 prise or affiliated job-creating entity 

7 or issuer of securities under common 

8 control with the regional center; and 

9 ‘‘(III) the regional center’s and 

10 new commercial enterprise’s principal 

11 owners, officers, directors, managers 

12 and any person vested with the power 

13 to legally bind the regional center or 

14 new commercial enterprise. 

15 ‘‘(vi) SAVINGS PROVISION.—Nothing 

16 in this subparagraph may be construed to 

17 impair or limit the authority of the Securi18 ties and Exchange Commission under the 

19 Federal securities laws or any State securi20 ties regulator under State securities laws. 

21 ‘‘(J) EB–5 INTEGRITY FUND.— 

22 ‘‘(i) ESTABLISHMENT.—There is es23 tablished in the United States Treasury a 

24 special fund, which shall be known as the 

25 EB–5 Integrity Fund (referred to in this 


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1 subparagraph as the ‘Fund’). Amounts de2 posited into the Fund shall be available to 

3 the Secretary of Homeland Security until 

4 expended for the purposes set forth in 

5 clause (iii). 

6 ‘‘(ii) FEES.— 

7 ‘‘(I) ANNUAL FEE.—On April 1, 

8 2016, and on January 1 of each year 

9 thereafter, the Secretary of Homeland 

10 Security shall— 

11 ‘‘(aa) except as provided in 

12 item (bb), collect a fee of 

13 $20,000 from each regional cen14 ter designated under subpara15 graph (E); 

16 ‘‘(bb) collect a fee of 

17 $10,000 from each regional cen18 ter designated under subpara19 graph (E) that has 20 or fewer 

20 total investors in the preceding 

21 fiscal year in its new commercial 

22 enterprises; and 

23 ‘‘(cc) deposit the fees col24 lected pursuant to items (aa) and 

25 (bb) into the Fund. 


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1 ‘‘(II) PETITION FEE.—Beginning 

2 on April 1, 2016, the Secretary shall 

3 collect a fee of $1,000 with each peti4 tion filed under section 204(a)(1)(H) 

5 for classification under subparagraph 

6 (E) and deposit each fee collected 

7 under this subclause into the Fund. 

8 ‘‘(III) INCREASES.—The Sec9 retary may prescribe such regulations 

10 as may be necessary to increase the 

11 dollar amounts under this clause to 

12 ensure that the Fund is sufficient to 

13 carry out the purposes set forth in 

14 clause (iii). 

15 ‘‘(iii) PERMISSIBLE USES OF FUND.— 

16 The Secretary shall— 

‘‘(I) use not less than 1 17 ⁄3 of the 

18 amounts deposited into the Fund to 

19 conduct audits and site visits (with or 

20 without notice); 

‘‘(II) use not less than 1 21 ⁄3 of the 

22 amounts deposited into the Fund for 

23 investigations based outside of the 

24 United States, including— 


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1 ‘‘(aa) monitoring and inves2 tigating program-related events 

3 and promotional activities; and 

4 ‘‘(bb) ensuring the compli5 ance of alien investors with sub6 paragraph (L); 

7 ‘‘(III) use amounts deposited into 

8 the Fund— 

9 ‘‘(aa) to detect and inves10 tigate fraud or other crimes; and 

11 ‘‘(bb) to determine whether 

12 regional centers, new commercial 

13 enterprises, any affiliated job-cre14 ating entities, and alien investors 

15 (and their alien spouses and alien 

16 children) comply with the immi17 gration laws; 

18 ‘‘(IV) use amounts deposited into 

19 the Fund to conduct interviews of the 

20 owners, officers, directors, managers, 

21 partners, agents, employees, pro22 moters, and attorneys of regional cen23 ters, new commercial enterprises, and 

24 job-creating entities; and 


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1 ‘‘(V) use amounts deposited into 

2 the Fund as the Secretary determines 

3 to be necessary, including to monitor 

4 compliance with the requirements 

5 under section 3 of the EB–5 Integrity 

6 Act of 2016. 

7 ‘‘(iv) FAILURE TO PAY FEE.—The 

8 Secretary shall— 

9 ‘‘(I) impose a reasonable penalty, 

10 which shall be deposited into the 

11 Fund, if a regional center does not 

12 pay the fee required under clause (ii) 

13 within 30 days after the date on 

14 which such fee is due; and 

15 ‘‘(II) terminate the designation 

16 of any regional center that does not 

17 pay the fee required under clause (ii) 

18 within 90 days after the date on 

19 which such fee is due. 

20 ‘‘(v) REPORT.—The Secretary shall 

21 submit an annual report to the Committee 

22 on the Judiciary of the Senate and the 

23 Committee on the Judiciary of the House 

24 of Representatives that describes how 


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1 amounts in the Fund were expended dur2 ing the previous fiscal year. 

3 ‘‘(K) DIRECT AND THIRD-PARTY PRO4 MOTERS.— 

5 ‘‘(i) RULES AND STANDARDS.—Direct 

6 and third-party promoters of a regional 

7 center, any new commercial enterprise, an 

8 affiliated job-creating entity, or issuer of 

9 securities under common control with the 

10 regional center shall comply with the rules 

11 and standards prescribed by the Secretary 

12 of Homeland Security and any applicable 

13 Federal or State securities laws, to oversee 

14 regional center promotion, including— 

15 ‘‘(I) registration with U.S. Citi16 zenship and Immigration Services, 

17 which— 

18 ‘‘(aa) may be limited to 

19 identifying and contact informa20 tion of such promoter and con21 firmation of the existence of the 

22 written agreement required under 

23 clause (iii); 

24 ‘‘(bb) may not include any 

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1 ship and Immigration Services 

2 approve the registration of such 

3 promoter; and 

4 ‘‘(cc) may permit the list of 

5 such registered promoters to be 

6 made publicly available; 

7 ‘‘(II) certification by each pro8 moter that such promoter is not ineli9 gible under subparagraph (H)(i); 

10 ‘‘(III) guidelines for representing 

11 the visa process to foreign investors; 

12 and 

13 ‘‘(IV) permissible fee arrange14 ments, if applicable. 

15 ‘‘(ii) EFFECT OF VIOLATION.—If the 

16 Secretary determines that a direct or 

17 third-party promoter has violated clause 

18 (i), the Secretary shall suspend or perma19 nently bar such individual from participa20 tion in the program described in subpara21 graph (E). 

22 ‘‘(iii) COMPLIANCE.—Each regional 

23 center shall maintain a written agreement 

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1 ating entity, or any issuer of securities 

2 under common control with the regional 

3 center, and each direct or third-party pro4 moter operating on behalf of such entities 

5 or issuer that outlines the rules and stand6 ards prescribed under clause (i). 

7 ‘‘(iv) DISCLOSURE.—Each petition 

8 filed under section 204(a)(1)(H) shall in9 clude a disclosure, signed by the investor, 

10 that reflects all fees, ongoing interest, and 

11 other compensation paid to any person 

12 that the regional center or new commercial 

13 enterprise knows has received, or will re14 ceive, in connection with the investment, 

15 including compensation to agents, finders, 

16 or broker dealers involved in the offering, 

17 to the extent not already specifically identi18 fied in the business plan filed under sub19 paragraph (F). 

20 ‘‘(L) SOURCE OF FUNDS.— 

21 ‘‘(i) IN GENERAL.—An alien investor 

22 shall demonstrate that the capital required 

23 under subparagraph (A) and any amounts 

24 used to pay administrative costs and fees 

25 associated with the alien’s investment were 


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1 obtained from a lawful source and through 

2 lawful means. 

3 ‘‘(ii) REQUIRED INFORMATION.—The 

4 Secretary of Homeland Security shall re5 quire that an alien investor’s petition 

6 under this paragraph contain, as applica7 ble— 

8 ‘‘(I) business and tax records, in9 cluding— 

10 ‘‘(aa) foreign business reg11 istration records, if applicable; 

12 ‘‘(bb) corporate or partner13 ship tax returns (or tax returns 

14 of any other entity in any form 

15 filed in any country or subdivi16 sion of such country), and per17 sonal tax returns including in18 come, franchise, property (wheth19 er real, personal, or intangible), 

20 or any other tax returns of any 

21 kind, filed during the past 7 

22 years, or another period to be de23 termined by the Secretary to en24 sure that the investment is ob25 tained from a lawful source of 


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1 funds, with any taxing jurisdic2 tion in or outside the United 

3 States by or on behalf of the 

4 alien investor, if applicable; and 

5 ‘‘(cc) evidence identifying 

6 any other source of capital or ad7 ministrative fees; 

8 ‘‘(II) evidence related to mone9 tary judgments against the alien in10 vestor, including certified copies of 

11 any judgments, and evidence of all 

12 pending governmental civil or criminal 

13 actions, governmental administrative 

14 proceedings, and any private civil ac15 tions involving possible monetary 

16 judgments against the alien investor 

17 from any court in or outside the 

18 United States; and 

19 ‘‘(III) the identity of all persons 

20 who transfer into the United States, 

21 on behalf of the investor— 

22 ‘‘(aa) any funds that are 

23 used to meet the capital require24 ment under subparagraph (A); 

25 and 


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1 ‘‘(bb) any funds that are 

2 used to pay administrative costs 

3 and fees associated with the 

4 alien’s investment. 

5 ‘‘(iii) GIFT RESTRICTIONS.—Gifted 

6 funds may be counted toward the min7 imum capital investment requirement 

8 under subparagraph (C) only if such funds 

9 were gifted to the alien investor in good 

10 faith and not to circumvent any limitations 

11 imposed on permissible sources of capital 

12 under this subparagraph. If a significant 

13 portion of the capital invested under sub14 paragraph (A) was gifted to the alien in15 vestor, the Secretary shall require the alien 

16 investor’s petition under this paragraph to 

17 include records described in subclauses (I) 

18 and (II) of clause (ii) from the donor. 

19 ‘‘(M) TREATMENT OF INVESTORS IF A RE20 GIONAL CENTER HAS BEEN TERMINATED.— 

21 ‘‘(i) IN GENERAL.—Upon the termi22 nation or debarment, as applicable, from 

23 the program under this paragraph of a re24 gional center, new commercial enterprise, 


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1 or job-creating entity under this para2 graph— 

3 ‘‘(I) except as provided in sub4 clause (II), an otherwise qualified ap5 proved petition under section 

6 204(a)(1)(H) or the conditional per7 manent residence of an alien who has 

8 been admitted to the United States 

9 pursuant to section 216A(a)(1) based 

10 on an investment in a terminated re11 gional center, new commercial enter12 prise, or job-creating entity shall re13 main valid or continue to be author14 ized, as applicable, consistent with 

15 this subparagraph; and 

16 ‘‘(II) if the Secretary has reason 

17 to believe the alien was a knowing 

18 participant in the conduct that led to 

19 the termination of such regional cen20 ter, new commercial enterprise, or 

21 job-creating entity, the Secretary shall 

22 notify the alien of such belief and, 

23 subject to section 216A(b)(2), shall 

24 terminate the permanent resident sta25 tus of the alien (and the alien’s 


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1 spouse and child) as of the date of 

2 such determination. 

3 ‘‘(ii) NEW REGIONAL CENTER OR IN4 VESTMENT.—The petition under section 

5 204(a)(1)(H) of an alien described in 

6 clause (i)(I) shall be denied or revoked or 

7 the conditional permanent resident status 

8 of an alien described in clause (i)(I) shall 

9 be terminated 180 days after the termi10 nation from the program under this para11 graph of a regional center, a new commer12 cial enterprise, or a job creating entity un13 less— 

14 ‘‘(I) in the case of the termi15 nation of a regional center— 

16 ‘‘(aa) the new commercial 

17 enterprise associates with an ap18 proved regional center, regardless 

19 of the geography of its designa20 tion; 

21 ‘‘(bb) the alien makes a 

22 qualifying investment in another 

23 commercial enterprise associated 

24 with an approved regional center; 

25 or 


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1 ‘‘(cc) the alien makes a 

2 qualifying investment in another 

3 commercial enterprise under this 

4 paragraph not associated with a 

5 regional center; or 

6 ‘‘(II) in the case of the debar7 ment of a new commercial enterprise 

8 or job-creating entity, the alien invests 

9 in another commercial enterprise asso10 ciated with an approved regional cen11 ter. 

12 ‘‘(iii) REMOVAL OF CONDITIONS.— 

13 Aliens described in subclauses (I)(bb), 

14 (I)(cc), and (II) of clause (ii) shall be eligi15 ble to have their conditions removed pursu16 ant to section 216A beginning on the date 

17 that is 2 years after the date of the subse18 quent investment. 

19 ‘‘(N) THREATS TO THE NATIONAL INTER20 EST.— 

21 ‘‘(i) DENIAL OR REVOCATION.—The 

22 Secretary of Homeland Security shall deny 

23 or revoke the approval of a petition, appli24 cation, or benefit described in this para25 graph, including the documents described 


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1 in clause (ii), if the Secretary determines 

2 that the approval of such petition, applica3 tion, or benefit is contrary to the national 

4 interest of the United States for reasons 

5 relating to threats to public safety or na6 tional security. 

7 ‘‘(ii) DOCUMENTS.—The documents 

8 described in this clause are— 

9 ‘‘(I) a certification, designation, 

10 or amendment to the designation of a 

11 regional center; 

12 ‘‘(II) a petition seeking classifica13 tion of an alien as an alien investor 

14 under this paragraph; 

15 ‘‘(III) a petition to remove condi16 tions under section 216A; and 

17 ‘‘(IV) an application for approval 

18 of a business plan in a commercial en19 terprise under subparagraph (F). 

20 ‘‘(iii) DEBARMENT.—If a regional 

21 center, new commercial enterprise, or job22 creating entity has its designation or par23 ticipation in the program under this para24 graph terminated for reasons relating to 

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1 son associated with such regional center, 

2 new commercial enterprise, or job-creating 

3 entity, including an alien investor, shall be 

4 permanently barred from future participa5 tion in the program under this paragraph 

6 if the Secretary of Homeland Security, in 

7 the Secretary’s discretion, determines, by a 

8 preponderance of the evidence, that such 

9 person was a knowing participant in the 

10 conduct that led to the termination. 

11 ‘‘(iv) NOTICE.—If the Secretary of 

12 Homeland Security determines that the ap13 proval of a petition, application, or benefit 

14 described in this paragraph should be de15 nied or revoked pursuant to clause (i), the 

16 Secretary shall— 

17 ‘‘(I) notify the relevant indi18 vidual, regional center, or commercial 

19 entity of such determination; and 

20 ‘‘(II) deny or revoke such peti21 tion, application, or benefit or termi22 nate the permanent resident status of 

23 the alien (and the alien spouse and 

24 alien children of such immigrant) as 

25 of the date of such determination. 


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1 ‘‘(v) JUDICIAL REVIEW.—Notwith2 standing any other provision of law (statu3 tory or nonstatutory), including section 

4 2241 of title 28, United States Code, any 

5 other habeas corpus provision, and sections 

6 1361 and 1651 of such title, no court shall 

7 have jurisdiction to review a denial or rev8 ocation under this subparagraph. Nothing 

9 in this clause may be construed as pre10 cluding review of constitutional claims or 

11 questions of law raised upon a petition for 

12 review filed with an appropriate court of 

13 appeals under section 242. 

14 ‘‘(O) FRAUD, MISREPRESENTATION, AND

15 CRIMINAL MISUSE.— 

16 ‘‘(i) DENIAL OR REVOCATION.—The 

17 Secretary of Homeland Security shall deny 

18 or revoke the approval of a petition, appli19 cation, or benefit described in this para20 graph, including the documents described 

21 in subparagraph (N)(ii), if the Secretary 

22 determines that such petition, application, 

23 or benefit was predicated on or involved 

24 fraud, deceit, intentional material mis25 representation, or criminal misuse. 


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1 ‘‘(ii) DEBARMENT.—If a regional cen2 ter, new commercial enterprise, or job-cre3 ating entity has its designation or partici4 pation in the program under this para5 graph terminated for reasons relating to 

6 fraud, intentional material misrepresenta7 tion, or criminal misuse, any person associ8 ated with such regional center, new com9 mercial enterprise, or job-creating entity, 

10 including an alien investor, shall be perma11 nently barred from future participation in 

12 the program under this paragraph if the 

13 Secretary determines, by a preponderance 

14 of the evidence, that such person was a 

15 knowing participant in the conduct that led 

16 to the termination. 

17 ‘‘(iii) NOTICE.—If the Secretary de18 termines that the approval of a petition, 

19 application, or benefit described in this 

20 paragraph should be denied or revoked 

21 pursuant to clause (i), the Secretary 

22 shall— 

23 ‘‘(I) notify the relevant indi24 vidual, regional center, or commercial 

25 entity of such determination; and 


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1 ‘‘(II) deny or revoke such peti2 tion, application, or benefit or termi3 nate the permanent resident status of 

4 the alien (and the alien spouse and 

5 alien children of such immigrant) as 

6 of the date of such determination. 

7 ‘‘(P) ADMINISTRATIVE APPELLATE RE8 VIEW.— 

9 ‘‘(i) IN GENERAL.—The Director of 

10 U.S. Citizenship and Immigration Services 

11 shall provide an opportunity for an admin12 istrative appellate review by the Adminis13 trative Appeals Office of U.S. Citizenship 

14 and Immigration Services of any deter15 mination made under this paragraph, in16 cluding— 

17 ‘‘(I) an application for regional 

18 center designation or regional center 

19 amendment; 

20 ‘‘(II) an application for approval 

21 of a business plan under subpara22 graph (F); 

23 ‘‘(III) a petition by an alien in24 vestor for status as an immigrant 

25 under this paragraph; 


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1 ‘‘(IV) the termination or suspen2 sion of any benefit accorded under 

3 this paragraph; and 

4 ‘‘(V) any sanction imposed by the 

5 Secretary of Homeland Security under 

6 this paragraph. 

7 ‘‘(ii) JUDICIAL REVIEW.—Subject to 

8 section 242(a)(2), and notwithstanding any 

9 other provision of law (statutory or non10 statutory), including section 2241 of title 

11 28, United States Code, any other habeas 

12 corpus provision, and sections 1361 and 

13 1651 of such title, no court shall have ju14 risdiction to review a determination under 

15 this paragraph until the regional center, its 

16 associated entities, or the alien investor 

17 has exhausted all administrative appeals.’’. 

18 (b) EFFECTIVE DATES.— 

19 (1) IN GENERAL.—Except as otherwise pro20 vided in this section, this section, and the amend21 ments made by this section, shall take effect on the 

22 date that is 90 days after the date of the enactment 

23 of this Act. 

24 (2) EXCEPTIONS.—Clause (iv) of subparagraph 

25 (E) and subparagraph (L) of section 203(b)(5) of 


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1 the Immigration and Nationality Act (8 U.S.C. 

2 1153(b)(5)) shall not apply to a petition that— 

3 (A) was filed by an alien investor under 

4 such section 203(b)(5) before the date of the 

5 enactment of this Act; or 

6 (B) is filed under section 216A of such Act 

7 (8 U.S.C. 1186b) if the underlying petition filed 

8 under section 203(b)(5) of such Act was filed 

9 before the date of the enactment of this Act. 

10 (c) GAO REPORT.—Not later than December 31, 

11 2018, the Comptroller General of the United States shall 

12 submit a report to the Committee on the Judiciary of the 

13 Senate and the Committee on the Judiciary of the House 

14 of Representatives that describes— 

15 (1) the economic benefits of the regional center 

16 program established under section 203(b)(5) of the 

17 Immigration and Nationality Act (8 U.S.C. 

18 1153(b)(5)), including the steps taken by U.S. Citi19 zenship and Immigration Services to verify job cre20 ation; 

21 (2) the extent to which U.S. Citizenship and 

22 Immigration Services ensures compliance by regional 

23 center participants with their obligations under the 

24 immigrant investor program; 


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1 (3) the extent to which U.S. Citizenship and 

2 Immigration Services has maintained records of re3 gional centers and associated commercial enter4 prises, including annual statements and certifi5 cations; 

6 (4) the steps taken by U.S. Citizenship and Im7 migration Services to verify the source of funds, as 

8 required under section 203(b)(5)(L) of the Immigra9 tion and Nationality Act, as added by subsection (a); 

10 (5) the extent to which U.S. Citizenship and 

11 Immigration Services collaborates with other Federal 

12 and law enforcement agencies, particularly to detect 

13 illegal activity and threats to national security re14 lated to the regional center program; 

15 (6) the extent to which U.S. Citizenship and 

16 Immigration Services has prevented fraud and abuse 

17 in regional center activities, including the designa18 tion of targeted employment areas in areas that oth19 erwise have high employment; 

20 (7) the extent to which U.S. Citizenship and 

21 Immigration Services has used its authority to sanc22 tion, suspend, bar, or terminate regional centers or 

23 individuals affiliated with regional centers; 

24 (8) the steps taken to oversee direct and third25 party promoters under section 203(b)(5)(K) of the 


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1 Immigration and Nationality Act, as added by sub2 section (a); 

3 (9) the extent to which employees of the De4 partment of Homeland Security have complied with 

5 the ethical standards and transparency requirements 

6 set forth in section 3; and 

7 (10) the amounts expended from the EB–5 In8 tegrity Fund established under section 203(b)(5)(J) 

9 of the Immigration and Nationality Act, as added by 

10 subsection (a). 

11 (d) INSPECTOR GENERAL REPORT.—Not later than 

12 December 31, 2018, the Inspector General of the Intel13 ligence Community, in coordination with the Inspector 

14 General of the Department of Homeland Security and 

15 after consultation with relevant Federal agencies, includ16 ing U.S. Immigration and Customs Enforcement, shall 

17 submit a report to the Committee on the Judiciary of the 

18 Senate and the Committee on the Judiciary of the House 

19 of Representatives regarding the immigrant visa program 

20 set forth in section 203(b)(5) of the Immigration and Na21 tionality Act (8 U.S.C. 1153(b)(5)) that describes— 

22 (1) the vulnerabilities within the program that 

23 may undermine the national security of the United 

24 States; 


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1 (2) the actual or potential use of the program 

2 to facilitate export of sensitive technology; 

3 (3) the actual or potential use of the program 

4 to facilitate economic espionage; 

5 (4) the actual or potential use of the program 

6 by foreign government agents; and 

7 (5) the actual or potential use of the program 

8 to facilitate terrorist activity, including funding ter9 rorist activity or laundering terrorist funds. 

10 (e) REVIEW OF JOB CREATION METHODOLOGIES.— 

11 Not later than 1 year after the date of the enactment of 

12 this Act, the Secretary of Homeland Security, in consulta13 tion with the Bureau of Economic Analysis of the Depart14 ment of Commerce, or another component within the De15 partment of Commerce, as determined by the Secretary 

16 of Commerce, shall issue regulations to determine eco17 nomically and statistically valid general economic meth18 odologies that comply with section 203(b)(5)(A)(ii) of the 

19 Immigration and Nationality Act (8 U.S.C. 

20 1153(b)(5)(A)(ii)). 

21 (f) TECHNICAL AMENDMENT.—Section 

22 203(b)(5)(C)(iii) of the Immigration and Nationality Act 

23 (8 U.S.C. 1153(b)(5)(C)(iii)) is amended by striking ‘‘At24 torney General’’ and inserting ‘‘Secretary of Homeland 

25 Security’’. 


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1 (g) DEFINITIONS.— 

2 (1) IN GENERAL.—Section 203(b)(5)(D) of the 

3 Immigration and Nationality Act (8 U.S.C. 

4 1153(b)(5)(D)) is amended to read as follows: 

5 ‘‘(D) DEFINITIONS.—In this paragraph: 

6 ‘‘(i) AFFILIATED JOB-CREATING ENTI7 TY.—The term ‘affiliated job-creating enti8 ty’ means any job-creating entity that is 

9 controlled, managed, or owned by any of 

10 the persons involved with the regional cen11 ter or new commercial enterprise under 

12 subparagraph (H)(v). 

13 ‘‘(ii) CAPITAL.—The term ‘capital’— 

14 ‘‘(I) means cash (including the 

15 cash proceeds of indebtedness) and all 

16 real, personal, or mixed tangible as17 sets owned and controlled by the alien 

18 investor, or held in trust for the ben19 efit of the alien and to which the alien 

20 has unrestricted access; 

21 ‘‘(II) shall be valued at fair mar22 ket value in United States dollars, in 

23 accordance with Generally Accepted 

24 Accounting Principles or other stand25 ard accounting practice adopted by 


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1 the Securities and Exchange Commis2 sion, at the time such capital is in3 vested under this paragraph; and 

4 ‘‘(III) shall not include assets ac5 quired, directly or indirectly, by un6 lawful means, including any cash pro7 ceeds of indebtedness secured by such 

8 assets. 

9 ‘‘(iii) CERTIFIER.—The term ‘cer10 tifier’ means a person in a position of sub11 stantive authority for the management or 

12 operations of a regional center, new com13 mercial enterprise, affiliated job-creating 

14 entity, or issuer of securities under com15 mon control with any of such entities, such 

16 as a principal executive officer or principal 

17 financial officer, with knowledge of such 

18 entities’ policies and procedures related to 

19 compliance with the requirements under 

20 this paragraph. 

21 ‘‘(iv) FULL-TIME EMPLOYMENT.—The 

22 term ‘full-time employment’ means employ23 ment in a position that requires at least 35 

24 hours of service per week at any time, re25 gardless of who fills the position. 


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1 ‘‘(v) JOB-CREATING ENTITY.—The 

2 term ‘job-creating entity’ means any orga3 nization that— 

4 ‘‘(I) is formed in the United 

5 States for the ongoing conduct of law6 ful business, including a partnership 

7 (whether limited or general), corpora8 tion, limited liability company, or 

9 other entity that receives, or is estab10 lished to receive, capital investment 

11 from alien investors or a new commer12 cial enterprise under the regional cen13 ter program described in subpara14 graph (E); and 

15 ‘‘(II) is responsible for creating 

16 jobs to satisfy the requirement under 

17 subparagraph (A)(ii). 

18 ‘‘(vi) NEW COMMERCIAL ENTER19 PRISE.—The term ‘new commercial enter20 prise’ means any for-profit organization 

21 formed in the United States for the ongo22 ing conduct of lawful business, including a 

23 partnership (whether limited or general), 

24 corporation, limited liability company, or 

25 other entity that receives, or is established 


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1 to receive, capital investment from inves2 tors under this paragraph.’’. 

3 (2) EFFECTIVE DATES.—The amendments 

4 made by this subsection shall take effect on the date 

5 of the enactment of this Act. 

6 SEC. 3. TRANSPARENCY. 

7 (a) IN GENERAL.—Employees of the Department of 

8 Homeland Security, including the Secretary of Homeland 

9 Security, the Secretary’s counselors, the Assistant Sec10 retary for the Private Sector, the Director of U.S. Citizen11 ship and Immigration Services, counselors to such Direc12 tor, and the Chief of Immigrant Investor Programs at 

13 U.S. Citizenship and Immigration Services, shall act im14 partially and may not give preferential treatment to any 

15 entity, organization, or individual in connection with any 

16 aspect of the immigrant visa program described in section 

17 203(b)(5) of the Immigration and Nationality Act (8 

18 U.S.C. 1153(b)(5)). 

19 (b) IMPROPER ACTIVITIES.—Activities that con20 stitute preferential treatment under subsection (a) shall 

21 include— 

22 (1) working on, or in any way attempting to in23 fluence, in a manner not available to or accorded to 

24 all other petitioners, applicants, and seekers of bene25 fits under the immigrant visa program described in 


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1 section 203(b)(5) of the Immigration and Nation2 ality Act (8 U.S.C. 1153(b)(5)), the standard proc3 essing of an application, petition, or benefit for— 

4 (A) a regional center; 

5 (B) a new commercial enterprise; 

6 (C) a job-creating entity; or 

7 (D) any person or entity associated with 

8 such regional center, new commercial enter9 prise, or job-creating entity; and 

10 (2) meeting or communicating with persons as11 sociated with the entities described in paragraph (1), 

12 at the request of such persons, in a manner not 

13 available to or accorded to all other petitioners, ap14 plicants, and seekers of benefits under such immi15 grant visa program. 

16 (c) REPORTING OF COMMUNICATIONS.— 

17 (1) WRITTEN COMMUNICATION.—Employees of 

18 the Department of Homeland Security, including the 

19 officials listed in subsection (a), shall include, in the 

20 record of proceeding for a case under section 

21 203(b)(5) of the Immigration and Nationality Act (8 

22 U.S.C. 1153(b)(5)), actual or electronic copies of all 

23 case-specific written communication, including e24 mails from government and private accounts, with 

25 non-Department persons or entities advocating for 


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1 regional center applications or individual petitions 

2 under such section that are pending on or after the 

3 date of the enactment of this Act (other than rou4 tine communications with other agencies of the Fed5 eral Government regarding the case, including com6 munications involving background checks and litiga7 tion defense). 

8 (2) ORAL COMMUNICATION.—If substantive oral 

9 communication, including telephonic communication, 

10 virtual communication, and in-person meetings, 

11 takes place between officials of the Department of 

12 Homeland Security and non-Department persons or 

13 entities advocating for regional center applications 

14 or individual petitions under section 203(b)(5) of the 

15 Immigration and Nationality Act (8 U.S.C. 

16 1153(b)(5)) that are pending on or after the date of 

17 the enactment of this Act (other than routine com18 munications with other agencies of the Federal Gov19 ernment regarding the case, including communica20 tions involving background checks and litigation de21 fense)— 

22 (A) the conversation shall be recorded; or 

23 (B) detailed minutes of the session shall be 

24 taken and included in the record of proceeding. 

25 (3) NOTIFICATION.— 


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1 (A) IN GENERAL.—If the Secretary of 

2 Homeland Security, in the course of written or 

3 oral communication described in this sub4 section, receives evidence about a specific case 

5 from anyone other than an affected party or his 

6 or her representative (excluding Federal Gov7 ernment or law enforcement sources), such in8 formation may not be made part of the record 

9 of proceeding and may not be considered in ad10 judicative proceedings unless— 

11 (i) the affected party has been given 

12 notice of such evidence; and 

13 (ii) if such evidence is derogatory, the 

14 affected party has been given an oppor15 tunity to respond to the evidence. 

16 (B) INFORMATION FROM LAW ENFORCE17 MENT, INTELLIGENCE AGENCIES, OR CON18 FIDENTIAL SOURCES.— 

19 (i) LAW ENFORCEMENT OR INTEL20 LIGENCE AGENCIES.—Evidence received 

21 from law enforcement or intelligence agen22 cies may not be made part of the record of 

23 proceeding without the consent of the rel24 evant agency or law enforcement entity. 


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1 (ii) WHISTLEBLOWERS, CONFIDEN2 TIAL SOURCES, OR INTELLIGENCE AGEN3 CIES.—Evidence received from whistle4 blowers, other confidential sources, or the 

5 intelligence community that is included in 

6 the record of proceeding and considered in 

7 adjudicative proceedings shall be handled 

8 in a manner that does not reveal the iden9 tity of the whistleblower or confidential 

10 source, or reveal classified information. 

11 (d) CONSIDERATION OF EVIDENCE.— 

12 (1) IN GENERAL.—Case-specific communication 

13 with persons or entities that are not part of the De14 partment of Homeland Security may not be consid15 ered in the adjudication of an application or petition 

16 under section 203(b)(5) of the Immigration and Na17 tionality Act (8 U.S.C. 1153(b)(5)) unless the com18 munication is included in the record of proceeding of 

19 the case. 

20 (2) WAIVER.—The Secretary of Homeland Se21 curity may waive the application of paragraph (1) 

22 only in the interests of national security or for inves23 tigative or law enforcement purposes. 

24 (e) CHANNELS OF COMMUNICATION.— 


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1 (1) E-MAIL ADDRESS OR EQUIVALENT.—The 

2 Director of U.S. Citizenship and Immigration Serv3 ices shall maintain an e-mail account (or equivalent 

4 means of communication) for persons or entities— 

5 (A) with inquiries regarding specific peti6 tions or applications under the immigrant visa 

7 program described in section 203(b)(5) of the 

8 Immigration and Nationality Act (8 U.S.C. 

9 1153(b)(5)); or 

10 (B) seeking non-case-specific information 

11 about the immigrant visa program described in 

12 such section 203(b)(5). 

13 (2) COMMUNICATION ONLY THROUGH APPRO14 PRIATE CHANNELS OR OFFICES.— 

15 (A) ANNOUNCEMENT OF APPROPRIATE

16 CHANNELS OF COMMUNICATION.—Not later 

17 than 40 days after the date of the enactment of 

18 this Act, the Director of U.S. Citizenship and 

19 Immigration Services shall announce that the 

20 only channels or offices by which industry 

21 stakeholders, petitioners, applicants, and seek22 ers of benefits under the immigrant visa pro23 gram described in section 203(b)(5) of the Im24 migration and Nationality Act (8 U.S.C. 

25 1153(b)(5)) may communicate with the DepartVerDate Sep 11 2014 00:39 Feb 12, 2016 Jkt 059200 PO 00000 Frm 00069 Fmt 6652 Sfmt 6201 E:\BILLS\H4530.IH H4530

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1 ment of Homeland Security regarding specific 

2 cases under such section (except for commu3 nication made by applicants and petitioners 

4 pursuant to regular adjudicatory procedures), 

5 or non-case-specific information about the visa 

6 program applicable to certain cases under such 

7 section, are through— 

8 (i) the e-mail address or equivalent 

9 channel described in paragraph (1); 

10 (ii) the National Customer Service 

11 Center of U.S. Citizenship and Immigra12 tion Services, or any successor to that Cen13 ter; or 

14 (iii) the Customer Service and Public 

15 Engagement Directorate, the Immigrant 

16 Investor Program Office, or any successor 

17 agencies. 

18 (B) DIRECTION OF INCOMING COMMUNICA19 TIONS.— 

20 (i) IN GENERAL.—Employees of the 

21 Department of Homeland Security shall di22 rect communications described in subpara23 graph (A) to the channels of communica24 tion or offices listed in subparagraph (A). 


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1 (ii) RULE OF CONSTRUCTION.—Noth2 ing in this subparagraph may be construed 

3 to prevent— 

4 (I) any person from commu5 nicating with the Ombudsman of U.S. 

6 Citizenship and Immigration Services 

7 regarding the immigrant investor pro8 gram under section 203(b)(5) of the 

9 Immigration and Nationality Act (8 

10 U.S.C. 1153(b)(5)); or 

11 (II) the Ombudsman from resolv12 ing problems regarding such immi13 grant investor program under section 

14 452 of the Homeland Security Act of 

15 2002 (6 U.S.C. 272). 

16 (C) LOG.— 

17 (i) IN GENERAL.—The Director of 

18 U.S. Citizenship and Immigration Services 

19 shall maintain a written or electronic log 

20 of— 

21 (I) all communications described 

22 in subparagraph (A) and communica23 tions from Members of Congress, 

24 which shall reference— 


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1 (aa) the date, time, and sub2 ject of the communication; and 

3 (bb) the identity of the De4 partment of Homeland Security 

5 official, if any, to whom the in6 quiry was forwarded; 

7 (II) with respect to written com8 munications described in subsection 

9 (c)(1)— 

10 (aa) the date on which such 

11 communication was received; 

12 (bb) the identities of the 

13 sender and addressee; and 

14 (cc) the subject of such com15 munication; and 

16 (III) with respect to oral commu17 nications described in subsection 

18 (c)(2)— 

19 (aa) the date on which such 

20 communication occurred; 

21 (bb) the participants in the 

22 conversation or meeting; and 

23 (cc) the subject of such com24 munication. 


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1 (ii) TRANSPARENCY.—The log of com2 munications described in clause (i) shall be 

3 made publicly available in accordance with 

4 section 552 of title 5, United States Code 

5 (commonly known as the ‘‘Freedom of In6 formation Act’’). 

7 (3) PUBLICATION OF INFORMATION.—If, as a 

8 result of a communication with an official of the De9 partment of Homeland Security, a person or entity 

10 inquiring about a specific case or about the immi11 grant visa program described in section 203(b)(5) of 

12 the Immigration and Nationality Act (8 U.S.C. 

13 1153(b)(5)) received generally applicable and non14 case-specific information about program require15 ments or administration that has not been made 

16 publicly available by the Department, the Director of 

17 U.S. Citizenship and Immigration Services shall 

18 publish such information on the U.S. Citizenship 

19 and Immigration Services website, not later than 30 

20 days after the communication of such information to 

21 such person or entity, as an update to the relevant 

22 Frequently Asked Questions page or by some other 

23 comparable mechanism. 

24 (f) PENALTY.— 


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1 (1) IN GENERAL.—Any person who inten2 tionally violates the prohibition on preferential treat3 ment under this section or intentionally violates the 

4 reporting requirements under subsection (c) shall be 

5 disciplined in accordance with paragraph (2). 

6 (2) SANCTIONS.—Not later than 90 days after 

7 the date of the enactment of this Act, the Secretary 

8 of Homeland Security shall establish, in addition to 

9 any criminal or civil penalties that may be imposed, 

10 a graduated set of sanctions based on the severity of 

11 the violation referred to in paragraph (1), which 

12 may include written reprimand, suspension, demo13 tion, or removal. 

14 (g) RULE OF CONSTRUCTION.—Nothing in this sec15 tion may be construed to modify any law, regulation, or 

16 policy regarding the handling or disclosure of classified in17 formation. 

18 (h) NO CREATION OF PRIVATE RIGHT OF ACTION.— 

19 Nothing in this section may be construed to create or au20 thorize a private right of action to challenge a decision 

21 of an employee of the Department of Homeland Security. 

22 (i) EFFECTIVE DATE.—This section, and the amend23 ments made by this section, shall take effect on the date 

24 of the enactment of this Act. 

Æ 


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