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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4530 Introduced in House (IH)]

<DOC>

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``EB-5 Integrity Act of 2016''.

SEC. 2. REFORM OF THE REGIONAL CENTER PROGRAM.

    (a) Integrity Reforms.--Section 203(b)(5) of the Immigration and 
Nationality Act (8 U.S.C. 1153(b)(5)) is amended by adding at the end 
the following:
                    ``(E) Regional center program.--
                            ``(i) Processing.--In processing petitions 
                        under section 204(a)(1)(H) for classification 
                        under this paragraph, the Secretary of Homeland 
                        Security--
                                    ``(I) may process petitions in a 
                                manner and order established by the 
                                Secretary; and
                                    ``(II) shall deem such petitions to 
                                include records previously filed with 
                                the Secretary pursuant to subparagraph 
                                (F) if the alien petitioner certifies 
                                that such records are incorporated by 
                                reference into the alien's petition.
                            ``(ii) Establishment of a regional 
                        center.--A regional center shall operate within 
                        a defined and limited geographic area, which 
                        shall be described in the proposal and be 
                        consistent with the purpose of concentrating 
                        pooled investment within such area. The 
                        proposal to establish a regional center shall--
                                    ``(I) demonstrate that the pooled 
                                investment will have a significant 
                                economic impact on such geographic 
                                area;
                                    ``(II) include reasonable 
                                predictions, supported by economically 
                                and statistically valid forecasting 
                                tools, concerning--
                                            ``(aa) the amount of 
                                        investment that will be pooled;
                                            ``(bb) the kinds of 
                                        commercial enterprises that 
                                        will receive such investments;
                                            ``(cc) the details of the 
                                        jobs that will be created 
                                        directly or indirectly as a 
                                        result of such investments; and
                                            ``(dd) other positive 
                                        economic effects such 
                                        investments will have; and
                                    ``(III) include a description of 
                                the policies and procedures in place 
                                reasonably designed to monitor new 
                                commercial enterprises and any 
                                affiliated job-creating entity to 
                                ensure compliance with--
                                            ``(aa) all applicable laws, 
                                        regulations, and Executive 
                                        orders of the United States, 
                                        including immigration laws (as 
                                        defined in section 101(a)(17)) 
                                        and securities laws; and
                                            ``(bb) all securities laws 
                                        of each State in which 
                                        securities offerings will be 
                                        conducted, investment advice 
                                        will be rendered, or the 
                                        offerors or offerees reside.
                            ``(iii) Compliance.--
                                    ``(I) In general.--In determining 
                                compliance with subparagraph (A)(ii), 
                                the Secretary of Homeland Security 
                                shall permit aliens seeking admission 
                                under this subparagraph to rely on 
                                economically and statistically valid 
                                methodologies for determining the 
                                number of jobs created by the program, 
                                including--
                                            ``(aa) jobs estimated to 
                                        have been created directly, 
                                        which may be verified using 
                                        such methodologies, provided 
                                        that the Secretary may request 
                                        additional evidence to verify 
                                        that the directly created jobs 
                                        satisfy the requirements under 
                                        subparagraph (A)(ii); and
                                            ``(bb) consistent with this 
                                        subparagraph, jobs estimated to 
                                        have been created indirectly 
                                        through revenues generated from 
                                        increased exports, improved 
                                        regional productivity, job 
                                        creation, and increased 
                                        domestic capital investment 
                                        resulting from the program.
                                    ``(II) Job and investment 
                                requirements.--
                                            ``(aa) Relocated jobs.--In 
                                        determining compliance with the 
                                        job creation requirement under 
                                        subparagraph (A)(ii), the 
                                        Secretary may include jobs 
                                        estimated to be created under a 
                                        methodology that attributes 
                                        jobs to prospective tenants 
                                        occupying commercial real 
                                        estate created or improved by 
                                        capital investments if the 
                                        number of such jobs estimated 
                                        to be created has been 
                                        determined by an economically 
                                        and statistically valid 
                                        methodology and such jobs are 
                                        not existing jobs that have 
                                        been relocated.
                                            ``(bb) Publicly available 
                                        bonds.--Alien investor capital 
                                        may not be utilized, by a new 
                                        commercial enterprise or 
                                        otherwise, to purchase 
                                        municipal bonds or any other 
                                        bonds, if such bonds are 
                                        available to the general 
                                        public, either as part of a 
                                        primary offering or from a 
                                        secondary market.
                            ``(iv) Amendments.--The Secretary of 
                        Homeland Security shall--
                                    ``(I) require regional centers to 
                                give advance notice to, and obtain 
                                approval from, the Secretary of 
                                significant proposed changes to their 
                                organizational structure, ownership, or 
                                administration, including the sale of 
                                such centers or other arrangements in 
                                which individuals not previously 
                                subject to the requirements under 
                                subparagraph (H) become involved with 
                                the regional center, before any such 
                                proposed changes may take effect unless 
                                exigent circumstances are present in 
                                which case the regional center shall 
                                provide notice to the Secretary within 
                                5 business days of such change;
                                    ``(II) approve the changes referred 
                                to in subclause (I) after--
                                            ``(aa) notice of any such 
                                        proposed changes are made 
                                        publicly available through a 
                                        publicly accessible website of 
                                        U.S. Citizenship and 
                                        Immigration Services for not 
                                        fewer than 30 days; and
                                            ``(bb) the Secretary 
                                        determines that the regional 
                                        center would remain compliant 
                                        with this subparagraph and 
                                        subparagraph (H); and
                                    ``(III) notwithstanding the 
                                pendency of a request for approval of 
                                any amendment that has been filed 
                                pursuant to subclause (I), adjudicate 
                                business plans under subparagraph (F) 
                                and petitions under section 
                                204(a)(1)(H).
                    ``(F) Business plans for regional center 
                investments.--
                            ``(i) Application for approval of an 
                        investment in a commercial enterprise.--A 
                        regional center shall file an application with 
                        the Secretary of Homeland Security for each 
                        particular investment offering through an 
                        associated commercial enterprise before any 
                        alien files a petition for classification under 
                        this paragraph by reason of investment in that 
                        offering, which shall include--
                                    ``(I) a comprehensive business plan 
                                for a specific capital investment 
                                project;
                                    ``(II) a credible economic analysis 
                                regarding estimated job creation that 
                                is based upon economically and 
                                statistically valid methodologies;
                                    ``(III) any documents filed with 
                                the Securities and Exchange Commission 
                                under the Securities Act of 1933 (15 
                                U.S.C. 77a et seq.) or with the 
                                securities regulator of any State, as 
                                required by law;
                                    ``(IV) any investment and offering 
                                documents, including subscription, 
                                investment, partnership, and operating 
                                agreements, private placement 
                                memoranda, term sheets, biographies for 
                                management, officers, directors, and 
                                any person with similar 
                                responsibilities, the description of 
                                the business plan to be provided to 
                                potential alien investors, and 
                                marketing materials used or drafts 
                                prepared for use in connection with the 
                                offering, which shall contain 
                                references, as appropriate, to--
                                            ``(aa) any investment risks 
                                        associated with the new 
                                        commercial enterprise and the 
                                        job-creating entity;
                                            ``(bb) any conflicts of 
                                        interest that currently exist 
                                        or may arise among the regional 
                                        center, new commercial 
                                        enterprise, job-creating 
                                        entity, or the principals or 
                                        attorneys of the aforementioned 
                                        entities;
                                            ``(cc) any pending material 
                                        litigation or bankruptcy, or 
                                        adverse judgments or bankruptcy 
                                        orders issued during the most 
                                        recent 10-year period, in the 
                                        United States or abroad, 
                                        affecting the regional center, 
                                        new commercial enterprise, any 
                                        affiliated job-creating entity, 
                                        or any other enterprise in 
                                        which any principal of the 
                                        aforementioned entities held 
                                        majority ownership at the time; 
                                        and
                                            ``(dd)(AA) any fees, 
                                        ongoing interest, or other 
                                        compensation paid or to be paid 
                                        by regional center or new 
                                        commercial enterprise to 
                                        agents, finders, or broker 
                                        dealers involved in the 
                                        offering;
                                            ``(BB) a description of the 
                                        services performed, or which 
                                        will be performed, by such 
                                        person to entitle the person to 
                                        such fees, interest, or 
                                        compensation; and
                                            ``(CC) the name and contact 
                                        information of any such person;
                                    ``(V) a description of the policies 
                                and procedures, including those related 
                                to internal and external due diligence, 
                                reasonably designed to cause the 
                                regional center, new commercial 
                                enterprise, and any affiliated job-
                                creating entity, their agents, 
                                employees, advisors, and attorneys, and 
                                any persons in active concert or 
                                participation with the regional center, 
                                new commercial enterprise, or any 
                                affiliated job-creating entity comply, 
                                as applicable, with the securities laws 
                                of the United States and the laws of 
                                the applicable States in connection 
                                with the offer, purchase, or sale of 
                                its securities; and
                                    ``(VI) a certification from each of 
                                the regional centers and any issuer of 
                                securities under common control with 
                                the regional center that their 
                                respective employees and any parties 
                                associated with each of the regional 
                                centers and the issuer of securities 
                                under common control with any of the 
                                regional centers are in compliance with 
                                the securities laws of the United 
                                States and the laws of the applicable 
                                States in connection with the offer, 
                                purchase, or sale of its securities, to 
                                the best of the certifier's knowledge, 
                                after a due diligence investigation.
                            ``(ii) Effect of approval of a business 
                        plan for an investment in a regional center's 
                        commercial enterprise.--The approval of an 
                        application under this subparagraph shall be 
                        binding for purposes of the adjudication of 
                        subsequent petitions seeking classification 
                        under this paragraph by immigrants investing in 
                        the same capital investment project through a 
                        new commercial enterprise, and of petitions by 
                        the same immigrants filed under section 216A, 
                        except in the case of fraud, misrepresentation, 
                        criminal misuse, a threat to public safety or 
                        national security, a material change that 
                        affects the program eligibility of the approved 
                        economic model, other evidence affecting 
                        program eligibility that was not disclosed by 
                        the applicant during the adjudication process, 
                        or a material mistake of law or fact in the 
                        prior adjudication.
                            ``(iii) Site visits.--The Secretary shall--
                                    ``(I) perform site visits to 
                                regional centers; and
                                    ``(II) perform at least 1 site 
                                visit to each new commercial enterprise 
                                or affiliated job-creating entity, 
                                which--
                                            ``(aa) shall include a 
                                        review for evidence of direct 
                                        job creation in accordance with 
                                        subparagraph (E)(v)(I); and
                                            ``(bb) may occur at any 
                                        time during the period between 
                                        the filing of an application 
                                        for approval of an investment 
                                        in a commercial enterprise 
                                        under this subparagraph and the 
                                        adjudication of the first 
                                        petition for removal of 
                                        conditions on lawful permanent 
                                        resident status under section 
                                        216A(c) filed by an alien 
                                        investing in such investment if 
                                        the regional center, new 
                                        commercial enterprise, or 
                                        affiliated job-creating entity, 
                                        as applicable, is provided with 
                                        notice in accordance with 
                                        section 274A.
                    ``(G) Regional center annual statements.--
                            ``(i) In general.--Each regional center 
                        designated under subparagraph (E) shall 
                        annually submit a statement to the Director of 
                        U.S. Citizenship and Immigration Services 
                        (referred to in this subparagraph as the 
                        `Director'), in a manner prescribed by the 
                        Secretary of Homeland Security, which shall 
                        include--
                                    ``(I) a certification stating that, 
                                to the best of the certifier's 
                                knowledge, after a due diligence 
                                investigation, the regional center, the 
                                new commercial enterprise, and any 
                                affiliated job-creating entity is in 
                                compliance with clauses (i) and (ii) of 
                                subparagraph (H);
                                    ``(II) a certification described in 
                                subparagraph (I)(ii)(II);
                                    ``(III) a certification stating 
                                that, to the best of the certifier's 
                                knowledge, after a due diligence 
                                investigation, the regional center is 
                                in compliance with subparagraph 
                                (K)(iii);
                                    ``(IV) a description of any pending 
                                material litigation or bankruptcy 
                                proceedings, or litigation or 
                                bankruptcy proceedings resolved during 
                                the preceding fiscal year, involving 
                                the regional center, new commercial 
                                enterprise, or any affiliated job-
                                creating entity;
                                    ``(V) an accounting of all foreign 
                                investor capital invested in the 
                                regional center, new commercial 
                                enterprise, or affiliated job-creating 
                                entity;
                                    ``(VI) for each new commercial 
                                enterprise associated with the regional 
                                center--
                                            ``(aa) an accounting of the 
                                        aggregate capital invested in 
                                        the new commercial enterprise 
                                        and job-creating entity by 
                                        alien investors under this 
                                        paragraph for each capital 
                                        investment project being 
                                        undertaken by the new 
                                        commercial enterprise;
                                            ``(bb) a description of how 
                                        the capital described in item 
                                        (aa) is being used to execute 
                                        each capital investment project 
                                        in the filed business plan or 
                                        plans;
                                            ``(cc) evidence that 100 
                                        percent of the capital 
                                        described in item (aa) has been 
                                        committed to each capital 
                                        investment project;
                                            ``(dd) detailed evidence of 
                                        the progress made toward the 
                                        completion of each capital 
                                        investment project;
                                            ``(ee) an accounting of the 
                                        aggregate direct jobs created 
                                        or preserved;
                                            ``(ff) to the best of the 
                                        regional center's knowledge, 
                                        for all fees, including 
                                        administrative fees, loan 
                                        monitoring fees, loan 
                                        management fees, commissions 
                                        and similar transaction-based 
                                        compensation, collected from 
                                        alien investors by the regional 
                                        center, new commercial 
                                        enterprise, any affiliated job-
                                        creating entity or issuer of 
                                        securities under common control 
                                        with the regional center, or 
                                        any promoter, finder, broker-
                                        dealer or other entity engaged 
                                        by any of the foregoing to 
                                        locate individual investors--

                                                    ``(AA) a 
                                                description of all fees 
                                                collected;

                                                    ``(BB) an 
                                                accounting of the 
                                                entities that received 
                                                such fees; and

                                                    ``(CC) the purpose 
                                                for which such fees 
                                                were collected;

                                            ``(gg) any documentation 
                                        referred to in subparagraph 
                                        (F)(i)(IV) if there has been a 
                                        material change during the 
                                        preceding fiscal year; and
                                            ``(hh) a certification by 
                                        the regional center that such 
                                        statements are accurate, to the 
                                        best of the certifier's 
                                        knowledge, after a due 
                                        diligence investigation; and
                                    ``(VII) a description of the 
                                regional center's policies and 
                                procedures that are designed to enable 
                                the regional center to comply with 
                                applicable Federal labor laws.
                            ``(ii) Amendment of annual statements.--The 
                        Director--
                                    ``(I) shall require the regional 
                                center to amend or supplement an annual 
                                statement required under clause (i) if 
                                the Director determines that such 
                                statement is deficient; and
                                    ``(II) may require the regional 
                                center to amend or supplement such 
                                annual statement if the Director 
                                determines that such an amendment or 
                                supplement is appropriate.
                            ``(iii) Sanctions.--
                                    ``(I) Effect of violation.--The 
                                Director shall sanction any regional 
                                center in accordance with subclause 
                                (II) if the regional center fails to 
                                submit an annual statement or if the 
                                Director determines that the regional 
                                center--
                                            ``(aa) knowingly submitted 
                                        or caused to be submitted a 
                                        statement, certification, or 
                                        any information submitted under 
                                        this subparagraph, that 
                                        contained an untrue statement 
                                        of material fact; or
                                            ``(bb) is conducting itself 
                                        in a manner inconsistent with 
                                        its designation, including any 
                                        willful, undisclosed, and 
                                        material deviation by new 
                                        commercial enterprises from any 
                                        filed business plan for such 
                                        commercial enterprises.
                                    ``(II) Authorized sanctions.--The 
                                Director shall establish a graduated 
                                set of sanctions based on the severity 
                                of the violations referred to in 
                                subclause (I), including--
                                            ``(aa) fines equal to not 
                                        more than 10 percent of the 
                                        total capital invested by alien 
                                        investors in the regional 
                                        center's new commercial 
                                        enterprises or job-creating 
                                        entities, which--

                                                    ``(AA) may not be 
                                                paid from any of such 
                                                alien investor's 
                                                capital investments; 
                                                and

                                                    ``(BB) shall be 
                                                deposited into the EB-5 
                                                Integrity Fund 
                                                established under 
                                                subparagraph (J);

                                            ``(bb) temporary suspension 
                                        from participation in the 
                                        program described in 
                                        subparagraph (E), which may be 
                                        lifted by the Director if the 
                                        individual or entity cures the 
                                        alleged violation after being 
                                        provided such an opportunity by 
                                        the Director;
                                            ``(cc) permanent bar from 
                                        program participation for 1 or 
                                        more individuals associated 
                                        with the regional center or new 
                                        commercial enterprise or job-
                                        creating entity; and
                                            ``(dd) termination of 
                                        regional center designation.
                    ``(H) Bona fides of persons involved with regional 
                center program.--
                            ``(i) In general.--A person may not be 
                        permitted to be involved with any regional 
                        center, new commercial enterprise, or job-
                        creating entity if--
                                    ``(I) the person has been found to 
                                have committed--
                                            ``(aa) a criminal or civil 
                                        violation involving fraud or 
                                        deceit within the previous 10 
                                        years;
                                            ``(bb) a civil violation 
                                        involving fraud or deceit that 
                                        resulted in a liability in 
                                        excess of $1,000,000; or
                                            ``(cc) a crime for which 
                                        the person was convicted and 
                                        was sentenced to a term of 
                                        imprisonment of more than 1 
                                        year;
                                    ``(II) the person is subject to a 
                                final order, for the duration of any 
                                penalty imposed by such order, of a 
                                State securities commission (or an 
                                agency or officer of a State who 
                                performs similar functions), a State 
                                authority that supervises or examines 
                                banks, savings associations, or credit 
                                unions, a State insurance commission 
                                (or an agency of or officer of a State 
                                who performs similar functions), an 
                                appropriate Federal banking agency, the 
                                Commodity Futures Trading Commission, 
                                the Securities and Exchange Commission, 
                                a financial self-regulatory 
                                organization recognized by the 
                                Securities and Exchange Commission, or 
                                the National Credit Union 
                                Administration, which is based on a 
                                violation of any law or regulation 
                                that--
                                            ``(aa) prohibits 
                                        fraudulent, manipulative, or 
                                        deceptive conduct; or
                                            ``(bb) bars the person 
                                        from--

                                                    ``(AA) association 
                                                with an entity 
                                                regulated by such 
                                                commission, authority, 
                                                agency, or officer;

                                                    ``(BB) appearing 
                                                before such commission, 
                                                authority, agency, or 
                                                officer;

                                                    ``(CC) engaging in 
                                                the business of 
                                                securities, insurance, 
                                                or banking; or

                                                    ``(DD) engaging in 
                                                savings association or 
                                                credit union 
                                                activities;

                                    ``(III) the person is engaged in, 
                                has ever been engaged in, or seeks to 
                                engage in--
                                            ``(aa) any illicit 
                                        trafficking in any controlled 
                                        substance or in any listed 
                                        chemical (as defined in section 
                                        102 of the Controlled 
                                        Substances Act (21 U.S.C. 
                                        802));
                                            ``(bb) any activity 
                                        relating to espionage, 
                                        sabotage, or theft of 
                                        intellectual property;
                                            ``(cc) any activity related 
                                        to money laundering (as 
                                        described in section 1956 or 
                                        1957 of title 18, United States 
                                        Code);
                                            ``(dd) any terrorist 
                                        activity (as defined in section 
                                        212(a)(3)(B)(iii));
                                            ``(ee) any activity 
                                        constituting or facilitating 
                                        human trafficking or a human 
                                        rights offense;
                                            ``(ff) any activity 
                                        described in section 
                                        212(a)(3)(E); or
                                            ``(gg) the violation of any 
                                        statute, regulation, or 
                                        Executive order regarding 
                                        foreign financial transactions 
                                        or foreign asset control; or
                                    ``(IV) the person--
                                            ``(aa) is, or during the 
                                        preceding 10 years has been, 
                                        included on the Department of 
                                        Justice's List of Currently 
                                        Disciplined Practitioners; or
                                            ``(bb) during the preceding 
                                        10 years, has received a 
                                        reprimand or otherwise been 
                                        publicly disciplined for 
                                        conduct related to fraud or 
                                        deceit by a State bar 
                                        association of which the person 
                                        is or was a member.
                            ``(ii) Foreign involvement in regional 
                        center program.--
                                    ``(I) Lawful status required.--A 
                                person may not be involved with a 
                                regional center unless the person is a 
                                national of the United States or an 
                                individual who has been lawfully 
                                admitted for permanent residence (as 
                                such terms are defined in paragraphs 
                                (20) and (22) of section 101(a)).
                                    ``(II) Foreign governments.--A 
                                foreign government entity may not 
                                provide capital to, or be directly or 
                                indirectly involved with the ownership 
                                or administration of, a regional 
                                center.
                                    ``(III) Rulemaking.--Not later than 
                                180 days after the date of the 
                                enactment of this Act, the Secretary, 
                                in consultation with the Secretary of 
                                the Treasury and the Secretary of 
                                Commerce, shall issue regulations 
                                implementing subclauses (I) and (II).
                            ``(iii) Information required.--The 
                        Secretary of Homeland Security shall require 
                        such attestations and information, including 
                        the submission of fingerprints or other 
                        biometrics to the Federal Bureau of 
                        Investigation, and shall perform such criminal 
                        record checks and other background and database 
                        checks with respect to a regional center, new 
                        commercial enterprise, and any affiliated job-
                        creating entity, and persons involved with such 
                        entities (as described in clause (v)), to 
                        determine whether such entities are in 
                        compliance with clauses (i) and (ii). The 
                        Secretary may require the information and 
                        attestations described in this clause from the 
                        entities described in this clause and any 
                        person involved with such entities, at any time 
                        on or after the date of the enactment of the 
                        EB-5 Integrity Act of 2016.
                            ``(iv) Termination.--
                                    ``(I) In general.--The Secretary 
                                shall suspend or terminate the 
                                designation of any regional center, or 
                                the participation under the program of 
                                any new commercial enterprise or job-
                                creating entity under this paragraph if 
                                the Secretary determines that such 
                                entity--
                                            ``(aa) knowingly involved a 
                                        person with such entity in 
                                        violation of clause (i) or 
                                        (ii);
                                            ``(bb) failed to provide an 
                                        attestation or information 
                                        requested by the Secretary; or
                                            ``(cc) knowingly provided 
                                        any false attestation or 
                                        information under clause (iii).
                                    ``(II) Information.--The Secretary, 
                                after the performance of the criminal 
                                record and other background checks 
                                described in clause (iii), shall notify 
                                a regional center, new commercial 
                                enterprise, or job-creating entity 
                                whether any person involved with such 
                                entities is not in compliance with 
                                clause (i) or (ii). If the regional 
                                center, new commercial enterprise, or 
                                job-creating entity, as the case may 
                                be, fails to discontinue the prohibited 
                                person's involvement with such entity 
                                within 30 days after receiving a 
                                notification under this subclause, the 
                                regional center, new commercial 
                                enterprise, or job-creating entity 
                                shall be deemed to have knowledge under 
                                subclause (I)(aa) that such person is 
                                in violation of clause (i) or (ii).
                            ``(v) Persons involved with a regional 
                        center, new commercial enterprise, or job-
                        creating entity.--In this paragraph, a person 
                        is involved with a regional center, a new 
                        commercial enterprise, any affiliated job-
                        creating entity, or other job-creating entity, 
                        as applicable, if the person is in a position 
                        of substantive authority to make operational or 
                        managerial decisions over any pooling, 
                        securitization, investment, release, 
                        acceptance, or control of any funding that was 
                        procured under the EB-5 Regional Center 
                        Program. A person may be in a position of 
                        substantive authority if the person serves as 
                        the principal, representative, administrator, 
                        owner, officer, board member, manager, 
                        executive, or general partner of the regional 
                        center, new commercial enterprise, any 
                        affiliated job-creating entity, or other job-
                        creating entity, respectively.
                    ``(I) Compliance with securities laws.--
                            ``(i) Jurisdiction.--
                                    ``(I) In general.--The United 
                                States has jurisdiction, including 
                                subject matter jurisdiction, over the 
                                purchase or sale of any security 
                                offered or sold by any regional center 
                                or any party associated with a regional 
                                center for purposes of the securities 
                                laws.
                                    ``(II) Compliance with regulation 
                                s.--For purposes of section 5 of the 
                                Securities Act of 1933 (15 U.S.C. 77e), 
                                a regional center or any party 
                                associated with a regional center is 
                                not precluded from offering or selling 
                                a security pursuant to Regulation S (17 
                                C.F.R. 230.901 et seq.) to the extent 
                                that such offering or selling otherwise 
                                complies with such regulation. 
                                Subparagraph (I) is not intended to 
                                modify any existing regulations or 
                                interpretations of the Securities and 
                                Exchange Commission related to the 
                                application of section 15(a) of the 
                                Securities Exchange Act of 1934 (15 
                                U.S.C. 78o(a)) to foreign broker 
                                dealers.
                            ``(ii) Regional center certifications 
                        required.--
                                    ``(I) Initial certification.--The 
                                Secretary of Homeland Security may not 
                                approve an application for regional 
                                center designation or regional center 
                                amendment unless the regional center 
                                certifies that, to the best of the 
                                certifier's knowledge, after a due 
                                diligence investigation, the regional 
                                center is in compliance with and has 
                                policies and procedures, including 
                                those related to internal and external 
                                due diligence, reasonably designed to 
                                confirm, as applicable, that all 
                                parties associated with the regional 
                                center are and will remain in 
                                compliance with the securities laws of 
                                the United States and of any State in 
                                which--
                                            ``(aa) the offer, purchase, 
                                        or sale of securities was 
                                        conducted;
                                            ``(bb) the issuer of 
                                        securities was located; or
                                            ``(cc) the investment 
                                        advice was provided by the 
                                        regional center or parties 
                                        associated with the regional 
                                        center.
                                    ``(II) Reissue.--A regional center 
                                shall annually reissue a certification 
                                described in subclause (I), in 
                                accordance with subparagraph (G), to 
                                certify compliance with clause (iii) by 
                                stating that--
                                            ``(aa) the certifier is in 
                                        a position to have knowledge of 
                                        the offers, purchases, and 
                                        sales of securities or the 
                                        provision of investment advice 
                                        by parties associated with the 
                                        regional center;
                                            ``(bb) to the best of the 
                                        certifier's knowledge, after a 
                                        due diligence investigation, 
                                        all such offers, purchases, and 
                                        sales of securities or the 
                                        provision of investment advice 
                                        complied with the securities 
                                        laws of the United States and 
                                        the securities laws of any 
                                        State in which the offer, 
                                        purchase, or sale of securities 
                                        was conducted, the issuer of 
                                        securities was located, or the 
                                        investment advice was provided; 
                                        and
                                            ``(cc) records, data, and 
                                        information related to such 
                                        offers, purchases, and sales 
                                        have been maintained.
                                    ``(III) Effect of noncompliance.--
                                If a regional center, through its due 
                                diligence, discovered during the 
                                previous fiscal year that the regional 
                                center or any party associated with the 
                                regional center was not in compliance 
                                with the securities laws of the United 
                                States or the securities laws of any 
                                State in which the securities 
                                activities were conducted by any party 
                                associated with the regional center, 
                                the certifier shall--
                                            ``(aa) describe the 
                                        activities that led to 
                                        noncompliance;
                                            ``(bb) describe the actions 
                                        taken to remedy the 
                                        noncompliance; and
                                            ``(cc) certify that the 
                                        regional center and all parties 
                                        associated with the regional 
                                        center are currently in 
                                        compliance, to the best of the 
                                        certifier's knowledge, after a 
                                        due diligence investigation.
                            ``(iii) Oversight required.--Each regional 
                        center shall--
                                    ``(I) monitor and supervise all 
                                offers, purchases, and sales of, and 
                                investment advice relating to 
                                securities made by parties associated 
                                with the regional center to confirm 
                                compliance with the securities laws of 
                                the United States;
                                    ``(II) maintain records, data, and 
                                information relating to all such 
                                offers, purchases, sales, and 
                                investment advice during the 5-year 
                                period beginning on the date of their 
                                creation; and
                                    ``(III) make the records, data, and 
                                information described in subclause (II) 
                                available to the Secretary upon 
                                request.
                            ``(iv) Suspension or termination.--In 
                        addition to any other authority provided to the 
                        Secretary under this paragraph, the Secretary 
                        may suspend or terminate the designation of any 
                        regional center or impose other sanctions 
                        against the regional center if the regional 
                        center, or any parties associated with the 
                        regional center that the regional center knew 
                        or reasonably should have known--
                                    ``(I) are permanently or 
                                temporarily enjoined by order, 
                                judgment, or decree of any court of 
                                competent jurisdiction in connection 
                                with the offer, purchase, or sale of a 
                                security or the provision of investment 
                                advice;
                                    ``(II) are subject to any final 
                                order of the Securities and Exchange 
                                Commission or a State securities 
                                regulator that--
                                            ``(aa) bars such person 
                                        from association with an entity 
                                        regulated by the Securities and 
                                        Exchange Commission or a State 
                                        securities regulator; or
                                            ``(bb) constitutes a final 
                                        order based on a finding of an 
                                        intentional violation or a 
                                        violation related to fraud or 
                                        deceit in connection with the 
                                        offer, purchase, or sale of, or 
                                        investment advice relating to, 
                                        a security; or
                                    ``(III) submitted or caused to be 
                                submitted a certification described in 
                                clause (ii) that contained an untrue 
                                statement of a material fact or omitted 
                                to state a material fact necessary in 
                                order to make the statements made, in 
                                light of the circumstances under which 
                                they were made, not misleading.
                            ``(v) Defined term.--In this subparagraph, 
                        the term `parties associated with a regional 
                        center' means--
                                    ``(I) the regional center;
                                    ``(II) any new commercial 
                                enterprise or affiliated job-creating 
                                entity or issuer of securities under 
                                common control with the regional 
                                center; and
                                    ``(III) the regional center's and 
                                new commercial enterprise's principal 
                                owners, officers, directors, managers 
                                and any person vested with the power to 
                                legally bind the regional center or new 
                                commercial enterprise.
                            ``(vi) Savings provision.--Nothing in this 
                        subparagraph may be construed to impair or 
                        limit the authority of the Securities and 
                        Exchange Commission under the Federal 
                        securities laws or any State securities 
                        regulator under State securities laws.
                    ``(J) EB-5 integrity fund.--
                            ``(i) Establishment.--There is established 
                        in the United States Treasury a special fund, 
                        which shall be known as the EB-5 Integrity Fund 
                        (referred to in this subparagraph as the 
                        `Fund'). Amounts deposited into the Fund shall 
                        be available to the Secretary of Homeland 
                        Security until expended for the purposes set 
                        forth in clause (iii).
                            ``(ii) Fees.--
                                    ``(I) Annual fee.--On April 1, 
                                2016, and on January 1 of each year 
                                thereafter, the Secretary of Homeland 
                                Security shall--
                                            ``(aa) except as provided 
                                        in item (bb), collect a fee of 
                                        $20,000 from each regional 
                                        center designated under 
                                        subparagraph (E);
                                            ``(bb) collect a fee of 
                                        $10,000 from each regional 
                                        center designated under 
                                        subparagraph (E) that has 20 or 
                                        fewer total investors in the 
                                        preceding fiscal year in its 
                                        new commercial enterprises; and
                                            ``(cc) deposit the fees 
                                        collected pursuant to items 
                                        (aa) and (bb) into the Fund.
                                    ``(II) Petition fee.--Beginning on 
                                April 1, 2016, the Secretary shall 
                                collect a fee of $1,000 with each 
                                petition filed under section 
                                204(a)(1)(H) for classification under 
                                subparagraph (E) and deposit each fee 
                                collected under this subclause into the 
                                Fund.
                                    ``(III) Increases.--The Secretary 
                                may prescribe such regulations as may 
                                be necessary to increase the dollar 
                                amounts under this clause to ensure 
                                that the Fund is sufficient to carry 
                                out the purposes set forth in clause 
                                (iii).
                            ``(iii) Permissible uses of fund.--The 
                        Secretary shall--
                                    ``(I) use not less than \1/3\ of 
                                the amounts deposited into the Fund to 
                                conduct audits and site visits (with or 
                                without notice);
                                    ``(II) use not less than \1/3\ of 
                                the amounts deposited into the Fund for 
                                investigations based outside of the 
                                United States, including--
                                            ``(aa) monitoring and 
                                        investigating program-related 
                                        events and promotional 
                                        activities; and
                                            ``(bb) ensuring the 
                                        compliance of alien investors 
                                        with subparagraph (L);
                                    ``(III) use amounts deposited into 
                                the Fund--
                                            ``(aa) to detect and 
                                        investigate fraud or other 
                                        crimes; and
                                            ``(bb) to determine whether 
                                        regional centers, new 
                                        commercial enterprises, any 
                                        affiliated job-creating 
                                        entities, and alien investors 
                                        (and their alien spouses and 
                                        alien children) comply with the 
                                        immigration laws;
                                    ``(IV) use amounts deposited into 
                                the Fund to conduct interviews of the 
                                owners, officers, directors, managers, 
                                partners, agents, employees, promoters, 
                                and attorneys of regional centers, new 
                                commercial enterprises, and job-
                                creating entities; and
                                    ``(V) use amounts deposited into 
                                the Fund as the Secretary determines to 
                                be necessary, including to monitor 
                                compliance with the requirements under 
                                section 3 of the EB-5 Integrity Act of 
                                2016.
                            ``(iv) Failure to pay fee.--The Secretary 
                        shall--
                                    ``(I) impose a reasonable penalty, 
                                which shall be deposited into the Fund, 
                                if a regional center does not pay the 
                                fee required under clause (ii) within 
                                30 days after the date on which such 
                                fee is due; and
                                    ``(II) terminate the designation of 
                                any regional center that does not pay 
                                the fee required under clause (ii) 
                                within 90 days after the date on which 
                                such fee is due.
                            ``(v) Report.--The Secretary shall submit 
                        an annual report to the Committee on the 
                        Judiciary of the Senate and the Committee on 
                        the Judiciary of the House of Representatives 
                        that describes how amounts in the Fund were 
                        expended during the previous fiscal year.
                    ``(K) Direct and third-party promoters.--
                            ``(i) Rules and standards.--Direct and 
                        third-party promoters of a regional center, any 
                        new commercial enterprise, an affiliated job-
                        creating entity, or issuer of securities under 
                        common control with the regional center shall 
                        comply with the rules and standards prescribed 
                        by the Secretary of Homeland Security and any 
                        applicable Federal or State securities laws, to 
                        oversee regional center promotion, including--
                                    ``(I) registration with U.S. 
                                Citizenship and Immigration Services, 
                                which--
                                            ``(aa) may be limited to 
                                        identifying and contact 
                                        information of such promoter 
                                        and confirmation of the 
                                        existence of the written 
                                        agreement required under clause 
                                        (iii);
                                            ``(bb) may not include any 
                                        requirement that U.S. 
                                        Citizenship and Immigration 
                                        Services approve the 
                                        registration of such promoter; 
                                        and
                                            ``(cc) may permit the list 
                                        of such registered promoters to 
                                        be made publicly available;
                                    ``(II) certification by each 
                                promoter that such promoter is not 
                                ineligible under subparagraph (H)(i);
                                    ``(III) guidelines for representing 
                                the visa process to foreign investors; 
                                and
                                    ``(IV) permissible fee 
                                arrangements, if applicable.
                            ``(ii) Effect of violation.--If the 
                        Secretary determines that a direct or third-
                        party promoter has violated clause (i), the 
                        Secretary shall suspend or permanently bar such 
                        individual from participation in the program 
                        described in subparagraph (E).
                            ``(iii) Compliance.--Each regional center 
                        shall maintain a written agreement between the 
                        regional center, the new commercial enterprise, 
                        any affiliated job-creating entity, or any 
                        issuer of securities under common control with 
                        the regional center, and each direct or third-
                        party promoter operating on behalf of such 
                        entities or issuer that outlines the rules and 
                        standards prescribed under clause (i).
                            ``(iv) Disclosure.--Each petition filed 
                        under section 204(a)(1)(H) shall include a 
                        disclosure, signed by the investor, that 
                        reflects all fees, ongoing interest, and other 
                        compensation paid to any person that the 
                        regional center or new commercial enterprise 
                        knows has received, or will receive, in 
                        connection with the investment, including 
                        compensation to agents, finders, or broker 
                        dealers involved in the offering, to the extent 
                        not already specifically identified in the 
                        business plan filed under subparagraph (F).
                    ``(L) Source of funds.--
                            ``(i) In general.--An alien investor shall 
                        demonstrate that the capital required under 
                        subparagraph (A) and any amounts used to pay 
                        administrative costs and fees associated with 
                        the alien's investment were obtained from a 
                        lawful source and through lawful means.
                            ``(ii) Required information.--The Secretary 
                        of Homeland Security shall require that an 
                        alien investor's petition under this paragraph 
                        contain, as applicable--
                                    ``(I) business and tax records, 
                                including--
                                            ``(aa) foreign business 
                                        registration records, if 
                                        applicable;
                                            ``(bb) corporate or 
                                        partnership tax returns (or tax 
                                        returns of any other entity in 
                                        any form filed in any country 
                                        or subdivision of such 
                                        country), and personal tax 
                                        returns including income, 
                                        franchise, property (whether 
                                        real, personal, or intangible), 
                                        or any other tax returns of any 
                                        kind, filed during the past 7 
                                        years, or another period to be 
                                        determined by the Secretary to 
                                        ensure that the investment is 
                                        obtained from a lawful source 
                                        of funds, with any taxing 
                                        jurisdiction in or outside the 
                                        United States by or on behalf 
                                        of the alien investor, if 
                                        applicable; and
                                            ``(cc) evidence identifying 
                                        any other source of capital or 
                                        administrative fees;
                                    ``(II) evidence related to monetary 
                                judgments against the alien investor, 
                                including certified copies of any 
                                judgments, and evidence of all pending 
                                governmental civil or criminal actions, 
                                governmental administrative 
                                proceedings, and any private civil 
                                actions involving possible monetary 
                                judgments against the alien investor 
                                from any court in or outside the United 
                                States; and
                                    ``(III) the identity of all persons 
                                who transfer into the United States, on 
                                behalf of the investor--
                                            ``(aa) any funds that are 
                                        used to meet the capital 
                                        requirement under subparagraph 
                                        (A); and
                                            ``(bb) any funds that are 
                                        used to pay administrative 
                                        costs and fees associated with 
                                        the alien's investment.
                            ``(iii) Gift restrictions.--Gifted funds 
                        may be counted toward the minimum capital 
                        investment requirement under subparagraph (C) 
                        only if such funds were gifted to the alien 
                        investor in good faith and not to circumvent 
                        any limitations imposed on permissible sources 
                        of capital under this subparagraph. If a 
                        significant portion of the capital invested 
                        under subparagraph (A) was gifted to the alien 
                        investor, the Secretary shall require the alien 
                        investor's petition under this paragraph to 
                        include records described in subclauses (I) and 
                        (II) of clause (ii) from the donor.
                    ``(M) Treatment of investors if a regional center 
                has been terminated.--
                            ``(i) In general.--Upon the termination or 
                        debarment, as applicable, from the program 
                        under this paragraph of a regional center, new 
                        commercial enterprise, or job-creating entity 
                        under this paragraph--
                                    ``(I) except as provided in 
                                subclause (II), an otherwise qualified 
                                approved petition under section 
                                204(a)(1)(H) or the conditional 
                                permanent residence of an alien who has 
                                been admitted to the United States 
                                pursuant to section 216A(a)(1) based on 
                                an investment in a terminated regional 
                                center, new commercial enterprise, or 
                                job-creating entity shall remain valid 
                                or continue to be authorized, as 
                                applicable, consistent with this 
                                subparagraph; and
                                    ``(II) if the Secretary has reason 
                                to believe the alien was a knowing 
                                participant in the conduct that led to 
                                the termination of such regional 
                                center, new commercial enterprise, or 
                                job-creating entity, the Secretary 
                                shall notify the alien of such belief 
                                and, subject to section 216A(b)(2), 
                                shall terminate the permanent resident 
                                status of the alien (and the alien's 
                                spouse and child) as of the date of 
                                such determination.
                            ``(ii) New regional center or investment.--
                        The petition under section 204(a)(1)(H) of an 
                        alien described in clause (i)(I) shall be 
                        denied or revoked or the conditional permanent 
                        resident status of an alien described in clause 
                        (i)(I) shall be terminated 180 days after the 
                        termination from the program under this 
                        paragraph of a regional center, a new 
                        commercial enterprise, or a job creating entity 
                        unless--
                                    ``(I) in the case of the 
                                termination of a regional center--
                                            ``(aa) the new commercial 
                                        enterprise associates with an 
                                        approved regional center, 
                                        regardless of the geography of 
                                        its designation;
                                            ``(bb) the alien makes a 
                                        qualifying investment in 
                                        another commercial enterprise 
                                        associated with an approved 
                                        regional center; or
                                            ``(cc) the alien makes a 
                                        qualifying investment in 
                                        another commercial enterprise 
                                        under this paragraph not 
                                        associated with a regional 
                                        center; or
                                    ``(II) in the case of the debarment 
                                of a new commercial enterprise or job-
                                creating entity, the alien invests in 
                                another commercial enterprise 
                                associated with an approved regional 
                                center.
                            ``(iii) Removal of conditions.--Aliens 
                        described in subclauses (I)(bb), (I)(cc), and 
                        (II) of clause (ii) shall be eligible to have 
                        their conditions removed pursuant to section 
                        216A beginning on the date that is 2 years 
                        after the date of the subsequent investment.
                    ``(N) Threats to the national interest.--
                            ``(i) Denial or revocation.--The Secretary 
                        of Homeland Security shall deny or revoke the 
                        approval of a petition, application, or benefit 
                        described in this paragraph, including the 
                        documents described in clause (ii), if the 
                        Secretary determines that the approval of such 
                        petition, application, or benefit is contrary 
                        to the national interest of the United States 
                        for reasons relating to threats to public 
                        safety or national security.
                            ``(ii) Documents.--The documents described 
                        in this clause are--
                                    ``(I) a certification, designation, 
                                or amendment to the designation of a 
                                regional center;
                                    ``(II) a petition seeking 
                                classification of an alien as an alien 
                                investor under this paragraph;
                                    ``(III) a petition to remove 
                                conditions under section 216A; and
                                    ``(IV) an application for approval 
                                of a business plan in a commercial 
                                enterprise under subparagraph (F).
                            ``(iii) Debarment.--If a regional center, 
                        new commercial enterprise, or job-creating 
                        entity has its designation or participation in 
                        the program under this paragraph terminated for 
                        reasons relating to public safety or national 
                        security, any person associated with such 
                        regional center, new commercial enterprise, or 
                        job-creating entity, including an alien 
                        investor, shall be permanently barred from 
                        future participation in the program under this 
                        paragraph if the Secretary of Homeland 
                        Security, in the Secretary's discretion, 
                        determines, by a preponderance of the evidence, 
                        that such person was a knowing participant in 
                        the conduct that led to the termination.
                            ``(iv) Notice.--If the Secretary of 
                        Homeland Security determines that the approval 
                        of a petition, application, or benefit 
                        described in this paragraph should be denied or 
                        revoked pursuant to clause (i), the Secretary 
                        shall--
                                    ``(I) notify the relevant 
                                individual, regional center, or 
                                commercial entity of such 
                                determination; and
                                    ``(II) deny or revoke such 
                                petition, application, or benefit or 
                                terminate the permanent resident status 
                                of the alien (and the alien spouse and 
                                alien children of such immigrant) as of 
                                the date of such determination.
                            ``(v) Judicial review.--Notwithstanding any 
                        other provision of law (statutory or 
                        nonstatutory), including section 2241 of title 
                        28, United States Code, any other habeas corpus 
                        provision, and sections 1361 and 1651 of such 
                        title, no court shall have jurisdiction to 
                        review a denial or revocation under this 
                        subparagraph. Nothing in this clause may be 
                        construed as precluding review of 
                        constitutional claims or questions of law 
                        raised upon a petition for review filed with an 
                        appropriate court of appeals under section 242.
                    ``(O) Fraud, misrepresentation, and criminal 
                misuse.--
                            ``(i) Denial or revocation.--The Secretary 
                        of Homeland Security shall deny or revoke the 
                        approval of a petition, application, or benefit 
                        described in this paragraph, including the 
                        documents described in subparagraph (N)(ii), if 
                        the Secretary determines that such petition, 
                        application, or benefit was predicated on or 
                        involved fraud, deceit, intentional material 
                        misrepresentation, or criminal misuse.
                            ``(ii) Debarment.--If a regional center, 
                        new commercial enterprise, or job-creating 
                        entity has its designation or participation in 
                        the program under this paragraph terminated for 
                        reasons relating to fraud, intentional material 
                        misrepresentation, or criminal misuse, any 
                        person associated with such regional center, 
                        new commercial enterprise, or job-creating 
                        entity, including an alien investor, shall be 
                        permanently barred from future participation in 
                        the program under this paragraph if the 
                        Secretary determines, by a preponderance of the 
                        evidence, that such person was a knowing 
                        participant in the conduct that led to the 
                        termination.
                            ``(iii) Notice.--If the Secretary 
                        determines that the approval of a petition, 
                        application, or benefit described in this 
                        paragraph should be denied or revoked pursuant 
                        to clause (i), the Secretary shall--
                                    ``(I) notify the relevant 
                                individual, regional center, or 
                                commercial entity of such 
                                determination; and
                                    ``(II) deny or revoke such 
                                petition, application, or benefit or 
                                terminate the permanent resident status 
                                of the alien (and the alien spouse and 
                                alien children of such immigrant) as of 
                                the date of such determination.
                    ``(P) Administrative appellate review.--
                            ``(i) In general.--The Director of U.S. 
                        Citizenship and Immigration Services shall 
                        provide an opportunity for an administrative 
                        appellate review by the Administrative Appeals 
                        Office of U.S. Citizenship and Immigration 
                        Services of any determination made under this 
                        paragraph, including--
                                    ``(I) an application for regional 
                                center designation or regional center 
                                amendment;
                                    ``(II) an application for approval 
                                of a business plan under subparagraph 
                                (F);
                                    ``(III) a petition by an alien 
                                investor for status as an immigrant 
                                under this paragraph;
                                    ``(IV) the termination or 
                                suspension of any benefit accorded 
                                under this paragraph; and
                                    ``(V) any sanction imposed by the 
                                Secretary of Homeland Security under 
                                this paragraph.
                            ``(ii) Judicial review.--Subject to section 
                        242(a)(2), and notwithstanding any other 
                        provision of law (statutory or nonstatutory), 
                        including section 2241 of title 28, United 
                        States Code, any other habeas corpus provision, 
                        and sections 1361 and 1651 of such title, no 
                        court shall have jurisdiction to review a 
                        determination under this paragraph until the 
                        regional center, its associated entities, or 
                        the alien investor has exhausted all 
                        administrative appeals.''.
    (b) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        section, this section, and the amendments made by this section, 
        shall take effect on the date that is 90 days after the date of 
        the enactment of this Act.
            (2) Exceptions.--Clause (iv) of subparagraph (E) and 
        subparagraph (L) of section 203(b)(5) of the Immigration and 
        Nationality Act (8 U.S.C. 1153(b)(5)) shall not apply to a 
        petition that--
                    (A) was filed by an alien investor under such 
                section 203(b)(5) before the date of the enactment of 
                this Act; or
                    (B) is filed under section 216A of such Act (8 
                U.S.C. 1186b) if the underlying petition filed under 
                section 203(b)(5) of such Act was filed before the date 
                of the enactment of this Act.
    (c) GAO Report.--Not later than December 31, 2018, the Comptroller 
General of the United States shall submit a report to the Committee on 
the Judiciary of the Senate and the Committee on the Judiciary of the 
House of Representatives that describes--
            (1) the economic benefits of the regional center program 
        established under section 203(b)(5) of the Immigration and 
        Nationality Act (8 U.S.C. 1153(b)(5)), including the steps 
        taken by U.S. Citizenship and Immigration Services to verify 
        job creation;
            (2) the extent to which U.S. Citizenship and Immigration 
        Services ensures compliance by regional center participants 
        with their obligations under the immigrant investor program;
            (3) the extent to which U.S. Citizenship and Immigration 
        Services has maintained records of regional centers and 
        associated commercial enterprises, including annual statements 
        and certifications;
            (4) the steps taken by U.S. Citizenship and Immigration 
        Services to verify the source of funds, as required under 
        section 203(b)(5)(L) of the Immigration and Nationality Act, as 
        added by subsection (a);
            (5) the extent to which U.S. Citizenship and Immigration 
        Services collaborates with other Federal and law enforcement 
        agencies, particularly to detect illegal activity and threats 
        to national security related to the regional center program;
            (6) the extent to which U.S. Citizenship and Immigration 
        Services has prevented fraud and abuse in regional center 
        activities, including the designation of targeted employment 
        areas in areas that otherwise have high employment;
            (7) the extent to which U.S. Citizenship and Immigration 
        Services has used its authority to sanction, suspend, bar, or 
        terminate regional centers or individuals affiliated with 
        regional centers;
            (8) the steps taken to oversee direct and third-party 
        promoters under section 203(b)(5)(K) of the Immigration and 
        Nationality Act, as added by subsection (a);
            (9) the extent to which employees of the Department of 
        Homeland Security have complied with the ethical standards and 
        transparency requirements set forth in section 3; and
            (10) the amounts expended from the EB-5 Integrity Fund 
        established under section 203(b)(5)(J) of the Immigration and 
        Nationality Act, as added by subsection (a).
    (d) Inspector General Report.--Not later than December 31, 2018, 
the Inspector General of the Intelligence Community, in coordination 
with the Inspector General of the Department of Homeland Security and 
after consultation with relevant Federal agencies, including U.S. 
Immigration and Customs Enforcement, shall submit a report to the 
Committee on the Judiciary of the Senate and the Committee on the 
Judiciary of the House of Representatives regarding the immigrant visa 
program set forth in section 203(b)(5) of the Immigration and 
Nationality Act (8 U.S.C. 1153(b)(5)) that describes--
            (1) the vulnerabilities within the program that may 
        undermine the national security of the United States;
            (2) the actual or potential use of the program to 
        facilitate export of sensitive technology;
            (3) the actual or potential use of the program to 
        facilitate economic espionage;
            (4) the actual or potential use of the program by foreign 
        government agents; and
            (5) the actual or potential use of the program to 
        facilitate terrorist activity, including funding terrorist 
        activity or laundering terrorist funds.
    (e) Review of Job Creation Methodologies.--Not later than 1 year 
after the date of the enactment of this Act, the Secretary of Homeland 
Security, in consultation with the Bureau of Economic Analysis of the 
Department of Commerce, or another component within the Department of 
Commerce, as determined by the Secretary of Commerce, shall issue 
regulations to determine economically and statistically valid general 
economic methodologies that comply with section 203(b)(5)(A)(ii) of the 
Immigration and Nationality Act (8 U.S.C. 1153(b)(5)(A)(ii)).
    (f) Technical Amendment.--Section 203(b)(5)(C)(iii) of the 
Immigration and Nationality Act (8 U.S.C. 1153(b)(5)(C)(iii)) is 
amended by striking ``Attorney General'' and inserting ``Secretary of 
Homeland Security''.
    (g) Definitions.--
            (1) In general.--Section 203(b)(5)(D) of the Immigration 
        and Nationality Act (8 U.S.C. 1153(b)(5)(D)) is amended to read 
        as follows:
                    ``(D) Definitions.--In this paragraph:
                            ``(i) Affiliated job-creating entity.--The 
                        term `affiliated job-creating entity' means any 
                        job-creating entity that is controlled, 
                        managed, or owned by any of the persons 
                        involved with the regional center or new 
                        commercial enterprise under subparagraph 
                        (H)(v).
                            ``(ii) Capital.--The term `capital'--
                                    ``(I) means cash (including the 
                                cash proceeds of indebtedness) and all 
                                real, personal, or mixed tangible 
                                assets owned and controlled by the 
                                alien investor, or held in trust for 
                                the benefit of the alien and to which 
                                the alien has unrestricted access;
                                    ``(II) shall be valued at fair 
                                market value in United States dollars, 
                                in accordance with Generally Accepted 
                                Accounting Principles or other standard 
                                accounting practice adopted by the 
                                Securities and Exchange Commission, at 
                                the time such capital is invested under 
                                this paragraph; and
                                    ``(III) shall not include assets 
                                acquired, directly or indirectly, by 
                                unlawful means, including any cash 
                                proceeds of indebtedness secured by 
                                such assets.
                            ``(iii) Certifier.--The term `certifier' 
                        means a person in a position of substantive 
                        authority for the management or operations of a 
                        regional center, new commercial enterprise, 
                        affiliated job-creating entity, or issuer of 
                        securities under common control with any of 
                        such entities, such as a principal executive 
                        officer or principal financial officer, with 
                        knowledge of such entities' policies and 
                        procedures related to compliance with the 
                        requirements under this paragraph.
                            ``(iv) Full-time employment.--The term 
                        `full-time employment' means employment in a 
                        position that requires at least 35 hours of 
                        service per week at any time, regardless of who 
                        fills the position.
                            ``(v) Job-creating entity.--The term `job-
                        creating entity' means any organization that--
                                    ``(I) is formed in the United 
                                States for the ongoing conduct of 
                                lawful business, including a 
                                partnership (whether limited or 
                                general), corporation, limited 
                                liability company, or other entity that 
                                receives, or is established to receive, 
                                capital investment from alien investors 
                                or a new commercial enterprise under 
                                the regional center program described 
                                in subparagraph (E); and
                                    ``(II) is responsible for creating 
                                jobs to satisfy the requirement under 
                                subparagraph (A)(ii).
                            ``(vi) New commercial enterprise.--The term 
                        `new commercial enterprise' means any for-
                        profit organization formed in the United States 
                        for the ongoing conduct of lawful business, 
                        including a partnership (whether limited or 
                        general), corporation, limited liability 
                        company, or other entity that receives, or is 
                        established to receive, capital investment from 
                        investors under this paragraph.''.
            (2) Effective dates.--The amendments made by this 
        subsection shall take effect on the date of the enactment of 
        this Act.

SEC. 3. TRANSPARENCY.

    (a) In General.--Employees of the Department of Homeland Security, 
including the Secretary of Homeland Security, the Secretary's 
counselors, the Assistant Secretary for the Private Sector, the 
Director of U.S. Citizenship and Immigration Services, counselors to 
such Director, and the Chief of Immigrant Investor Programs at U.S. 
Citizenship and Immigration Services, shall act impartially and may not 
give preferential treatment to any entity, organization, or individual 
in connection with any aspect of the immigrant visa program described 
in section 203(b)(5) of the Immigration and Nationality Act (8 U.S.C. 
1153(b)(5)).
    (b) Improper Activities.--Activities that constitute preferential 
treatment under subsection (a) shall include--
            (1) working on, or in any way attempting to influence, in a 
        manner not available to or accorded to all other petitioners, 
        applicants, and seekers of benefits under the immigrant visa 
        program described in section 203(b)(5) of the Immigration and 
        Nationality Act (8 U.S.C. 1153(b)(5)), the standard processing 
        of an application, petition, or benefit for--
                    (A) a regional center;
                    (B) a new commercial enterprise;
                    (C) a job-creating entity; or
                    (D) any person or entity associated with such 
                regional center, new commercial enterprise, or job-
                creating entity; and
            (2) meeting or communicating with persons associated with 
        the entities described in paragraph (1), at the request of such 
        persons, in a manner not available to or accorded to all other 
        petitioners, applicants, and seekers of benefits under such 
        immigrant visa program.
    (c) Reporting of Communications.--
            (1) Written communication.--Employees of the Department of 
        Homeland Security, including the officials listed in subsection 
        (a), shall include, in the record of proceeding for a case 
        under section 203(b)(5) of the Immigration and Nationality Act 
        (8 U.S.C. 1153(b)(5)), actual or electronic copies of all case-
        specific written communication, including e-mails from 
        government and private accounts, with non-Department persons or 
        entities advocating for regional center applications or 
        individual petitions under such section that are pending on or 
        after the date of the enactment of this Act (other than routine 
        communications with other agencies of the Federal Government 
        regarding the case, including communications involving 
        background checks and litigation defense).
            (2) Oral communication.--If substantive oral communication, 
        including telephonic communication, virtual communication, and 
        in-person meetings, takes place between officials of the 
        Department of Homeland Security and non-Department persons or 
        entities advocating for regional center applications or 
        individual petitions under section 203(b)(5) of the Immigration 
        and Nationality Act (8 U.S.C. 1153(b)(5)) that are pending on 
        or after the date of the enactment of this Act (other than 
        routine communications with other agencies of the Federal 
        Government regarding the case, including communications 
        involving background checks and litigation defense)--
                    (A) the conversation shall be recorded; or
                    (B) detailed minutes of the session shall be taken 
                and included in the record of proceeding.
            (3) Notification.--
                    (A) In general.--If the Secretary of Homeland 
                Security, in the course of written or oral 
                communication described in this subsection, receives 
                evidence about a specific case from anyone other than 
                an affected party or his or her representative 
                (excluding Federal Government or law enforcement 
                sources), such information may not be made part of the 
                record of proceeding and may not be considered in 
                adjudicative proceedings unless--
                            (i) the affected party has been given 
                        notice of such evidence; and
                            (ii) if such evidence is derogatory, the 
                        affected party has been given an opportunity to 
                        respond to the evidence.
                    (B) Information from law enforcement, intelligence 
                agencies, or confidential sources.--
                            (i) Law enforcement or intelligence 
                        agencies.--Evidence received from law 
                        enforcement or intelligence agencies may not be 
                        made part of the record of proceeding without 
                        the consent of the relevant agency or law 
                        enforcement entity.
                            (ii) Whistleblowers, confidential sources, 
                        or intelligence agencies.--Evidence received 
                        from whistleblowers, other confidential 
                        sources, or the intelligence community that is 
                        included in the record of proceeding and 
                        considered in adjudicative proceedings shall be 
                        handled in a manner that does not reveal the 
                        identity of the whistleblower or confidential 
                        source, or reveal classified information.
    (d) Consideration of Evidence.--
            (1) In general.--Case-specific communication with persons 
        or entities that are not part of the Department of Homeland 
        Security may not be considered in the adjudication of an 
        application or petition under section 203(b)(5) of the 
        Immigration and Nationality Act (8 U.S.C. 1153(b)(5)) unless 
        the communication is included in the record of proceeding of 
        the case.
            (2) Waiver.--The Secretary of Homeland Security may waive 
        the application of paragraph (1) only in the interests of 
        national security or for investigative or law enforcement 
        purposes.
    (e) Channels of Communication.--
            (1) E-mail address or equivalent.--The Director of U.S. 
        Citizenship and Immigration Services shall maintain an e-mail 
        account (or equivalent means of communication) for persons or 
        entities--
                    (A) with inquiries regarding specific petitions or 
                applications under the immigrant visa program described 
                in section 203(b)(5) of the Immigration and Nationality 
                Act (8 U.S.C. 1153(b)(5)); or
                    (B) seeking non-case-specific information about the 
                immigrant visa program described in such section 
                203(b)(5).
            (2) Communication only through appropriate channels or 
        offices.--
                    (A) Announcement of appropriate channels of 
                communication.--Not later than 40 days after the date 
                of the enactment of this Act, the Director of U.S. 
                Citizenship and Immigration Services shall announce 
                that the only channels or offices by which industry 
                stakeholders, petitioners, applicants, and seekers of 
                benefits under the immigrant visa program described in 
                section 203(b)(5) of the Immigration and Nationality 
                Act (8 U.S.C. 1153(b)(5)) may communicate with the 
                Department of Homeland Security regarding specific 
                cases under such section (except for communication made 
                by applicants and petitioners pursuant to regular 
                adjudicatory procedures), or non-case-specific 
                information about the visa program applicable to 
                certain cases under such section, are through--
                            (i) the e-mail address or equivalent 
                        channel described in paragraph (1);
                            (ii) the National Customer Service Center 
                        of U.S. Citizenship and Immigration Services, 
                        or any successor to that Center; or
                            (iii) the Customer Service and Public 
                        Engagement Directorate, the Immigrant Investor 
                        Program Office, or any successor agencies.
                    (B) Direction of incoming communications.--
                            (i) In general.--Employees of the 
                        Department of Homeland Security shall direct 
                        communications described in subparagraph (A) to 
                        the channels of communication or offices listed 
                        in subparagraph (A).
                            (ii) Rule of construction.--Nothing in this 
                        subparagraph may be construed to prevent--
                                    (I) any person from communicating 
                                with the Ombudsman of U.S. Citizenship 
                                and Immigration Services regarding the 
                                immigrant investor program under 
                                section 203(b)(5) of the Immigration 
                                and Nationality Act (8 U.S.C. 
                                1153(b)(5)); or
                                    (II) the Ombudsman from resolving 
                                problems regarding such immigrant 
                                investor program under section 452 of 
                                the Homeland Security Act of 2002 (6 
                                U.S.C. 272).
                    (C) Log.--
                            (i) In general.--The Director of U.S. 
                        Citizenship and Immigration Services shall 
                        maintain a written or electronic log of--
                                    (I) all communications described in 
                                subparagraph (A) and communications 
                                from Members of Congress, which shall 
                                reference--
                                            (aa) the date, time, and 
                                        subject of the communication; 
                                        and
                                            (bb) the identity of the 
                                        Department of Homeland Security 
                                        official, if any, to whom the 
                                        inquiry was forwarded;
                                    (II) with respect to written 
                                communications described in subsection 
                                (c)(1)--
                                            (aa) the date on which such 
                                        communication was received;
                                            (bb) the identities of the 
                                        sender and addressee; and
                                            (cc) the subject of such 
                                        communication; and
                                    (III) with respect to oral 
                                communications described in subsection 
                                (c)(2)--
                                            (aa) the date on which such 
                                        communication occurred;
                                            (bb) the participants in 
                                        the conversation or meeting; 
                                        and
                                            (cc) the subject of such 
                                        communication.
                            (ii) Transparency.--The log of 
                        communications described in clause (i) shall be 
                        made publicly available in accordance with 
                        section 552 of title 5, United States Code 
                        (commonly known as the ``Freedom of Information 
                        Act'').
            (3) Publication of information.--If, as a result of a 
        communication with an official of the Department of Homeland 
        Security, a person or entity inquiring about a specific case or 
        about the immigrant visa program described in section 203(b)(5) 
        of the Immigration and Nationality Act (8 U.S.C. 1153(b)(5)) 
        received generally applicable and non-case-specific information 
        about program requirements or administration that has not been 
        made publicly available by the Department, the Director of U.S. 
        Citizenship and Immigration Services shall publish such 
        information on the U.S. Citizenship and Immigration Services 
        website, not later than 30 days after the communication of such 
        information to such person or entity, as an update to the 
        relevant Frequently Asked Questions page or by some other 
        comparable mechanism.
    (f) Penalty.--
            (1) In general.--Any person who intentionally violates the 
        prohibition on preferential treatment under this section or 
        intentionally violates the reporting requirements under 
        subsection (c) shall be disciplined in accordance with 
        paragraph (2).
            (2) Sanctions.--Not later than 90 days after the date of 
        the enactment of this Act, the Secretary of Homeland Security 
        shall establish, in addition to any criminal or civil penalties 
        that may be imposed, a graduated set of sanctions based on the 
        severity of the violation referred to in paragraph (1), which 
        may include written reprimand, suspension, demotion, or 
        removal.
    (g) Rule of Construction.--Nothing in this section may be construed 
to modify any law, regulation, or policy regarding the handling or 
disclosure of classified information.
    (h) No Creation of Private Right of Action.--Nothing in this 
section may be construed to create or authorize a private right of 
action to challenge a decision of an employee of the Department of 
Homeland Security.
    (i) Effective Date.--This section, and the amendments made by this 
section, shall take effect on the date of the enactment of this Act.
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