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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3952 Introduced in Senate (IS)]

<DOC>

116th CONGRESS
  2d Session
                                S. 3952

To require the imposition of sanctions with respect to foreign persons 
   that have engaged in significant theft of trade secrets of United 
                States persons, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 11, 2020

  Mr. Van Hollen (for himself and Mr. Sasse) introduced the following 
 bill; which was read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
To require the imposition of sanctions with respect to foreign persons 
   that have engaged in significant theft of trade secrets of United 
                States persons, and for other purposes.

    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 ``Protecting American Intellectual 
Property Act of 2020''.

SEC. 2. IMPOSITION OF SANCTIONS WITH RESPECT TO THEFT OF TRADE SECRETS 
              OF UNITED STATES PERSONS.

    (a) Report Required.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, and not less frequently than every 
        180 days thereafter, the President shall submit to the 
        appropriate congressional committees a report--
                    (A) identifying, for the 180-day period preceding 
                submission of the report--
                            (i) any foreign person that has engaged in, 
                        or benefitted from, significant and serial 
                        theft of trade secrets of United States 
                        persons, if the theft of such trade secrets is 
                        reasonably likely to result in, or has 
                        materially contributed to, a significant threat 
                        to the national security, foreign policy, or 
                        economic health or financial stability of the 
                        United States;
                            (ii) any foreign person that has materially 
                        assisted or sponsored such theft;
                            (iii) any foreign person that has provided 
                        financial, material, or technological support 
                        for, or goods or services in support of or to 
                        benefit from, such theft;
                            (iv) any entity owned or controlled by, or 
                        that has acted or purported to act for or on 
                        behalf of, directly or indirectly, any foreign 
                        person identified under clause (i), (ii), or 
                        (iii); and
                            (v) any chief executive officer or member 
                        of the board of directors of any foreign entity 
                        identified under clause (i), (ii), or (iii); 
                        and
                    (B) describing the nature, objective, and outcome 
                of the theft of trade secrets each foreign person 
                described in subparagraph (A)(i) engaged in or 
                benefitted from; and
                    (C) assessing whether any chief executive officer 
                or member of the board of directors described in clause 
                (v) of subparagraph (A) engaged in, or benefitted from, 
                activity described in clause (i), (ii), or (iii) of 
                that subparagraph.
            (2) Exception.--The President is not required to include in 
        a report required by paragraph (1) the name of any foreign 
        person that is the subject of an active United States law 
        enforcement investigation.
            (3) Form of report.--Each report required by paragraph (1) 
        shall be submitted in unclassified form but may include a 
        classified annex.
    (b) Authority To Impose Sanctions.--
            (1) Sanctions applicable to entities.--In the case of a 
        foreign entity identified under subparagraph (A) of subsection 
        (a)(1) in the most recent report submitted under that 
        subsection, the President shall impose one of the following:
                    (A) Blocking of property.--The President may, 
                pursuant to the International Emergency Economic Powers 
                Act (50 U.S.C. 1701 et seq.), block and prohibit all 
                transactions in all property and interests in property 
                of the entity if such property and interests in 
                property are in the United States, come within the 
                United States, or are or come within the possession or 
                control of a United States person.
                    (B) Inclusion on denied persons list.--The 
                President may include the entity on the Denied Persons 
                List maintained by the Bureau of Industry and Security 
                of the Department of Commerce pursuant to section 
                764.3(a)(2) of the Export Administration Regulations.
            (2) Sanctions applicable to individuals.--In the case of an 
        individual identified under subparagraph (A) of subsection 
        (a)(1) in the most recent report submitted under that 
        subsection, the following shall apply:
                    (A) Blocking of property.--The President shall, 
                pursuant to the International Emergency Economic Powers 
                Act (50 U.S.C. 1701 et seq.), block and prohibit all 
                transactions in all property and interests in property 
                of the individual if such property and interests in 
                property are in the United States, come within the 
                United States, or are or come within the possession or 
                control of a United States person.
                    (B) Visa ban; exclusion.--The Secretary of State 
                shall deny a visa to the individual and revoke, in 
                accordance with section 221(i) of the Immigration and 
                Nationality Act (8 U.S.C. 1201(i)), any visa or other 
                documentation of the individual, and the Secretary of 
                Homeland Security shall exclude the individual from the 
                United States.
    (c) Exceptions.--
            (1) Intelligence activities.--This section shall not apply 
        with respect to activities subject to the reporting 
        requirements under title V of the National Security Act of 1947 
        (50 U.S.C. 3091 et seq.) or any authorized intelligence 
        activities of the United States.
            (2) Exception relating to importation of goods.--
                    (A) In general.--The authority to impose sanctions 
                under paragraph (1)(A) or (2)(A) of subsection (b) 
                shall not include the authority or a requirement to 
                impose sanctions on the importation of goods.
                    (B) Good defined.--In this paragraph, the term 
                ``good'' means any article, natural or manmade 
                substance, material, supply, or manufactured product, 
                including inspection and test equipment, and excluding 
                technical data.
            (3) Exception to comply with international agreements.--
        Subsection (b)(2)(B) shall not apply with respect to the 
        admission of an individual to the United States if such 
        admission is necessary to comply with the obligations of the 
        United States under the Agreement regarding the Headquarters of 
        the United Nations, signed at Lake Success June 26, 1947, and 
        entered into force November 21, 1947, between the United 
        Nations and the United States, under the Convention on Consular 
        Relations, done at Vienna April 24, 1963, and entered into 
        force March 19, 1967, or under other international agreements.
    (d) National Security Waiver.--The President may waive the 
imposition of sanctions under subsection (b) with respect to a person 
if the President--
            (1) determines that such a waiver is in the national 
        security interests of the United States; and
            (2) submits to the appropriate congressional committees a 
        notification of the waiver and the reasons for the waiver.
    (e) Termination of Sanctions.--Sanctions imposed under subsection 
(b) with respect to a foreign person identified in a report submitted 
under subsection (a) shall terminate if the President certifies to the 
appropriate congressional committees that the person is no longer 
engaged in the activity identified in the report.
    (f) Implementation; Penalties.--
            (1) Implementation.--The President may exercise all 
        authorities provided under sections 203 and 205 of the 
        International Emergency Economic Powers Act (50 U.S.C. 1702 and 
        1704) to carry out this section.
            (2) Penalties.--A person that violates, attempts to 
        violate, conspires to violate, or causes a violation of 
        paragraph (1)(A) or (2)(A) of subsection (b) or any regulation, 
        license, or order issued to carry out that paragraph shall be 
        subject to the penalties set forth in subsections (b) and (c) 
        of section 206 of the International Emergency Economic Powers 
        Act (50 U.S.C. 1705) to the same extent as a person that 
        commits an unlawful act described in subsection (a) of that 
        section.
    (g) Definitions.--In this section:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Banking, Housing, and Urban 
                Affairs and the Committee on Foreign Relations of the 
                Senate; and
                    (B) the Committee on Financial Services and the 
                Committee on Foreign Affairs of the House of 
                Representatives.
            (2) Export administration regulations.--The term ``Export 
        Administration Regulations'' means subchapter C of chapter VII 
        of title 15, Code of Federal Regulations.
            (3) Foreign entity.--The term ``foreign entity'' means an 
        entity that is not a United States person.
            (4) Foreign person.--The term ``foreign person'' means a 
        person that is not a United States person.
            (5) Trade secret.--The term ``trade secret'' has the 
        meaning given that term in section 1839 of title 18, United 
        States Code.
            (6) Person.--The term ``person'' means an individual or 
        entity.
            (7) United states person.--The term ``United States 
        person'' means--
                    (A) a United States citizen or an alien lawfully 
                admitted for permanent residence to the United States; 
                or
                    (B) an entity organized under the laws of the 
                United States or of any jurisdiction within the United 
                States, including a foreign branch of such an entity.
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