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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5244 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 5244

 To prohibit the purchase of certain securities from covered entities, 
                        and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 25, 2024

 Mr. Ricketts introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
 To prohibit the purchase of certain securities from covered entities, 
                        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 ``PRC Military and Human Rights 
Capital Markets Sanctions Act of 2024''.

SEC. 2. PROHIBITION ON PURCHASE OF CERTAIN SECURITIES FROM COVERED 
              ENTITIES.

    (a) Definitions.--
            (1) Covered entity.--
                    (A) In general.--In this section, the term 
                ``covered entity'' means the following:
                            (i) Any entity that is on the list of 
                        Specially Designated Nationals and Blocked 
                        Persons maintained by the Office of Foreign 
                        Assets Control of the Department of the 
                        Treasury, or any entity under common ownership 
                        or control with such entity.
                            (ii) Any entity on the Non-SDN Chinese 
                        Military-Industrial Complex Companies List 
                        (commonly known as the ``NS-CMIC List'') 
                        maintained by the Office of Foreign Assets 
                        Control of the Department of the Treasury 
                        pursuant to Executive Order 13959 (50 U.S.C. 
                        1701 note; relating to addressing the threat 
                        from securities investments that finance 
                        communist Chinese military companies), or any 
                        entity under common ownership or control with 
                        such entity.
                            (iii) Any Chinese military company included 
                        on the list maintained by the Department of 
                        Defense under section 1260H(b) of the William 
                        M. (Mac) Thornberry National Defense 
                        Authorization Act for Fiscal Year 2021 (Public 
                        Law 116-283; 10 U.S.C. 113 note) as of the date 
                        of the enactment of this Act, or any entity 
                        under common ownership or control with such 
                        company.
                            (iv) Any Chinese entity with respect to 
                        which sanctions have been imposed under the 
                        under the Global Magnitsky Human Rights 
                        Accountability Act (22 U.S.C. 10101 et seq.), 
                        or any entity under common ownership or control 
                        with such entity.
                            (v) Any Chinese entity that produces goods 
                        that have been the subject of a withhold 
                        release order issued pursuant to section 307 of 
                        the Tariff Act of 1930 (19 U.S.C. 1307) during 
                        the 2-year period ending on the date of the 
                        enactment of this Act, or any entity under 
                        common ownership or control of such entity.
                            (vi) Any Chinese entity included on the 
                        Entity List maintained by the Bureau of 
                        Industry and Security of the Department of 
                        Commerce and set forth in Supplement No. 4 to 
                        part 744 of title 15, Code of Federal 
                        Regulations, or any entity under common 
                        ownership or control with such entity.
                            (vii) Any Chinese entity on a list 
                        maintained under clause (i), (ii), (iv), or (v) 
                        of section 2(d)(2)(B) of the Act entitled ``An 
                        Act to ensure that goods made with forced labor 
                        in the Xinjiang Autonomous Region of the 
                        People's Republic of China do not enter the 
                        United States market, and for other purposes'', 
                        approved December 23, 2021 (Public Law 117-78; 
                        22 U.S.C. 6901 note) (commonly referred to as 
                        the ``Uyghur Forced Labor Prevention Act''), or 
                        any entity under common ownership or control 
                        with such entity.
                            (viii) Any Chinese entity on the Military 
                        End-User List maintained by the Bureau of 
                        Industry and Security and set forth in 
                        Supplement No. 7 to part 744 of title 15, Code 
                        of Federal Regulations, or any entity under 
                        common ownership or control with such entity.
                    (B) Control.--For purposes of subparagraph (A), the 
                term ``control'' has the meaning given the term in 
                section 230.405 of title 17, Code of Federal 
                Regulations.
            (2) 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;
                    (B) an entity organized under the laws of the 
                United States or any jurisdiction within the United 
                States, including a foreign branch of such an entity; 
                or
                    (C) any person in the United States.
    (b) Prohibition.--Not later than 90 days after the date of 
enactment of this Act, the President shall--
            (1) compile and maintain a single list of covered entities;
            (2) where possible, include in the list described in 
        paragraph (1) a unique identification number for each covered 
        entity, such as a Committee on Uniform Securities 
        Identification Procedures number or a Stock Exchange Daily 
        Official List number;
            (3) make the list described in paragraph (1) available to 
        the public; and
            (4) publicly identify and prohibit the purchase, sale, or 
        holding by a United States person of a--
                    (A) publicly traded security issued by a covered 
                entity;
                    (B) publicly traded security that is derivative of 
                a publicly traded security issued by a covered entity; 
                and
                    (C) security that provides investment exposure to a 
                publicly traded security issued by a covered entity.
    (c) Divestment Required.--
            (1) In general.--Notwithstanding subsection (b), a United 
        States person shall divest of all securities described in 
        subsection (b)--
                    (A) with respect to a security identified by the 
                President under subsection (b) before the end of the 
                90-day period beginning on the date of enactment of 
                this Act, not later than 180 days after the date of 
                enactment of this Act; and
                    (B) with respect to a security identified by the 
                President under subsection (b) after the end of the 90-
                day period beginning on the date of enactment of this 
                Act, not later than 180 days after the date of such 
                identification.
            (2) Facilitating divestment transactions.--Subsection (b) 
        shall not apply to a United States person to the extent the 
        person is facilitating the divestment of securities described 
        in paragraph (1).
    (d) Penalties.--
            (1) In general.--A United States person that violates, 
        attempts to violate, conspires to violate, or causes a 
        violation of this Act shall be subject to the following 
        penalties:
                    (A) A civil penalty in an amount not to exceed the 
                greater of--
                            (i) $250,000; or
                            (ii) an amount that is twice the amount of 
                        the transaction that is the basis of the 
                        violation with respect to which the penalty is 
                        imposed.
                    (B) With respect to a United States person that 
                willfully violates, willfully attempts to violate, 
                willfully conspires to violate, or aids or abets in the 
                commission of a violation of this Act shall be subject 
                to a criminal penalty--
                            (i) of a fine of not more than $1,000,000; 
                        or
                            (ii) if such United States person is an 
                        individual, a fine of not more than $1,000,000, 
                        a term of imprisonment of not more than 20 
                        years, or both.
            (2) Amount of a transaction defined.--For purposes of 
        paragraph (1)(A)(ii), the term ``amount of a transaction'' 
        means--
                    (A) with respect to a purchase that violates this 
                Act, the purchase price;
                    (B) with respect to a sale that violates this Act, 
                the sale price; and
                    (C) with respect to the holding of a security that 
                violates this Act, the fair market value of the 
                security at the time of the violation.
                                 <all>
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