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 sub-
ject matter jurisdiction, over the pur-
chase or sale of any security offered 
or sold by any regional center or any 
party associated with a regional cen-
ter for purposes of the securities laws. 
‘‘(II) COMPLIANCE WITH REGU-
LATION 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 cen-
ter is not precluded from offering or 
selling a security pursuant to Regula-
tion S (17 C.F.R. 230.901 et seq.) to 
the extent that such offering or selling 
otherwise complies with such regula-
tion. Subparagraph (I) is not intended 
to modify any existing regulations or 
interpretations of the Securities and 
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Exchange Commission related to the 
application of section 15(a) of the Se-
curities Exchange Act of 1934 (15 
U.S.C. 78o(a)) to foreign broker deal-
ers. 
‘‘(ii) REGIONAL
CENTER
CERTIFI-
CATIONS REQUIRED.— 
‘‘(I) INITIAL
CERTIFICATION.— 
The Secretary of Homeland Security 
may not approve an application for re-
gional center designation or regional 
center amendment unless the regional 
center certifies that, to the best of the 
certifier’s knowledge, after a due dili-
gence investigation, the regional cen-
ter is in compliance with and has poli-
cies and procedures, including those 
related to internal and external due 
diligence, reasonably designed to con-
firm, as applicable, that all parties as-
sociated with the regional center are 
and will remain in compliance with 
the securities laws of the United 
States and of any State in which— 
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‘‘(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 cen-
ter or parties associated with the 
regional center. 
‘‘(II) REISSUE.—A regional cen-
ter shall annually reissue a certifi-
cation described in subclause (I), in 
accordance with subparagraph (G), to 
certify compliance with clause (iii) by 
stating that— 
‘‘(aa) the certifier is in a po-
sition to have knowledge of the 
offers, purchases, and sales of se-
curities or the provision of invest-
ment advice by parties associated 
with the regional center; 
‘‘(bb) to the best of the cer-
tifier’s knowledge, after a due 
diligence investigation, all such 
offers, purchases, and sales of se-
curities or the provision of invest-
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ment advice complied with the se-
curities laws of the United States 
and the securities laws of any 
State in which the offer, pur-
chase, or sale of securities was 
conducted, the issuer of securities 
was located, or the investment 
advice was provided; and 
‘‘(cc) records, data, and in-
formation related to such offers, 
purchases, and sales have been 
maintained. 
‘‘(III) EFFECT
OF
NONCOMPLI-
ANCE.—If a regional center, through 
its due diligence, discovered during 
the previous fiscal year that the re-
gional 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 securi-
ties activities were conducted by any 
party associated with the regional cen-
ter, the certifier shall— 
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smartinez on DSK4TPTVN1PROD with BILLS
‘‘(aa) describe the activities 
that led to noncompliance; 
‘‘(bb) describe the actions 
taken to remedy the noncompli-
ance; and 
‘‘(cc) certify that the re-
gional center and all parties asso-
ciated with the regional center 
are currently in compliance, to 
the best of the certifier’s knowl-
edge, after a due diligence inves-
tigation. 
‘‘(iii) OVERSIGHT
REQUIRED.—Each 
regional center shall— 
‘‘(I) monitor and supervise all of-
fers, purchases, and sales of, and in-
vestment 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 ad-
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vice during the 5-year period begin-
ning on the date of their creation; and 
‘‘(III) make the records, data, 
and information described in sub-
clause (II) available to the Secretary 
upon request. 
‘‘(iv) 
SUSPENSION
OR
TERMI-
NATION.—In addition to any other author-
ity 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 tempo-
rarily enjoined by order, judgment, or 
decree of any court of competent ju-
risdiction 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 
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Commission or a State securities reg-
ulator that— 
‘‘(aa) bars such person from 
association with an entity regu-
lated by the Securities and Ex-
change Commission or a State 
securities regulator; or 
‘‘(bb) constitutes a final 
order based on a finding of an in-
tentional violation or a violation 
related to fraud or deceit in con-
nection 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 omit-
ted to state a material fact necessary 
in order to make the statements 
made, in light of the circumstances 
under which they were made, not mis-
leading. 
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‘‘(v) DEFINED
TERM.—In this sub-
paragraph, the term ‘parties associated 
with a regional center’ means— 
‘‘(I) the regional center; 
‘‘(II) any new commercial enter-
prise 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 Securi-
ties and Exchange Commission under the 
Federal securities laws or any State securi-
ties regulator under State securities laws. 
‘‘(J) EB–5 INTEGRITY FUND.— 
‘‘(i) ESTABLISHMENT.—There is es-
tablished in the United States Treasury a 
special fund, which shall be known as the 
EB–5 Integrity Fund (referred to in this 
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smartinez on DSK4TPTVN1PROD with BILLS
subparagraph as the ‘Fund’). Amounts de-
posited 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 cen-
ter designated under subpara-
graph (E); 
‘‘(bb) 
collect 
a 
fee 
of 
$10,000 from each regional cen-
ter designated under subpara-
graph (E) that has 20 or fewer 
total investors in the preceding 
fiscal year in its new commercial 
enterprises; and 
‘‘(cc) deposit the fees col-
lected pursuant to items (aa) and 
(bb) into the Fund. 
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‘‘(II) PETITION FEE.—Beginning 
on April 1, 2016, the Secretary shall 
collect a fee of $1,000 with each peti-
tion 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 
Sec-
retary 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— 
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‘‘(aa) monitoring and inves-
tigating program-related events 
and promotional activities; and 
‘‘(bb) ensuring the compli-
ance of alien investors with sub-
paragraph (L); 
‘‘(III) use amounts deposited into 
the Fund— 
‘‘(aa) to detect and inves-
tigate fraud or other crimes; and 
‘‘(bb) to determine whether 
regional centers, new commercial 
enterprises, any affiliated job-cre-
ating entities, and alien investors 
(and their alien spouses and alien 
children) comply with the immi-
gration laws; 
‘‘(IV) use amounts deposited into 
the Fund to conduct interviews of the 
owners, officers, directors, managers, 
partners, 
agents, 
employees, 
pro-
moters, and attorneys of regional cen-
ters, new commercial enterprises, and 
job-creating entities; and 
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‘‘(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 
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amounts in the Fund were expended dur-
ing the previous fiscal year. 
‘‘(K) DIRECT
AND
THIRD-PARTY
PRO-
MOTERS.— 
‘‘(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. Citi-
zenship and Immigration Services, 
which— 
‘‘(aa) may be limited to 
identifying and contact informa-
tion of such promoter and con-
firmation of the existence of the 
written agreement required under 
clause (iii); 
‘‘(bb) may not include any 
requirement that U.S. Citizen-
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