I
106TH CONGRESS
1ST SESSION
H. R. 2204
To establish an Office of National Security within the Securities and Ex-
change Commission, provide for the monitoring of the extent of foreign
involvement in United States securities markets, financial institutions,
and pension funds, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 15, 1999
Mr. BACHUS introduced the following bill; which was referred to the Com-
mittee on Commerce, and in addition to the Committees on International
Relations, Banking and Financial Services, and Education and the Work-
force, for a period to be subsequently determined by the Speaker, in each
case for consideration of such provisions as fall within the jurisdiction of
the committee concerned
A BILL
To establish an Office of National Security within the Securi-
ties and Exchange Commission, provide for the moni-
toring of the extent of foreign involvement in United
States securities markets, financial institutions, and pen-
sion funds, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; DEFINITIONS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘U.S. Market Security Act of 1999’’.
(b) DEFINITIONS.—For purposes of this Act—
(1) the term ‘‘Commission’’ means the Securi-
ties and Exchange Commission;
(2) the term ‘‘Director’’ means the director of
the Office of National Security established under
this Act;
(3) the term ‘‘Federal banking agency’’ has the
same meaning as in section 3 of the Federal Deposit
Insurance Act;
(4) the term ‘‘foreign bank’’ has the same
meaning as in section 1 of the International Bank-
ing Act of 1978;
(5) the term ‘‘Office’’ means the Office of Na-
tional Security established under this Act;
(6) the term ‘‘securities laws’’ has the same
meaning as in section 3 of the Securities Exchange
Act of 1934; and
(7) the term ‘‘securities offering’’ has the mean-
ing given that term by the Commission.
SEC. 2. ESTABLISHMENT OF OFFICE.
There is established within the Securities and Ex-
change Commission the Office of National Security.
SEC. 3. DIRECTOR.
The Office shall be headed by a Director, selected by
the Commission, in consultation with the appropriate com-
mittees of Congress.
SEC. 4. FUNCTIONS.
(a) SECURITIES ACTIVITIES OF FOREIGN OR FOR-
EIGN CONTROLLED ENTITIES.—The functions of the Of-
fice shall be to review and monitor securities offerings by
foreign governments and by any person or entity that the
Office has reason to believe is an agent for or is controlled,
in whole or in part, directly or indirectly, by a foreign gov-
ernment or any political subdivision of a foreign govern-
ment.
(b) REPORTS TO CONGRESS.—
(1) IN GENERAL.—The Office shall submit a
quarterly report to the Committees on Banking,
Housing, and Urban Affairs and Foreign Relations
of the Senate and the Select Committee on Intel-
ligence of the Senate, and the Committees on Bank-
ing and Financial Services and International Rela-
tions of the House of Representatives and the Per-
manent Select Committee on Intelligence of the
House of Representatives regarding the amount of
securities offerings by foreign governments and
other persons and entities described in subsection
(a) that have occurred during the preceding quarter,
or are planned to be offered in the next occurring
quarter.
(2) ACCESSIBILITY OF INFORMATION.—The Of-
fice may, by rule, regulation, or order, take such ac-
tion as may be necessary to collect information nec-
essary to complete the reports required under para-
graph (1).
(c) NOTIFICATION
TO CHAIRMAN.—The Director
shall promptly notify the Chairman of the Commission of
any information that the Director has reason to believe
indicates a violation or possible violation of the securities
laws by any person or entity described in subsection (a).
SEC. 5. ANNUAL REPORT BY FEDERAL BANKING AGENCIES.
(a) IN GENERAL.—Each Federal banking agency
shall prepare and submit to the appropriate committees
of Congress an annual report regarding the number of for-
eign banks operating in the United States that the agency
has reason to believe is controlled, in whole or in part,
directly or indirectly, by a foreign government or any polit-
ical subdivision of a foreign government.
(b) ACCESSIBILITY OF INFORMATION.—The Federal
banking agencies may, by rule, regulation, or order, take
such action as may be necessary to collect information nec-
essary to complete the reports required under subsection
(a).
SEC. 6. ANNUAL REPORT BY PENSION BENEFIT GUARANTY
CORPORATION.
(a) IN GENERAL.—The Pension Benefit Guaranty
Corporation shall prepare and submit to the appropriate
committees of Congress an annual report regarding the
extent of United States pension fund assets that represent
interests in any person, entity, or foreign government de-
scribed in section 4(a).
(b) ACCESSIBILITY TO INFORMATION.—The Pension
Benefit Guaranty Corporation may, by rule, regulation, or
order, take such action as may be necessary to collect in-
formation necessary to complete the reports required
under subsection (a).
SEC. 7. INTERNATIONAL NEGOTIATIONS.
The Secretary of State and the Secretary of the
Treasury are directed to enter into negotiations to con-
clude agreements with other nations that are allied with
the United States, including Japan and members of the
European Union, to institute in those nations reporting
requirements similar to those imposed by this Act. Within
one year from the date of enactment, the State Depart-
ment and the Treasury Department shall report to Con-
gress on the progress of negotiations required pursuant
to this section.
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