I 
118TH CONGRESS 
2D SESSION 
H. R. 7759 
To prohibit the purchase of certain securities from covered entities, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 20, 2024 
Mr. SHERMAN (for himself and Mrs. SPARTZ) introduced the following bill; 
which was referred to the Committee on Financial Services 
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 Representa-
tives 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 SECURI-
TIES FROM COVERED ENTITIES. 
(a) IN GENERAL.—Not later than 90 days after the 
date of the enactment of this Act, the President shall— 
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(1) compile and maintain a single list of cov-
ered entities; 
(2) where possible, include in the list a unique 
identification number for each covered entity, such 
as a Committee on Uniform Securities Identification 
Procedures number or a Stock Exchange Daily Offi-
cial List number; 
(3) make such list available to the public; and 
(4) publicly identify and prohibit the purchase, 
sale, or holding by a United States person (as de-
fined under section 560.314 of title 31, Code of Fed-
eral Regulations) of a— 
(A) publicly traded security issued by a 
covered entity; 
(B) publicly traded security that is deriva-
tive of a publicly traded security issued by a 
covered entity; and 
(C) security that provides investment expo-
sure to a publicly traded security issued by a 
covered entity. 
(b) DIVESTMENT REQUIRED.— 
(1) IN GENERAL.—Notwithstanding subsection 
(a), a United States person shall divest of all securi-
ties described in subsection (a)— 
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(A) with respect to a security identified by 
the President under subsection (a) before the 
end of the 90-day period beginning on the date 
of the enactment of this Act, not later than 180 
days after the date of the enactment of this 
Act; and 
(B) with respect to a security identified by 
the President under subsection (a) after the end 
of the 90-day period beginning on the date of 
the enactment of this Act, not later than 180 
days after the date of such identification. 
(2) 
FACILITATING
DIVESTMENT
TRANS-
ACTIONS.—Subsection (a) shall not apply to a 
United States person to the extent the person is fa-
cilitating the divestment of securities described 
under paragraph (1). 
(c) 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 ex-
ceed the greater of— 
(i) $250,000; or 
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(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 vio-
late, 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 secu-
rity that violates this Act, the fair market value 
of the security at the time of the violation. 
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(d) COVERED ENTITY DEFINED.— 
(1) IN
GENERAL.—In this section, the term 
‘‘covered entity’’ means the following: 
(A) Any person that is on the list of Spe-
cially Designated Nationals and Blocked Per-
sons maintained by the Office of Foreign Assets 
Control of the Department of the Treasury, or 
any person under common ownership or control 
of such person. 
(B) Any person on the Non-SDN Chinese 
Military-Industrial Complex Companies List 
(NS–CMIC List) maintained by the Office of 
Foreign Assets Control of the Department of 
the Treasury under Executive Order 14032 (86 
Fed. Reg. 30145; relating to addressing the 
threat from securities investments that finance 
certain companies of the People’s Republic of 
China), or any person under common ownership 
or control of such person. 
(C) Any person that is a Chinese military 
company or a military-civil fusion contributor 
and included on the list maintained by the De-
partment of Defense in accordance with section 
1260H(b) of the National Defense Authoriza-
tion Act for Fiscal Year 2021 (10 U.S.C. 113 
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note) as of the date of the enactment of this 
Act, or any person under common ownership or 
control of such person. 
(D) Any person that is a Chinese person 
and 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 person under common 
ownership or control of such person. 
(E) Any person that is a Chinese person 
whose goods have been the subject of a With-
hold Release Order 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 en-
actment of this Act, or any person under com-
mon ownership or control of such person. 
(F) Any person that is Chinese entity list-
ed on the Entity List set forth in Supplement 
No. 4 to part 744 of the Export Administration 
Regulations. 
(G) Any Chinese person on the Uyghur 
Forced Labor Prevention Act Entity List, 
maintained by the Department of Homeland 
Security, or any person under common owner-
ship or control of such person. 
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(H) Any Chinese person on the Military 
End User List maintained by the Department 
of Commerce (Supplement 7 to part 744 of 
chapter VII, subchapter C of title 15, Code of 
Federal Regulations), or any person under com-
mon ownership or control of such person. 
(2) CONTROL.—For purposes of paragraph (1), 
the term ‘‘control’’ has the meaning given that term 
under section 230.405 of title 17, Code of Federal 
Regulations. 
Æ 
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