I 
116TH CONGRESS 
2D SESSION 
H. R. 6916 
To prohibit the listing of certain firms on national securities exchanges, 
to provide for expensing of costs directly connected with moving manufac-
turing from China to the United States, to establish a counterintelligence 
vetting task force, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 15, 2020 
Mr. WALKER introduced the following bill; which was referred to the Com-
mittee on Homeland Security, and in addition to the Committees on 
Ways and Means, and Financial Services, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To prohibit the listing of certain firms on national securities 
exchanges, to provide for expensing of costs directly con-
nected with moving manufacturing from China to the 
United States, to establish a counterintelligence vetting 
task force, 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 ‘‘Cage the Paper Tiger 
Act of 2020’’. 
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SEC. 2. PROHIBITION AGAINST THE LISTING OF CERTAIN 
FIRMS 
ON 
NATIONAL 
SECURITIES 
EX-
CHANGES. 
(a) IN GENERAL.—Section 6(b) of the Securities Ex-
change Act of 1934 (15 U.S.C. 78f(b)) is amended by add-
ing at the end the following: 
‘‘(11)(A) The rules of the exchange prohibit the 
initial listing, after the date of enactment of this 
paragraph, of any security of an issuer if the reg-
istration statement filed with the Commission for 
such security includes an audit report prepared by 
a covered foreign public accounting firm. 
‘‘(B) Nothing in subparagraph (A) may be con-
strued to prevent an exchange from listing a security 
on the exchange on or after the date of enactment 
of this paragraph if that security was listed on the 
exchange or a national securities exchange before 
the date of enactment of this paragraph. 
‘‘(C) In this paragraph— 
‘‘(i) the term ‘audit report’ has the mean-
ing given the term in section 2(a) of the Sar-
banes-Oxley Act of 2002 (15 U.S.C. 7201(a)); 
‘‘(ii) the term ‘covered foreign public ac-
counting firm’ means a foreign public account-
ing firm that the Public Company Accounting 
Oversight Board is unable to inspect or inves-
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tigate under the Sarbanes-Oxley Act of 2002 
(15 U.S.C. 7201 et seq.) because of a position 
taken by an authority outside of the United 
States; and 
‘‘(iii) the term ‘foreign public accounting 
firm’ has the meaning given the term in section 
106(g) of the Sarbanes-Oxley Act of 2002 (15 
U.S.C. 7216(g)).’’. 
(b) RULES.— 
(1) PROPOSALS.—Not later than 90 days after 
the date of enactment of this Act, each national se-
curities exchange shall file with the Commission any 
proposed change to the rules of the exchange that is 
required as a result of the amendments made by this 
section. 
(2) ADOPTION.—Not later than 1 year after the 
date of enactment of this Act, each national securi-
ties exchange shall have each proposed change de-
scribed in paragraph (1) approved by the Commis-
sion. 
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SEC. 3. EXPENSING OF COSTS DIRECTLY CONNECTED WITH 
MOVING MANUFACTURING FROM CHINA TO 
THE UNITED STATES. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting after section 179E the following new section: 
‘‘SEC. 179F. ELECTION TO EXPENSE CERTAIN ASSETS DI-
RECTLY CONNECTED TO MOVING MANUFAC-
TURING 
FROM 
CHINA 
TO 
THE 
UNITED 
STATES. 
‘‘(a) IN GENERAL.—A specified taxpayer may elect 
to treat amounts paid or incurred for repatriation prop-
erty as an expense which is not chargeable to capital ac-
count. Any cost so treated shall be allowed as a deduction 
for the taxable year in which such repatriation property 
is placed in service. 
‘‘(b) SPECIFIED TAXPAYER.—For purposes of this 
section, the term ‘specified taxpayer’ means any taxpayer 
engaged in the trade or business of manufacturing any 
product if— 
‘‘(1) as of the date of the enactment of this sec-
tion, such taxpayer manufactured such product in 
China, and 
‘‘(2) as of the date which is 3 years after the 
date that the repatriation property is placed in serv-
ice— 
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‘‘(A) such taxpayer does not manufacture 
such product in China, and 
‘‘(B) the quantity of such product manu-
factured in the United States by such taxpayer 
has increased (relative to such quantity deter-
mined as of the date of the enactment of this 
section) by an amount not less than the quan-
tity of such product manufactured in China as 
of the date of the enactment of this section. 
‘‘(c) REPATRIATION PROPERTY.—For purposes of 
this section, the term ‘repatriation property’ means any 
property (including any real property) if— 
‘‘(1) such property is used by the taxpayer in 
the United States to manufacture the product re-
ferred to in subsection (b), 
‘‘(2) the acquisition of such property by the 
taxpayer is directly connected to replacing the pro-
ductive capacity lost by the taxpayer by reason of 
ceasing manufacturing of such product in China (as 
described in subsection (b)(2)(A)), and 
‘‘(3) such property is of a character which is 
subject to the allowance for depreciation provided in 
section 167. 
‘‘(d) APPLICATION OF CERTAIN RULES.—Rules simi-
lar to the rules of subsection (c), and paragraphs (4) and 
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(10) of subsection (d), of section 179 shall apply for pur-
poses of this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part VI of subchapter B of chapter 1 of such Code 
is amended by inserting after the item relating to section 
179E the following new item: 
‘‘Sec. 179F. Election to expense certain assets directly connected to moving 
manufacturing from China to the United States.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act, in taxable years 
ending after such date. 
SEC. 4. DEPARTMENT OF HOMELAND SECURITY COUNTER-
INTELLIGENCE VETTING TASK FORCE. 
(a) ESTABLISHMENT.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of 
Homeland Security shall assign personnel of the Depart-
ment of Homeland Security to participate in a counter-
intelligence vetting task force to make recommendations 
to improve counterintelligence vetting for appropriate de-
partmental programs. 
(b) PERSONNEL.—In carrying out subsection (a), the 
Secretary of Homeland Security may assign personnel 
from any component of the Department of Homeland Se-
curity the Secretary determines necessary to participate 
in the task force established pursuant to such subsection. 
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(c) COORDINATION.—In carrying out subsection (a), 
the Secretary of Homeland Security may request partici-
pation in the task force established pursuant to such sub-
section from other appropriate Federal agencies. 
(d) REPORT.—Not later than one year after the date 
of the enactment of this Act, the Secretary of Homeland 
Security shall submit to the Committee on Homeland Se-
curity of the House of Representatives and the Committee 
on Homeland Security and Governmental Affairs of the 
Senate a report on the recommendations made by the task 
force established pursuant to subsection (a). 
SEC. 5. COUNTERINTELLIGENCE TRAINING AND VETTING. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, in carrying out the pro-
gram administered pursuant to section 442(a)(4) of the 
Homeland Security Act (6 U.S.C. 252(a)(4)), the Sec-
retary of Homeland Security shall develop a counterintel-
ligence awareness training program and require participa-
tion in such program from appropriate faculty, as deter-
mined by the Secretary in consultation with the Homeland 
Security Academic Advisory Council (established pursuant 
to section 871 of the Homeland Security Act of 2002 (6 
U.S.C. 451)), from approved institutions of higher edu-
cation, other approved educational institutions, and des-
ignated exchange visitor programs in the United States. 
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(b) PROGRAM ENHANCEMENTS.—Not later than one 
year after the date of enactment of this Act, the Secretary 
of Homeland Security shall make the following enhance-
ments to the program administered pursuant to section 
442(a)(4) of the Homeland Security Act (6 U.S.C. 
252(a)(4)): 
(1) Identify degrees and fields of study deter-
mined to be sensitive for homeland security and 
counterintelligence purposes. 
(2) Update the information to be collected to 
include any changes to the degree programs, if ap-
plicable, and fields of study. 
(3) Make any other enhancements determined 
appropriate by the Secretary to improve counter-
intelligence vetting capabilities. 
(c) CONSULTATION.—In carrying out the identifica-
tion required pursuant to subsection (b)(1), the Secretary 
of Homeland Security shall consult with the Secretary of 
State to ensure the degrees and field of study determined 
to be sensitive for homeland security and counterintel-
ligence purposes referred to in such subsection are aligned, 
to the greatest extent practicable, between the Department 
of Homeland Security and the Department of State. 
(d) DEFINITIONS.— 
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(1) APPROVED INSTITUTION OF HIGHER EDU-
CATION.—The term ‘‘approved institution of higher 
education’’ has the meaning given such term in sec-
tion 641(h) of the Illegal Immigration Reform and 
Immigrant Responsibility Act of 1996 (8 U.S.C. 
1372). 
(2) DESIGNATED
EXCHANGE
VISITOR
PRO-
GRAM.—The term ‘‘designated exchange visitor pro-
gram’’ has the meaning given such term in section 
641(h) of the Illegal Immigration Reform and Immi-
grant Responsibility Act of 1996 (8 U.S.C. 1372). 
(3) OTHER APPROVED EDUCATIONAL INSTITU-
TION.—The term ‘‘other approved educational insti-
tution’’ has the meaning given such term in section 
641(h) of the Illegal Immigration Reform and Immi-
grant Responsibility Act of 1996 (8 U.S.C. 1372). 
SEC. 6. HOMELAND SECURITY ACADEMIC ADVISORY COUN-
CIL. 
(a) IN GENERAL.—Not later than 30 days after the 
date of the enactment of this Act, the Secretary of Home-
land Security shall convene a meeting of the Homeland 
Security Academic Advisory Council to seek advice and 
recommendations from the Council on the counterintel-
ligence awareness training and appropriate faculty des-
ignated to receive such training required under section 5. 
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(b) NOTIFICATION.—Not later than September 1, 
2020, the Secretary of Homeland Security shall notify the 
Committee on Homeland Security of the House of Rep-
resentatives and the Committee on Homeland Security 
and Governmental Affairs of the Senate if the Secretary 
determines to not extend the existence of the Homeland 
Security Academic Advisory Council. 
Æ 
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