To impose limitations on investment and certain operations by foreign entities in the United States.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reciprocity and Fairness in Foreign 
Investment Act''.

SEC. 2. LIMITATIONS ON INVESTMENT AND CERTAIN OPERATIONS BY FOREIGN 
              ENTITIES.

    (a) Limitations.--
            (1) On government-owned enterprises.--A foreign person that 
        is owned or controlled by the government of a foreign country 
        may--
                    (A) acquire or hold an equity interest, or other 
                evidence of ownership, in a corporation, partnership, 
                or other business entity, that is organized under the 
                laws of the United States, or
                    (B) acquire or hold any interest in real property 
                in the United States,
        only to the same extent as that foreign country allows United 
        States persons to acquire or hold (as the case may be) equity 
        interests or other evidences of ownership in comparable 
        business concerns organized under the laws of that foreign 
        country and to acquire or hold interests in comparable real 
        property in that foreign country.
            (2) Investment in and operation of critical 
        infrastructure.--A foreign person may acquire or hold a 
        property interest in, or control operations, management, or 
        security operations of, critical infrastructure in the United 
        States only to the same extent as the foreign country of which 
        that foreign person is a national allows United States persons 
        to acquire or hold equivalent property interests or other 
        evidences of ownership in, or to control operations, 
        management, or security operations of, comparable critical 
        infrastructure in that country.
    (b) Definitions.--In this section:
            (1) Critical infrastructure.--(A) The term ``critical 
        infrastructure'' means systems and assets, whether physical or 
        virtual, so vital to a country that the incapacity or 
        destruction of such systems and assets would have a 
        debilitating impact on the security, economic security, or 
        public health or safety, of that country. Such term includes--
                    (i) any airport, air navigation facility, or 
                facility that is part of an air traffic control system;
                    (ii) any bridge, any highway, and any railroad 
                tracks or facilities;
                    (iii) any port facilities;
                    (iv) any pipeline that transports oil, natural gas, 
                or gasoline or other petroleum products; and
                    (v) any electricity generation, transmission, or 
                distribution facilities.
            (B) The terms ``airport'', ``air navigation facility'', and 
        ``air traffic control system'' have the meanings given those 
        terms in section 40102 of title 49, United States Code.
            (2) Foreign person.--The term ``foreign person'' means a 
        national of a foreign country.
            (3) Government.--The term ``government of a foreign 
        country'' includes any agency or instrumentality of the 
        government of a foreign country.
            (4) National of a foreign country.--A person is a national 
        of a foreign country if that person is--
                    (A) a citizen of that country;
                    (B) an entity organized under the laws of that 
                country (whether the entity is controlled by private 
                persons or government entities);
                    (C) a unit of government of that country; or
                    (D) an entity that is organized under the laws of 
                the United States and is owned or controlled by 
                individuals, entities, or units of government described 
                in subparagraphs (A), (B), and (C), or any combination 
                thereof.
            (5) United states.--The term ``United States'' means the 
        several States, the District of Columbia, and any commonwealth, 
        territory, or possession of the United States.
            (6) United states person.--The term ``United States 
        person'' means--
                    (A) any United States citizen;
                    (B) any entity that is organized under the laws of 
                the United States and is owned or controlled by United 
                States citizens, by State or local governments, by the 
                United States, or by any combination thereof.

SEC. 3. ENFORCEMENT.

    (a) Secretary of the Treasury.--The Secretary of the Treasury, in 
consultation with the Secretary of Commerce, the Attorney General, and 
the heads of such other departments and agencies as the Secretary of 
the Treasury considers appropriate, shall issue such regulations as are 
necessary to carry out section 2.
    (b) Penalties.--
            (1) Civil penalties.--
                    (A) Penalty.--A civil penalty of not more than 
                $500,000 shall be imposed on any foreign person who 
                violates section 2 or any regulation issued under 
                subsection (a) of this section.
                    (B) Authority of the secretary of the treasury.--
                The Secretary of the Treasury has the authority to 
                impose civil penalties under subparagraph (A).
            (2) Other relief.--The Secretary of the Treasury may bring 
        an action in the appropriate United States district court to 
        enjoin any violation of section 2 or any regulation issued 
        under subsection (a) of this section. In addition, the Attorney 
        General, upon the request of the Secretary of the Treasury, 
        shall seek appropriate relief, including divestment relief, in 
        the district courts in order to enforce this Act.

SEC. 4. ANNUAL REPORT.

    The Secretary of the Treasury shall, not later than 120 days after 
the date of the enactment of this Act and annually thereafter, issue 
and make public a report on the laws of each foreign country regarding 
permissible investment by foreign persons in enterprises organized 
under the laws of the country and in real property in that country, and 
permissible control by foreign persons of operations and management of 
critical infrastructure in that country.

SEC. 5. EFFECTIVE DATE.

    (a) In General.--Subject to subsection (b), this Act shall take 
effect 180 days after the date of the enactment of this Act.
    (b) Existing Investments.--In order to allow foreign countries the 
flexibility to make the necessary changes to their laws so as to allow 
foreign investment and control affected by this Act, this Act and the 
regulations issued under this Act shall not apply to any equity 
interest, other property interest, or control of operations or 
management of infrastructure, acquired before the effective date of 
this Act until the date that is 1 year after such effective date.

Summary: Reciprocity and Fairness in Foreign Investment Act - Permits a foreign person owned or controlled by a foreign government to acquire ownership in either a business, or in real property in the United States, but only to the same extent as that foreign government allows U.S. persons to acquire ownership in comparable enterprises organized under the laws of that foreign country.

Subjects investment and operation of critical infrastructure in the United States by such a foreign person to the same reciprocity requirements.

Directs the Secretary of the Treasury to issue implementing regulations.

Establishes civil penalties for violations of this Act.