STOP CCP Act of 2022
Bill: S.4099 | Sponsor: Sen. Scott, Rick (R-FL)
Policy area: International Affairs

Summary:
Sanction Transactions Originating from Pernicious Chinese Companies and Policies Act of 2022 or the STOP CCP Act of 2022
This bill prohibits U.S. persons (generally individuals and entities subject to U.S. jurisdiction) from trading in the publicly traded securities of certain entities that operate or have operated in certain sectors in China, including the defense or surveillance technology sectors.

To prohibit securities investments that finance certain companies of 
    the People's Republic of China and to expand the Non-Specially 
Designated Nationals Chinese Military-Industrial Complex Companies List 
    of the Office of Foreign Assets Control, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Sanction Transactions Originating 
from Pernicious Chinese Companies and Policies Act of 2022'' or the 
``STOP CCP Act of 2022''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Chinese entity.--The term ``Chinese entity'' means an 
        entity organized under the laws of the People's Republic of 
        China or otherwise subject to the jurisdiction of the 
        Government of the People's Republic of China.
            (2) Publicly traded securities.--The term ``publicly traded 
        securities'' includes--
                    (A) any security (as defined in section 3(a) of the 
                Securities Exchange Act of 1934 (15 U.S.C. 78c(a))) 
                denominated in any currency that trades on a securities 
                exchange, or through the method of trading that is 
                commonly referred to as ``over-the-counter'', in any 
                jurisdiction; and
                    (B) any security that is derivative of or designed 
                to provide investment exposure to a security described 
                in subparagraph (A).
            (3) United states person.--The term ``United States 
        person'' means--
                    (A) an individual who is a United States citizen or 
                an alien lawfully admitted for permanent residence to 
                the United States;
                    (B) an entity organized under the laws of the 
                United States or any jurisdiction within the United 
                States, including a foreign branch of such an entity; 
                or
                    (C) any person in the United States.

SEC. 3. PROHIBITION ON SECURITIES INVESTMENTS THAT FINANCE CERTAIN 
              COMPANIES OF THE PEOPLE'S REPUBLIC OF CHINA.

    The following activities by a United States person are prohibited:
            (1) The purchase or sale of any publicly traded securities, 
        or any publicly traded securities that are derivative of such 
        securities or are designed to provide investment exposure to 
        such securities, issued by any person determined by the 
        Secretary of the Treasury, in consultation with the Secretary 
        of State, and, as the Secretary of the Treasury deems 
        appropriate, the Secretary of Defense--
                    (A) to operate or have operated in the defense and 
                related materiel sector or the surveillance technology 
                sector of the economy of the People's Republic of 
                China; or
                    (B) to own or control, or to be owned or controlled 
                by, directly or indirectly, a person described in 
                subparagraph (A).
            (2) The execution, support, or servicing of a purchase or 
        sale described in paragraph (1).
            (3) Any transaction that evades or avoids, has the purpose 
        of evading or avoiding, causes a violation of, or attempts to 
        violate the prohibition under paragraph (1).
            (4) Any conspiracy formed to violate the prohibition under 
        paragraph (1).

SEC. 4. EXPANSION OF NON-SPECIALLY DESIGNATED NATIONALS CHINESE 
              MILITARY-INDUSTRIAL COMPLEX COMPANIES LIST.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of the Treasury shall prescribe regulations to 
expand the Non-Specially Designated Nationals Chinese Military-
Industrial Complex Companies List (commonly referred to as the ``NS-
CMIC List'') of the Office of Foreign Assets Control to include--
            (1) any entity engaged in supporting the Chinese military-
        industrial complex;
            (2) any entity that is owned or controlled by an entity 
        described in paragraph (1);
            (3) any entity that is formed from a spin-off, merger or 
        acquisition, or sale of a business unit involving an entity 
        described in paragraph (1) or is otherwise a successor to such 
        an entity; and
            (4) any entity that provides financial services for an 
        entity described in paragraph (1), (2), or (3).

SEC. 5. CLOSING SANCTIONS LOOPHOLES.

    (a) In General.--If sanctions are imposed with respect to a Chinese 
entity under any statute or executive order described in subsection 
(b), sanctions shall be imposed with respect to the Chinese entity 
under each other applicable statute and executive order described in 
subsection (b) unless--
            (1) the President waives the imposition of such sanctions; 
        or
            (2) a waiver provided for under such other statute or 
        executive order applies.
    (b) Statutes and Executive Orders Described.--A statute or 
executive order described in this subsection is a statute or executive 
order that provides for the imposition of sanctions.
    (c) National Security Waiver.--
            (1) In general.--The President may waive the application of 
        any sanction imposed with respect to any person under 
        subsection (a) if the President determines and certifies to 
        Congress that such a waiver is important to the national 
        security interests of the United States.
            (2) Notification of and report to congress.--If the 
        President decides to exercise the waiver authority provided 
        under paragraph (1), the President shall, not less than 20 days 
        before the waiver takes effect, submit to Congress a report--
                    (A) notifying Congress of the decision to exercise 
                the waiver authority; and
                    (B) fully articulating the rationale and 
                circumstances that led to the decision.
    (d) Termination of Sanctions To Be Reported to Congress.--Not later 
than 20 days after the termination of any sanction under subsection 
(a), the President shall promptly submit to Congress a report on that 
termination and the reasons for the termination.
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