Title: EB–5 Reform and Integrity Act of 2019
Policy area: Immigration

Summary:
EB-5 Reform and Integrity Act of 2019
This bill reauthorizes the EB-5 Regional Center program through FY2024 and makes various changes to the program, such as imposing various oversight requirements. (EB-5 visas provide permanent resident status to qualified alien investors. A regional center allows EB-5 aliens to pool investments to meet various investment and job creation requirements.)
Oversight-related provisions include requiring each center to (1) notify the Department of Homeland Security (DHS) of proposed changes to the center's structure, (2) maintain certain records and make such records available to DHS for audits, (3) obtain approval for each particular investment offering, and (4) annually report to U.S. Citizenship and Immigration Services (USCIS).
The bill prohibits certain individuals and entities from involvement in a center, such as (1) a person who had committed a violation involving fraud in the previous 10 years, (2) a non-U.S. national not admitted for permanent residence, or (3) a foreign government official.
DHS shall deny petitions, such as a petition to certify a regional center or to classify an alien as an alien investor, if approval would threaten U.S. national interest.
The bill provides various enforcement authority to DHS and USCIS, including the ability to permanently bar an individual from participating in the regional center program.
The bill establishes the EB-5 Integrity Fund to fund program enforcement activities.
The bill contains various provisions related to EB-5 petitions, such as a provision authorizing DHS to extend an alien's conditional permanent residence status.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2540 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  1st Session
                                S. 2540

  To reauthorize the EB-5 Regional Center Program in order to prevent 
    fraud and promote and reform foreign capital investment and job 
                   creation in American communities.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 24, 2019

Mr. Grassley (for himself and Mr. Leahy) introduced the following bill; 
  which was read twice and referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
  To reauthorize the EB-5 Regional Center Program in order to prevent 
    fraud and promote and reform foreign capital investment and job 
                   creation in American communities.

    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 ``EB-5 Reform and Integrity Act of 
2019''.

SEC. 2. REAUTHORIZATION AND REFORM OF THE REGIONAL CENTER PROGRAM.

    (a) Repeal.--Section 610 of the Departments of Commerce, Justice, 
and State, the Judiciary, and Related Agencies Appropriations Act, 1993 
(8 U.S.C. 1153 note) is repealed.
    (b) Authorization.--Section 203(b)(5) of the Immigration and 
Nationality Act (8 U.S.C. 1153(b)(5)) is amended by adding at the end 
the following:
                    ``(E) Regional center program.--
                            ``(i) In general.--Visas under this 
                        paragraph shall be made available through 
                        September 30, 2024, to qualified immigrants 
                        (and the eligible spouses and children of such 
                        immigrants) pooling their investments with 1 or 
                        more qualified immigrants participating in a 
                        program implementing this paragraph that 
                        involves a regional center in the United 
                        States, which has been designated by the 
                        Secretary of Homeland Security on the basis of 
                        a proposal for the promotion of economic 
                        growth, including prospective job creation and 
                        increased domestic capital investment.
                            ``(ii) Processing.--In processing petitions 
                        under section 204(a)(1)(H) for classification 
                        under this paragraph, the Secretary of Homeland 
                        Security--
                                    ``(I) may process petitions in a 
                                manner and order established by the 
                                Secretary; and
                                    ``(II) shall deem such petitions to 
                                include records previously filed with 
                                the Secretary pursuant to subparagraph 
                                (F) if the alien petitioner certifies 
                                that such records are incorporated by 
                                reference into the alien's petition.
                            ``(iii) Establishment of a regional 
                        center.--A regional center shall operate within 
                        a defined and limited geographic area, which 
                        shall be described in the proposal and be 
                        consistent with the purpose of concentrating 
                        pooled investment within such area. The 
                        proposal to establish a regional center shall 
                        demonstrate that the pooled investment will 
                        have a significant economic impact on such 
                        geographic area, and shall include--
                                    ``(I) reasonable predictions, 
                                supported by economically and 
                                statistically valid and transparent 
                                forecasting tools, concerning the 
                                amount of investment that will be 
                                pooled, the kinds of commercial 
                                enterprises that will receive such 
                                investments, details of the jobs that 
                                will be created directly or indirectly 
                                as a result of such investments, and 
                                other positive economic effects such 
                                investments will have;
                                    ``(II) a description of the 
                                policies and procedures in place 
                                reasonably designed to monitor new 
                                commercial enterprises and any 
                                associated job-creating entity to seek 
                                to ensure compliance with--
                                            ``(aa) all applicable laws, 
                                        regulations, and Executive 
                                        orders of the United States, 
                                        including immigration laws and 
                                        securities laws; and
                                            ``(bb) all securities laws 
                                        of each State in which 
                                        securities offerings will be 
                                        conducted, investment advice 
                                        will be rendered, or the 
                                        offerors or offerees reside; 
                                        and
                                    ``(III) attestations and 
                                information confirming that all persons 
                                involved with the regional center meet 
                                the requirements under clauses (i) and 
                                (ii) of subparagraph (H).
                            ``(iv) Indirect job creation.--The 
                        Secretary of Homeland Security shall permit 
                        aliens seeking admission under this 
                        subparagraph to satisfy only up to 90 percent 
                        of the requirement under subparagraph (A)(ii) 
                        with jobs that are estimated to be created 
                        indirectly through investment under this 
                        paragraph in accordance with this subparagraph. 
                        An employee of the new commercial enterprise or 
                        job-creating entity may be considered to hold a 
                        job that has been directly created.
                            ``(v) Compliance.--
                                    ``(I) In general.--In determining 
                                compliance with subparagraph (A)(ii), 
                                the Secretary of Homeland Security 
                                shall permit aliens seeking admission 
                                under this subparagraph to rely on 
                                economically and statistically valid 
                                methodologies for determining the 
                                number of jobs created by the program, 
                                including--
                                            ``(aa) jobs estimated to 
                                        have been created directly, 
                                        which may be verified using 
                                        such methodologies, provided 
                                        that the Secretary may request 
                                        additional evidence to verify 
                                        that the directly created jobs 
                                        satisfy the requirements under 
                                        such subparagraph; and
                                            ``(bb) consistent with this 
                                        subparagraph, jobs estimated to 
                                        have been created indirectly 
                                        through capital expenditures, 
                                        revenues generated from 
                                        increased exports, improved 
                                        regional productivity, job 
                                        creation, and increased 
                                        domestic capital investment 
                                        resulting from the program.
                                    ``(II) Job and investment 
                                requirements.--
                                            ``(aa) Relocated jobs.--In 
                                        determining compliance with the 
                                        job creation requirement under 
                                        subparagraph (A)(ii), the 
                                        Secretary may include jobs 
                                        estimated to be created under a 
                                        methodology that attributes 
                                        jobs to prospective tenants 
                                        occupying commercial real 
                                        estate created or improved by 
                                        capital investments if the 
                                        number of such jobs estimated 
                                        to be created has been 
                                        determined by an economically 
                                        and statistically valid 
                                        methodology and such jobs are 
                                        not existing jobs that have 
                                        been relocated.
                                            ``(bb) Publicly available 
                                        bonds.--The Secretary shall 
                                        prescribe regulations to ensure 
                                        that alien investor capital may 
                                        not be utilized, by a new 
                                        commercial enterprise or 
                                        otherwise, to purchase 
                                        municipal bonds or any other 
                                        bonds, if such bonds are 
                                        available to the general 
                                        public, either as part of a 
                                        primary offering or from a 
                                        secondary market.
                            ``(vi) Amendments.--The Secretary of 
                        Homeland Security shall--
                                    ``(I) require a regional center--
                                            ``(aa) to provide advance 
                                        notice to the Secretary of 
                                        significant proposed changes to 
                                        its organizational structure, 
                                        ownership, or administration, 
                                        including the sale of such 
                                        center, or other arrangements 
                                        which would result in 
                                        individuals not previously 
                                        subject to the requirements 
                                        under subparagraph (H) becoming 
                                        involved with the regional 
                                        center, before any such 
                                        proposed changes may take 
                                        effect; or
                                            ``(bb) if exigent 
                                        circumstances are present, to 
                                        provide the notice described in 
                                        item (aa) to the Secretary not 
                                        later than 5 business days 
                                        after a change described in 
                                        such item;
                                    ``(II) approve any amendment 
                                referred to in subclause (I) only after 
                                the Secretary determines that the 
                                regional center would remain compliant 
                                with this subparagraph and subparagraph 
                                (H) after implementing the proposed 
                                changes; and
                                    ``(III) notwithstanding the 
                                pendency of a determination described 
                                in subclause (II) relating to an 
                                amendment of a business plan or 
                                petition, adjudicate business plans 
                                under subparagraph (F) and petitions 
                                under section 204(a)(1)(H).
                            ``(vii) Record keeping and audits.--
                                    ``(I) Record keeping.--Each 
                                regional center shall make and 
                                preserve, during the 5-year period 
                                beginning on the last day of the 
                                Federal fiscal year in which any 
                                transactions occurred, books, ledgers, 
                                records, and other documentation from 
                                the regional center, new commercial 
                                enterprise, or job-creating entity used 
                                to support--
                                            ``(aa) any claims, 
                                        evidence, or certifications 
                                        contained in the regional 
                                        center's annual statements 
                                        under subparagraph (G); and
                                            ``(bb) associated petitions 
                                        by aliens seeking 
                                        classification under this 
                                        section or removal of 
                                        conditions under section 216A.
                                    ``(II) Audits.--The Secretary shall 
                                audit each regional center not less 
                                frequently than once every 3 years. 
                                Each such audit shall include a review 
                                of any documentation required to be 
                                maintained under subclause (I) for the 
                                preceding 3 years and a review of the 
                                flow of alien investor capital into any 
                                capital investment project. To the 
                                extent multiple regional centers are 
                                located at a single site, the Secretary 
                                may audit multiple regional centers in 
                                a single site visit.
                                    ``(III) Termination.--The Secretary 
                                shall terminate the designation of a 
                                regional center that fails to consent 
                                to an audit under subclause (II) or 
                                deliberately attempts to impede such an 
                                audit.
                    ``(F) Business plans for regional center 
                investments.--
                            ``(i) Application for approval of an 
                        investment in a commercial enterprise.--A 
                        regional center shall file an application with 
                        the Secretary of Homeland Security for each 
                        particular investment offering through an 
                        associated new commercial enterprise before any 
                        alien files a petition for classification under 
                        this paragraph by reason of investment in that 
                        offering, which shall include--
                                    ``(I) a comprehensive business plan 
                                for a specific capital investment 
                                project;
                                    ``(II) a credible economic analysis 
                                regarding estimated job creation that 
                                is based upon economically and 
                                statistically valid and transparent 
                                methodologies;
                                    ``(III) any documents filed with 
                                the Securities and Exchange Commission 
                                under the Securities Act of 1933 (15 
                                U.S.C. 77a et seq.) or with the 
                                securities regulator of any State, as 
                                required by law;
                                    ``(IV) any investment and offering 
                                documents, including subscription, 
                                investment, partnership, and operating 
                                agreements, private placement 
                                memoranda, term sheets, biographies of 
                                management, officers, directors, and 
                                any person with similar 
                                responsibilities, the description of 
                                the business plan to be provided to 
                                potential alien investors, and 
                                marketing materials used, or drafts 
                                prepared for use, in connection with 
                                the offering, which shall contain 
                                references, as appropriate, to--
                                            ``(aa) any investment risks 
                                        associated with the new 
                                        commercial enterprise and the 
                                        job-creating entity;
                                            ``(bb) any conflicts of 
                                        interest that currently exist 
                                        or may arise among the regional 
                                        center, the new commercial 
                                        enterprise, the job-creating 
                                        entity, or the principals or 
                                        attorneys of such entities;
                                            ``(cc) any pending material 
                                        litigation or bankruptcy, or 
                                        adverse judgments or bankruptcy 
                                        orders issued during the most 
                                        recent 10-year period, in the 
                                        United States or in another 
                                        country, affecting the regional 
                                        center, the new commercial 
                                        enterprise, any associated job-
                                        creating entity, or any other 
                                        enterprise in which any 
                                        principal of any of the 
                                        aforementioned entities held 
                                        majority ownership at the time; 
                                        and
                                            ``(dd)(AA) any fees, 
                                        ongoing interest, or other 
                                        compensation paid, or to be 
                                        paid by the regional center, 
                                        the new commercial enterprise, 
                                        or any issuer of securities 
                                        intended to be offered to alien 
                                        investors, to agents, finders, 
                                        or broker dealers involved in 
                                        the offering of securities to 
                                        alien investors in connection 
                                        with the investment;
                                            ``(BB) a description of the 
                                        services performed, or that 
                                        will be performed, by such 
                                        person to entitle the person to 
                                        such fees, interest, or 
                                        compensation; and
                                            ``(CC) the name and contact 
                                        information of any such person, 
                                        if known at the time of filing;
                                    ``(V) a description of the policies 
                                and procedures, such as those related 
                                to internal and external due diligence, 
                                reasonably designed to cause the 
                                regional center and any issuer of 
                                securities intended to be offered to 
                                alien investors in connection with the 
                                relevant capital investment project, to 
                                comply, as applicable, with the 
                                securities laws of the United States 
                                and the laws of the applicable States 
                                in connection with the offer, purchase, 
                                or sale of its securities;
                                    ``(VI) a certification from the 
                                regional center, and any issuer of 
                                securities intended to be offered to 
                                alien investors in connection with the 
                                relevant capital investment project, 
                                that their respective agents and 
                                employees, and any parties associated 
                                with the regional center and such 
                                issuer of securities affiliated with 
                                the regional center are in compliance 
                                with the securities laws of the United 
                                States and the laws of the applicable 
                                States in connection with the offer, 
                                purchase, or sale of its securities, to 
                                the best of the certifier's knowledge, 
                                after a due diligence investigation; 
                                and
                                    ``(VII) documentation demonstrating 
                                that the regional center consulted with 
                                a local economic development agency or 
                                municipality regarding the capital 
                                investment project, which shall 
                                address--
                                            ``(aa) the number and type 
                                        of jobs anticipated to be 
                                        created; and
                                            ``(bb) whether the project 
                                        is consistent with the agency 
                                        or municipality's plan for 
                                        economic development in the 
                                        region.
                            ``(ii) Effect of approval of a business 
                        plan for an investment in a regional center's 
                        commercial enterprise.--The approval of an 
                        application under this subparagraph, including 
                        an approval before the date of the enactment of 
                        this subparagraph, shall be binding for 
                        purposes of the adjudication of subsequent 
                        petitions seeking classification under this 
                        paragraph by immigrants investing in the same 
                        offering described in such application, and of 
                        petitions by the same immigrants filed under 
                        section 216A unless--
                                    ``(I) the applicant engaged in 
                                fraud, misrepresentation, or criminal 
                                misuse;
                                    ``(II) such approval would threaten 
                                public safety or national security;
                                    ``(III) there has been a material 
                                change that affects the program 
                                eligibility of the approved economic 
                                model or terms of the investment 
                                offering;
                                    ``(IV) the discovery of other 
                                evidence affecting program eligibility 
                                was not disclosed by the applicant 
                                during the adjudication process; or
                                    ``(V) the previous adjudication 
                                involved a material mistake of law or 
                                fact.
                            ``(iii) Amendments.--
                                    ``(I) Approval.--The Secretary of 
                                Homeland Security may establish 
                                procedures by which a regional center 
                                may seek approval of an amendment to an 
                                approved application under this 
                                subparagraph that reflects changes 
                                specified by the Secretary to any 
                                information, documents, or other 
                                aspects of the investment offering 
                                described in such approved application 
                                not later than 30 days after any such 
                                changes.
                                    ``(II) Incorporation.--Upon the 
                                approval of a timely filed amendment to 
                                an approved application, any changes 
                                reflected in such amendment may be 
                                incorporated into and considered in 
                                determining program eligibility through 
                                adjudication of--
                                            ``(aa) pending petitions 
                                        from immigrants investing in 
                                        the offering described in the 
                                        approved application who are 
                                        seeking classification under 
                                        this paragraph; and
                                            ``(bb) petitions by 
                                        immigrants described in item 
                                        (aa) that are filed under 
                                        section 216A.
                            ``(iv) Site visits.--The Secretary of 
                        Homeland Security, not earlier than 24 hours 
                        after providing notice of each site visit, 
                        shall--
                                    ``(I) perform site visits to 
                                regional centers; and
                                    ``(II) perform at least 1 site 
                                visit to, as applicable, each new 
                                commercial enterprise or job-creating 
                                entity, or the business locations where 
                                any jobs that are claimed as being 
                                created, which--
                                            ``(aa) shall include a 
                                        review for evidence of direct 
                                        job creation in accordance with 
                                        subparagraph (E)(v)(I); and
                                            ``(bb) may occur at any 
                                        time during the period between 
                                        the filing of an application 
                                        for approval of an investment 
                                        in a new commercial enterprise 
                                        under this subparagraph and the 
                                        adjudication of the first 
                                        petition for removal of 
                                        conditions on lawful permanent 
                                        resident status under section 
                                        216A(c) filed by an alien 
                                        investing in such investment.
                    ``(G) Regional center annual statements.--
                            ``(i) In general.--Each regional center 
                        designated under subparagraph (E) shall 
                        annually submit a statement to the Director of 
                        U.S. Citizenship and Immigration Services 
                        (referred to in this subparagraph as the 
                        `Director'), in a manner prescribed by the 
                        Secretary of Homeland Security, which shall 
                        include--
                                    ``(I) a certification stating that, 
                                to the best of the certifier's 
                                knowledge, after a due diligence 
                                investigation, the regional center is 
                                in compliance with clauses (i) and (ii) 
                                of subparagraph (H);
                                    ``(II) a certification described in 
                                subparagraph (I)(ii)(II);
                                    ``(III) a certification stating 
                                that, to the best of the certifier's 
                                knowledge, after a due diligence 
                                investigation, the regional center is 
                                in compliance with subparagraph 
                                (K)(iii);
                                    ``(IV) a description of any pending 
                                material litigation or bankruptcy 
                                proceedings, or litigation or 
                                bankruptcy proceedings resolved during 
                                the preceding fiscal year, involving 
                                the regional center, the new commercial 
                                enterprise, or any affiliated job-
                                creating entity;
                                    ``(V) an accounting of all foreign 
                                investor capital invested in the 
                                regional center, new commercial 
                                enterprise, or job-creating entity;
                                    ``(VI) for each new commercial 
                                enterprise associated with the regional 
                                center--
                                            ``(aa) an accounting of the 
                                        aggregate capital invested in 
                                        the new commercial enterprise 
                                        and job-creating entity by 
                                        alien investors under this 
                                        paragraph for each capital 
                                        investment project being 
                                        undertaken by the new 
                                        commercial enterprise;
                                            ``(bb) a description of how 
                                        the capital described in item 
                                        (aa) is being used to execute 
                                        each capital investment project 
                                        in the filed business plan or 
                                        plans;
                                            ``(cc) evidence that 100 
                                        percent of the capital 
                                        described in item (aa) has been 
                                        committed to each capital 
                                        investment project;
                                            ``(dd) detailed evidence of 
                                        the progress made toward the 
                                        completion of each capital 
                                        investment project;
                                            ``(ee) an accounting of the 
                                        aggregate direct jobs created 
                                        or preserved;
                                            ``(ff) to the best of the 
                                        regional center's knowledge, 
                                        for all fees, including 
                                        administrative fees, loan 
                                        monitoring fees, loan 
                                        management fees, commissions 
                                        and similar transaction-based 
                                        compensation, collected from 
                                        alien investors by the regional 
                                        center, the new commercial 
                                        enterprise, any affiliated job-
                                        creating entity, any affiliated 
                                        issuer of securities intended 
                                        to be offered to alien 
                                        investors, or any promoter, 
                                        finder, broker-dealer, or other 
                                        entity engaged by any of the 
                                        aforementioned entities to 
                                        locate individual investors--

                                                    ``(AA) a 
                                                description of all fees 
                                                collected;

                                                    ``(BB) an 
                                                accounting of the 
                                                entities that received 
                                                such fees; and

                                                    ``(CC) the purpose 
                                                for which such fees 
                                                were collected;

                                            ``(gg) any documentation 
                                        referred to in subparagraph 
                                        (F)(i)(IV) if there has been a 
                                        material change during the 
                                        preceding fiscal year; and
                                            ``(hh) a certification by 
                                        the regional center that the 
                                        information provided under 
                                        items (aa) through (gg) is 
                                        accurate, to the best of the 
                                        certifier's knowledge, after a 
                                        due diligence investigation; 
                                        and
                                    ``(VII) a description of the 
                                regional center's policies and 
                                procedures that are designed to enable 
                                the regional center to comply with 
                                applicable Federal labor laws.
                            ``(ii) Amendment of annual statements.--The 
                        Director--
                                    ``(I) shall require the regional 
                                center to amend or supplement an annual 
                                statement required under clause (i) if 
                                the Director determines that such 
                                statement is deficient; and
                                    ``(II) may require the regional 
                                center to amend or supplement such 
                                annual statement if the Director 
                                determines that such an amendment or 
                                supplement is appropriate.
                            ``(iii) Sanctions.--
                                    ``(I) Effect of violation.--The 
                                Director shall sanction any regional 
                                center entity in accordance with 
                                subclause (II) if the regional center 
                                fails to submit an annual statement or 
                                if the Director determines that the 
                                regional center--
                                            ``(aa) knowingly submitted 
                                        or caused to be submitted a 
                                        statement, certification, or 
                                        any information submitted 
                                        pursuant to this subparagraph 
                                        that contained an untrue 
                                        statement of material fact; or
                                            ``(bb) is conducting itself 
                                        in a manner inconsistent with 
                                        its designation under 
                                        subparagraph (E), including any 
                                        willful, undisclosed, and 
                                        material deviation by new 
                                        commercial enterprises from any 
                                        filed business plan for such 
                                        new commercial enterprises.
                                    ``(II) Authorized sanctions.--The 
                                Director shall establish a graduated 
                                set of sanctions based on the severity 
                                of the violations referred to in 
                                subclause (I), including--
                                            ``(aa) fines equal to not 
                                        more than 10 percent of the 
                                        total capital invested by alien 
                                        investors in the regional 
                                        center's new commercial 
                                        enterprises or associated job-
                                        creating entities, the payment 
                                        of which shall not in any 
                                        circumstance utilize any of 
                                        such alien investors' capital 
                                        investments, and which shall be 
                                        deposited into the EB-5 
                                        Integrity Fund established 
                                        under subparagraph (J);
                                            ``(bb) temporary suspension 
                                        from participation in the 
                                        program described in 
                                        subparagraph (E), which may be 
                                        lifted by the Director if the 
                                        individual or entity cures the 
                                        alleged violation after being 
                                        provided such an opportunity by 
                                        the Director;
                                            ``(cc) permanent bar from 
                                        participation in the program 
                                        described in subparagraph (E) 
                                        for 1 or more individuals or 
                                        business entities associated 
                                        with the regional center, new 
                                        commercial enterprise, or job-
                                        creating entity; and
                                            ``(dd) termination of 
                                        regional center designation.
                            ``(iv) Availability of annual statements to 
                        investors.--Not later than 30 days after a 
                        request from an alien investor, a regional 
                        center shall make available to such alien 
                        investor--
                                    ``(I) a copy of the filed annual 
                                statement; and
                                    ``(II) any amendments filed to such 
                                statement.
                    ``(H) Bona fides of persons involved with regional 
                center program.--
                            ``(i) In general.--No person shall be 
                        permitted to be involved with any regional 
                        center, new commercial enterprise, or job-
                        creating entity if--
                                    ``(I) the person has been found to 
                                have committed--
                                            ``(aa) a criminal or civil 
                                        violation involving fraud or 
                                        deceit within the previous 10 
                                        years;
                                            ``(bb) a civil violation 
                                        involving fraud or deceit that 
                                        resulted in a liability in 
                                        excess of $1,000,000; or
                                            ``(cc) a crime for which 
                                        the person was convicted and 
                                        sentenced to a term of 
                                        imprisonment of more than 1 
                                        year;
                                    ``(II) the person is subject to a 
                                final order, for the duration of any 
                                penalty imposed by such order, of a 
                                State securities commission (or an 
                                agency or officer of a State performing 
                                similar functions), a State authority 
                                that supervises or examines banks, 
                                savings associations, or credit unions, 
                                a State insurance commission (or an 
                                agency or officer of a State performing 
                                similar functions), an appropriate 
                                Federal banking agency, the Commodity 
                                Futures Trading Commission, the 
                                Securities and Exchange Commission, a 
                                financial self-regulatory organization 
                                recognized by the Securities and 
                                Exchange Commission, or the National 
                                Credit Union Administration, which is 
                                based on a violation of any law or 
                                regulation that--
                                            ``(aa) prohibits 
                                        fraudulent, manipulative, or 
                                        deceptive conduct; or
                                            ``(bb) bars the person 
                                        from--

                                                    ``(AA) association 
                                                with an entity 
                                                regulated by such 
                                                commission, authority, 
                                                agency, or officer;

                                                    ``(BB) appearing 
                                                before such commission, 
                                                authority, agency, or 
                                                officer;

                                                    ``(CC) engaging in 
                                                the business of 
                                                securities, insurance, 
                                                or banking; or

                                                    ``(DD) engaging in 
                                                savings association or 
                                                credit union 
                                                activities;

                                    ``(III) the Secretary determines 
                                that the person is engaged in, has ever 
                                been engaged in, or seeks to engage 
                                in--
                                            ``(aa) any illicit 
                                        trafficking in any controlled 
                                        substance or in any listed 
                                        chemical (as defined in section 
                                        102 of the Controlled 
                                        Substances Act);
                                            ``(bb) any activity 
                                        relating to espionage, 
                                        sabotage, or theft of 
                                        intellectual property;
                                            ``(cc) any activity related 
                                        to money laundering (as 
                                        described in section 1956 or 
                                        1957 of title 18, United States 
                                        Code);
                                            ``(dd) any terrorist 
                                        activity (as defined in section 
                                        212(a)(3)(B));
                                            ``(ee) any activity 
                                        constituting or facilitating 
                                        human trafficking or a human 
                                        rights offense;
                                            ``(ff) any activity 
                                        described in section 
                                        212(a)(3)(E); or
                                            ``(gg) the violation of any 
                                        statute, regulation, or 
                                        Executive order regarding 
                                        foreign financial transactions 
                                        or foreign asset control; or
                                    ``(IV) the person--
                                            ``(aa) is, or during the 
                                        preceding 10 years has been, 
                                        included on the Department of 
                                        Justice's List of Currently 
                                        Disciplined Practitioners; or
                                            ``(bb) during the preceding 
                                        10 years, has received a 
                                        reprimand or has otherwise been 
                                        publicly disciplined for 
                                        conduct related to fraud or 
                                        deceit by a State bar 
                                        association of which the person 
                                        is or was a member.
                            ``(ii) Foreign involvement in regional 
                        center program.--
                                    ``(I) Lawful status required.--A 
                                person may not be involved with a 
                                regional center unless the person is a 
                                national of the United States or an 
                                individual who has been lawfully 
                                admitted for permanent residence (as 
                                such terms are defined in paragraphs 
                                (20) and (22) of section 101(a)).
                                    ``(II) Foreign governments.--No 
                                agency, official, or other similar 
                                entity or representative of a foreign 
                                government entity may provide capital 
                                to, or be directly or indirectly 
                                involved with the ownership or 
                                administration of, a regional center, a 
                                new commercial enterprise, or a job-
                                creating entity, except that a foreign 
                                or domestic investment fund or other 
                                investment vehicle that is wholly or 
                                partially owned, directly or 
                                indirectly, by a bona fide foreign 
                                sovereign wealth fund or a foreign 
                                state-owned enterprise otherwise 
                                permitted to do business in the United 
                                States may be involved with the 
                                ownership, but not the administration, 
                                of a job-creating entity that is not an 
                                affiliated job-creating entity.
                                    ``(III) Rulemaking.--Not later than 
                                180 days after the date of the 
                                enactment of the EB-5 Reform and 
                                Integrity Act of 2019, the Secretary 
                                shall issue regulations implementing 
                                subparagraphs (I) and (II).
                            ``(iii) Information required.--
                                    ``(I) In general.--The Secretary of 
                                Homeland Security shall require such 
                                attestations and information, including 
                                the submission of fingerprints or other 
                                biometrics to the Federal Bureau of 
                                Investigation, and shall perform such 
                                criminal record checks and other 
                                background and database checks with 
                                respect to a regional center, a new 
                                commercial enterprise, and any 
                                affiliated job-creating entity, and 
                                persons involved with such entities (as 
                                described in clause (v)), to determine 
                                whether such entities are in compliance 
                                with clauses (i) and (ii).
                                    ``(II) Timing.--The Secretary may--
                                            ``(aa) require the 
                                        information and attestations 
                                        described in subclause (I) from 
                                        the entities referred to in 
                                        subclause (I), and any person 
                                        involved with such entities, at 
                                        any time on or after the date 
                                        of the enactment of the EB-5 
                                        Reform and Integrity Act of 
                                        2019; and
                                            ``(bb) perform such checks 
                                        with respect to any job-
                                        creating entity and persons 
                                        involved with such entity.
                            ``(iv) Termination.--
                                    ``(I) In general.--The Secretary 
                                shall suspend or terminate the 
                                designation of any regional center, or 
                                the participation under the program of 
                                any new commercial enterprise or job-
                                creating entity under this paragraph if 
                                the Secretary determines that such 
                                entity--
                                            ``(aa) knowingly involved a 
                                        person with such entity in 
                                        violation of clause (i) or 
                                        (ii);
                                            ``(bb) failed to provide an 
                                        attestation or information 
                                        requested by the Secretary; or
                                            ``(cc) knowingly provided 
                                        any false attestation or 
                                        information under clause (iii).
                                    ``(II) Information.--
                                            ``(aa) Notification.--The 
                                        Secretary, after performing the 
                                        criminal record checks and 
                                        other background checks 
                                        described in clause (iii), 
                                        shall notify a regional center, 
                                        new commercial enterprise, or 
                                        job-creating entity whether any 
                                        person involved with such 
                                        entities is not in compliance 
                                        with clause (i) or (ii).
                                            ``(bb) Effect of failure to 
                                        respond.--If the regional 
                                        center, new commercial 
                                        enterprise, or job-creating 
                                        entity fails to discontinue the 
                                        prohibited person's involvement 
                                        with the regional center, new 
                                        commercial enterprise, or job-
                                        creating entity, as applicable, 
                                        within 30 days after receiving 
                                        such notification, such entity 
                                        shall be deemed to have 
                                        knowledge under subclause 
                                        (I)(aa) that the involvement of 
                                        such person with the entity is 
                                        in violation of clause (i) or 
                                        (ii).
                            ``(v) Persons involved with a regional 
                        center, new commercial enterprise, or job-
                        creating entity.--For the purposes of this 
                        paragraph, unless otherwise determined by the 
                        Secretary of Homeland Security, a person is 
                        involved with a regional center, a new 
                        commercial enterprise, any affiliated job-
                        creating entity, or another job-creating 
                        entity, as applicable, if the person is, 
                        directly or indirectly, an owner or in a 
                        position of substantive authority to make 
                        operational or managerial decisions over 
                        pooling, securitization, investment, release, 
                        acceptance, or control or use of any funding 
                        that was procured under the program described 
                        in subparagraph (E). An individual may be in a 
                        position of substantive authority if the person 
                        serves as a principal, a representative, an 
                        administrator, an owner, an officer, a board 
                        member, a manager, an executive, a general 
                        partner, a fiduciary, an agent, or in a similar 
                        position at the regional center, new commercial 
                        enterprise, or job-creating entity, 
                        respectively.
                    ``(I) Compliance with securities laws.--
                            ``(i) Jurisdiction.--
                                    ``(I) In general.--The United 
                                States has jurisdiction, including 
                                subject matter jurisdiction, over the 
                                purchase or sale of any security 
                                offered or sold, or any investment 
                                advice provided, by any regional center 
                                or any party associated with a regional 
                                center for purposes of the securities 
                                laws.
                                    ``(II) Compliance with regulation 
                                s.--For purposes of section 5 of the 
                                Securities Act of 1933 (15 U.S.C. 77e), 
                                a regional center or any party 
                                associated with a regional center is 
                                not precluded from offering or selling 
                                a security pursuant to Regulation S (17 
                                C.F.R. 230.901 et seq.) to the extent 
                                that such offering or selling otherwise 
                                complies with that regulation.
                                    ``(III) Savings provision.--
                                Subclause I is not intended to modify 
                                any existing rules or regulations of 
                                the Securities and Exchange Commission 
                                related to the application of section 
                                15(a) of the Securities and Exchange 
                                Act of 1934 (15 U.S.C. 78o(a)) to 
                                foreign brokers or dealers.
                            ``(ii) Regional center certifications 
                        required.--
                                    ``(I) Initial certification.--The 
                                Secretary of Homeland Security may not 
                                approve an application for regional 
                                center designation or regional center 
                                amendment unless the regional center 
                                certifies that, to the best of the 
                                certifier's knowledge, after a due 
                                diligence investigation, the regional 
                                center is in compliance with and has 
                                policies and procedures (such as those 
                                related to internal and external due 
                                diligence) reasonably designed to 
                                confirm, as applicable, that all 
                                parties associated with the regional 
                                center are and will remain in 
                                compliance with the securities laws of 
                                the United States and of any State in 
                                which--
                                            ``(aa) the offer, purchase, 
                                        or sale of securities was 
                                        conducted;
                                            ``(bb) the issuer of 
                                        securities was located; or
                                            ``(cc) the investment 
                                        advice was provided by the 
                                        regional center or parties 
                                        associated with the regional 
                                        center.
                                    ``(II) Reissue.--A regional center 
                                shall annually reissue a certification 
                                described in subclause (I), in 
                                accordance with subparagraph (G), to 
                                certify compliance with clause (iii) by 
                                stating that--
                                            ``(aa) the certifier is in 
                                        a position to have knowledge of 
                                        the offers, purchases, and 
                                        sales of securities or the 
                                        provision of investment advice 
                                        by parties associated with the 
                                        regional center;
                                            ``(bb) to the best of the 
                                        certifier's knowledge, after a 
                                        due diligence investigation, 
                                        all such offers, purchases, and 
                                        sales of securities or the 
                                        provision of investment advice 
                                        complied with the securities 
                                        laws of the United States and 
                                        the securities laws of any 
                                        State in which--

                                                    ``(AA) the offer, 
                                                purchase, or sale of 
                                                securities was 
                                                conducted;

                                                    ``(BB) the issuer 
                                                of securities was 
                                                located; or

                                                    ``(CC) the 
                                                investment advice was 
                                                provided; and

                                            ``(cc) records, data, and 
                                        information related to such 
                                        offers, purchases, and sales 
                                        have been maintained.
                                    ``(III) Effect of noncompliance.--
                                If a regional center, through its due 
                                diligence, discovered during the 
                                previous fiscal year that the regional 
                                center or any party associated with the 
                                regional center was not in compliance 
                                with the securities laws of the United 
                                States or the securities laws of any 
                                State in which the securities 
                                activities were conducted by any party 
                                associated with the regional center, 
                                the certifier shall--
                                            ``(aa) describe the 
                                        activities that led to 
                                        noncompliance;
                                            ``(bb) describe the actions 
                                        taken to remedy the 
                                        noncompliance; and
                                            ``(cc) certify that the 
                                        regional center and all parties 
                                        associated with the regional 
                                        center are currently in 
                                        compliance, to the best of the 
                                        certifier's knowledge, after a 
                                        due diligence investigation.
                            ``(iii) Oversight required.--Each regional 
                        center shall--
                                    ``(I) monitor and supervise all 
                                offers, purchases, and sales of, and 
                                investment advice relating to, 
                                securities made by parties associated 
                                with the regional center to confirm 
                                compliance with the securities laws of 
                                the United States;
                                    ``(II) maintain records, data, and 
                                information relating to all such 
                                offers, purchases, sales, and 
                                investment advice during the 5-year 
                                period beginning on the date of their 
                                creation; and
                                    ``(III) make the records, data, and 
                                information described in subclause (II) 
                                available to the Secretary or to the 
                                Securities and Exchange Commission upon 
                                request.
                            ``(iv) Suspension or termination.--In 
                        addition to any other authority provided to the 
                        Secretary under this paragraph, the Secretary, 
                        in the Secretary's discretion, may suspend or 
                        terminate the designation of any regional 
                        center or impose other sanctions against the 
                        regional center if the regional center, or any 
                        parties associated with the regional center 
                        that the regional center knew or reasonably 
                        should have known--
                                    ``(I) are permanently or 
                                temporarily enjoined by order, 
                                judgment, or decree of any court of 
                                competent jurisdiction in connection 
                                with the offer, purchase, or sale of a 
                                security or the provision of investment 
                                advice;
                                    ``(II) are subject to any final 
                                order of the Securities and Exchange 
                                Commission or a State securities 
                                regulator that--
                                            ``(aa) bars such person 
                                        from association with an entity 
                                        regulated by the Securities and 
                                        Exchange Commission or a State 
                                        securities regulator; or
                                            ``(bb) constitutes a final 
                                        order based on a finding of an 
                                        intentional violation or a 
                                        violation related to fraud or 
                                        deceit in connection with the 
                                        offer, purchase, or sale of, or 
                                        investment advice relating to, 
                                        a security; or
                                    ``(III) submitted, or caused to be 
                                submitted, a certification described in 
                                clause (ii) that contained an untrue 
                                statement of a material fact or omitted 
                                to state a material fact necessary in 
                                order to make the statements made, in 
                                light of the circumstances under which 
                                they were made, not misleading.
                            ``(v) Defined term.--In this subparagraph, 
                        the term `parties associated with a regional 
                        center' means--
                                    ``(I) the regional center;
                                    ``(II) any new commercial 
                                enterprise or affiliated job-creating 
                                entity or issuer of securities 
                                associated with the regional center;
                                    ``(III) the regional center's and 
                                new commercial enterprise's owners, 
                                officers, directors, managers, 
                                partners, agents, employees, promoters 
                                and attorneys, or similar position, as 
                                determined by the Secretary; and
                                    ``(IV) any person under the control 
                                of the regional center, new commercial 
                                enterprise, or issuer of securities 
                                associated with the regional center who 
                                is responsible for the marketing, 
                                offering, or sale of any security 
                                offered in connection with the capital 
                                investment project.
                            ``(vi) Savings provision.--Nothing in this 
                        subparagraph may be construed to impair or 
                        limit the authority of the Securities and 
                        Exchange Commission under the Federal 
                        securities laws or any State securities 
                        regulator under State securities laws.
                    ``(J) EB-5 integrity fund.--
                            ``(i) Establishment.--There is established 
                        in the United States Treasury a special fund, 
                        which shall be known as the `EB-5 Integrity 
                        Fund' (referred to in this subparagraph as the 
                        `Fund'). Amounts deposited into the Fund shall 
                        be available to the Secretary of Homeland 
                        Security until expended for the purposes set 
                        forth in clause (iii).
                            ``(ii) Fees.--
                                    ``(I) Annual fee.--On October 1, 
                                2020, and on October 1 of each year 
                                thereafter, the Secretary of Homeland 
                                Security shall collect for the Fund an 
                                annual fee--
                                            ``(aa) except as provided 
                                        in item (bb), of $20,000 from 
                                        each regional center designated 
                                        under subparagraph (E); and
                                            ``(bb) of $10,000 from each 
                                        such regional center with 20 or 
                                        fewer total investors in the 
                                        preceding fiscal year in its 
                                        new commercial enterprises.
                                    ``(II) Petition fee.--Beginning on 
                                October 1, 2020, the Secretary shall 
                                collect a fee of $1,000 for the Fund 
                                with each petition filed under section 
                                204(a)(1)(H) for classification under 
                                subparagraph (E). The fee under this 
                                subclause is in addition to the fee 
                                that the Secretary is authorized to 
                                establish and collect for each petition 
                                to recover the costs of adjudication 
                                and naturalization services under 
                                section 286(m).
                                    ``(III) Increases.--The Secretary 
                                may increase the amounts under this 
                                clause by prescribing such regulations 
                                as may be necessary to ensure that 
                                amounts in the Fund are sufficient to 
                                carry out the purposes set forth in 
                                clause (iii).
                            ``(iii) Permissible uses of fund.--The 
                        Secretary shall--
                                    ``(I) use not less than \1/3\ of 
                                the amounts deposited into the Fund for 
                                investigations based outside of the 
                                United States, including--
                                            ``(aa) monitoring and 
                                        investigating program-related 
                                        events and promotional 
                                        activities; and
                                            ``(bb) ensuring an alien 
                                        investor's compliance with 
                                        subparagraph (L); and
                                    ``(II) use amounts deposited into 
                                the Fund--
                                            ``(aa) to detect and 
                                        investigate fraud or other 
                                        crimes;
                                            ``(bb) to determine whether 
                                        regional centers, new 
                                        commercial enterprises, job-
                                        creating entities, and alien 
                                        investors (and their alien 
                                        spouses and alien children) 
                                        comply with the immigration 
                                        laws;
                                            ``(cc) to conduct audits 
                                        and site visits; and
                                            ``(dd) as the Secretary 
                                        determines to be necessary, 
                                        including monitoring compliance 
                                        with the requirements under 
                                        section 7 of the EB-5 Reform 
                                        and Integrity Act of 2019.
                            ``(iv) Failure to pay fee.--The Secretary 
                        of Homeland Security shall--
                                    ``(I) impose a reasonable penalty, 
                                which shall be deposited into the Fund, 
                                if any regional center does not pay the 
                                fee required under clause (ii) within 
                                30 days after the date on which such 
                                fee is due; and
                                    ``(II) terminate the designation of 
                                any regional center that does not pay 
                                the fee required under clause (ii) 
                                within 90 days after the date on which 
                                such fee is due.
                            ``(v) Report.--The Secretary shall submit 
                        an annual report to the Committee on the 
                        Judiciary of the Senate and the Committee on 
                        the Judiciary of the House of Representatives 
                        that describes how amounts in the Fund were 
                        expended during the previous fiscal year.
                    ``(K) Direct and third-party promoters.--
                            ``(i) Rules and standards.--Direct and 
                        third-party promoters (including migration 
                        agents) of a regional center, any new 
                        commercial enterprise, an affiliated job-
                        creating entity, or an issuer of securities 
                        intended to be offered to alien investors in 
                        connection with a particular capital investment 
                        project shall comply with the rules and 
                        standards prescribed by the Secretary of 
                        Homeland Security and any applicable Federal or 
                        State securities laws, to oversee regional 
                        center promotion, including--
                                    ``(I) registration with U.S. 
                                Citizenship and Immigration Services, 
                                which--
                                            ``(aa) includes identifying 
                                        and contact information for 
                                        such promoter and confirmation 
                                        of the existence of the written 
                                        agreement required under clause 
                                        (iii); and
                                            ``(bb) may be made publicly 
                                        available at the discretion of 
                                        the Secretary;
                                    ``(II) certification by each 
                                promoter that such promoter is not 
                                ineligible under subparagraph (H)(i);
                                    ``(III) guidelines for representing 
                                the visa process to foreign investors; 
                                and
                                    ``(IV) guidelines describing 
                                permissible fee arrangements under 
                                applicable securities and immigration 
                                laws.
                            ``(ii) Effect of violation.--If the 
                        Secretary determines that a direct or third-
                        party promoter has violated clause (i), the 
                        Secretary shall suspend or permanently bar such 
                        individual from participation in the program 
                        described in subparagraph (E).
                            ``(iii) Compliance.--Each regional center 
                        shall maintain a written agreement outlining 
                        the rules and standards prescribed under clause 
                        (i) between--
                                    ``(I) the regional center, the new 
                                commercial enterprise, any affiliated 
                                job-creating entity, or any issuer of 
                                securities intended to be offered to 
                                alien investors in connection with a 
                                particular capital investment project; 
                                and
                                    ``(II) each direct or third-party 
                                promoter operating on behalf of such 
                                entity or issuer.
                            ``(iv) Disclosure.--Each petition filed 
                        under section 204(a)(1)(H) shall include a 
                        disclosure, signed by the investor, that 
                        reflects all fees, ongoing interest, and other 
                        compensation paid to any person that the 
                        regional center or new commercial enterprise 
                        knows has received, or will receive, in 
                        connection with the investment, including 
                        compensation to agents, finders, or broker 
                        dealers involved in the offering, to the extent 
                        not already specifically identified in the 
                        business plan filed under subparagraph (F).
                    ``(L) Source of funds.--
                            ``(i) In general.--An alien investor shall 
                        demonstrate that the capital required under 
                        subparagraph (A) and any funds used to pay 
                        administrative costs and fees associated with 
                        the alien's investment were obtained from a 
                        lawful source and through lawful means.
                            ``(ii) Required information.--The Secretary 
                        of Homeland Security shall require that an 
                        alien investor's petition under this paragraph 
                        contain, as applicable--
                                    ``(I) business and tax records, or 
                                similar records, including--
                                            ``(aa) foreign business 
                                        registration records;
                                            ``(bb) corporate or 
                                        partnership tax returns (or tax 
                                        returns of any other entity in 
                                        any form filed in any country 
                                        or subdivision of such 
                                        country), and personal tax 
                                        returns, including income, 
                                        franchise, property (whether 
                                        real, personal, or intangible), 
                                        or any other tax returns of any 
                                        kind, filed during the past 7 
                                        years (or another period to be 
                                        determined by the Secretary to 
                                        ensure that the investment is 
                                        obtained from a lawful source 
                                        of funds) with any taxing 
                                        jurisdiction within or outside 
                                        the United States by or on 
                                        behalf of the alien investor; 
                                        and
                                            ``(cc) any other evidence 
                                        identifying any other source of 
                                        capital or administrative fees;
                                    ``(II) evidence related to monetary 
                                judgments against the alien investor, 
                                including certified copies of any 
                                judgments, and evidence of all pending 
                                governmental civil or criminal actions, 
                                governmental administrative 
                                proceedings, and any private civil 
                                actions (pending or otherwise) 
                                involving possible monetary judgments 
                                against the alien investor from any 
                                court within or outside the United 
                                States; and
                                    ``(III) the identity of all persons 
                                who transfer into the United States, on 
                                behalf of the investor, any funds that 
                                are used to meet the capital 
                                requirement under subparagraph (A).
                    ``(M) Treatment of good faith investors following 
                program noncompliance.--
                            ``(i) Termination or debarment of eb-5 
                        entity.--Except as provided in clause (v), upon 
                        the termination or debarment, as applicable, 
                        from the program under this paragraph of a 
                        regional center, a new commercial enterprise, 
                        or a job-creating entity, an otherwise 
                        qualified petition under section 204(a)(1)(H) 
                        or the conditional permanent residence of an 
                        alien who has been admitted to the United 
                        States pursuant to section 216A(a)(1) based on 
                        an investment in a terminated regional center, 
                        new commercial enterprise, or job-creating 
                        entity shall remain valid or continue to be 
                        authorized, as applicable, consistent with this 
                        subparagraph.
                            ``(ii) New regional center or investment.--
                        The petition under section 204(a)(1)(H) of an 
                        alien described in clause (i) and the 
                        conditional permanent resident status of an 
                        alien described in clause (i) shall be 
                        terminated 180 days after the termination from 
                        the program under this paragraph of a regional 
                        center, a new commercial enterprise, or a job-
                        creating entity (but not sooner than 180 days 
                        after the date of the enactment of the EB-5 
                        Reform and Integrity Act of 2019) unless--
                                    ``(I) in the case of the 
                                termination of a regional center--
                                            ``(aa) the new commercial 
                                        enterprise associates with an 
                                        approved regional center, 
                                        regardless of the approved 
                                        geographical boundaries of such 
                                        regional center's designation; 
                                        or
                                            ``(bb) such alien makes a 
                                        qualifying investment in 
                                        another new commercial 
                                        enterprise; or
                                    ``(II) in the case of the debarment 
                                of a new commercial enterprise or job-
                                creating entity, such alien invests in 
                                another new commercial enterprise.
                            ``(iii) Removal of conditions.--Aliens 
                        described in subclauses (I)(bb) and (II) of 
                        clause (ii) shall be eligible to have their 
                        conditions removed pursuant to section 216A 
                        beginning on the date that is 2 years after the 
                        date of the subsequent investment.
                            ``(iv) In case of enforcement action.--
                        Except as provided in clause (v), if the 
                        Secretary of Homeland Security, the Attorney 
                        General, or the Securities and Exchange 
                        Commission files, in any United States District 
                        Court, a criminal or civil enforcement action 
                        containing allegations that a regional center, 
                        a new commercial enterprise, a job-creating 
                        entity, or any person involved with any of the 
                        foregoing entities, committed fraud which 
                        affected an alien's investment capital under 
                        subparagraph (A), or if a State authority or 
                        agency files such an action in a State court--
                                    ``(I) for all related petitions for 
                                classification under section 203(b)(5) 
                                and petitions for removal of conditions 
                                described in section 216A--
                                            ``(aa) the Secretary may 
                                        hold such petitions in abeyance 
                                        unless ordered to take action 
                                        by the United States District 
                                        Court overseeing such action, 
                                        if applicable; and
                                            ``(bb) the United States 
                                        District Court overseeing such 
                                        action, if applicable, may 
                                        enter an order extending any 
                                        deadlines applicable under this 
                                        paragraph and to prevent age-
                                        out of derivative 
                                        beneficiaries;
                                    ``(II) the alien investor may--
                                            ``(aa) petition to amend 
                                        the alien's underlying petition 
                                        for classification under 
                                        section 203(b)(5)(E) or the 
                                        petition for removal of 
                                        conditions described in section 
                                        216A(c), including amendments 
                                        to the business plan, without 
                                        such facts underlying the 
                                        amendment being deemed a 
                                        material change; and
                                            ``(bb) retain the immigrant 
                                        visa priority date related to 
                                        the original petition; and
                                    ``(III) any funds obtained or 
                                recovered by an alien investor, 
                                directly or indirectly, from claims 
                                against third parties, including 
                                insurance proceeds, or any additional 
                                investment capital provided by the 
                                alien after the enforcement action 
                                described in clause (iv) is filed, may 
                                be deemed to be such alien's investment 
                                capital for the purposes of 
                                subparagraph (A) if such investment 
                                otherwise complies with the 
                                requirements under this paragraph and 
                                under section 216A.
                            ``(v) Exception.--If the Secretary has 
                        reason to believe that an alien was a knowing 
                        participant in the conduct that led to the 
                        termination of a regional center, new 
                        commercial enterprise, or job-creating entity 
                        described in clause (i), or was a knowing 
                        participant in the alleged wrongdoing that led 
                        to an enforcement action described in clause 
                        (iv)--
                                    ``(I) the alien shall not be 
                                accorded any benefit under this 
                                subparagraph; and
                                    ``(II) the Secretary shall--
                                            ``(aa) notify the alien of 
                                        such belief; and
                                            ``(bb) subject to section 
                                        216A(b)(2), deny or initiate 
                                        proceedings to revoke the 
                                        approval of such alien's 
                                        petition, application, or 
                                        benefit (and that of any spouse 
                                        or child, if applicable) 
                                        described in this paragraph.
                    ``(N) Threats to the national interest.--
                            ``(i) Denial or revocation.--The Secretary 
                        of Homeland Security shall deny or revoke the 
                        approval of a petition, application, or benefit 
                        described in this paragraph, including the 
                        documents described in clause (ii), if the 
                        Secretary determines, in the Secretary's 
                        discretion, that the approval of such petition, 
                        application, or benefit is contrary to the 
                        national interest of the United States for 
                        reasons relating to threats to public safety or 
                        national security.
                            ``(ii) Documents.--The documents described 
                        in this clause are--
                                    ``(I) a certification, designation, 
                                or amendment to the designation of a 
                                regional center;
                                    ``(II) a petition seeking 
                                classification of an alien as an alien 
                                investor under this paragraph;
                                    ``(III) a petition to remove 
                                conditions under section 216A;
                                    ``(IV) an application for approval 
                                of a business plan in a new commercial 
                                enterprise under subparagraph (F); or
                                    ``(V) a temporary Green Card 
                                granting conditional permanent resident 
                                status that was issued to an alien 
                                pursuant to section 216A.
                            ``(iii) Debarment.--If a regional center, 
                        new commercial enterprise, or job-creating 
                        entity has its designation or participation in 
                        the program under this paragraph terminated for 
                        reasons relating to public safety or national 
                        security, any person associated with such 
                        regional center, new commercial enterprise, or 
                        job-creating entity, including an alien 
                        investor, shall be permanently barred from 
                        future participation in the program under this 
                        paragraph if the Secretary of Homeland 
                        Security, in the Secretary's discretion, 
                        determines, by a preponderance of the evidence, 
                        that such person was a knowing participant in 
                        the conduct that led to the termination.
                            ``(iv) Notice.--If the Secretary of 
                        Homeland Security determines that the approval 
                        of a petition, application, or benefit 
                        described in this paragraph should be denied or 
                        revoked pursuant to clause (i), the Secretary 
                        shall--
                                    ``(I) notify the relevant 
                                individual, regional center, or 
                                commercial entity of such 
                                determination; and
                                    ``(II) deny or revoke such 
                                petition, application, or benefit or 
                                terminate the permanent resident status 
                                of the alien (and the alien spouse and 
                                alien children of such immigrant), as 
                                of the date of such determination.
                            ``(v) Judicial review.--Notwithstanding any 
                        other provision of law (statutory or 
                        nonstatutory), including section 2241 of title 
                        28, United States Code, or any other habeas 
                        corpus provision, and sections 1361 and 1651 of 
                        such title, no court shall have jurisdiction to 
                        review a denial or revocation under this 
                        subparagraph. Nothing in this clause may be 
                        construed as precluding review of 
                        constitutional claims or questions of law 
                        raised upon a petition for review filed with an 
                        appropriate court of appeals in accordance with 
                        section 242.
                    ``(O) Fraud, misrepresentation, and criminal 
                misuse.--
                            ``(i) Denial or revocation.--The Secretary 
                        of Homeland Security shall deny or revoke the 
                        approval of a petition, application, or benefit 
                        described in this paragraph, including the 
                        documents described in subparagraph (N)(ii), if 
                        the Secretary determines, in the Secretary's 
                        discretion, that such petition, application, or 
                        benefit was predicated on or involved fraud, 
                        deceit, intentional material misrepresentation, 
                        or criminal misuse.
                            ``(ii) Debarment.--If a regional center, 
                        new commercial enterprise, or job-creating 
                        entity has its designation or participation in 
                        the program under this paragraph terminated for 
                        reasons relating to fraud, intentional material 
                        misrepresentation, or criminal misuse, any 
                        person associated with such regional center, 
                        new commercial enterprise, or job-creating 
                        entity, including an alien investor, shall be 
                        permanently barred from future participation in 
                        the program if the Secretary determines, in the 
                        Secretary's discretion, by a preponderance of 
                        the evidence, that such person was a knowing 
                        participant in the conduct that led to the 
                        termination.
                            ``(iii) Notice.--If the Secretary 
                        determines that the approval of a petition, 
                        application, or benefit described in this 
                        paragraph should be denied or revoked pursuant 
                        to clause (i), the Secretary shall--
                                    ``(I) notify the relevant 
                                individual, regional center, or 
                                commercial entity of such 
                                determination; and
                                    ``(II) deny or revoke such 
                                petition, application, or benefit or 
                                terminate the permanent resident status 
                                of the alien (and the alien spouse and 
                                alien children of such immigrant), in 
                                accordance with clause (i), as of the 
                                date of such determination.
                    ``(P) Administrative appellate review.--
                            ``(i) In general.--The Director of U.S. 
                        Citizenship and Immigration Services shall 
                        provide an opportunity for an administrative 
                        appellate review by the Administrative Appeals 
                        Office of U.S. Citizenship and Immigration 
                        Services of any determination made under this 
                        paragraph, including--
                                    ``(I) an application for regional 
                                center designation or regional center 
                                amendment;
                                    ``(II) an application for approval 
                                of a business plan filed under 
                                subparagraph (F);
                                    ``(III) a petition by an alien 
                                investor for status as an immigrant 
                                under this paragraph;
                                    ``(IV) the termination or 
                                suspension of any benefit accorded 
                                under this paragraph; and
                                    ``(V) any sanction imposed by the 
                                Secretary under this paragraph.
                            ``(ii) Judicial review.--Subject to section 
                        242(a)(2), and notwithstanding any other 
                        provision of law (statutory or nonstatutory), 
                        including section 2241 of title 28, United 
                        States Code, or any other habeas corpus 
                        provision, and sections 1361 and 1651 of such 
                        title, no court shall have jurisdiction to 
                        review a determination under this paragraph 
                        until the regional center, its associated 
                        entities, or the alien investor has exhausted 
                        all administrative appeals.
                    ``(Q) Fund administration.--
                            ``(i) In general.--Each new commercial 
                        enterprise shall deposit and maintain the 
                        capital investment of each alien investor in a 
                        separate account, including amounts held in 
                        escrow.
                            ``(ii) Use of funds.--Amounts in a separate 
                        account may only--
                                    ``(I) be transferred to another 
                                separate account or a job-creating 
                                entity;
                                    ``(II) otherwise be deployed into 
                                the capital investment project for 
                                which the funds were intended; or
                                    ``(III) be transferred to the alien 
                                investor who contributed the funds as a 
                                refund of that investor's capital 
                                investment, if otherwise permitted 
                                under this paragraph.
                            ``(iii) Deployment of funds into an 
                        affiliated job-creating entity.--If amounts are 
                        transferred to an affiliated job-creating 
                        entity pursuant to clause (ii)(I)--
                                    ``(I) the affiliated job-creating 
                                entity shall maintain such amounts in a 
                                separate account until they are 
                                deployed into the capital investment 
                                project for which they were intended; 
                                and
                                    ``(II) not later than 30 days after 
                                such amounts are deployed pursuant to 
                                subclause (I), the affiliated job-
                                creating entity shall provide written 
                                notice to the fund administrator 
                                retained pursuant to clause (iv) that a 
                                construction consultant or other 
                                individual authorized by the Secretary 
                                has verified that such amounts have 
                                been deployed into the project.
                            ``(iv) Fund administrator.--Except as 
                        provided in clause (v), the new commercial 
                        enterprise shall retain a fund administrator to 
                        fulfill the requirements under this 
                        subparagraph. The fund administrator shall--
                                    ``(I) be independent of, and not 
                                directly related to, the new commercial 
                                enterprise, the regional center 
                                associated with the new commercial 
                                enterprise, the job-creating entity, or 
                                any of the principals or managers of 
                                such entities;
                                    ``(II) be licensed, active, and in 
                                good standing as--
                                            ``(aa) a certified public 
                                        accountant;
                                            ``(bb) an attorney;
                                            ``(cc) a broker-dealer or 
                                        investment adviser registered 
                                        with the Securities and 
                                        Exchange Commission; or
                                            ``(dd) an individual or 
                                        company that otherwise meets 
                                        such requirements as may be 
                                        established by the Secretary;
                                    ``(III) monitor and track any 
                                transfer of amounts from the separate 
                                account;
                                    ``(IV) serve as a cosignatory on 
                                all separate accounts;
                                    ``(V) before any transfer of 
                                amounts from a separate account--
                                            ``(aa) verify that the 
                                        transfer complies with all 
                                        governing documents, including 
                                        organizational, operational, 
                                        and investment documents; and
                                            ``(bb) approve such 
                                        transfer with a written or 
                                        electronic signature; and
                                    ``(VI) periodically provide each 
                                alien investor with information about 
                                the activity of the account in which 
                                the investor's capital investment is 
                                held, including--
                                            ``(aa) the name and 
                                        location of the bank or 
                                        financial institution at which 
                                        the account is maintained;
                                            ``(bb) the history of the 
                                        account; and
                                            ``(cc) any additional 
                                        information required by the 
                                        Secretary.
                            ``(v) Waiver.--The Secretary of Homeland 
                        Security, after consultation with the 
                        Securities and Exchange Commission, may waive 
                        the requirements under clause (iv) for any new 
                        commercial enterprise or affiliated job-
                        creating entity that is controlled by or under 
                        common control of an investment adviser or 
                        broker-dealer that is registered with the 
                        Securities and Exchange Commission if the 
                        Secretary, in the Secretary's discretion, 
                        determines that the Securities and Exchange 
                        Commission provides comparable protections and 
                        transparency for alien investors as the 
                        protections and transparency provided under 
                        clause (iv).
                            ``(vi) Defined term.--In this subparagraph, 
                        the term `separate account' means an account 
                        that--
                                    ``(I) is maintained in the United 
                                States by a new commercial enterprise 
                                at a federally regulated bank or at 
                                another financial institution (as 
                                defined in section 20 of title 18, 
                                United States Code) in the United 
                                States;
                                    ``(II) is insured;
                                    ``(III) is maintained by the job-
                                creating entity, except as provided in 
                                paragraph (6); and
                                    ``(IV) contains only the pooled 
                                investment funds of alien investors in 
                                a new commercial enterprise with 
                                respect to a single capital investment 
                                project.''.

SEC. 3. CONDITIONAL PERMANENT RESIDENT STATUS FOR ALIEN INVESTORS, 
              SPOUSES, AND CHILDREN.

    (a) In General.--Section 216A of the Immigration and Nationality 
Act (8 U.S.C. 1186b) is amended--
            (1) by striking ``Attorney General'' each place such term 
        appears (except in subsection (d)(2)(C)) and inserting 
        ``Secretary of Homeland Security'';
            (2) by striking ``entrepreneur'' each place such term 
        appears and inserting ``investor'';
            (3) in subsection (a), by amending paragraph (1) to read as 
        follows:
            ``(1) Conditional basis for status.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), an alien investor, alien spouse, and 
                alien child shall be considered, at the time of 
                obtaining status as an alien lawfully admitted for 
                permanent residence, to have obtained such status on a 
                conditional basis subject to the provisions of this 
                section.
                    ``(B) Exception.--An alien investor (and his or her 
                alien spouse or alien child) whose petition under 
                subsection (f) is approved before the alien investor is 
                lawfully admitted for permanent residence shall be 
                granted the status of an alien lawfully admitted for 
                permanent residence without conditions.'';
            (4) in subsection (b)--
                    (A) in the subsection heading, by striking 
                ``Entrepreneurship'' and inserting ``Investment''; and
                    (B) by amending paragraph (1)(B) to read as 
                follows:
                    ``(B) the alien did not invest the requisite 
                capital; or'';
            (5) in subsection (c)--
                    (A) in the subsection heading, by striking ``of 
                Timely Petition and Interview'';
                    (B) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``In order'' and inserting 
                        ``Except as provided in paragraph (3)(D), in 
                        order'';
                            (ii) in subparagraph (A)--
                                    (I) by striking ``must'' and 
                                inserting ``shall''; and
                                    (II) by striking ``, and'' and 
                                inserting a semicolon;
                            (iii) in subparagraph (B)--
                                    (I) by striking ``must'' and 
                                inserting ``shall'';
                                    (II) by striking ``Service'' and 
                                inserting ``Department of Homeland 
                                Security''; and
                                    (III) by striking the period at the 
                                end and inserting ``; and''; and
                            (iv) by adding at the end the following:
                    ``(C) the Secretary shall have performed a site 
                visit to the relevant corporate office or business 
                location described in section 203(b)(5)(F)(iv).''; and
                    (C) in paragraph (3)--
                            (i) in subparagraph (A), in the 
                        undesignated matter following clause (ii), by 
                        striking ``the'' before ``such filing''; and
                            (ii) by amending subparagraph (B) to read 
                        as follows:
                    ``(B) Removal or extension of conditional basis.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), if the Secretary determines that 
                        the facts and information contained in a 
                        petition submitted under paragraph (1)(A) are 
                        true, including demonstrating that the alien 
                        complied with subsection (d)(1)(B)(i), the 
                        Secretary shall--
                                    ``(I) notify the alien involved of 
                                such determination; and
                                    ``(II) remove the conditional basis 
                                of the alien's status effective as of 
                                the second anniversary of the alien's 
                                lawful admission for permanent 
                                residence.
                            ``(ii) Exception.--If the petition 
                        demonstrates that the facts and information are 
                        true and that the alien is in compliance with 
                        subsection (d)(1)(B)(ii)--
                                    ``(I) the Secretary, in the 
                                Secretary's discretion, may provide a 
                                1-time, 1-year extension of the alien's 
                                conditional status; and
                                    ``(II)(aa) if the alien files a 
                                petition not later than 30 days after 
                                the third anniversary of the alien's 
                                lawful admission for permanent 
                                residence demonstrating that the alien 
                                complied with subsection (d)(1)(B)(i), 
                                the Secretary shall remove the 
                                conditional basis of the alien's status 
                                effective as of such third anniversary; 
                                or
                                    ``(bb) if the alien does not file 
                                the petition described in item (aa), 
                                the conditional status shall terminate 
                                at the end of such additional year.'';
            (6) in subsection (d)--
                    (A) in paragraph (1)--
                            (i) by amending subparagraph (A) to read as 
                        follows:
                    ``(A) invested the requisite capital;'';
                            (ii) by redesignating subparagraph (B) as 
                        subparagraph (C); and
                            (iii) by inserting after subparagraph (A) 
                        the following:
                    ``(B)(i) created the employment required under 
                section 203(b)(5)(A)(ii); or
                    ``(ii) is actively in the process of creating the 
                employment required under section 203(b)(5)(A)(ii) and 
                will create such employment before the third 
                anniversary of the alien's lawful admission for 
                permanent residence, provided that such alien's capital 
                will remain invested during such time; and'';
                    (B) in paragraph (2), by amending subparagraph (A) 
                to read as follows:
                    ``(A) Ninety-day period before second 
                anniversary.--
                            ``(i) In general.--Except as provided in 
                        clause (ii) and subparagraph (B), a petition 
                        under subsection (c)(1)(A) shall be filed 
                        during the 90-day period immediately preceding 
                        the second anniversary of the alien investor's 
                        lawful admission for permanent residence.
                            ``(ii) Exception.--Aliens described in 
                        subclauses (I)(bb) and (II) of section 
                        203(b)(5)(M)(ii) shall file a petition under 
                        subsection (c)(1)(A) during the 90-day period 
                        before the second anniversary of the subsequent 
                        investment.''; and
                    (C) in paragraph (3)--
                            (i) by striking ``The interview'' and 
                        inserting the following:
                    ``(A) In general.--The interview'';
                            (ii) by striking ``Service'' and inserting 
                        ``Department of Homeland Security''; and
                            (iii) by striking the last sentence and 
                        inserting the following:
                    ``(B) Waiver.--The Secretary of Homeland Security, 
                in the Secretary's discretion, may waive the deadline 
                for an interview under subsection (c)(1)(B) or the 
                requirement for such an interview according to criteria 
                developed by U.S. Citizenship and Immigration Services, 
                in consultation with its Fraud Detection and National 
                Security Directorate and U.S. Immigration and Customs 
                Enforcement, provided that such criteria do not include 
                a reduction of case processing times or the allocation 
                of adjudicatory resources. A waiver may not be granted 
                under this subparagraph if the alien to be 
                interviewed--
                            ``(i) invested in a regional center, new 
                        commercial enterprise, or job-creating entity 
                        that was sanctioned under section 203(b)(5); or
                            ``(ii) is in a class of aliens determined 
                        by the Secretary to be threats to public safety 
                        or national security.'';
            (7) by redesignating subsection (f) as subsection (g);
            (8) by inserting after subsection (e) the following:
    ``(f) Petition From Qualified Alien Investor.--An alien investor 
who invested the requisite capital and created the employment required 
under section 203(b)(5)(A)(ii) at least 24 months before admission, and 
is otherwise conforming to the requirements under section 203(b)(5), 
may file a petition, before admission for permanent residence, to be 
considered, at the time of obtaining status of an alien lawfully 
admitted for permanent residence, to obtain such status without 
conditions.''; and
            (9) in subsection (g)(3), as redesignated, by striking ``a 
        limited partnership'' and inserting ``any entity formed for the 
        purpose of doing for-profit business''.
    (b) Effective Dates.--
            (1) In general.--Except as provided under paragraph (2), 
        the amendments made by subsection (a) shall take effect on the 
        date of the enactment of this Act.
            (2) Exceptions.--
                    (A) Site visits.--The amendment made by subsection 
                (a)(5)(B)(iv) shall take effect not later than 2 years 
                after the date of the enactment of this Act.
                    (B) Petition beneficiaries.--The amendments made by 
                subsection (a) shall not apply to the beneficiary of a 
                petition that is filed under section 216A of the 
                Immigration and Nationality Act (8 U.S.C. 1186b) if the 
                underlying petition filed under section 203(b)(5) of 
                such Act (8 U.S.C. 1153(b)(5)) was approved before the 
                date of the enactment of this Act.

SEC. 4. EB-5 VISA REFORMS.

    (a) Definitions.--Section 203(b)(5)(D) of the Immigration and 
Nationality Act (8 U.S.C. 1153(b)(5)(D)) is amended to read as follows:
                    ``(D) Definitions.--In this paragraph:
                            ``(i) Affiliated job-creating entity.--The 
                        term `affiliated job-creating entity' means any 
                        job-creating entity that is controlled, 
                        managed, or owned by any of the people involved 
                        with the regional center or new commercial 
                        enterprise under section 203(b)(5)(H)(v).
                            ``(ii) Capital.--The term `capital'--
                                    ``(I) means cash and all real, 
                                personal, or mixed tangible assets 
                                owned and controlled by the alien 
                                investor, or held in trust for the 
                                benefit of the alien and to which the 
                                alien has unrestricted access;
                                    ``(II) shall be valued at fair 
                                market value in United States dollars, 
                                in accordance with Generally Accepted 
                                Accounting Principles or other standard 
                                accounting practice adopted by the 
                                Securities and Exchange Commission, at 
                                the time it is invested under this 
                                paragraph; and
                                    ``(III) shall not include assets 
                                acquired, directly or indirectly, by 
                                unlawful means, including any cash 
                                proceeds of indebtedness secured by 
                                such assets.
                            ``(iii) Certifier.--The term `certifier' 
                        means a person in a position of substantive 
                        authority for the management or operations of a 
                        regional center, new commercial enterprise, 
                        affiliated job-creating entity, or issuer of 
                        securities, such as a principal executive 
                        officer or principal financial officer, with 
                        knowledge of such entities' policies and 
                        procedures related to compliance with the 
                        requirements under this paragraph.
                            ``(iv) Job-creating entity.--The term `job-
                        creating entity' means any organization formed 
                        in the United States for the ongoing conduct of 
                        lawful business, including a partnership 
                        (whether limited or general), corporation, 
                        limited liability company, or other entity that 
                        receives, or is established to receive, capital 
                        investment from alien investors or a new 
                        commercial enterprise under the regional center 
                        program described in subparagraph (E) and which 
                        is responsible for creating jobs to satisfy the 
                        requirement under subparagraph (A)(ii).
                            ``(v) New commercial enterprise.--The term 
                        `new commercial enterprise' means any for-
                        profit organization formed in the United States 
                        for the ongoing conduct of lawful business, 
                        including a partnership (whether limited or 
                        general), corporation, limited liability 
                        company, or other entity that receives, or is 
                        established to receive, capital investment from 
                        investors under this paragraph.''.
    (b) Age Determination for Children of Alien Investors.--Section 
203(h) of the Immigration and Nationality Act (8 U.S.C. 1153(h)) is 
amended by adding at the end the following:
            ``(5) Age determination for children of alien investors.--
        An alien who has reached 21 years of age and has been admitted 
        under subsection (d) as a lawful permanent resident on a 
        conditional basis as the child of an alien lawfully admitted 
        for permanent residence under subsection (b)(5), whose lawful 
        permanent resident status on a conditional basis is terminated 
        under section 216A or subsection (b)(5)(M), shall continue to 
        be considered a child of the principal alien for the purpose of 
        a subsequent immigrant petition by such alien under subsection 
        (b)(5) if the alien remains unmarried and the subsequent 
        petition is filed by the principal alien not later than 1 year 
        after the termination of conditional lawful permanent resident 
        status. No alien shall be considered a child under this 
        paragraph with respect to more than 1 petition filed after the 
        alien reaches 21 years of age.''.
    (c) Enhanced Pay Scale for Certain Federal Employees Administering 
the Employment Creation Program.--The Secretary of Homeland Security 
may establish, fix the compensation of, and appoint individuals to 
designated critical, technical, and professional positions needed to 
administer sections 203(b)(5) and 216A of the Immigration and 
Nationality Act (8 U.S.C. 1153(b)(5) and 1186b).
    (d) Concurrent Filing of EB-5 Petitions and Applications for 
Adjustment of Status.--Section 245 of the Immigration and Nationality 
Act (8 U.S.C. 1255) is amended--
            (1) in subsection (k), in the matter preceding paragraph 
        (1), by striking ``or (3)'' and inserting ``(3), or (5)''; and
            (2) by adding at the end the following:
    ``(n) If the approval of a petition for classification under 
section 203(b)(5) would make a visa immediately available to the alien 
beneficiary, the alien beneficiary's application for adjustment of 
status under this section shall be considered to be properly filed 
whether the application is submitted concurrently with, or subsequent 
to, the visa petition.''.
    (e) Type of Investment.--Section 203(b)(5)(A) of the Immigration 
and Nationality Act (8 U.S.C. 1153(b)(5)(A)), as amended by subsection 
(a)(2), is further amended--
            (1) in clause (i), by striking ``(C), and'' and inserting 
        ``(C) and which is expected to remain invested for not less 
        than 2 years; and''; and
            (2) in clause (ii)--
                    (A) by striking ``and create'' and inserting ``by 
                creating''; and
                    (B) by inserting ``, United States nationals,'' 
                after ``citizens''.
    (f) Required Checks.--Section 203(b)(5) of the Immigration and 
Nationality Act, as amended by this section and section 2, is further 
amended by adding at the end the following:
                    ``(R) Required checks.--Any petition filed by an 
                alien under section 204(a)(1)(H) may not be approved 
                under this paragraph unless the Secretary of Homeland 
                Security has searched for the alien and any associated 
                employer of such alien on the Specially Designated 
                Nationals List of the Department of the Treasury Office 
                of Foreign Assets Control.''.
    (g) Conforming Changes.--Section 201(d)(1) of the Immigration and 
Nationality Act (8 U.S.C. 1151(d)(1)) is amended--
            (1) in subparagraph (A), by striking the comma and 
        inserting a semicolon;
            (2) in subparagraph (B), by striking the period at the end 
        and inserting ``; plus''; and
            (3) by adding at the end the following:
                    ``(C) the number of unused visas computed under 
                section 203(b)(5)(B)(i)(II) (which shall be allocated 
                pursuant to such section).''.
    (h) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 5. PROCEDURE FOR GRANTING IMMIGRANT STATUS.

    (a) Filing Order and Eligibility.--Section 204(a)(1)(H) of the 
Immigration and Nationality Act (8 U.S.C. 1154(a)(1)(H)) is amended to 
read as follows:
    ``(H)(i) Any alien seeking classification under section 203(b)(5) 
may file a petition for such classification with the Secretary of 
Homeland Security. An alien seeking to pool his or her investment with 
1 or more additional aliens seeking classification under section 
203(b)(5) shall file for such classification in accordance with section 
203(b)(5)(E). An alien petitioning for classification under section 
203(b)(5)(E) may file a petition with the Secretary after filing an 
application for approval of an investment under section 203(b)(5)(F).
    ``(ii) A petitioner described in clause (i) shall establish 
eligibility at the time he or she files a petition for classification 
under section 203(b)(5). A petitioner who was eligible for such 
classification at the time of such filing shall be deemed eligible for 
such classification at the time such petition is adjudicated.''.
    (b) Effective Dates.--
            (1) In general.--The amendment made by subsection (a) shall 
        take effect on the date of the enactment of this Act.
            (2) Applicability to petitions.--
                    (A) Filing.--Clause (i) of section 204(a)(1)(H) of 
                the Immigration and Nationality Act, as added by 
                subsection (a), shall apply to any petition for 
                classification pursuant to section 203(b)(5)(E) of such 
                Act (8 U.S.C. 1153(b)(5)(E)) that is filed with the 
                Secretary of Homeland Security on or after the date of 
                the enactment of this Act.
                    (B) Eligibility.--Clause (ii) of section 
                204(a)(1)(H) of such Act, as added by subsection (a), 
                shall apply to any petition for classification pursuant 
                to section 203(b)(5)(E) of such Act (8 U.S.C. 
                1153(b)(5)(E)) that is filed with the Secretary of 
                Homeland Security at any time.

SEC. 6. TIMELY PROCESSING.

    (a) Fee Study.--Not later than 1 year after the date of the 
enactment of this Act, the Director of U.S. Citizenship and Immigration 
Services shall complete a study of fees charged in the administration 
of the program described in sections 203(b)(5) and 216A of the 
Immigration and Nationality Act (8 U.S.C. 1153(b)(5) and 1186b).
    (b) Adjustment of Fees To Achieve Efficient Processing.--
Notwithstanding section 286(m) of the Immigration and Nationality Act 
(8 U.S.C. 1356(m)), and except as provided under subsection (c), the 
Director, not later than 60 days after the completion of the study 
under subsection (a), shall set fees for services provided under 
sections 203(b)(5) and 216A of such Act at a level sufficient to ensure 
the full recovery only of the costs of providing such services, 
including the cost of attaining the goal of completing adjudications, 
on average, not later than--
            (1) 180 days after receiving a proposal for the 
        establishment of a regional center described in section 
        203(b)(5)(E) of such Act;
            (2) 180 days after receiving an application for approval of 
        an investment in a new commercial enterprise described in 
        section 203(b)(5)(F) of such Act;
            (3) 90 days after receiving an application for approval of 
        an investment in a new commercial enterprise described in 
        section 203(b)(5)(F) of such Act that is located in a rural 
        area or a priority urban investment area (as such terms are 
        defined in section 203(b)(5)(D) of such Act, as amended by 
        section 4(c));
            (4) 240 days after receiving a petition from an alien 
        desiring to be classified under section 203(b)(5)(E);
            (5) 120 days after receiving a petition from an alien 
        desiring to be classified under section 203(b)(5)(E) with 
        respect to an investment in a rural area or a priority urban 
        investment area (as such terms are defined in section 
        203(b)(5)(D) of such Act); and
            (6) 240 days after receiving a petition from an alien for 
        removal of conditions described in section 216A(c).
    (c) Additional Fees.--Fees in excess of the fee levels described in 
subsection (b) may be charged only--
            (1) in an amount that is equal to the amount paid by all 
        other classes of fee-paying applicants for immigration-related 
        benefits, to contribute to the coverage or reduction of the 
        costs of processing or adjudicating classes of immigration 
        benefit applications that Congress, or the Secretary of 
        Homeland Security in the case of asylum applications, has 
        authorized to be processed or adjudicated at no cost or at a 
        reduced cost to the applicant; and
            (2) in an amount that is not greater than 1 percent of the 
        fee for filing a petition under section 203(b)(5) of the 
        Immigration and Nationality Act (8 U.S.C. 1153(b)(5)), to make 
        improvements to the information technology systems used by the 
        Secretary of Homeland Security to process, adjudicate, and 
        archive applications and petitions under such section, 
        including the conversion to electronic format of documents 
        filed by petitioners and applicants for benefits under such 
        section.
    (d) Exemption From Paperwork Reduction Act.--During the 1-year 
period beginning on the date of the enactment of this Act, the 
requirements under chapter 35 of title 44, United States Code, shall 
not apply to any collection of information required under this Act, any 
amendment made by this Act, or any rule promulgated by the Secretary of 
Homeland Security to implement this Act or the amendments made by this 
Act, to the extent that the Secretary determines that compliance with 
such requirements would impede the expeditious implementation of this 
Act or the amendments made by this Act.
    (e) Rule of Construction Regarding Adjudication Delays.--Nothing in 
this Act may be construed to limit the authority of the Secretary of 
Homeland Security to suspend the adjudication of any application or 
petition under section 203(b)(5) or 216A of the Immigration and 
Nationality Act (8 U.S.C. 1153(b)(5) and 1186b) pending the completion 
of a national security or law enforcement investigation relating to 
such application or petition.
    (f) Rule of Construction Regarding Modification of Fees.--Nothing 
in this section may be construed to require any modification of fees 
before the completion of--
            (1) the fee study described in subsection (a); or
            (2) regulations promulgated by the Secretary of Homeland 
        Security, in accordance with subchapter II of chapter 5 and 
        chapter 7 of title 5, United States Code (commonly known as the 
        ``Administrative Procedure Act''), to carry out subsections (b) 
        and (c).

SEC. 7. TRANSPARENCY.

    (a) In General.--Employees of the Department of Homeland Security, 
including the Secretary of Homeland Security, the Secretary's 
counselors, the Assistant Secretary for the Private Sector, the 
Director of U.S. Citizenship and Immigration Services, counselors to 
such Director, and the Chief of Immigrant Investor Programs at U.S. 
Citizenship and Immigration Services, shall act impartially and may not 
give preferential treatment to any entity, organization, or individual 
in connection with any aspect of the immigrant visa program described 
in section 203(b)(5) of the Immigration and Nationality Act (8 U.S.C. 
1153(b)(5)).
    (b) Improper Activities.--Activities that constitute preferential 
treatment under subsection (a) shall include--
            (1) working on, or in any way attempting to influence, in a 
        manner not available to or accorded to all other petitioners, 
        applicants, and seekers of benefits under the immigrant visa 
        program referred to in subsection (a), the standard processing 
        of an application, petition, or benefit for--
                    (A) a regional center;
                    (B) a new commercial enterprise;
                    (C) a job-creating entity; or
                    (D) any person or entity associated with such 
                regional center, new commercial enterprise, or job-
                creating entity; and
            (2) meeting or communicating with persons associated with 
        the entities listed in paragraph (1), at the request of such 
        persons, in a manner not available to or accorded to all other 
        petitioners, applicants, and seekers of benefits under such 
        immigrant visa program.
    (c) Reporting of Communications.--
            (1) Written communication.--Employees of the Department of 
        Homeland Security, including the officials listed in subsection 
        (a), shall include, in the record of proceeding for a case 
        under section 203(b)(5) of the Immigration and Nationality Act 
        (8 U.S.C. 1153(b)(5)), actual or electronic copies of all case-
        specific written communication, including emails from 
        government and private accounts, with non-Department persons or 
        entities advocating for regional center applications or 
        individual petitions under such section that are pending on or 
        after the date of the enactment of this Act (other than routine 
        communications with other agencies of the Federal Government 
        regarding the case, including communications involving 
        background checks and litigation defense).
            (2) Oral communication.--If substantive oral communication, 
        including telephonic communication, virtual communication, or 
        in-person meetings, takes place between officials of the 
        Department of Homeland Security and non-Department persons or 
        entities advocating for regional center applications or 
        individual petitions under section 203(b)(5) of such Act that 
        are pending on or after the date of the enactment of this Act 
        (except communications exempted under paragraph (1))--
                    (A) the conversation shall be recorded; or
                    (B) detailed minutes of the session shall be taken 
                and included in the record of proceeding.
            (3) Notification.--
                    (A) In general.--If the Secretary, in the course of 
                written or oral communication described in this 
                subsection, receives evidence about a specific case 
                from anyone other than an affected party or his or her 
                representative (excluding Federal Government or law 
                enforcement sources), such information may not be made 
                part of the record of proceeding and may not be 
                considered in adjudicative proceedings unless--
                            (i) the affected party has been given 
                        notice of such evidence; and
                            (ii) if such evidence is derogatory, the 
                        affected party has been given an opportunity to 
                        respond to the evidence.
                    (B) Information from law enforcement, intelligence 
                agencies, or confidential sources.--
                            (i) Law enforcement or intelligence 
                        agencies.--Evidence received from law 
                        enforcement or intelligence agencies may not be 
                        made part of the record of proceeding without 
                        the consent of the relevant agency or law 
                        enforcement entity.
                            (ii) Whistleblowers, confidential sources, 
                        or intelligence agencies.--Evidence received 
                        from whistleblowers, other confidential 
                        sources, or the intelligence community that is 
                        included in the record of proceeding and 
                        considered in adjudicative proceedings shall be 
                        handled in a manner that does not reveal the 
                        identity of the whistleblower or confidential 
                        source, or reveal classified information.
    (d) Consideration of Evidence.--
            (1) In general.--No case-specific communication with 
        persons or entities that are not part of the Department of 
        Homeland Security may be considered in the adjudication of an 
        application or petition under section 203(b)(5) of the 
        Immigration and Nationality Act (8 U.S.C. 1153(b)(5)) unless 
        the communication is included in the record of proceeding of 
        the case.
            (2) Waiver.--The Secretary of Homeland Security may waive 
        the requirement under paragraph (1) only in the interests of 
        national security or for investigative or law enforcement 
        purposes.
    (e) Channels of Communication.--
            (1) Email address or equivalent.--The Director of U.S. 
        Citizenship and Immigration Services shall maintain an email 
        account (or equivalent means of communication) for persons or 
        entities--
                    (A) with inquiries regarding specific petitions or 
                applications under the immigrant visa program described 
                in section 203(b)(5) of the Immigration and Nationality 
                Act (8 U.S.C. 1153(b)(5)); or
                    (B) seeking information that is not case-specific 
                about the immigrant visa program described in such 
                section 203(b)(5).
            (2) Communication only through appropriate channels or 
        offices.--
                    (A) Announcement of appropriate channels of 
                communication.--Not later than 40 days after the date 
                of the enactment of this Act, the Director of U.S. 
                Citizenship and Immigration Services shall announce 
                that the only channels or offices by which industry 
                stakeholders, petitioners, applicants, and seekers of 
                benefits under the immigrant visa program described in 
                section 203(b)(5) of the Immigration and Nationality 
                Act (8 U.S.C. 1153(b)(5)) may communicate with the 
                Department of Homeland Security regarding specific 
                cases under such section (except for communication made 
                by applicants and petitioners pursuant to regular 
                adjudicatory procedures), or information that is not 
                case-specific about the visa program applicable to 
                certain cases under such section, are through--
                            (i) the email address or equivalent channel 
                        described in paragraph (1);
                            (ii) the National Customer Service Center, 
                        or any successor to such Center; or
                            (iii) the Office of Public Engagement, 
                        Immigrant Investor Program Office, including 
                        the Stakeholder Engagement Branch, or any 
                        successors to those Offices or that Branch.
                    (B) Direction of incoming communications.--
                            (i) In general.--Employees of the 
                        Department of Homeland Security shall direct 
                        communications described in subparagraph (A) to 
                        the channels of communication or offices listed 
                        in clauses (i) through (iii) of subparagraph 
                        (A).
                            (ii) Rule of construction.--Nothing in this 
                        subparagraph may be construed to prevent--
                                    (I) any person from communicating 
                                with the Ombudsman of U.S. Citizenship 
                                and Immigration Services regarding the 
                                immigrant investor program under 
                                section 203(b)(5) of the Immigration 
                                and Nationality Act (8 U.S.C. 
                                1153(b)(5)); or
                                    (II) the Ombudsman from resolving 
                                problems regarding such immigrant 
                                investor program pursuant to the 
                                authority granted under section 452 of 
                                the Homeland Security Act of 2002 (6 
                                U.S.C. 272).
                    (C) Log.--
                            (i) In general.--The Director of U.S. 
                        Citizenship and Immigration Services shall 
                        maintain a written or electronic log of--
                                    (I) all communications described in 
                                subparagraph (A) and communications 
                                from Members of Congress, which shall 
                                reference the date, time, and subject 
                                of the communication, and the identity 
                                of the Department official, if any, to 
                                whom the inquiry was forwarded;
                                    (II) with respect to written 
                                communications described in subsection 
                                (c)(1), the date on which the 
                                communication was received, the 
                                identities of the sender and addressee, 
                                and the subject of the communication; 
                                and
                                    (III) with respect to oral 
                                communications described in subsection 
                                (c)(2), the date on which the 
                                communication occurred, the 
                                participants in the conversation or 
                                meeting, and the subject of the 
                                communication.
                            (ii) Transparency.--The log of 
                        communications described in clause (i) shall be 
                        made publicly available in accordance with 
                        section 552 of title 5, United States Code 
                        (commonly known as the ``Freedom of Information 
                        Act'').
            (3) Publication of information.--Not later than 30 days 
        after a person or entity inquiring about a specific case or 
        generally about the immigrant visa program described in section 
        203(b)(5) of the Immigration and Nationality Act (8 U.S.C. 
        1153(b)(5)) receives, as a result of a communication with an 
        official of the Department of Homeland Security, generally 
        applicable information that is not case-specific about program 
        requirements or administration that has not been made publicly 
        available by the Department, the Director of U.S. Citizenship 
        and Immigration Services shall publish such information on the 
        U.S. Citizenship and Immigration Services website as an update 
        to the relevant Frequently Asked Questions page or by some 
        other comparable mechanism.
    (f) Penalty.--
            (1) In general.--Any person who intentionally violates the 
        prohibition on preferential treatment under this section or 
        intentionally violates the reporting requirements under 
        subsection (c) shall be disciplined in accordance with 
        paragraph (2).
            (2) Sanctions.--Not later than 90 days after the date of 
        the enactment of this Act, the Secretary of Homeland Security 
        shall establish a graduated set of sanctions based on the 
        severity of the violation referred to in paragraph (1), which 
        may include, in addition to any criminal or civil penalties 
        that may be imposed, written reprimand, suspension, demotion, 
        or removal.
    (g) Rule of Construction Regarding Classified Information.--Nothing 
in this section may be construed to modify any law, regulation, or 
policy regarding the handling or disclosure of classified information.
    (h) Rule of Construction Regarding Private Right of Action.--
Nothing in this section may be construed to create or authorize a 
private right of action to challenge a decision of an employee of the 
Department of Homeland Security.
    (i) Effective Date.--This section, and the amendments made by this 
section, shall take effect on the date of the enactment of this Act.
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