Title: Protecting National Security in Financial Investments Act
Policy area: Finance and Financial Sector

Summary:
Protecting National Security in Financial Investments Act
This bill requires the Securities and Exchange Commission to determine whether issuers of securities must disclose investments in certain persons reasonably believed to be involved, or to pose a significant risk of being or becoming involved, in activities contrary to the national security or foreign policy interests of the United States.
The Department of State must annually submit to Congress a list of Chinese entities associated with specified military activities.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8407 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 8407

To require the Securities and Exchange Commission to assess whether the 
disclosure of information related to investments in certain entities is 
necessary or appropriate for the purposes of certain reports under the 
securities laws, to establish the Entities of the People's Republic of 
China that Threaten United States National Security List, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 29, 2020

    Mr. Reschenthaler (for himself, Mr. McCaul, and Mr. Riggleman) 
 introduced the following bill; which was referred to the Committee on 
    Financial Services, and in addition to the Committee on Foreign 
Affairs, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To require the Securities and Exchange Commission to assess whether the 
disclosure of information related to investments in certain entities is 
necessary or appropriate for the purposes of certain reports under the 
securities laws, to establish the Entities of the People's Republic of 
China that Threaten United States National Security List, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protecting National Security in 
Financial Investments Act''.

SEC. 2. ASSESSMENT OF INFORMATION WITH RESPECT TO INVESTMENTS IN 
              CERTAIN ENTITIES.

    (a) In General.--Not later than 360 days following the date of the 
enactment of this Act, the Securities and Exchange Commission, in 
consultation with the Secretary of the Treasury, shall submit to the 
Committee on Financial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of the Senate a report 
assessing whether disclosure of investments in entities on the entity 
list by an issuer qualifies as necessary or appropriate for the 
purposes of section 13(a) of the Securities Exchange Act of 1934.
    (b) Rulemaking.--Not later than 180 days following submission of 
the report required under subsection (a), the Securities and Exchange 
Commission shall prescribe regulations requiring an issuer to disclose 
in any annual report required under section 13 of the Securities 
Exchange Act of 1934, and in any prospectus in connection with an 
initial public offering, the information assessed by the Commission in 
such report to be necessary or appropriate for the purposes of 
subsection (a) of such section 13.
    (c) Definitions.--In this section:
            (1) Entity list.--The term ``entity list'' means the list 
        maintained by the Bureau of Industry and Security of the 
        Department of Commerce and set forth in Supplement No. 4 to 
        part 744 of the Export Administration Regulations.
            (2) Export administration regulations.--The term ``Export 
        Administration Regulations'' means subchapter C of chapter VII 
        of title 15, Code of Federal Regulations.

SEC. 3. ENTITIES OF THE PEOPLE'S REPUBLIC OF CHINA THAT THREATEN UNITED 
              STATES NATIONAL SECURITY LIST.

    (a) In General.--Not later than one year after the date of the 
enactment of this Act, and annually thereafter, the Secretary of State, 
in consultation with the Director of National Intelligence, the 
Secretary of Defense, and the Secretary of Commerce, shall submit to 
the Congress a list of--
            (1) each entity of the People's Republic of China 
        associated with the People's Liberation Army, the Chinese 
        People's Armed Police Force, the Ministry of State Security, or 
        the China Coast Guard, including any entity that--
                    (A) is a listed military supplier;
                    (B) is licensed to engage in military production;
                    (C) is carrying out a declared military-civil 
                fusion business strategy;
                    (D) is a military factory representative, on-site;
                    (E) maintains an office in a military-civil fusion-
                linked industrial zone;
                    (F) is a defense contractor or is involved in a 
                defense contractor partnership;
                    (G) is engaged in collaborative efforts with a 
                defense research and development university;
                    (H) is a subsidiary of a defense university; or
                    (I) is a military-civil fusion funding provider or 
                recipient; and
            (2) each entity of the People's Republic of China that is 
        owned, controlled, or influenced by an entity on the entity 
        list.
    (b) Reference.--The list required by subsection (a) may be referred 
to as the ``Entities of the People's Republic of China that Threaten 
United States National Security List''.
    (c) Public Availability.--The Secretary of State shall make each 
list submitted pursuant to subsection (a) available to the public, 
including on a website of the Department of State, but shall remove any 
classified portions of such list.
    (d) Statement of Policy.--It is the policy of the United States 
that the Entities of the People's Republic of China that Threaten 
United States National Security List should inform Federal Government 
policy.
    (e) Definitions.--In this section:
            (1) Entity list.--The term ``entity list'' means the list 
        maintained by the Bureau of Industry and Security of the 
        Department of Commerce and set forth in Supplement No. 4 to 
        part 744 of the Export Administration Regulations.
            (2) Export administration regulations.--The term ``Export 
        Administration Regulations'' means subchapter C of chapter VII 
        of title 15, Code of Federal Regulations.
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