Title: SOS ACT Act
Policy area: Foreign Trade and International Finance

Summary:
Secure Our Systems Against China's Tactics Act or the SOS ACT Act
This bill authorizes the Department of the Treasury to temporarily guarantee up to 50% of an investment made during the public health emergency declared due to COVID-19 (i.e., coronavirus disease 2019) in a business that (1) incurred losses due to COVID-19, (2) advances a national security interest, and (3) is susceptible to being purchased by a Chinese entity.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6598 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6598

To preserve national security by providing guarantees to investors for 
investments in businesses at risk of predatory economic tactics by the 
   Communist Party of the People's Republic of China, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 23, 2020

    Mr. Green of Tennessee 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 preserve national security by providing guarantees to investors for 
investments in businesses at risk of predatory economic tactics by the 
   Communist Party of the People's Republic of China, 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 ``Secure Our Systems Against China's 
Tactics Act'' or the ``SOS ACT Act''.

SEC. 2. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) while the United States is committed to promoting 
        cultural and technological exchange with other countries, it is 
        our responsibility to protect the United States when channels 
        for such exchange are exploited by adversaries; and
            (2) the People's Republic of China consistently seeks to 
        exploit those channels, not only in its theft of intellectual 
        property but also in its manipulation of lawful acquisition of 
        companies in the United States in ways that directly support 
        its military objectives and threaten those of the United 
        States.

SEC. 3. GUARANTEES.

    (a) In General.--The Secretary of the Treasury is authorized to 
make guarantees to investors to cover up to 50 percent of the costs of 
an investment in an eligible business made during the emergency period 
(as defined in paragraph (1)(B) of section 1135(g) of the Social 
Security Act (42 U.S.C. 1320b-5(g))).
    (b) Criteria for Awarding Guarantees.--
            (1) In general.--In making guarantees pursuant to 
        subsection (a), the Secretary of the Treasury shall, in 
        consultation with the Secretary of Defense and the Secretary of 
        Commerce, establish criteria to award guarantees to investors.
            (2) National security interest.--In establishing the 
        criteria under paragraph (1), the Secretary of the Treasury 
        shall, in consultation with the Secretary of Defense and the 
        Secretary of State, determine which eligible businesses should 
        be prioritized based on the objectives of the 2018 National 
        Defense Strategy.
            (3) Report required.--Not later than 15 days after the date 
        of the enactment of this Act, the Secretary of the Treasury, 
        the Secretary of Defense, and the Secretary of Commerce shall 
        jointly submit to Congress a report outlining the criteria 
        established under paragraph (1).
    (c) Funding.--In carrying out this section, the Secretary of the 
Treasury shall redirect, from the funds available under section 
4003(b)(4) of the CARES Act (Public Law 116-136), $10,000,000,000 to 
fund the guarantees under subsection (a).
    (d) Duration.--The Secretary of the Treasury may make the 
guarantees authorized under subsection (a) during the period beginning 
on the date of the submission of the report required under subsection 
(b)(3) and ending on the date that is 1 year after the date of the 
enactment of this Act.
    (e) Limitations.--With respect to an investment guaranteed under 
this section by an investor in an eligible business, if such business 
fails--
            (1) such investor may only receive monetary compensation 
        for up to 3 years after the last day of the emergency period 
        (as defined in paragraph (1)(B) of section 1135(g) of the 
        Social Security Act (42 U.S.C. 1320b-5(g))), if the reason for 
        the failure of such business is reasonably related to issues 
        stemming from COVID-19; and
            (2) the Secretary of the Treasury shall determine how much 
        money such investor may recover and whether such investor may 
        recover money before or after the liquidation of such business.
    (f) Eligible Business Defined.--In this section, the term 
``eligible business'' means a company that--
            (1) incurred losses as a result of COVID-19;
            (2) advances a national security interest; and
            (3) is susceptible to being purchased by an entity from, 
        associated with, or located within China (as defined in 
        paragraph (1)(B) of section 1135(g) of the Social Security Act 
        (42 U.S.C. 1320b-5(g))).
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