II 118th CONGRESS 1st Session S. 3476 IN THE SENATE OF THE UNITED STATES December 12, 2023 Mr. Rubio (for himself and Mr. Scott of Florida ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To monitor United States investments in entities that are controlled by foreign adversaries, and for other purposes.

1. Short title This Act may be cited as the American Investment Accountability Act . 2. Reporting requirements (a) Definitions In this section: (1) Appropriate congressional committees The term appropriate congressional committees means— (A) the Committee on Armed Services of the Senate; (B) the Committee on Banking, Housing, and Urban Affairs of the Senate; (C) the Committee on Finance of the Senate; (D) the Committee on Foreign Relations of the Senate; (E) the Select Committee on Intelligence of the Senate; (F) the Committee on Armed Services of the House of Representatives; (G) the Committee on Financial Services of the House of Representatives; (H) the Committee on Foreign Affairs of the House of Representatives; (I) the Permanent Select Committee on Intelligence of the House of Representatives; and (J) the Committee on Ways and Means of the House of Representatives. (2) Country of concern The term country of concern — (A) means a country the government of which is a foreign adversary, as defined in section 8(c)(2) of the Secure and Trusted Communications Networks Act of 2019 ( 47 U.S.C. 1607(c)(2) ); and (B) includes— (i) the People’s Republic of China (including the Special Administrative Regions of the People's Republic of China, including Hong Kong and Macau); (ii) the Russian Federation; (iii) Iran; (iv) North Korea; (v) Cuba; and (vi) Venezuela. (3) Covered United States business The term covered United States business means any entity that— (A) is— (i) a corporation, partnership, or other association organized under the laws of the United States or of any State, the District of Columbia, or any commonwealth, territory, or possession of the United States; or (ii) a foreign corporation, partnership, or other association, not less than 25 percent of the ownership interest in which is held by United States citizens or entities described in clause (i); and (B) is not a small business concern (as defined in section 3 of the Small Business Act ( 15 U.S.C. 632 )). (4) Covered entity The term covered entity means any entity— (A) that— (i) has its headquarters or principal place of business in a country of concern; (ii) is organized under the laws of, or otherwise subject to the jurisdiction of, a country of concern; (iii) is owned by the government of a country of concern; (iv) is under the direct or indirect control of such a government; (v) is subject to the influence of such a government; or (vi) is subject to intimidation by a public official of such a government; (B) not less than 25 percent of the ownership interest in which is held, in the aggregate, directly or indirectly, by not less than 1 entity— (i) included on a sanctions list; or (ii) owned or controlled by the government of a country of concern; (C) that has a subsidiary or parent organization that— (i) has its headquarters or principal place of business in a country of concern; or (ii) is organized under the laws of, or otherwise subject to the jurisdiction of, a country of concern; or (D) that the Secretary of the Treasury considers to have an interest in property or interests in property of an entity in which not less than 25 percent of the ownership interest is held, in the aggregate, directly or indirectly, by not less than 1 entity included on a sanctions list. (5) Direct investment The term direct investment has the meaning given that term in section 3 of the International Investment and Trade in Services Survey Act ( 22 U.S.C. 3102 ). (6) Offshore financial center The term offshore financial center means any country, special administrative region, territory, or jurisdiction outside the United States that acts as an intermediary for investments originating in the United States and destined for countries of concern, through which, on an annual basis— (A) more than $100,000,000 in direct investments in countries of concern or covered entities are made; or (B) more than $500,000,000 in portfolio investments in countries of concern or covered entities are made. (7) Portfolio investment The term portfolio investment has the meaning given that term in section 3 of the International Investment and Trade in Services Survey Act ( 22 U.S.C. 3102 ). (8) Sanctions list The term sanctions list means— (A) the Entity 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 title 15, Code of Federal Regulations; (B) the list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Treasury (commonly known as the SDN list ); (C) the list of foreign financial institutions subject to correspondent account or payable-through account sanctions maintained by the Office of Foreign Assets Control (commonly known as the CAPTA List ); (D) the list of persons operating in sectors of the Russian economy identified by the Secretary of the Treasury pursuant to Executive Order 13662 (commonly known as the Sectoral Sanctions Identifications List ); or (E) the Non-SDN Chinese Military Industrial Complex List maintained by the Office of Foreign Assets Control. (9) United States The term United States means the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands, American Samoa, Wake Island, Midway Islands, Kingman Reef, Johnston Atoll, the Northern Mariana Islands, and any other territory or possession of the United States. (10) United States person The term United States person has the meaning given that term in section 3 of the International Investment and Trade in Services Survey Act ( 22 U.S.C. 3102 ). (b) Report by Secretary of Commerce Not later than 1 year after the date of the enactment of this Act, and every 90 days thereafter, the Secretary of Commerce shall submit to the appropriate congressional committees a report that identifies, for the period specified in subsection (e)— (1) the value of direct investments by United States persons in countries of concern, which shall— (A) be disaggregated by sector and by the State in which the investment originated; and (B) account for investment occurring through offshore financial centers; (2) the value of direct investments by United States persons in covered entities, which shall— (A) be disaggregated by sector; and (B) account for investment occurring through offshore financial centers; and (3) the number of direct investments by United States persons in countries of concern in excess of— (A) $5,000,000 in a single transaction; or (B) $10,000,000 in the aggregate. (c) Report by Secretary of the Treasury Not later than 1 year after the date of the enactment of this Act, and every 90 days thereafter, the Secretary of the Treasury shall submit to the appropriate congressional committees a report that identifies, for the period specified in subsection (e)— (1) the value of portfolio investments by United States persons in countries of concern, which shall— (A) be disaggregated by sector and by the State in which the investment originated; and (B) account for investment occurring through offshore financial centers; (2) the value of portfolio investments by United States persons in covered entities, which shall— (A) be disaggregated by sector; and (B) account for investment occurring through offshore financial centers; (3) the number of portfolio investments by United States persons in countries of concern in excess of— (A) $10,000,000 in a single transaction; or (B) $25,000,000 in the aggregate; and (4) the value of portfolio investments by United States persons in initial offerings for sale to the public of common equity securities of covered entities and secondary market trading in such securities. (d) Report by Securities and Exchange Commission Not later than 1 year after the date of the enactment of this Act, and every 90 days thereafter, the Securities and Exchange Commission shall submit to the appropriate congressional committees a report that, for the period specified in subsection (e), identifies the following: (1) Each instance in which a covered United States business spun off a separate entity that subsequently operated in a country of concern. (2) Each joint venture entered into between a covered United States business and a covered entity. (3) Each instance in which a covered United States business merged with, acquired, or was acquired by a covered entity. (4) Each instance in which the value of expanded operations of a covered United States business in a country of concern exceeds— (A) $5,000,000 in a single transaction; or (B) $10,000,000 in the aggregate. (5) Each instance in which a covered United States business made a direct investment in a country of concern. (e) Period specified The period specified in this subsection is— (1) in the case of the first report required by subsection (b), (c), or (d), the 1-year period preceding submission of the report; and (2) in the case of any subsequent report required by any such subsection, the 90-day period preceding submission of the report.