II 118th CONGRESS 2d Session S. 3948 IN THE SENATE OF THE UNITED STATES March 14, 2024 Ms. Stabenow (for herself and Mr. Peters ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To amend the Defense Production Act of 1950 to better address certain transactions by foreign entities of concern, and for other purposes.

1. Short title This Act may be cited as the Protecting Against Foreign Adversary Investments Act of 2024 . 2. Authority of Committee on Foreign Investment in the United States to review certain real estate purchases by foreign entities of concern (a) In general Section 721(a)(4) of the Defense Production Act of 1950 ( 50 U.S.C. 4565(a)(4) ) is amended— (1) in subparagraph (A)— (A) in clause (i), by striking ; and and inserting a semicolon; (B) in clause (ii), by striking the period at the end and inserting ; and ; and (C) by adding at the end the following new clause: (iii) any transaction described in subparagraph (B)(vi) proposed or pending on or after the date of the enactment of this clause. ; (2) in subparagraph (B), by adding at the end the following new clause: (vi) Subject to subparagraph (C), the purchase or lease by, or a concession to, a foreign entity of concern of private or public real estate in the United States if— (I) the value or fair market value of such purchase, lease, or concession exceeds $1,000,000; (II) the real estate exceeds 100 acres; (III) the aggregate value or fair market value of such purchase, lease, or concession, in combination with the value or fair market value of other purchases or leases by, or concessions to, such foreign entity during the 3-year period preceding the date of such purchase, lease, or concession, exceeds $1,000,000; (IV) the aggregate acreage of such purchase, lease, or concession, in combination with the aggregate acreage of other purchases or leases by, or concessions to, such foreign entity during the 3-year period preceding the date of such purchase, lease, or concession, exceeds 100 acres; or (V) the structure of such purchase, lease, or concession is designed or intended to evade or circumvent the application of this clause, as determined by the Committee. ; and (3) in subparagraph (C)(i), by striking subparagraph (B)(ii) and inserting clause (ii) or (iv) of subparagraph (B) . (b) Definition of foreign entities of concern Section 721(a) of the Defense Production Act of 1950 ( 50 U.S.C. 4565(a) ) is amended— (1) by redesignating paragraphs (7) through (13) as paragraphs (8) through (14), respectively; and (2) by inserting after paragraph (6) the following new paragraph: (7) Foreign entity of concern The term foreign entity of concern has the meaning given that term in section 9901 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 ( 15 U.S.C. 4651 ). . (c) Factors To be considered Section 721(f) of the Defense Production Act of 1950 ( 50 U.S.C. 4565(f) ) is amended— (1) by redesignating paragraphs (8) through (11) as paragraphs (10) through (13), respectively; and (2) by inserting after paragraph (7) the following new paragraphs: (8) the potential effects of a proposed or pending transaction on the national security of the United States as a result of the impact of the transaction on the economic security of the United States; (9) the factors described in section 3 of Executive Order 14083 ( 50 U.S.C. 4565 note; relating to consideration of evolving national security risks by the Committee on Foreign Investment in the United States), as in effect on January 1, 2024; . (d) Mandatory declarations Section 721(b)(1)(C)(v)(IV) of the Defense Production Act of 1950 ( 50 U.S.C. 4565(b)(1)(C)(v)(IV) ) is amended by adding at the end the following: (hh) Required declarations for certain real estate transactions Notwithstanding item (dd), the parties to a real estate transaction described in subsection (a)(4)(B)(vi) shall submit a declaration described in subclause (I) with respect to the transaction. . (e) Reports required (1) Retroactive applicability Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury, in coordination with Secretary of State and the Secretary of Homeland Security, shall submit to Congress a report that includes an assessment of the feasibility of requiring retroactive mitigation measures or divestment of real estate described in clause (vi) of section 721(a)(4)(B) of the Defense Production Act of 1950, as added by this section, that is owned by a foreign entity of concern (as defined in paragraph (7) of section 721(a) of such Act, as amended by this section) that presents a threat to national security (as determined by the Committee on Foreign Investment in the United States). (2) Additional resources Not later than 180 after the date of the enactment of this Act, the Secretary of the Treasury and the Committee on Foreign Investment in the United States shall submit to Congress a report describing any statutory or regulatory changes necessary to carry out this section and the amendments made by this section. (f) Effective date The amendments made by this section shall take effect on the date of the enactment of this Act and apply with respect to any covered transaction the review or investigation of which is initiated under section 721 of the Defense Production Act of 1950 on or after such date of enactment. 3. Report on public or private real estate purchasing activities in the United States by foreign entities of concern (a) Reports (1) In general Not later than 180 days after the date of the enactment of this Act, and annually thereafter, the Director, in coordination with the Secretary of Homeland Security and the head of any other appropriate Federal agency, shall submit to the appropriate congressional committees a report containing a description of the national security risks of the purchase, ownership, or lease of public or private real estate by a foreign entity of concern. (2) Contents Each report submitted under paragraph (1) shall include, with respect to the year covered by the report, the following: (A) A list of all real estate in the United States described in clause (vi) of section 721(a)(4)(B) of the Defense Production Act of 1950, as added by this Act. (B) An analysis of the potential use of real estate for industrial espionage or intellectual property transfer by a foreign entity of concern. (C) An analysis of the potential use by a foreign entity of concern of real estate in close proximity to manufacturing facilities, water sources, and other critical infrastructure to monitor, interrupt, or disrupt activities critical to the national and economic security of the United States. (D) An analysis of other threats to the economic security or national security of the United States due to the ownership, including ownership in the aggregate, of real estate by a foreign entity of concern. (3) Unclassified form Each report submitted under this subsection shall— (A) be submitted in unclassified form, but may include a classified annex; and (B) be consistent with the protection of intelligence sources and methods. (4) Publicly available Upon submitting a report under paragraph (1), the Director shall make publicly available the information included in such report under paragraph (2)(A). (b) Definitions In this section: (1) Appropriate congressional committees The term appropriate congressional committees means— (A) the Committee on Energy and Commerce, the Committee on Homeland Security, and the Permanent Select Committee on Intelligence of the House of Representatives; and (B) the Committee on Environment and Public Works, the Committee on Homeland Security and Governmental Affairs, and the Select Committee on Intelligence of the Senate. (2) Foreign entity of concern The term foreign entity of concern has the meaning given that term in section 9901 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 ( 15 U.S.C. 4651 ). (3) Director The term Director means the Director of National Intelligence. (4) State The term State has the meaning given such term in section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 ( 42 U.S.C. 9601 ). 4. Best practices for State and local officials relating to potential transactions with foreign entities of concern (a) In general Not later than 180 days after the date of the enactment of this Act, the Director of National Intelligence, in coordination with the Secretary of Homeland Security, the Secretary of Commerce, and the heads of any other Federal department or agencies determined relevant by the Director of National Intelligence, shall develop and make publicly available best practices for use by State and local officials with respect to engaging in a potential transaction with a foreign entity of concern. Such best practices shall including an identification of— (1) common risks associated with engaging a foreign entity of concern with respect to such a potential transaction; and (2) Federal resources available to assist such officials in determining the specific national security risks, if any, of such a potential transaction. (b) Foreign entity of concern defined In this section, the term foreign entity of concern has the meaning given that term in section 9901 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 ( 15 U.S.C. 4651 ).