Protecting National Security in Financial Investments Act

Bill: 116-hr-8407
Sponsor: full_name: Rep. Reschenthaler, Guy [R-PA-14]
Introduced: 2020-09-29
Policy area: Finance and Financial Sector
Subjects: Administrative law and regulatory procedures

Asia

China

Congressional oversight

Financial services and investments

Foreign and international corporations

Government information and archives

Government studies and investigations

Higher education

Military procurement, research, weapons development

Research administration and funding

Research and development

Securities

Securities and Exchange Commission (SEC)

Trade restrictions

U.S. and foreign investments
Latest action: action_date: 2020-09-29
text: 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.

Summaries:
action_date: 2020-09-29
action_desc: Introduced in House
text: <p><b>Protecting National Security in Financial Investments Act </b></p> <p>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. </p> <p>The Department of State must annually submit to Congress a list of Chinese entities associated with specified military activities. </p>

tv_txt: I 116th CONGRESS 2d Session H. R. 8407 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.

1. Short title This Act may be cited as the Protecting National Security in Financial Investments Act . 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. 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.