STOP CCP Act of 2022

Bill: 117-s-4099
Sponsor: full_name: Sen. Scott, Rick [R-FL]
Introduced: 2022-04-27
Policy area: International Affairs
Latest action: action_date: 2022-04-27
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2022-04-27
action_desc: Introduced in Senate
text: <p><b>Sanction Transactions Originating from Pernicious Chinese Companies and Policies Act of 2022 or the STOP CCP Act of 2022</b></p> <p>This bill prohibits U.S. persons (generally individuals and entities subject to U.S. jurisdiction) from trading in the publicly traded securities of certain entities that operate or have operated in certain sectors in China, including the defense or surveillance technology sectors.</p>

tv_txt: II 117th CONGRESS 2d Session S. 4099 IN THE SENATE OF THE UNITED STATES April 27, 2022 Mr. Scott of Florida (for himself, Mr. Hagerty , Ms. Ernst , Mr. Braun , and Mr. Cruz ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To prohibit securities investments that finance certain companies of the People's Republic of China and to expand the Non-Specially Designated Nationals Chinese Military-Industrial Complex Companies List of the Office of Foreign Assets Control, and for other purposes.

1. Short title This Act may be cited as the Sanction Transactions Originating from Pernicious Chinese Companies and Policies Act of 2022 or the STOP CCP Act of 2022 . 2. Definitions In this Act: (1) Chinese entity The term Chinese entity means an entity organized under the laws of the People's Republic of China or otherwise subject to the jurisdiction of the Government of the People's Republic of China. (2) Publicly traded securities The term publicly traded securities includes— (A) any security (as defined in section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) )) denominated in any currency that trades on a securities exchange, or through the method of trading that is commonly referred to as over-the-counter , in any jurisdiction; and (B) any security that is derivative of or designed to provide investment exposure to a security described in subparagraph (A). (3) United States person The term United States person means— (A) an individual who is a United States citizen or an alien lawfully admitted for permanent residence to the United States; (B) an entity organized under the laws of the United States or any jurisdiction within the United States, including a foreign branch of such an entity; or (C) any person in the United States. 3. Prohibition on securities investments that finance certain companies of the People's Republic of China The following activities by a United States person are prohibited: (1) The purchase or sale of any publicly traded securities, or any publicly traded securities that are derivative of such securities or are designed to provide investment exposure to such securities, issued by any person determined by the Secretary of the Treasury, in consultation with the Secretary of State, and, as the Secretary of the Treasury deems appropriate, the Secretary of Defense— (A) to operate or have operated in the defense and related materiel sector or the surveillance technology sector of the economy of the People's Republic of China; or (B) to own or control, or to be owned or controlled by, directly or indirectly, a person described in subparagraph (A). (2) The execution, support, or servicing of a purchase or sale described in paragraph (1). (3) Any transaction that evades or avoids, has the purpose of evading or avoiding, causes a violation of, or attempts to violate the prohibition under paragraph (1). (4) Any conspiracy formed to violate the prohibition under paragraph (1). 4. Expansion of Non-Specially Designated Nationals Chinese Military-Industrial Complex Companies List Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury shall prescribe regulations to expand the Non-Specially Designated Nationals Chinese Military-Industrial Complex Companies List (commonly referred to as the NS–CMIC List ) of the Office of Foreign Assets Control to include— (1) any entity engaged in supporting the Chinese military-industrial complex; (2) any entity that is owned or controlled by an entity described in paragraph (1); (3) any entity that is formed from a spin-off, merger or acquisition, or sale of a business unit involving an entity described in paragraph (1) or is otherwise a successor to such an entity; and (4) any entity that provides financial services for an entity described in paragraph (1), (2), or (3). 5. Closing sanctions loopholes (a) In general If sanctions are imposed with respect to a Chinese entity under any statute or executive order described in subsection (b), sanctions shall be imposed with respect to the Chinese entity under each other applicable statute and executive order described in subsection (b) unless— (1) the President waives the imposition of such sanctions; or (2) a waiver provided for under such other statute or executive order applies. (b) Statutes and executive orders described A statute or executive order described in this subsection is a statute or executive order that provides for the imposition of sanctions. (c) National security waiver (1) In general The President may waive the application of any sanction imposed with respect to any person under subsection (a) if the President determines and certifies to Congress that such a waiver is important to the national security interests of the United States. (2) Notification of and report to Congress If the President decides to exercise the waiver authority provided under paragraph (1), the President shall, not less than 20 days before the waiver takes effect, submit to Congress a report— (A) notifying Congress of the decision to exercise the waiver authority; and (B) fully articulating the rationale and circumstances that led to the decision. (d) Termination of sanctions To be reported to Congress Not later than 20 days after the termination of any sanction under subsection (a), the President shall promptly submit to Congress a report on that termination and the reasons for the termination.