[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5244 Introduced in Senate (IS)]
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118th CONGRESS
2d Session
S. 5244
To prohibit the purchase of certain securities from covered entities,
and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 25, 2024
Mr. Ricketts introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To prohibit the purchase of certain securities from covered entities,
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 ``PRC Military and Human Rights
Capital Markets Sanctions Act of 2024''.
SEC. 2. PROHIBITION ON PURCHASE OF CERTAIN SECURITIES FROM COVERED
ENTITIES.
(a) Definitions.--
(1) Covered entity.--
(A) In general.--In this section, the term
``covered entity'' means the following:
(i) Any entity that is on the list of
Specially Designated Nationals and Blocked
Persons maintained by the Office of Foreign
Assets Control of the Department of the
Treasury, or any entity under common ownership
or control with such entity.
(ii) Any entity on the Non-SDN Chinese
Military-Industrial Complex Companies List
(commonly known as the ``NS-CMIC List'')
maintained by the Office of Foreign Assets
Control of the Department of the Treasury
pursuant to Executive Order 13959 (50 U.S.C.
1701 note; relating to addressing the threat
from securities investments that finance
communist Chinese military companies), or any
entity under common ownership or control with
such entity.
(iii) Any Chinese military company included
on the list maintained by the Department of
Defense under section 1260H(b) of the William
M. (Mac) Thornberry National Defense
Authorization Act for Fiscal Year 2021 (Public
Law 116-283; 10 U.S.C. 113 note) as of the date
of the enactment of this Act, or any entity
under common ownership or control with such
company.
(iv) Any Chinese entity with respect to
which sanctions have been imposed under the
under the Global Magnitsky Human Rights
Accountability Act (22 U.S.C. 10101 et seq.),
or any entity under common ownership or control
with such entity.
(v) Any Chinese entity that produces goods
that have been the subject of a withhold
release order issued pursuant to section 307 of
the Tariff Act of 1930 (19 U.S.C. 1307) during
the 2-year period ending on the date of the
enactment of this Act, or any entity under
common ownership or control of such entity.
(vi) Any Chinese entity included on 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, or any entity under common
ownership or control with such entity.
(vii) Any Chinese entity on a list
maintained under clause (i), (ii), (iv), or (v)
of section 2(d)(2)(B) of the Act entitled ``An
Act to ensure that goods made with forced labor
in the Xinjiang Autonomous Region of the
People's Republic of China do not enter the
United States market, and for other purposes'',
approved December 23, 2021 (Public Law 117-78;
22 U.S.C. 6901 note) (commonly referred to as
the ``Uyghur Forced Labor Prevention Act''), or
any entity under common ownership or control
with such entity.
(viii) Any Chinese entity on the Military
End-User List maintained by the Bureau of
Industry and Security and set forth in
Supplement No. 7 to part 744 of title 15, Code
of Federal Regulations, or any entity under
common ownership or control with such entity.
(B) Control.--For purposes of subparagraph (A), the
term ``control'' has the meaning given the term in
section 230.405 of title 17, Code of Federal
Regulations.
(2) United states person.--The term ``United States
person'' means--
(A) 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.
(b) Prohibition.--Not later than 90 days after the date of
enactment of this Act, the President shall--
(1) compile and maintain a single list of covered entities;
(2) where possible, include in the list described in
paragraph (1) a unique identification number for each covered
entity, such as a Committee on Uniform Securities
Identification Procedures number or a Stock Exchange Daily
Official List number;
(3) make the list described in paragraph (1) available to
the public; and
(4) publicly identify and prohibit the purchase, sale, or
holding by a United States person of a--
(A) publicly traded security issued by a covered
entity;
(B) publicly traded security that is derivative of
a publicly traded security issued by a covered entity;
and
(C) security that provides investment exposure to a
publicly traded security issued by a covered entity.
(c) Divestment Required.--
(1) In general.--Notwithstanding subsection (b), a United
States person shall divest of all securities described in
subsection (b)--
(A) with respect to a security identified by the
President under subsection (b) before the end of the
90-day period beginning on the date of enactment of
this Act, not later than 180 days after the date of
enactment of this Act; and
(B) with respect to a security identified by the
President under subsection (b) after the end of the 90-
day period beginning on the date of enactment of this
Act, not later than 180 days after the date of such
identification.
(2) Facilitating divestment transactions.--Subsection (b)
shall not apply to a United States person to the extent the
person is facilitating the divestment of securities described
in paragraph (1).
(d) Penalties.--
(1) In general.--A United States person that violates,
attempts to violate, conspires to violate, or causes a
violation of this Act shall be subject to the following
penalties:
(A) A civil penalty in an amount not to exceed the
greater of--
(i) $250,000; or
(ii) an amount that is twice the amount of
the transaction that is the basis of the
violation with respect to which the penalty is
imposed.
(B) With respect to a United States person that
willfully violates, willfully attempts to violate,
willfully conspires to violate, or aids or abets in the
commission of a violation of this Act shall be subject
to a criminal penalty--
(i) of a fine of not more than $1,000,000;
or
(ii) if such United States person is an
individual, a fine of not more than $1,000,000,
a term of imprisonment of not more than 20
years, or both.
(2) Amount of a transaction defined.--For purposes of
paragraph (1)(A)(ii), the term ``amount of a transaction''
means--
(A) with respect to a purchase that violates this
Act, the purchase price;
(B) with respect to a sale that violates this Act,
the sale price; and
(C) with respect to the holding of a security that
violates this Act, the fair market value of the
security at the time of the violation.
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