Protecting Military Installations from Foreign Espionage Act

I 117TH CONGRESS 1ST SESSION H. R. 2728 To require the Committee on Foreign Investment in the United States to review any purchase or lease of real estate near a military installation or military airspace in the United States by a foreign person connected to, or subsidized by, the Russian Federation, the People’s Republic of China, the Islamic Republic of Iran, or the Democratic People’s Republic of Korea, and for other purposes. IN THE HOUSE OF REPRESENTATIVES APRIL 21, 2021 Mr. TONY GONZALES of Texas (for himself, Mr. JACKSON, and Mr. FALLON) introduced the following bill; which was referred to the Committee on Fi- nancial Services, and in addition to the Committees on Foreign Affairs, Energy and Commerce, Armed Services, and Transportation and Infra- structure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdic- tion of the committee concerned A BILL To require the Committee on Foreign Investment in the United States to review any purchase or lease of real estate near a military installation or military airspace in the United States by a foreign person connected to, or subsidized by, the Russian Federation, the People’s Republic of China, the Islamic Republic of Iran, or the Democratic People’s Republic of Korea, and for other purposes. VerDate Sep 11 2014 02:35 Jun 04, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H2728.IH H2728 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 2728 IH Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Protecting Military 4 Installations from Foreign Espionage Act’’. 5 SEC. 2. REVIEW BY COMMITTEE ON FOREIGN INVESTMENT 6 IN THE UNITED STATES OF REAL ESTATE 7 PURCHASES OR LEASES NEAR MILITARY IN- 8 STALLATIONS OR MILITARY AIRSPACE. 9 (a) INCLUSION IN DEFINITION OF COVERED TRANS- 10 ACTION.—Section 721(a)(4) of the Defense Production 11 Act of 1950 (50 U.S.C. 4565(a)(4)) is amended— 12 (1) in subparagraph (A)— 13 (A) in clause (i), by striking ‘‘; and’’ and 14 inserting a semicolon; 15 (B) in clause (ii), by striking the period at 16 the end and inserting ‘‘; and’’; and 17 (C) by adding at the end the following: 18 ‘‘(iii) any transaction described in 19 subparagraph (B)(vi) that is proposed, 20 pending, or completed on or after the date 21 of the enactment of the Protecting Military 22 Installations from Foreign Espionage 23 Act.’’; and 24 VerDate Sep 11 2014 02:35 Jun 04, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2728.IH H2728 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 2728 IH (2) in subparagraph (B), by adding at the end 1 the following: 2 ‘‘(vi) Notwithstanding clause (ii) or 3 subparagraph (C), the purchase or lease 4 by, or a concession to, a foreign person of 5 private or public real estate— 6 ‘‘(I) that is located in the United 7 States and within— 8 ‘‘(aa) 100 miles of a military 9 installation (as defined in section 10 2801(c)(4) of title 10, United 11 States Code); or 12 ‘‘(bb) 50 miles of— 13 ‘‘(AA) a military train- 14 ing route (as defined in sec- 15 tion 183a(h) of title 10, 16 United States Code); 17 ‘‘(BB) airspace des- 18 ignated as special use air- 19 space under part 73 of title 20 14, Code of Federal Regula- 21 tions (or a successor regula- 22 tion), and managed by the 23 Department of Defense; 24 VerDate Sep 11 2014 02:35 Jun 04, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2728.IH H2728 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 2728 IH ‘‘(CC) a controlled fir- 1 ing area (as defined in sec- 2 tion 1.1 of title 14, Code of 3 Federal Regulations (or a 4 successor regulation)) used 5 by the Department of De- 6 fense; or 7 ‘‘(DD) a military oper- 8 ations area (as defined in 9 section 1.1 of title 14, Code 10 of Federal Regulations (or a 11 successor regulation)); and 12 ‘‘(II) if the foreign person is 13 owned or controlled by, is acting for 14 or on behalf of, or receives subsidies 15 from— 16 ‘‘(aa) the Government of the 17 Russian Federation; 18 ‘‘(bb) the Government of the 19 People’s Republic of China; 20 ‘‘(cc) the Government of the 21 Islamic Republic of Iran; or 22 ‘‘(dd) the Government of the 23 Democratic People’s Republic of 24 Korea.’’. 25 VerDate Sep 11 2014 02:35 Jun 04, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2728.IH H2728 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 2728 IH (b) MANDATORY UNILATERAL INITIATION OF RE- 1 VIEWS.—Section 721(b)(1)(D) of the Defense Production 2 Act of 1950 (50 U.S.C. 4565(b)(1)(D)) is amended— 3 (1) in clause (iii), by redesignating subclauses 4 (I), (II), and (III) as items (aa), (bb), and (cc), re- 5 spectively, and by moving such items, as so redesig- 6 nated, 2 ems to the right; 7 (2) by redesignating clauses (i), (ii), and (iii) as 8 subclauses (I), (II), and (III), respectively, and by 9 moving such subclauses, as so redesignated, 2 ems 10 to the right; 11 (3) by striking ‘‘Subject to’’ and inserting the 12 following: 13 ‘‘(i) IN GENERAL.—Subject to’’; and 14 (4) by adding at the end the following: 15 ‘‘(ii) MANDATORY UNILATERAL INITI- 16 ATION OF CERTAIN TRANSACTIONS.—The 17 Committee shall initiate a review under 18 subparagraph (A) of a covered transaction 19 described in subsection (a)(4)(B)(vi).’’. 20 (c) CERTIFICATIONS TO CONGRESS.—Section 21 721(b)(3)(C)(iii) of the Defense Production Act of 1950 22 (50 U.S.C. 4565(b)(3)(C)(iii)) is amended— 23 (1) in subclause (IV), by striking ‘‘; and’’ and 24 inserting a semicolon; 25 VerDate Sep 11 2014 02:35 Jun 04, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2728.IH H2728 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 2728 IH (2) in subclause (V), by striking the period at 1 the end and inserting ‘‘; and’’; and 2 (3) by adding at the end the following: 3 ‘‘(VI) with respect to covered 4 transactions described in subsection 5 (a)(4)(B)(vi), to the members of the 6 Senate from the State in which the 7 military installation, military training 8 route, special use airspace, controlled 9 firing area, or military operations 10 area is located, and the member from 11 the Congressional District in which 12 such installation, route, airspace, or 13 area is located.’’. 14 SEC. 3. LIMITATION ON APPROVAL OF ENERGY PROJECTS 15 RELATED TO REVIEWS CONDUCTED BY COM- 16 MITTEE ON FOREIGN INVESTMENT IN THE 17 UNITED STATES. 18 (a) REVIEW BY SECRETARY OF DEFENSE.—Section 19 183a of title 10, United States Code, is amended— 20 (1) by redesignating subsections (f), (g), and 21 (h) as subsections (g), (h), and (i), respectively; and 22 (2) by inserting after subsection (e) the fol- 23 lowing new subsection (f): 24 VerDate Sep 11 2014 02:35 Jun 04, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2728.IH H2728 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 2728 IH ‘‘(f) SPECIAL RULE RELATING TO REVIEW BY COM- 1 MITTEE ON FOREIGN INVESTMENT OF THE UNITED 2 STATES.—(1) If, during the period during which the De- 3 partment of Defense is reviewing an application for an en- 4 ergy project filed with the Secretary of Transportation 5 under section 44718 of title 49, the purchase, lease, or 6 concession of real property on which the project is planned 7 to be located is under review or investigation by the Com- 8 mittee on Foreign Investment in the United States under 9 section 721 of the Defense Production Act of 1950 (50 10 U.S.C. 4565), the Secretary of Defense— 11 ‘‘(A) may not complete review of the project 12 until the Committee concludes action under such 13 section 721 with respect to the purchase, lease, or 14 concession; and 15 ‘‘(B) shall notify the Secretary of Transpor- 16 tation of the delay. 17 ‘‘(2) If the Committee on Foreign Investment in the 18 United States determines that the purchase, lease, or con- 19 cession of real property on which an energy project de- 20 scribed in paragraph (1) is planned to be located threatens 21 to impair the national security of the United States and 22 refers the purchase, lease, or concession to the President 23 for further action under section 721(d) of the Defense 24 VerDate Sep 11 2014 02:35 Jun 04, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2728.IH H2728 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 2728 IH Production Act of 1950 (50 U.S.C. 4565(d)), the Sec- 1 retary of Defense shall— 2 ‘‘(A) find under subsection (e)(1) that the 3 project would result in an unacceptable risk to the 4 national security of the United States; and 5 ‘‘(B) transmit that finding to the Secretary of 6 Transportation for inclusion in the report required 7 under section 44718(b)(2) of title 49.’’. 8 (b) REVIEW BY SECRETARY OF TRANSPORTATION.— 9 Section 44718 of title 49, United States Code, is amend- 10 ed— 11 (1) by redesignating subsection (h) as sub- 12 section (i); and 13 (2) by inserting after subsection (g) the fol- 14 lowing new subsection: 15 ‘‘(h) SPECIAL RULE RELATING TO REVIEW BY COM- 16 MITTEE ON FOREIGN INVESTMENT OF THE UNITED 17 STATES.—The Secretary of Transportation may not issue 18 a determination pursuant to this section with respect to 19 a proposed structure to be located on real property the 20 purchase, lease, or concession of which is under review or 21 investigation by the Committee on Foreign Investment in 22 the United States under section 721 of the Defense Pro- 23 duction Act of 1950 (50 U.S.C. 4565) until— 24 VerDate Sep 11 2014 02:35 Jun 04, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2728.IH H2728 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 2728 IH ‘‘(1) the Committee concludes action under 1 such section 721 with respect to the purchase, lease, 2 or concession; and 3 ‘‘(2) the Secretary of Defense— 4 ‘‘(A) issues a finding under section 183a(e) 5 of title 10; or 6 ‘‘(B) advises the Secretary of Transpor- 7 tation that no finding under section 183a(e) of 8 title 10 will be forthcoming.’’. 9 Æ VerDate Sep 11 2014 02:35 Jun 04, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6301 E:\BILLS\H2728.IH H2728 kjohnson on DSK79L0C42PROD with BILLS