S.Amdt. 661Senate118th Congress (2023-2025)
S.Amdt. 661
Sponsored by
Sen. Mike Rounds (R-SD)
Submitted July 13, 2023
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Senate amendment submitted
July 13, 2023
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Senate amendment submitted
July 13, 2023
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Senate amendment submitted
July 13, 2023
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SA 661. Mr. ROUNDS (for himself, Mr. Tester, and Mr. Braun) submitted an amendment intended to be proposed by him to the bill S. 2226, to authorize appropriations for fiscal year 2024 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe military personnel strengths for such fiscal year, and for other purposes; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: DIVISION F--PROTECTING AMERICAN AGRICULTURE FROM FOREIGN ADVERSARIES ACT OF 2023 SEC. 6001. SHORT TITLE. This division may be cited as the ``Protecting American Agriculture from Foreign Adversaries Act of 2023''. SEC. 6002. DEFINITIONS. In this division: (1) Covered foreign person.-- (A) In general.--Except as provided by subparagraph (B), the term ``covered foreign person''-- (i) has the meaning given the term ``a person owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary'' in section 7.2 of title 15, Code of Federal Regulations (as in effect on the date of the enactment of the National Defense Authorization Act for Fiscal Year 2024), except that each reference to ``foreign adversary'' in that definition shall be deemed to be a reference to the government of a covered country; and (ii) includes an entity that-- (I) is registered in or organized under the laws of a covered country; (II) has a principal place of business in a covered country; or (III) has a subsidiary with a principal place of business in a covered country. (B) Exclusions.--The term ``covered person'' does not include a United States citizen or an alien lawfully admitted for permanent residence to the United States. (2) Covered country.--The term ``covered country'' means any of the following: (A) The People's Republic of China. (B) The Russian Federation. (C) The Islamic Republic of Iran. (D) The Democratic People's Republic of Korea. (3) FinCEN.--The term ``FinCEN'' means the Financial Crimes Enforcement Network of the Department of the Treasury. TITLE LXI--IDENTIFICATION OF SHELL CORPORATIONS SEC. 6101. MODIFICATION OF FINCEN REPORTING REQUIREMENTS. (1) In general.--The Director of FinCEN shall identify each reporting company, as defined in section 5336 of title 31, United States Code, that is owned by a covered foreign person. (2) Report.--Not later than two business days after identifying a reporting company under paragraph (1), the Director of FinCEN shall provide to the Committee on Foreign Investment in the United States and the Secretary of Agriculture information on such reporting company. TITLE LXII--FOREIGN PURCHASES OF AGRICULTURAL LAND AND AGRIBUSINESSES SEC. 6201. INVESTIGATIVE ACTIONS. (a) Investigative Actions.--Section 4 of the Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3503) is amended to read as follows: ``SEC. 4. INVESTIGATIVE ACTIONS. ``(a) In General.--The Secretary shall appoint an employee in the Senior Executive Service (as described in section 3131 of title 5, United States Code) of the Department of Agriculture to serve as Chief of Operations of Investigative Actions (referred to in this section as the `Chief of Operations'), who shall hire, appoint, and maintain additional employees to monitor compliance with the provisions of this Act. ``(b) Chief of Operations.--The Chief of Operations may serve in such position simultaneously with a concurrent position within the Department of Agriculture. ``(c) Security.--The Secretary shall-- ``(1) provide classified storage, meeting, and other spaces, as necessary, for personnel; and ``(2) assist personnel in obtaining security clearances. ``(d) Duties.--The Chief of Operations shall-- ``(1) monitor compliance with this Act; ``(2) refer noncompliance with this Act to the Secretary, the Farm Service Agency, and any other appropriate authority; [[Page S2754]] ``(3) conduct investigations, in coordination with the Department of Justice, the Federal Bureau of Investigation, the Department of the Treasury, the National Security Council, and State and local law enforcement agencies, on malign efforts-- ``(A) to steal agricultural knowledge and technology; and ``(B) to disrupt the United States agricultural base; ``(4) seek to enter into memoranda of agreement and memoranda of understanding with the Federal agencies described in paragraph (3)-- ``(A) to ensure compliance with this Act; and ``(B) to prevent the malign efforts described in that paragraph; ``(5) refer to the Committee on Foreign Investment in the United States transactions that-- ``(A) raise potential national security concerns; and ``(B) result in agricultural land acquisition by a foreign person that is a citizen of, or headquartered in, as applicable, a foreign entity of concern; and ``(6) publish annual reports that summarize the information contained in every report received by the Secretary under section 2 during the period covered by the report. ``(e) Administration.--The Chief of Operations shall report to-- ``(1) the Secretary; or ``(2) if delegated by the Secretary, to the Administrator of the Farm Service Agency.''. (b) Definition of Foreign Entity of Concern.--Section 9 of the Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3508) is amended-- (1) in the matter preceding paragraph (1), by striking ``For purposes of this Act--'' and inserting ``In this Act:''; (2) in each of paragraphs (1) through (6)-- (A) by striking ``the term'' and inserting ``The term''; and (B) by inserting a paragraph heading, the text of which comprises the term defined in that paragraph; (3) by redesignating paragraphs (2) through (6) as paragraphs (3), (4), (6), (7), and (8), respectively; (4) by inserting after paragraph (1) the following: ``(2) Foreign entity of concern.--The term `foreign entity of concern' has the meaning given the term `covered foreign person' in section 6002 of the Protecting American Agriculture from Foreign Adversaries Act of 2023.''; and (5) by inserting after paragraph (4) (as so redesignated) the following: ``(5) Malign effort.--The term `malign effort' means any hostile effort undertaken by, at the direction of, on behalf of, or with the substantial support of the government of a foreign entity of concern.''. (c) Reports.--The Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3501 et seq.) is amended by adding at the end the following: ``SEC. 11. REPORTS. ``(a) Initial Report.--Not later than 180 days after the date of enactment of this section, the Secretary shall submit to Congress a report that describes the progress of the Secretary in implementing the amendments made by subsections (a) and (b) of section 6201 of the Protecting American Agriculture from Foreign Adversaries Act of 2023. ``(b) Report on Tracking Covered Transactions.--Not later than 180 days after the date of enactment of this section, the Secretary shall submit to Congress a report on the feasibility of-- ``(1) establishing a mechanism for quantifying the threats posed by foreign entities of concern to United States food security, biosecurity, food safety, environmental protection, and national defense; and ``(2) building, and submitting to the Committee on Foreign Investment in the United States for further review, a rigorous discovery and review process to review transactions described in section 721(a)(4)(B)(vi) of the Defense Production Act of 1950 (50 U.S.C. 4565(a)(4)(B)(vi)). ``(c) Yearly Report.--Not later than 1 year after the date of enactment of this section, and annually thereafter for the following 10 years, the Secretary shall submit to Congress a report on the activities of the Secretary pursuant to this Act during the year covered by the report.''. SEC. 6202. PROHIBITION ON PURCHASE OR LEASE OF AGRICULTURAL LAND IN THE UNITED STATES BY PERSONS ASSOCIATED WITH CERTAIN FOREIGN GOVERNMENTS. (a) Definitions.--In this section: (1) Agricultural land.-- (A) In general.--The term ``agricultural land'' has the meaning given the term in section 9 of the Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3508). (B) Inclusion.--The term ``agricultural land'' includes land described in section 9(1) of the Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3508(1)) that is used for ranching purposes. (2) United states.--The term ``United States'' includes any State, territory, or possession of the United States. (b) Prohibition.--Notwithstanding any other provision of law, the President shall take such actions as may be necessary to prohibit the purchase or lease by covered foreign persons of-- (1) public agricultural land that is owned by the United States and administered by the head of any Federal department or agency, including the Secretary, the Secretary of the Interior, and the Secretary of Defense; or (2) private agricultural land located in the United States. (c) Implementation.--The President may exercise all authorities provided under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out subsection (b). (d) Penalties.--A person that knowingly violates, attempts to violate, conspires to violate, or causes a violation of subsection (b) or any regulation, license, or order issued to carry out that subsection shall be subject to the penalties set forth in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) to the same extent as a person that commits an unlawful act described in subsection (a) of that section. (e) Rule of Construction.--Nothing in this section may be construed-- (1) to prohibit or otherwise affect the purchase or lease of public or private agricultural land described in subsection (b) by any person other than a covered foreign person; (2) to prohibit or otherwise affect the use of public or private agricultural land described in subsection (b) that is transferred to or acquired by a person other than a covered foreign person from a covered foreign person; or (3) to require a covered foreign person that owns or leases public or private agricultural land described in subsection (b) as of the date of enactment of this Act to sell that land. SEC. 6203. TRANSPARENCY IN AGRICULTURAL FOREIGN INVESTMENT DISCLOSURE. (a) In General.--Section 7 of the Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3506) is amended to read as follows: ``SEC. 7. PUBLIC DATA SETS. ``(a) In General.--Not later than 2 years after the date of enactment of the Consolidated Appropriations Act, 2023 (Public Law 117-328), the Secretary shall publish in the internet database established under section 773 of division A of that Act human-readable and machine-readable data sets that-- ``(1) contain all data that the Secretary possesses relating to reporting under this Act from each report submitted to the Secretary under section 2; and ``(2) as soon as practicable, but not later than 30 days, after the date of receipt of any report under section 2, shall be updated with the data from that report. ``(b) Included Data.--The data sets established under subsection (a) shall include-- ``(1) a description of-- ``(A) the purchase price paid for, or any other consideration given for, each interest in agricultural land for which a report is submitted under section 2; and ``(B) updated estimated values of each interest in agricultural land described in subparagraph (A), as that information is made available to the Secretary, based on the most recently assessed value of the agricultural land or another comparable method determined by the Secretary; and ``(2) with respect to any agricultural land for which a report is submitted under section 2, updated descriptions of each foreign person who holds an interest in at least 1 percent of the agricultural land, as that information is made available to the Secretary, categorized as a majority owner or a minority owner that holds an interest in the agricultural land.''. (b) Deadline for Database Establishment.--Section 773 of division A of the Consolidated Appropriations Act, 2023 (Public Law 117-328), is amended, in the first proviso, by striking ``3 years'' and inserting ``2 years''. (c) Definition of Foreign Person.--Section 9(4) of the Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3508(4)) (as so redesignated) is amended-- (1) in subparagraph (C)(ii)(IV), by striking ``and'' at the end; (2) in subparagraph (D), by inserting ``and'' after the semicolon; and (3) by adding at the end the following: ``(E) any person, other than an individual or a government, that issues equity securities that are primarily traded on a foreign securities exchange within-- ``(i) Iran; ``(ii) North Korea; ``(iii) the People's Republic of China; or ``(iv) the Russian Federation;''. TITLE LXIII--COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED STATES SEC. 6301. CONSIDERATION OF FOOD INSECURITY IN DETERMINATIONS OF THE COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED STATES. Section 721(f) of the Defense Production Act of 1950 (50 U.S.C. 4565(f)) is amended-- (1) by redesignating paragraph (11) as paragraph (13); (2) by redesignating paragraphs (8) through (10) as paragraphs (9) through (11), respectively; (3) by inserting after paragraph (7) the following new paragraph: ``(8) the potential follow-on national security effects of the risks posed by the proposed or pending transaction to United States food security, food safety, biosecurity, environmental protection, or national defense;''; (4) in paragraph (11) (as so redesignated), by striking ``; and'' and inserting a semicolon; and (5) by inserting after paragraph (11) (as so redesignated) the following new paragraph: [[Page S2755]] ``(12) the potential effects of the proposed or pending transaction on the security of the food and agriculture systems of the United States, including any effects on the availability of, access to, or safety and quality of food; and''. SEC. 6302. INCLUSION OF SECRETARY OF AGRICULTURE ON THE COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED STATES. (a) In General.--Section 721(k)(2) of the Defense Production Act of 1950 (50 U.S.C. 4565(k)(2)) is amended-- (1) by redesignating subparagraphs (H), (I), and (J) as subparagraphs (I), (J), and (K), respectively; and (2) by inserting after subparagraph (G) the following new subparagraph: ``(H) The Secretary of Agriculture (nonvoting, ex officio).''. (b) Role of Secretary of Agriculture in CFIUS.--Section 721(k) of the Defense Production Act of 1950 (50 U.S.C. 4565(k)) is amended by adding at the end the following new paragraph: ``(8) Role of secretary of agriculture.--The Secretary of Agriculture shall participate in the review by the Committee of any covered transaction described in clause (vi), (vii), or (viii) of subsection (a)(4)(B).''. SEC. 6303. REVIEW OF AGRICULTURE-RELATED TRANSACTIONS BY COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED STATES. (a) In General.--Section 721 of the Defense Production Act of 1950 (50 U.S.C. 4565) is amended-- (1) in subsection (a)-- (A) in paragraph (4)-- (i) in subparagraph (A)-- (I) in clause (i), by striking ``; and'' and inserting a semicolon; (II) in clause (ii), by striking the period at the end and inserting ``; and''; and (III) by adding at the end the following: ``(iii) any transaction described in clause (vi) or (vii) of subparagraph (B) proposed or pending on or after the date of the enactment of this clause.''; (ii) in subparagraph (B), by adding at the end the following: ``(vi) Any other investment, subject to regulations prescribed under subparagraphs (D) and (E), by a foreign person in any unaffiliated United States business that is engaged in agriculture or biotechnology related to agriculture. ``(vii) Subject to subparagraphs (C) and (E), the purchase or lease by, or a concession to, a foreign person of private real estate that is-- ``(I) located in the United States; ``(II) used in agriculture; and ``(III) more than 320 acres or valued in excess of $5,000,000. ``(viii) Subject to subparagraph (C), the purchase or lease by, or a concession to, a covered person (as that term is defined in subsection (r)(3)) of private or public real estate in the United States if-- ``(I)(aa) the value of the purchase, lease, or concession-- ``(AA) exceeds $5,000,000; or ``(BB) in combination with the value of other such purchases or leases by, or concessions to, the same entity during the preceding 3 years, exceeds $5,000,000; or ``(bb) the real estate-- ``(AA) exceeds 320 acres; or ``(BB) in combination with other private or public real estate in the United States purchased or leased by, or for which a concession is provided to, the same entity during the preceding 3 years, exceeds 320 acres; and ``(II) the real estate is primarily used for-- ``(aa) agriculture, including raising of livestock and forestry; ``(bb) extraction of fossil fuels, natural gas, purchases or leases of renewable energy sources; or ``(cc) extraction of critical precursor materials for biological technology industries, information technology components, or national defense technologies.''; (iii) in subparagraph (C)(i), by striking ``subparagraph (B)(ii)'' and inserting ``clause (ii), (vii), or (viii) of subparagraph (B)''; (iv) in subparagraph (D)-- (I) in clause (i), by striking ``subparagraph (B)(iii)'' and inserting ``clauses (iii) and (vi) of subparagraph (B)''; (II) in clause (iii)(I), by striking ``subparagraph (B)(iii)'' and inserting ``clauses (iii) and (vi) of subparagraph (B)''; (III) in clause (iv)(I), by striking ``subparagraph (B)(iii)'' each place it appears and inserting ``clauses (iii) and (vi) of subparagraph (B)''; and (IV) in clause (v), by striking ``subparagraph (B)(iii)'' and inserting ``clauses (iii) and (vi) of subparagraph (B)''; and (v) in subparagraph (E), by striking ``clauses (ii) and (iii)'' and inserting ``clauses (ii), (iii), (iv), and (vii)''; and (B) by adding at the end the following: ``(14) Agriculture.--The term `agriculture' has the meaning given such term in section 3 of the Fair Labor Standards Act of 1938 (29 U.S.C. 203).''; and (2) by adding at the end the following: ``(r) Prohibition With Respect to Agricultural Companies and Real Estate.-- ``(1) In general.--Notwithstanding any other provision of this section, if the Committee, in conducting a review and investigation under this section, determines that a transaction described in clause (i), (vi), or (vii) of subsection (a)(4)(B) would result in control by a covered foreign person of or investment by a covered foreign person in a United States business engaged in agriculture or private real estate used in agriculture, the President shall prohibit such transaction. ``(2) Waiver.--The President may waive, on a case-by-case basis, the requirement to prohibit a transaction under paragraph (1), not less than 30 days after the President determines and reports to the relevant committees of jurisdiction that it is vital to the national security interests of the United States to waive such prohibition. ``(3) Defined terms.--In this subsection: ``(A) Covered person.-- ``(i) In general.--Except as provided by clause (ii), the term `covered person'-- ``(I) has the meaning given the term `a person owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary' in section 7.2 of title 15, Code of Federal Regulations (as in effect on the date of the enactment of the National Defense Authorization Act for Fiscal Year 2024), except that each reference to `foreign adversary' in that definition shall be deemed to be a reference to the government of a covered country; and ``(II) includes an entity that-- ``(aa) is registered in or organized under the laws of a covered country; ``(bb) has a principal place of business in a covered country; or ``(cc) has a subsidiary with a principal place of business in a covered country. ``(ii) Exclusions.--The term `covered person' does not include a United States citizen or an alien lawfully admitted for permanent residence to the United States. ``(B) Covered country.--The term `covered country' means any of the following: ``(i) The People's Republic of China. ``(ii) The Russian Federation. ``(iii) The Islamic Republic of Iran. ``(iv) The Democratic People's Republic of Korea.''. (b) Report Required.--Not later than 180 days after the date of the enactment of this Act, and every 180 days thereafter, the Secretary of Agriculture shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the risks that foreign purchases of United States businesses engaged in agriculture (as such term is defined in section 3 of the Fair Labor Standards Act of 1938 (29 U.S.C. 203)) pose to the agricultural sector of the United States. ______