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H.R. 6598, Secure Our Systems Against China’s Tactics Act

Summary

H.R. 6598, the Secure Our Systems Against China’s Tactics Act, introduced in the House of Representatives on April 23, 2020 by Green of Tennessee and referred to the Committee on Financial Services and, in addition, to the Committee on Foreign Affairs. It is a bill to provide guarantees to investors for investments in businesses at risk of predatory economic tactics by the Communist Party of the People’s Republic of China. Section 3 authorizes the Secretary of the Treasury to guarantee up to 50 percent of the costs of an investment in an eligible business, with $10,000,000,000 redirected from funds under section 4003(b)(4) of the CARES Act (Public Law 116–136). The bill also sets criteria, a report requirement, limitations on recovery and a definition of eligible business.

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Issuer
Congressional materials
Document type
Bills Bills 116Hr6598Ih Bills 116Hr6598Ih
Case
Bills Bills 116Hr6598Ih Bills 116Hr6598Ih

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“H.R. 6598, Secure Our Systems Against China’s Tactics Act.” Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-116hr6598ih-bills-116hr6598ih/, SHA-256 af86bcdc107970c722522d7c528428ad3c16a7c592ec3bc2252ef34adfb5b5d2.

Full text

                                                                                                                                                                          I




                                                                       116TH CONGRESS
                                                                          2D SESSION
                                                                                                             H. R. 6598
                                                                       To preserve national security by providing guarantees to investors for invest-
                                                                           ments in businesses at risk of predatory economic tactics by the Com-
                                                                           munist Party of the People’s Republic of China, and for other purposes.




                                                                                     IN THE HOUSE OF REPRESENTATIVES
                                                                                                      APRIL 23, 2020
                                                                       Mr. GREEN of Tennessee 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 preserve national security by providing guarantees to
                                                                          investors for investments in businesses at risk of preda-
                                                                          tory economic tactics by the Communist Party of the
                                                                          People’s Republic of China, and for other purposes.

                                                                         1               Be it enacted by the Senate and House of Representa-
                                                                         2 tives of the United States of America in Congress assembled,
                                                                         3     SECTION 1. SHORT TITLE.

                                                                         4               This Act may be cited as the ‘‘Secure Our Systems
                                                                         5 Against China’s Tactics Act’’ or the ‘‘SOS ACT Act’’.




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                                                                         6     SEC. 2. SENSE OF CONGRESS.

                                                                         7               It is the sense of Congress that—


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                                                                         1                        (1) while the United States is committed to
                                                                         2               promoting cultural and technological exchange with
                                                                         3               other countries, it is our responsibility to protect the
                                                                         4               United States when channels for such exchange are
                                                                         5               exploited by adversaries; and
                                                                         6                        (2) the People’s Republic of China consistently
                                                                         7               seeks to exploit those channels, not only in its theft
                                                                         8               of intellectual property but also in its manipulation
                                                                         9               of lawful acquisition of companies in the United
                                                                       10                States in ways that directly support its military ob-
                                                                       11                jectives and threaten those of the United States.
                                                                       12      SEC. 3. GUARANTEES.

                                                                       13                (a) IN GENERAL.—The Secretary of the Treasury is
                                                                       14 authorized to make guarantees to investors to cover up
                                                                       15 to 50 percent of the costs of an investment in an eligible
                                                                       16 business made during the emergency period (as defined
                                                                       17 in paragraph (1)(B) of section 1135(g) of the Social Secu-
                                                                       18 rity Act (42 U.S.C. 1320b–5(g))).
                                                                       19                (b) CRITERIA FOR AWARDING GUARANTEES.—
                                                                       20                         (1) IN GENERAL.—In making guarantees pur-
                                                                       21                suant to subsection (a), the Secretary of the Treas-
                                                                       22                ury shall, in consultation with the Secretary of De-
                                                                       23                fense and the Secretary of Commerce, establish cri-




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                                                                       24                teria to award guarantees to investors.




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                                                                         1                        (2) NATIONAL SECURITY INTEREST.—In estab-
                                                                         2               lishing the criteria under paragraph (1), the Sec-
                                                                         3               retary of the Treasury shall, in consultation with the
                                                                         4               Secretary of Defense and the Secretary of State, de-
                                                                         5               termine            which          eligible           businesses             should   be
                                                                         6               prioritized based on the objectives of the 2018 Na-
                                                                         7               tional Defense Strategy.
                                                                         8                        (3) REPORT                REQUIRED.—Not                         later than 15
                                                                         9               days after the date of the enactment of this Act, the
                                                                       10                Secretary of the Treasury, the Secretary of Defense,
                                                                       11                and the Secretary of Commerce shall jointly submit
                                                                       12                to Congress a report outlining the criteria estab-
                                                                       13                lished under paragraph (1).
                                                                       14                (c) FUNDING.—In carrying out this section, the Sec-
                                                                       15 retary of the Treasury shall redirect, from the funds avail-
                                                                       16 able under section 4003(b)(4) of the CARES Act (Public
                                                                       17 Law 116–136), $10,000,000,000 to fund the guarantees
                                                                       18 under subsection (a).
                                                                       19                (d) DURATION.—The Secretary of the Treasury may
                                                                       20 make the guarantees authorized under subsection (a) dur-
                                                                       21 ing the period beginning on the date of the submission
                                                                       22 of the report required under subsection (b)(3) and ending
                                                                       23 on the date that is 1 year after the date of the enactment




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                                                                       24 of this Act.




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                                                                         1               (e) LIMITATIONS.—With respect to an investment
                                                                         2 guaranteed under this section by an investor in an eligible
                                                                         3 business, if such business fails—
                                                                         4                        (1) such investor may only receive monetary
                                                                         5               compensation for up to 3 years after the last day of
                                                                         6               the emergency period (as defined in paragraph
                                                                         7               (1)(B) of section 1135(g) of the Social Security Act
                                                                         8               (42 U.S.C. 1320b–5(g))), if the reason for the fail-
                                                                         9               ure of such business is reasonably related to issues
                                                                       10                stemming from COVID–19; and
                                                                       11                         (2) the Secretary of the Treasury shall deter-
                                                                       12                mine how much money such investor may recover
                                                                       13                and whether such investor may recover money before
                                                                       14                or after the liquidation of such business.
                                                                       15                (f) ELIGIBLE BUSINESS DEFINED.—In this section,
                                                                       16 the term ‘‘eligible business’’ means a company that—
                                                                       17                         (1) incurred losses as a result of COVID–19;
                                                                       18                         (2) advances a national security interest; and
                                                                       19                         (3) is susceptible to being purchased by an enti-
                                                                       20                ty from, associated with, or located within China (as
                                                                       21                defined in paragraph (1)(B) of section 1135(g) of
                                                                       22                the Social Security Act (42 U.S.C. 1320b–5(g))).
                                                                                                                                  Æ




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