#aafth ,,congress #b;d ,session ,in the ,house of ,representatives1 ,u4 ,s41 ,november #ag1 #bjbj ,,amendment3 ,that the bill from the ,senate 7,s4 #ahfi7 entitled ,an ,act to require the disclosure of ownership of high-security space leased to accommodate a ,federal agency1 and for other purposes41 do pass with the following ,strike out all after the enacting clause and insert3 #a4 ,short title2 findings 7a7 ,short title ,this ,act may be cited as the ,secure ,federal ,leases from ,espionage ,and ,suspicious ,entanglements ,act or the ,secure ,federal ,l,e,a,s,es ,act4 7b7 ,findings ,congress finds that-- 7#a7 the ,government ,accountability ,office has reported that the ,federal ,government often leases high-security space from private sector landlords2 7#b7 the ,general ,services ,administration collects highest- level and immediate ownership information through the ,system for ,award ,management1 but it is not currently required to collect beneficial ownership information and lacks an adequate system for doing so2 7#c7 the ,general ,services ,administration and ,federal agencies with leasing authority may not know if foreign owners have a stake in the buildings leased by the agencies1 either through foreign-incorporated legal entities or through ownership in ,united ,states-incorporated legal entities1 even when the leased space is used for classified operations or to store sensitive data2 and 7#d7 according to a report of the ,government ,accountability ,office1 dated ,january #bjag1 that examined the risks of foreign ownership of ,government-leased real estate1 leasing space in foreign-owned buildings could present security risks such as espionage and unauthorized cyber and physical access4 #b4 ,definitions ,in this ,act3 7#a7 ,beneficial owner 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term beneficial owner means1 with respect to a covered entity1 each natural person who1 directly or indirectly1 through any contract1 arrangement1 understanding1 relationship1 or otherwise-- 7i7 exercises control over the covered entity2 or 7ii7 has a substantial interest in or receives substantial economic benefits from the assets of the covered entity4 7,b7 ,exceptions ,the term beneficial owner does not include1 with respect to a covered entity-- 7i7 a minor child2 7ii7 a person acting as a nominee1 intermediary1 custodian1 or agent on behalf of another person2 7iii7 a person acting solely as an employee of the covered entity and whose control over or economic benefits from the covered entity derives solely from the employment status of the person2 7iv7 a person whose only interest in the covered entity is through a right of inheritance1 unless the person also meets the requirements of subparagraph 7,a72 or 7v7 a creditor of the covered entity1 unless the creditor also meets the requirements of subparagraph 7,a74 7,c7 ,anti-abuse rule ,the exceptions under subparagraph 7,b7 shall not apply if used for the purpose of evading1 circumventing1 or abusing the requirements of this ,act4 7#b7 ,control ,the term control means1 with respect to a covered entity-- 7,a7 having the authority or ability to determine how a covered entity is utilized2 or 7,b7 having some decision-making power for the use of a covered entity4 7#c7 ,covered entity ,the term covered entity means-- 7,a7 a person1 corporation1 company1 business association1 partnership1 society1 trust1 or any other nongovernmental entity1 organization1 or group2 or 7,b7 any governmental entity or instrumentality of a government4 7#d7 ,executive agency ,the term ,executive agency has the meaning given the term in section #aje of title #e1 ,united ,states ,code4 7#e7 ,federal agency ,the term ,federal agency means any ,executive agency or any establishment in the legislative or judicial branch of the ,government4 7#f7 ,federal lessee ,the term ,federal lessee-- 7,a7 means the ,administrator of ,general ,services1 the ,architect of the ,capitol1 or the head of any ,federal agency1 other than the ,department of ,defense1 that has independent statutory leasing authority2 and 7,b7 does not include the head of an element of the intelligence community4 7#g7 ,federal tenant ,the term ,federal tenant-- 7,a7 means a ,federal agency that is occupying or will occupy a high-security leased space for which a lease agreement has been secured on behalf of the ,federal agency2 and 7,b7 does not include an element of the intelligence community4 7#h7 ,foreign entity ,the term foreign entity means a covered entity that is headquartered or incorporated in a country that is not the ,united ,states4 7#i7 ,foreign person ,the term foreign person means an individual who is not a ,united ,states person4 7#aj7 ,high-security leased space ,the term high-security leased space means a space leased by a ,federal lessee that-- 7,a7 will be occupied by ,federal employees for nonmilitary activities2 and 7,b7 has a facility security level of ,,iii1 ,,iv1 or ,v1 as determined by the ,federal tenant in consultation with the ,interagency ,security ,committee1 the ,department of ,homeland ,security1 and the ,general ,services ,administration4 7#aa7 ,highest-level owner ,the term highest-level owner means the entity that owns or controls an immediate owner of the offeror of a lease1 or that owns or controls #a or more entities that control an immediate owner of the offeror4 7#ab7 ,immediate owner ,the term immediate owner means an entity1 other than the offeror of a lease1 that has direct control of the offeror1 including ownership or interlocking management1 identity of interests among family members1 shared facilities and equipment1 and the common use of employees4 7#ac7 ,intelligence community ,the term intelligence community has the meaning given the term in section #c of the ,national ,security ,act of #aidg 7#ej ,u4,s4,c4 #cjjc74 7#ad7 ,substantial economic benefits ,the term substantial economic benefits means1 with respect to a natural person described in paragraph 7#a77;,a77ii71 having an entitlement to the funds or assets of a covered entity that1 as a practical matter1 enables the person1 directly or indirectly1 to control1 manage1 or direct the covered entity4 7#ae7 ,united states person ,the term ,united ,states person means an individual who-- 7,a7 is a citizen of the ,united ,states2 or 7,b7 is an alien lawfully admitted for permanent residence in the ,united ,states4 7#af7 ,widely held ,the term widely held means a fund that has not less than #ajj natural persons as direct or indirect investors4 #c4 ,disclosure of ownership of high-security space leased for ,federal agencies 7a7 ,required disclosures ,before entering into a lease agreement with a covered entity or approving a novation agreement with a covered entity involving a change of ownership under a lease that will be used for high-security leased space1 a ,federal lessee shall require the covered entity to identify and disclose whether the immediate or highest-level owner of the leased space1 including an entity involved in the financing thereof1 is a foreign person or a foreign entity1 including the country associated with the ownership entity4 7b7 ,notification ,if a disclosure is made under subsection 7a71 the ,federal lessee shall notify the ,federal tenant of the building or other improvement that will be used for high-security space in writing1 and consult with the ,federal tenant1 regarding security concerns and necessary mitigation measures1 if any1 prior to award of the lease or approval of the novation agreement4 7c7 ,timing 7#a7 ,in general ,a ,federal lessee shall require a covered entity to provide the information described in subsection 7a7 when first submitting a proposal in response to a solicitation for offers issued by the ,federal lessee4 7#b7 ,updates ,a ,federal lessee shall require a covered entity to submit an update of the information described in subsection 7a7 annually1 beginning on the date that is #a year after the date on which the ,federal tenant began occupancy1 with information including-- 7,a7 the list of immediate or highest-level owners of the covered entity during the preceding #a-year period of ,federal occupancy2 or 7,b7 the information required to be provided relating to each such immediate or highest-level owner4 #d4 ,immediate1 highest-level1 and beneficial owners 7a7 ,plan ,the ,general ,services ,administration1 in coordination with the ,office of ,management and ,budget1 shall develop a ,government-wide plan for agencies 7as such term is defined in section #eea of title #e1 ,united ,states ,code7 for identifying all immediate1 highest-level1 or beneficial owners of high-security leased spaces before entering into a lease agreement with a covered entity for the accommodation of a ,federal tenant in a high-security leased space4 7b7 ,requirements 7#a7 ,contents ,the plan described in subsection 7a7 shall include a process for collecting and utilizing the following information on each immediate1 highest-level1 or beneficial owner of a high-security leased space3 7,a7 ,name4 7,b7 ,current residential or business street address4 7,c7 ,an identifying number or document that verifies identity as a ,united ,states person1 foreign person1 or foreign entity4 7#b7 ,disclosures and notifications ,the plan described in subsection 7a7 shall-- 7,a7 require the disclosure of any immediate1 highest-level1 or beneficial owner that is a foreign person2 7,b7 require that1 if the ,federal lessee is assigning the building or other improvement that will be used for high-security space to a ,federal tenant1 the ,federal tenant shall be notified of the disclosure described in subparagraph 7,a72 and 7,c7 exclude collecting ownership information on widely held pooled-investment vehicles1 mutual funds1 trusts1 or other pooled-investment vehicles4 7c7 ,report and implementation ,the ,general ,services ,administration shall-- 7#a7 not later than #a year after the date of enactment of this ,act1 submit the plan described in subsection 7a7 to the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate and the ,committee on ,transportation and ,infrastructure of the ,house of ,representatives2 7#b7 not later than #b years after the date of enactment of this ,act1 implement the plan described in subsection 7a72 and 7#c7 not later than #a year after the implementation of the plan described in subsection 7a71 and each year thereafter for years1 submit a report to the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate and the ,committee on ,transportation and ,infrastructure of the ,house of ,representatives on the status of the implementation of the plan1 including the number of disclosures made under subsection 7b77#b74 #e4 ,other security agreements for leased space ,a lease agreement between a ,federal lessee and a covered entity for the accommodation of a ,federal agency in a building or other improvement that will be used for high-security leased space shall include language that provides that-- 7#a7 the covered entity and any member of the property management company who may be responsible for oversight or maintenance of the high-security leased space shall not-- 7,a7 maintain access to the high-security leased space2 or 7,b7 have access to the high-security leased space without prior approval from the ,federal tenant2 7#b7 access to the high-security leased space or any property or information located within that space will only be granted by the ,federal tenant if the ,federal tenant determines that the access is clearly consistent with the mission and responsibilities of the ,federal tenant2 and 7#c7 the ,federal lessee shall have written procedures in place1 signed by the ,federal lessee and the covered entity1 governing access to the high-security leased space in case of emergencies that may damage the leased property4 #f4 ,agency notifications ,not later than #fj days after the date of enactment of this ,act1 the ,administrator of ,general ,services1 in consultation with the ,office of ,management and ,budget1 shall provide notification to relevant ,executive branch agencies with independent leasing authorities of the requirements of this ,act4 #g4 ,applicability ,except where otherwise provided1 this ,act shall apply with respect to any lease or novation agreement entered into on or after the date that is #f months after the date of enactment of this ,act4 ,clerk4