H.R. 6306 — Introduced in House

I 118th CONGRESS 1st Session H. R. 6306 IN THE HOUSE OF REPRESENTATIVES November 8, 2023Mr. Mills introduced the following bill; which was referred to the Committee on Foreign Affairs A BILL To amend the State Department Basic Authorities Act of 1956 to prohibit the acquisition or lease of a consular or diplomatic post built or owned by an entity beneficially owned by the People’s Republic of China, and for other purposes. 1. Short title This Act may be cited as the Embassy Construction Integrity Act of 2023. 2. Prohibitions relating to consular and diplomatic posts built or owned by certain entities (a) Prohibitions Title I of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2651a et seq.) is amended by adding at the end the following: 64. Prohibitions relating to consular and diplomatic posts built or owned by certain entities (a) Prohibitions The Secretary of State (in this section referred to as the Secretary) may not— (1) acquire or lease a covered building— (A) with respect to which a covered entity performed covered construction on or after January 1, 1949; or (B) in which a covered entity has an ownership interest; or (2) authorize a covered entity to perform covered construction with respect to a covered building, including pursuant to a contract or other agreement. (b) Notification of violations Not later than 7 days after becoming aware of a violation of subsection (a), the Secretary shall notify the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate of such violation. (c) Definitions In this section: (1) Beneficial owner The term beneficial owner— (A) means, with respect to an entity, an entity that, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise— (i) exercises substantial control over the entity; or (ii) owns or controls not less than 25 percent of the ownership interest of an entity; and (B) does not include— (i) a minor child, as defined as a natural person under the age of 18; (ii) an individual acting as a nominee, intermediary, custodian, or agent on behalf of another individual; (iii) an individual acting solely as an employee of a corporation, limited liability company, or other similar entity and whose control over or economic benefits from such entity is derived solely from the employment status of the person; or (iv) an individual whose only interest in a corporation, limited liability company, or other similar entity is through a right of inheritance, and who does not exercise substantial control or effective control over the entity. (2) Covered building The term covered building means a building that is used or intended to be used by personnel, or for a function, of a consular or diplomatic post located outside of the United States. (3) Covered construction The term covered construction— (A) means any construction, development, conversion, extension, alteration, repair, or maintenance performed with respect to a building; and (B) includes the installation or maintenance of electrical, plumbing, heating, ventilation, air conditioning, communication, fire protection, and energy management systems with respect to such building. (4) Covered entity The term covered entity means an entity of which the government of the People’s Republic of China, or an agent or instrumentality of the government of the People’s Republic of China, is a beneficial owner. . (b) Applicability (1) In general Section 64 of the State Department Basic Authorities Act of 1956, as added by subsection (a), shall apply with respect to the following: (A) Acquisitions of covered buildings occurring on or after the date of enactment of this Act. (B) Leases of covered buildings entered into on or after such date of enactment. (C) Authorizations for the performance of covered construction made on or after such date of enactment. (2) Definitions In this subsection, the terms covered building and covered construction have the meanings given such terms in subsection (c) of such section 64.