119-s2048

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2048 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2048

 To prohibit the purchase of certain securities from covered entities, 
 and for other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 June 12, 2025

 Mr. Ricketts introduced the following bill; which was read twice and 
 referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

 A BILL

 To prohibit the purchase of certain securities from covered entities, 
 and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``PRC Military and Human Rights 
Capital Markets Sanctions Act of 2025''.

SEC. 2. PROHIBITION ON PURCHASE OF CERTAIN SECURITIES FROM COVERED 
 ENTITIES.

    (a) 

=== Definitions. ===
-

    (1) Covered entity.--
        (A) In general.--In this section, the term 
 ``covered entity'' means the following:
            (i) Any entity that is on the list of 
 Specially Designated Nationals and Blocked 
 Persons maintained by the Office of Foreign 
 Assets Control of the Department of the 
 Treasury, or any entity under common ownership 
 or control with such entity.
            (ii) Any entity on the Non-SDN Chinese 
 Military-Industrial Complex Companies List 
 (commonly known as the ``NS-CMIC List'') 
 maintained by the Office of Foreign Assets 
 Control of the Department of the Treasury 
 pursuant to Executive Order 13959 (50 U.S.C. 
 1701 note; relating to addressing the threat 
 from securities investments that finance 
 communist Chinese military companies), or any 
 entity under common ownership or control with 
 such entity.
            (iii) Any Chinese military company included 
 on the list maintained by the Department of 
 Defense under 

section 1260H

    (b) of the William 
 M.

    (Mac) Thornberry National Defense 
 Authorization Act for Fiscal Year 2021 (Public 
 Law 116-283; 10 U.S.C. 113 note) as of the date 
 of the enactment of this Act, or any entity 
 under common ownership or control with such 
 company.
            (iv) Any Chinese entity with respect to 
 which sanctions have been imposed under the 
 under the Global Magnitsky Human Rights 
 Accountability Act (22 U.S.C. 10101 et seq.), 
 or any entity under common ownership or control 
 with such entity.
            (v) Any Chinese entity that produces goods 
 that have been the subject of a withhold 
 release order issued pursuant to 

section 307 of 
 the Tariff Act of 1930 (19 U.S.C. 1307) during 
 the 2-year period ending on the date of the 
 enactment of this Act, or any entity under 
 common ownership or control of such entity.
            (vi) Any Chinese entity included on the 
 Entity List maintained by the Bureau of 
 Industry and Security of the Department of 
 Commerce and set forth in Supplement No. 4 to 
 part 744 of title 15, Code of Federal 
 Regulations, or any entity under common 
 ownership or control with such entity.
            (vii) Any Chinese entity on a list 
 maintained under clause
            (i) ,
            (ii) ,
            (iv) , or
            (v) of 

section 2
            (d) (2)
        (B) of the Act entitled ``An 
 Act to ensure that goods made with forced labor 
 in the Xinjiang Autonomous Region of the 
 People's Republic of China do not enter the 
 United States market, and for other purposes'', 
 approved December 23, 2021 (Public Law 117-78; 
 22 U.S.C. 6901 note), (commonly referred to as 
 the ``Uyghur Forced Labor Prevention Act''), or 
 any entity under common ownership or control 
 with such entity.
            (viii) Any Chinese entity on the Military 
 End-User List maintained by the Bureau of 
 Industry and Security and set forth in 
 Supplement No. 7 to part 744 of title 15, Code 
 of Federal Regulations, or any entity under 
 common ownership or control with such entity.
        (B) Control.--For purposes of subparagraph
        (A) , the 
 term ``control'' has the meaning given the term in 
 

section 230.405 of title 17, Code of Federal 
 Regulations.

    (2) United states person.--The term ``United States 
 person'' means--
        (A) a United States citizen or an alien lawfully 
 admitted for permanent residence to the United States;
        (B) an entity organized under the laws of the 
 United States or any jurisdiction within the United 
 States, including a foreign branch of such an entity; 
 or
            (C) any person in the United States.

    (b) Prohibition.--Not later than 90 days after the date of 
enactment of this Act, the President shall--

    (1) compile and maintain a single list of covered entities;

    (2) where possible, include in the list described in 
 paragraph

    (1) a unique identification number for each covered 
 entity, such as a Committee on Uniform Securities 
 Identification Procedures number or a Stock Exchange Daily 
 Official List number;

    (3) make the list described in paragraph

    (1) available to 
 the public; and

    (4) publicly identify and prohibit the purchase, sale, or 
 holding by a United States person of a--
        (A) publicly traded security issued by a covered 
 entity;
        (B) publicly traded security that is derivative of 
 a publicly traded security issued by a covered entity; 
 and
            (C) security that provides investment exposure to a 
 publicly traded security issued by a covered entity.
            (c) Divestment Required.--

    (1) In general.--Notwithstanding subsection

    (b) , a United 
 States person shall divest of all securities described in 
 subsection

    (b) --
        (A) with respect to a security identified by the 
 President under subsection

    (b) before the end of the 
 90-day period beginning on the date of enactment of 
 this Act, not later than 180 days after the date of 
 enactment of this Act; and
        (B) with respect to a security identified by the 
 President under subsection

    (b) after the end of the 90-
 day period beginning on the date of enactment of this 
 Act, not later than 180 days after the date of such 
 identification.

    (2) Facilitating divestment transactions.--Subsection

    (b) shall not apply to a United States person to the extent the 
 person is facilitating the divestment of securities described 
 in paragraph

    (1) .
            (d) Penalties.--

    (1) In general.--A United States person that violates, 
 attempts to violate, conspires to violate, or causes a 
 violation of this Act shall be subject to the following 
 penalties:
        (A) A civil penalty in an amount not to exceed the 
 greater of--
            (i) $250,000; or
            (ii) an amount that is twice the amount of 
 the transaction that is the basis of the 
 violation with respect to which the penalty is 
 imposed.
        (B) With respect to a United States person that 
 willfully violates, willfully attempts to violate, 
 willfully conspires to violate, or aids or abets in the 
 commission of a violation of this Act shall be subject 
 to a criminal penalty--
            (i) of a fine of not more than $1,000,000; 
 or
            (ii) if such United States person is an 
 individual, a fine of not more than $1,000,000, 
 a term of imprisonment of not more than 20 
 years, or both.

    (2) Amount of a transaction defined.--For purposes of 
 paragraph

    (1)
        (A)
            (ii) , the term ``amount of a transaction'' 
 means--
        (A) with respect to a purchase that violates this 
 Act, the purchase price;
        (B) with respect to a sale that violates this Act, 
 the sale price; and
            (C) with respect to the holding of a security that 
 violates this Act, the fair market value of the 
 security at the time of the violation.
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