Cage the Paper Tiger Act of 2020

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6916 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6916

    To prohibit the listing of certain firms on national securities
 exchanges, to provide for expensing of costs directly connected with
 moving manufacturing from China to the United States, to establish a
    counterintelligence vetting task force, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 15, 2020

  Mr. Walker introduced the following bill; which was referred to the
 Committee on Homeland Security, and in addition to the Committees on
Ways and Means, and Financial Services, 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 prohibit the listing of certain firms on national securities
 exchanges, to provide for expensing of costs directly connected with
 moving manufacturing from China to the United States, to establish a
    counterintelligence vetting task force, 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 ``Cage the Paper Tiger Act of 2020''.

SEC. 2. PROHIBITION AGAINST THE LISTING OF CERTAIN FIRMS ON NATIONAL
              SECURITIES EXCHANGES.

    (a) In General.--Section 6(b) of the Securities Exchange Act of
1934 (15 U.S.C. 78f(b)) is amended by adding at the end the following:
            ``(11)(A) The rules of the exchange prohibit the initial
        listing, after the date of enactment of this paragraph, of any
        security of an issuer if the registration statement filed with
        the Commission for such security includes an audit report
        prepared by a covered foreign public accounting firm.
            ``(B) Nothing in subparagraph (A) may be construed to
        prevent an exchange from listing a security on the exchange on
        or after the date of enactment of this paragraph if that
        security was listed on the exchange or a national securities
        exchange before the date of enactment of this paragraph.
            ``(C) In this paragraph--
                    ``(i) the term `audit report' has the meaning given
                the term in section 2(a) of the Sarbanes-Oxley Act of
                2002 (15 U.S.C. 7201(a));
                    ``(ii) the term `covered foreign public accounting
                firm' means a foreign public accounting firm that the
                Public Company Accounting Oversight Board is unable to
                inspect or investigate under the Sarbanes-Oxley Act of
                2002 (15 U.S.C. 7201 et seq.) because of a position
                taken by an authority outside of the United States; and
                    ``(iii) the term `foreign public accounting firm'
                has the meaning given the term in section 106(g) of the
                Sarbanes-Oxley Act of 2002 (15 U.S.C. 7216(g)).''.
    (b) Rules.--
            (1) Proposals.--Not later than 90 days after the date of
        enactment of this Act, each national securities exchange shall
        file with the Commission any proposed change to the rules of
        the exchange that is required as a result of the amendments
        made by this section.
            (2) Adoption.--Not later than 1 year after the date of
        enactment of this Act, each national securities exchange shall
        have each proposed change described in paragraph (1) approved
        by the Commission.

SEC. 3. EXPENSING OF COSTS DIRECTLY CONNECTED WITH MOVING MANUFACTURING
              FROM CHINA TO THE UNITED STATES.

    (a) In General.--Part VI of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after section
179E the following new section:

``SEC. 179F. ELECTION TO EXPENSE CERTAIN ASSETS DIRECTLY CONNECTED TO
              MOVING MANUFACTURING FROM CHINA TO THE UNITED STATES.

    ``(a) In General.--A specified taxpayer may elect to treat amounts
paid or incurred for repatriation property as an expense which is not
chargeable to capital account. Any cost so treated shall be allowed as
a deduction for the taxable year in which such repatriation property is
placed in service.
    ``(b) Specified Taxpayer.--For purposes of this section, the term
`specified taxpayer' means any taxpayer engaged in the trade or
business of manufacturing any product if--
            ``(1) as of the date of the enactment of this section, such
        taxpayer manufactured such product in China, and
            ``(2) as of the date which is 3 years after the date that
        the repatriation property is placed in service--
                    ``(A) such taxpayer does not manufacture such
                product in China, and
                    ``(B) the quantity of such product manufactured in
                the United States by such taxpayer has increased
                (relative to such quantity determined as of the date of
                the enactment of this section) by an amount not less
                than the quantity of such product manufactured in China
                as of the date of the enactment of this section.
    ``(c) Repatriation Property.--For purposes of this section, the
term `repatriation property' means any property (including any real
property) if--
            ``(1) such property is used by the taxpayer in the United
        States to manufacture the product referred to in subsection
        (b),
            ``(2) the acquisition of such property by the taxpayer is
        directly connected to replacing the productive capacity lost by
        the taxpayer by reason of ceasing manufacturing of such product
        in China (as described in subsection (b)(2)(A)), and
            ``(3) such property is of a character which is subject to
        the allowance for depreciation provided in section 167.
    ``(d) Application of Certain Rules.--Rules similar to the rules of
subsection (c), and paragraphs (4) and (10) of subsection (d), of
section 179 shall apply for purposes of this section.''.
    (b) Clerical Amendment.--The table of sections for part VI of
subchapter B of chapter 1 of such Code is amended by inserting after
the item relating to section 179E the following new item:

``Sec. 179F. Election to expense certain assets directly connected to
                            moving manufacturing from China to the
                            United States.''.
    (c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act, in taxable years ending after such date.

SEC. 4. DEPARTMENT OF HOMELAND SECURITY COUNTERINTELLIGENCE VETTING
              TASK FORCE.

    (a) Establishment.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Homeland Security shall assign
personnel of the Department of Homeland Security to participate in a
counterintelligence vetting task force to make recommendations to
improve counterintelligence vetting for appropriate departmental
programs.
    (b) Personnel.--In carrying out subsection (a), the Secretary of
Homeland Security may assign personnel from any component of the
Department of Homeland Security the Secretary determines necessary to
participate in the task force established pursuant to such subsection.
    (c) Coordination.--In carrying out subsection (a), the Secretary of
Homeland Security may request participation in the task force
established pursuant to such subsection from other appropriate Federal
agencies.
    (d) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary of Homeland Security shall submit
to the Committee on Homeland Security of the House of Representatives
and the Committee on Homeland Security and Governmental Affairs of the
Senate a report on the recommendations made by the task force
established pursuant to subsection (a).

SEC. 5. COUNTERINTELLIGENCE TRAINING AND VETTING.

    (a) In General.--Not later than 180 days after the date of the
enactment of this Act, in carrying out the program administered
pursuant to section 442(a)(4) of the Homeland Security Act (6 U.S.C.
252(a)(4)), the Secretary of Homeland Security shall develop a
counterintelligence awareness training program and require
participation in such program from appropriate faculty, as determined
by the Secretary in consultation with the Homeland Security Academic
Advisory Council (established pursuant to section 871 of the Homeland
Security Act of 2002 (6 U.S.C. 451)), from approved institutions of
higher education, other approved educational institutions, and
designated exchange visitor programs in the United States.
    (b) Program Enhancements.--Not later than one year after the date
of enactment of this Act, the Secretary of Homeland Security shall make
the following enhancements to the program administered pursuant to
section 442(a)(4) of the Homeland Security Act (6 U.S.C. 252(a)(4)):
            (1) Identify degrees and fields of study determined to be
        sensitive for homeland security and counterintelligence
        purposes.
            (2) Update the information to be collected to include any
        changes to the degree programs, if applicable, and fields of
        study.
            (3) Make any other enhancements determined appropriate by
        the Secretary to improve counterintelligence vetting
        capabilities.
    (c) Consultation.--In carrying out the identification required
pursuant to subsection (b)(1), the Secretary of Homeland Security shall
consult with the Secretary of State to ensure the degrees and field of
study determined to be sensitive for homeland security and
counterintelligence purposes referred to in such subsection are
aligned, to the greatest extent practicable, between the Department of
Homeland Security and the Department of State.
    (d) Definitions.--
            (1) Approved institution of higher education.--The term
        ``approved institution of higher education'' has the meaning
        given such term in section 641(h) of the Illegal Immigration
        Reform and Immigrant Responsibility Act of 1996 (8 U.S.C.
        1372).
            (2) Designated exchange visitor program.--The term
        ``designated exchange visitor program'' has the meaning given
        such term in section 641(h) of the Illegal Immigration Reform
        and Immigrant Responsibility Act of 1996 (8 U.S.C. 1372).
            (3) Other approved educational institution.--The term
        ``other approved educational institution'' has the meaning
        given such term in section 641(h) of the Illegal Immigration
        Reform and Immigrant Responsibility Act of 1996 (8 U.S.C.
        1372).

SEC. 6. HOMELAND SECURITY ACADEMIC ADVISORY COUNCIL.

    (a) In General.--Not later than 30 days after the date of the
enactment of this Act, the Secretary of Homeland Security shall convene
a meeting of the Homeland Security Academic Advisory Council to seek
advice and recommendations from the Council on the counterintelligence
awareness training and appropriate faculty designated to receive such
training required under section 5.
    (b) Notification.--Not later than September 1, 2020, the Secretary
of Homeland Security shall notify the Committee on Homeland Security of
the House of Representatives and the Committee on Homeland Security and
Governmental Affairs of the Senate if the Secretary determines to not
extend the existence of the Homeland Security Academic Advisory
Council.
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