(i) In General
The Secretary of Homeland Security is prohibited from allowing any person to be involved with any regional center, new commercial enterprise, or job-creating entity if: (I) the person has been found to have committed: (aa) a criminal or civil offense involving fraud or deceit within the previous 10 years; (bb) a civil offense involving fraud or deceit resulting in a liability exceeding $1,000,000; or (cc) a crime for which the person was convicted and sentenced to imprisonment exceeding 1 year; (II) the person is subject to a final order, during any penalty duration, from a State securities commission or similar entity, based on a violation of laws prohibiting fraudulent, manipulative, or deceptive conduct, or prohibiting the person from association with regulated entities, appearing before regulatory bodies, or engaging in certain financial activities; (III) the Secretary determines the person is involved in illicit activities such as trafficking, espionage, money laundering, terrorism, human trafficking, human rights violations, or violations of foreign financial transaction laws; (IV) the person is listed on the Department of Justice's List of Currently Disciplined Practitioners or has received public discipline related to fraud or deceit by a State bar association in the past 10 years.
(ii) Foreign Involvement in Regional Center Program
(I) Lawful Status Required Only U.S. nationals or lawful permanent residents may be involved with a regional center, and they must not be subject to rescission or removal proceedings. (II) Foreign Governments No foreign government entity or its representatives may provide capital to or be involved in the ownership or administration of a regional center, new commercial enterprise, or job-creating entity. However, investment funds owned by foreign sovereign wealth funds or state-owned enterprises permitted to do business in the U.S. may have ownership stakes in job-creating entities not directly affiliated with a regional center. (III) Rulemaking The Secretary must issue regulations implementing these provisions within 270 days of March 15, 2022.
(iii) Information Required
The Secretary of Homeland Security: (I) may require attestations, information, and biometric data from regional centers, new commercial enterprises, affiliated entities, and individuals involved to ensure compliance; (II) must conduct criminal and background checks as needed to verify compliance; (III) may require information and checks for any job-creating entity and individuals if there's reason to believe they're not in compliance.
(iv) Termination
The Secretary may suspend or terminate the designation or participation of any entity involved in the program if they knowingly involve ineligible persons, fail to provide requested information, or provide false information. Such actions are limited to entities engaged in prohibited activities. (aa) Notification: The Secretary must inform entities if any involved persons are found non-compliant, unless prohibited by law. (bb) Failure to Respond: Failure to remove non-compliant persons within 30 days of notification constitutes knowledge of violation.
(v) Definition of Persons Involved
For this paragraph, a person is considered involved if they hold a substantive authority position directly or indirectly managing funds acquired through the program. This includes principals, representatives, administrators, owners, officers, board members, managers, executives, partners, fiduciaries, agents, or similar roles in relevant entities
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