“(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.”.