Bill Overview
Title: Protecting American Business from Foreign Adversaries Act of 2022
Description: This bill requires specified companies and other entities associated with a foreign country to register an agent with the Department of Commerce for service of process (i.e., the legal process for notifying a defendant that legal action has been taken against them) in the United States. Specifically, a corporation or other commercial entity conducting business in the United States must register an agent if the entity (1) is organized under the laws of, or has its principal place of business in, a foreign country; (2) has a majority of shares held by an individual or a group of individuals who reside in a foreign country; or (3) is owned by individuals or entities who reside in or are headquartered outside of the United States and the majority of the entity's earnings are derived from commerce outside of the United States.
Sponsors: Rep. Hill, J. French [R-AR-2]
Target Audience
Population: People associated with foreign businesses operating in the United States
Estimated Size: 50000
- The bill targets foreign businesses operating in the United States, which includes entities organized under foreign laws or primarily owned by foreign individuals or groups.
- This legislation might affect companies with foreign investment or whose primary business operations or earnings are international.
- Such businesses will incur compliance costs due to the additional registration and legal service handling requirements.
Reasoning
- This policy affects primarily foreign businesses operating in the U.S. by imposing additional compliance costs and legal procedural requirements.
- U.S. employees working for these businesses might experience changes in job stability, role responsibilities, or increased regulatory burdens.
- The policy budget and size limits suggest a focus on legal and administrative processes, impacting sectors such as legal services more than the general American workforce.
- Individuals not directly involved with foreign businesses or those in unrelated domestic sectors may not see any impact.
- The policy, while targeting entities with foreign ties, indirectly influences U.S. citizens in sectors like legal, financial, and administrative support jobs.
Simulated Interviews
Legal Advisor (New York, NY)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- This policy will increase workload, which is good for business but demanding.
- Clients might seek more legal services to navigate this additional requirement.
- Overall, good for job security in the legal domain.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 6 |
| Year 20 | 7 | 6 |
Tech Company Employee (San Francisco, CA)
Age: 38 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- Concerned about potential job instability due to new compliance costs.
- May lead to reduced foreign investment in U.S. tech sector.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 4 | 6 |
| Year 5 | 4 | 6 |
| Year 10 | 4 | 5 |
| Year 20 | 5 | 5 |
Software Developer (Seattle, WA)
Age: 29 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- Uncertain impact, as company might handle registration efficiently.
- Doubtful any significant job changes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 7 | 8 |
| Year 10 | 7 | 8 |
| Year 20 | 8 | 8 |
Manager at Energy Firm (Houston, TX)
Age: 55 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- Compliance costs might affect profit margins.
- May lead to strategic operational adjustments.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 6 | 7 |
| Year 20 | 7 | 7 |
Customs Broker (Miami, FL)
Age: 42 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- Might see slight increase in administrative work.
- Minimal impact expected.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Financial Analyst (Chicago, IL)
Age: 31 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 4.0 years
Commonness: 6/20
Statement of Opinion:
- Policy might affect foreign investment strategies.
- Potentially more complex regulatory environment to consider.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 6 | 7 |
| Year 20 | 7 | 7 |
Marketing Specialist (Los Angeles, CA)
Age: 27 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 5/20
Statement of Opinion:
- Clients may face reduced budgets due to compliance costs.
- Uncertain about long-term implications on client relationships.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Tax Consultant (Boston, MA)
Age: 50 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 4/20
Statement of Opinion:
- Policy may generate more demand for my services.
- Could lead to more complex tax scenarios.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Retiree (Philadelphia, PA)
Age: 63 | Gender: female
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- No impact on my day-to-day life.
- Concerned only if it affects the broader economy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Owner of a Small Domestic Company (Atlanta, GA)
Age: 60 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- Unlikely to be impacted since all operations are domestic.
- Concern is more for the broader regulatory environment.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Cost Estimates
Year 1: $50000000 (Low: $40000000, High: $60000000)
Year 2: $25000000 (Low: $20000000, High: $30000000)
Year 3: $25000000 (Low: $20000000, High: $30000000)
Year 5: $25000000 (Low: $20000000, High: $30000000)
Year 10: $30000000 (Low: $25000000, High: $35000000)
Year 100: $50000000 (Low: $40000000, High: $60000000)
Key Considerations
- The cost and operational impact on foreign businesses, which could potentially discourage some from operating in the U.S.
- Potential legal challenges from foreign businesses or trade partners perceiving this as onerous.
- Need to balance national security concerns with an open and welcoming business climate to attract foreign investment.