Embassy Construction Integrity Act of 2023

The core obligation changed from an absolute prohibition ('may not acquire or lease') to a softer duty to 'take such steps as may be necessary to avoid or minimize' acquiring or leasing covered buildings. This means the Secretary can still proceed with such actions if they determine it is justified.

Notifications to Congress must now include a determination of whether the inconsistent action serves the national security interest, identification of the interest advanced, a detailed explanation, and any mitigation actions taken or planned.

The construction restriction was narrowed from prohibiting any authorization of covered construction by a covered entity to only restricting entering into or renewing contracts or agreements for such construction.

A separate applicability subsection that explicitly limited the provisions to actions occurring on or after the date of enactment was removed, though the notification provisions still reference post-enactment timing.

A new pre-notification requirement was added: the Secretary must notify Congress at least 7 days BEFORE entering into an acquisition, lease, or agreement that is inconsistent with the restriction. The original only required notification after a violation occurred.

The 'covered entity' definition was broadened: it no longer uses the term 'beneficial owner' with a specific 25 percent threshold. Instead it covers entities where the PRC government directly or indirectly owns or controls 'a significant percent' of ownership interest or 'otherwise exercises substantial control,' which is vaguer and potentially broader.

The detailed 'beneficial owner' definition was removed entirely, including its exclusions for minor children, nominees or intermediaries, employees whose interest derives solely from employment, and individuals with only inheritance-based interests.