The intent there is to deal with people trying to get around the provision via intermediary holding companies. At its core there still must be some ownership stake or controlling interest by a foreign national, whether direct or indirect.

Edit: the key parts of the bill that specify it applies only for controlling interests:

> Sec 2-2: CONTROLLING HOLDING.—The term “controlling holding” means a holding with the power, whether direct or indirect and whether exercised or not exercised, to determine, direct, or decide important matters affecting an entity.

> Sec 2-3-a (emphasis mine): COVERED HOLDING.—The term “covered holding”— means [...] a controlling holding held, directly or indirectly, in an ICTS covered holding entity by— [...]