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[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2098 Reported in Senate (RS)]

<DOC>

                                                       Calendar No. 426
115th CONGRESS
  2d Session
                                S. 2098

To modernize and strengthen the Committee on Foreign Investment in the 
    United States to more effectively guard against the risk to the 
   national security of the United States posed by certain types of 
              foreign investment, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            November 8, 2017

  Mr. Cornyn (for himself, Mrs. Feinstein, Mr. Burr, Mr. Peters, Mr. 
    Rubio, Ms. Klobuchar, Mr. Scott, Mr. Barrasso, Mr. Manchin, Mr. 
 Lankford, Ms. Collins, Ms. Baldwin, and Mr. Sullivan) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Banking, Housing, and Urban Affairs

                              May 22, 2018

 Reported by Mr. Crapo, with an amendment and an amendment to the title
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL

 
To modernize and strengthen the Committee on Foreign Investment in the 
    United States to more effectively guard against the risk to the 
   national security of the United States posed by certain types of 
              foreign investment, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``Foreign 
Investment Risk Review Modernization Act of 2017''.</DELETED>
<DELETED>    (b) Table of Contents.--The table of contents for this Act 
is as follows:</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
<DELETED>Sec. 2. Sense of Congress.
<DELETED>Sec. 3. Definitions.
<DELETED>Sec. 4. Inclusion of partnership and side agreements in 
                            notice.
<DELETED>Sec. 5. Declarations relating to certain covered transactions.
<DELETED>Sec. 6. Stipulations regarding transactions.
<DELETED>Sec. 7. Authority for unilateral initiation of reviews.
<DELETED>Sec. 8. Timing for reviews and investigations.
<DELETED>Sec. 9. Monitoring of non-notified and non-declared 
                            transactions.
<DELETED>Sec. 10. Submission of certifications to Congress.
<DELETED>Sec. 11. Analysis by Director of National Intelligence.
<DELETED>Sec. 12. Information sharing.
<DELETED>Sec. 13. Action by the President.
<DELETED>Sec. 14. Judicial review procedures.
<DELETED>Sec. 15. Factors to be considered.
<DELETED>Sec. 16. Actions by the Committee to address national security 
                            risks.
<DELETED>Sec. 17. Modification of annual report.
<DELETED>Sec. 18. Certification of notices and information.
<DELETED>Sec. 19. Funding.
<DELETED>Sec. 20. Centralization of certain Committee functions.
<DELETED>Sec. 21. Unified budget request.
<DELETED>Sec. 22. Special hiring authority.
<DELETED>Sec. 23. Conforming amendments.
<DELETED>Sec. 24. Assessment of need for additional resources for 
                            Committee.
<DELETED>Sec. 25. Authorization for Defense Advanced Research Projects 
                            Agency to limit foreign access to 
                            technology through contracts and grant 
                            agreements.
<DELETED>Sec. 26. Effective date.
<DELETED>Sec. 27. Severability.

<DELETED>SEC. 2. SENSE OF CONGRESS.</DELETED>

<DELETED>    It is the sense of Congress that--</DELETED>
        <DELETED>    (1) foreign investment provides substantial 
        economic benefits to the United States, including the promotion 
        of economic growth, productivity, competitiveness, and job 
        creation, and the majority of foreign investment transactions 
        pose little or no risk to the national security of the United 
        States, especially when those investments are truly passive in 
        nature;</DELETED>
        <DELETED>    (2) maintaining the commitment of the United 
        States to open and fair investment policy also encourages other 
        countries to reciprocate and helps open new foreign markets for 
        United States businesses and their products;</DELETED>
        <DELETED>    (3) it should continue to be the policy of the 
        United States to enthusiastically welcome and support foreign 
        investment, consistent with the protection of national 
        security;</DELETED>
        <DELETED>    (4) at the same time, the national security 
        landscape has shifted in recent years, and so have the nature 
        of the investments that pose the greatest potential risk to 
        national security, which warrants a modernization of the 
        processes and authorities of the Committee on Foreign 
        Investment in the United States;</DELETED>
        <DELETED>    (5) the Committee on Foreign Investment in the 
        United States plays a critical role in protecting the national 
        security of the United States, and, therefore, it is essential 
        that the member agencies of the Committee are adequately 
        resourced and able to hire appropriately qualified individuals 
        in a timely manner, and that those individuals' security 
        clearances are processed as a high priority;</DELETED>
        <DELETED>    (6) the President should conduct a more robust 
        international outreach effort to urge and help allies and 
        partners of the United States to establish processes that 
        parallel the Committee on Foreign Investment in the United 
        States to screen foreign investments for national security 
        risks and to facilitate coordination; and</DELETED>
        <DELETED>    (7) the President should lead a collaborative 
        effort with allies and partners of the United States to develop 
        a new, stronger multilateral export control regime, aimed to 
        address the unprecedented industrial policies of certain 
        countries of special concern, including aggressive efforts to 
        acquire United States technology, and the blending of civil and 
        military programs.</DELETED>

<DELETED>SEC. 3. DEFINITIONS.</DELETED>

<DELETED>    Section 721(a) of the Defense Production Act of 1950 (50 
U.S.C. 4565(a)) is amended to read as follows:</DELETED>
<DELETED>    ``(a) Definitions.--In this section:</DELETED>
        <DELETED>    ``(1) Access.--The term `access' means the ability 
        and opportunity to obtain information, subject to regulations 
        prescribed by the Committee.</DELETED>
        <DELETED>    ``(2) Committee; chairperson.--The terms 
        `Committee' and `chairperson' mean the Committee on Foreign 
        Investment in the United States and the chairperson thereof, 
        respectively.</DELETED>
        <DELETED>    ``(3) Control.--The term `control' means the power 
        to determine, direct, or decide important matters affecting an 
        entity, subject to regulations prescribed by the 
        Committee.</DELETED>
        <DELETED>    ``(4) Country of special concern.--</DELETED>
                <DELETED>    ``(A) In general.--The term `country of 
                special concern' means a country that poses a 
                significant threat to the national security interests 
                of the United States.</DELETED>
                <DELETED>    ``(B) Rule of construction.--This 
                paragraph shall not be construed to require the 
                Committee to maintain a list of countries of special 
                concern.</DELETED>
        <DELETED>    ``(5) Covered transaction.--</DELETED>
                <DELETED>    ``(A) In general.--Except as otherwise 
                provided, the term `covered transaction' means any 
                transaction described in subparagraph (B) that is 
                proposed, pending, or completed on or after the date of 
                the enactment of the Foreign Investment Risk Review 
                Modernization Act of 2017.</DELETED>
                <DELETED>    ``(B) Transactions described.--A 
                transaction described in this subparagraph is any of 
                the following:</DELETED>
                        <DELETED>    ``(i) Any merger, acquisition, or 
                        takeover that is proposed or pending after 
                        August 23, 1988, by or with any foreign person 
                        that could result in foreign control of any 
                        United States business.</DELETED>
                        <DELETED>    ``(ii) The purchase or lease by a 
                        foreign person of private or public real estate 
                        that--</DELETED>
                                <DELETED>    ``(I) is located in the 
                                United States and is in close proximity 
                                to a United States military 
                                installation or to another facility or 
                                property of the United States 
                                Government that is sensitive for 
                                reasons relating to national security; 
                                and</DELETED>
                                <DELETED>    ``(II) meets such other 
                                criteria as the Committee prescribes by 
                                regulation.</DELETED>
                        <DELETED>    ``(iii) Any other investment 
                        (other than passive investment) by a foreign 
                        person in any United States critical technology 
                        company or United States critical 
                        infrastructure company, subject to regulations 
                        prescribed under subparagraph (C).</DELETED>
                        <DELETED>    ``(iv) Any change in the rights 
                        that a foreign person has with respect to a 
                        United States business in which the foreign 
                        person has an investment, if that change could 
                        result in--</DELETED>
                                <DELETED>    ``(I) foreign control of 
                                the United States business; 
                                or</DELETED>
                                <DELETED>    ``(II) an investment 
                                described in clause (iii).</DELETED>
                        <DELETED>    ``(v) The contribution (other than 
                        through an ordinary customer relationship) by a 
                        United States critical technology company of 
                        both intellectual property and associated 
                        support to a foreign person through any type of 
                        arrangement, such as a joint venture, subject 
                        to regulations prescribed under subparagraph 
                        (C).</DELETED>
                        <DELETED>    ``(vi) Any other transaction, 
                        transfer, agreement, or arrangement the 
                        structure of which is designed or intended to 
                        evade or circumvent the application of this 
                        section, subject to regulations prescribed by 
                        the Committee.</DELETED>
                <DELETED>    ``(C) Further definition through 
                regulations.--</DELETED>
                        <DELETED>    ``(i) Certain investments and 
                        contributions.--The Committee shall prescribe 
                        regulations further defining covered 
                        transactions described in clauses (iii) and (v) 
                        of subparagraph (B) by reference to the 
                        technology, sector, subsector, transaction 
                        type, or other characteristics of such 
                        transactions.</DELETED>
                        <DELETED>    ``(ii) Exemption for transactions 
                        from identified countries.--The Committee may, 
                        by regulation, define circumstances in which a 
                        transaction otherwise described in clause (ii), 
                        (iii), or (v) of subparagraph (B) is excluded 
                        from the definition of `covered transaction' if 
                        each foreign person that is a party to the 
                        transaction is organized under the laws of, or 
                        otherwise subject to the jurisdiction of, a 
                        country identified by the Committee for 
                        purposes of this clause based on criteria such 
                        as--</DELETED>
                                <DELETED>    ``(I) whether the United 
                                States has in effect with that country 
                                a mutual defense treaty;</DELETED>
                                <DELETED>    ``(II) whether the United 
                                States has in effect with that country 
                                a mutual arrangement to safeguard 
                                national security as it pertains to 
                                foreign investment;</DELETED>
                                <DELETED>    ``(III) the national 
                                security review process for foreign 
                                investment of that country; 
                                and</DELETED>
                                <DELETED>    ``(IV) any other criteria 
                                that the Committee determines to be 
                                appropriate.</DELETED>
                        <DELETED>    ``(iii) Exemption of certain 
                        contributions.--The Committee may, by 
                        regulation, define circumstances in which 
                        contributions otherwise described in 
                        subparagraph (B)(v) are excluded from the term 
                        `covered transaction' on the basis of a 
                        determination that other provisions of law are 
                        adequate to identify and address any potential 
                        national security risks posed by such 
                        contributions.</DELETED>
                        <DELETED>    ``(iv) Transfers of certain assets 
                        pursuant to bankruptcy proceedings or other 
                        defaults.--The Committee shall prescribe 
                        regulations to clarify that the term `covered 
                        transaction' includes any transaction described 
                        in subparagraph (B) that arises pursuant to a 
                        bankruptcy proceeding or other form of default 
                        on debt.</DELETED>
                <DELETED>    ``(D) Passive investment defined.--
                </DELETED>
                        <DELETED>    ``(i) In general.--For purposes of 
                        subparagraph (B)(iii), the term `passive 
                        investment' means an investment by a foreign 
                        person in a United States business--</DELETED>
                                <DELETED>    ``(I) that is not 
                                described in subparagraph 
                                (B)(i);</DELETED>
                                <DELETED>    ``(II) that does not 
                                afford the foreign person--</DELETED>
                                        <DELETED>    ``(aa) access to 
                                        any nonpublic technical 
                                        information in the possession 
                                        of the United States 
                                        business;</DELETED>
                                        <DELETED>    ``(bb) access to 
                                        any nontechnical information in 
                                        the possession of the United 
                                        States business that is not 
                                        available to all 
                                        investors;</DELETED>
                                        <DELETED>    ``(cc) membership 
                                        or observer rights on the board 
                                        of directors or equivalent 
                                        governing body of the United 
                                        States business or the right to 
                                        nominate an individual to such 
                                        a position; or</DELETED>
                                        <DELETED>    ``(dd) any 
                                        involvement, other than through 
                                        voting of shares, in 
                                        substantive decisionmaking 
                                        pertaining to any matter 
                                        involving the United States 
                                        business;</DELETED>
                                <DELETED>    ``(III) under which the 
                                foreign person and the United States 
                                business do not have a parallel 
                                strategic partnership or other material 
                                financial relationship, as described in 
                                regulations prescribed by the 
                                Committee; and</DELETED>
                                <DELETED>    ``(IV) that meets such 
                                other criteria as the Committee may 
                                prescribe by regulation.</DELETED>
                        <DELETED>    ``(ii) Nonpublic technical 
                        information defined.--For purposes of clause 
                        (i)(II)(aa), the term `nonpublic technical 
                        information'--</DELETED>
                                <DELETED>    ``(I) has the meaning 
                                given that term in regulations 
                                prescribed by the Committee; 
                                and</DELETED>
                                <DELETED>    ``(II) includes 
                                information (either by itself or in 
                                conjunction with other information to 
                                which a foreign person may have 
                                access)--</DELETED>
                                        <DELETED>    ``(aa) without 
                                        which critical technologies 
                                        cannot be designed, developed, 
                                        tested, produced, or 
                                        manufactured; and</DELETED>
                                        <DELETED>    ``(bb) in a 
                                        quantity sufficient to permit 
                                        the design, development, 
                                        testing, production, or 
                                        manufacturing of such 
                                        technologies.</DELETED>
                        <DELETED>    ``(iii) Nontechnical information 
                        defined.--For purposes of clause (i)(II)(bb), 
                        the term `nontechnical information' has the 
                        meaning given that term in regulations 
                        prescribed by the Committee.</DELETED>
                        <DELETED>    ``(iv) Effect of level of 
                        ownership interest.--A determination of whether 
                        an investment is a passive investment under 
                        clause (i) shall be made without regard to how 
                        low the level of ownership interest a foreign 
                        person would hold or acquire in a United States 
                        business would be as a result of the 
                        investment. The Committee may prescribe 
                        regulations specifying that any investment 
                        greater than a certain level or amount would 
                        not be considered a passive 
                        investment.</DELETED>
                        <DELETED>    ``(v) Regulations.--The Committee 
                        shall prescribe regulations providing guidance 
                        on the types of transactions that the Committee 
                        considers to be passive investment.</DELETED>
                <DELETED>    ``(E) Associated support defined.--For 
                purposes of subparagraph (B)(v), the term `associated 
                support' has the meaning given that term in regulations 
                prescribed by the Committee.</DELETED>
                <DELETED>    ``(F) United states critical 
                infrastructure company defined.--For purposes of 
                subparagraph (B), the term `United States critical 
                infrastructure company' means a United States business 
                that is, owns, operates, or primarily provides services 
                to, an entity or entities that operate within a 
                critical infrastructure sector or subsector, as defined 
                by regulations prescribed by the Committee.</DELETED>
                <DELETED>    ``(G) United states critical technology 
                company.--For purposes of subparagraph (B), the term 
                `United States critical technology company' means a 
                United States business that produces, trades in, 
                designs, tests, manufactures, services, or develops one 
                or more critical technologies, or a subset of such 
                technologies, as defined by regulations prescribed by 
                the Committee.</DELETED>
        <DELETED>    ``(6) Critical infrastructure.--The term `critical 
        infrastructure' means, subject to regulations prescribed by the 
        Committee, systems and assets, whether physical or virtual, so 
        vital to the United States that the incapacity or destruction 
        of such systems or assets would have a debilitating impact on 
        national security.</DELETED>
        <DELETED>    ``(7) Critical materials.--The term `critical 
        materials' means physical materials essential to national 
        security, subject to regulations prescribed by the 
        Committee.</DELETED>
        <DELETED>    ``(8) Critical technologies.--</DELETED>
                <DELETED>    ``(A) In general.--The term `critical 
                technologies' means technology, components, or 
                technology items that are essential or could be 
                essential to national security, identified for purposes 
                of this section pursuant to regulations prescribed by 
                the Committee.</DELETED>
                <DELETED>    ``(B) Inclusion of certain items.--The 
                term `critical technologies' includes the 
                following:</DELETED>
                        <DELETED>    ``(i) Defense articles or defense 
                        services included on the United States 
                        Munitions List set forth in the International 
                        Traffic in Arms Regulations under subchapter M 
                        of chapter I of title 22, Code of Federal 
                        Regulations.</DELETED>
                        <DELETED>    ``(ii) Items included on the 
                        Commerce Control List set forth in Supplement 
                        No. 1 to part 774 of the Export Administration 
                        Regulations under subchapter C of chapter VII 
                        of title 15, Code of Federal Regulations, and 
                        controlled--</DELETED>
                                <DELETED>    ``(I) pursuant to 
                                multilateral regimes, including for 
                                reasons relating to national security, 
                                chemical and biological weapons 
                                proliferation, nuclear 
                                nonproliferation, or missile 
                                technology; or</DELETED>
                                <DELETED>    ``(II) for reasons 
                                relating to regional stability or 
                                surreptitious listening.</DELETED>
                        <DELETED>    ``(iii) Specially designed and 
                        prepared nuclear equipment, parts and 
                        components, materials, software, and technology 
                        covered by part 810 of title 10, Code of 
                        Federal Regulations (relating to assistance to 
                        foreign atomic energy activities).</DELETED>
                        <DELETED>    ``(iv) Nuclear facilities, 
                        equipment, and material covered by part 110 of 
                        title 10, Code of Federal Regulations (relating 
                        to export and import of nuclear equipment and 
                        material).</DELETED>
                        <DELETED>    ``(v) Select agents and toxins 
                        covered by part 331 of title 7, Code of Federal 
                        Regulations, part 121 of title 9 of such Code, 
                        or part 73 of title 42 of such Code.</DELETED>
                        <DELETED>    ``(vi) Other emerging technologies 
                        that could be essential for maintaining or 
                        increasing the technological advantage of the 
                        United States over countries of special concern 
                        with respect to national defense, intelligence, 
                        or other areas of national security, or gaining 
                        such an advantage over such countries in areas 
                        where such an advantage may not currently 
                        exist.</DELETED>
        <DELETED>    ``(9) Foreign government-controlled transaction.--
        The term `foreign government-controlled transaction' means any 
        covered transaction that could result in the control of any 
        United States business by a foreign government or an entity 
        controlled by or acting on behalf of a foreign 
        government.</DELETED>
        <DELETED>    ``(10) Intellectual property.--The term 
        `intellectual property' has the meaning given that term in 
        regulations prescribed by the Committee.</DELETED>
        <DELETED>    ``(11) Intelligence community.--The term 
        `intelligence community' has the meaning given that term in 
        section 3(4) of the National Security Act of 1947 (50 U.S.C. 
        3003(4)).</DELETED>
        <DELETED>    ``(12) Investment.--The term `investment' means 
        the acquisition of equity interest, including contingent equity 
        interest, as further defined in regulations prescribed by the 
        Committee.</DELETED>
        <DELETED>    ``(13) Lead agency.--The term `lead agency' means 
        the agency or agencies designated as the lead agency or 
        agencies pursuant to subsection (k)(5).</DELETED>
        <DELETED>    ``(14) Malicious cyber-enabled activities.--The 
        term `malicious cyber-enabled activities' means any acts--
        </DELETED>
                <DELETED>    ``(A) primarily accomplished through or 
                facilitated by computers or other electronic 
                devices;</DELETED>
                <DELETED>    ``(B) that are reasonably likely to result 
                in, or materially contribute to, a significant threat 
                to the national security of the United States; 
                and</DELETED>
                <DELETED>    ``(C) that have the purpose or effect of--
                </DELETED>
                        <DELETED>    ``(i) significantly compromising 
                        the provision of services by one or more 
                        entities in a critical infrastructure 
                        sector;</DELETED>
                        <DELETED>    ``(ii) harming, or otherwise 
                        significantly compromising the provision of 
                        services by, a computer or network of computers 
                        that support one or more such 
                        entities;</DELETED>
                        <DELETED>    ``(iii) causing a significant 
                        disruption to the availability of a computer or 
                        network of computers; or</DELETED>
                        <DELETED>    ``(iv) causing a significant 
                        misappropriation of funds or economic 
                        resources, trade secrets, personally 
                        identifiable information, or financial 
                        information.</DELETED>
        <DELETED>    ``(15) National security.--The term `national 
        security' shall be construed so as to include those issues 
        relating to `homeland security', including its application to 
        critical infrastructure.</DELETED>
        <DELETED>    ``(16) Party.--The term `party' has the meaning 
        given that term in regulations prescribed by the 
        Committee.</DELETED>
        <DELETED>    ``(17) United states.--The term `United States' 
        means the several States, the District of Columbia, and any 
        territory or possession of the United States.</DELETED>
        <DELETED>    ``(18) United states business.--The term `United 
        States business' means a person engaged in interstate commerce 
        in the United States.''.</DELETED>

<DELETED>SEC. 4. INCLUSION OF PARTNERSHIP AND SIDE AGREEMENTS IN 
              NOTICE.</DELETED>

<DELETED>    Section 721(b)(1)(C) of the Defense Production Act of 1950 
(50 U.S.C. 4565(b)(1)(C)) is amended by adding at the end the 
following:</DELETED>
                        <DELETED>    ``(iv) Inclusion of partnership 
                        and side agreements.--A written notice 
                        submitted under clause (i) by a party to a 
                        covered transaction shall include a copy of any 
                        partnership agreements, integration agreements, 
                        or other side agreements relating to the 
                        transaction, including any such agreements 
                        relating to the transfer of intellectual 
                        property, as specified in regulations 
                        prescribed by the Committee.''.</DELETED>

<DELETED>SEC. 5. DECLARATIONS RELATING TO CERTAIN COVERED 
              TRANSACTIONS.</DELETED>

<DELETED>    Section 721(b)(1)(C) of the Defense Production Act of 1950 
(50 U.S.C. 4565(b)(1)(C)), as amended by section 4, is further amended 
by adding at the end the following:</DELETED>
                        <DELETED>    ``(v) Declarations relating to 
                        certain covered transactions.--</DELETED>
                                <DELETED>    ``(I) Voluntary 
                                declarations.--Except as provided in 
                                this clause, a party to any covered 
                                transaction may submit to the Committee 
                                a declaration with basic information 
                                regarding the transaction instead of a 
                                written notice under clause 
                                (i).</DELETED>
                                <DELETED>    ``(II) Mandatory 
                                declarations.--</DELETED>
                                        <DELETED>    ``(aa) Certain 
                                        covered transactions with 
                                        foreign government interests.--
                                        The parties to a covered 
                                        transaction shall submit a 
                                        declaration described in 
                                        subclause (I) with respect to 
                                        the transaction if the 
                                        transaction involves the 
                                        acquisition of a voting 
                                        interest of at least 25 percent 
                                        in a United States business by 
                                        a foreign person in which a 
                                        foreign government owns, 
                                        directly or indirectly, at 
                                        least a 25-percent voting 
                                        interest.</DELETED>
                                        <DELETED>    ``(bb) Other 
                                        declarations required by 
                                        committee.--The Committee shall 
                                        require the submission of a 
                                        declaration described in 
                                        subclause (I) with respect to 
                                        any covered transaction 
                                        identified under regulations 
                                        prescribed by the Committee for 
                                        purposes of this item, at the 
                                        discretion of the Committee and 
                                        based on appropriate factors, 
                                        such as--</DELETED>

                                                <DELETED>    ``(AA) the 
                                                technology, industry, 
                                                economic sector, or 
                                                economic subsector in 
                                                which the United States 
                                                business that is a 
                                                party to the 
                                                transaction trades or 
                                                of which it is a 
                                                part;</DELETED>

                                                <DELETED>    ``(BB) the 
                                                difficulty of remedying 
                                                the harm to national 
                                                security that may 
                                                result from completion 
                                                of the transaction; 
                                                and</DELETED>

                                                <DELETED>    ``(CC) the 
                                                difficulty of obtaining 
                                                information on the type 
                                                of covered transaction 
                                                through other 
                                                means.</DELETED>

                                        <DELETED>    ``(cc) Submission 
                                        of written notice as an 
                                        alternative.--Parties to a 
                                        covered transaction for which a 
                                        declaration is required under 
                                        this subclause may instead 
                                        elect to submit a written 
                                        notice under clause 
                                        (i).</DELETED>
                                        <DELETED>    ``(dd) Timing of 
                                        submission.--</DELETED>

                                                <DELETED>    ``(AA) In 
                                                general.--A declaration 
                                                required to be 
                                                submitted with respect 
                                                to a covered 
                                                transaction by item 
                                                (aa) or (bb) shall be 
                                                submitted not later 
                                                than 45 days before the 
                                                completion of the 
                                                transaction.</DELETED>

                                                <DELETED>    ``(BB) 
                                                Written notice.--If, 
                                                pursuant to item (cc), 
                                                the parties to a 
                                                covered transaction 
                                                elect to submit a 
                                                written notice under 
                                                clause (i) instead of a 
                                                declaration under this 
                                                subclause, the written 
                                                notice shall be filed 
                                                not later than 90 days 
                                                before the completion 
                                                of the 
                                                transaction.</DELETED>

                                <DELETED>    ``(III) Penalties.--The 
                                Committee may impose a penalty pursuant 
                                to subsection (h)(3) with respect to a 
                                party that fails to comply with this 
                                clause.</DELETED>
                                <DELETED>    ``(IV) Committee response 
                                to declaration.--</DELETED>
                                        <DELETED>    ``(aa) In 
                                        general.--Upon receiving a 
                                        declaration under this clause 
                                        with respect to a transaction, 
                                        the Committee may, at its 
                                        discretion--</DELETED>

                                                <DELETED>    ``(AA) 
                                                request that the 
                                                parties to the 
                                                transaction file a 
                                                written notice under 
                                                clause (i);</DELETED>

                                                <DELETED>    ``(BB) 
                                                inform the parties to 
                                                the transaction that 
                                                the Committee is not 
                                                able to complete action 
                                                under this section with 
                                                respect to the 
                                                transaction on the 
                                                basis of the 
                                                declaration and that 
                                                the parties may file a 
                                                written notice under 
                                                clause (i) to seek 
                                                written notification 
                                                from the Committee that 
                                                the Committee has 
                                                completed all action 
                                                under this section with 
                                                respect to the 
                                                transaction;</DELETED>

                                                <DELETED>    ``(CC) 
                                                initiate a unilateral 
                                                review of the 
                                                transaction under 
                                                subparagraph (D); 
                                                or</DELETED>

                                                <DELETED>    ``(DD) 
                                                notify the parties in 
                                                writing that the 
                                                Committee has completed 
                                                all action under this 
                                                section with respect to 
                                                the 
                                                transaction.</DELETED>

                                        <DELETED>    ``(bb) Timing.--
                                        The Committee shall endeavor to 
                                        take action under item (aa) 
                                        within 30 days of receiving a 
                                        declaration under this 
                                        clause.</DELETED>
                                        <DELETED>    ``(cc) Rule of 
                                        construction.--Nothing in this 
                                        subclause (other than item 
                                        (aa)(CC)) shall be construed to 
                                        affect the authority of the 
                                        President or the Committee to 
                                        take any action authorized by 
                                        this section with respect to a 
                                        covered transaction.</DELETED>
                                <DELETED>    ``(V) Regulations.--The 
                                Committee shall prescribe regulations 
                                establishing requirements for 
                                declarations submitted under this 
                                clause. In prescribing such 
                                regulations, the Committee shall ensure 
                                that such declarations are submitted as 
                                abbreviated notifications that would 
                                not generally exceed 5 pages in 
                                length.''.</DELETED>

<DELETED>SEC. 6. STIPULATIONS REGARDING TRANSACTIONS.</DELETED>

<DELETED>    Section 721(b)(1)(C) of the Defense Production Act of 1950 
(50 U.S.C. 4565(b)(1)(C)), as amended by section 5, is further amended 
by adding at the end the following:</DELETED>
                        <DELETED>    ``(vi) Stipulations regarding 
                        transactions.--</DELETED>
                                <DELETED>    ``(I) In general.--In a 
                                written notice submitted under clause 
                                (i) or a declaration submitted under 
                                clause (v) with respect to a 
                                transaction, a party to the transaction 
                                may--</DELETED>
                                        <DELETED>    ``(aa) stipulate 
                                        that the transaction is a 
                                        covered transaction; 
                                        and</DELETED>
                                        <DELETED>    ``(bb) if the 
                                        party stipulates that the 
                                        transaction is a covered 
                                        transaction under item (aa), 
                                        stipulate that the transaction 
                                        is a foreign government-
                                        controlled 
                                        transaction.</DELETED>
                                <DELETED>    ``(II) Basis for 
                                stipulation.--A written notice 
                                submitted under clause (i) or a 
                                declaration submitted under clause (v) 
                                that includes a stipulation under 
                                subclause (I) shall include a 
                                description of the basis for the 
                                stipulation.''.</DELETED>

<DELETED>SEC. 7. AUTHORITY FOR UNILATERAL INITIATION OF 
              REVIEWS.</DELETED>

<DELETED>    Section 721(b)(1) of the Defense Production Act of 1950 
(50 U.S.C. 4565(b)(1)) is amended--</DELETED>
        <DELETED>    (1) by redesignating subparagraphs (E) and (F) as 
        subparagraphs (F) and (G), respectively;</DELETED>
        <DELETED>    (2) in subparagraph (D)--</DELETED>
                <DELETED>    (A) in clause (i), by inserting ``(other 
                than a covered transaction described in subparagraph 
                (E))'' after ``any covered transaction'';</DELETED>
                <DELETED>    (B) by striking clause (ii) and inserting 
                the following:</DELETED>
                        <DELETED>    ``(ii) any covered transaction 
                        described in subparagraph (E), if any party to 
                        the transaction submitted false or misleading 
                        material information to the Committee in 
                        connection with the Committee's consideration 
                        of the transaction or omitted material 
                        information, including material documents, from 
                        information submitted to the Committee; or''; 
                        and</DELETED>
                <DELETED>    (C) in clause (iii)--</DELETED>
                        <DELETED>    (i) in the matter preceding 
                        subclause (I), by striking ``any covered 
                        transaction that has previously been reviewed 
                        or investigated under this section,'' and 
                        inserting ``any covered transaction described 
                        in subparagraph (E),'';</DELETED>
                        <DELETED>    (ii) in subclause (I), by striking 
                        ``intentionally'';</DELETED>
                        <DELETED>    (iii) in subclause (II), by 
                        striking ``an intentional'' and inserting 
                        ``a''; and</DELETED>
                        <DELETED>    (iv) in subclause (III), by 
                        inserting ``adequate and appropriate'' before 
                        ``remedies or enforcement tools''; 
                        and</DELETED>
        <DELETED>    (3) by inserting after subparagraph (D) the 
        following:</DELETED>
                <DELETED>    ``(E) Covered transactions described.--A 
                covered transaction is described in this subparagraph 
                if--</DELETED>
                        <DELETED>    ``(i) the Committee has informed 
                        the parties to the transaction in writing that 
                        the Committee has completed all action under 
                        this section with respect to the transaction; 
                        or</DELETED>
                        <DELETED>    ``(ii) the President has announced 
                        a decision not to exercise the President's 
                        authority under subsection (d) with respect to 
                        the transaction.''.</DELETED>

<DELETED>SEC. 8. TIMING FOR REVIEWS AND INVESTIGATIONS.</DELETED>

<DELETED>    Section 721(b) of the Defense Production Act of 1950 (50 
U.S.C. 4565(b)), as amended by section 7, is further amended--
</DELETED>
        <DELETED>    (1) in paragraph (1)(F), by striking ``30'' and 
        inserting ``45'';</DELETED>
        <DELETED>    (2) in paragraph (2), by striking subparagraph (C) 
        and inserting the following:</DELETED>
                <DELETED>    ``(C) Timing.--</DELETED>
                        <DELETED>    ``(i) In general.--Except as 
                        provided in clause (ii), any investigation 
                        under subparagraph (A) shall be completed 
                        before the end of the 45-day period beginning 
                        on the date on which the investigation 
                        commenced.</DELETED>
                        <DELETED>    ``(ii) Extension for extraordinary 
                        circumstances.--</DELETED>
                                <DELETED>    ``(I) In general.--In 
                                extraordinary circumstances (as defined 
                                by the Committee in regulations), the 
                                chairperson may, at the request of the 
                                head of the lead agency, extend an 
                                investigation under subparagraph (A) 
                                for one 30-day period.</DELETED>
                                <DELETED>    ``(II) Nondelegation.--The 
                                authority of the chairperson and the 
                                head of the lead agency referred to in 
                                subclause (I) may not be delegated to 
                                any person other than the Deputy 
                                Secretary of the Treasury or the deputy 
                                head (or equivalent thereof) of the 
                                lead agency, as the case may 
                                be.</DELETED>
                                <DELETED>    ``(III) Notification to 
                                parties.--If the Committee extends the 
                                deadline under subclause (I) with 
                                respect to a covered transaction, the 
                                Committee shall notify the parties to 
                                the transaction of the extension.''; 
                                and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
        <DELETED>    ``(8) Tolling of deadlines during lapse in 
        appropriations.--Any deadline or time limitation under this 
        subsection shall be tolled during a lapse in 
        appropriations.''.</DELETED>

<DELETED>SEC. 9. MONITORING OF NON-NOTIFIED AND NON-DECLARED 
              TRANSACTIONS.</DELETED>

<DELETED>    Section 721(b)(1) of the Defense Production Act of 1950 
(50 U.S.C. 4565(b)(1)), as amended by section 7, is further amended by 
adding at the end the following:</DELETED>
                <DELETED>    ``(H) Monitoring of non-notified and non-
                declared transactions.--The Committee shall establish a 
                mechanism to identify covered transactions for which--
                </DELETED>
                        <DELETED>    ``(i) a notice under clause (i) of 
                        subparagraph (C) or a declaration under clause 
                        (v) of that subparagraph is not submitted to 
                        the Committee; and</DELETED>
                        <DELETED>    ``(ii) information is reasonably 
                        available.''.</DELETED>

<DELETED>SEC. 10. SUBMISSION OF CERTIFICATIONS TO CONGRESS.</DELETED>

<DELETED>    Section 721(b)(3)(C) of the Defense Production Act of 1950 
(50 U.S.C. 4565(b)(3)(C)) is amended--</DELETED>
        <DELETED>    (1) in clause (iii)--</DELETED>
                <DELETED>    (A) in subclause (II), by inserting ``and 
                the Select Committee on Intelligence'' after ``Urban 
                Affairs''; and</DELETED>
                <DELETED>    (B) in subclause (IV), by inserting ``and 
                the Permanent Select Committee on Intelligence'' after 
                ``Financial Services'';</DELETED>
        <DELETED>    (2) in clause (iv), by striking subclause (II) and 
        inserting the following:</DELETED>
                                <DELETED>    ``(II) Delegation of 
                                certifications.--</DELETED>
                                        <DELETED>    ``(aa) In 
                                        general.--Subject to item (bb), 
                                        the chairperson, in 
                                        consultation with the 
                                        Committee, may determine the 
                                        level of official to whom the 
                                        signature requirement under 
                                        subclause (I) for the 
                                        chairperson and the head of the 
                                        lead agency may be delegated. 
                                        The level of official to whom 
                                        the signature requirement may 
                                        be delegated may differ based 
                                        on any factor relating to a 
                                        transaction that the 
                                        chairperson, in consultation 
                                        with the Committee, deems 
                                        appropriate, including the type 
                                        or value of the 
                                        transaction.</DELETED>
                                        <DELETED>    ``(bb) 
                                        Limitations.--The signature 
                                        requirement under subclause (I) 
                                        may be delegated--</DELETED>

                                                <DELETED>    ``(AA) in 
                                                the case of a covered 
                                                transaction assessed by 
                                                the Director of 
                                                National Intelligence 
                                                under paragraph (4) as 
                                                more likely than not to 
                                                threaten the national 
                                                security of the United 
                                                States, not below the 
                                                level of the Assistant 
                                                Secretary of the 
                                                Treasury or an 
                                                equivalent official of 
                                                another agency or 
                                                department represented 
                                                on the Committee; 
                                                and</DELETED>

                                                <DELETED>    ``(BB) in 
                                                the case of any other 
                                                covered transaction, 
                                                not below the level of 
                                                a Deputy Assistant 
                                                Secretary of the 
                                                Treasury or an 
                                                equivalent official of 
                                                another agency or 
                                                department represented 
                                                on the Committee.''; 
                                                and</DELETED>

        <DELETED>    (3) by adding at the following:</DELETED>
                        <DELETED>    ``(v) Authority to consolidate 
                        documents.--Instead of transmitting a separate 
                        certified notice or certified report under 
                        subparagraph (A) or (B) with respect to each 
                        covered transaction, the Committee may, on a 
                        monthly basis, transmit such notices and 
                        reports in a consolidated document to the 
                        Members of Congress specified in clause 
                        (iii).''.</DELETED>

<DELETED>SEC. 11. ANALYSIS BY DIRECTOR OF NATIONAL 
              INTELLIGENCE.</DELETED>

<DELETED>    Section 721(b)(4) of the Defense Production Act of 1950 
(50 U.S.C. 4565(b)(4)) is amended--</DELETED>
        <DELETED>    (1) by striking subparagraph (A) and inserting the 
        following:</DELETED>
                <DELETED>    ``(A) Analysis required.--</DELETED>
                        <DELETED>    ``(i) In general.--The Director of 
                        National Intelligence shall expeditiously carry 
                        out a thorough analysis of any threat to the 
                        national security of the United States posed by 
                        any covered transaction, which shall include 
                        the identification of any recognized gaps in 
                        the collection of intelligence relevant to the 
                        analysis.</DELETED>
                        <DELETED>    ``(ii) Views of intelligence 
                        agencies.--The Director shall seek and 
                        incorporate into the analysis required by 
                        clause (i) the views of all affected or 
                        appropriate intelligence agencies with respect 
                        to the transaction.</DELETED>
                        <DELETED>    ``(iii) Updates.--At the request 
                        of the lead agency, the Director shall update 
                        the analysis conducted under clause (i) with 
                        respect to a covered transaction with respect 
                        to which an agreement was entered into under 
                        subsection (l)(3)(A).</DELETED>
                        <DELETED>    ``(iv) Independence and 
                        objectivity.--The Committee shall ensure that 
                        its processes under this section preserve the 
                        ability of the Director to conduct analysis 
                        under clause (i) that is independent, 
                        objective, and consistent with all applicable 
                        directives, policies, and analytic tradecraft 
                        standards of the intelligence 
                        community.'';</DELETED>
        <DELETED>    (2) by redesignating subparagraphs (B), (C), and 
        (D) as subparagraphs (C), (D), and (E), respectively;</DELETED>
        <DELETED>    (3) by inserting after subparagraph (A) the 
        following:</DELETED>
                <DELETED>    ``(B) Basic threat information.--
                </DELETED>
                        <DELETED>    ``(i) In general.--The Director of 
                        National Intelligence may provide the Committee 
                        with basic information regarding any threat to 
                        the national security of the United States 
                        posed by a covered transaction described in 
                        clause (ii) instead of conducting the analysis 
                        required by subparagraph (A).</DELETED>
                        <DELETED>    ``(ii) Covered transaction 
                        described.--A covered transaction is described 
                        in this clause if--</DELETED>
                                <DELETED>    ``(I) the transaction is 
                                described in subsection 
                                (a)(5)(B)(ii);</DELETED>
                                <DELETED>    ``(II) the Director of 
                                National Intelligence has completed an 
                                analysis pursuant to subparagraph (A) 
                                involving each foreign person that is a 
                                party to the transaction during the 12 
                                months preceding the review or 
                                investigation of the transaction under 
                                this section; or</DELETED>
                                <DELETED>    ``(III) the transaction 
                                otherwise meets criteria agreed upon by 
                                the Committee and the Director of 
                                National Intelligence for purposes of 
                                this subparagraph.'';</DELETED>
        <DELETED>    (4) in subparagraph (C), as redesignated by 
        paragraph (2), by striking ``20'' and inserting ``30''; 
        and</DELETED>
        <DELETED>    (5) by adding at the end the following:</DELETED>
                <DELETED>    ``(F) Assessment of operational impact.--
                The Director may provide to the Committee an 
                assessment, separate from the analyses under 
                subparagraphs (A) and (B), of any operational impact of 
                a covered transaction on the intelligence community and 
                a description of any actions that have been or will be 
                taken to mitigate any such impact.</DELETED>
                <DELETED>    ``(G) Submission to congress.--The 
                Committee shall submit the analysis required by 
                subparagraph (A) with respect to a covered transaction 
                to the Select Committee on Intelligence of the Senate 
                and the Permanent Select Committee on Intelligence of 
                the House of Representatives upon the conclusion of 
                action under this section (other than compliance 
                reviews under subsection (l)(6)) with respect to the 
                transaction.''.</DELETED>

<DELETED>SEC. 12. INFORMATION SHARING.</DELETED>

<DELETED>    Section 721(c) of the Defense Production Act of 1950 (50 
U.S.C. 4565(c)) is amended--</DELETED>
        <DELETED>    (1) by striking ``Any information'' and inserting 
        the following:</DELETED>
        <DELETED>    ``(1) In general.--Except as provided in paragraph 
        (2), any information'';</DELETED>
        <DELETED>    (2) by striking ``, except as may be relevant'' 
        and all that follows and inserting a period; and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
        <DELETED>    ``(2) Exceptions.--Paragraph (1) shall not 
        prohibit the disclosure of the following:</DELETED>
                <DELETED>    ``(A) Information relevant to any 
                administrative or judicial action or 
                proceeding.</DELETED>
                <DELETED>    ``(B) Information to either House of 
                Congress or to any duly authorized committee or 
                subcommittee of Congress.</DELETED>
                <DELETED>    ``(C) Information to any domestic or 
                foreign governmental entity, under the direction of the 
                chairperson, to the extent necessary for national 
                security purposes and pursuant to appropriate 
                confidentiality and classification 
                arrangements.</DELETED>
                <DELETED>    ``(D) Information that the parties have 
                consented to be disclosed to third 
                parties.''.</DELETED>

<DELETED>SEC. 13. ACTION BY THE PRESIDENT.</DELETED>

<DELETED>    (a) In General.--Section 721(d) of the Defense Production 
Act of 1950 (50 U.S.C. 4565(d)) is amended--</DELETED>
        <DELETED>    (1) by striking paragraph (1) and inserting the 
        following:</DELETED>
        <DELETED>    ``(1) In general.--Subject to paragraph (4), the 
        President may, with respect to a covered transaction that 
        threatens to impair the national security of the United 
        States--</DELETED>
                <DELETED>    ``(A) take such action for such time as 
                the President considers appropriate to suspend or 
                prohibit the transaction or to require divestment; 
                and</DELETED>
                <DELETED>    ``(B) in conjunction with taking any such 
                action, take any additional action the President 
                considers appropriate to address the risk to the 
                national security of the United States identified 
                during the review and investigation of the transaction 
                under this section.''; and</DELETED>
        <DELETED>    (2) in paragraph (2), by striking ``not later than 
        15 days'' and all that follows and inserting the following: 
        ``with respect to a covered transaction not later than 15 days 
        after the earlier of--</DELETED>
                <DELETED>    ``(A) the date on which the investigation 
                of the transaction under subsection (b) is completed; 
                or</DELETED>
                <DELETED>    ``(B) the date on which the Committee 
                otherwise refers the transaction to the President under 
                subsection (l)(2).''.</DELETED>
<DELETED>    (b) Civil Penalties.--Section 721(h)(3)(A) of the Defense 
Production Act of 1950 (50 U.S.C. 4565(h)(3)(A)) is amended by striking 
``including any mitigation'' and all that follows through ``subsection 
(l)'' and inserting ``including any mitigation agreement entered into, 
conditions imposed, or order issued pursuant to this 
section''.</DELETED>

<DELETED>SEC. 14. JUDICIAL REVIEW PROCEDURES.</DELETED>

<DELETED>    Section 721(e) of the Defense Production Act of 1950 (50 
U.S.C. 4565) is amended to read as follows:</DELETED>
<DELETED>    ``(e) Actions and Findings Nonreviewable.--</DELETED>
        <DELETED>    ``(1) Actions and findings of the president.--The 
        actions and findings of the President or the President's 
        designee under this section shall not be subject to judicial 
        review, including claims under chapter 7 of title 5, United 
        States Code.</DELETED>
        <DELETED>    ``(2) Actions and findings of the committee.--
        </DELETED>
                <DELETED>    ``(A) In general.--Except as provided in 
                subparagraph (B), the actions and findings of the 
                Committee under subsection (b) or (l), and any 
                assessment of penalties or use of enforcement 
                authorities under this section, shall not be subject to 
                judicial review, including claims under chapter 7 of 
                title 5, United States Code.</DELETED>
                <DELETED>    ``(B) Petitions.--</DELETED>
                        <DELETED>    ``(i) Definition.--In this 
                        subparagraph, the term `classified information' 
                        means any information or material that has been 
                        determined by the United States Government 
                        pursuant to an Executive order, statute, or 
                        regulation to require protection against 
                        unauthorized disclosure for reasons of national 
                        security and any restricted data, as defined in 
                        section 11 of the Atomic Energy Act of 1954 (42 
                        U.S.C. 2014).</DELETED>
                        <DELETED>    ``(ii) Petition.--</DELETED>
                                <DELETED>    ``(I) In general.--Except 
                                as provided in subclause (II), not 
                                later than 60 days after the date on 
                                which the President or the Committee 
                                takes an action with respect to the 
                                covered transaction, any party to the 
                                covered transaction may file a petition 
                                under this subparagraph alleging that 
                                the action of the Committee is a 
                                violation of a constitutional right, 
                                power, privilege, or 
                                immunity.</DELETED>
                                <DELETED>    ``(II) Notification.--No 
                                party to a covered transaction shall be 
                                permitted to file a petition or any 
                                claim related to a petition under 
                                subclause (I) unless--</DELETED>
                                        <DELETED>    ``(aa) the party 
                                        initiated the review of the 
                                        transaction pursuant to a 
                                        written notice filed under 
                                        clause (i) of subsection 
                                        (b)(1)(C) or a declaration 
                                        filed under clause (v) of that 
                                        subsection or the Committee 
                                        determines that such a notice 
                                        or declaration was not 
                                        required; and</DELETED>
                                        <DELETED>    ``(bb) the 
                                        Committee has completed all 
                                        action under this section with 
                                        respect to the 
                                        transaction.</DELETED>
                                <DELETED>    ``(III) Related claims.--
                                Any claims related to a petition filed 
                                under this clause shall be filed before 
                                the date described in subclause 
                                (I).</DELETED>
                        <DELETED>    ``(iii) Exclusive jurisdiction.--
                        </DELETED>
                                <DELETED>    ``(I) In general.--The 
                                United States Court of Appeals for the 
                                District of Columbia Circuit shall have 
                                exclusive jurisdiction over claims 
                                arising under this subparagraph, 
                                subject to review by the Supreme Court 
                                of the United States under section 1254 
                                of title 28, United States Code, only--
                                </DELETED>
                                        <DELETED>    ``(aa) to affirm 
                                        the action of the Committee; 
                                        or</DELETED>
                                        <DELETED>    ``(bb) to remand 
                                        the case to the Committee for 
                                        further 
                                        consideration.</DELETED>
                                <DELETED>    ``(II) Standard of 
                                review.--The court shall uphold an 
                                action challenged under this 
                                subparagraph unless the court finds 
                                that the action was contrary to a 
                                constitutional right, power, privilege, 
                                or immunity.</DELETED>
                        <DELETED>    ``(iv) Scope of review.--In a 
                        claim under this subparagraph, the court shall 
                        decide all relevant questions based solely on 
                        any administrative record submitted by the 
                        United States under clause (v).</DELETED>
                        <DELETED>    ``(v) Administrative record and 
                        procedures.--</DELETED>
                                <DELETED>    ``(I) In general.--
                                Notwithstanding any other provision of 
                                law, the procedures described in this 
                                clause shall apply to the review of a 
                                petition under this 
                                subparagraph.</DELETED>
                                <DELETED>    ``(II) Administrative 
                                record.--</DELETED>
                                        <DELETED>    ``(aa) Filing of 
                                        record.--The United States 
                                        shall file with the court an 
                                        administrative record, which 
                                        shall consist of the 
                                        information that the parties 
                                        submitted to the Committee and 
                                        that the Committee relied upon 
                                        in support of the action of the 
                                        Committee under 
                                        review.</DELETED>
                                        <DELETED>    ``(bb) 
                                        Unclassified, nonprivileged 
                                        information.--All unclassified 
                                        information contained in the 
                                        administrative record that is 
                                        not otherwise privileged or 
                                        subject to statutory 
                                        protections shall be provided 
                                        to the petitioner with 
                                        appropriate protections for any 
                                        privileged or confidential 
                                        trade secrets and commercial or 
                                        financial 
                                        information.</DELETED>
                                        <DELETED>    ``(cc) Discovery 
                                        bar.--Other than the provision 
                                        of information in the 
                                        administrative record described 
                                        in subparagraph (II)(bb), no 
                                        discovery shall be 
                                        permitted.</DELETED>
                                        <DELETED>    ``(dd) In camera 
                                        and ex parte.--The following 
                                        information may be included in 
                                        the administrative record and 
                                        shall be submitted only to the 
                                        court ex parte and in 
                                        camera:</DELETED>

                                                <DELETED>    ``(AA) 
                                                Unclassified 
                                                information subject to 
                                                privilege or statutory 
                                                protections.</DELETED>

                                                <DELETED>    ``(BB) 
                                                Classified 
                                                information.</DELETED>

                                                <DELETED>    ``(CC) 
                                                Sensitive security 
                                                information.</DELETED>

                                                <DELETED>    ``(DD) 
                                                Sensitive law 
                                                enforcement 
                                                information.</DELETED>

                                                <DELETED>    ``(EE) 
                                                Information obtained or 
                                                derived from any 
                                                activity authorized 
                                                under the Foreign 
                                                Intelligence 
                                                Surveillance Act of 
                                                1978 (50 U.S.C. 1801 et 
                                                seq.), except that, 
                                                with respect to such 
                                                information, 
                                                subsections (c), (e), 
                                                (f), (g), and (h) of 
                                                section 106 (50 U.S.C. 
                                                1806), subsections (d), 
                                                (f), (g), (h), and (i) 
                                                of section 305 (50 
                                                U.S.C. 1825), 
                                                subsections (c), (e), 
                                                (f), (g), and (h) of 
                                                section 405 (50 U.S.C. 
                                                1845), and section 706 
                                                (50 U.S.C. 1881e) of 
                                                that Act shall not 
                                                apply.</DELETED>

                                        <DELETED>    ``(ee) Under 
                                        seal.--Any classified 
                                        information, sensitive security 
                                        information, law enforcement 
                                        sensitive information, or 
                                        information that is otherwise 
                                        privileged or subject to 
                                        statutory protections, that is 
                                        part of the administrative 
                                        record filed ex parte and in 
                                        camera, or cited by the court 
                                        in any decision, shall be 
                                        treated by the court consistent 
                                        with the provisions of this 
                                        subparagraph, and shall remain 
                                        under seal and preserved in the 
                                        records of the court to be made 
                                        available in the event of 
                                        further proceedings. In no 
                                        event shall such information be 
                                        released to the claimant or as 
                                        part of the public 
                                        record.</DELETED>
                                        <DELETED>    ``(ff) Return.--
                                        After the expiration of the 
                                        time to seek further review, or 
                                        the conclusion of further 
                                        proceedings, the court shall 
                                        return the administrative 
                                        record, including any and all 
                                        copies, to the United 
                                        States.</DELETED>
                                        <DELETED>    ``(gg) 
                                        Consideration of claim without 
                                        information in administrative 
                                        record.--If, on motion or sua 
                                        sponte, the court determines 
                                        that the claim may be 
                                        considered without any of the 
                                        information in the 
                                        administrative record, the 
                                        court shall require that only 
                                        the necessary information, if 
                                        any, from the record be 
                                        provided to the 
                                        parties.</DELETED>
                        <DELETED>    ``(vi) Exclusive remedy.--A 
                        determination by the court under this 
                        subparagraph shall be the exclusive judicial 
                        remedy for any claim described in this 
                        subparagraph against the United States, any 
                        United States department or agency, or any 
                        component or official of any such department or 
                        agency.</DELETED>
                        <DELETED>    ``(vii) Rule of construction.--
                        Nothing in this subparagraph shall be construed 
                        as limiting, superseding, or preventing the 
                        invocation of, any privileges or defenses that 
                        are otherwise available at law or in equity to 
                        protect against the disclosure of 
                        information.''.</DELETED>

<DELETED>SEC. 15. FACTORS TO BE CONSIDERED.</DELETED>

<DELETED>    Section 721(f) of the Defense Production Act of 1950 (50 
U.S.C. 4565(f)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (1), by inserting ``including 
        whether the covered transaction is likely to result in the 
        increased reliance by the United States on foreign suppliers to 
        meet national defense requirements;'' after ``defense 
        requirements,'';</DELETED>
        <DELETED>    (2) in paragraph (4), by striking ``proposed or 
        pending'';</DELETED>
        <DELETED>    (3) by striking paragraph (5) and insert the 
        following:</DELETED>
        <DELETED>    ``(5) the potential effects of the covered 
        transaction on United States international technological and 
        industrial leadership in areas affecting United States national 
        security, including whether the transaction is likely to reduce 
        the technological and industrial advantage of the United States 
        relative to any country of special concern;'';</DELETED>
        <DELETED>    (4) in paragraph (6), by inserting ``and 
        transportation assets, as defined in Presidential Policy 
        Directive 21 (February 12, 2013; relating to critical 
        infrastructure security and resilience) or any successor 
        directive'' after ``energy assets'';</DELETED>
        <DELETED>    (5) in paragraph (7), by inserting ``, including 
        whether the covered transaction is likely to contribute to the 
        loss of or other adverse effects on technologies that provide a 
        strategic national security advantage to the United States'' 
        after ``critical technologies'';</DELETED>
        <DELETED>    (6) in paragraph (10), by striking ``; and'' and 
        inserting a semicolon;</DELETED>
        <DELETED>    (7) by redesignating paragraph (11) as paragraph 
        (20); and</DELETED>
        <DELETED>    (8) by inserting after paragraph (10) the 
        following:</DELETED>
        <DELETED>    ``(11) the degree to which the covered transaction 
        is likely to increase the cost to the United States Government 
        of acquiring or maintaining the equipment and systems that are 
        necessary for defense, intelligence, or other national security 
        functions;</DELETED>
        <DELETED>    ``(12) the potential national security-related 
        effects of the cumulative market share of any one type of 
        infrastructure, energy asset, critical material, or critical 
        technology by foreign persons;</DELETED>
        <DELETED>    ``(13) whether any foreign person that would 
        acquire an interest in a United States business or its assets 
        as a result of the covered transaction has a history of--
        </DELETED>
                <DELETED>    ``(A) complying with United States laws 
                and regulations, including laws and regulations 
                pertaining to exports, the protection of intellectual 
                property, and immigration; and</DELETED>
                <DELETED>    ``(B) adhering to contracts or other 
                agreements with entities of the United States 
                Government;</DELETED>
        <DELETED>    ``(14) the extent to which the covered transaction 
        is likely to expose, either directly or indirectly, personally 
        identifiable information, genetic information, or other 
        sensitive data of United States citizens to access by a foreign 
        government or foreign person that may exploit that information 
        in a manner that threatens national security;</DELETED>
        <DELETED>    ``(15) whether the covered transaction is likely 
        to have the effect of creating any new cybersecurity 
        vulnerabilities in the United States or exacerbating existing 
        cybersecurity vulnerabilities;</DELETED>
        <DELETED>    ``(16) whether the covered transaction is likely 
        to result in a foreign government gaining a significant new 
        capability to engage in malicious cyber-enabled activities 
        against the United States, including such activities designed 
        to affect the outcome of any election for Federal 
        office;</DELETED>
        <DELETED>    ``(17) whether the covered transaction involves a 
        country of special concern that has a demonstrated or declared 
        strategic goal of acquiring a type of critical technology that 
        a United States business that is a party to the transaction 
        possesses;</DELETED>
        <DELETED>    ``(18) whether the covered transaction is likely 
        to facilitate criminal or fraudulent activity affecting the 
        national security of the United States;</DELETED>
        <DELETED>    ``(19) whether the covered transaction is likely 
        to expose any information regarding sensitive national security 
        matters or sensitive procedures or operations of a Federal law 
        enforcement agency with national security responsibilities to a 
        foreign person not authorized to receive that information; 
        and''.</DELETED>

<DELETED>SEC. 16. ACTIONS BY THE COMMITTEE TO ADDRESS NATIONAL SECURITY 
              RISKS.</DELETED>

<DELETED>    Section 721(l) of the Defense Production Act of 1950 (50 
U.S.C. 4565(l)) is amended--</DELETED>
        <DELETED>    (1) in the subsection heading, by striking 
        ``Mitigation, Tracking, and Postconsummation Monitoring and 
        Enforcement'' and inserting ``Actions by the Committee To 
        Address National Security Risks'';</DELETED>
        <DELETED>    (2) by redesignating paragraphs (1), (2), and (3) 
        as paragraphs (3), (5), and (6), respectively;</DELETED>
        <DELETED>    (3) by inserting before paragraph (3), as 
        redesignated by paragraph (2), the following:</DELETED>
        <DELETED>    ``(1) Suspension of transactions.--The Committee, 
        acting through the chairperson, may suspend a proposed or 
        pending covered transaction that may pose a risk to the 
        national security of the United States for such time as the 
        covered transaction is under review or investigation under 
        subsection (b).</DELETED>
        <DELETED>    ``(2) Referral to president.--The Committee may, 
        at any time during the review or investigation of a covered 
        transaction under subsection (b), complete the action of the 
        Committee with respect to the transaction and refer the 
        transaction to the President for action pursuant to subsection 
        (d).'';</DELETED>
        <DELETED>    (4) in paragraph (3), as redesignated by paragraph 
        (2)--</DELETED>
                <DELETED>    (A) in subparagraph (A)--</DELETED>
                        <DELETED>    (i) in the subparagraph heading, 
                        by striking ``In general'' and inserting 
                        ``Agreements and conditions'';</DELETED>
                        <DELETED>    (ii) by striking ``The Committee'' 
                        and inserting the following:</DELETED>
                        <DELETED>    ``(i) In general.--The 
                        Committee'';</DELETED>
                        <DELETED>    (iii) by striking ``threat'' and 
                        inserting ``risk''; and</DELETED>
                        <DELETED>    (iv) by adding at the end the 
                        following:</DELETED>
                        <DELETED>    ``(ii) Abandonment of 
                        transactions.--If a party to a covered 
                        transaction has voluntarily chosen to abandon 
                        the transaction, the Committee or lead agency, 
                        as the case may be, may negotiate, enter into 
                        or impose, and enforce any agreement or 
                        condition with any party to the covered 
                        transaction for purposes of effectuating such 
                        abandonment and mitigating any risk to the 
                        national security of the United States that 
                        arises as a result of the covered 
                        transaction.</DELETED>
                        <DELETED>    ``(iii) Agreements and conditions 
                        relating to completed transactions.--The 
                        Committee or lead agency, as the case may be, 
                        may negotiate, enter into or impose, and 
                        enforce any agreement or condition with any 
                        party to a completed covered transaction in 
                        order to mitigate any interim risk to the 
                        national security of the United States that may 
                        arise as a result of the covered transaction 
                        until such time that the Committee has 
                        completed action pursuant to subsection (b) or 
                        the President has taken action pursuant to 
                        subsection (d) with respect to the 
                        transaction.''; and</DELETED>
                <DELETED>    (B) by striking subparagraph (B) and 
                inserting the following:</DELETED>
                <DELETED>    ``(B) Limitations.--An agreement may not 
                be entered into or condition imposed under subparagraph 
                (A) with respect to a covered transaction unless the 
                Committee determines that the agreement or condition 
                resolves the national security concerns posed by the 
                transaction, taking into consideration whether the 
                agreement or condition is reasonably calculated to--
                </DELETED>
                        <DELETED>    ``(i) be effective;</DELETED>
                        <DELETED>    ``(ii) allow for compliance with 
                        the terms of the agreement or condition in an 
                        appropriately verifiable way; and</DELETED>
                        <DELETED>    ``(iii) enable effective 
                        monitoring of compliance with and enforcement 
                        of the terms of the agreement or 
                        condition.</DELETED>
                <DELETED>    ``(C) Jurisdiction.--The provisions of 
                section 706(b) shall apply to any mitigation agreement 
                entered into or condition imposed under subparagraph 
                (A).'';</DELETED>
        <DELETED>    (5) by inserting after paragraph (3), as 
        redesignated by paragraph (2), the following:</DELETED>
        <DELETED>    ``(4) Risk-based analysis required.--</DELETED>
                <DELETED>    ``(A) In general.--Any determination of 
                the Committee to suspend a covered transaction under 
                paragraph (1), to refer a covered transaction to the 
                President under paragraph (2), or to negotiate, enter 
                into or impose, or enforce any agreement or condition 
                under paragraph (3)(A) with respect to a covered 
                transaction, shall be based on a risk-based analysis, 
                conducted by the Committee, of the effects on the 
                national security of the United States of the covered 
                transaction, which shall include--</DELETED>
                        <DELETED>    ``(i) an assessment of--</DELETED>
                                <DELETED>    ``(I) the national 
                                security threat posed by the 
                                transaction, taking into account the 
                                analysis conducted by the Director of 
                                National Intelligence under subsection 
                                (b)(4);</DELETED>
                                <DELETED>    ``(II) any national 
                                security vulnerabilities related to the 
                                transaction; and</DELETED>
                                <DELETED>    ``(III) the potential 
                                national security consequences of the 
                                transaction; and</DELETED>
                        <DELETED>    ``(ii) an identification of any of 
                        the factors described in subsection (f) that 
                        the transaction may substantially 
                        implicate.</DELETED>
                <DELETED>    ``(B) Actions of members of the 
                committee.--</DELETED>
                        <DELETED>    ``(i) In general.--Any member of 
                        the Committee who concludes that a covered 
                        transaction poses an unresolved national 
                        security concern shall recommend to the 
                        Committee that the Committee suspend the 
                        transaction under paragraph (1), refer the 
                        transaction to the President under paragraph 
                        (2), or negotiate, enter into or impose, or 
                        enforce any agreement or condition under 
                        paragraph (3)(A) with respect to the 
                        transaction. In making that recommendation, the 
                        member shall propose the risk-based analysis 
                        required by subparagraph (A).</DELETED>
                        <DELETED>    ``(ii) Failure to reach 
                        consensus.--If the Committee fails to reach 
                        consensus with respect to a recommendation 
                        under clause (i) regarding a covered 
                        transaction, the members of the Committee who 
                        support an alternative recommendation shall 
                        produce--</DELETED>
                                <DELETED>    ``(I) a written statement 
                                justifying the alternative 
                                recommendation; and</DELETED>
                                <DELETED>    ``(II) as appropriate, a 
                                risk-based analysis that supports the 
                                alternative 
                                recommendation.'';</DELETED>
        <DELETED>    (6) in paragraph (5), as redesignated by paragraph 
        (2), by striking ``(as defined in the National Security Act of 
        1947)''; and</DELETED>
        <DELETED>    (7) in paragraph (6), as redesignated by paragraph 
        (2)--</DELETED>
                <DELETED>    (A) in subparagraph (A)--</DELETED>
                        <DELETED>    (i) by striking ``paragraph (1)'' 
                        and inserting ``paragraph (3)''; and</DELETED>
                        <DELETED>    (ii) by striking the second 
                        sentence and inserting the following: ``The 
                        lead agency may, at its discretion, seek and 
                        receive the assistance of other departments or 
                        agencies in carrying out the purposes of this 
                        paragraph.'';</DELETED>
                <DELETED>    (B) in subparagraph (B)--</DELETED>
                        <DELETED>    (i) by striking ``designated 
                        agency'' and all that follows through ``The 
                        lead agency in connection'' and inserting 
                        ``designated agency.--The lead agency in 
                        connection'';</DELETED>
                        <DELETED>    (ii) by striking clause (ii); 
                        and</DELETED>
                        <DELETED>    (iii) by redesignating subclauses 
                        (I) and (II) as clauses (i) and (ii), 
                        respectively, and by moving such clauses, as so 
                        redesignated, 2 ems to the left; and</DELETED>
                <DELETED>    (C) by adding at the end the 
                following:</DELETED>
                <DELETED>    ``(C) Compliance plans.--</DELETED>
                        <DELETED>    ``(i) In general.--In the case of 
                        a covered transaction with respect to which an 
                        agreement is entered into under paragraph 
                        (3)(A), the Committee or lead agency, as the 
                        case may be, shall formulate, adhere to, and 
                        keep updated a plan for monitoring compliance 
                        with the agreement.</DELETED>
                        <DELETED>    ``(ii) Elements.--Each plan 
                        required by clause (i) with respect to an 
                        agreement entered into under paragraph (3)(A) 
                        shall include an explanation of--</DELETED>
                                <DELETED>    ``(I) which member of the 
                                Committee will have primary 
                                responsibility for monitoring 
                                compliance with the 
                                agreement;</DELETED>
                                <DELETED>    ``(II) how compliance with 
                                the agreement will be 
                                monitored;</DELETED>
                                <DELETED>    ``(III) how frequently 
                                compliance reviews will be 
                                conducted;</DELETED>
                                <DELETED>    ``(IV) whether an 
                                independent entity will be utilized 
                                under subparagraph (E) to conduct 
                                compliance reviews; and</DELETED>
                                <DELETED>    ``(V) what actions will be 
                                taken if the parties fail to cooperate 
                                regarding monitoring compliance with 
                                the agreement.</DELETED>
                <DELETED>    ``(D) Effect of lack of compliance.--If, 
                at any time after a mitigation agreement or condition 
                is entered into or imposed under paragraph (3)(A), the 
                Committee or lead agency, as the case may be, 
                determines that a party or parties to the agreement or 
                condition are not in compliance with the terms of the 
                agreement or condition, the Committee or lead agency 
                may, in addition to the authority of the Committee to 
                impose penalties pursuant to subsection (h)(3) and to 
                unilaterally initiate a review of any covered 
                transaction under subsection (b)(1)(D)(iii)(I)--
                </DELETED>
                        <DELETED>    ``(i) negotiate a plan of action 
                        for the party or parties to remediate the lack 
                        of compliance, with failure to abide by the 
                        plan or otherwise remediate the lack of 
                        compliance serving as the basis for the 
                        Committee to find a material breach of the 
                        agreement or condition;</DELETED>
                        <DELETED>    ``(ii) require that the party or 
                        parties submit any covered transaction 
                        initiated after the date of the determination 
                        of noncompliance and before the date that is 5 
                        years after the date of the determination to 
                        the Committee for review under subsection (b); 
                        or</DELETED>
                        <DELETED>    ``(iii) seek injunctive 
                        relief.</DELETED>
                <DELETED>    ``(E) Use of independent entities to 
                monitor compliance.--If the parties to an agreement 
                entered into under paragraph (3)(A) enter into a 
                contract with an independent entity from outside the 
                United States Government for the purpose of monitoring 
                compliance with the agreement, the Committee shall take 
                such action as is necessary to prevent a conflict of 
                interest from arising by ensuring that the independent 
                entity owes no fiduciary duty to the parties.</DELETED>
                <DELETED>    ``(F) Additional compliance measures.--
                Subject to subparagraphs (A) through (E), the Committee 
                shall develop and agree upon methods for evaluating 
                compliance with any agreement entered into or condition 
                imposed with respect to a covered transaction that will 
                allow the Committee to adequately ensure compliance 
                without unnecessarily diverting Committee resources 
                from assessing any new covered transaction for which a 
                written notice under clause (i) of subsection (b)(1)(C) 
                or declaration under clause (v) of that subsection has 
                been filed, and if necessary, reaching a mitigation 
                agreement with or imposing a condition on a party to 
                such covered transaction or any covered transaction for 
                which a review has been reopened for any 
                reason.''.</DELETED>

<DELETED>SEC. 17. MODIFICATION OF ANNUAL REPORT.</DELETED>

<DELETED>    Section 721(m) of the Defense Production Act of 1950 (50 
U.S.C. 4565(m)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (1), by striking ``committee'' 
        and all that follows through ``Representatives,'' and inserting 
        ``appropriate congressional committees'';</DELETED>
        <DELETED>    (2) in paragraph (2)--</DELETED>
                <DELETED>    (A) by amending subparagraph (A) to read 
                as follows:</DELETED>
                <DELETED>    ``(A) A list of all notices filed and all 
                reviews or investigations of covered transactions 
                completed during the period, with--</DELETED>
                        <DELETED>    ``(i) a description of the outcome 
                        of each review or investigation, including 
                        whether an agreement was entered into or 
                        condition was imposed under subsection 
                        (l)(3)(A) with respect to the transaction being 
                        reviewed or investigated, and whether the 
                        President took any action under this section 
                        with respect to that transaction;</DELETED>
                        <DELETED>    ``(ii) basic information on each 
                        party to each such transaction;</DELETED>
                        <DELETED>    ``(iii) the nature of the business 
                        activities or products of the United States 
                        business with which the transaction was entered 
                        into or intended to be entered into; 
                        and</DELETED>
                        <DELETED>    ``(iv) information about any 
                        withdrawal from the process.'';</DELETED>
                <DELETED>    (B) by adding at the end the 
                following:</DELETED>
                <DELETED>    ``(G) Statistics on compliance reviews 
                conducted and actions taken by the Committee under 
                subsection (l)(6), including subparagraph (D) of that 
                subsection, during that period and a description of any 
                actions taken by the Committee to impose penalties or 
                initiate a unilateral review pursuant to subsection 
                (b)(1)(D)(iii)(I).'';</DELETED>
        <DELETED>    (3) in paragraph (3)--</DELETED>
                <DELETED>    (A) by striking ``critical technologies'' 
                and all that follows through ``In order to assist'' and 
                inserting ``critical technologies.--In order to 
                assist'';</DELETED>
                <DELETED>    (B) by striking subparagraph (B); 
                and</DELETED>
                <DELETED>    (C) by redesignating clauses (i) and (ii) 
                as subparagraphs (A) and (B), respectively, and by 
                moving such subparagraphs, as so redesignated, 2 ems to 
                the left; and</DELETED>
        <DELETED>    (4) by adding at the end the following:</DELETED>
        <DELETED>    ``(4) Biennial intelligence community report.--
        </DELETED>
                <DELETED>    ``(A) In general.--The Director of 
                National Intelligence shall transmit to the 
                chairperson, for inclusion in a classified portion of 
                each report required to be submitted under paragraph 
                (1) during calendar year 2018 and every even-numbered 
                year thereafter, the report of the interagency group 
                established under subparagraph (C).</DELETED>
                <DELETED>    ``(B) Elements.--The report referred to in 
                subparagraph (A) shall include an identification, 
                analysis, and explanation of the following:</DELETED>
                        <DELETED>    ``(i) Any current or projected 
                        major threats to the national security of the 
                        United States with respect to foreign 
                        investment.</DELETED>
                        <DELETED>    ``(ii) Any strategies used by 
                        countries of special concern to utilize foreign 
                        investment to target the acquisition of 
                        critical technologies, critical materials, or 
                        critical infrastructure.</DELETED>
                        <DELETED>    ``(iii) Any economic espionage 
                        efforts directed at the United States by a 
                        foreign country, particularly a country of 
                        special concern.</DELETED>
                <DELETED>    ``(C) Intelligence community interagency 
                working group.--The Director of National Intelligence--
                </DELETED>
                        <DELETED>    ``(i) shall establish an 
                        interagency working group, composed of 
                        representatives of elements of the intelligence 
                        community, to prepare the report required under 
                        this paragraph;</DELETED>
                        <DELETED>    ``(ii) shall serve as the 
                        chairperson of the interagency working group; 
                        and</DELETED>
                        <DELETED>    ``(iii) may consult with and seek 
                        input from any member of the Committee, as the 
                        Director considers necessary.</DELETED>
        <DELETED>    ``(5) Classification; availability of report.--
        </DELETED>
                <DELETED>    ``(A) Classification.--All appropriate 
                portions of the annual report required by paragraph (1) 
                may be classified.</DELETED>
                <DELETED>    ``(B) Public availability of unclassified 
                version.--An unclassified version of the report 
                required by paragraph (1), as appropriate and 
                consistent with safeguarding national security and 
                privacy, shall be made available to the public. 
                Information regarding trade secrets or business 
                confidential information may be included in the 
                classified version and may not be made available to the 
                public in the unclassified version.</DELETED>
                <DELETED>    ``(C) Exceptions to freedom of information 
                act.--The exceptions to subsection (a) of section 552 
                of title 5, United States Code, provided for under 
                subsection (b) of that section shall apply with respect 
                to the report required by paragraph (1).</DELETED>
        <DELETED>    ``(6) Appropriate congressional committees 
        defined.--In this subsection, the term `appropriate 
        congressional committees' means--</DELETED>
                <DELETED>    ``(A) the Committee on Banking, Housing, 
                and Urban Affairs, the Select Committee on 
                Intelligence, the Committee on Armed Services, the 
                Committee on the Judiciary, and the Committee on 
                Homeland Security and Governmental Affairs of the 
                Senate; and</DELETED>
                <DELETED>    ``(B) the Committee on Financial Services, 
                the Permanent Select Committee on Intelligence, the 
                Committee on Armed Services, the Committee on the 
                Judiciary, and the Committee on Homeland Security of 
                the House of Representatives.''.</DELETED>

<DELETED>SEC. 18. CERTIFICATION OF NOTICES AND INFORMATION.</DELETED>

<DELETED>    Section 721(n) of the Defense Production Act of 1950 (50 
U.S.C. 4565(n)) is amended--</DELETED>
        <DELETED>    (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively, and by moving such 
        subparagraphs, as so redesignated, 2 ems to the 
        right;</DELETED>
        <DELETED>    (2) by striking ``Each notice'' and inserting the 
        following:</DELETED>
        <DELETED>    ``(1) In general.--Each notice''; and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
        <DELETED>    ``(2) Effect of failure to submit.--The Committee 
        may not complete a review under this section of a covered 
        transaction and may recommend to the President that the 
        President suspend or prohibit the transaction or require 
        divestment under subsection (d) if the Committee determines 
        that a party to the transaction has--</DELETED>
                <DELETED>    ``(A) failed to submit a statement 
                required by paragraph (1); or</DELETED>
                <DELETED>    ``(B) included false or misleading 
                information in a notice or information described in 
                paragraph (1) or omitted material information from such 
                notice or information.</DELETED>
        <DELETED>    ``(3) Applicability of law on fraud and false 
        statements.--The Committee shall prescribe regulations 
        expressly providing for the application of section 1001 of 
        title 18, United States Code, to all information provided to 
        the Committee under this section by any party to a covered 
        transaction.''.</DELETED>

<DELETED>SEC. 19. FUNDING.</DELETED>

<DELETED>    Section 721 of the Defense Production Act of 1950 (50 
U.S.C. 4565) is amended by adding at the end the following:</DELETED>
<DELETED>    ``(o) Funding.--</DELETED>
        <DELETED>    ``(1) Establishment of fund.--There is established 
        in the Treasury of the United States a fund, to be known as the 
        `Committee on Foreign Investment in the United States Fund' (in 
        this subsection referred to as the `Fund').</DELETED>
        <DELETED>    ``(2) Appropriation of funds for the committee.--
        There are authorized to be appropriated to the Fund such sums 
        as may be necessary to perform the functions of the 
        Committee.</DELETED>
        <DELETED>    ``(3) Filing fees.--</DELETED>
                <DELETED>    ``(A) In general.--The Committee may 
                assess and collect a fee in an amount determined by the 
                Committee in regulations, to the extent provided in 
                advance in appropriations Acts, without regard to 
                section 9701 of title 31, United States Code, and 
                subject to subparagraph (B), with respect to each 
                covered transaction for which a written notice is 
                submitted to the Committee under subsection 
                (b)(1)(C)(i).</DELETED>
                <DELETED>    ``(B) Limitation on amount of fee.--The 
                amount of the fee determined under subparagraph (A) 
                with respect to a covered transaction described in that 
                subparagraph may not exceed an amount equal to the 
                lesser of--</DELETED>
                        <DELETED>    ``(i) 1 percent of the value of 
                        the transaction; or</DELETED>
                        <DELETED>    ``(ii) $300,000, adjusted annually 
                        for inflation pursuant to regulations 
                        prescribed by the Committee.</DELETED>
                <DELETED>    ``(C) Deposit and availability of fees.--
                Notwithstanding section 3302 of title 31, United States 
                Code, fees collected under subparagraph (A) shall--
                </DELETED>
                        <DELETED>    ``(i) be deposited as offsetting 
                        collections into the Fund for use in carrying 
                        out activities under this section;</DELETED>
                        <DELETED>    ``(ii) to the extent and in the 
                        amounts provided in advance in appropriations 
                        Acts, be available to the 
                        chairperson;</DELETED>
                        <DELETED>    ``(iii) remain available until 
                        expended; and</DELETED>
                        <DELETED>    ``(iv) be in addition to any 
                        appropriations made available to the members of 
                        the Committee.</DELETED>
        <DELETED>    ``(4) Transfer of funds.--The chairperson may 
        transfer any amounts in the Fund to any other department or 
        agency represented on the Committee for the purpose of 
        addressing emerging needs in carrying out activities under this 
        section. Amounts so transferred shall be in addition to any 
        other amounts available to that department or agency for that 
        purpose.''.</DELETED>

<DELETED>SEC. 20. CENTRALIZATION OF CERTAIN COMMITTEE 
              FUNCTIONS.</DELETED>

<DELETED>    Section 721 of the Defense Production Act of 1950 (50 
U.S.C. 4565), as amended by section 19, is further amended by adding at 
the end the following:</DELETED>
<DELETED>    ``(p) Centralization of Certain Committee Functions.--
</DELETED>
        <DELETED>    ``(1) In general.--The chairperson, in 
        consultation with the Committee, may centralize certain 
        functions of the Committee within the Department of the 
        Treasury for the purpose of enhancing interagency coordination 
        and collaboration in carrying out the functions of the 
        Committee under this section.</DELETED>
        <DELETED>    ``(2) Functions.--Functions that may be 
        centralized under paragraph (1) include monitoring non-notified 
        and non-declared transactions pursuant to subsection (b)(1)(H), 
        and other functions as determined by the chairperson and the 
        Committee.</DELETED>
        <DELETED>    ``(3) Rule of construction.--Nothing in this 
        section shall be construed as limiting the authority of any 
        department or agency represented on the Committee to represent 
        its own interests before the Committee.''.</DELETED>

<DELETED>SEC. 21. UNIFIED BUDGET REQUEST.</DELETED>

<DELETED>    Section 721 of the Defense Production Act of 1950 (50 
U.S.C. 4565), as amended by sections 19 and 20, is further amended by 
adding at the end the following:</DELETED>
<DELETED>    ``(q) Unified Budget Request.--</DELETED>
        <DELETED>    ``(1) In general.--The President may include, in 
        the budget of the Department of the Treasury for a fiscal year 
        (as submitted to Congress with the budget of the President 
        under section 1105(a) of title 31, United States Code), a 
        unified request for funding of all operations under this 
        section conducted by some or all of the departments and 
        agencies represented on the Committee.</DELETED>
        <DELETED>    ``(2) Form of budget request.--A unified request 
        under paragraph (1) should be detailed and include the amounts 
        requested for each department or agency represented on the 
        Committee to carry out the functions of that department or 
        agency under this section.''.</DELETED>

<DELETED>SEC. 22. SPECIAL HIRING AUTHORITY.</DELETED>

<DELETED>    Section 721 of the Defense Production Act of 1950 (50 
U.S.C. 4565), as amended by sections 19, 20, and 21, is further amended 
by adding at the end the following:</DELETED>
<DELETED>    ``(r) Special Hiring Authority.--The heads of the 
departments and agencies represented on the Committee may appoint, 
without regard to the provisions of sections 3309 through 3318 of title 
5, United States Code, candidates directly to positions in the 
competitive service (as defined in section 2102 of that title) in their 
respective departments and agencies to administer this 
section.''.</DELETED>

<DELETED>SEC. 23. CONFORMING AMENDMENTS.</DELETED>

<DELETED>    Section 721 of the Defense Production Act of 1950 (50 
U.S.C. 4565), as amended by this Act, is further amended--</DELETED>
        <DELETED>    (1) in subsection (b)(2)(B)(i)(I), by striking 
        ``that threat'' and inserting ``the risk''; and</DELETED>
        <DELETED>    (2) in subsection (d)(4)(A), by striking ``the 
        foreign interest exercising control'' and inserting ``a foreign 
        person that would acquire an interest in a United States 
        business or its assets as a result of the covered 
        transaction''.</DELETED>

<DELETED>SEC. 24. ASSESSMENT OF NEED FOR ADDITIONAL RESOURCES FOR 
              COMMITTEE.</DELETED>

<DELETED>    The President shall--</DELETED>
        <DELETED>    (1) determine whether and to what extent the 
        expansion of the responsibilities of the Committee on Foreign 
        Investment in the United States pursuant to the amendments made 
        by this Act necessitates additional resources for the Committee 
        and members of the Committee to perform their functions under 
        section 721 of the Defense Production Act of 1950, as amended 
        by this Act; and</DELETED>
        <DELETED>    (2) if the President determines that additional 
        resources are necessary, include in the budget of the President 
        for fiscal year 2019 submitted to Congress under section 
        1105(a) of title 31, United States Code, a request for such 
        additional resources.</DELETED>

<DELETED>SEC. 25. AUTHORIZATION FOR DEFENSE ADVANCED RESEARCH PROJECTS 
              AGENCY TO LIMIT FOREIGN ACCESS TO TECHNOLOGY THROUGH 
              CONTRACTS AND GRANT AGREEMENTS.</DELETED>

<DELETED>    (a) In General.--The Director of the Defense Advanced 
Research Projects Agency, or a designee of the Director, may include in 
any contract or grant agreement that the Director enters into with a 
person, and that is funded by that Agency, a provision that--</DELETED>
        <DELETED>    (1) limits access by any foreign person to 
        technology that is the subject of the contract or grant 
        agreement under terms defined by the Director, including by 
        limiting such access to specific periods of time; and</DELETED>
        <DELETED>    (2) in a case in which the person violates the 
        prohibition described in paragraph (1), requires the person to 
        return all amounts that the person received from the Agency 
        under the contract or grant agreement.</DELETED>
<DELETED>    (b) Treatment of Returned Funds.--Any amounts returned to 
the Defense Advanced Research Projects Agency under subsection (a)(2) 
shall be credited to the same appropriations account from which payment 
of such amounts was originally made under the contract or grant 
agreement described in subsection (a).</DELETED>
<DELETED>    (c) Exercise of Authority.--The Director, or the designee 
of the Director, may exercise the authority provided by this section 
without the need for further approval by, or regulatory implementation 
within, the Department of Defense.</DELETED>

<DELETED>SEC. 26. EFFECTIVE DATE.</DELETED>

<DELETED>    (a) Immediate Applicability of Certain Provisions.--The 
following shall take effect on the date of the enactment of this Act 
and apply with respect to any covered transaction the review or 
investigation of which is initiated under section 721 of the Defense 
Production Act of 1950 on or after such date of enactment:</DELETED>
        <DELETED>    (1) Sections 4, 6, 8, 12, 13, 14, 15, 18, 20, 21, 
        22, 24, and 25 and the amendments made by those 
        sections.</DELETED>
        <DELETED>    (2) Section 11 and the amendments made by that 
        section (except for clause (iii) of section 721(b)(4)(A) of the 
        Defense Production Act of 1950, as added by section 
        11).</DELETED>
        <DELETED>    (3) Paragraphs (5)(C)(iv), (7), and (14) of 
        subsection (a) of section 721 of the Defense Production Act of 
        1950, as amended by section 3.</DELETED>
        <DELETED>    (4) Section 721(m)(4) of the Defense Production 
        Act of 1950, as amended by section 17.</DELETED>
<DELETED>    (b) Delayed Applicability of Certain Provisions.--
</DELETED>
        <DELETED>    (1) In general.--Any provision of or amendment 
        made by this Act not specified in subsection (a) shall--
        </DELETED>
                <DELETED>    (A) take effect on the date that is 30 
                days after publication in the Federal Register of a 
                determination by the chairperson of the Committee on 
                Foreign Investment in the United States that the 
                regulations, organizational structure, personnel, and 
                other resources necessary to administer the new 
                provisions are in place; and</DELETED>
                <DELETED>    (B) apply with respect to any covered 
                transaction the review or investigation of which is 
                initiated under section 721 of the Defense Production 
                Act of 1950 on or after the date described in 
                subparagraph (A).</DELETED>
        <DELETED>    (2) Nondelegation of determination.--The 
        determination of the chairperson of the Committee on Foreign 
        Investment in the United States under paragraph (1)(A) may not 
        be delegated.</DELETED>
<DELETED>    (c) Authorization for Pilot Programs.--</DELETED>
        <DELETED>    (1) In general.--Beginning on the date of the 
        enactment of this Act and ending on the date described in 
        subsection (b)(1)(A), the Committee on Foreign Investment in 
        the United States may, at its discretion, conduct one or more 
        pilot programs to implement any authority provided pursuant to 
        any provision of or amendment made by this Act not specified in 
        subsection (a).</DELETED>
        <DELETED>    (2) Publication in federal register.--A pilot 
        program may not commence until the date that is 30 days after 
        publication in the Federal Register of a determination by the 
        chairperson of the Committee of the scope of and procedures for 
        the pilot program. That determination may not be 
        delegated.</DELETED>

<DELETED>SEC. 27. SEVERABILITY.</DELETED>

<DELETED>    If any provision of this Act or an amendment made by this 
Act, or the application of such a provision or amendment to any person 
or circumstance, is held to be invalid, the application of that 
provision or amendment to other persons or circumstances and the 
remainder of the provisions of this Act and the amendments made by this 
Act, shall not be affected thereby.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Foreign Investment 
Risk Review Modernization Act of 2018''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Sense of Congress.
Sec. 3. Definitions.
Sec. 4. Acceptance of written notices.
Sec. 5. Inclusion of partnership and side agreements in notice.
Sec. 6. Declarations for certain covered transactions.
Sec. 7. Stipulations regarding transactions.
Sec. 8. Authority for unilateral initiation of reviews.
Sec. 9. Timing for reviews and investigations.
Sec. 10. Monitoring of non-notified and non-declared transactions.
Sec. 11. Submission of certifications to Congress.
Sec. 12. Analysis by Director of National Intelligence.
Sec. 13. Information sharing.
Sec. 14. Action by the President.
Sec. 15. Judicial review.
Sec. 16. Membership and staff of Committee.
Sec. 17. Actions by the Committee to address national security risks.
Sec. 18. Modification of annual report and other reporting 
                            requirements.
Sec. 19. Certification of notices and information.
Sec. 20. Implementation plans.
Sec. 21. Assessment of need for additional resources for Committee.
Sec. 22. Funding.
Sec. 23. Centralization of certain Committee functions.
Sec. 24. Conforming amendments.
Sec. 25. Requirements to identify and control the export of emerging 
                            and foundational technologies.
Sec. 26. Export control enforcement authority.
Sec. 27. Prohibition on modification of civil penalties under export 
                            control and sanctions laws.
Sec. 28. Under Secretary of Commerce for Industry and Security.
Sec. 29. Limitation on cancellation of designation of Secretary of the 
                            Air Force as Department of Defense 
                            Executive Agent for a certain Defense 
                            Production Act program.
Sec. 30. Review of and report on certain defense technologies critical 
                            to the United States maintaining superior 
                            military capabilities.
Sec. 31. Briefing on information from transactions reviewed by 
                            Committee on Foreign Investment in the 
                            United States relating to foreign efforts 
                            to influence democratic institutions and 
                            processes.
Sec. 32. Effective date.
Sec. 33. Severability.

SEC. 2. SENSE OF CONGRESS.

    (a) In General.--It is the sense of Congress that--
            (1) foreign investment provides substantial economic 
        benefits to the United States, including the promotion of 
        economic growth, productivity, competitiveness, and job 
        creation, and the majority of foreign investment transactions 
        pose little or no risk to the national security of the United 
        States, especially when those investments are truly passive in 
        nature;
            (2) maintaining the commitment of the United States to open 
        and fair investment policy also encourages other countries to 
        reciprocate and helps open new foreign markets for United 
        States businesses and their products;
            (3) it should continue to be the policy of the United 
        States to enthusiastically welcome and support foreign 
        investment, consistent with the protection of national 
        security;
            (4) at the same time, the national security landscape has 
        shifted in recent years, and so has the nature of the 
        investments that pose the greatest potential risk to national 
        security, which warrants a modernization of the processes and 
        authorities of the Committee on Foreign Investment in the 
        United States and of the United States export control system;
            (5) the Committee on Foreign Investment in the United 
        States plays a critical role in protecting the national 
        security of the United States, and, therefore, it is essential 
        that the member agencies of the Committee are adequately 
        resourced and able to hire appropriately qualified individuals 
        in a timely manner, and that those individuals' security 
        clearances are processed as a high priority;
            (6) the President should conduct a more robust 
        international outreach effort to urge and help allies and 
        partners of the United States to establish processes that 
        parallel the Committee on Foreign Investment in the United 
        States to screen foreign investments for national security 
        risks and to facilitate coordination;
            (7) the President should lead a collaborative effort with 
        allies and partners of the United States to strengthen the 
        multilateral export control regime to more effectively address 
        the unprecedented industrial policies of certain countries of 
        special concern, including aggressive efforts to acquire United 
        States technology, and the blending of civil and military 
        programs;
            (8) any penalties imposed by the United States Government 
        with respect to an individual or entity pursuant to a 
        determination that the individual or entity has violated 
        sanctions imposed by the United States or the export control 
        laws of the United States should not be reversed for reasons 
        unrelated to the national security of the United States; and
            (9) the Committee on Foreign Investment in the United 
        States should continue to review transactions for the purpose 
        of protecting national security and should not consider issues 
        of national interest absent a national security nexus.
    (b) Sense of Congress on Consideration of Covered Transactions.--It 
is the sense of Congress that, when considering national security 
risks, the Committee on Foreign Investment in the United States may 
consider--
            (1) whether a transaction involves a country of special 
        concern that has a demonstrated or declared strategic goal of 
        acquiring a type of critical technology or critical 
        infrastructure that would affect United States technological 
        and industrial leadership in areas related to national 
        security;
            (2) the potential national security-related effects of the 
        cumulative market share of or a pattern of recent transactions 
        in any one type of infrastructure, energy asset, critical 
        material, or critical technology by foreign persons;
            (3) whether any foreign person that would acquire an 
        interest in a United States business or its assets as a result 
        of a transaction has a history of complying with United States 
        laws and regulations;
            (4) the extent to which a transaction is likely to expose, 
        either directly or indirectly, personally identifiable 
        information, genetic information, or other sensitive data of 
        United States citizens to access by a foreign government or 
        foreign person that may exploit that information in a manner 
        that threatens national security; and
            (5) whether a transaction is likely to have the effect of 
        exacerbating or creating new cybersecurity vulnerabilities in 
        the United States or is likely to result in a foreign 
        government gaining a significant new capability to engage in 
        malicious cyber-enabled activities against the United States, 
        including such activities designed to affect the outcome of any 
        election for Federal office.

SEC. 3. DEFINITIONS.

    Section 721(a) of the Defense Production Act of 1950 (50 U.S.C. 
4565(a)) is amended to read as follows:
    ``(a) Definitions.--In this section:
            ``(1) Access.--The term `access' means the ability and 
        opportunity to obtain information, subject to regulations 
        prescribed by the Committee.
            ``(2) Committee; chairperson.--The terms `Committee' and 
        `chairperson' mean the Committee on Foreign Investment in the 
        United States and the chairperson thereof, respectively.
            ``(3) Control.--The term `control' means the power to 
        determine, direct, or decide important matters affecting an 
        entity, subject to regulations prescribed by the Committee.
            ``(4) Country of special concern.--
                    ``(A) In general.--The term `country of special 
                concern' means a country that poses a significant 
                threat to the national security interests of the United 
                States.
                    ``(B) Rule of construction.--This paragraph shall 
                not be construed to require the Committee to maintain a 
                list of countries of special concern.
            ``(5) Covered transaction.--
                    ``(A) In general.--Except as otherwise provided, 
                the term `covered transaction' means--
                            ``(i) any transaction described in 
                        subparagraph (B)(i); and
                            ``(ii) any transaction described in clauses 
                        (ii) through (v) of subparagraph (B) that is 
                        proposed, pending, or completed on or after the 
                        effective date specified in section 32(b)(1)(A) 
                        of the Foreign Investment Risk Review 
                        Modernization Act of 2018.
                    ``(B) Transactions described.--A transaction 
                described in this subparagraph is any of the following:
                            ``(i) Any merger, acquisition, or takeover 
                        that is proposed or pending after August 23, 
                        1988, by or with any foreign person that could 
                        result in foreign control of any United States 
                        business.
                            ``(ii) Subject to subparagraph (C), the 
                        purchase or lease by a foreign person of, or a 
                        concession offered to a foreign person with 
                        respect to, private or public real estate 
                        that--
                                    ``(I) is located in the United 
                                States;
                                    ``(II)(aa) is, is located at, or 
                                will function as part of, a land, air, 
                                or maritime port; or
                                    ``(bb)(AA) is in close proximity to 
                                a United States military installation 
                                or another facility or property of the 
                                United States Government that is 
                                sensitive for reasons relating to 
                                national security;
                                    ``(BB) could reasonably provide the 
                                foreign person the ability to collect 
                                information on activities being 
                                conducted at such an installation, 
                                facility, or property; or
                                    ``(CC) could otherwise expose 
                                national security activities at such an 
                                installation, facility, or property to 
                                the risk of foreign surveillance; and
                                    ``(III) meets such other criteria 
                                as the Committee prescribes by 
                                regulation, as long as such criteria do 
                                not expand the categories of real 
                                estate to which this clause applies 
                                beyond the categories described in 
                                subclause (II).
                            ``(iii) Any other investment (other than a 
                        passive investment) by a foreign person in any 
                        United States critical technology company or 
                        United States critical infrastructure company 
                        that is unaffiliated with the foreign person, 
                        subject to regulations prescribed under 
                        subparagraph (C).
                            ``(iv) Any change in the rights that a 
                        foreign person has with respect to a United 
                        States business in which the foreign person has 
                        an investment, if that change could result in--
                                    ``(I) foreign control of the United 
                                States business; or
                                    ``(II) an investment described in 
                                clause (iii).
                            ``(v) Any other transaction, transfer, 
                        agreement, or arrangement the structure of 
                        which is designed or intended to evade or 
                        circumvent the application of this section, 
                        subject to regulations prescribed by the 
                        Committee.
                    ``(C) Further definition through regulations.--
                            ``(i) Exception for certain real estate 
                        transactions.--A real estate purchase or lease 
                        described in subparagraph (B)(ii) does not 
                        include a lease or purchase of--
                                    ``(I) a single `housing unit', as 
                                defined by the Census Bureau; or
                                    ``(II) real estate in `urbanized 
                                areas', as defined by the Census Bureau 
                                in the most recent census, except as 
                                otherwise prescribed by the Committee 
                                in regulations in consultation with the 
                                Secretary of Defense.
                            ``(ii) Certain other investment.--The 
                        Committee shall prescribe regulations further 
                        defining covered transactions described in 
                        subparagraph (B)(iii) by reference to the 
                        technology, sector, subsector, transaction 
                        type, or other characteristics of such 
                        transactions.
                            ``(iii) Exemption for transactions from 
                        identified countries.--
                                    ``(I) In general.--The Committee 
                                shall, by regulation, define 
                                circumstances and procedures under 
                                which a transaction otherwise described 
                                in clause (ii) or (iii) of subparagraph 
                                (B) is excluded from the definition of 
                                `covered transaction' if each foreign 
                                person that is a party to the 
                                transaction, and each foreign person 
                                with ownership or control over a party 
                                to the transaction, is from (as 
                                determined by the Committee pursuant to 
                                regulations prescribed by the 
                                Committee), a country or part of a 
                                country identified by the Committee for 
                                purposes of this clause based on 
                                factors established by the Committee, 
                                such as--
                                            ``(aa) whether, in the sole 
                                        judgment of the Committee, the 
                                        process of the country for 
                                        reviewing the national security 
                                        effects of foreign investment 
                                        and associated international 
                                        cooperation effectively 
                                        safeguards national security 
                                        interests the country shares 
                                        with the United States;
                                            ``(bb) whether the country 
                                        is a member country of the 
                                        North Atlantic Treaty 
                                        Organization or is designated 
                                        as a major non-NATO ally 
                                        pursuant to section 517 of the 
                                        Foreign Assistance Act of 1961 
                                        (22 U.S.C. 2321k);
                                            ``(cc) whether the country 
                                        adheres to nonproliferation 
                                        control regimes, including 
                                        treaties and multilateral 
                                        supply guidelines, which shall 
                                        be informed by sources such as 
                                        the annual report on `Adherence 
                                        to and Compliance with Arms 
                                        Control, Nonproliferation and 
                                        Disarmament Agreements and 
                                        Commitments' required by 
                                        section 403 of the Arms Control 
                                        and Disarmament Act (22 U.S.C. 
                                        2593a);
                                            ``(dd) whether excluding 
                                        transactions by foreign persons 
                                        from the country advances the 
                                        national security objectives of 
                                        the United States; and
                                            ``(ee) any other factors 
                                        that the Committee determines 
                                        to be appropriate.
                                    ``(II) Recurring assessment of 
                                identified countries.--The Committee 
                                shall reconsider on a regular basis the 
                                identification of countries and parts 
                                of countries under subclause (I).
                            ``(iv) Exception for air carriers.--For 
                        purposes of subparagraph (B)(iii), the term 
                        `other investment' does not include an 
                        investment involving an air carrier, as defined 
                        in section 40102(a)(2) of title 49, United 
                        States Code, that holds a certificate issued 
                        under section 41102 of that title.
                            ``(v) Transfers of certain assets pursuant 
                        to bankruptcy proceedings or other defaults.--
                        The Committee shall prescribe regulations to 
                        clarify that the term `covered transaction' 
                        includes any transaction described in 
                        subparagraph (B) that arises pursuant to a 
                        bankruptcy proceeding or other form of default 
                        on debt.
                    ``(D) Passive investment defined.--
                            ``(i) In general.--For purposes of 
                        subparagraph (B)(iii), the term `passive 
                        investment' means an investment, direct or 
                        indirect, by a foreign person in a United 
                        States critical infrastructure company or 
                        United States critical technology company that 
                        meets the following criteria:
                                    ``(I) The investment is not 
                                described in subparagraph (B)(i).
                                    ``(II) The investment does not 
                                afford the foreign person--
                                            ``(aa) access to any 
                                        material nonpublic technical 
                                        information in the possession 
                                        of the United States critical 
                                        infrastructure company or 
                                        United States critical 
                                        technology company;
                                            ``(bb) membership or 
                                        observer rights on the board of 
                                        directors or equivalent 
                                        governing body of the United 
                                        States critical infrastructure 
                                        company or United States 
                                        critical technology company or 
                                        the right to nominate an 
                                        individual to a position on the 
                                        board of directors or 
                                        equivalent governing body; or
                                            ``(cc) any involvement, 
                                        other than through voting of 
                                        shares, in substantive 
                                        decisionmaking relating to the 
                                        management, governance, or 
                                        operation of the United States 
                                        critical infrastructure company 
                                        or United States critical 
                                        technology company.
                                    ``(III) The foreign person does not 
                                have a material parallel strategic 
                                partnership or other material financial 
                                relationship, as described in 
                                regulations prescribed by the 
                                Committee, with the United States 
                                critical infrastructure company or 
                                United States critical technology 
                                company.
                                    ``(IV) Such other criteria as the 
                                Committee may prescribe by regulation, 
                                which shall be consistent with the 
                                criteria specified in subclauses (I), 
                                (II), and (III).
                            ``(ii) Material nonpublic technical 
                        information defined.--For purposes of clause 
                        (i)(II)(aa), the term `material nonpublic 
                        technical information' has the meaning given 
                        that term in regulations prescribed by the 
                        Committee, except that the term does not 
                        include financial information regarding the 
                        performance of a United States critical 
                        infrastructure company or United States 
                        critical technology company.
                            ``(iii) Effect of level of ownership 
                        interest.--
                                    ``(I) In general.--A determination 
                                of whether an investment is a passive 
                                investment under clause (i) shall be 
                                made without regard to how low the 
                                level of ownership interest a foreign 
                                person would hold or acquire in a 
                                United States critical infrastructure 
                                company or United States critical 
                                technology company would be as a result 
                                of the investment.
                                    ``(II) Regulations.--
                                            ``(aa) In general.--The 
                                        Committee may prescribe 
                                        regulations specifying that any 
                                        investment (other than an 
                                        investment described in item 
                                        (bb)) greater than a certain 
                                        level or amount shall not be 
                                        considered a passive investment 
                                        under clause (i).
                                            ``(bb) Investment 
                                        described.--An investment 
                                        described in this item is an 
                                        investment--

                                                    ``(AA) by a foreign 
                                                person in a United 
                                                States critical 
                                                infrastructure company 
                                                or United States 
                                                critical technology 
                                                company through an 
                                                investment fund;

                                                    ``(BB) that does 
                                                not result in the 
                                                foreign person's 
                                                control of the United 
                                                States critical 
                                                technology or United 
                                                States critical 
                                                infrastructure company; 
                                                and

                                                    ``(CC) that 
                                                otherwise meets the 
                                                requirements of clauses 
                                                (i) and (iv), as 
                                                applicable.

                            ``(iv) Specific clarification for 
                        investment funds.--
                                    ``(I) Treatment of certain 
                                investments as passive investments.--
                                Notwithstanding clause (i)(II)(bb) and 
                                subject to regulations prescribed by 
                                the Committee, an indirect investment 
                                by a foreign person in a United States 
                                critical infrastructure company or 
                                United States critical technology 
                                company through an investment fund that 
                                affords the foreign person (or a 
                                designee of the foreign person) 
                                membership as a limited partner on an 
                                advisory board or a committee of the 
                                fund shall be considered a passive 
                                investment if--
                                            ``(aa) the fund is managed 
                                        exclusively by a general 
                                        partner, a managing member, or 
                                        an equivalent;
                                            ``(bb) the general partner, 
                                        managing member, or equivalent 
                                        is not a foreign person;
                                            ``(cc) the advisory board 
                                        or committee does not have the 
                                        ability to approve, disapprove, 
                                        or otherwise control--

                                                    ``(AA) investment 
                                                decisions of the fund; 
                                                or

                                                    ``(BB) decisions 
                                                made by the general 
                                                partner, managing 
                                                member, or equivalent 
                                                related to entities in 
                                                which the fund is 
                                                invested;

                                            ``(dd) the foreign person 
                                        does not otherwise have the 
                                        ability to control the fund, 
                                        including the authority--

                                                    ``(AA) to approve, 
                                                disapprove, or 
                                                otherwise control 
                                                investment decisions of 
                                                the fund;

                                                    ``(BB) to approve, 
                                                disapprove, or 
                                                otherwise control 
                                                decisions made by the 
                                                general partner, 
                                                managing member, or 
                                                equivalent related to 
                                                entities in which the 
                                                fund is invested; or

                                                    ``(CC) to 
                                                unilaterally dismiss, 
                                                prevent the dismissal 
                                                of, select, or 
                                                determine the 
                                                compensation of the 
                                                general partner, 
                                                managing member, or 
                                                equivalent; and

                                            ``(ee) the investment 
                                        otherwise meets the 
                                        requirements of this 
                                        subparagraph.
                                    ``(II) Treatment of certain 
                                waivers.--
                                            ``(aa) In general.--For the 
                                        purposes of items (cc) and (dd) 
                                        of subclause (I) and except as 
                                        provided in item (bb), a waiver 
                                        of a potential conflict of 
                                        interest, a waiver of an 
                                        allocation limitation, or a 
                                        similar activity, applicable to 
                                        a transaction pursuant to the 
                                        terms of an agreement governing 
                                        an investment fund shall not be 
                                        considered to constitute 
                                        control of investment decisions 
                                        of the fund or decisions 
                                        relating to entities in which 
                                        the fund is invested.
                                            ``(bb) Exception.--The 
                                        Committee may prescribe 
                                        regulations providing for 
                                        exceptions to item (aa) for 
                                        extraordinary circumstances.
                            ``(v) Regulations.--The Committee shall 
                        prescribe regulations providing guidance on the 
                        types of transactions that the Committee 
                        considers to be passive investment.
                    ``(E) United states critical infrastructure company 
                defined.--For purposes of this paragraph, the term 
                `United States critical infrastructure company' means a 
                United States business that is, owns, operates, or 
                primarily provides services to, an entity or entities 
                that operate within a critical infrastructure sector or 
                subsector, as defined by regulations prescribed by the 
                Committee.
                    ``(F) United states critical technology company 
                defined.--For purposes of this paragraph, the term 
                `United States critical technology company' means a 
                United States business that produces, designs, tests, 
                manufactures, or develops one or more critical 
                technologies, or a subset of such technologies, as 
                defined by regulations prescribed by the Committee.
            ``(6) Critical infrastructure.--The term `critical 
        infrastructure' means, subject to regulations prescribed by the 
        Committee, systems and assets, whether physical or virtual, so 
        vital to the United States that the incapacity or destruction 
        of such systems or assets would have a debilitating impact on 
        national security.
            ``(7) Critical materials.--The term `critical materials' 
        means physical materials essential to national security, 
        subject to regulations prescribed by the Committee.
            ``(8) Critical technologies.--
                    ``(A) In general.--The term `critical technologies' 
                means technology, components, or technology items that 
                are essential or could be essential to national 
                security, identified for purposes of this section 
                pursuant to regulations prescribed by the Committee.
                    ``(B) Inclusion of certain items.--The term 
                `critical technologies' includes the following:
                            ``(i) Defense articles or defense services 
                        included on the United States Munitions List 
                        set forth in the International Traffic in Arms 
                        Regulations under subchapter M of chapter I of 
                        title 22, Code of Federal Regulations.
                            ``(ii) Items included on the Commerce 
                        Control List set forth in Supplement No. 1 to 
                        part 774 of the Export Administration 
                        Regulations under subchapter C of chapter VII 
                        of title 15, Code of Federal Regulations, and 
                        controlled--
                                    ``(I) pursuant to multilateral 
                                regimes, including for reasons relating 
                                to national security, chemical and 
                                biological weapons proliferation, 
                                nuclear nonproliferation, or missile 
                                technology; or
                                    ``(II) for reasons relating to 
                                regional stability or surreptitious 
                                listening.
                            ``(iii) Specially designed and prepared 
                        nuclear equipment, parts and components, 
                        materials, software, and technology covered by 
                        part 810 of title 10, Code of Federal 
                        Regulations (relating to assistance to foreign 
                        atomic energy activities).
                            ``(iv) Nuclear facilities, equipment, and 
                        material covered by part 110 of title 10, Code 
                        of Federal Regulations (relating to export and 
                        import of nuclear equipment and material).
                            ``(v) Select agents and toxins covered by 
                        part 331 of title 7, Code of Federal 
                        Regulations, part 121 of title 9 of such Code, 
                        or part 73 of title 42 of such Code.
                            ``(vi) Emerging and foundational 
                        technologies identified pursuant to section 
                        25(a) of the Foreign Investment Risk Review 
                        Modernization Act of 2018.
            ``(9) Foreign government-controlled transaction.--The term 
        `foreign government-controlled transaction' means any covered 
        transaction that could result in the control of any United 
        States business by a foreign government or an entity controlled 
        by or acting on behalf of a foreign government.
            ``(10) Foreign person.--
                    ``(A) In general.--The term `foreign person' 
                means--
                            ``(i) any foreign national, foreign 
                        government, or foreign entity; or
                            ``(ii) any entity over which control is 
                        exercised or exercisable by a foreign national, 
                        foreign government, or foreign entity.
                    ``(B) Foreign entity defined.--
                            ``(i) In general.--For purposes of 
                        subparagraph (A) and except as provided in 
                        clause (ii), the term `foreign entity' means 
                        any branch, partnership, group or subgroup, 
                        association, estate, trust, corporation or 
                        division of a corporation, or organization 
                        organized under the laws of a foreign country 
                        if--
                                    ``(I) the principal place of 
                                business of the entity is outside the 
                                United States; or
                                    ``(II) the equity securities of the 
                                entity are primarily traded on one or 
                                more foreign exchanges.
                            ``(ii) Exception.--For purposes of 
                        subparagraph (A), the term `foreign entity' 
                        does not include an entity that demonstrates to 
                        the Committee that a majority of the equity 
                        interest in the entity is ultimately owned by 
                        United States nationals.
            ``(11) Intelligence community.--The term `intelligence 
        community' has the meaning given that term in section 3(4) of 
        the National Security Act of 1947 (50 U.S.C. 3003(4)).
            ``(12) Investment.--The term `investment' means the 
        acquisition of equity interest, including contingent equity 
        interest, as further defined in regulations prescribed by the 
        Committee.
            ``(13) Lead agency.--The term `lead agency' means the 
        agency or agencies designated as the lead agency or agencies 
        pursuant to subsection (k)(5).
            ``(14) National security.--The term `national security' 
        shall be construed so as to include those issues relating to 
        `homeland security', including its application to critical 
        infrastructure.
            ``(15) Party.--The term `party' has the meaning given that 
        term in regulations prescribed by the Committee.
            ``(16) United states.--The term `United States' means the 
        several States, the District of Columbia, and any territory or 
        possession of the United States.
            ``(17) United states business.--The term `United States 
        business' means a person engaged in interstate commerce in the 
        United States.''.

SEC. 4. ACCEPTANCE OF WRITTEN NOTICES.

    Section 721(b)(1)(C)(i) of the Defense Production Act of 1950 (50 
U.S.C. 4565(b)(1)(C)(i)) is amended--
            (1) by striking ``Any party'' and inserting the following:
                                    ``(I) In general.--Any party''; and
            (2) by adding at the end the following:
                                    ``(II) Comments and acceptance.--
                                            ``(aa) In general.--Subject 
                                        to item (cc), the Committee 
                                        shall provide comments on a 
                                        draft or final written notice 
                                        or accept a final written 
                                        notice submitted under 
                                        subclause (I) with respect to a 
                                        covered transaction not later 
                                        than the date that is 10 
                                        business days after the date of 
                                        submission of the draft or 
                                        final notice.
                                            ``(bb) Completeness.--If 
                                        the Committee determines that a 
                                        draft or final written notice 
                                        described in item (aa) is not 
                                        complete, the Committee shall 
                                        notify the party or parties to 
                                        the transaction in writing that 
                                        the notice is not complete and 
                                        provide an explanation of all 
                                        material respects in which the 
                                        notice is incomplete.
                                            ``(cc) Stipulations 
                                        required.--The timing 
                                        requirement under item (aa) 
                                        shall apply only in a case in 
                                        which the parties stipulate 
                                        under clause (vi) that the 
                                        transaction is a covered 
                                        transaction.''.

SEC. 5. INCLUSION OF PARTNERSHIP AND SIDE AGREEMENTS IN NOTICE.

    Section 721(b)(1)(C) of the Defense Production Act of 1950 (50 
U.S.C. 4565(b)(1)(C)) is amended by adding at the end the following:
                            ``(iv) Inclusion of partnership and side 
                        agreements.--A written notice submitted under 
                        clause (i) by a party to a covered transaction 
                        shall include a copy of any partnership 
                        agreements, integration agreements, or other 
                        side agreements relating to the transaction, 
                        including any such agreements relating to the 
                        transfer of intellectual property, as specified 
                        in regulations prescribed by the Committee.''.

SEC. 6. DECLARATIONS FOR CERTAIN COVERED TRANSACTIONS.

    Section 721(b)(1)(C) of the Defense Production Act of 1950 (50 
U.S.C. 4565(b)(1)(C)), as amended by section 5, is further amended by 
adding at the end the following:
                            ``(v) Declarations for certain covered 
                        transactions.--
                                    ``(I) In general.--A party to any 
                                covered transaction may submit to the 
                                Committee a declaration with basic 
                                information regarding the transaction 
                                instead of a written notice under 
                                clause (i).
                                    ``(II) Regulations.--The Committee 
                                shall prescribe regulations 
                                establishing requirements for 
                                declarations submitted under this 
                                clause. In prescribing such 
                                regulations, the Committee shall ensure 
                                that such declarations are submitted as 
                                abbreviated notifications that would 
                                not generally exceed 5 pages in length.
                                    ``(III) Committee response to 
                                declaration.--
                                            ``(aa) In general.--Upon 
                                        receiving a declaration under 
                                        this clause with respect to a 
                                        covered transaction, the 
                                        Committee may, at the 
                                        discretion of the Committee--

                                                    ``(AA) request that 
                                                the parties to the 
                                                transaction file a 
                                                written notice under 
                                                clause (i);

                                                    ``(BB) inform the 
                                                parties to the 
                                                transaction that the 
                                                Committee is not able 
                                                to complete action 
                                                under this section with 
                                                respect to the 
                                                transaction on the 
                                                basis of the 
                                                declaration and that 
                                                the parties may file a 
                                                written notice under 
                                                clause (i) to seek 
                                                written notification 
                                                from the Committee that 
                                                the Committee has 
                                                completed all action 
                                                under this section with 
                                                respect to the 
                                                transaction;

                                                    ``(CC) initiate a 
                                                unilateral review of 
                                                the transaction under 
                                                subparagraph (D); or

                                                    ``(DD) notify the 
                                                parties in writing that 
                                                the Committee has 
                                                completed all action 
                                                under this section with 
                                                respect to the 
                                                transaction.

                                            ``(bb) Timing.--The 
                                        Committee shall take action 
                                        under item (aa) not later than 
                                        30 days after receiving a 
                                        declaration under this clause.
                                            ``(cc) Rule of 
                                        construction.--Nothing in this 
                                        subclause (other than item 
                                        (aa)(CC)) shall be construed to 
                                        affect the authority of the 
                                        President or the Committee to 
                                        take any action authorized by 
                                        this section with respect to a 
                                        covered transaction.
                                    ``(IV) Mandatory declarations.--
                                            ``(aa) Regulations.--The 
                                        Committee shall prescribe 
                                        regulations specifying the 
                                        types of covered transactions 
                                        for which the Committee 
                                        requires a declaration under 
                                        this subclause.
                                            ``(bb) Certain covered 
                                        transactions with foreign 
                                        government interests.--

                                                    ``(AA) In 
                                                general.--Except as 
                                                provided in subitem 
                                                (BB), the parties to a 
                                                covered transaction 
                                                shall submit a 
                                                declaration described 
                                                in subclause (I) with 
                                                respect to the 
                                                transaction if the 
                                                transaction involves an 
                                                investment that results 
                                                in the acquisition, 
                                                directly or indirectly, 
                                                of a substantial 
                                                interest in a United 
                                                States critical 
                                                infrastructure company 
                                                or United States 
                                                critical technology 
                                                company by a foreign 
                                                person in which a 
                                                foreign government has, 
                                                directly or indirectly, 
                                                a substantial interest.

                                                    ``(BB) Exception.--
                                                The submission of a 
                                                declaration described 
                                                in subclause (I) shall 
                                                not be required with 
                                                respect to a 
                                                transaction described 
                                                in subitem (AA) if each 
                                                foreign person that is 
                                                a party to the 
                                                transaction, and each 
                                                foreign person with 
                                                ownership or control 
                                                over a party to the 
                                                transaction, is from a 
                                                country or part of a 
                                                country identified by 
                                                the Committee under 
                                                subsection 
                                                (a)(5)(C)(iii).

                                                    ``(CC) Substantial 
                                                interest defined.--In 
                                                this item, the term 
                                                `substantial interest' 
                                                has the meaning given 
                                                that term in 
                                                regulations which the 
                                                Committee shall 
                                                prescribe. In 
                                                developing those 
                                                regulations, the 
                                                Committee shall 
                                                consider the means by 
                                                which a foreign 
                                                government could 
                                                influence the actions 
                                                of a foreign person, 
                                                including through board 
                                                membership, ownership 
                                                interest, or 
                                                shareholder rights. An 
                                                interest that is a 
                                                passive investment (as 
                                                defined in subsection 
                                                (a)(5)(D)) or that is 
                                                less than a 10 percent 
                                                voting interest shall 
                                                not be considered a 
                                                substantial interest.

                                            ``(cc) Other declarations 
                                        required by committee.--The 
                                        Committee shall require the 
                                        submission of a declaration 
                                        described in subclause (I) with 
                                        respect to any covered 
                                        transaction identified under 
                                        regulations prescribed by the 
                                        Committee for purposes of this 
                                        item, at the discretion of the 
                                        Committee and based on 
                                        appropriate factors, such as--

                                                    ``(AA) the 
                                                technology, industry, 
                                                economic sector, or 
                                                economic subsector in 
                                                which the United States 
                                                business that is a 
                                                party to the 
                                                transaction trades or 
                                                of which it is a part;

                                                    ``(BB) the 
                                                difficulty of remedying 
                                                the harm to national 
                                                security that may 
                                                result from completion 
                                                of the transaction;

                                                    ``(CC) the 
                                                difficulty of obtaining 
                                                information on the type 
                                                of covered transaction 
                                                through other means; 
                                                and

                                                    ``(DD) the 
                                                difficulty of obtaining 
                                                information on the 
                                                ultimate ownership of 
                                                the foreign person that 
                                                is a party to the 
                                                transaction.

                                            ``(dd) Exception.--The 
                                        submission of a declaration 
                                        described in subclause (I) 
                                        shall not be required pursuant 
                                        to this subclause with respect 
                                        to an investment by an 
                                        investment fund if--

                                                    ``(AA) the fund is 
                                                managed exclusively by 
                                                a general partner, a 
                                                managing member, or an 
                                                equivalent;

                                                    ``(BB) the general 
                                                partner, managing 
                                                member, or equivalent 
                                                is not a foreign 
                                                person; and

                                                    ``(CC) the 
                                                investment fund 
                                                satisfies, with respect 
                                                to any foreign person 
                                                with membership as a 
                                                limited partner on an 
                                                advisory board or a 
                                                committee of the fund, 
                                                the criteria specified 
                                                in items (cc) and (dd) 
                                                of subsection 
                                                (a)(5)(D)(iv).

                                            ``(ee) Submission of 
                                        written notice as an 
                                        alternative.--Parties to a 
                                        covered transaction for which a 
                                        declaration is required under 
                                        this subclause may instead 
                                        elect to submit a written 
                                        notice under clause (i).
                                            ``(ff) Timing of 
                                        submission.--

                                                    ``(AA) In 
                                                general.--A declaration 
                                                required to be 
                                                submitted with respect 
                                                to a covered 
                                                transaction by this 
                                                subclause shall be 
                                                submitted not later 
                                                than 45 days before the 
                                                completion of the 
                                                transaction.

                                                    ``(BB) Written 
                                                notice.--If, pursuant 
                                                to item (ee), the 
                                                parties to a covered 
                                                transaction elect to 
                                                submit a written notice 
                                                under clause (i) 
                                                instead of a 
                                                declaration under this 
                                                subclause, the written 
                                                notice shall be filed 
                                                not later than 90 days 
                                                before the completion 
                                                of the transaction.

                                            ``(gg) Penalties.--The 
                                        Committee may impose a penalty 
                                        pursuant to subsection (h)(3) 
                                        with respect to a party that 
                                        fails to comply with this 
                                        subclause.''.

SEC. 7. STIPULATIONS REGARDING TRANSACTIONS.

    Section 721(b)(1)(C) of the Defense Production Act of 1950 (50 
U.S.C. 4565(b)(1)(C)), as amended by section 6, is further amended by 
adding at the end the following:
                            ``(vi) Stipulations regarding 
                        transactions.--
                                    ``(I) In general.--In a written 
                                notice submitted under clause (i) or a 
                                declaration submitted under clause (v) 
                                with respect to a transaction, a party 
                                to the transaction may--
                                            ``(aa) stipulate that the 
                                        transaction is a covered 
                                        transaction; and
                                            ``(bb) if the party 
                                        stipulates that the transaction 
                                        is a covered transaction under 
                                        item (aa), stipulate that the 
                                        transaction is a foreign 
                                        government-controlled 
                                        transaction.
                                    ``(II) Basis for stipulation.--A 
                                written notice submitted under clause 
                                (i) or a declaration submitted under 
                                clause (v) that includes a stipulation 
                                under subclause (I) shall include a 
                                description of the basis for the 
                                stipulation.''.

SEC. 8. AUTHORITY FOR UNILATERAL INITIATION OF REVIEWS.

    Section 721(b)(1) of the Defense Production Act of 1950 (50 U.S.C. 
4565(b)(1)) is amended--
            (1) by redesignating subparagraphs (E) and (F) as 
        subparagraphs (F) and (G), respectively;
            (2) in subparagraph (D)--
                    (A) in the matter preceding clause (i), by striking 
                ``subparagraph (F)'' and inserting ``subparagraph 
                (G)'';
                    (B) in clause (i), by inserting ``(other than a 
                covered transaction described in subparagraph (E))'' 
                after ``any covered transaction'';
                    (C) by striking clause (ii) and inserting the 
                following:
                            ``(ii) any covered transaction described in 
                        subparagraph (E), if any party to the 
                        transaction submitted false or misleading 
                        material information to the Committee in 
                        connection with the Committee's consideration 
                        of the transaction or omitted material 
                        information, including material documents, from 
                        information submitted to the Committee; or''; 
                        and
                    (D) in clause (iii)--
                            (i) in the matter preceding subclause (I), 
                        by striking ``any covered transaction that has 
                        previously been reviewed or investigated under 
                        this section,'' and inserting ``any covered 
                        transaction described in subparagraph (E),'';
                            (ii) in subclause (I), by striking 
                        ``intentionally'';
                            (iii) in subclause (II), by striking ``an 
                        intentional'' and inserting ``a''; and
                            (iv) in subclause (III), by inserting 
                        ``adequate and appropriate'' before ``remedies 
                        or enforcement tools''; and
            (3) by inserting after subparagraph (D) the following:
                    ``(E) Covered transactions described.--A covered 
                transaction is described in this subparagraph if--
                            ``(i) the Committee has informed the 
                        parties to the transaction in writing that the 
                        Committee has completed all action under this 
                        section with respect to the transaction; or
                            ``(ii) the President has announced a 
                        decision not to exercise the President's 
                        authority under subsection (d) with respect to 
                        the transaction.''.

SEC. 9. TIMING FOR REVIEWS AND INVESTIGATIONS.

    Section 721(b) of the Defense Production Act of 1950 (50 U.S.C. 
4565(b)), as amended by section 8, is further amended--
            (1) in paragraph (1)(F), by striking ``30'' and inserting 
        ``45'';
            (2) in paragraph (2), by striking subparagraph (C) and 
        inserting the following:
                    ``(C) Timing.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), any investigation under 
                        subparagraph (A) shall be completed before the 
                        end of the 45-day period beginning on the date 
                        on which the investigation commenced.
                            ``(ii) Extension for extraordinary 
                        circumstances.--
                                    ``(I) In general.--In extraordinary 
                                circumstances (as defined by the 
                                Committee in regulations), the 
                                chairperson may, at the request of the 
                                head of the lead agency, extend an 
                                investigation under subparagraph (A) 
                                for one 30-day period.
                                    ``(II) Nondelegation.--The 
                                authority of the chairperson and the 
                                head of the lead agency referred to in 
                                subclause (I) may not be delegated to 
                                any person other than the Deputy 
                                Secretary of the Treasury or the deputy 
                                head (or equivalent thereof) of the 
                                lead agency, as the case may be.
                                    ``(III) Notification to parties.--
                                If the Committee extends the deadline 
                                under subclause (I) with respect to a 
                                covered transaction, the Committee 
                                shall notify the parties to the 
                                transaction of the extension.''; and
            (3) by adding at the end the following:
            ``(8) Tolling of deadlines during lapse in 
        appropriations.--Any deadline or time limitation under this 
        subsection shall be tolled during a lapse in appropriations.''.

SEC. 10. MONITORING OF NON-NOTIFIED AND NON-DECLARED TRANSACTIONS.

    Section 721(b)(1) of the Defense Production Act of 1950 (50 U.S.C. 
4565(b)(1)), as amended by sections 8 and 9, is further amended by 
adding at the end the following:
                    ``(H) Monitoring of non-notified and non-declared 
                transactions.--The Committee shall establish a 
                mechanism to identify covered transactions for which--
                            ``(i) a notice under clause (i) of 
                        subparagraph (C) or a declaration under clause 
                        (v) of that subparagraph is not submitted to 
                        the Committee; and
                            ``(ii) information is reasonably 
                        available.''.

SEC. 11. SUBMISSION OF CERTIFICATIONS TO CONGRESS.

    Section 721(b)(3)(C) of the Defense Production Act of 1950 (50 
U.S.C. 4565(b)(3)(C)) is amended--
            (1) in clause (iii)--
                    (A) in subclause (II), by inserting ``and the 
                Select Committee on Intelligence'' after ``Urban 
                Affairs''; and
                    (B) in subclause (IV), by inserting ``and the 
                Permanent Select Committee on Intelligence'' after 
                ``Financial Services'';
            (2) in clause (iv), by striking subclause (II) and 
        inserting the following:
                                    ``(II) Delegation of 
                                certifications.--
                                            ``(aa) In general.--Subject 
                                        to item (bb), the chairperson, 
                                        in consultation with the 
                                        Committee, may determine the 
                                        level of official to whom the 
                                        signature requirement under 
                                        subclause (I) for the 
                                        chairperson and the head of the 
                                        lead agency may be delegated. 
                                        The level of official to whom 
                                        the signature requirement may 
                                        be delegated may differ based 
                                        on any factor relating to a 
                                        transaction that the 
                                        chairperson, in consultation 
                                        with the Committee, deems 
                                        appropriate, including the type 
                                        or value of the transaction.
                                            ``(bb) Limitation on 
                                        delegation with respect to 
                                        certain transactions.--The 
                                        signature requirement under 
                                        subclause (I) may be delegated 
                                        not below the level of the 
                                        Assistant Secretary of the 
                                        Treasury or an equivalent 
                                        official of the lead agency in 
                                        the case of a covered 
                                        transaction--

                                                    ``(AA) assessed by 
                                                the Director of 
                                                National Intelligence 
                                                under paragraph (4) as 
                                                more likely than not to 
                                                threaten the national 
                                                security of the United 
                                                States;

                                                    ``(BB) with respect 
                                                to which the Committee 
                                                conducts an 
                                                investigation under 
                                                paragraph (2); or

                                                    ``(CC) with respect 
                                                to which a request is 
                                                made by an official at 
                                                the Deputy Assistant 
                                                Secretary or Assistant 
                                                Secretary level of an 
                                                agency or department 
                                                represented on the 
                                                Committee, or an 
                                                equivalent thereof, 
                                                that the transaction be 
                                                reviewed by the 
                                                Assistant Secretary of 
                                                the Treasury and an 
                                                equivalent official of 
                                                the lead agency.

                                            ``(cc) Limitation on 
                                        delegation with respect to 
                                        other transactions.--In the 
                                        case of any covered transaction 
                                        not described in item (bb), the 
                                        signature requirement under 
                                        subclause (I) may be delegated 
                                        not below the level of a Deputy 
                                        Assistant Secretary of the 
                                        Treasury or an equivalent 
                                        official of the lead agency.''; 
                                        and
            (3) by adding at the end the following:
                            ``(v) Authority to consolidate documents.--
                        Instead of transmitting a separate certified 
                        notice or certified report under subparagraph 
                        (A) or (B) with respect to each covered 
                        transaction, the Committee may, on a monthly 
                        basis, transmit such notices and reports in a 
                        consolidated document to the Members of 
                        Congress specified in clause (iii).''.

SEC. 12. ANALYSIS BY DIRECTOR OF NATIONAL INTELLIGENCE.

    Section 721(b)(4) of the Defense Production Act of 1950 (50 U.S.C. 
4565(b)(4)) is amended--
            (1) by striking subparagraph (A) and inserting the 
        following:
                    ``(A) Analysis required.--
                            ``(i) In general.--Except as provided in 
                        subparagraph (B), the Director of National 
                        Intelligence shall expeditiously carry out a 
                        thorough analysis of any threat to the national 
                        security of the United States posed by any 
                        covered transaction, which shall include the 
                        identification of any recognized gaps in the 
                        collection of intelligence relevant to the 
                        analysis.
                            ``(ii) Views of intelligence community.--
                        The Director shall seek and incorporate into 
                        the analysis required by clause (i) the views 
                        of all affected or appropriate agencies of the 
                        intelligence community with respect to the 
                        transaction.
                            ``(iii) Updates.--At the request of the 
                        lead agency, the Director shall update the 
                        analysis conducted under clause (i) with 
                        respect to a covered transaction with respect 
                        to which an agreement was entered into under 
                        subsection (l)(3)(A).
                            ``(iv) Independence and objectivity.--The 
                        Committee shall ensure that its processes under 
                        this section preserve the ability of the 
                        Director to conduct analysis under clause (i) 
                        that is independent, objective, and consistent 
                        with all applicable directives, policies, and 
                        analytic tradecraft standards of the 
                        intelligence community.'';
            (2) by redesignating subparagraphs (B), (C), and (D) as 
        subparagraphs (C), (D), and (E), respectively;
            (3) by inserting after subparagraph (A) the following:
                    ``(B) Basic threat information.--
                            ``(i) In general.--The Director of National 
                        Intelligence may provide the Committee with 
                        basic information regarding any threat to the 
                        national security of the United States posed by 
                        a covered transaction described in clause (ii) 
                        instead of conducting the analysis required by 
                        subparagraph (A).
                            ``(ii) Covered transaction described.--A 
                        covered transaction is described in this clause 
                        if--
                                    ``(I) the transaction is described 
                                in subsection (a)(5)(B)(ii);
                                    ``(II) the Director of National 
                                Intelligence has completed an analysis 
                                pursuant to subparagraph (A) involving 
                                each foreign person that is a party to 
                                the transaction during the 12 months 
                                preceding the review or investigation 
                                of the transaction under this section; 
                                or
                                    ``(III) the transaction otherwise 
                                meets criteria agreed upon by the 
                                Committee and the Director for purposes 
                                of this subparagraph.'';
            (4) in subparagraph (C), as redesignated by paragraph (2), 
        by striking ``20'' and inserting ``30''; and
            (5) by adding at the end the following:
                    ``(F) Assessment of operational impact.--The 
                Director may provide to the Committee an assessment, 
                separate from the analyses under subparagraphs (A) and 
                (B), of any operational impact of a covered transaction 
                on the intelligence community and a description of any 
                actions that have been or will be taken to mitigate any 
                such impact.
                    ``(G) Submission to congress.--The Committee shall 
                submit the analysis required by subparagraph (A) with 
                respect to a covered transaction to the Select 
                Committee on Intelligence of the Senate and the 
                Permanent Select Committee on Intelligence of the House 
                of Representatives upon the conclusion of action under 
                this section (other than compliance plans under 
                subsection (l)(6)) with respect to the transaction.''.

SEC. 13. INFORMATION SHARING.

    Section 721(c) of the Defense Production Act of 1950 (50 U.S.C. 
4565(c)) is amended--
            (1) by striking ``Any information'' and inserting the 
        following:
            ``(1) In general.--Except as provided in paragraph (2), any 
        information'';
            (2) by striking ``, except as may be relevant'' and all 
        that follows and inserting a period; and
            (3) by adding at the end the following:
            ``(2) Exceptions.--Paragraph (1) shall not prohibit the 
        disclosure of the following:
                    ``(A) Information relevant to any administrative or 
                judicial action or proceeding.
                    ``(B) Information to Congress or any duly 
                authorized committee or subcommittee of Congress.
                    ``(C) Information to any domestic or foreign 
                governmental entity, under the direction of the 
                chairperson, to the extent necessary for national 
                security purposes and pursuant to appropriate 
                confidentiality and classification arrangements.
                    ``(D) Information that the parties have consented 
                to be disclosed to third parties.
            ``(3) Cooperation with allies and partners.--
                    ``(A) In general.--The chairperson, in consultation 
                with other members of the Committee, should establish a 
                formal process for the exchange of information under 
                paragraph (2)(C) with governments of countries that are 
                allies or partners of the United States, in the 
                discretion of the chairperson, to protect the national 
                security of the United States and those countries.
                    ``(B) Requirements.--The process established under 
                subparagraph (A) should, in the discretion of the 
                chairperson--
                            ``(i) be designed to facilitate the 
                        harmonization of action with respect to trends 
                        in investment and technology that could pose 
                        risks to the national security of the United 
                        States and countries that are allies or 
                        partners of the United States;
                            ``(ii) provide for the sharing of 
                        information with respect to specific 
                        technologies and entities acquiring such 
                        technologies as appropriate to ensure national 
                        security; and
                            ``(iii) include consultations and meetings 
                        with representatives of the governments of such 
                        countries on a recurring basis.''.

SEC. 14. ACTION BY THE PRESIDENT.

    (a) In General.--Section 721(d) of the Defense Production Act of 
1950 (50 U.S.C. 4565(d)) is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) In general.--Subject to paragraph (4), the President 
        may, with respect to a covered transaction that threatens to 
        impair the national security of the United States, take such 
        action for such time as the President considers appropriate to 
        suspend or prohibit the transaction or to require 
        divestment.''; and
            (2) in paragraph (2), by striking ``not later than 15 
        days'' and all that follows and inserting the following: ``with 
        respect to a covered transaction not later than 15 days after 
        the earlier of--
                    ``(A) the date on which the investigation of the 
                transaction under subsection (b) is completed; or
                    ``(B) the date on which the Committee otherwise 
                refers the transaction to the President under 
                subsection (l)(2).''.
    (b) Civil Penalties.--Section 721(h)(3)(A) of the Defense 
Production Act of 1950 (50 U.S.C. 4565(h)(3)(A)) is amended by striking 
``including any mitigation'' and all that follows through ``subsection 
(l)'' and inserting ``including any mitigation agreement entered into, 
conditions imposed, or order issued pursuant to this section''.

SEC. 15. JUDICIAL REVIEW.

    Section 721(e) of the Defense Production Act of 1950 (50 U.S.C. 
4565(e)) is amended--
            (1) by striking ``The actions'' and inserting the 
        following:
            ``(1) In general.--The actions''; and
            (2) by adding at the end the following:
            ``(2) Civil actions.--A civil action challenging an action 
        or finding of the Committee under this section may be brought 
        only in the United States Court of Appeals for the District of 
        Columbia Circuit.
            ``(3) Procedures for review of privileged information.--If 
        a civil action challenging an action or finding of the 
        Committee under this section is brought, and the court 
        determines that protected information in the administrative 
        record, including classified, sensitive law enforcement, 
        sensitive security, or other information subject to privilege 
        or protections under any provision of law, is necessary to 
        resolve the challenge, that information shall be submitted ex 
        parte and in camera to the court and the court shall maintain 
        that information under seal.
            ``(4) Applicability of use of information provisions.--The 
        use of information provisions of sections 106, 305, 405, and 
        706 of the Foreign Intelligence Surveillance Act of 1978 (50 
        U.S.C. 1806, 1825, 1845, and 1881e) shall not apply in a civil 
        action brought under this subsection.''.

SEC. 16. MEMBERSHIP AND STAFF OF COMMITTEE.

    (a) Hiring Authority.--Section 721(k) of the Defense Production Act 
of 1950 (50 U.S.C. 4565(k)) is amended by striking paragraph (4) and 
inserting the following:
            ``(4) Hiring authority.--
                    ``(A) Senior officials.--
                            ``(i) In general.--Each member of the 
                        Committee shall designate an Assistant 
                        Secretary, or an equivalent official, who is 
                        appointed by the President, by and with the 
                        advice and consent of the Senate, to carry out 
                        such duties related to the Committee as the 
                        member of the Committee may delegate.
                            ``(ii) Department of the treasury.--In 
                        addition to officials of the Department of the 
                        Treasury authorized under section 301 of title 
                        31, United States Code, or any other provision 
                        of law, there are authorized at the Department 
                        of the Treasury, to carry out such duties 
                        related to the Committee as the Secretary of 
                        the Treasury may delegate, consistent with this 
                        section and reflecting the expanded authorities 
                        of the Committee and the role of the Department 
                        of the Treasury in implementing those 
                        authorities under the amendments made by the 
                        Foreign Investment Risk Review Modernization 
                        Act of 2018, the following:
                                    ``(I) One official, who is 
                                appointed by the President, by and with 
                                the advice and consent of the Senate, 
                                who shall be compensated at a rate not 
                                to exceed the rate of basic pay payable 
                                for level III of the Executive Schedule 
                                under section 5314 of title 5, United 
                                States Code.
                                    ``(II) One official, who is 
                                appointed by the President, by and with 
                                the advice and consent of the Senate, 
                                who shall be compensated at a rate not 
                                to exceed the rate of basic pay payable 
                                for level IV of the Executive Schedule 
                                under section 5315 of title 5, United 
                                States Code.
                    ``(B) Special hiring authority.--The heads of the 
                departments and agencies represented on the Committee 
                may appoint, without regard to the provisions of 
                sections 3309 through 3318 of title 5, United States 
                Code, candidates directly to positions in the 
                competitive service (as defined in section 2102 of that 
                title) in their respective departments and agencies to 
                administer this section.''.
    (b) Procedures for Recusal of Members of Committee for Conflicts of 
Interest.--Not later than 90 days after the date of the enactment of 
this Act, the Committee on Foreign Investment in the United States 
shall--
            (1) establish procedures for the recusal of any member of 
        the Committee that has a conflict of interest with respect to a 
        covered transaction (as defined in section 721 of the Defense 
        Production Act of 1950, as amended by section 3);
            (2) submit to the Committee on Banking, Housing, and Urban 
        Affairs of the Senate and the Committee on Financial Services 
        of the House of Representatives a report describing those 
        procedures; and
            (3) brief the committees specified in paragraph (1) on the 
        report required by paragraph (2).

SEC. 17. ACTIONS BY THE COMMITTEE TO ADDRESS NATIONAL SECURITY RISKS.

    Section 721(l) of the Defense Production Act of 1950 (50 U.S.C. 
4565(l)) is amended--
            (1) in the subsection heading, by striking ``Mitigation, 
        Tracking, and Postconsummation Monitoring and Enforcement'' and 
        inserting ``Actions by the Committee to Address National 
        Security Risks'';
            (2) by redesignating paragraphs (1), (2), and (3) as 
        paragraphs (3), (5), and (6), respectively;
            (3) by inserting before paragraph (3), as redesignated by 
        paragraph (2), the following:
            ``(1) Suspension of transactions.--The Committee, acting 
        through the chairperson, may suspend a proposed or pending 
        covered transaction that may pose a risk to the national 
        security of the United States for such time as the covered 
        transaction is under review or investigation under subsection 
        (b).
            ``(2) Referral to president.--The Committee may, at any 
        time during the review or investigation of a covered 
        transaction under subsection (b), complete the action of the 
        Committee with respect to the transaction and refer the 
        transaction to the President for action pursuant to subsection 
        (d).'';
            (4) in paragraph (3), as redesignated by paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) in the subparagraph heading, by 
                        striking ``In general'' and inserting 
                        ``Agreements and conditions'';
                            (ii) by striking ``The Committee'' and 
                        inserting the following:
                            ``(i) In general.--The Committee'';
                            (iii) by striking ``threat'' and inserting 
                        ``risk''; and
                            (iv) by adding at the end the following:
                            ``(ii) Abandonment of transactions.--If a 
                        party to a covered transaction has voluntarily 
                        chosen to abandon the transaction, the 
                        Committee or lead agency, as the case may be, 
                        may negotiate, enter into or impose, and 
                        enforce any agreement or condition with any 
                        party to the covered transaction for purposes 
                        of effectuating such abandonment and mitigating 
                        any risk to the national security of the United 
                        States that arises as a result of the covered 
                        transaction.
                            ``(iii) Agreements and conditions relating 
                        to completed transactions.--The Committee or 
                        lead agency, as the case may be, may negotiate, 
                        enter into or impose, and enforce any agreement 
                        or condition with any party to a completed 
                        covered transaction in order to mitigate any 
                        interim risk to the national security of the 
                        United States that may arise as a result of the 
                        covered transaction until such time that the 
                        Committee has completed action pursuant to 
                        subsection (b) or the President has taken 
                        action pursuant to subsection (d) with respect 
                        to the transaction.''; and
                    (B) by striking subparagraph (B) and inserting the 
                following:
                    ``(B) Limitations.--An agreement may not be entered 
                into or condition imposed under subparagraph (A) with 
                respect to a covered transaction unless the Committee 
                determines that the agreement or condition resolves the 
                national security concerns posed by the transaction, 
                taking into consideration whether the agreement or 
                condition is reasonably calculated to--
                            ``(i) be effective;
                            ``(ii) allow for compliance with the terms 
                        of the agreement or condition in an 
                        appropriately verifiable way; and
                            ``(iii) enable effective monitoring of 
                        compliance with and enforcement of the terms of 
                        the agreement or condition.
                    ``(C) Jurisdiction.--The provisions of section 
                706(b) shall apply to any mitigation agreement entered 
                into or condition imposed under subparagraph (A).'';
            (5) by inserting after paragraph (3), as redesignated by 
        paragraph (2), the following:
            ``(4) Risk-based analysis required.--
                    ``(A) In general.--Any determination of the 
                Committee to suspend a covered transaction under 
                paragraph (1), to refer a covered transaction to the 
                President under paragraph (2), or to negotiate, enter 
                into or impose, or enforce any agreement or condition 
                under paragraph (3)(A) with respect to a covered 
                transaction, shall be based on a risk-based analysis, 
                conducted by the Committee, of the effects on the 
                national security of the United States of the covered 
                transaction, which shall include an assessment of the 
                threat, vulnerabilities, and consequences to national 
                security related to the transaction.
                    ``(B) Actions of members of the committee.--
                            ``(i) In general.--Any member of the 
                        Committee who concludes that a covered 
                        transaction poses an unresolved national 
                        security concern shall recommend to the 
                        Committee that the Committee suspend the 
                        transaction under paragraph (1), refer the 
                        transaction to the President under paragraph 
                        (2), or negotiate, enter into or impose, or 
                        enforce any agreement or condition under 
                        paragraph (3)(A) with respect to the 
                        transaction. In making that recommendation, the 
                        member shall propose or contribute to the risk-
                        based analysis required by subparagraph (A).
                            ``(ii) Failure to reach consensus.--If the 
                        Committee fails to reach consensus with respect 
                        to a recommendation under clause (i) regarding 
                        a covered transaction, the members of the 
                        Committee who support an alternative 
                        recommendation shall produce--
                                    ``(I) a written statement 
                                justifying the alternative 
                                recommendation; and
                                    ``(II) as appropriate, a risk-based 
                                analysis that supports the alternative 
                                recommendation.
                    ``(C) Definitions.--For purposes of subparagraph 
                (A), the terms `threat', `vulnerabilities', and 
                `consequences to national security' shall have the 
                meanings given those terms by the Committee by 
                regulation.'';
            (6) in paragraph (5)(B), as redesignated by paragraph (2), 
        by striking ``(as defined in the National Security Act of 
        1947)''; and
            (7) in paragraph (6), as redesignated by paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) by striking ``paragraph (1)'' and 
                        inserting ``paragraph (3)''; and
                            (ii) by striking the second sentence and 
                        inserting the following: ``The lead agency may, 
                        at its discretion, seek and receive the 
                        assistance of other departments or agencies in 
                        carrying out the purposes of this paragraph.'';
                    (B) in subparagraph (B)--
                            (i) by striking ``designated agency'' and 
                        all that follows through ``The lead agency in 
                        connection'' and inserting ``designated 
                        agency.--The lead agency in connection'';
                            (ii) by striking clause (ii); and
                            (iii) by redesignating subclauses (I) and 
                        (II) as clauses (i) and (ii), respectively, and 
                        by moving such clauses, as so redesignated, 2 
                        ems to the left; and
                    (C) by adding at the end the following:
                    ``(C) Compliance plans.--
                            ``(i) In general.--In the case of a covered 
                        transaction with respect to which an agreement 
                        is entered into under paragraph (3)(A), the 
                        Committee or lead agency, as the case may be, 
                        shall formulate, adhere to, and keep updated a 
                        plan for monitoring compliance with the 
                        agreement.
                            ``(ii) Elements.--Each plan required by 
                        clause (i) with respect to an agreement entered 
                        into under paragraph (3)(A) shall include an 
                        explanation of--
                                    ``(I) which member of the Committee 
                                will have primary responsibility for 
                                monitoring compliance with the 
                                agreement;
                                    ``(II) how compliance with the 
                                agreement will be monitored;
                                    ``(III) how frequently compliance 
                                reviews will be conducted;
                                    ``(IV) whether an independent 
                                entity will be utilized under 
                                subparagraph (E) to conduct compliance 
                                reviews; and
                                    ``(V) what actions will be taken if 
                                the parties fail to cooperate regarding 
                                monitoring compliance with the 
                                agreement.
                    ``(D) Effect of lack of compliance.--If, at any 
                time after a mitigation agreement or condition is 
                entered into or imposed under paragraph (3)(A), the 
                Committee or lead agency, as the case may be, 
                determines that a party or parties to the agreement or 
                condition are not in compliance with the terms of the 
                agreement or condition, the Committee or lead agency 
                may, in addition to the authority of the Committee to 
                impose penalties pursuant to subsection (h)(3) and to 
                unilaterally initiate a review of any covered 
                transaction under subsection (b)(1)(D)(iii)--
                            ``(i) negotiate a plan of action for the 
                        party or parties to remediate the lack of 
                        compliance, with failure to abide by the plan 
                        or otherwise remediate the lack of compliance 
                        serving as the basis for the Committee to find 
                        a material breach of the agreement or 
                        condition;
                            ``(ii) require that the party or parties 
                        submit a written notice under clause (i) of 
                        subsection (b)(1)(C) or a declaration under 
                        clause (v) of that subsection with respect to a 
                        covered transaction initiated after the date of 
                        the determination of noncompliance and before 
                        the date that is 5 years after the date of the 
                        determination to the Committee to initiate a 
                        review of the transaction under subsection (b); 
                        or
                            ``(iii) seek injunctive relief.
                    ``(E) Use of independent entities to monitor 
                compliance.--If the parties to an agreement entered 
                into under paragraph (3)(A) enter into a contract with 
                an independent entity from outside the United States 
                Government for the purpose of monitoring compliance 
                with the agreement, the Committee shall take such 
                action as is necessary to prevent a conflict of 
                interest from arising by ensuring that the independent 
                entity owes no fiduciary duty to the parties.
                    ``(F) Successors and assigns.--Any agreement or 
                condition entered into or imposed under paragraph 
                (3)(A) shall be considered binding on all successors 
                and assigns unless and until the agreement or condition 
                terminates on its own terms or is otherwise terminated 
                by the Committee in its sole discretion.
                    ``(G) Additional compliance measures.--Subject to 
                subparagraphs (A) through (F), the Committee shall 
                develop and agree upon methods for evaluating 
                compliance with any agreement entered into or condition 
                imposed with respect to a covered transaction that will 
                allow the Committee to adequately ensure compliance 
                without unnecessarily diverting Committee resources 
                from assessing any new covered transaction for which a 
                written notice under clause (i) of subsection (b)(1)(C) 
                or declaration under clause (v) of that subsection has 
                been filed, and if necessary, reaching a mitigation 
                agreement with or imposing a condition on a party to 
                such covered transaction or any covered transaction for 
                which a review has been reopened for any reason.''.

SEC. 18. MODIFICATION OF ANNUAL REPORT AND OTHER REPORTING 
              REQUIREMENTS.

    (a) Modification of Annual Report.--Section 721(m) of the Defense 
Production Act of 1950 (50 U.S.C. 4565(m)) is amended--
            (1) in paragraph (2)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) A list of all notices filed and all reviews 
                or investigations of covered transactions completed 
                during the period, with--
                            ``(i) a description of the outcome of each 
                        review or investigation, including whether an 
                        agreement was entered into or condition was 
                        imposed under subsection (l)(3)(A) with respect 
                        to the transaction being reviewed or 
                        investigated, and whether the President took 
                        any action under this section with respect to 
                        that transaction;
                            ``(ii) basic information on each party to 
                        each such transaction;
                            ``(iii) the nature of the business 
                        activities or products of the United States 
                        business with which the transaction was entered 
                        into or intended to be entered into; and
                            ``(iv) information about any withdrawal 
                        from the process.''; and
                    (B) by adding at the end the following:
                    ``(G) Statistics on compliance plans conducted and 
                actions taken by the Committee under subsection (l)(6), 
                including subparagraph (D) of that subsection, during 
                that period, a general assessment of the compliance of 
                parties with agreements entered into and conditions 
                imposed under subsection (l)(3)(A) that are in effect 
                during that period, including a description of any 
                actions taken by the Committee to impose penalties or 
                initiate a unilateral review pursuant to subsection 
                (b)(1)(D)(iii), and any recommendations for improving 
                the enforcement of such agreements and conditions.
                    ``(H) Cumulative and, as appropriate, trend 
                information on the number of declarations filed under 
                subsection (b)(1)(C)(v), the actions taken by the 
                Committee in response to those declarations, the 
                business sectors involved in those declarations, and 
                the countries involved in those declarations.
                    ``(I) A description of--
                            ``(i) the methods used by the Committee to 
                        monitor non-notified and non-declared 
                        transactions under subsection (b)(1)(H);
                            ``(ii) potential methods to improve such 
                        monitoring and the resources required to do so; 
                        and
                            ``(iii) the number of transactions 
                        identified through the mechanism established 
                        under that subsection during the reporting 
                        period and the number of such transactions 
                        flagged for further review.'';
            (2) in paragraph (3)--
                    (A) by striking ``critical technologies'' and all 
                that follows through ``In order to assist'' and 
                inserting ``critical technologies.--In order to 
                assist'';
                    (B) by striking subparagraph (B); and
                    (C) by redesignating clauses (i) and (ii) as 
                subparagraphs (A) and (B), respectively, and by moving 
                such subparagraphs, as so redesignated, 2 ems to the 
                left; and
            (3) by adding at the end the following:
            ``(4) Form of report.--
                    ``(A) In general.--All appropriate portions of the 
                annual report under paragraph (1) may be classified. An 
                unclassified version of the report, as appropriate, 
                consistent with safeguarding national security and 
                privacy, shall be made available to the public.
                    ``(B) Inclusions in unclassified version.--The 
                unclassified version of the report required under 
                paragraph (1) shall include, with respect to covered 
                transactions for the reporting period--
                            ``(i) the number of notices submitted under 
                        subsection (b)(1)(C)(i);
                            ``(ii) the number of declarations submitted 
                        under subsection (b)(1)(C)(v) and the number of 
                        such declarations that were required under 
                        subclause (IV) of that subsection;
                            ``(iii) the number of declarations 
                        submitted under subsection (b)(1)(C)(v) for 
                        which the Committee required resubmission as 
                        notices under subsection (b)(1)(C)(i);
                            ``(iv) the average number of days that 
                        elapsed between submission of a declaration 
                        under subsection (b)(1)(C)(v) and the 
                        acceptance of the declaration by the Committee;
                            ``(v) information on the time it took the 
                        Committee to provide comments on, or to accept, 
                        notices submitted under subsection 
                        (b)(1)(C)(i), including--
                                    ``(I) the average number of 
                                business days that elapsed between the 
                                date of submission of a draft notice 
                                and the date on which the Committee 
                                provided written comments on the draft 
                                notice;
                                    ``(II) the average number of 
                                business days that elapsed between the 
                                date of submission of a final notice 
                                and the date on which the Committee 
                                accepted or provided written comments 
                                on the final notice; and
                                    ``(III) if the average number of 
                                business days for a response by the 
                                Committee reported under subclause (I) 
                                or (II) exceeded 10 business days--
                                            ``(aa) an explanation of 
                                        the causes of such delays, 
                                        including whether such delays 
                                        are caused by resource 
                                        shortages, unusual fluctuations 
                                        in the volume of notices, 
                                        transaction characteristics, or 
                                        other factors; and
                                            ``(bb) an explanation of 
                                        the steps that the Committee 
                                        anticipates taking to mitigate 
                                        the causes of such delays and 
                                        otherwise to improve the 
                                        ability of the Committee to 
                                        provide comments on, or to 
                                        accept, notices within 10 
                                        business days;
                            ``(vi) the number of reviews or 
                        investigations conducted under subsection (b);
                            ``(vii) the number of investigations that 
                        were subject to an extension under subsection 
                        (b)(2)(C)(ii);
                            ``(viii) information on the duration of 
                        those reviews and investigations, including the 
                        average number of days required to complete 
                        those reviews and investigations;
                            ``(ix) the number of notices submitted 
                        under subsection (b)(1)(C)(i) and declarations 
                        submitted under subsection (b)(1)(C)(v) that 
                        were rejected by the Committee;
                            ``(x) the number of such notices and 
                        declarations that were withdrawn by a party to 
                        the covered transaction;
                            ``(xi) the number of such withdrawals that 
                        were followed by the submission of a subsequent 
                        such notice or declaration relating to a 
                        substantially similar covered transaction; and
                            ``(xii) such other specific, cumulative, or 
                        trend information that the Committee determines 
                        is advisable to provide for an assessment of 
                        the time required for reviews and 
                        investigations of covered transactions under 
                        this section.''.
    (b) Report on Chinese Investment.--
            (1) In general.--Not later than 2 years after the date of 
        the enactment of this Act, and every 2 years thereafter through 
        2026, the Secretary of Commerce shall submit to Congress and 
        the Committee on Foreign Investment in the United States a 
        report on foreign direct investment transactions made by 
        entities of the People's Republic of China in the United 
        States.
            (2) Elements.--Each report required by paragraph (1) shall 
        include the following:
                    (A) Total foreign direct investment from the 
                People's Republic of China in the United States, 
                including total foreign direct investment disaggregated 
                by ultimate beneficial owner.
                    (B) A breakdown of investments from the People's 
                Republic of China in the United States by value using 
                the following categories:
                            (i) Less than $50,000,000.
                            (ii) Greater than or equal to $50,000,000 
                        and less than $100,000,000.
                            (iii) Greater than or equal to $100,000,000 
                        and less than $1,000,000,000.
                            (iv) Greater than or equal to 
                        $1,000,000,000 and less than $2,000,000,000.
                            (v) Greater than or equal to $2,000,000,000 
                        and less than $5,000,000,000.
                            (vi) Greater than or equal to 
                        $5,000,000,000.
                    (C) A breakdown of investments from the People's 
                Republic of China in the United States by 2-digit North 
                American Industry Classification System code.
                    (D) A breakdown of investments from the People's 
                Republic of China in the United States by investment 
                type, using the following categories:
                            (i) Businesses established.
                            (ii) Businesses acquired.
                    (E) A breakdown of investments from the People's 
                Republic of China in the United States by government 
                and non-government investments, including volume, 
                sector, and type of investment within each category.
                    (F) A list of companies incorporated in the United 
                States purchased through government investment by the 
                People's Republic of China.
                    (G) The number of United States affiliates of 
                entities under the jurisdiction of the People's 
                Republic of China, the total employees at those 
                affiliates, and the valuation for any publicly traded 
                United States affiliate of such an entity.
                    (H) An analysis of patterns in the investments 
                described in subparagraphs (A) through (F), including 
                in volume, type, and sector, and the extent to which 
                those patterns of investments align with the objectives 
                outlined by the Government of the People's Republic of 
                China in its Made in China 2025 plan, including a 
                comparative analysis of investments from the People's 
                Republic of China in the United States and all foreign 
                direct investment in the United States.
                    (I) An identification of any limitations on the 
                ability of the Secretary of Commerce to collect 
                comprehensive information that is reasonably and 
                lawfully available about foreign investment in the 
                United States from the People's Republic of China on a 
                timeline necessary to complete reports every 2 years as 
                required by paragraph (1), including--
                            (i) an identification of any discrepancies 
                        between government and private sector estimates 
                        of investments from the People's Republic of 
                        China in the United States;
                            (ii) a description of the different 
                        methodologies or data collection methods, 
                        including by private sector entities, used to 
                        measure foreign investment that may result in 
                        different estimates; and
                            (iii) recommendations for enhancing the 
                        ability of the Secretary of Commerce to improve 
                        data collection of information about foreign 
                        investment in the United States from the 
                        People's Republic of China.
            (3) Extension of deadline.--If, as a result of a limitation 
        identified under paragraph (2)(I), the Secretary of Commerce 
        determines that the Secretary will be unable to submit a report 
        at the time required by paragraph (1), the Secretary may 
        request additional time to complete the report.
    (c) Report on Certain Investments by State-owned or State-
controlled Entities.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, an appropriate member or members of 
        the Committee on Foreign Investment in the United States shall, 
        in coordination with the chairperson of the Committee, submit 
        to Congress a report assessing--
                    (A) national security threats related to 
                investments in the United States by state-owned or 
                state-controlled entities in the manufacture or 
                assembly of rolling stock or other assets for use in 
                freight rail, public transportation, or intercity 
                passenger rail systems, including the construction of 
                new facilities;
                    (B) how the number and types of such investments 
                could affect any such threats; and
                    (C) the authority and ability of the Committee to 
                respond to such threats.
            (2) Consultation.--The member or members of the Committee 
        on Foreign Investment in the United States preparing the report 
        required by paragraph (1) shall consult with the Secretary of 
        Transportation and the head of any agency that is not 
        represented on the Committee that has significant technical 
        expertise related to the assessments required by paragraph (1).

SEC. 19. CERTIFICATION OF NOTICES AND INFORMATION.

    Section 721(n) of the Defense Production Act of 1950 (50 U.S.C. 
4565(n)) is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively, and by moving such 
        subparagraphs, as so redesignated, 2 ems to the right;
            (2) by striking ``Each notice'' and inserting the 
        following:
            ``(1) In general.--Each notice'';
            (3) by striking ``paragraph (3)(B)'' and inserting 
        ``paragraph (6)(B)'';
            (4) by striking ``paragraph (1)(A)'' and inserting 
        ``paragraph (3)(A)'';
            (5) by adding at the end the following:
            ``(2) Effect of failure to submit.--The Committee may not 
        complete a review under this section of a covered transaction 
        and may recommend to the President that the President suspend 
        or prohibit the transaction or require divestment under 
        subsection (d) if the Committee determines that a party to the 
        transaction has--
                    ``(A) failed to submit a statement required by 
                paragraph (1); or
                    ``(B) included false or misleading information in a 
                notice or information described in paragraph (1) or 
                omitted material information from such notice or 
                information.
            ``(3) Applicability of law on fraud and false statements.--
        The Committee shall prescribe regulations expressly providing 
        for the application of section 1001 of title 18, United States 
        Code, to all information provided to the Committee under this 
        section by any party to a covered transaction.''.

SEC. 20. IMPLEMENTATION PLANS.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the chairperson of the Committee on Foreign 
Investment in the United States and the Secretary of Commerce shall, in 
consultation with the appropriate members of the Committee--
            (1) develop plans to implement this Act; and
            (2) submit to the appropriate congressional committees a 
        report on the plans developed under paragraph (1), which shall 
        include a description of--
                    (A) the timeline and process to implement the 
                provisions of, and amendments made by, this Act;
                    (B) any additional staff necessary to implement the 
                plans; and
                    (C) the resources required to effectively implement 
                the plans.
    (b) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Banking, Housing, and Urban Affairs 
        and the Committee on Appropriations of the Senate; and
            (2) the Committee on Financial Services and the Committee 
        on Appropriations of the House of Representatives.

SEC. 21. ASSESSMENT OF NEED FOR ADDITIONAL RESOURCES FOR COMMITTEE.

    The President shall--
            (1) determine whether and to what extent the expansion of 
        the responsibilities of the Committee on Foreign Investment in 
        the United States pursuant to the amendments made by this Act 
        necessitates additional resources for the Committee and the 
        departments and agencies represented on the Committee to 
        perform their functions under section 721 of the Defense 
        Production Act of 1950, as amended by this Act; and
            (2) if the President determines that additional resources 
        are necessary, include in the budget of the President for 
        fiscal year 2019 and each fiscal year thereafter submitted to 
        Congress under section 1105(a) of title 31, United States Code, 
        a request for such additional resources.

SEC. 22. FUNDING.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. 4565) 
is amended by adding at the end the following:
    ``(o) Funding.--
            ``(1) Establishment of fund.--There is established in the 
        Treasury of the United States a fund, to be known as the 
        `Committee on Foreign Investment in the United States Fund' (in 
        this subsection referred to as the `Fund'), to be administered 
        by the chairperson.
            ``(2) Appropriation of funds for the committee.--There are 
        authorized to be appropriated to the Fund such sums as may be 
        necessary to perform the functions of the Committee.
            ``(3) Filing fees.--
                    ``(A) In general.--The Committee may assess and 
                collect a fee in an amount determined by the Committee 
                in regulations, to the extent provided in advance in 
                appropriations Acts, without regard to section 9701 of 
                title 31, United States Code, and subject to 
                subparagraph (B), with respect to each covered 
                transaction for which a written notice is submitted to 
                the Committee under subsection (b)(1)(C)(i). The total 
                amount of fees collected under this paragraph may not 
                exceed the costs of administering this section.
                    ``(B) Determination of amount of fee.--
                            ``(i) In general.--In determining the 
                        amount of the fee to be assessed under 
                        subparagraph (A) with respect to a covered 
                        transaction, the Committee shall base the 
                        amount of the fee on the value of the 
                        transaction, taking into consideration--
                                    ``(I) the effect of the fee on 
                                small business concerns (as defined in 
                                section 3 of the Small Business Act (15 
                                U.S.C. 632));
                                    ``(II) the expenses of the 
                                Committee associated with conducting 
                                activities under this section;
                                    ``(III) the effect of the fee on 
                                foreign investment; and
                                    ``(IV) such other matters as the 
                                Committee considers appropriate.
                            ``(ii) Prioritization fee.--The Committee 
                        may establish a fee or fee scale to prioritize 
                        the timing of the response of the Committee to 
                        a draft or final written notice during the 
                        period before the Committee accepts the final 
                        written notice under subsection (b)(1)(C)(i), 
                        in the event that the Committee is unable to 
                        respond during the time required by subclause 
                        (II) of that subsection because of an unusually 
                        large influx of notices, or for other reasons.
                            ``(iii) Updates.--The Committee shall 
                        periodically reconsider and adjust the amount 
                        of the fee to be assessed under subparagraph 
                        (A) with respect to a covered transaction to 
                        ensure that the amount of the fee does not 
                        exceed the costs of administering this section 
                        and otherwise remains appropriate.
                    ``(C) Deposit and availability of fees.--
                Notwithstanding section 3302 of title 31, United States 
                Code, fees collected under subparagraph (A) shall--
                            ``(i) be deposited into the Fund solely for 
                        use in carrying out activities under this 
                        section;
                            ``(ii) to the extent and in the amounts 
                        provided in advance in appropriations Acts, be 
                        available to the chairperson;
                            ``(iii) remain available until expended; 
                        and
                            ``(iv) be in addition to any appropriations 
                        made available to the members of the Committee.
            ``(4) Transfer of funds.--To the extent provided in advance 
        in appropriations Acts, the chairperson may transfer any 
        amounts in the Fund to any other department or agency 
        represented on the Committee for the purpose of addressing 
        emerging needs in carrying out activities under this section. 
        Amounts so transferred shall be in addition to any other 
        amounts available to that department or agency for that 
        purpose.''.

SEC. 23. CENTRALIZATION OF CERTAIN COMMITTEE FUNCTIONS.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. 4565), 
as amended by section 22, is further amended by adding at the end the 
following:
    ``(p) Centralization of Certain Committee Functions.--
            ``(1) In general.--The chairperson, in consultation with 
        the Committee, may centralize certain functions of the 
        Committee within the Department of the Treasury for the purpose 
        of enhancing interagency coordination and collaboration in 
        carrying out the functions of the Committee under this section.
            ``(2) Functions.--Functions that may be centralized under 
        paragraph (1) include monitoring non-notified and non-declared 
        transactions pursuant to subsection (b)(1)(H), and other 
        functions as determined by the chairperson and the Committee.
            ``(3) Rule of construction.--Nothing in this section shall 
        be construed as limiting the authority of any department or 
        agency represented on the Committee to represent its own 
        interests before the Committee.''.

SEC. 24. CONFORMING AMENDMENTS.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. 4565), 
as amended by this Act, is further amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)(D)(iii)(I), by striking 
                ``subsection (l)(1)(A)'' and inserting ``subsection 
                (l)(3)(A)''; and
                    (B) in paragraph (2)(B)(i)(I), by striking ``that 
                threat'' and inserting ``the risk'';
            (2) in subsection (d)(4)(A), by striking ``the foreign 
        interest exercising control'' and inserting ``a foreign person 
        that would acquire an interest in a United States business or 
        its assets as a result of the covered transaction''; and
            (3) in subsection (j), by striking ``merger, acquisition, 
        or takeover'' and inserting ``transaction''.

SEC. 25. REQUIREMENTS TO IDENTIFY AND CONTROL THE EXPORT OF EMERGING 
              AND FOUNDATIONAL TECHNOLOGIES.

    (a) Identification of Technologies.--
            (1) In general.--The President shall establish and, in 
        coordination with the Secretary of Commerce, the Secretary of 
        Defense, the Secretary of Energy, the Secretary of State, and 
        the heads of other Federal agencies as appropriate, lead, a 
        regular, ongoing interagency process to identify emerging and 
        foundational technologies that--
                    (A) are essential to the national security of the 
                United States; and
                    (B) are not critical technologies described in 
                clauses (i) through (v) of section 721(a)(8)(B) of the 
                Defense Production Act of 1950, as amended by section 
                3.
            (2) Process.--The interagency process established under 
        subsection (a) shall--
                    (A) be informed by multiple sources of information, 
                including--
                            (i) publicly available information;
                            (ii) classified information, including 
                        relevant information provided by the Director 
                        of National Intelligence;
                            (iii) information relating to reviews and 
                        investigations of transactions by the Committee 
                        on Foreign Investment in the United States 
                        under section 721 of the Defense Production Act 
                        of 1950 (50 U.S.C. 4565); and
                            (iv) information provided by the advisory 
                        committees established by the Secretary of 
                        Commerce to advise the Under Secretary of 
                        Commerce for Industry and Security on controls 
                        under the Export Administration Regulations, 
                        including the Emerging Technology and Research 
                        Advisory Committee;
                    (B) take into account--
                            (i) the development of emerging and 
                        foundational technologies in foreign countries;
                            (ii) the effect export controls imposed 
                        pursuant to this section may have on the 
                        development of such technologies in the United 
                        States; and
                            (iii) the effectiveness of export controls 
                        imposed pursuant to this section on limiting 
                        the proliferation of emerging and foundational 
                        technologies to foreign countries; and
                    (C) include a notice and comment period.
    (b) Commerce Controls.--
            (1) In general.--The Secretary of Commerce shall establish 
        appropriate controls under the Export Administration 
        Regulations on the export, reexport, or in-country transfer of 
        technology identified pursuant to subsection (a), including by 
        prescribing additional regulations.
            (2) Levels of control.--
                    (A) In general.--The Secretary of Commerce may, in 
                coordination with the Secretary of Defense, the 
                Secretary of State, and the heads of other Federal 
                agencies, as appropriate, specify the level of control 
                to apply under paragraph (1) with respect to the export 
                of technology described in that paragraph, including a 
                requirement for a license or other authorization for 
                the export, reexport, or in-country transfer of that 
                technology.
                    (B) Considerations.--In determining under 
                subparagraph (A) the level of control appropriate for 
                technology described in paragraph (1), the Secretary of 
                Commerce shall take into account--
                            (i) lists of countries to which exports 
                        from the United States are restricted; and
                            (ii) the potential end uses and end users 
                        of the technology.
                    (C) Minimum requirements.--At a minimum, except as 
                provided by paragraph (4), the Secretary of Commerce 
                shall require a license for the export, reexport, or 
                in-country transfer of technology described in 
                paragraph (1) to or in a country subject to an embargo, 
                including an arms embargo, imposed by the United 
                States.
            (3) Review of license applications.--
                    (A) Procedures.--The procedures set forth in 
                Executive Order 12981 (50 U.S.C. 4603 note; relating to 
                administration of export controls) or a successor order 
                shall apply to the review of an application for a 
                license or other authorization for the export, 
                reexport, or in-country transfer of technology 
                described in paragraph (1).
                    (B) Consideration of information relating to 
                national security.--In reviewing an application for a 
                license or other authorization for the export, 
                reexport, or in-country transfer of technology 
                described in paragraph (1), the Secretary of Commerce 
                shall take into account information provided by the 
                Director of National Intelligence regarding any threat 
                to the national security of the United States posed by 
                the proposed export, reexport, or transfer. The 
                Director of National Intelligence shall provide such 
                information on the request of the Secretary of 
                Commerce.
                    (C) Disclosures relating to collaborative 
                arrangements.--In the case of an application for a 
                license or other authorization for the export, 
                reexport, or in-country transfer of technology 
                described in paragraph (1) submitted by or on behalf of 
                a joint venture, joint development agreement, or 
                similar collaborative arrangement, the Secretary of 
                Commerce may require the applicant to identify, in 
                addition to any foreign person participating in the 
                arrangement, any foreign person with significant 
                ownership interest in a foreign person participating in 
                the arrangement.
            (4) Exceptions.--
                    (A) Mandatory exceptions.--The Secretary of 
                Commerce may not control under this subsection the 
                export of any technology--
                            (i) described in section 203(b) of the 
                        International Emergency Economic Powers Act (50 
                        U.S.C. 1702(b)); or
                            (ii) if the regulation of the export of 
                        that technology is prohibited under any other 
                        provision of law.
                    (B) Regulatory exceptions.--In prescribing 
                regulations under paragraph (1), the Secretary of 
                Commerce may include regulatory exceptions to the 
                requirements of that paragraph.
                    (C) Additional exceptions.--The Secretary of 
                Commerce shall not be required to impose under 
                paragraph (1) a requirement for a license or other 
                authorization with respect to the export, reexport, or 
                in-country transfer of technology described in 
                paragraph (1) pursuant to any of the following 
                transactions:
                            (i) The sale or license of a finished item 
                        and the provision of associated technology if 
                        the United States person that is a party to the 
                        transaction generally makes the finished item 
                        and associated technology available to its 
                        customers, distributors, or resellers.
                            (ii) The sale or license to a customer of a 
                        product and the provision of integration 
                        services or similar services if the United 
                        States person that is a party to the 
                        transaction generally makes such services 
                        available to its customers.
                            (iii) The transfer of equipment and the 
                        provision of associated technology to operate 
                        the equipment if the transfer could not result 
                        in the foreign person using the equipment to 
                        produce critical technologies (as defined in 
                        section 721(a) of the Defense Production Act of 
                        1950, as amended by section 3).
                            (iv) The procurement by the United States 
                        person that is a party to the transaction of 
                        goods or services, including manufacturing 
                        services, from a foreign person that is a party 
                        to the transaction, if the foreign person has 
                        no rights to exploit any technology contributed 
                        by the United States person other than to 
                        supply the procured goods or services.
                            (v) Any contribution and associated support 
                        by a United States person that is a party to 
                        the transaction to an industry organization 
                        related to a standard or specification, whether 
                        in development or declared, including any 
                        license of or commitment to license 
                        intellectual property in compliance with the 
                        rules of any standards organization (as defined 
                        by the Secretary by regulation).
    (c) Multilateral Controls.--
            (1) In general.--The Secretary of State, in consultation 
        with the Secretary of Commerce and the Secretary of Defense, 
        and the heads of other Federal agencies, as appropriate, may 
        propose that any technology identified pursuant to subsection 
        (a) be added to the list of technologies controlled by the 
        relevant multilateral export control regimes.
            (2) Items on commerce control list or united states 
        munitions list.--
                    (A) In general.--If the Secretary of State proposes 
                to a multilateral export control regime under paragraph 
                (1) to add a technology identified pursuant to 
                subsection (a) to the control list of that regime and 
                that regime does not add that technology to the control 
                list during the 3-year period beginning on the date of 
                the proposal, the applicable agency head may determine 
                whether national security concerns warrant the 
                continuation of unilateral export controls with respect 
                to that technology.
                    (B) Applicable agency head defined.--In this 
                paragraph, the term ``applicable agency head'' means--
                            (i) in the case of technology listed on the 
                        Commerce Control List set forth in Supplement 
                        No. 1 to part 774 of the Export Administration 
                        Regulations, the Secretary of Commerce, in 
                        consultation with the Secretary of Defense and 
                        the Secretary of State; and
                            (ii) in the case of technology listed on 
                        the United States Munitions List set forth in 
                        part 121 of title 22, Code of Federal 
                        Regulations, the Secretary of State, in 
                        consultation with the Secretary of Defense and 
                        the heads of other Federal agencies, as 
                        appropriate.
    (d) Report to Committee on Foreign Investment in the United 
States.--Not less frequently than every 180 days, the Secretary of 
Commerce, in coordination with the Secretary of Defense, the Secretary 
of State, and the heads of other Federal agencies, as appropriate, 
shall submit to the Committee on Foreign Investment in the United 
States a report on the results of actions taken pursuant to this 
section.
    (e) Report to Congress.--Not less frequently than every 180 days, 
the Secretary of Commerce, in coordination with the Secretary of 
Defense, the Secretary of State, and the heads of other Federal 
agencies, as appropriate, shall submit a report on the results of 
actions taken pursuant to this section, including actions taken 
pursuant to subsections (a), (b), and (c), to--
            (1) the Committee on Banking, Housing, and Urban Affairs, 
        the Committee on Foreign Relations, the Committee on Armed 
        Services, and the Select Committee on Intelligence of the 
        Senate; and
            (2) the Committee on Financial Services, the Committee on 
        Foreign Affairs, the Committee on Armed Services, and the 
        Permanent Select Committee on Intelligence of the House of 
        Representatives.
    (f) Modifications to Emerging Technology and Research Advisory 
Committee.--
            (1) In general.--The Secretary of Commerce shall revise the 
        objectives of the Emerging Technology and Research Advisory 
        Committee, established by the Secretary under the Export 
        Administration Regulations, to include advising the interagency 
        process established under subsection (a) with respect to 
        emerging and foundational technologies.
            (2) Duties.--The Secretary--
                    (A) shall revise the duties of the Emerging 
                Technology and Research Advisory Committee to include 
                identifying emerging and foundational technologies that 
                may be developed over a period of 5 years or 10 years; 
                and
                    (B) may revise the duties of the Advisory Committee 
                to include identifying trends in--
                            (i) the ownership by foreign persons and 
                        foreign governments of such technologies;
                            (ii) the types of transactions related to 
                        such technologies engaged in by foreign persons 
                        and foreign governments;
                            (iii) the blending of private and 
                        government investment in such technologies; and
                            (iv) efforts to obfuscate ownership of such 
                        technologies or to otherwise circumvent the 
                        controls established under this section.
            (3) Meetings.--
                    (A) Frequency.--The Emerging Technology and 
                Research Advisory Committee should meet not less 
                frequently than every 120 days.
                    (B) Attendance.--A representative from each agency 
                participating in the interagency process established 
                under subsection (a) should be in attendance at each 
                meeting of the Emerging Technology and Research 
                Advisory Committee.
            (4) Classified information.--Not fewer than half of the 
        members of the Emerging Technology and Research Advisory 
        Committee should hold sufficient security clearances such that 
        classified information, including classified information 
        described in clauses (ii) and (iii) of subsection (a)(2)(A), 
        from the interagency process established under subsection (a) 
        can be shared with those members to inform the advice provided 
        by the Advisory Committee.
            (5) Applicability of federal advisory committee act.--
        Subsections (a)(1), (a)(3), and (b) of section 10 and sections 
        11, 13, and 14 of the Federal Advisory Committee Act (5 U.S.C. 
        App.) shall not apply to the Emerging Technology and Research 
        Advisory Committee.
            (6) Report.--The Emerging Technology and Research Advisory 
        Committee shall include the findings of the Advisory Committee 
        under this subsection in the annual report to Congress required 
        by section 14 of the Export Administration Act of 1979 (50 
        U.S.C. 4616) (as continued in effect pursuant to the 
        International Emergency Economic Powers Act (50 U.S.C. 1701 et 
        seq.)).
    (g) Rule of Construction.--Nothing in this section shall be 
construed to alter or limit--
            (1) the authority of the President or the Secretary of 
        State to designate items as defense articles and defense 
        services for the purposes of the Arms Export Control Act (22 
        U.S.C. 2751 et seq.) or to otherwise regulate such items; or
            (2) the authority of the President under the Atomic Energy 
        Act of 1954 (42 U.S.C. 2011 et seq.), the Nuclear Non-
        Proliferation Act of 1978 (22 U.S.C. 3201 et seq.), the Energy 
        Reorganization Act of 1974 (42 U.S.C. 5801 et seq.), or the 
        Export Administration Act of 1979 (50 U.S.C. 4601 et seq.) (as 
        continued in effect pursuant to the International Emergency 
        Economic Powers Act (50 U.S.C. 1701 et seq.)) or any other 
        provision of law relating to the control of exports.
    (h) Definitions.--In this section:
            (1) Export administration regulations.--The term ``Export 
        Administration Regulations'' means subchapter C of chapter VII 
        of title 15, Code of Federal Regulations.
            (2) In-country transfer.--The term ``in-country transfer'' 
        has the meaning given to the term in the Export Administration 
        Regulations.
            (3) Reexport.--The term ``reexport'' has the meaning given 
        to the term in the Export Administration Regulations.
            (4) United states person.--The term ``United States 
        person'' means any person subject to the jurisdiction of the 
        United States.

SEC. 26. EXPORT CONTROL ENFORCEMENT AUTHORITY.

    (a) Authorities.--In order to enforce the provisions of the Export 
Administration Regulations under subchapter C of chapter VII of title 
15, Code of Federal Regulations, issued under the authority of the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) 
(pursuant to which the President has continued in effect authorities 
granted under the Export Administration Act of 1979 (50 U.S.C. 4601 et 
seq.)), the President shall delegate to the Secretary of Commerce, in 
addition to existing authorities, the authority to authorize any law 
enforcement officer of the Department of Commerce to conduct 
investigations (including undercover investigations) in the United 
States and in other countries when permitted under such countries' laws 
using all applicable laws of the United States.
    (b) Best Practice Guidelines.--The Secretary of Commerce, in 
consultation with the heads of appropriate Federal agencies, may 
publish and update best practices guidelines to assist persons in 
developing and implementing, on a voluntary basis, effective export 
control programs in compliance with the Export Administration 
Regulations.
    (c) Confidentiality of Information.--
            (1) Exemptions from disclosure.--
                    (A) In general.--Information obtained under the 
                Export Administration Act of 1979 (50 U.S.C. 2601 et 
                seq.) (as continued in effect pursuant to the 
                International Emergency Economic Powers Act (50 U.S.C. 
                1701 et seq.)) may be withheld from disclosure only to 
                the extent permitted by statute, except that 
                information described in subparagraph (B) shall be 
                withheld from public disclosure and shall not be 
                subject to disclosure under section 552(b)(3) of title 
                5, United States Code, unless the release of such 
                information is determined by the Secretary to be in the 
                national interest.
                    (B) Information described.--Information described 
                in this subparagraph is information submitted or 
                obtained in connection with an application for a 
                license or other authorization to export, reexport, or 
                transfer items or engage in other activities, a 
                recordkeeping or reporting requirement, enforcement 
                activity, or other operations under the Export 
                Administration Act of 1979, including--
                            (i) the license application, license, or 
                        other authorization itself;
                            (ii) classification or advisory opinion 
                        requests, and any response to such a request;
                            (iii) license determinations and 
                        information pertaining to such determinations;
                            (iv) information or evidence obtained in 
                        the course of any investigation; and
                            (v) information obtained or furnished in 
                        connection with any international agreement, 
                        treaty, or other obligation.
            (2) Information to congress and gao.--
                    (A) In general.--Nothing in this section shall be 
                construed as authorizing the withholding of information 
                from Congress or the Comptroller General of the United 
                States.
                    (B) Availability to congress.--
                            (i) In general.--Information obtained at 
                        any time under any provision of the Export 
                        Administration Act of 1979 or the Export 
                        Administration Regulations, including reports 
                        or license applications required under any such 
                        provision, shall be made available to a 
                        committee or subcommittee of Congress of 
                        appropriate jurisdiction, upon the request of 
                        the chairman or ranking member of the committee 
                        or subcommittee.
                            (ii) Prohibition on further disclosure.--No 
                        committee or subcommittee referred to in clause 
                        (i), or member thereof, may disclose any 
                        information made available under clause (i) 
                        that is submitted on a confidential basis 
                        unless the full committee determines that the 
                        withholding of that information is contrary to 
                        the national interest.
                    (C) Availability to gao.--
                            (i) In general.--Information described in 
                        subparagraph (B)(i) shall be subject to the 
                        limitations contained in section 716 of title 
                        31, United States Code.
                            (ii) Prohibition on further disclosure.--An 
                        officer or employee of the Government 
                        Accountability Office may not disclose, except 
                        to Congress in accordance with this paragraph, 
                        any information described in subparagraph 
                        (B)(i) that is submitted on a confidential 
                        basis or from which any individual can be 
                        identified.
            (3) Information sharing.--
                    (A) Exchange of information.--The heads of 
                departments, agencies, and offices with enforcement 
                authorities under the Export Administration Act of 
                1979, consistent with protection of law enforcement and 
                its sources and methods, shall exchange any licensing 
                and enforcement information with one another that is 
                necessary to facilitate enforcement efforts under this 
                section, and shall consult on a regular basis with one 
                another and with the heads of other departments, 
                agencies, and offices that obtain information subject 
                to this paragraph, in order to facilitate the exchange 
                of such information.
                    (B) Provision of information by federal 
                officials.--Any Federal official who obtains 
                information that is relevant to the enforcement of the 
                Export Administration Act of 1979, including 
                information pertaining to any investigation, shall 
                furnish such information to each appropriate 
                department, agency, or office with enforcement 
                responsibilities under this section to the extent 
                consistent with the protection of intelligence, 
                counterintelligence, and law enforcement sources, 
                methods, and activities.
                    (C) Exceptions.--The provisions of this paragraph 
                shall not apply to information subject to the 
                restrictions set forth in section 9 of title 13, United 
                States Code. Return information, as defined in section 
                6103(b) of the Internal Revenue Code of 1986, may be 
                disclosed only as authorized by that section.
                    (D) Information sharing with federal agencies.--
                Licensing or enforcement information obtained under the 
                Export Administration Act of 1979 may be shared with 
                heads of departments, agencies, and offices that do not 
                have enforcement authorities under that Act on a case-
                by-case basis, at the discretion of the Secretary of 
                Commerce. Such information may be shared only when the 
                Secretary makes a determination that the sharing of the 
                information is in the national interest.

SEC. 27. PROHIBITION ON MODIFICATION OF CIVIL PENALTIES UNDER EXPORT 
              CONTROL AND SANCTIONS LAWS.

    (a) In General.--Notwithstanding any other provision of law, the 
Executive Office of the President may not modify any civil penalty, 
including a denial order, implemented by the Government of the United 
States with respect to a Chinese telecommunications company pursuant to 
a determination that the company has violated an export control or 
sanctions law of the United States until the date that is 30 days after 
the President certifies to the appropriate congressional committees 
that the company--
            (1) has not, for a period of one year, conducted activities 
        in violation of the laws of the United States; and
            (2) is fully cooperating with investigations into the 
        activities of the company conducted by the Government of the 
        United States, if any.
    (b) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Banking, Housing, and Urban Affairs 
        and the Committee on Foreign Relations of the Senate; and
            (2) the Committee on Financial Services and the Committee 
        on Foreign Affairs of the House of Representatives.

SEC. 28. UNDER SECRETARY OF COMMERCE FOR INDUSTRY AND SECURITY.

    (a) In General.--On and after the date of the enactment of this 
Act, any reference in the Export Administration Act of 1979 (50 U.S.C. 
4601 et seq.) or any other law or regulation to the Under Secretary of 
Commerce for Export Administration shall be deemed to be a reference to 
the Under Secretary of Commerce for Industry and Security.
    (b) Title 5.--Section 5314 of title 5, United States Code, is 
amended by striking ``Under Secretary of Commerce for Export 
Administration'' and inserting ``Under Secretary of Commerce for 
Industry and Security''.
    (c) Continuation in Office.--The individual serving as Under 
Secretary of Commerce for Export Administration on the day before the 
date of the enactment of this Act may serve as the Under Secretary of 
Commerce for Industry and Security on and after that date without the 
need for renomination or reappointment.

SEC. 29. LIMITATION ON CANCELLATION OF DESIGNATION OF SECRETARY OF THE 
              AIR FORCE AS DEPARTMENT OF DEFENSE EXECUTIVE AGENT FOR A 
              CERTAIN DEFENSE PRODUCTION ACT PROGRAM.

    (a) Limitation on Cancellation of Designation.--The Secretary of 
Defense may not implement the decision, issued on July 1, 2017, to 
cancel the designation, under Department of Defense Directive 4400.01E, 
entitled ``Defense Production Act Programs'' and dated October 12, 
2001, of the Secretary of the Air Force as the Department of Defense 
Executive Agent for the program carried out under title III of the 
Defense Production Act of 1950 (50 U.S.C. 4531 et seq.) until the date 
specified in subsection (c).
    (b) Designation.--The Secretary of the Air Force shall continue to 
serve as the sole and exclusive Department of Defense Executive Agent 
for the program described in subsection (a) until the date specified in 
subsection (c).
    (c) Date Specified.--The date specified in this subsection is the 
date of the enactment of a joint resolution or an Act approving the 
implementation of the decision described in subsection (a).

SEC. 30. REVIEW OF AND REPORT ON CERTAIN DEFENSE TECHNOLOGIES CRITICAL 
              TO THE UNITED STATES MAINTAINING SUPERIOR MILITARY 
              CAPABILITIES.

    (a) Review Required.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense and the Director of 
National Intelligence, in consultation with the Air Force Research 
Laboratory, the Defense Advanced Projects Research Agency, and such 
other appropriate research entities as the Secretary and the Director 
may identify, shall--
            (1) jointly carry out and complete a review of key national 
        security technology capability advantages, competitions, and 
        gaps between the United States and ``near peer'' nations;
            (2) develop a definition of ``near peer nation'' for 
        purposes of paragraph (1); and
            (3) submit to the appropriate congressional committees a 
        report on the findings of the Secretary and the Director with 
        respect to the review conducted under paragraph (1).
    (b) Elements.--The review conducted under paragraph (1) of 
subsection (a), and the report required by paragraph (3) of that 
subsection, shall identify, at a minimum, the following:
            (1) Key United States industries and research and 
        development activities expected to be critical to maintaining a 
        national security technology capability if, during the 5-year 
        period beginning on the date of the enactment of this Act, the 
        Secretary and the Director anticipate that--
                    (A) a United States industrial base shortfall will 
                exist; and
                    (B) United States industry will be unable to or 
                otherwise will not provide the needed capacity in a 
                timely manner without financial assistance from the 
                United States Government through existing statutory 
                authorities specifically intended for that purpose, 
                including assistance provided under title III of the 
                Defense Production Act of 1950 (50 U.S.C. 4531 et seq.) 
                and other appropriate authorities.
            (2) Key areas in which the United States currently enjoys a 
        technological advantage.
            (3) Key areas in which the United States no longer enjoys a 
        technological advantage.
            (4) Sectors of the defense industrial base in which the 
        United States lacks adequate productive capacity to meet 
        critical national defense needs.
            (5) Priority areas for which appropriate statutory 
        industrial base incentives should be applied as the most cost-
        effective, expedient, and practical alternative for meeting the 
        technology or defense industrial base needs identified under 
        this subsection, including--
                    (A) sustainment of critical production and supply 
                chain capabilities;
                    (B) commercialization of research and development 
                investments;
                    (C) scaling of emerging technologies; and
                    (D) other areas as determined by the Secretary and 
                the Director.
            (6) Priority funding recommendations with respect to key 
        areas that the Secretary, in consultation with the Director, 
        determines are--
                    (A) critical to the United States maintaining 
                superior military capabilities, especially with respect 
                to potential peer and near peer military or economic 
                competitors, during the 5-year period beginning on the 
                date of the enactment of this Act; and
                    (B) suitable for long-term investment from funds 
                made available under title III of the Defense 
                Production Act of 1950 and other appropriate statutory 
                authorities.
    (c) Form of Report.--The report required by subsection (a)(3) shall 
be submitted in unclassified form, but may include a classified annex.
    (d) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Banking, Housing and Urban Affairs, 
        the Committee on Armed Services, and the Select Committee on 
        Intelligence of the Senate; and
            (2) the Committee on Financial Services, the Committee on 
        Armed Services, and the Permanent Select Committee on 
        Intelligence of the House of Representatives.

SEC. 31. BRIEFING ON INFORMATION FROM TRANSACTIONS REVIEWED BY 
              COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED STATES 
              RELATING TO FOREIGN EFFORTS TO INFLUENCE DEMOCRATIC 
              INSTITUTIONS AND PROCESSES.

    Not later than 60 days after the date of the enactment of this Act, 
the Secretary of the Treasury (or a designee of the Secretary) shall 
provide a briefing to the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on Financial Services of the 
House of Representatives on--
            (1) transactions reviewed by the Committee on Foreign 
        Investment in the United States during the 5-year period 
        preceding the briefing that the Committee determined would have 
        allowed foreign persons to inappropriately influence democratic 
        institutions and processes within the United States and in 
        other countries; and
            (2) the disposition of such reviews, including any steps 
        taken by the Committee to address the risk of allowing foreign 
        persons to influence such institutions and processes.

SEC. 32. EFFECTIVE DATE.

    (a) Immediate Applicability of Certain Provisions.--The following 
shall take effect on the date of the enactment of this Act and apply 
with respect to any covered transaction the review or investigation of 
which is initiated under section 721 of the Defense Production Act of 
1950 on or after such date of enactment:
            (1) Sections 5, 7, 8, 9, 10, 13, 14, 15, 16, 17, 19, 20, 
        21, 22, 23, 24, 25, 26, 27, 28, and 29 and the amendments made 
        by those sections.
            (2) Section 12 and the amendments made by that section 
        (except for clause (iii) of section 721(b)(4)(A) of the Defense 
        Production Act of 1950, as added by section 12).
            (3) Paragraphs (1), (2), (3), (4), (5)(A)(i), (5)(B)(i), 
        (5)(B)(iv)(I), (5)(B)(v), (5)(C)(v), (6), (7), (8), (9), (10), 
        (11), (12), (13), (14), (15), (16), and (17) of subsection (a) 
        of section 721 of the Defense Production Act of 1950, as 
        amended by section 3.
            (4) Section 721(m)(4) of the Defense Production Act of 
        1950, as amended by section 18 (except for clauses (ii), (iii), 
        (iv), and (v) of subparagraph (B) of that section).
    (b) Delayed Applicability of Certain Provisions.--
            (1) In general.--Any provision of or amendment made by this 
        Act not specified in subsection (a) shall--
                    (A) take effect on the date that is 30 days after 
                publication in the Federal Register of a determination 
                by the chairperson of the Committee on Foreign 
                Investment in the United States that the regulations, 
                organizational structure, personnel, and other 
                resources necessary to administer the new provisions 
                are in place; and
                    (B) apply with respect to any covered transaction 
                the review or investigation of which is initiated under 
                section 721 of the Defense Production Act of 1950 on or 
                after the date described in subparagraph (A).
            (2) Nondelegation of determination.--The determination of 
        the chairperson of the Committee on Foreign Investment in the 
        United States under paragraph (1)(A) may not be delegated.
    (c) Authorization for Pilot Programs.--
            (1) In general.--Beginning on the date of the enactment of 
        this Act and ending on the date described in subsection 
        (b)(1)(A), the Committee on Foreign Investment in the United 
        States may, at its discretion, conduct one or more pilot 
        programs to implement any authority provided pursuant to any 
        provision of or amendment made by this Act not specified in 
        subsection (a).
            (2) Publication in federal register.--A pilot program may 
        not commence until the date that is 30 days after publication 
        in the Federal Register of a determination by the chairperson 
        of the Committee of the scope of and procedures for the pilot 
        program. That determination may not be delegated.

SEC. 33. SEVERABILITY.

    If any provision of this Act or an amendment made by this Act, or 
the application of such a provision or amendment to any person or 
circumstance, is held to be invalid, the application of that provision 
or amendment to other persons or circumstances and the remainder of the 
provisions of this Act and the amendments made by this Act, shall not 
be affected thereby.
            Amend the title so as to read: ``A bill to modernize and 
        strengthen the Committee on Foreign Investment in the United 
        States and the United States export control system to more 
        effectively guard against the risk to the national security of 
        the United States posed by certain types of foreign investment, 
        and for other purposes.''.
                                                       Calendar No. 426

115th CONGRESS

  2d Session

                                S. 2098

_______________________________________________________________________

                                 A BILL

To modernize and strengthen the Committee on Foreign Investment in the 
    United States to more effectively guard against the risk to the 
   national security of the United States posed by certain types of 
              foreign investment, and for other purposes.

_______________________________________________________________________

                              May 22, 2018

        Reported with an amendment and an amendment to the title
```