II 

115TH CONGRESS 

1ST 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, and 

Mr. LANKFORD) introduced the following bill; which was read twice and 

referred to the Committee on Banking, Housing, and Urban Affairs 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Foreign Investment Risk Review Modernization Act of 

6 2017’’. 


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1 (b) TABLE OF CONTENTS.—The table of contents for 

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Sense of Congress. 

Sec. 3. Definitions. 

Sec. 4. Inclusion of partnership and side agreements in notice. 

Sec. 5. Declarations relating to certain covered transactions. 

Sec. 6. Stipulations regarding transactions. 

Sec. 7. Authority for unilateral initiation of reviews. 

Sec. 8. Timing for reviews and investigations. 

Sec. 9. Monitoring of non-notified and non-declared transactions. 

Sec. 10. Submission of certifications to Congress. 

Sec. 11. Analysis by Director of National Intelligence. 

Sec. 12. Information sharing. 

Sec. 13. Action by the President. 

Sec. 14. Judicial review procedures. 

Sec. 15. Factors to be considered. 

Sec. 16. Actions by the Committee to address national security risks. 

Sec. 17. Modification of annual report. 

Sec. 18. Certification of notices and information. 

Sec. 19. Funding. 

Sec. 20. Centralization of certain Committee functions. 

Sec. 21. Unified budget request. 

Sec. 22. Special hiring authority. 

Sec. 23. Conforming amendments. 

Sec. 24. Assessment of need for additional resources for Committee. 

Sec. 25. Authorization for Defense Advanced Research Projects Agency to limit 

foreign access to technology through contracts and grant agreements. 

Sec. 26. Effective date. 

Sec. 27. Severability. 

3 SEC. 2. SENSE OF CONGRESS. 

4 It is the sense of Congress that— 

5 (1) foreign investment provides substantial eco6 nomic benefits to the United States, including the 

7 promotion of economic growth, productivity, com8 petitiveness, and job creation, and the majority of 

9 foreign investment transactions pose little or no risk 

10 to the national security of the United States, espe11 cially when those investments are truly passive in 

12 nature; 


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1 (2) maintaining the commitment of the United 

2 States to open and fair investment policy also en3 courages other countries to reciprocate and helps 

4 open new foreign markets for United States busi5 nesses and their products; 

6 (3) it should continue to be the policy of the 

7 United States to enthusiastically welcome and sup8 port foreign investment, consistent with the protec9 tion of national security; 

10 (4) at the same time, the national security land11 scape has shifted in recent years, and so have the 

12 nature of the investments that pose the greatest po13 tential risk to national security, which warrants a 

14 modernization of the processes and authorities of the 

15 Committee on Foreign Investment in the United 

16 States; 

17 (5) the Committee on Foreign Investment in 

18 the United States plays a critical role in protecting 

19 the national security of the United States, and, 

20 therefore, it is essential that the member agencies of 

21 the Committee are adequately resourced and able to 

22 hire appropriately qualified individuals in a timely 

23 manner, and that those individuals’ security clear24 ances are processed as a high priority; 


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1 (6) the President should conduct a more robust 

2 international outreach effort to urge and help allies 

3 and partners of the United States to establish proc4 esses that parallel the Committee on Foreign Invest5 ment in the United States to screen foreign invest6 ments for national security risks and to facilitate co7 ordination; and 

8 (7) the President should lead a collaborative ef9 fort with allies and partners of the United States to 

10 develop a new, stronger multilateral export control 

11 regime, aimed to address the unprecedented indus12 trial policies of certain countries of special concern, 

13 including aggressive efforts to acquire United States 

14 technology, and the blending of civil and military 

15 programs. 

16 SEC. 3. DEFINITIONS. 

17 Section 721(a) of the Defense Production Act of 

18 1950 (50 U.S.C. 4565(a)) is amended to read as follows: 

19 ‘‘(a) DEFINITIONS.—In this section: 

20 ‘‘(1) ACCESS.—The term ‘access’ means the 

21 ability and opportunity to obtain information, sub22 ject to regulations prescribed by the Committee. 

23 ‘‘(2) COMMITTEE; CHAIRPERSON.—The terms 

24 ‘Committee’ and ‘chairperson’ mean the Committee 


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1 on Foreign Investment in the United States and the 

2 chairperson thereof, respectively. 

3 ‘‘(3) CONTROL.—The term ‘control’ means the 

4 power to determine, direct, or decide important mat5 ters affecting an entity, subject to regulations pre6 scribed by the Committee. 

7 ‘‘(4) COUNTRY OF SPECIAL CONCERN.— 

8 ‘‘(A) IN GENERAL.—The term ‘country of 

9 special concern’ means a country that poses a 

10 significant threat to the national security inter11 ests of the United States. 

12 ‘‘(B) RULE OF CONSTRUCTION.—This 

13 paragraph shall not be construed to require the 

14 Committee to maintain a list of countries of 

15 special concern. 

16 ‘‘(5) COVERED TRANSACTION.— 

17 ‘‘(A) IN GENERAL.—Except as otherwise 

18 provided, the term ‘covered transaction’ means 

19 any transaction described in subparagraph (B) 

20 that is proposed, pending, or completed on or 

21 after the date of the enactment of the Foreign 

22 Investment Risk Review Modernization Act of 

23 2017. 


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1 ‘‘(B) TRANSACTIONS DESCRIBED.—A 

2 transaction described in this subparagraph is 

3 any of the following: 

4 ‘‘(i) Any merger, acquisition, or take5 over that is proposed or pending after Au6 gust 23, 1988, by or with any foreign per7 son that could result in foreign control of 

8 any United States business. 

9 ‘‘(ii) The purchase or lease by a for10 eign person of private or public real estate 

11 that— 

12 ‘‘(I) is located in the United 

13 States and is in close proximity to a 

14 United States military installation or 

15 to another facility or property of the 

16 United States Government that is 

17 sensitive for reasons relating to na18 tional security; and 

19 ‘‘(II) meets such other criteria as 

20 the Committee prescribes by regula21 tion. 

22 ‘‘(iii) Any other investment (other 

23 than passive investment) by a foreign per24 son in any United States critical tech25 nology company or United States critical 


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1 infrastructure company, subject to regula2 tions prescribed under subparagraph (C). 

3 ‘‘(iv) Any change in the rights that a 

4 foreign person has with respect to a United 

5 States business in which the foreign person 

6 has an investment, if that change could re7 sult in— 

8 ‘‘(I) foreign control of the United 

9 States business; or 

10 ‘‘(II) an investment described in 

11 clause (iii). 

12 ‘‘(v) The contribution (other than 

13 through an ordinary customer relationship) 

14 by a United States critical technology com15 pany of both intellectual property and as16 sociated support to a foreign person 

17 through any type of arrangement, such as 

18 a joint venture, subject to regulations pre19 scribed under subparagraph (C). 

20 ‘‘(vi) Any other transaction, transfer, 

21 agreement, or arrangement the structure 

22 of which is designed or intended to evade 

23 or circumvent the application of this sec24 tion, subject to regulations prescribed by 

25 the Committee. 


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1 ‘‘(C) FURTHER DEFINITION THROUGH

2 REGULATIONS.— 

3 ‘‘(i) CERTAIN INVESTMENTS AND

4 CONTRIBUTIONS.—The Committee shall 

5 prescribe regulations further defining cov6 ered transactions described in clauses (iii) 

7 and (v) of subparagraph (B) by reference 

8 to the technology, sector, subsector, trans9 action type, or other characteristics of such 

10 transactions. 

11 ‘‘(ii) EXEMPTION FOR TRANSACTIONS

12 FROM IDENTIFIED COUNTRIES.—The Com13 mittee may, by regulation, define cir14 cumstances in which a transaction other15 wise described in clause (ii), (iii), or (v) of 

16 subparagraph (B) is excluded from the def17 inition of ‘covered transaction’ if each for18 eign person that is a party to the trans19 action is organized under the laws of, or 

20 otherwise subject to the jurisdiction of, a 

21 country identified by the Committee for 

22 purposes of this clause based on criteria 

23 such as— 


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1 ‘‘(I) whether the United States 

2 has in effect with that country a mu3 tual defense treaty; 

4 ‘‘(II) whether the United States 

5 has in effect with that country a mu6 tual arrangement to safeguard na7 tional security as it pertains to foreign 

8 investment; 

9 ‘‘(III) the national security re10 view process for foreign investment of 

11 that country; and 

12 ‘‘(IV) any other criteria that the 

13 Committee determines to be appro14 priate. 

15 ‘‘(iii) EXEMPTION OF CERTAIN CON16 TRIBUTIONS.—The Committee may, by 

17 regulation, define circumstances in which 

18 contributions otherwise described in sub19 paragraph (B)(v) are excluded from the 

20 term ‘covered transaction’ on the basis of 

21 a determination that other provisions of 

22 law are adequate to identify and address 

23 any potential national security risks posed 

24 by such contributions. 


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1 ‘‘(iv) TRANSFERS OF CERTAIN ASSETS

2 PURSUANT TO BANKRUPTCY PROCEEDINGS

3 OR OTHER DEFAULTS.—The Committee 

4 shall prescribe regulations to clarify that 

5 the term ‘covered transaction’ includes any 

6 transaction described in subparagraph (B) 

7 that arises pursuant to a bankruptcy pro8 ceeding or other form of default on debt. 

9 ‘‘(D) PASSIVE INVESTMENT DEFINED.— 

10 ‘‘(i) IN GENERAL.—For purposes of 

11 subparagraph (B)(iii), the term ‘passive in12 vestment’ means an investment by a for13 eign person in a United States business— 

14 ‘‘(I) that is not described in sub15 paragraph (B)(i); 

16 ‘‘(II) that does not afford the 

17 foreign person— 

18 ‘‘(aa) access to any non19 public technical information in 

20 the possession of the United 

21 States business; 

22 ‘‘(bb) access to any nontech23 nical information in the posses24 sion of the United States busiVerDate Sep 11 2014 02:42 Nov 10, 2017 Jkt 079200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S2098.IS S2098

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1 ness that is not available to all 

2 investors; 

3 ‘‘(cc) membership or ob4 server rights on the board of di5 rectors or equivalent governing 

6 body of the United States busi7 ness or the right to nominate an 

8 individual to such a position; or 

9 ‘‘(dd) any involvement, other 

10 than through voting of shares, in 

11 substantive decisionmaking per12 taining to any matter involving 

13 the United States business; 

14 ‘‘(III) under which the foreign 

15 person and the United States business 

16 do not have a parallel strategic part17 nership or other material financial re18 lationship, as described in regulations 

19 prescribed by the Committee; and 

20 ‘‘(IV) that meets such other cri21 teria as the Committee may prescribe 

22 by regulation. 

23 ‘‘(ii) NONPUBLIC TECHNICAL INFOR24 MATION DEFINED.—For purposes of clause 


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1 (i)(II)(aa), the term ‘nonpublic technical 

2 information’— 

3 ‘‘(I) has the meaning given that 

4 term in regulations prescribed by the 

5 Committee; and 

6 ‘‘(II) includes information (either 

7 by itself or in conjunction with other 

8 information to which a foreign person 

9 may have access)— 

10 ‘‘(aa) without which critical 

11 technologies cannot be designed, 

12 developed, tested, produced, or 

13 manufactured; and 

14 ‘‘(bb) in a quantity suffi15 cient to permit the design, devel16 opment, testing, production, or 

17 manufacturing of such tech18 nologies. 

19 ‘‘(iii) NONTECHNICAL INFORMATION

20 DEFINED.—For purposes of clause 

21 (i)(II)(bb), the term ‘nontechnical informa22 tion’ has the meaning given that term in 

23 regulations prescribed by the Committee. 

24 ‘‘(iv) EFFECT OF LEVEL OF OWNER25 SHIP INTEREST.—A determination of 


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1 whether an investment is a passive invest2 ment under clause (i) shall be made with3 out regard to how low the level of owner4 ship interest a foreign person would hold 

5 or acquire in a United States business 

6 would be as a result of the investment. The 

7 Committee may prescribe regulations speci8 fying that any investment greater than a 

9 certain level or amount would not be con10 sidered a passive investment. 

11 ‘‘(v) REGULATIONS.—The Committee 

12 shall prescribe regulations providing guid13 ance on the types of transactions that the 

14 Committee considers to be passive invest15 ment. 

16 ‘‘(E) ASSOCIATED SUPPORT DEFINED.— 

17 For purposes of subparagraph (B)(v), the term 

18 ‘associated support’ has the meaning given that 

19 term in regulations prescribed by the Com20 mittee. 

21 ‘‘(F) UNITED STATES CRITICAL INFRA22 STRUCTURE COMPANY DEFINED.—For purposes 

23 of subparagraph (B), the term ‘United States 

24 critical infrastructure company’ means a United 

25 States business that is, owns, operates, or priVerDate Sep 11 2014 02:42 Nov 10, 2017 Jkt 079200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S2098.IS S2098

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1 marily provides services to, an entity or entities 

2 that operate within a critical infrastructure sec3 tor or subsector, as defined by regulations pre4 scribed by the Committee. 

5 ‘‘(G) UNITED STATES CRITICAL TECH6 NOLOGY COMPANY.—For purposes of subpara7 graph (B), the term ‘United States critical 

8 technology company’ means a United States 

9 business that produces, trades in, designs, tests, 

10 manufactures, services, or develops one or more 

11 critical technologies, or a subset of such tech12 nologies, as defined by regulations prescribed by 

13 the Committee. 

14 ‘‘(6) CRITICAL INFRASTRUCTURE.—The term 

15 ‘critical infrastructure’ means, subject to regulations 

16 prescribed by the Committee, systems and assets, 

17 whether physical or virtual, so vital to the United 

18 States that the incapacity or destruction of such sys19 tems or assets would have a debilitating impact on 

20 national security. 

21 ‘‘(7) CRITICAL MATERIALS.—The term ‘critical 

22 materials’ means physical materials essential to na23 tional security, subject to regulations prescribed by 

24 the Committee. 

25 ‘‘(8) CRITICAL TECHNOLOGIES.— 


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1 ‘‘(A) IN GENERAL.—The term ‘critical 

2 technologies’ means technology, components, or 

3 technology items that are essential or could be 

4 essential to national security, identified for pur5 poses of this section pursuant to regulations 

6 prescribed by the Committee. 

7 ‘‘(B) INCLUSION OF CERTAIN ITEMS.—The 

8 term ‘critical technologies’ includes the fol9 lowing: 

10 ‘‘(i) Defense articles or defense serv11 ices included on the United States Muni12 tions List set forth in the International 

13 Traffic in Arms Regulations under sub14 chapter M of chapter I of title 22, Code of 

15 Federal Regulations. 

16 ‘‘(ii) Items included on the Commerce 

17 Control List set forth in Supplement No. 1 

18 to part 774 of the Export Administration 

19 Regulations under subchapter C of chapter 

20 VII of title 15, Code of Federal Regula21 tions, and controlled— 

22 ‘‘(I) pursuant to multilateral re23 gimes, including for reasons relating 

24 to national security, chemical and bio25 logical weapons proliferation, nuclear 


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1 nonproliferation, or missile tech2 nology; or 

3 ‘‘(II) for reasons relating to re4 gional stability or surreptitious listen5 ing. 

6 ‘‘(iii) Specially designed and prepared 

7 nuclear equipment, parts and components, 

8 materials, software, and technology covered 

9 by part 810 of title 10, Code of Federal 

10 Regulations (relating to assistance to for11 eign atomic energy activities). 

12 ‘‘(iv) Nuclear facilities, equipment, 

13 and material covered by part 110 of title 

14 10, Code of Federal Regulations (relating 

15 to export and import of nuclear equipment 

16 and material). 

17 ‘‘(v) Select agents and toxins covered 

18 by part 331 of title 7, Code of Federal 

19 Regulations, part 121 of title 9 of such 

20 Code, or part 73 of title 42 of such Code. 

21 ‘‘(vi) Other emerging technologies 

22 that could be essential for maintaining or 

23 increasing the technological advantage of 

24 the United States over countries of special 

25 concern with respect to national defense, 


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1 intelligence, or other areas of national se2 curity, or gaining such an advantage over 

3 such countries in areas where such an ad4 vantage may not currently exist. 

5 ‘‘(9) FOREIGN GOVERNMENT-CONTROLLED

6 TRANSACTION.—The term ‘foreign government-con7 trolled transaction’ means any covered transaction 

8 that could result in the control of any United States 

9 business by a foreign government or an entity con10 trolled by or acting on behalf of a foreign govern11 ment. 

12 ‘‘(10) INTELLECTUAL PROPERTY.—The term 

13 ‘intellectual property’ has the meaning given that 

14 term in regulations prescribed by the Committee. 

15 ‘‘(11) INTELLIGENCE COMMUNITY.—The term 

16 ‘intelligence community’ has the meaning given that 

17 term in section 3(4) of the National Security Act of 

18 1947 (50 U.S.C. 3003(4)). 

19 ‘‘(12) INVESTMENT.—The term ‘investment’ 

20 means the acquisition of equity interest, including 

21 contingent equity interest, as further defined in reg22 ulations prescribed by the Committee. 

23 ‘‘(13) LEAD AGENCY.—The term ‘lead agency’ 

24 means the agency or agencies designated as the lead 

25 agency or agencies pursuant to subsection (k)(5). 


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1 ‘‘(14) MALICIOUS CYBER-ENABLED ACTIVI2 TIES.—The term ‘malicious cyber-enabled activities’ 

3 means any acts— 

4 ‘‘(A) primarily accomplished through or fa5 cilitated by computers or other electronic de6 vices; 

7 ‘‘(B) that are reasonably likely to result in, 

8 or materially contribute to, a significant threat 

9 to the national security of the United States; 

10 and 

11 ‘‘(C) that have the purpose or effect of— 

12 ‘‘(i) significantly compromising the 

13 provision of services by one or more enti14 ties in a critical infrastructure sector; 

15 ‘‘(ii) harming, or otherwise signifi16 cantly compromising the provision of serv17 ices by, a computer or network of com18 puters that support one or more such enti19 ties; 

20 ‘‘(iii) causing a significant disruption 

21 to the availability of a computer or net22 work of computers; or 

23 ‘‘(iv) causing a significant misappro24 priation of funds or economic resources, 


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1 trade secrets, personally identifiable infor2 mation, or financial information. 

3 ‘‘(15) NATIONAL SECURITY.—The term ‘na4 tional security’ shall be construed so as to include 

5 those issues relating to ‘homeland security’, includ6 ing its application to critical infrastructure. 

7 ‘‘(16) PARTY.—The term ‘party’ has the mean8 ing given that term in regulations prescribed by the 

9 Committee. 

10 ‘‘(17) UNITED STATES.—The term ‘United 

11 States’ means the several States, the District of Co12 lumbia, and any territory or possession of the 

13 United States. 

14 ‘‘(18) UNITED STATES BUSINESS.—The term 

15 ‘United States business’ means a person engaged in 

16 interstate commerce in the United States.’’. 

17 SEC. 4. INCLUSION OF PARTNERSHIP AND SIDE AGREE18 MENTS IN NOTICE. 

19 Section 721(b)(1)(C) of the Defense Production Act 

20 of 1950 (50 U.S.C. 4565(b)(1)(C)) is amended by adding 

21 at the end the following: 

22 ‘‘(iv) INCLUSION OF PARTNERSHIP

23 AND SIDE AGREEMENTS.—A written notice 

24 submitted under clause (i) by a party to a 

25 covered transaction shall include a copy of 


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1 any partnership agreements, integration 

2 agreements, or other side agreements relat3 ing to the transaction, including any such 

4 agreements relating to the transfer of in5 tellectual property, as specified in regula6 tions prescribed by the Committee.’’. 

7 SEC. 5. DECLARATIONS RELATING TO CERTAIN COVERED 

8 TRANSACTIONS. 

9 Section 721(b)(1)(C) of the Defense Production Act 

10 of 1950 (50 U.S.C. 4565(b)(1)(C)), as amended by section 

11 4, is further amended by adding at the end the following: 

12 ‘‘(v) DECLARATIONS RELATING TO

13 CERTAIN COVERED TRANSACTIONS.— 

14 ‘‘(I) VOLUNTARY DECLARA15 TIONS.—Except as provided in this 

16 clause, a party to any covered trans17 action may submit to the Committee a 

18 declaration with basic information re19 garding the transaction instead of a 

20 written notice under clause (i). 

21 ‘‘(II) MANDATORY DECLARA22 TIONS.— 

23 ‘‘(aa) CERTAIN COVERED

24 TRANSACTIONS WITH FOREIGN

25 GOVERNMENT INTERESTS.—The 


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1 parties to a covered transaction 

2 shall submit a declaration de3 scribed in subclause (I) with re4 spect to the transaction if the 

5 transaction involves the acquisi6 tion of a voting interest of at 

7 least 25 percent in a United 

8 States business by a foreign per9 son in which a foreign govern10 ment owns, directly or indirectly, 

11 at least a 25-percent voting inter12 est. 

13 ‘‘(bb) OTHER DECLARA14 TIONS REQUIRED BY COM15 MITTEE.—The Committee shall 

16 require the submission of a dec17 laration described in subclause 

18 (I) with respect to any covered 

19 transaction identified under regu20 lations prescribed by the Com21 mittee for purposes of this item, 

22 at the discretion of the Com23 mittee and based on appropriate 

24 factors, such as— 


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1 ‘‘(AA) the technology, 

2 industry, economic sector, or 

3 economic subsector in which 

4 the United States business 

5 that is a party to the trans6 action trades or of which it 

7 is a part; 

8 ‘‘(BB) the difficulty of 

9 remedying the harm to na10 tional security that may re11 sult from completion of the 

12 transaction; and 

13 ‘‘(CC) the difficulty of 

14 obtaining information on the 

15 type of covered transaction 

16 through other means. 

17 ‘‘(cc) SUBMISSION OF WRIT18 TEN NOTICE AS AN ALTER19 NATIVE.—Parties to a covered 

20 transaction for which a declara21 tion is required under this sub22 clause may instead elect to sub23 mit a written notice under clause 

24 (i). 


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1 ‘‘(dd) TIMING OF SUBMIS2 SION.— 

3 ‘‘(AA) IN GENERAL.—A 

4 declaration required to be 

5 submitted with respect to a 

6 covered transaction by item 

7 (aa) or (bb) shall be sub8 mitted not later than 45 

9 days before the completion 

10 of the transaction. 

11 ‘‘(BB) WRITTEN NO12 TICE.—If, pursuant to item 

13 (cc), the parties to a covered 

14 transaction elect to submit a 

15 written notice under clause 

16 (i) instead of a declaration 

17 under this subclause, the 

18 written notice shall be filed 

19 not later than 90 days be20 fore the completion of the 

21 transaction. 

22 ‘‘(III) PENALTIES.—The Com23 mittee may impose a penalty pursuant 

24 to subsection (h)(3) with respect to a 


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1 party that fails to comply with this 

2 clause. 

3 ‘‘(IV) COMMITTEE RESPONSE TO

4 DECLARATION.— 

5 ‘‘(aa) IN GENERAL.—Upon 

6 receiving a declaration under this 

7 clause with respect to a trans8 action, the Committee may, at its 

9 discretion— 

10 ‘‘(AA) request that the 

11 parties to the transaction 

12 file a written notice under 

13 clause (i); 

14 ‘‘(BB) inform the par15 ties to the transaction that 

16 the Committee is not able to 

17 complete action under this 

18 section with respect to the 

19 transaction on the basis of 

20 the declaration and that the 

21 parties may file a written 

22 notice under clause (i) to 

23 seek written notification 

24 from the Committee that the 

25 Committee has completed all 


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1 action under this section 

2 with respect to the trans3 action; 

4 ‘‘(CC) initiate a unilat5 eral review of the trans6 action under subparagraph 

7 (D); or 

8 ‘‘(DD) notify the par9 ties in writing that the Com10 mittee has completed all ac11 tion under this section with 

12 respect to the transaction. 

13 ‘‘(bb) TIMING.—The Com14 mittee shall endeavor to take ac15 tion under item (aa) within 30 

16 days of receiving a declaration 

17 under this clause. 

18 ‘‘(cc) RULE OF CONSTRUC19 TION.—Nothing in this subclause 

20 (other than item (aa)(CC)) shall 

21 be construed to affect the author22 ity of the President or the Com23 mittee to take any action author24 ized by this section with respect 

25 to a covered transaction. 


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1 ‘‘(V) REGULATIONS.—The Com2 mittee shall prescribe regulations es3 tablishing requirements for declara4 tions submitted under this clause. In 

5 prescribing such regulations, the Com6 mittee shall ensure that such declara7 tions are submitted as abbreviated no8 tifications that would not generally ex9 ceed 5 pages in length.’’. 

10 SEC. 6. STIPULATIONS REGARDING TRANSACTIONS. 

11 Section 721(b)(1)(C) of the Defense Production Act 

12 of 1950 (50 U.S.C. 4565(b)(1)(C)), as amended by section 

13 5, is further amended by adding at the end the following: 

14 ‘‘(vi) STIPULATIONS REGARDING

15 TRANSACTIONS.— 

16 ‘‘(I) IN GENERAL.—In a written 

17 notice submitted under clause (i) or a 

18 declaration submitted under clause (v) 

19 with respect to a transaction, a party 

20 to the transaction may— 

21 ‘‘(aa) stipulate that the 

22 transaction is a covered trans23 action; and 

24 ‘‘(bb) if the party stipulates 

25 that the transaction is a covered 


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1 transaction under item (aa), stip2 ulate that the transaction is a 

3 foreign government-controlled 

4 transaction. 

5 ‘‘(II) BASIS FOR STIPULATION.— 

6 A written notice submitted under 

7 clause (i) or a declaration submitted 

8 under clause (v) that includes a stipu9 lation under subclause (I) shall in10 clude a description of the basis for the 

11 stipulation.’’. 

12 SEC. 7. AUTHORITY FOR UNILATERAL INITIATION OF RE13 VIEWS. 

14 Section 721(b)(1) of the Defense Production Act of 

15 1950 (50 U.S.C. 4565(b)(1)) is amended— 

16 (1) by redesignating subparagraphs (E) and 

17 (F) as subparagraphs (F) and (G), respectively; 

18 (2) in subparagraph (D)— 

19 (A) in clause (i), by inserting ‘‘(other than 

20 a covered transaction described in subpara21 graph (E))’’ after ‘‘any covered transaction’’; 

22 (B) by striking clause (ii) and inserting the 

23 following: 

24 ‘‘(ii) any covered transaction described 

25 in subparagraph (E), if any party to the 


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1 transaction submitted false or misleading 

2 material information to the Committee in 

3 connection with the Committee’s consider4 ation of the transaction or omitted mate5 rial information, including material docu6 ments, from information submitted to the 

7 Committee; or’’; and 

8 (C) in clause (iii)— 

9 (i) in the matter preceding subclause 

10 (I), by striking ‘‘any covered transaction 

11 that has previously been reviewed or inves12 tigated under this section,’’ and inserting 

13 ‘‘any covered transaction described in sub14 paragraph (E),’’; 

15 (ii) in subclause (I), by striking ‘‘in16 tentionally’’; 

17 (iii) in subclause (II), by striking ‘‘an 

18 intentional’’ and inserting ‘‘a’’; and 

19 (iv) in subclause (III), by inserting 

20 ‘‘adequate and appropriate’’ before ‘‘rem21 edies or enforcement tools’’; and 

22 (3) by inserting after subparagraph (D) the fol23 lowing: 


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1 ‘‘(E) COVERED TRANSACTIONS DE2 SCRIBED.—A covered transaction is described 

3 in this subparagraph if— 

4 ‘‘(i) the Committee has informed the 

5 parties to the transaction in writing that 

6 the Committee has completed all action 

7 under this section with respect to the 

8 transaction; or 

9 ‘‘(ii) the President has announced a 

10 decision not to exercise the President’s au11 thority under subsection (d) with respect 

12 to the transaction.’’. 

13 SEC. 8. TIMING FOR REVIEWS AND INVESTIGATIONS. 

14 Section 721(b) of the Defense Production Act of 

15 1950 (50 U.S.C. 4565(b)), as amended by section 7, is 

16 further amended— 

17 (1) in paragraph (1)(F), by striking ‘‘30’’ and 

18 inserting ‘‘45’’; 

19 (2) in paragraph (2), by striking subparagraph 

20 (C) and inserting the following: 

21 ‘‘(C) TIMING.— 

22 ‘‘(i) IN GENERAL.—Except as pro23 vided in clause (ii), any investigation under 

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1 ning on the date on which the investigation 

2 commenced. 

3 ‘‘(ii) EXTENSION FOR EXTRAOR4 DINARY CIRCUMSTANCES.— 

5 ‘‘(I) IN GENERAL.—In extraor6 dinary circumstances (as defined by 

7 the Committee in regulations), the 

8 chairperson may, at the request of the 

9 head of the lead agency, extend an in10 vestigation under subparagraph (A) 

11 for one 30-day period. 

12 ‘‘(II) NONDELEGATION.—The 

13 authority of the chairperson and the 

14 head of the lead agency referred to in 

15 subclause (I) may not be delegated to 

16 any person other than the Deputy 

17 Secretary of the Treasury or the dep18 uty head (or equivalent thereof) of the 

19 lead agency, as the case may be. 

20 ‘‘(III) NOTIFICATION TO PAR21 TIES.—If the Committee extends the 

22 deadline under subclause (I) with re23 spect to a covered transaction, the 

24 Committee shall notify the parties to 

25 the transaction of the extension.’’; and 


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1 (3) by adding at the end the following: 

2 ‘‘(8) TOLLING OF DEADLINES DURING LAPSE IN

3 APPROPRIATIONS.—Any deadline or time limitation 

4 under this subsection shall be tolled during a lapse 

5 in appropriations.’’. 

6 SEC. 9. MONITORING OF NON-NOTIFIED AND NON-DE7 CLARED TRANSACTIONS. 

8 Section 721(b)(1) of the Defense Production Act of 

9 1950 (50 U.S.C. 4565(b)(1)), as amended by section 7, 

10 is further amended by adding at the end the following: 

11 ‘‘(H) MONITORING OF NON-NOTIFIED AND

12 NON-DECLARED TRANSACTIONS.—The Com13 mittee shall establish a mechanism to identify 

14 covered transactions for which— 

15 ‘‘(i) a notice under clause (i) of sub16 paragraph (C) or a declaration under 

17 clause (v) of that subparagraph is not sub18 mitted to the Committee; and 

19 ‘‘(ii) information is reasonably avail20 able.’’. 

21 SEC. 10. SUBMISSION OF CERTIFICATIONS TO CONGRESS. 

22 Section 721(b)(3)(C) of the Defense Production Act 

23 of 1950 (50 U.S.C. 4565(b)(3)(C)) is amended— 

24 (1) in clause (iii)— 


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1 (A) in subclause (II), by inserting ‘‘and the 

2 Select Committee on Intelligence’’ after ‘‘Urban 

3 Affairs’’; and 

4 (B) in subclause (IV), by inserting ‘‘and 

5 the Permanent Select Committee on Intel6 ligence’’ after ‘‘Financial Services’’; 

7 (2) in clause (iv), by striking subclause (II) and 

8 inserting the following: 

9 ‘‘(II) DELEGATION OF CERTIFI10 CATIONS.— 

11 ‘‘(aa) IN GENERAL.—Sub12 ject to item (bb), the chairperson, 

13 in consultation with the Com14 mittee, may determine the level 

15 of official to whom the signature 

16 requirement under subclause (I) 

17 for the chairperson and the head 

18 of the lead agency may be dele19 gated. The level of official to 

20 whom the signature requirement 

21 may be delegated may differ 

22 based on any factor relating to a 

23 transaction that the chairperson, 

24 in consultation with the Com25 mittee, deems appropriate, inVerDate Sep 11 2014 02:42 Nov 10, 2017 Jkt 079200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\S2098.IS S2098

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1 cluding the type or value of the 

2 transaction. 

3 ‘‘(bb) LIMITATIONS.—The 

4 signature requirement under sub5 clause (I) may be delegated— 

6 ‘‘(AA) in the case of a 

7 covered transaction assessed 

8 by the Director of National 

9 Intelligence under paragraph 

10 (4) as more likely than not 

11 to threaten the national se12 curity of the United States, 

13 not below the level of the 

14 Assistant Secretary of the 

15 Treasury or an equivalent 

16 official of another agency or 

17 department represented on 

18 the Committee; and 

19 ‘‘(BB) in the case of 

20 any other covered trans21 action, not below the level of 

22 a Deputy Assistant Sec23 retary of the Treasury or an 

24 equivalent official of another 

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1 resented on the Com2 mittee.’’; and 

3 (3) by adding at the following: 

4 ‘‘(v) AUTHORITY TO CONSOLIDATE

5 DOCUMENTS.—Instead of transmitting a 

6 separate certified notice or certified report 

7 under subparagraph (A) or (B) with re8 spect to each covered transaction, the 

9 Committee may, on a monthly basis, trans10 mit such notices and reports in a consoli11 dated document to the Members of Con12 gress specified in clause (iii).’’. 

13 SEC. 11. ANALYSIS BY DIRECTOR OF NATIONAL INTEL14 LIGENCE. 

15 Section 721(b)(4) of the Defense Production Act of 

16 1950 (50 U.S.C. 4565(b)(4)) is amended— 

17 (1) by striking subparagraph (A) and inserting 

18 the following: 

19 ‘‘(A) ANALYSIS REQUIRED.— 

20 ‘‘(i) IN GENERAL.—The Director of 

21 National Intelligence shall expeditiously 

22 carry out a thorough analysis of any threat 

23 to the national security of the United 

24 States posed by any covered transaction, 

25 which shall include the identification of 


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1 any recognized gaps in the collection of in2 telligence relevant to the analysis. 

3 ‘‘(ii) VIEWS OF INTELLIGENCE AGEN4 CIES.—The Director shall seek and incor5 porate into the analysis required by clause 

6 (i) the views of all affected or appropriate 

7 intelligence agencies with respect to the 

8 transaction. 

9 ‘‘(iii) UPDATES.—At the request of 

10 the lead agency, the Director shall update 

11 the analysis conducted under clause (i) 

12 with respect to a covered transaction with 

13 respect to which an agreement was entered 

14 into under subsection (l)(3)(A). 

15 ‘‘(iv) INDEPENDENCE AND OBJEC16 TIVITY.—The Committee shall ensure that 

17 its processes under this section preserve 

18 the ability of the Director to conduct anal19 ysis under clause (i) that is independent, 

20 objective, and consistent with all applicable 

21 directives, policies, and analytic tradecraft 

22 standards of the intelligence community.’’; 

23 (2) by redesignating subparagraphs (B), (C), 

24 and (D) as subparagraphs (C), (D), and (E), respec25 tively; 


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1 (3) by inserting after subparagraph (A) the fol2 lowing: 

3 ‘‘(B) BASIC THREAT INFORMATION.— 

4 ‘‘(i) IN GENERAL.—The Director of 

5 National Intelligence may provide the 

6 Committee with basic information regard7 ing any threat to the national security of 

8 the United States posed by a covered 

9 transaction described in clause (ii) instead 

10 of conducting the analysis required by sub11 paragraph (A). 

12 ‘‘(ii) COVERED TRANSACTION DE13 SCRIBED.—A covered transaction is de14 scribed in this clause if— 

15 ‘‘(I) the transaction is described 

16 in subsection (a)(5)(B)(ii); 

17 ‘‘(II) the Director of National In18 telligence has completed an analysis 

19 pursuant to subparagraph (A) involv20 ing each foreign person that is a party 

21 to the transaction during the 12 

22 months preceding the review or inves23 tigation of the transaction under this 

24 section; or 


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1 ‘‘(III) the transaction otherwise 

2 meets criteria agreed upon by the 

3 Committee and the Director of Na4 tional Intelligence for purposes of this 

5 subparagraph.’’; 

6 (4) in subparagraph (C), as redesignated by 

7 paragraph (2), by striking ‘‘20’’ and inserting ‘‘30’’; 

8 and 

9 (5) by adding at the end the following: 

10 ‘‘(F) ASSESSMENT OF OPERATIONAL IM11 PACT.—The Director may provide to the Com12 mittee an assessment, separate from the anal13 yses under subparagraphs (A) and (B), of any 

14 operational impact of a covered transaction on 

15 the intelligence community and a description of 

16 any actions that have been or will be taken to 

17 mitigate any such impact. 

18 ‘‘(G) SUBMISSION TO CONGRESS.—The 

19 Committee shall submit the analysis required by 

20 subparagraph (A) with respect to a covered 

21 transaction to the Select Committee on Intel22 ligence of the Senate and the Permanent Select 

23 Committee on Intelligence of the House of Rep24 resentatives upon the conclusion of action under 

25 this section (other than compliance reviews 


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1 under subsection (l)(6)) with respect to the 

2 transaction.’’. 

3 SEC. 12. INFORMATION SHARING. 

4 Section 721(c) of the Defense Production Act of 1950 

5 (50 U.S.C. 4565(c)) is amended— 

6 (1) by striking ‘‘Any information’’ and inserting 

7 the following: 

8 ‘‘(1) IN GENERAL.—Except as provided in para9 graph (2), any information’’; 

10 (2) by striking ‘‘, except as may be relevant’’ 

11 and all that follows and inserting a period; and 

12 (3) by adding at the end the following: 

13 ‘‘(2) EXCEPTIONS.—Paragraph (1) shall not 

14 prohibit the disclosure of the following: 

15 ‘‘(A) Information relevant to any adminis16 trative or judicial action or proceeding. 

17 ‘‘(B) Information to either House of Con18 gress or to any duly authorized committee or 

19 subcommittee of Congress. 

20 ‘‘(C) Information to any domestic or for21 eign governmental entity, under the direction of 

22 the chairperson, to the extent necessary for na23 tional security purposes and pursuant to appro24 priate confidentiality and classification arrange25 ments. 


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1 ‘‘(D) Information that the parties have 

2 consented to be disclosed to third parties.’’. 

3 SEC. 13. ACTION BY THE PRESIDENT. 

4 (a) IN GENERAL.—Section 721(d) of the Defense 

5 Production Act of 1950 (50 U.S.C. 4565(d)) is amend6 ed— 

7 (1) by striking paragraph (1) and inserting the 

8 following: 

9 ‘‘(1) IN GENERAL.—Subject to paragraph (4), 

10 the President may, with respect to a covered trans11 action that threatens to impair the national security 

12 of the United States— 

13 ‘‘(A) take such action for such time as the 

14 President considers appropriate to suspend or 

15 prohibit the transaction or to require divest16 ment; and 

17 ‘‘(B) in conjunction with taking any such 

18 action, take any additional action the President 

19 considers appropriate to address the risk to the 

20 national security of the United States identified 

21 during the review and investigation of the 

22 transaction under this section.’’; and 

23 (2) in paragraph (2), by striking ‘‘not later 

24 than 15 days’’ and all that follows and inserting the 


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1 following: ‘‘with respect to a covered transaction not 

2 later than 15 days after the earlier of— 

3 ‘‘(A) the date on which the investigation of 

4 the transaction under subsection (b) is com5 pleted; or 

6 ‘‘(B) the date on which the Committee oth7 erwise refers the transaction to the President 

8 under subsection (l)(2).’’. 

9 (b) CIVIL PENALTIES.—Section 721(h)(3)(A) of the 

10 Defense Production Act of 1950 (50 U.S.C. 

11 4565(h)(3)(A)) is amended by striking ‘‘including any 

12 mitigation’’ and all that follows through ‘‘subsection (l)’’ 

13 and inserting ‘‘including any mitigation agreement entered 

14 into, conditions imposed, or order issued pursuant to this 

15 section’’. 

16 SEC. 14. JUDICIAL REVIEW PROCEDURES. 

17 Section 721(e) of the Defense Production Act of 1950 

18 (50 U.S.C. 4565) is amended to read as follows: 

19 ‘‘(e) ACTIONS AND FINDINGS NONREVIEWABLE.— 

20 ‘‘(1) ACTIONS AND FINDINGS OF THE PRESI21 DENT.—The actions and findings of the President or 

22 the President’s designee under this section shall not 

23 be subject to judicial review, including claims under 

24 chapter 7 of title 5, United States Code. 


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1 ‘‘(2) ACTIONS AND FINDINGS OF THE COM2 MITTEE.— 

3 ‘‘(A) IN GENERAL.—Except as provided in 

4 subparagraph (B), the actions and findings of 

5 the Committee under subsection (b) or (l), and 

6 any assessment of penalties or use of enforce7 ment authorities under this section, shall not be 

8 subject to judicial review, including claims 

9 under chapter 7 of title 5, United States Code. 

10 ‘‘(B) PETITIONS.— 

11 ‘‘(i) DEFINITION.—In this subpara12 graph, the term ‘classified information’ 

13 means any information or material that 

14 has been determined by the United States 

15 Government pursuant to an Executive 

16 order, statute, or regulation to require pro17 tection against unauthorized disclosure for 

18 reasons of national security and any re19 stricted data, as defined in section 11 of 

20 the Atomic Energy Act of 1954 (42 U.S.C. 

21 2014). 

22 ‘‘(ii) PETITION.— 

23 ‘‘(I) IN GENERAL.—Except as 

24 provided in subclause (II), not later 

25 than 60 days after the date on which 


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1 the President or the Committee takes 

2 an action with respect to the covered 

3 transaction, any party to the covered 

4 transaction may file a petition under 

5 this subparagraph alleging that the 

6 action of the Committee is a violation 

7 of a constitutional right, power, privi8 lege, or immunity. 

9 ‘‘(II) NOTIFICATION.—No party 

10 to a covered transaction shall be per11 mitted to file a petition or any claim 

12 related to a petition under subclause 

13 (I) unless— 

14 ‘‘(aa) the party initiated the 

15 review of the transaction pursu16 ant to a written notice filed 

17 under clause (i) of subsection 

18 (b)(1)(C) or a declaration filed 

19 under clause (v) of that sub20 section or the Committee deter21 mines that such a notice or dec22 laration was not required; and 

23 ‘‘(bb) the Committee has 

24 completed all action under this 


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1 section with respect to the trans2 action. 

3 ‘‘(III) RELATED CLAIMS.—Any 

4 claims related to a petition filed under 

5 this clause shall be filed before the 

6 date described in subclause (I). 

7 ‘‘(iii) EXCLUSIVE JURISDICTION.— 

8 ‘‘(I) IN GENERAL.—The United 

9 States Court of Appeals for the Dis10 trict of Columbia Circuit shall have 

11 exclusive jurisdiction over claims aris12 ing under this subparagraph, subject 

13 to review by the Supreme Court of the 

14 United States under section 1254 of 

15 title 28, United States Code, only— 

16 ‘‘(aa) to affirm the action of 

17 the Committee; or 

18 ‘‘(bb) to remand the case to 

19 the Committee for further consid20 eration. 

21 ‘‘(II) STANDARD OF REVIEW.— 

22 The court shall uphold an action chal23 lenged under this subparagraph unless 

24 the court finds that the action was 


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1 contrary to a constitutional right, 

2 power, privilege, or immunity. 

3 ‘‘(iv) SCOPE OF REVIEW.—In a claim 

4 under this subparagraph, the court shall 

5 decide all relevant questions based solely 

6 on any administrative record submitted by 

7 the United States under clause (v). 

8 ‘‘(v) ADMINISTRATIVE RECORD AND

9 PROCEDURES.— 

10 ‘‘(I) IN GENERAL.—Notwith11 standing any other provision of law, 

12 the procedures described in this clause 

13 shall apply to the review of a petition 

14 under this subparagraph. 

15 ‘‘(II) ADMINISTRATIVE

16 RECORD.— 

17 ‘‘(aa) FILING OF RECORD.— 

18 The United States shall file with 

19 the court an administrative 

20 record, which shall consist of the 

21 information that the parties sub22 mitted to the Committee and 

23 that the Committee relied upon 

24 in support of the action of the 

25 Committee under review. 


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1 ‘‘(bb) UNCLASSIFIED, NON2 PRIVILEGED INFORMATION.—All 

3 unclassified information con4 tained in the administrative 

5 record that is not otherwise privi6 leged or subject to statutory pro7 tections shall be provided to the 

8 petitioner with appropriate pro9 tections for any privileged or con10 fidential trade secrets and com11 mercial or financial information. 

12 ‘‘(cc) DISCOVERY BAR.— 

13 Other than the provision of infor14 mation in the administrative 

15 record described in subparagraph 

16 (II)(bb), no discovery shall be 

17 permitted. 

18 ‘‘(dd) IN CAMERA AND EX

19 PARTE.—The following informa20 tion may be included in the ad21 ministrative record and shall be 

22 submitted only to the court ex 

23 parte and in camera: 


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1 ‘‘(AA) Unclassified in2 formation subject to privi3 lege or statutory protections. 

4 ‘‘(BB) Classified infor5 mation. 

6 ‘‘(CC) Sensitive secu7 rity information. 

8 ‘‘(DD) Sensitive law en9 forcement information. 

10 ‘‘(EE) Information ob11 tained or derived from any 

12 activity authorized under the 

13 Foreign Intelligence Surveil14 lance Act of 1978 (50 

15 U.S.C. 1801 et seq.), except 

16 that, with respect to such in17 formation, subsections (c), 

18 (e), (f), (g), and (h) of sec19 tion 106 (50 U.S.C. 1806), 

20 subsections (d), (f), (g), (h), 

21 and (i) of section 305 (50 

22 U.S.C. 1825), subsections 

23 (c), (e), (f), (g), and (h) of 

24 section 405 (50 U.S.C. 

25 1845), and section 706 (50 


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1 U.S.C. 1881e) of that Act 

2 shall not apply. 

3 ‘‘(ee) UNDER SEAL.—Any 

4 classified information, sensitive 

5 security information, law enforce6 ment sensitive information, or in7 formation that is otherwise privi8 leged or subject to statutory pro9 tections, that is part of the ad10 ministrative record filed ex parte 

11 and in camera, or cited by the 

12 court in any decision, shall be 

13 treated by the court consistent 

14 with the provisions of this sub15 paragraph, and shall remain 

16 under seal and preserved in the 

17 records of the court to be made 

18 available in the event of further 

19 proceedings. In no event shall 

20 such information be released to 

21 the claimant or as part of the 

22 public record. 

23 ‘‘(ff) RETURN.—After the 

24 expiration of the time to seek 

25 further review, or the conclusion 


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1 of further proceedings, the court 

2 shall return the administrative 

3 record, including any and all cop4 ies, to the United States. 

5 ‘‘(gg) CONSIDERATION OF

6 CLAIM WITHOUT INFORMATION

7 IN ADMINISTRATIVE RECORD.— 

8 If, on motion or sua sponte, the 

9 court determines that the claim 

10 may be considered without any of 

11 the information in the adminis12 trative record, the court shall re13 quire that only the necessary in14 formation, if any, from the 

15 record be provided to the parties. 

16 ‘‘(vi) EXCLUSIVE REMEDY.—A deter17 mination by the court under this subpara18 graph shall be the exclusive judicial remedy 

19 for any claim described in this subpara20 graph against the United States, any 

21 United States department or agency, or 

22 any component or official of any such de23 partment or agency. 

24 ‘‘(vii) RULE OF CONSTRUCTION.— 

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1 strued as limiting, superseding, or pre2 venting the invocation of, any privileges or 

3 defenses that are otherwise available at law 

4 or in equity to protect against the disclo5 sure of information.’’. 

6 SEC. 15. FACTORS TO BE CONSIDERED. 

7 Section 721(f) of the Defense Production Act of 1950 

8 (50 U.S.C. 4565(f)) is amended— 

9 (1) in paragraph (1), by inserting ‘‘including 

10 whether the covered transaction is likely to result in 

11 the increased reliance by the United States on for12 eign suppliers to meet national defense require13 ments;’’ after ‘‘defense requirements,’’; 

14 (2) in paragraph (4), by striking ‘‘proposed or 

15 pending’’; 

16 (3) by striking paragraph (5) and insert the fol17 lowing: 

18 ‘‘(5) the potential effects of the covered trans19 action on United States international technological 

20 and industrial leadership in areas affecting United 

21 States national security, including whether the 

22 transaction is likely to reduce the technological and 

23 industrial advantage of the United States relative to 

24 any country of special concern;’’; 


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1 (4) in paragraph (6), by inserting ‘‘and trans2 portation assets, as defined in Presidential Policy 

3 Directive 21 (February 12, 2013; relating to critical 

4 infrastructure security and resilience) or any suc5 cessor directive’’ after ‘‘energy assets’’; 

6 (5) in paragraph (7), by inserting ‘‘, including 

7 whether the covered transaction is likely to con8 tribute to the loss of or other adverse effects on 

9 technologies that provide a strategic national secu10 rity advantage to the United States’’ after ‘‘critical 

11 technologies’’; 

12 (6) in paragraph (10), by striking ‘‘; and’’ and 

13 inserting a semicolon; 

14 (7) by redesignating paragraph (11) as para15 graph (20); and 

16 (8) by inserting after paragraph (10) the fol17 lowing: 

18 ‘‘(11) the degree to which the covered trans19 action is likely to increase the cost to the United 

20 States Government of acquiring or maintaining the 

21 equipment and systems that are necessary for de22 fense, intelligence, or other national security func23 tions; 

24 ‘‘(12) the potential national security-related ef25 fects of the cumulative market share of any one type 


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1 of infrastructure, energy asset, critical material, or 

2 critical technology by foreign persons; 

3 ‘‘(13) whether any foreign person that would 

4 acquire an interest in a United States business or its 

5 assets as a result of the covered transaction has a 

6 history of— 

7 ‘‘(A) complying with United States laws 

8 and regulations, including laws and regulations 

9 pertaining to exports, the protection of intellec10 tual property, and immigration; and 

11 ‘‘(B) adhering to contracts or other agree12 ments with entities of the United States Gov13 ernment; 

14 ‘‘(14) the extent to which the covered trans15 action is likely to expose, either directly or indirectly, 

16 personally identifiable information, genetic informa17 tion, or other sensitive data of United States citizens 

18 to access by a foreign government or foreign person 

19 that may exploit that information in a manner that 

20 threatens national security; 

21 ‘‘(15) whether the covered transaction is likely 

22 to have the effect of creating any new cybersecurity 

23 vulnerabilities in the United States or exacerbating 

24 existing cybersecurity vulnerabilities; 


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1 ‘‘(16) whether the covered transaction is likely 

2 to result in a foreign government gaining a signifi3 cant new capability to engage in malicious cyber-en4 abled activities against the United States, including 

5 such activities designed to affect the outcome of any 

6 election for Federal office; 

7 ‘‘(17) whether the covered transaction involves 

8 a country of special concern that has a demonstrated 

9 or declared strategic goal of acquiring a type of crit10 ical technology that a United States business that is 

11 a party to the transaction possesses; 

12 ‘‘(18) whether the covered transaction is likely 

13 to facilitate criminal or fraudulent activity affecting 

14 the national security of the United States; 

15 ‘‘(19) whether the covered transaction is likely 

16 to expose any information regarding sensitive na17 tional security matters or sensitive procedures or op18 erations of a Federal law enforcement agency with 

19 national security responsibilities to a foreign person 

20 not authorized to receive that information; and’’. 

21 SEC. 16. ACTIONS BY THE COMMITTEE TO ADDRESS NA22 TIONAL SECURITY RISKS. 

23 Section 721(l) of the Defense Production Act of 1950 

24 (50 U.S.C. 4565(l)) is amended— 


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1 (1) in the subsection heading, by striking 

2 ‘‘MITIGATION, TRACKING, AND POSTCONSUMMATION

3 MONITORING AND ENFORCEMENT’’ and inserting 

4 ‘‘ACTIONS BY THE COMMITTEE TO ADDRESS NA5 TIONAL SECURITY RISKS’’; 

6 (2) by redesignating paragraphs (1), (2), and 

7 (3) as paragraphs (3), (5), and (6), respectively; 

8 (3) by inserting before paragraph (3), as redes9 ignated by paragraph (2), the following: 

10 ‘‘(1) SUSPENSION OF TRANSACTIONS.—The 

11 Committee, acting through the chairperson, may 

12 suspend a proposed or pending covered transaction 

13 that may pose a risk to the national security of the 

14 United States for such time as the covered trans15 action is under review or investigation under sub16 section (b). 

17 ‘‘(2) REFERRAL TO PRESIDENT.—The Com18 mittee may, at any time during the review or inves19 tigation of a covered transaction under subsection 

20 (b), complete the action of the Committee with re21 spect to the transaction and refer the transaction to 

22 the President for action pursuant to subsection 

23 (d).’’; 

24 (4) in paragraph (3), as redesignated by para25 graph (2)— 


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1 (A) in subparagraph (A)— 

2 (i) in the subparagraph heading, by 

3 striking ‘‘IN GENERAL’’ and inserting 

4 ‘‘AGREEMENTS AND CONDITIONS’’; 

5 (ii) by striking ‘‘The Committee’’ and 

6 inserting the following: 

7 ‘‘(i) IN GENERAL.—The Committee’’; 

8 (iii) by striking ‘‘threat’’ and inserting 

9 ‘‘risk’’; and 

10 (iv) by adding at the end the fol11 lowing: 

12 ‘‘(ii) ABANDONMENT OF TRANS13 ACTIONS.—If a party to a covered trans14 action has voluntarily chosen to abandon 

15 the transaction, the Committee or lead 

16 agency, as the case may be, may negotiate, 

17 enter into or impose, and enforce any 

18 agreement or condition with any party to 

19 the covered transaction for purposes of ef20 fectuating such abandonment and miti21 gating any risk to the national security of 

22 the United States that arises as a result of 

23 the covered transaction. 

24 ‘‘(iii) AGREEMENTS AND CONDITIONS

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1 ACTIONS.—The Committee or lead agency, 

2 as the case may be, may negotiate, enter 

3 into or impose, and enforce any agreement 

4 or condition with any party to a completed 

5 covered transaction in order to mitigate 

6 any interim risk to the national security of 

7 the United States that may arise as a re8 sult of the covered transaction until such 

9 time that the Committee has completed ac10 tion pursuant to subsection (b) or the 

11 President has taken action pursuant to 

12 subsection (d) with respect to the trans13 action.’’; and 

14 (B) by striking subparagraph (B) and in15 serting the following: 

16 ‘‘(B) LIMITATIONS.—An agreement may 

17 not be entered into or condition imposed under 

18 subparagraph (A) with respect to a covered 

19 transaction unless the Committee determines 

20 that the agreement or condition resolves the na21 tional security concerns posed by the trans22 action, taking into consideration whether the 

23 agreement or condition is reasonably calculated 

24 to— 

25 ‘‘(i) be effective; 


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1 ‘‘(ii) allow for compliance with the 

2 terms of the agreement or condition in an 

3 appropriately verifiable way; and 

4 ‘‘(iii) enable effective monitoring of 

5 compliance with and enforcement of the 

6 terms of the agreement or condition. 

7 ‘‘(C) JURISDICTION.—The provisions of 

8 section 706(b) shall apply to any mitigation 

9 agreement entered into or condition imposed 

10 under subparagraph (A).’’; 

11 (5) by inserting after paragraph (3), as redesig12 nated by paragraph (2), the following: 

13 ‘‘(4) RISK-BASED ANALYSIS REQUIRED.— 

14 ‘‘(A) IN GENERAL.—Any determination of 

15 the Committee to suspend a covered transaction 

16 under paragraph (1), to refer a covered trans17 action to the President under paragraph (2), or 

18 to negotiate, enter into or impose, or enforce 

19 any agreement or condition under paragraph 

20 (3)(A) with respect to a covered transaction, 

21 shall be based on a risk-based analysis, con22 ducted by the Committee, of the effects on the 

23 national security of the United States of the 

24 covered transaction, which shall include— 

25 ‘‘(i) an assessment of— 


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1 ‘‘(I) the national security threat 

2 posed by the transaction, taking into 

3 account the analysis conducted by the 

4 Director of National Intelligence 

5 under subsection (b)(4); 

6 ‘‘(II) any national security 

7 vulnerabilities related to the trans8 action; and 

9 ‘‘(III) the potential national secu10 rity consequences of the transaction; 

11 and 

12 ‘‘(ii) an identification of any of the 

13 factors described in subsection (f) that the 

14 transaction may substantially implicate. 

15 ‘‘(B) ACTIONS OF MEMBERS OF THE COM16 MITTEE.— 

17 ‘‘(i) IN GENERAL.—Any member of 

18 the Committee who concludes that a cov19 ered transaction poses an unresolved na20 tional security concern shall recommend to 

21 the Committee that the Committee sus22 pend the transaction under paragraph (1), 

23 refer the transaction to the President 

24 under paragraph (2), or negotiate, enter 

25 into or impose, or enforce any agreement 


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1 or condition under paragraph (3)(A) with 

2 respect to the transaction. In making that 

3 recommendation, the member shall propose 

4 the risk-based analysis required by sub5 paragraph (A). 

6 ‘‘(ii) FAILURE TO REACH CON7 SENSUS.—If the Committee fails to reach 

8 consensus with respect to a recommenda9 tion under clause (i) regarding a covered 

10 transaction, the members of the Committee 

11 who support an alternative recommenda12 tion shall produce— 

13 ‘‘(I) a written statement justi14 fying the alternative recommendation; 

15 and 

16 ‘‘(II) as appropriate, a risk-based 

17 analysis that supports the alternative 

18 recommendation.’’; 

19 (6) in paragraph (5), as redesignated by para20 graph (2), by striking ‘‘(as defined in the National 

21 Security Act of 1947)’’; and 

22 (7) in paragraph (6), as redesignated by para23 graph (2)— 

24 (A) in subparagraph (A)— 


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1 (i) by striking ‘‘paragraph (1)’’ and 

2 inserting ‘‘paragraph (3)’’; and 

3 (ii) by striking the second sentence 

4 and inserting the following: ‘‘The lead 

5 agency may, at its discretion, seek and re6 ceive the assistance of other departments 

7 or agencies in carrying out the purposes of 

8 this paragraph.’’; 

9 (B) in subparagraph (B)— 

10 (i) by striking ‘‘DESIGNATED AGEN11 CY’’ and all that follows through ‘‘The lead 

12 agency in connection’’ and inserting ‘‘DES13 IGNATED AGENCY.—The lead agency in 

14 connection’’; 

15 (ii) by striking clause (ii); and 

16 (iii) by redesignating subclauses (I) 

17 and (II) as clauses (i) and (ii), respec18 tively, and by moving such clauses, as so 

19 redesignated, 2 ems to the left; and 

20 (C) by adding at the end the following: 

21 ‘‘(C) COMPLIANCE PLANS.— 

22 ‘‘(i) IN GENERAL.—In the case of a 

23 covered transaction with respect to which 

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1 cy, as the case may be, shall formulate, ad2 here to, and keep updated a plan for moni3 toring compliance with the agreement. 

4 ‘‘(ii) ELEMENTS.—Each plan required 

5 by clause (i) with respect to an agreement 

6 entered into under paragraph (3)(A) shall 

7 include an explanation of— 

8 ‘‘(I) which member of the Com9 mittee will have primary responsibility 

10 for monitoring compliance with the 

11 agreement; 

12 ‘‘(II) how compliance with the 

13 agreement will be monitored; 

14 ‘‘(III) how frequently compliance 

15 reviews will be conducted; 

16 ‘‘(IV) whether an independent 

17 entity will be utilized under subpara18 graph (E) to conduct compliance re19 views; and 

20 ‘‘(V) what actions will be taken if 

21 the parties fail to cooperate regarding 

22 monitoring compliance with the agree23 ment. 

24 ‘‘(D) EFFECT OF LACK OF COMPLIANCE.— 

25 If, at any time after a mitigation agreement or 


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1 condition is entered into or imposed under 

2 paragraph (3)(A), the Committee or lead agen3 cy, as the case may be, determines that a party 

4 or parties to the agreement or condition are not 

5 in compliance with the terms of the agreement 

6 or condition, the Committee or lead agency 

7 may, in addition to the authority of the Com8 mittee to impose penalties pursuant to sub9 section (h)(3) and to unilaterally initiate a re10 view of any covered transaction under sub11 section (b)(1)(D)(iii)(I)— 

12 ‘‘(i) negotiate a plan of action for the 

13 party or parties to remediate the lack of 

14 compliance, with failure to abide by the 

15 plan or otherwise remediate the lack of 

16 compliance serving as the basis for the 

17 Committee to find a material breach of the 

18 agreement or condition; 

19 ‘‘(ii) require that the party or parties 

20 submit any covered transaction initiated 

21 after the date of the determination of non22 compliance and before the date that is 5 

23 years after the date of the determination 

24 to the Committee for review under sub25 section (b); or 


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1 ‘‘(iii) seek injunctive relief. 

2 ‘‘(E) USE OF INDEPENDENT ENTITIES TO

3 MONITOR COMPLIANCE.—If the parties to an 

4 agreement entered into under paragraph (3)(A) 

5 enter into a contract with an independent entity 

6 from outside the United States Government for 

7 the purpose of monitoring compliance with the 

8 agreement, the Committee shall take such ac9 tion as is necessary to prevent a conflict of in10 terest from arising by ensuring that the inde11 pendent entity owes no fiduciary duty to the 

12 parties. 

13 ‘‘(F) ADDITIONAL COMPLIANCE MEAS14 URES.—Subject to subparagraphs (A) through 

15 (E), the Committee shall develop and agree 

16 upon methods for evaluating compliance with 

17 any agreement entered into or condition im18 posed with respect to a covered transaction that 

19 will allow the Committee to adequately ensure 

20 compliance without unnecessarily diverting 

21 Committee resources from assessing any new 

22 covered transaction for which a written notice 

23 under clause (i) of subsection (b)(1)(C) or dec24 laration under clause (v) of that subsection has 

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1 tion agreement with or imposing a condition on 

2 a party to such covered transaction or any cov3 ered transaction for which a review has been re4 opened for any reason.’’. 

5 SEC. 17. MODIFICATION OF ANNUAL REPORT. 

6 Section 721(m) of the Defense Production Act of 

7 1950 (50 U.S.C. 4565(m)) is amended— 

8 (1) in paragraph (1), by striking ‘‘committee’’ 

9 and all that follows through ‘‘Representatives,’’ and 

10 inserting ‘‘appropriate congressional committees’’; 

11 (2) in paragraph (2)— 

12 (A) by amending subparagraph (A) to read 

13 as follows: 

14 ‘‘(A) A list of all notices filed and all re15 views or investigations of covered transactions 

16 completed during the period, with— 

17 ‘‘(i) a description of the outcome of 

18 each review or investigation, including 

19 whether an agreement was entered into or 

20 condition was imposed under subsection 

21 (l)(3)(A) with respect to the transaction 

22 being reviewed or investigated, and wheth23 er the President took any action under this 

24 section with respect to that transaction; 


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1 ‘‘(ii) basic information on each party 

2 to each such transaction; 

3 ‘‘(iii) the nature of the business activi4 ties or products of the United States busi5 ness with which the transaction was en6 tered into or intended to be entered into; 

7 and 

8 ‘‘(iv) information about any with9 drawal from the process.’’; 

10 (B) by adding at the end the following: 

11 ‘‘(G) Statistics on compliance reviews con12 ducted and actions taken by the Committee 

13 under subsection (l)(6), including subparagraph 

14 (D) of that subsection, during that period and 

15 a description of any actions taken by the Com16 mittee to impose penalties or initiate a unilat17 eral review pursuant to subsection 

18 (b)(1)(D)(iii)(I).’’; 

19 (3) in paragraph (3)— 

20 (A) by striking ‘‘CRITICAL TECHNOLOGIES’’ 

21 and all that follows through ‘‘In order to as22 sist’’ and inserting ‘‘CRITICAL TECH23 NOLOGIES.—In order to assist’’; 

24 (B) by striking subparagraph (B); and 


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1 (C) by redesignating clauses (i) and (ii) as 

2 subparagraphs (A) and (B), respectively, and 

3 by moving such subparagraphs, as so redesig4 nated, 2 ems to the left; and 

5 (4) by adding at the end the following: 

6 ‘‘(4) BIENNIAL INTELLIGENCE COMMUNITY RE7 PORT.— 

8 ‘‘(A) IN GENERAL.—The Director of Na9 tional Intelligence shall transmit to the chair10 person, for inclusion in a classified portion of 

11 each report required to be submitted under 

12 paragraph (1) during calendar year 2018 and 

13 every even-numbered year thereafter, the report 

14 of the interagency group established under sub15 paragraph (C). 

16 ‘‘(B) ELEMENTS.—The report referred to 

17 in subparagraph (A) shall include an identifica18 tion, analysis, and explanation of the following: 

19 ‘‘(i) Any current or projected major 

20 threats to the national security of the 

21 United States with respect to foreign in22 vestment. 

23 ‘‘(ii) Any strategies used by countries 

24 of special concern to utilize foreign invest25 ment to target the acquisition of critical 


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1 technologies, critical materials, or critical 

2 infrastructure. 

3 ‘‘(iii) Any economic espionage efforts 

4 directed at the United States by a foreign 

5 country, particularly a country of special 

6 concern. 

7 ‘‘(C) INTELLIGENCE COMMUNITY INTER8 AGENCY WORKING GROUP.—The Director of 

9 National Intelligence— 

10 ‘‘(i) shall establish an interagency 

11 working group, composed of representa12 tives of elements of the intelligence com13 munity, to prepare the report required 

14 under this paragraph; 

15 ‘‘(ii) shall serve as the chairperson of 

16 the interagency working group; and 

17 ‘‘(iii) may consult with and seek input 

18 from any member of the Committee, as the 

19 Director considers necessary. 

20 ‘‘(5) CLASSIFICATION; AVAILABILITY OF RE21 PORT.— 

22 ‘‘(A) CLASSIFICATION.—All appropriate 

23 portions of the annual report required by para24 graph (1) may be classified. 


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1 ‘‘(B) PUBLIC AVAILABILITY OF UNCLASSI2 FIED VERSION.—An unclassified version of the 

3 report required by paragraph (1), as appro4 priate and consistent with safeguarding na5 tional security and privacy, shall be made avail6 able to the public. Information regarding trade 

7 secrets or business confidential information may 

8 be included in the classified version and may 

9 not be made available to the public in the un10 classified version. 

11 ‘‘(C) EXCEPTIONS TO FREEDOM OF INFOR12 MATION ACT.—The exceptions to subsection (a) 

13 of section 552 of title 5, United States Code, 

14 provided for under subsection (b) of that sec15 tion shall apply with respect to the report re16 quired by paragraph (1). 

17 ‘‘(6) APPROPRIATE CONGRESSIONAL COMMIT18 TEES DEFINED.—In this subsection, the term ‘ap19 propriate congressional committees’ means— 

20 ‘‘(A) the Committee on Banking, Housing, 

21 and Urban Affairs, the Select Committee on In22 telligence, the Committee on Armed Services, 

23 the Committee on the Judiciary, and the Com24 mittee on Homeland Security and Govern25 mental Affairs of the Senate; and 


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1 ‘‘(B) the Committee on Financial Services, 

2 the Permanent Select Committee on Intel3 ligence, the Committee on Armed Services, the 

4 Committee on the Judiciary, and the Com5 mittee on Homeland Security of the House of 

6 Representatives.’’. 

7 SEC. 18. CERTIFICATION OF NOTICES AND INFORMATION. 

8 Section 721(n) of the Defense Production Act of 

9 1950 (50 U.S.C. 4565(n)) is amended— 

10 (1) by redesignating paragraphs (1) and (2) as 

11 subparagraphs (A) and (B), respectively, and by 

12 moving such subparagraphs, as so redesignated, 2 

13 ems to the right; 

14 (2) by striking ‘‘Each notice’’ and inserting the 

15 following: 

16 ‘‘(1) IN GENERAL.—Each notice’’; and 

17 (3) by adding at the end the following: 

18 ‘‘(2) EFFECT OF FAILURE TO SUBMIT.—The 

19 Committee may not complete a review under this 

20 section of a covered transaction and may recommend 

21 to the President that the President suspend or pro22 hibit the transaction or require divestment under 

23 subsection (d) if the Committee determines that a 

24 party to the transaction has— 


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1 ‘‘(A) failed to submit a statement required 

2 by paragraph (1); or 

3 ‘‘(B) included false or misleading informa4 tion in a notice or information described in 

5 paragraph (1) or omitted material information 

6 from such notice or information. 

7 ‘‘(3) APPLICABILITY OF LAW ON FRAUD AND

8 FALSE STATEMENTS.—The Committee shall pre9 scribe regulations expressly providing for the appli10 cation of section 1001 of title 18, United States 

11 Code, to all information provided to the Committee 

12 under this section by any party to a covered trans13 action.’’. 

14 SEC. 19. FUNDING. 

15 Section 721 of the Defense Production Act of 1950 

16 (50 U.S.C. 4565) is amended by adding at the end the 

17 following: 

18 ‘‘(o) FUNDING.— 

19 ‘‘(1) ESTABLISHMENT OF FUND.—There is es20 tablished in the Treasury of the United States a 

21 fund, to be known as the ‘Committee on Foreign In22 vestment in the United States Fund’ (in this sub23 section referred to as the ‘Fund’). 

24 ‘‘(2) APPROPRIATION OF FUNDS FOR THE COM25 MITTEE.—There are authorized to be appropriated 


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1 to the Fund such sums as may be necessary to per2 form the functions of the Committee. 

3 ‘‘(3) FILING FEES.— 

4 ‘‘(A) IN GENERAL.—The Committee may 

5 assess and collect a fee in an amount deter6 mined by the Committee in regulations, to the 

7 extent provided in advance in appropriations 

8 Acts, without regard to section 9701 of title 31, 

9 United States Code, and subject to subpara10 graph (B), with respect to each covered trans11 action for which a written notice is submitted to 

12 the Committee under subsection (b)(1)(C)(i). 

13 ‘‘(B) LIMITATION ON AMOUNT OF FEE.— 

14 The amount of the fee determined under sub15 paragraph (A) with respect to a covered trans16 action described in that subparagraph may not 

17 exceed an amount equal to the lesser of— 

18 ‘‘(i) 1 percent of the value of the 

19 transaction; or 

20 ‘‘(ii) $300,000, adjusted annually for 

21 inflation pursuant to regulations prescribed 

22 by the Committee. 

23 ‘‘(C) DEPOSIT AND AVAILABILITY OF

24 FEES.—Notwithstanding section 3302 of title 


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1 31, United States Code, fees collected under 

2 subparagraph (A) shall— 

3 ‘‘(i) be deposited as offsetting collec4 tions into the Fund for use in carrying out 

5 activities under this section; 

6 ‘‘(ii) to the extent and in the amounts 

7 provided in advance in appropriations Acts, 

8 be available to the chairperson; 

9 ‘‘(iii) remain available until expended; 

10 and 

11 ‘‘(iv) be in addition to any appropria12 tions made available to the members of the 

13 Committee. 

14 ‘‘(4) TRANSFER OF FUNDS.—The chairperson 

15 may transfer any amounts in the Fund to any other 

16 department or agency represented on the Committee 

17 for the purpose of addressing emerging needs in car18 rying out activities under this section. Amounts so 

19 transferred shall be in addition to any other 

20 amounts available to that department or agency for 

21 that purpose.’’. 


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1 SEC. 20. CENTRALIZATION OF CERTAIN COMMITTEE FUNC2 TIONS. 

3 Section 721 of the Defense Production Act of 1950 

4 (50 U.S.C. 4565), as amended by section 19, is further 

5 amended by adding at the end the following: 

6 ‘‘(p) CENTRALIZATION OF CERTAIN COMMITTEE

7 FUNCTIONS.— 

8 ‘‘(1) IN GENERAL.—The chairperson, in con9 sultation with the Committee, may centralize certain 

10 functions of the Committee within the Department 

11 of the Treasury for the purpose of enhancing inter12 agency coordination and collaboration in carrying 

13 out the functions of the Committee under this sec14 tion. 

15 ‘‘(2) FUNCTIONS.—Functions that may be cen16 tralized under paragraph (1) include monitoring 

17 non-notified and non-declared transactions pursuant 

18 to subsection (b)(1)(H), and other functions as de19 termined by the chairperson and the Committee. 

20 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in 

21 this section shall be construed as limiting the au22 thority of any department or agency represented on 

23 the Committee to represent its own interests before 

24 the Committee.’’. 


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1 SEC. 21. UNIFIED BUDGET REQUEST. 

2 Section 721 of the Defense Production Act of 1950 

3 (50 U.S.C. 4565), as amended by sections 19 and 20, is 

4 further amended by adding at the end the following: 

5 ‘‘(q) UNIFIED BUDGET REQUEST.— 

6 ‘‘(1) IN GENERAL.—The President may include, 

7 in the budget of the Department of the Treasury for 

8 a fiscal year (as submitted to Congress with the 

9 budget of the President under section 1105(a) of 

10 title 31, United States Code), a unified request for 

11 funding of all operations under this section con12 ducted by some or all of the departments and agen13 cies represented on the Committee. 

14 ‘‘(2) FORM OF BUDGET REQUEST.—A unified 

15 request under paragraph (1) should be detailed and 

16 include the amounts requested for each department 

17 or agency represented on the Committee to carry out 

18 the functions of that department or agency under 

19 this section.’’. 

20 SEC. 22. SPECIAL HIRING AUTHORITY. 

21 Section 721 of the Defense Production Act of 1950 

22 (50 U.S.C. 4565), as amended by sections 19, 20, and 

23 21, is further amended by adding at the end the following: 

24 ‘‘(r) SPECIAL HIRING AUTHORITY.—The heads of 

25 the departments and agencies represented on the Com26 mittee may appoint, without regard to the provisions of 


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1 sections 3309 through 3318 of title 5, United States Code, 

2 candidates directly to positions in the competitive service 

3 (as defined in section 2102 of that title) in their respective 

4 departments and agencies to administer this section.’’. 

5 SEC. 23. CONFORMING AMENDMENTS. 

6 Section 721 of the Defense Production Act of 1950 

7 (50 U.S.C. 4565), as amended by this Act, is further 

8 amended— 

9 (1) in subsection (b)(2)(B)(i)(I), by striking 

10 ‘‘that threat’’ and inserting ‘‘the risk’’; and 

11 (2) in subsection (d)(4)(A), by striking ‘‘the 

12 foreign interest exercising control’’ and inserting ‘‘a 

13 foreign person that would acquire an interest in a 

14 United States business or its assets as a result of 

15 the covered transaction’’. 

16 SEC. 24. ASSESSMENT OF NEED FOR ADDITIONAL RE17 SOURCES FOR COMMITTEE. 

18 The President shall— 

19 (1) determine whether and to what extent the 

20 expansion of the responsibilities of the Committee on 

21 Foreign Investment in the United States pursuant 

22 to the amendments made by this Act necessitates 

23 additional resources for the Committee and members 

24 of the Committee to perform their functions under 


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1 section 721 of the Defense Production Act of 1950, 

2 as amended by this Act; and 

3 (2) if the President determines that additional 

4 resources are necessary, include in the budget of the 

5 President for fiscal year 2019 submitted to Congress 

6 under section 1105(a) of title 31, United States 

7 Code, a request for such additional resources. 

8 SEC. 25. AUTHORIZATION FOR DEFENSE ADVANCED RE9 SEARCH PROJECTS AGENCY TO LIMIT FOR10 EIGN ACCESS TO TECHNOLOGY THROUGH 

11 CONTRACTS AND GRANT AGREEMENTS. 

12 (a) IN GENERAL.—The Director of the Defense Ad13 vanced Research Projects Agency, or a designee of the Di14 rector, may include in any contract or grant agreement 

15 that the Director enters into with a person, and that is 

16 funded by that Agency, a provision that— 

17 (1) limits access by any foreign person to tech18 nology that is the subject of the contract or grant 

19 agreement under terms defined by the Director, in20 cluding by limiting such access to specific periods of 

21 time; and 

22 (2) in a case in which the person violates the 

23 prohibition described in paragraph (1), requires the 

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1 ceived from the Agency under the contract or grant 

2 agreement. 

3 (b) TREATMENT OF RETURNED FUNDS.—Any 

4 amounts returned to the Defense Advanced Research 

5 Projects Agency under subsection (a)(2) shall be credited 

6 to the same appropriations account from which payment 

7 of such amounts was originally made under the contract 

8 or grant agreement described in subsection (a). 

9 (c) EXERCISE OF AUTHORITY.—The Director, or the 

10 designee of the Director, may exercise the authority pro11 vided by this section without the need for further approval 

12 by, or regulatory implementation within, the Department 

13 of Defense. 

14 SEC. 26. EFFECTIVE DATE. 

15 (a) IMMEDIATE APPLICABILITY OF CERTAIN PROVI16 SIONS.—The following shall take effect on the date of the 

17 enactment of this Act and apply with respect to any cov18 ered transaction the review or investigation of which is ini19 tiated under section 721 of the Defense Production Act 

20 of 1950 on or after such date of enactment: 

21 (1) Sections 4, 6, 8, 12, 13, 14, 15, 18, 20, 21, 

22 22, 24, and 25 and the amendments made by those 

23 sections. 

24 (2) Section 11 and the amendments made by 

25 that section (except for clause (iii) of section 


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1 721(b)(4)(A) of the Defense Production Act of 

2 1950, as added by section 11). 

3 (3) Paragraphs (5)(C)(iv), (7), and (14) of sub4 section (a) of section 721 of the Defense Production 

5 Act of 1950, as amended by section 3. 

6 (4) Section 721(m)(4) of the Defense Produc7 tion Act of 1950, as amended by section 17. 

8 (b) DELAYED APPLICABILITY OF CERTAIN PROVI9 SIONS.— 

10 (1) IN GENERAL.—Any provision of or amend11 ment made by this Act not specified in subsection 

12 (a) shall— 

13 (A) take effect on the date that is 30 days 

14 after publication in the Federal Register of a 

15 determination by the chairperson of the Com16 mittee on Foreign Investment in the United 

17 States that the regulations, organizational 

18 structure, personnel, and other resources nec19 essary to administer the new provisions are in 

20 place; and 

21 (B) apply with respect to any covered 

22 transaction the review or investigation of which 

23 is initiated under section 721 of the Defense 

24 Production Act of 1950 on or after the date de25 scribed in subparagraph (A). 


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1 (2) NONDELEGATION OF DETERMINATION.— 

2 The determination of the chairperson of the Com3 mittee on Foreign Investment in the United States 

4 under paragraph (1)(A) may not be delegated. 

5 (c) AUTHORIZATION FOR PILOT PROGRAMS.— 

6 (1) IN GENERAL.—Beginning on the date of the 

7 enactment of this Act and ending on the date de8 scribed in subsection (b)(1)(A), the Committee on 

9 Foreign Investment in the United States may, at its 

10 discretion, conduct one or more pilot programs to 

11 implement any authority provided pursuant to any 

12 provision of or amendment made by this Act not 

13 specified in subsection (a). 

14 (2) PUBLICATION IN FEDERAL REGISTER.—A 

15 pilot program may not commence until the date that 

16 is 30 days after publication in the Federal Register 

17 of a determination by the chairperson of the Com18 mittee of the scope of and procedures for the pilot 

19 program. That determination may not be delegated. 

20 SEC. 27. SEVERABILITY. 

21 If any provision of this Act or an amendment made 

22 by this Act, or the application of such a provision or 

23 amendment to any person or circumstance, is held to be 

24 invalid, the application of that provision or amendment to 

25 other persons or circumstances and the remainder of the 


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1 provisions of this Act and the amendments made by this 

2 Act, shall not be affected thereby. 

Æ 


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