II 

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. 

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


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

3 ‘‘Foreign Investment Risk Review Modernization Act of 

4 2017’’. 

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

6 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. 

7 SEC. 2. SENSE OF CONGRESS. 

8 It is the sense of Congress that— 

9 (1) foreign investment provides substantial eco10 nomic benefits to the United States, including the 

11 promotion of economic growth, productivity, com12 petitiveness, and job creation, and the majority of 


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1 foreign investment transactions pose little or no risk 

2 to the national security of the United States, espe3 cially when those investments are truly passive in 

4 nature; 

5 (2) maintaining the commitment of the United 

6 States to open and fair investment policy also en7 courages other countries to reciprocate and helps 

8 open new foreign markets for United States busi9 nesses and their products; 

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

11 United States to enthusiastically welcome and sup12 port foreign investment, consistent with the protec13 tion of national security; 

14 (4) at the same time, the national security land15 scape has shifted in recent years, and so have the 

16 nature of the investments that pose the greatest po17 tential risk to national security, which warrants a 

18 modernization of the processes and authorities of the 

19 Committee on Foreign Investment in the United 

20 States; 

21 (5) the Committee on Foreign Investment in 

22 the United States plays a critical role in protecting 

23 the national security of the United States, and, 

24 therefore, it is essential that the member agencies of 

25 the Committee are adequately resourced and able to 


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1 hire appropriately qualified individuals in a timely 

2 manner, and that those individuals’ security clear3 ances are processed as a high priority; 

4 (6) the President should conduct a more robust 

5 international outreach effort to urge and help allies 

6 and partners of the United States to establish proc7 esses that parallel the Committee on Foreign Invest8 ment in the United States to screen foreign invest9 ments for national security risks and to facilitate co10 ordination; and 

11 (7) the President should lead a collaborative ef12 fort with allies and partners of the United States to 

13 develop a new, stronger multilateral export control 

14 regime, aimed to address the unprecedented indus15 trial policies of certain countries of special concern, 

16 including aggressive efforts to acquire United States 

17 technology, and the blending of civil and military 

18 programs. 

19 SEC. 3. DEFINITIONS. 

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

21 1950 (50 U.S.C. 4565(a)) is amended to read as follows: 

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

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

24 ability and opportunity to obtain information, sub25 ject to regulations prescribed by the Committee. 


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

2 ‘Committee’ and ‘chairperson’ mean the Committee 

3 on Foreign Investment in the United States and the 

4 chairperson thereof, respectively. 

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

6 power to determine, direct, or decide important mat7 ters affecting an entity, subject to regulations pre8 scribed by the Committee. 

9 ‘‘(4) COUNTRY OF SPECIAL CONCERN.— 

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

11 special concern’ means a country that poses a 

12 significant threat to the national security inter13 ests of the United States. 

14 ‘‘(B) RULE OF CONSTRUCTION.—This 

15 paragraph shall not be construed to require the 

16 Committee to maintain a list of countries of 

17 special concern. 

18 ‘‘(5) COVERED TRANSACTION.— 

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

20 provided, the term ‘covered transaction’ means 

21 any transaction described in subparagraph (B) 

22 that is proposed, pending, or completed on or 

23 after the date of the enactment of the Foreign 

24 Investment Risk Review Modernization Act of 

25 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 22:35 May 22, 2018 Jkt 079200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6401 E:\BILLS\S2098.RS 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 22:35 May 22, 2018 Jkt 079200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6401 E:\BILLS\S2098.RS 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, 

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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. 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the ‘‘For5 eign Investment Risk Review Modernization Act of 2018’’. 

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

7 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. 


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1 SEC. 2. SENSE OF CONGRESS. 

2 (a) IN GENERAL.—It is the sense of Congress that— 

3 (1) foreign investment provides substantial eco4 nomic benefits to the United States, including the 

5 promotion of economic growth, productivity, competi6 tiveness, and job creation, and the majority of foreign 

7 investment transactions pose little or no risk to the 

8 national security of the United States, especially 

9 when those investments are truly passive in nature; 

10 (2) maintaining the commitment of the United 

11 States to open and fair investment policy also encour12 ages other countries to reciprocate and helps open new 

13 foreign markets for United States businesses and their 

14 products; 

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

16 United States to enthusiastically welcome and sup17 port foreign investment, consistent with the protection 

18 of national security; 

19 (4) at the same time, the national security land20 scape has shifted in recent years, and so has the na21 ture of the investments that pose the greatest potential 

22 risk to national security, which warrants a mod23 ernization of the processes and authorities of the Com24 mittee on Foreign Investment in the United States 

25 and of the United States export control system; 


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1 (5) the Committee on Foreign Investment in the 

2 United States plays a critical role in protecting the 

3 national security of the United States, and, therefore, 

4 it is essential that the member agencies of the Com5 mittee are adequately resourced and able to hire ap6 propriately qualified individuals in a timely manner, 

7 and that those individuals’ security clearances are 

8 processed as a high priority; 

9 (6) the President should conduct a more robust 

10 international outreach effort to urge and help allies 

11 and partners of the United States to establish proc12 esses that parallel the Committee on Foreign Invest13 ment in the United States to screen foreign invest14 ments for national security risks and to facilitate co15 ordination; 

16 (7) the President should lead a collaborative ef17 fort with allies and partners of the United States to 

18 strengthen the multilateral export control regime to 

19 more effectively address the unprecedented industrial 

20 policies of certain countries of special concern, includ21 ing aggressive efforts to acquire United States tech22 nology, and the blending of civil and military pro23 grams; 

24 (8) any penalties imposed by the United States 

25 Government with respect to an individual or entity 


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1 pursuant to a determination that the individual or 

2 entity has violated sanctions imposed by the United 

3 States or the export control laws of the United States 

4 should not be reversed for reasons unrelated to the na5 tional security of the United States; and 

6 (9) the Committee on Foreign Investment in the 

7 United States should continue to review transactions 

8 for the purpose of protecting national security and 

9 should not consider issues of national interest absent 

10 a national security nexus. 

11 (b) SENSE OF CONGRESS ON CONSIDERATION OF COV12 ERED TRANSACTIONS.—It is the sense of Congress that, 

13 when considering national security risks, the Committee on 

14 Foreign Investment in the United States may consider— 

15 (1) whether a transaction involves a country of 

16 special concern that has a demonstrated or declared 

17 strategic goal of acquiring a type of critical tech18 nology or critical infrastructure that would affect 

19 United States technological and industrial leadership 

20 in areas related to national security; 

21 (2) the potential national security-related effects 

22 of the cumulative market share of or a pattern of re23 cent transactions in any one type of infrastructure, 

24 energy asset, critical material, or critical technology 

25 by foreign persons; 


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1 (3) whether any foreign person that would ac2 quire an interest in a United States business or its 

3 assets as a result of a transaction has a history of 

4 complying with United States laws and regulations; 

5 (4) the extent to which a transaction is likely to 

6 expose, either directly or indirectly, personally identi7 fiable information, genetic information, or other sen8 sitive data of United States citizens to access by a 

9 foreign government or foreign person that may exploit 

10 that information in a manner that threatens national 

11 security; and 

12 (5) whether a transaction is likely to have the ef13 fect of exacerbating or creating new cybersecurity 

14 vulnerabilities in the United States or is likely to re15 sult in a foreign government gaining a significant 

16 new capability to engage in malicious cyber-enabled 

17 activities against the United States, including such 

18 activities designed to affect the outcome of any elec19 tion for Federal office. 

20 SEC. 3. DEFINITIONS. 

21 Section 721(a) of the Defense Production Act of 1950 

22 (50 U.S.C. 4565(a)) is amended to read as follows: 

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


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1 ‘‘(1) ACCESS.—The term ‘access’ means the abil2 ity and opportunity to obtain information, subject to 

3 regulations prescribed by the Committee. 

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

5 ‘Committee’ and ‘chairperson’ mean the Committee on 

6 Foreign Investment in the United States and the 

7 chairperson thereof, respectively. 

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

9 power to determine, direct, or decide important mat10 ters affecting an entity, subject to regulations pre11 scribed by the Committee. 

12 ‘‘(4) COUNTRY OF SPECIAL CONCERN.— 

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

14 special concern’ means a country that poses a 

15 significant threat to the national security inter16 ests of the United States. 

17 ‘‘(B) RULE OF CONSTRUCTION.—This para18 graph shall not be construed to require the Com19 mittee to maintain a list of countries of special 

20 concern. 

21 ‘‘(5) COVERED TRANSACTION.— 

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

23 provided, the term ‘covered transaction’ means— 

24 ‘‘(i) any transaction described in sub25 paragraph (B)(i); and 


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1 ‘‘(ii) any transaction described in 

2 clauses (ii) through (v) of subparagraph (B) 

3 that is proposed, pending, or completed on 

4 or after the effective date specified in section 

5 32(b)(1)(A) of the Foreign Investment Risk 

6 Review Modernization Act of 2018. 

7 ‘‘(B) TRANSACTIONS DESCRIBED.—A trans8 action described in this subparagraph is any of 

9 the following: 

10 ‘‘(i) Any merger, acquisition, or take11 over that is proposed or pending after Au12 gust 23, 1988, by or with any foreign per13 son that could result in foreign control of 

14 any United States business. 

15 ‘‘(ii) Subject to subparagraph (C), the 

16 purchase or lease by a foreign person of, or 

17 a concession offered to a foreign person with 

18 respect to, private or public real estate 

19 that— 

20 ‘‘(I) is located in the United 

21 States; 

22 ‘‘(II)(aa) is, is located at, or will 

23 function as part of, a land, air, or 

24 maritime port; or 


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1 ‘‘(bb)(AA) is in close proximity to 

2 a United States military installation 

3 or another facility or property of the 

4 United States Government that is sen5 sitive for reasons relating to national 

6 security; 

7 ‘‘(BB) could reasonably provide 

8 the foreign person the ability to collect 

9 information on activities being con10 ducted at such an installation, facility, 

11 or property; or 

12 ‘‘(CC) could otherwise expose na13 tional security activities at such an in14 stallation, facility, or property to the 

15 risk of foreign surveillance; and 

16 ‘‘(III) meets such other criteria as 

17 the Committee prescribes by regulation, 

18 as long as such criteria do not expand 

19 the categories of real estate to which 

20 this clause applies beyond the cat21 egories described in subclause (II). 

22 ‘‘(iii) Any other investment (other than 

23 a passive investment) by a foreign person in 

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1 ture company that is unaffiliated with the 

2 foreign person, subject to regulations pre3 scribed under subparagraph (C). 

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

5 foreign person has with respect to a United 

6 States business in which the foreign person 

7 has an investment, if that change could re8 sult in— 

9 ‘‘(I) foreign control of the United 

10 States business; or 

11 ‘‘(II) an investment described in 

12 clause (iii). 

13 ‘‘(v) Any other transaction, transfer, 

14 agreement, or arrangement the structure of 

15 which is designed or intended to evade or 

16 circumvent the application of this section, 

17 subject to regulations prescribed by the 

18 Committee. 

19 ‘‘(C) FURTHER DEFINITION THROUGH REG20 ULATIONS.— 

21 ‘‘(i) EXCEPTION FOR CERTAIN REAL

22 ESTATE TRANSACTIONS.—A real estate pur23 chase or lease described in subparagraph 

24 (B)(ii) does not include a lease or purchase 

25 of— 


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1 ‘‘(I) a single ‘housing unit’, as de2 fined by the Census Bureau; or 

3 ‘‘(II) real estate in ‘urbanized 

4 areas’, as defined by the Census Bu5 reau in the most recent census, except 

6 as otherwise prescribed by the Com7 mittee in regulations in consultation 

8 with the Secretary of Defense. 

9 ‘‘(ii) CERTAIN OTHER INVESTMENT.— 

10 The Committee shall prescribe regulations 

11 further defining covered transactions de12 scribed in subparagraph (B)(iii) by ref13 erence to the technology, sector, subsector, 

14 transaction type, or other characteristics of 

15 such transactions. 

16 ‘‘(iii) EXEMPTION FOR TRANSACTIONS

17 FROM IDENTIFIED COUNTRIES.— 

18 ‘‘(I) IN GENERAL.—The Com19 mittee shall, by regulation, define cir20 cumstances and procedures under 

21 which a transaction otherwise de22 scribed in clause (ii) or (iii) of sub23 paragraph (B) is excluded from the 

24 definition of ‘covered transaction’ if 

25 each foreign person that is a party to 


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1 the transaction, and each foreign per2 son with ownership or control over a 

3 party to the transaction, is from (as 

4 determined by the Committee pursuant 

5 to regulations prescribed by the Com6 mittee), a country or part of a country 

7 identified by the Committee for pur8 poses of this clause based on factors es9 tablished by the Committee, such as— 

10 ‘‘(aa) whether, in the sole 

11 judgment of the Committee, the 

12 process of the country for review13 ing the national security effects of 

14 foreign investment and associated 

15 international cooperation effec16 tively safeguards national security 

17 interests the country shares with 

18 the United States; 

19 ‘‘(bb) whether the country is 

20 a member country of the North 

21 Atlantic Treaty Organization or 

22 is designated as a major non23 NATO ally pursuant to section 

24 517 of the Foreign Assistance Act 

25 of 1961 (22 U.S.C. 2321k); 


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1 ‘‘(cc) whether the country ad2 heres to nonproliferation control 

3 regimes, including treaties and 

4 multilateral supply guidelines, 

5 which shall be informed by sources 

6 such as the annual report on ‘Ad7 herence to and Compliance with 

8 Arms Control, Nonproliferation 

9 and Disarmament Agreements 

10 and Commitments’ required by 

11 section 403 of the Arms Control 

12 and Disarmament Act (22 U.S.C. 

13 2593a); 

14 ‘‘(dd) whether excluding 

15 transactions by foreign persons 

16 from the country advances the na17 tional security objectives of the 

18 United States; and 

19 ‘‘(ee) any other factors that 

20 the Committee determines to be 

21 appropriate. 

22 ‘‘(II) RECURRING ASSESSMENT OF

23 IDENTIFIED COUNTRIES.—The Com24 mittee shall reconsider on a regular 

25 basis the identification of countries 


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1 and parts of countries under subclause 

2 (I). 

3 ‘‘(iv) EXCEPTION FOR AIR CAR4 RIERS.—For purposes of subparagraph 

5 (B)(iii), the term ‘other investment’ does not 

6 include an investment involving an air car7 rier, as defined in section 40102(a)(2) of 

8 title 49, United States Code, that holds a 

9 certificate issued under section 41102 of 

10 that title. 

11 ‘‘(v) TRANSFERS OF CERTAIN ASSETS

12 PURSUANT TO BANKRUPTCY PROCEEDINGS

13 OR OTHER DEFAULTS.—The Committee 

14 shall prescribe regulations to clarify that 

15 the term ‘covered transaction’ includes any 

16 transaction described in subparagraph (B) 

17 that arises pursuant to a bankruptcy pro18 ceeding or other form of default on debt. 

19 ‘‘(D) PASSIVE INVESTMENT DEFINED.— 

20 ‘‘(i) IN GENERAL.—For purposes of 

21 subparagraph (B)(iii), the term ‘passive in22 vestment’ means an investment, direct or 

23 indirect, by a foreign person in a United 

24 States critical infrastructure company or 


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1 United States critical technology company 

2 that meets the following criteria: 

3 ‘‘(I) The investment is not de4 scribed in subparagraph (B)(i). 

5 ‘‘(II) The investment does not af6 ford the foreign person— 

7 ‘‘(aa) access to any material 

8 nonpublic technical information 

9 in the possession of the United 

10 States critical infrastructure com11 pany or United States critical 

12 technology company; 

13 ‘‘(bb) membership or observer 

14 rights on the board of directors or 

15 equivalent governing body of the 

16 United States critical infrastruc17 ture company or United States 

18 critical technology company or the 

19 right to nominate an individual 

20 to a position on the board of di21 rectors or equivalent governing 

22 body; or 

23 ‘‘(cc) any involvement, other 

24 than through voting of shares, in 

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1 ing to the management, govern2 ance, or operation of the United 

3 States critical infrastructure com4 pany or United States critical 

5 technology company. 

6 ‘‘(III) The foreign person does not 

7 have a material parallel strategic part8 nership or other material financial re9 lationship, as described in regulations 

10 prescribed by the Committee, with the 

11 United States critical infrastructure 

12 company or United States critical 

13 technology company. 

14 ‘‘(IV) Such other criteria as the 

15 Committee may prescribe by regula16 tion, which shall be consistent with the 

17 criteria specified in subclauses (I), 

18 (II), and (III). 

19 ‘‘(ii) MATERIAL NONPUBLIC TECH20 NICAL INFORMATION DEFINED.—For pur21 poses of clause (i)(II)(aa), the term ‘mate22 rial nonpublic technical information’ has 

23 the meaning given that term in regulations 

24 prescribed by the Committee, except that the 

25 term does not include financial information 


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1 regarding the performance of a United 

2 States critical infrastructure company or 

3 United States critical technology company. 

4 ‘‘(iii) EFFECT OF LEVEL OF OWNER5 SHIP INTEREST.— 

6 ‘‘(I) IN GENERAL.—A determina7 tion of whether an investment is a pas8 sive investment under clause (i) shall 

9 be made without regard to how low the 

10 level of ownership interest a foreign 

11 person would hold or acquire in a 

12 United States critical infrastructure 

13 company or United States critical 

14 technology company would be as a re15 sult of the investment. 

16 ‘‘(II) REGULATIONS.— 

17 ‘‘(aa) IN GENERAL.—The 

18 Committee may prescribe regula19 tions specifying that any invest20 ment (other than an investment 

21 described in item (bb)) greater 

22 than a certain level or amount 

23 shall not be considered a passive 

24 investment under clause (i). 


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1 ‘‘(bb) INVESTMENT DE2 SCRIBED.—An investment de3 scribed in this item is an invest4 ment— 

5 ‘‘(AA) by a foreign per6 son in a United States crit7 ical infrastructure company 

8 or United States critical 

9 technology company through 

10 an investment fund; 

11 ‘‘(BB) that does not re12 sult in the foreign person’s 

13 control of the United States 

14 critical technology or United 

15 States critical infrastructure 

16 company; and 

17 ‘‘(CC) that otherwise 

18 meets the requirements of 

19 clauses (i) and (iv), as appli20 cable. 

21 ‘‘(iv) SPECIFIC CLARIFICATION FOR IN22 VESTMENT FUNDS.— 

23 ‘‘(I) TREATMENT OF CERTAIN IN24 VESTMENTS AS PASSIVE INVEST25 MENTS.—Notwithstanding clause 


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1 (i)(II)(bb) and subject to regulations 

2 prescribed by the Committee, an indi3 rect investment by a foreign person in 

4 a United States critical infrastructure 

5 company or United States critical 

6 technology company through an invest7 ment fund that affords the foreign per8 son (or a designee of the foreign per9 son) membership as a limited partner 

10 on an advisory board or a committee 

11 of the fund shall be considered a pas12 sive investment if— 

13 ‘‘(aa) the fund is managed 

14 exclusively by a general partner, a 

15 managing member, or an equiva16 lent; 

17 ‘‘(bb) the general partner, 

18 managing member, or equivalent 

19 is not a foreign person; 

20 ‘‘(cc) the advisory board or 

21 committee does not have the abil22 ity to approve, disapprove, or oth23 erwise control— 

24 ‘‘(AA) investment deci25 sions of the fund; or 


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1 ‘‘(BB) decisions made 

2 by the general partner, man3 aging member, or equivalent 

4 related to entities in which 

5 the fund is invested; 

6 ‘‘(dd) the foreign person does 

7 not otherwise have the ability to 

8 control the fund, including the au9 thority— 

10 ‘‘(AA) to approve, dis11 approve, or otherwise control 

12 investment decisions of the 

13 fund; 

14 ‘‘(BB) to approve, dis15 approve, or otherwise control 

16 decisions made by the general 

17 partner, managing member, 

18 or equivalent related to enti19 ties in which the fund is in20 vested; or 

21 ‘‘(CC) to unilaterally 

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1 eral partner, managing 

2 member, or equivalent; and 

3 ‘‘(ee) the investment other4 wise meets the requirements of 

5 this subparagraph. 

6 ‘‘(II) TREATMENT OF CERTAIN

7 WAIVERS.— 

8 ‘‘(aa) IN GENERAL.—For the 

9 purposes of items (cc) and (dd) of 

10 subclause (I) and except as pro11 vided in item (bb), a waiver of a 

12 potential conflict of interest, a 

13 waiver of an allocation limita14 tion, or a similar activity, appli15 cable to a transaction pursuant to 

16 the terms of an agreement gov17 erning an investment fund shall 

18 not be considered to constitute 

19 control of investment decisions of 

20 the fund or decisions relating to 

21 entities in which the fund is in22 vested. 

23 ‘‘(bb) EXCEPTION.—The 

24 Committee may prescribe regula25 tions providing for exceptions to 


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1 item (aa) for extraordinary cir2 cumstances. 

3 ‘‘(v) REGULATIONS.—The Committee 

4 shall prescribe regulations providing guid5 ance on the types of transactions that the 

6 Committee considers to be passive invest7 ment. 

8 ‘‘(E) UNITED STATES CRITICAL INFRA9 STRUCTURE COMPANY DEFINED.—For purposes 

10 of this paragraph, the term ‘United States crit11 ical infrastructure company’ means a United 

12 States business that is, owns, operates, or pri13 marily provides services to, an entity or entities 

14 that operate within a critical infrastructure sec15 tor or subsector, as defined by regulations pre16 scribed by the Committee. 

17 ‘‘(F) UNITED STATES CRITICAL TECH18 NOLOGY COMPANY DEFINED.—For purposes of 

19 this paragraph, the term ‘United States critical 

20 technology company’ means a United States 

21 business that produces, designs, tests, manufac22 tures, or develops one or more critical tech23 nologies, or a subset of such technologies, as de24 fined by regulations prescribed by the Com25 mittee. 


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

2 ‘critical infrastructure’ means, subject to regulations 

3 prescribed by the Committee, systems and assets, 

4 whether physical or virtual, so vital to the United 

5 States that the incapacity or destruction of such sys6 tems or assets would have a debilitating impact on 

7 national security. 

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

9 materials’ means physical materials essential to na10 tional security, subject to regulations prescribed by 

11 the Committee. 

12 ‘‘(8) CRITICAL TECHNOLOGIES.— 

13 ‘‘(A) IN GENERAL.—The term ‘critical tech14 nologies’ means technology, components, or tech15 nology items that are essential or could be essen16 tial to national security, identified for purposes 

17 of this section pursuant to regulations prescribed 

18 by the Committee. 

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

20 term ‘critical technologies’ includes the following: 

21 ‘‘(i) Defense articles or defense services 

22 included on the United States Munitions 

23 List set forth in the International Traffic in 

24 Arms Regulations under subchapter M of 


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1 chapter I of title 22, Code of Federal Regu2 lations. 

3 ‘‘(ii) Items included on the Commerce 

4 Control List set forth in Supplement No. 1 

5 to part 774 of the Export Administration 

6 Regulations under subchapter C of chapter 

7 VII of title 15, Code of Federal Regulations, 

8 and controlled— 

9 ‘‘(I) pursuant to multilateral re10 gimes, including for reasons relating to 

11 national security, chemical and bio12 logical weapons proliferation, nuclear 

13 nonproliferation, or missile technology; 

14 or 

15 ‘‘(II) for reasons relating to re16 gional stability or surreptitious listen17 ing. 

18 ‘‘(iii) Specially designed and prepared 

19 nuclear equipment, parts and components, 

20 materials, software, and technology covered 

21 by part 810 of title 10, Code of Federal Reg22 ulations (relating to assistance to foreign 

23 atomic energy activities). 

24 ‘‘(iv) Nuclear facilities, equipment, and 

25 material covered by part 110 of title 10, 


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1 Code of Federal Regulations (relating to ex2 port and import of nuclear equipment and 

3 material). 

4 ‘‘(v) Select agents and toxins covered 

5 by part 331 of title 7, Code of Federal Reg6 ulations, part 121 of title 9 of such Code, or 

7 part 73 of title 42 of such Code. 

8 ‘‘(vi) Emerging and foundational tech9 nologies identified pursuant to section 25(a) 

10 of the Foreign Investment Risk Review 

11 Modernization Act of 2018. 

12 ‘‘(9) FOREIGN GOVERNMENT-CONTROLLED

13 TRANSACTION.—The term ‘foreign government-con14 trolled transaction’ means any covered transaction 

15 that could result in the control of any United States 

16 business by a foreign government or an entity con17 trolled by or acting on behalf of a foreign government. 

18 ‘‘(10) FOREIGN PERSON.— 

19 ‘‘(A) IN GENERAL.—The term ‘foreign per20 son’ means— 

21 ‘‘(i) any foreign national, foreign gov22 ernment, or foreign entity; or 

23 ‘‘(ii) any entity over which control is 

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1 tional, foreign government, or foreign enti2 ty. 

3 ‘‘(B) FOREIGN ENTITY DEFINED.— 

4 ‘‘(i) IN GENERAL.—For purposes of 

5 subparagraph (A) and except as provided in 

6 clause (ii), the term ‘foreign entity’ means 

7 any branch, partnership, group or sub8 group, association, estate, trust, corporation 

9 or division of a corporation, or organiza10 tion organized under the laws of a foreign 

11 country if— 

12 ‘‘(I) the principal place of busi13 ness of the entity is outside the United 

14 States; or 

15 ‘‘(II) the equity securities of the 

16 entity are primarily traded on one or 

17 more foreign exchanges. 

18 ‘‘(ii) EXCEPTION.—For purposes of 

19 subparagraph (A), the term ‘foreign entity’ 

20 does not include an entity that demonstrates 

21 to the Committee that a majority of the eq22 uity interest in the entity is ultimately 

23 owned by United States nationals. 

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

25 ‘intelligence community’ has the meaning given that 


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

2 1947 (50 U.S.C. 3003(4)). 

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

4 means the acquisition of equity interest, including 

5 contingent equity interest, as further defined in regu6 lations prescribed by the Committee. 

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

8 means the agency or agencies designated as the lead 

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

10 ‘‘(14) NATIONAL SECURITY.—The term ‘national 

11 security’ shall be construed so as to include those 

12 issues relating to ‘homeland security’, including its 

13 application to critical infrastructure. 

14 ‘‘(15) PARTY.—The term ‘party’ has the meaning 

15 given that term in regulations prescribed by the Com16 mittee. 

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

18 States’ means the several States, the District of Co19 lumbia, and any territory or possession of the United 

20 States. 

21 ‘‘(17) UNITED STATES BUSINESS.—The term 

22 ‘United States business’ means a person engaged in 

23 interstate commerce in the United States.’’. 


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1 SEC. 4. ACCEPTANCE OF WRITTEN NOTICES. 

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

3 of 1950 (50 U.S.C. 4565(b)(1)(C)(i)) is amended— 

4 (1) by striking ‘‘Any party’’ and inserting the 

5 following: 

6 ‘‘(I) IN GENERAL.—Any party’’; 

7 and 

8 (2) by adding at the end the following: 

9 ‘‘(II) COMMENTS AND ACCEPT10 ANCE.— 

11 ‘‘(aa) IN GENERAL.—Subject 

12 to item (cc), the Committee shall 

13 provide comments on a draft or 

14 final written notice or accept a 

15 final written notice submitted 

16 under subclause (I) with respect 

17 to a covered transaction not later 

18 than the date that is 10 business 

19 days after the date of submission 

20 of the draft or final notice. 

21 ‘‘(bb) COMPLETENESS.—If 

22 the Committee determines that a 

23 draft or final written notice de24 scribed in item (aa) is not com25 plete, the Committee shall notify 

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1 action in writing that the notice 

2 is not complete and provide an 

3 explanation of all material re4 spects in which the notice is in5 complete. 

6 ‘‘(cc) STIPULATIONS RE7 QUIRED.—The timing requirement 

8 under item (aa) shall apply only 

9 in a case in which the parties 

10 stipulate under clause (vi) that 

11 the transaction is a covered trans12 action.’’. 

13 SEC. 5. INCLUSION OF PARTNERSHIP AND SIDE AGREE14 MENTS IN NOTICE. 

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

16 1950 (50 U.S.C. 4565(b)(1)(C)) is amended by adding at 

17 the end the following: 

18 ‘‘(iv) INCLUSION OF PARTNERSHIP AND

19 SIDE AGREEMENTS.—A written notice sub20 mitted under clause (i) by a party to a cov21 ered transaction shall include a copy of any 

22 partnership agreements, integration agree23 ments, or other side agreements relating to 

24 the transaction, including any such agree25 ments relating to the transfer of intellectual 


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1 property, as specified in regulations pre2 scribed by the Committee.’’. 

3 SEC. 6. DECLARATIONS FOR CERTAIN COVERED TRANS4 ACTIONS. 

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

6 1950 (50 U.S.C. 4565(b)(1)(C)), as amended by section 5, 

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

8 ‘‘(v) DECLARATIONS FOR CERTAIN COV9 ERED TRANSACTIONS.— 

10 ‘‘(I) IN GENERAL.—A party to 

11 any covered transaction may submit to 

12 the Committee a declaration with basic 

13 information regarding the transaction 

14 instead of a written notice under 

15 clause (i). 

16 ‘‘(II) REGULATIONS.—The Com17 mittee shall prescribe regulations estab18 lishing requirements for declarations 

19 submitted under this clause. In pre20 scribing such regulations, the Com21 mittee shall ensure that such declara22 tions are submitted as abbreviated no23 tifications that would not generally ex24 ceed 5 pages in length. 


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1 ‘‘(III) COMMITTEE RESPONSE TO

2 DECLARATION.— 

3 ‘‘(aa) IN GENERAL.—Upon 

4 receiving a declaration under this 

5 clause with respect to a covered 

6 transaction, the Committee may, 

7 at the discretion of the Com8 mittee— 

9 ‘‘(AA) request that the 

10 parties to the transaction file 

11 a written notice under clause 

12 (i); 

13 ‘‘(BB) inform the par14 ties to the transaction that 

15 the Committee is not able to 

16 complete action under this 

17 section with respect to the 

18 transaction on the basis of 

19 the declaration and that the 

20 parties may file a written 

21 notice under clause (i) to 

22 seek written notification from 

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1 tion under this section with 

2 respect to the transaction; 

3 ‘‘(CC) initiate a unilat4 eral review of the transaction 

5 under subparagraph (D); or 

6 ‘‘(DD) notify the parties 

7 in writing that the Com8 mittee has completed all ac9 tion under this section with 

10 respect to the transaction. 

11 ‘‘(bb) TIMING.—The Com12 mittee shall take action under 

13 item (aa) not later than 30 days 

14 after receiving a declaration 

15 under this clause. 

16 ‘‘(cc) RULE OF CONSTRUC17 TION.—Nothing in this subclause 

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

19 be construed to affect the author20 ity of the President or the Com21 mittee to take any action author22 ized by this section with respect to 

23 a covered transaction. 

24 ‘‘(IV) MANDATORY DECLARA25 TIONS.— 


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1 ‘‘(aa) REGULATIONS.—The 

2 Committee shall prescribe regula3 tions specifying the types of cov4 ered transactions for which the 

5 Committee requires a declaration 

6 under this subclause. 

7 ‘‘(bb) CERTAIN COVERED

8 TRANSACTIONS WITH FOREIGN

9 GOVERNMENT INTERESTS.— 

10 ‘‘(AA) IN GENERAL.— 

11 Except as provided in 

12 subitem (BB), the parties to 

13 a covered transaction shall 

14 submit a declaration de15 scribed in subclause (I) with 

16 respect to the transaction if 

17 the transaction involves an 

18 investment that results in the 

19 acquisition, directly or indi20 rectly, of a substantial inter21 est in a United States crit22 ical infrastructure company 

23 or United States critical 

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1 eign government has, directly 

2 or indirectly, a substantial 

3 interest. 

4 ‘‘(BB) EXCEPTION.— 

5 The submission of a declara6 tion described in subclause 

7 (I) shall not be required with 

8 respect to a transaction de9 scribed in subitem (AA) if 

10 each foreign person that is a 

11 party to the transaction, and 

12 each foreign person with 

13 ownership or control over a 

14 party to the transaction, is 

15 from a country or part of a 

16 country identified by the 

17 Committee under subsection 

18 (a)(5)(C)(iii). 

19 ‘‘(CC) SUBSTANTIAL IN20 TEREST DEFINED.—In this 

21 item, the term ‘substantial 

22 interest’ has the meaning 

23 given that term in regula24 tions which the Committee 

25 shall prescribe. In developing 


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1 those regulations, the Com2 mittee shall consider the 

3 means by which a foreign 

4 government could influence 

5 the actions of a foreign per6 son, including through board 

7 membership, ownership in8 terest, or shareholder rights. 

9 An interest that is a passive 

10 investment (as defined in 

11 subsection (a)(5)(D)) or that 

12 is less than a 10 percent vot13 ing interest shall not be con14 sidered a substantial interest. 

15 ‘‘(cc) OTHER DECLARATIONS

16 REQUIRED BY COMMITTEE.—The 

17 Committee shall require the sub18 mission of a declaration described 

19 in subclause (I) with respect to 

20 any covered transaction identified 

21 under regulations prescribed by 

22 the Committee for purposes of this 

23 item, at the discretion of the Com24 mittee and based on appropriate 

25 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; 

13 ‘‘(CC) the difficulty of 

14 obtaining information on the 

15 type of covered transaction 

16 through other means; and 

17 ‘‘(DD) the difficulty of 

18 obtaining information on the 

19 ultimate ownership of the 

20 foreign person that is a 

21 party to the transaction. 

22 ‘‘(dd) EXCEPTION.—The sub23 mission of a declaration described 

24 in subclause (I) shall not be re25 quired pursuant to this subclause 


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1 with respect to an investment by 

2 an investment fund if— 

3 ‘‘(AA) the fund is man4 aged exclusively by a general 

5 partner, a managing mem6 ber, or an equivalent; 

7 ‘‘(BB) the general part8 ner, managing member, or 

9 equivalent is not a foreign 

10 person; and 

11 ‘‘(CC) the investment 

12 fund satisfies, with respect to 

13 any foreign person with 

14 membership as a limited 

15 partner on an advisory 

16 board or a committee of the 

17 fund, the criteria specified in 

18 items (cc) and (dd) of sub19 section (a)(5)(D)(iv). 

20 ‘‘(ee) SUBMISSION OF WRIT21 TEN NOTICE AS AN ALTER22 NATIVE.—Parties to a covered 

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1 clause may instead elect to submit 

2 a written notice under clause (i). 

3 ‘‘(ff) TIMING OF SUBMIS4 SION.— 

5 ‘‘(AA) IN GENERAL.—A 

6 declaration required to be 

7 submitted with respect to a 

8 covered transaction by this 

9 subclause shall be submitted 

10 not later than 45 days before 

11 the completion of the trans12 action. 

13 ‘‘(BB) WRITTEN NO14 TICE.—If, pursuant to item 

15 (ee), the parties to a covered 

16 transaction elect to submit a 

17 written notice under clause 

18 (i) instead of a declaration 

19 under this subclause, the 

20 written notice shall be filed 

21 not later than 90 days before 

22 the completion of the trans23 action. 

24 ‘‘(gg) PENALTIES.—The 

25 Committee may impose a penalty 


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1 pursuant to subsection (h)(3) with 

2 respect to a party that fails to 

3 comply with this subclause.’’. 

4 SEC. 7. STIPULATIONS REGARDING TRANSACTIONS. 

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

6 1950 (50 U.S.C. 4565(b)(1)(C)), as amended by section 6, 

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

8 ‘‘(vi) STIPULATIONS REGARDING

9 TRANSACTIONS.— 

10 ‘‘(I) IN GENERAL.—In a written 

11 notice submitted under clause (i) or a 

12 declaration submitted under clause (v) 

13 with respect to a transaction, a party 

14 to the transaction may— 

15 ‘‘(aa) stipulate that the 

16 transaction is a covered trans17 action; and 

18 ‘‘(bb) if the party stipulates 

19 that the transaction is a covered 

20 transaction under item (aa), stip21 ulate that the transaction is a for22 eign government-controlled trans23 action. 

24 ‘‘(II) BASIS FOR STIPULATION.— 

25 A written notice submitted under 


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1 clause (i) or a declaration submitted 

2 under clause (v) that includes a stipu3 lation under subclause (I) shall include 

4 a description of the basis for the stipu5 lation.’’. 

6 SEC. 8. AUTHORITY FOR UNILATERAL INITIATION OF RE7 VIEWS. 

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

9 1950 (50 U.S.C. 4565(b)(1)) is amended— 

10 (1) by redesignating subparagraphs (E) and (F) 

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

12 (2) in subparagraph (D)— 

13 (A) in the matter preceding clause (i), by 

14 striking ‘‘subparagraph (F)’’ and inserting ‘‘sub15 paragraph (G)’’; 

16 (B) in clause (i), by inserting ‘‘(other than 

17 a covered transaction described in subparagraph 

18 (E))’’ after ‘‘any covered transaction’’; 

19 (C) by striking clause (ii) and inserting the 

20 following: 

21 ‘‘(ii) any covered transaction described 

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

23 transaction submitted false or misleading 

24 material information to the Committee in 

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1 ation of the transaction or omitted material 

2 information, including material documents, 

3 from information submitted to the Com4 mittee; or’’; and 

5 (D) in clause (iii)— 

6 (i) in the matter preceding subclause 

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

8 that has previously been reviewed or inves9 tigated under this section,’’ and inserting 

10 ‘‘any covered transaction described in sub11 paragraph (E),’’; 

12 (ii) in subclause (I), by striking ‘‘in13 tentionally’’; 

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

15 intentional’’ and inserting ‘‘a’’; and 

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

17 ‘‘adequate and appropriate’’ before ‘‘rem18 edies or enforcement tools’’; and 

19 (3) by inserting after subparagraph (D) the fol20 lowing: 

21 ‘‘(E) COVERED TRANSACTIONS DE22 SCRIBED.—A covered transaction is described in 

23 this subparagraph if— 

24 ‘‘(i) the Committee has informed the 

25 parties to the transaction in writing that 


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1 the Committee has completed all action 

2 under this section with respect to the trans3 action; or 

4 ‘‘(ii) the President has announced a 

5 decision not to exercise the President’s au6 thority under subsection (d) with respect to 

7 the transaction.’’. 

8 SEC. 9. TIMING FOR REVIEWS AND INVESTIGATIONS. 

9 Section 721(b) of the Defense Production Act of 1950 

10 (50 U.S.C. 4565(b)), as amended by section 8, is further 

11 amended— 

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

13 inserting ‘‘45’’; 

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

15 (C) and inserting the following: 

16 ‘‘(C) TIMING.— 

17 ‘‘(i) IN GENERAL.—Except as provided 

18 in clause (ii), any investigation under sub19 paragraph (A) shall be completed before the 

20 end of the 45-day period beginning on the 

21 date on which the investigation commenced. 

22 ‘‘(ii) EXTENSION FOR EXTRAORDINARY

23 CIRCUMSTANCES.— 

24 ‘‘(I) IN GENERAL.—In extraor25 dinary circumstances (as defined by 


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1 the Committee in regulations), the 

2 chairperson may, at the request of the 

3 head of the lead agency, extend an in4 vestigation under subparagraph (A) for 

5 one 30-day period. 

6 ‘‘(II) NONDELEGATION.—The au7 thority of the chairperson and the head 

8 of the lead agency referred to in sub9 clause (I) may not be delegated to any 

10 person other than the Deputy Secretary 

11 of the Treasury or the deputy head (or 

12 equivalent thereof) of the lead agency, 

13 as the case may be. 

14 ‘‘(III) NOTIFICATION TO PAR15 TIES.—If the Committee extends the 

16 deadline under subclause (I) with re17 spect to a covered transaction, the 

18 Committee shall notify the parties to 

19 the transaction of the extension.’’; and 

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

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

22 APPROPRIATIONS.—Any deadline or time limitation 

23 under this subsection shall be tolled during a lapse in 

24 appropriations.’’. 


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1 SEC. 10. MONITORING OF NON-NOTIFIED AND NON-DE2 CLARED TRANSACTIONS. 

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

4 1950 (50 U.S.C. 4565(b)(1)), as amended by sections 8 and 

5 9, is further amended by adding at the end the following: 

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

7 NON-DECLARED TRANSACTIONS.—The Committee 

8 shall establish a mechanism to identify covered 

9 transactions for which— 

10 ‘‘(i) a notice under clause (i) of sub11 paragraph (C) or a declaration under 

12 clause (v) of that subparagraph is not sub13 mitted to the Committee; and 

14 ‘‘(ii) information is reasonably avail15 able.’’. 

16 SEC. 11. SUBMISSION OF CERTIFICATIONS TO CONGRESS. 

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

18 1950 (50 U.S.C. 4565(b)(3)(C)) is amended— 

19 (1) in clause (iii)— 

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

21 Select Committee on Intelligence’’ after ‘‘Urban 

22 Affairs’’; and 

23 (B) in subclause (IV), by inserting ‘‘and the 

24 Permanent Select Committee on Intelligence’’ 

25 after ‘‘Financial Services’’; 


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

2 inserting the following: 

3 ‘‘(II) DELEGATION OF CERTIFI4 CATIONS.— 

5 ‘‘(aa) IN GENERAL.—Subject 

6 to item (bb), the chairperson, in 

7 consultation with the Committee, 

8 may determine the level of official 

9 to whom the signature require10 ment under subclause (I) for the 

11 chairperson and the head of the 

12 lead agency may be delegated. The 

13 level of official to whom the signa14 ture requirement may be delegated 

15 may differ based on any factor re16 lating to a transaction that the 

17 chairperson, in consultation with 

18 the Committee, deems appro19 priate, including the type or value 

20 of the transaction. 

21 ‘‘(bb) LIMITATION ON DELE22 GATION WITH RESPECT TO CER23 TAIN TRANSACTIONS.—The signa24 ture requirement under subclause 

25 (I) may be delegated not below the 


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1 level of the Assistant Secretary of 

2 the Treasury or an equivalent of3 ficial of the lead agency in the 

4 case of a covered transaction— 

5 ‘‘(AA) assessed by the 

6 Director of National Intel7 ligence under paragraph (4) 

8 as more likely than not to 

9 threaten the national secu10 rity of the United States; 

11 ‘‘(BB) with respect to 

12 which the Committee con13 ducts an investigation under 

14 paragraph (2); or 

15 ‘‘(CC) with respect to 

16 which a request is made by 

17 an official at the Deputy As18 sistant Secretary or Assistant 

19 Secretary level of an agency 

20 or department represented on 

21 the Committee, or an equiva22 lent thereof, that the trans23 action be reviewed by the As24 sistant Secretary of the 


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1 Treasury and an equivalent 

2 official of the lead agency. 

3 ‘‘(cc) LIMITATION ON DELE4 GATION WITH RESPECT TO OTHER

5 TRANSACTIONS.—In the case of 

6 any covered transaction not de7 scribed in item (bb), the signature 

8 requirement under subclause (I) 

9 may be delegated not below the 

10 level of a Deputy Assistant Sec11 retary of the Treasury or an 

12 equivalent official of the lead 

13 agency.’’; and 

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

15 ‘‘(v) AUTHORITY TO CONSOLIDATE

16 DOCUMENTS.—Instead of transmitting a 

17 separate certified notice or certified report 

18 under subparagraph (A) or (B) with respect 

19 to each covered transaction, the Committee 

20 may, on a monthly basis, transmit such no21 tices and reports in a consolidated docu22 ment to the Members of Congress specified 

23 in clause (iii).’’. 


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1 SEC. 12. ANALYSIS BY DIRECTOR OF NATIONAL INTEL2 LIGENCE. 

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

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

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

6 the following: 

7 ‘‘(A) ANALYSIS REQUIRED.— 

8 ‘‘(i) IN GENERAL.—Except as provided 

9 in subparagraph (B), the Director of Na10 tional Intelligence shall expeditiously carry 

11 out a thorough analysis of any threat to the 

12 national security of the United States posed 

13 by any covered transaction, which shall in14 clude the identification of any recognized 

15 gaps in the collection of intelligence relevant 

16 to the analysis. 

17 ‘‘(ii) VIEWS OF INTELLIGENCE COMMU18 NITY.—The Director shall seek and incor19 porate into the analysis required by clause 

20 (i) the views of all affected or appropriate 

21 agencies of the intelligence community with 

22 respect to the transaction. 

23 ‘‘(iii) UPDATES.—At the request of the 

24 lead agency, the Director shall update the 

25 analysis conducted under clause (i) with re26 spect to a covered transaction with respect 


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1 to which an agreement was entered into 

2 under subsection (l)(3)(A). 

3 ‘‘(iv) INDEPENDENCE AND OBJEC4 TIVITY.—The Committee shall ensure that 

5 its processes under this section preserve the 

6 ability of the Director to conduct analysis 

7 under clause (i) that is independent, objec8 tive, and consistent with all applicable di9 rectives, policies, and analytic tradecraft 

10 standards of the intelligence community.’’; 

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

12 and (D) as subparagraphs (C), (D), and (E), respec13 tively; 

14 (3) by inserting after subparagraph (A) the fol15 lowing: 

16 ‘‘(B) BASIC THREAT INFORMATION.— 

17 ‘‘(i) IN GENERAL.—The Director of Na18 tional Intelligence may provide the Com19 mittee with basic information regarding 

20 any threat to the national security of the 

21 United States posed by a covered trans22 action described in clause (ii) instead of 

23 conducting the analysis required by sub24 paragraph (A). 


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1 ‘‘(ii) COVERED TRANSACTION DE2 SCRIBED.—A covered transaction is de3 scribed in this clause if— 

4 ‘‘(I) the transaction is described 

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

6 ‘‘(II) the Director of National In7 telligence has completed an analysis 

8 pursuant to subparagraph (A) involv9 ing each foreign person that is a party 

10 to the transaction during the 12 

11 months preceding the review or inves12 tigation of the transaction under this 

13 section; or 

14 ‘‘(III) the transaction otherwise 

15 meets criteria agreed upon by the Com16 mittee and the Director for purposes of 

17 this subparagraph.’’; 

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

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

20 and 

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

22 ‘‘(F) ASSESSMENT OF OPERATIONAL IM23 PACT.—The Director may provide to the Com24 mittee an assessment, separate from the analyses 

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1 ational impact of a covered transaction on the 

2 intelligence community and a description of any 

3 actions that have been or will be taken to miti4 gate any such impact. 

5 ‘‘(G) SUBMISSION TO CONGRESS.—The 

6 Committee shall submit the analysis required by 

7 subparagraph (A) with respect to a covered 

8 transaction to the Select Committee on Intel9 ligence of the Senate and the Permanent Select 

10 Committee on Intelligence of the House of Rep11 resentatives upon the conclusion of action under 

12 this section (other than compliance plans under 

13 subsection (l)(6)) with respect to the trans14 action.’’. 

15 SEC. 13. INFORMATION SHARING. 

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

17 (50 U.S.C. 4565(c)) is amended— 

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

19 the following: 

20 ‘‘(1) IN GENERAL.—Except as provided in para21 graph (2), any information’’; 

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

23 all that follows and inserting a period; and 

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


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1 ‘‘(2) EXCEPTIONS.—Paragraph (1) shall not pro2 hibit the disclosure of the following: 

3 ‘‘(A) Information relevant to any adminis4 trative or judicial action or proceeding. 

5 ‘‘(B) Information to Congress or any duly 

6 authorized committee or subcommittee of Con7 gress. 

8 ‘‘(C) Information to any domestic or foreign 

9 governmental entity, under the direction of the 

10 chairperson, to the extent necessary for national 

11 security purposes and pursuant to appropriate 

12 confidentiality and classification arrangements. 

13 ‘‘(D) Information that the parties have con14 sented to be disclosed to third parties. 

15 ‘‘(3) COOPERATION WITH ALLIES AND PART16 NERS.— 

17 ‘‘(A) IN GENERAL.—The chairperson, in 

18 consultation with other members of the Com19 mittee, should establish a formal process for the 

20 exchange of information under paragraph (2)(C) 

21 with governments of countries that are allies or 

22 partners of the United States, in the discretion 

23 of the chairperson, to protect the national secu24 rity of the United States and those countries. 


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1 ‘‘(B) REQUIREMENTS.—The process estab2 lished under subparagraph (A) should, in the 

3 discretion of the chairperson— 

4 ‘‘(i) be designed to facilitate the har5 monization of action with respect to trends 

6 in investment and technology that could 

7 pose risks to the national security of the 

8 United States and countries that are allies 

9 or partners of the United States; 

10 ‘‘(ii) provide for the sharing of infor11 mation with respect to specific technologies 

12 and entities acquiring such technologies as 

13 appropriate to ensure national security; 

14 and 

15 ‘‘(iii) include consultations and meet16 ings with representatives of the governments 

17 of such countries on a recurring basis.’’. 

18 SEC. 14. ACTION BY THE PRESIDENT. 

19 (a) IN GENERAL.—Section 721(d) of the Defense Pro20 duction Act of 1950 (50 U.S.C. 4565(d)) is amended— 

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

22 following: 

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

24 President may, with respect to a covered transaction 

25 that threatens to impair the national security of the 


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1 United States, take such action for such time as the 

2 President considers appropriate to suspend or pro3 hibit the transaction or to require divestment.’’; and 

4 (2) in paragraph (2), by striking ‘‘not later than 

5 15 days’’ and all that follows and inserting the fol6 lowing: ‘‘with respect to a covered transaction not 

7 later than 15 days after the earlier of— 

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

9 the transaction under subsection (b) is com10 pleted; or 

11 ‘‘(B) the date on which the Committee oth12 erwise refers the transaction to the President 

13 under subsection (l)(2).’’. 

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

15 Defense Production Act of 1950 (50 U.S.C. 4565(h)(3)(A)) 

16 is amended by striking ‘‘including any mitigation’’ and all 

17 that follows through ‘‘subsection (l)’’ and inserting ‘‘includ18 ing any mitigation agreement entered into, conditions im19 posed, or order issued pursuant to this section’’. 

20 SEC. 15. JUDICIAL REVIEW. 

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

22 (50 U.S.C. 4565(e)) is amended— 

23 (1) by striking ‘‘The actions’’ and inserting the 

24 following: 

25 ‘‘(1) IN GENERAL.—The actions’’; and 


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

2 ‘‘(2) CIVIL ACTIONS.—A civil action challenging 

3 an action or finding of the Committee under this sec4 tion may be brought only in the United States Court 

5 of Appeals for the District of Columbia Circuit. 

6 ‘‘(3) PROCEDURES FOR REVIEW OF PRIVILEGED

7 INFORMATION.—If a civil action challenging an ac8 tion or finding of the Committee under this section is 

9 brought, and the court determines that protected in10 formation in the administrative record, including 

11 classified, sensitive law enforcement, sensitive secu12 rity, or other information subject to privilege or pro13 tections under any provision of law, is necessary to 

14 resolve the challenge, that information shall be sub15 mitted ex parte and in camera to the court and the 

16 court shall maintain that information under seal. 

17 ‘‘(4) APPLICABILITY OF USE OF INFORMATION

18 PROVISIONS.—The use of information provisions of 

19 sections 106, 305, 405, and 706 of the Foreign Intel20 ligence Surveillance Act of 1978 (50 U.S.C. 1806, 

21 1825, 1845, and 1881e) shall not apply in a civil ac22 tion brought under this subsection.’’. 


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1 SEC. 16. MEMBERSHIP AND STAFF OF COMMITTEE. 

2 (a) HIRING AUTHORITY.—Section 721(k) of the De3 fense Production Act of 1950 (50 U.S.C. 4565(k)) is amend4 ed by striking paragraph (4) and inserting the following: 

5 ‘‘(4) HIRING AUTHORITY.— 

6 ‘‘(A) SENIOR OFFICIALS.— 

7 ‘‘(i) IN GENERAL.—Each member of 

8 the Committee shall designate an Assistant 

9 Secretary, or an equivalent official, who is 

10 appointed by the President, by and with the 

11 advice and consent of the Senate, to carry 

12 out such duties related to the Committee as 

13 the member of the Committee may delegate. 

14 ‘‘(ii) DEPARTMENT OF THE TREAS15 URY.—In addition to officials of the De16 partment of the Treasury authorized under 

17 section 301 of title 31, United States Code, 

18 or any other provision of law, there are au19 thorized at the Department of the Treasury, 

20 to carry out such duties related to the Com21 mittee as the Secretary of the Treasury may 

22 delegate, consistent with this section and re23 flecting the expanded authorities of the 

24 Committee and the role of the Department 

25 of the Treasury in implementing those au26 thorities under the amendments made by 


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1 the Foreign Investment Risk Review Mod2 ernization Act of 2018, the following: 

3 ‘‘(I) One official, who is ap4 pointed by the President, by and with 

5 the advice and consent of the Senate, 

6 who shall be compensated at a rate not 

7 to exceed the rate of basic pay payable 

8 for level III of the Executive Schedule 

9 under section 5314 of title 5, United 

10 States Code. 

11 ‘‘(II) One official, who is ap12 pointed by the President, by and with 

13 the advice and consent of the Senate, 

14 who shall be compensated at a rate not 

15 to exceed the rate of basic pay payable 

16 for level IV of the Executive Schedule 

17 under section 5315 of title 5, United 

18 States Code. 

19 ‘‘(B) SPECIAL HIRING AUTHORITY.—The 

20 heads of the departments and agencies rep21 resented on the Committee may appoint, without 

22 regard to the provisions of sections 3309 through 

23 3318 of title 5, United States Code, candidates 

24 directly to positions in the competitive service 

25 (as defined in section 2102 of that title) in their 


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1 respective departments and agencies to admin2 ister this section.’’. 

3 (b) PROCEDURES FOR RECUSAL OF MEMBERS OF

4 COMMITTEE FOR CONFLICTS OF INTEREST.—Not later than 

5 90 days after the date of the enactment of this Act, the Com6 mittee on Foreign Investment in the United States shall— 

7 (1) establish procedures for the recusal of any 

8 member of the Committee that has a conflict of inter9 est with respect to a covered transaction (as defined 

10 in section 721 of the Defense Production Act of 1950, 

11 as amended by section 3); 

12 (2) submit to the Committee on Banking, Hous13 ing, and Urban Affairs of the Senate and the Com14 mittee on Financial Services of the House of Rep15 resentatives a report describing those procedures; and 

16 (3) brief the committees specified in paragraph 

17 (1) on the report required by paragraph (2). 

18 SEC. 17. ACTIONS BY THE COMMITTEE TO ADDRESS NA19 TIONAL SECURITY RISKS. 

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

21 (50 U.S.C. 4565(l)) is amended— 

22 (1) in the subsection heading, by striking ‘‘MITI23 GATION, TRACKING, AND POSTCONSUMMATION MONI24 TORING AND ENFORCEMENT’’ and inserting ‘‘ACTIONS


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1 BY THE COMMITTEE TO ADDRESS NATIONAL SECU2 RITY RISKS’’; 

3 (2) by redesignating paragraphs (1), (2), and (3) 

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

5 (3) by inserting before paragraph (3), as redesig6 nated by paragraph (2), the following: 

7 ‘‘(1) SUSPENSION OF TRANSACTIONS.—The Com8 mittee, acting through the chairperson, may suspend 

9 a proposed or pending covered transaction that may 

10 pose a risk to the national security of the United 

11 States for such time as the covered transaction is 

12 under review or investigation under subsection (b). 

13 ‘‘(2) REFERRAL TO PRESIDENT.—The Committee 

14 may, at any time during the review or investigation 

15 of a covered transaction under subsection (b), com16 plete the action of the Committee with respect to the 

17 transaction and refer the transaction to the President 

18 for action pursuant to subsection (d).’’; 

19 (4) in paragraph (3), as redesignated by para20 graph (2)— 

21 (A) in subparagraph (A)— 

22 (i) in the subparagraph heading, by 

23 striking ‘‘IN GENERAL’’ and inserting 

24 ‘‘AGREEMENTS AND CONDITIONS’’; 


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

2 inserting the following: 

3 ‘‘(i) IN GENERAL.—The Committee’’; 

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

5 ‘‘risk’’; and 

6 (iv) by adding at the end the following: 

7 ‘‘(ii) ABANDONMENT OF TRANS8 ACTIONS.—If a party to a covered trans9 action has voluntarily chosen to abandon 

10 the transaction, the Committee or lead 

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

12 enter into or impose, and enforce any agree13 ment or condition with any party to the 

14 covered transaction for purposes of effec15 tuating such abandonment and mitigating 

16 any risk to the national security of the 

17 United States that arises as a result of the 

18 covered transaction. 

19 ‘‘(iii) AGREEMENTS AND CONDITIONS

20 RELATING TO COMPLETED TRANSACTIONS.— 

21 The Committee or lead agency, as the case 

22 may be, may negotiate, enter into or im23 pose, and enforce any agreement or condi24 tion with any party to a completed covered 

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1 terim risk to the national security of the 

2 United States that may arise as a result of 

3 the covered transaction until such time that 

4 the Committee has completed action pursu5 ant to subsection (b) or the President has 

6 taken action pursuant to subsection (d) 

7 with respect to the transaction.’’; and 

8 (B) by striking subparagraph (B) and in9 serting the following: 

10 ‘‘(B) LIMITATIONS.—An agreement may not 

11 be entered into or condition imposed under sub12 paragraph (A) with respect to a covered trans13 action unless the Committee determines that the 

14 agreement or condition resolves the national se15 curity concerns posed by the transaction, taking 

16 into consideration whether the agreement or con17 dition is reasonably calculated to— 

18 ‘‘(i) be effective; 

19 ‘‘(ii) allow for compliance with the 

20 terms of the agreement or condition in an 

21 appropriately verifiable way; and 

22 ‘‘(iii) enable effective monitoring of 

23 compliance with and enforcement of the 

24 terms of the agreement or condition. 


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1 ‘‘(C) JURISDICTION.—The provisions of sec2 tion 706(b) shall apply to any mitigation agree3 ment entered into or condition imposed under 

4 subparagraph (A).’’; 

5 (5) by inserting after paragraph (3), as redesig6 nated by paragraph (2), the following: 

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

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

9 the Committee to suspend a covered transaction 

10 under paragraph (1), to refer a covered trans11 action to the President under paragraph (2), or 

12 to negotiate, enter into or impose, or enforce any 

13 agreement or condition under paragraph (3)(A) 

14 with respect to a covered transaction, shall be 

15 based on a risk-based analysis, conducted by the 

16 Committee, of the effects on the national security 

17 of the United States of the covered transaction, 

18 which shall include an assessment of the threat, 

19 vulnerabilities, and consequences to national se20 curity related to the transaction. 

21 ‘‘(B) ACTIONS OF MEMBERS OF THE COM22 MITTEE.— 

23 ‘‘(i) IN GENERAL.—Any member of the 

24 Committee who concludes that a covered 

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1 curity concern shall recommend to the Com2 mittee that the Committee suspend the 

3 transaction under paragraph (1), refer the 

4 transaction to the President under para5 graph (2), or negotiate, enter into or im6 pose, or enforce any agreement or condition 

7 under paragraph (3)(A) with respect to the 

8 transaction. In making that recommenda9 tion, the member shall propose or contribute 

10 to the risk-based analysis required by sub11 paragraph (A). 

12 ‘‘(ii) FAILURE TO REACH CON13 SENSUS.—If the Committee fails to reach 

14 consensus with respect to a recommendation 

15 under clause (i) regarding a covered trans16 action, the members of the Committee who 

17 support an alternative recommendation 

18 shall produce— 

19 ‘‘(I) a written statement justi20 fying the alternative recommendation; 

21 and 

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

23 analysis that supports the alternative 

24 recommendation. 


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1 ‘‘(C) DEFINITIONS.—For purposes of sub2 paragraph (A), the terms ‘threat’, 

3 ‘vulnerabilities’, and ‘consequences to national 

4 security’ shall have the meanings given those 

5 terms by the Committee by regulation.’’; 

6 (6) in paragraph (5)(B), as redesignated by 

7 paragraph (2), by striking ‘‘(as defined in the Na8 tional Security Act of 1947)’’; and 

9 (7) in paragraph (6), as redesignated by para10 graph (2)— 

11 (A) in subparagraph (A)— 

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

13 inserting ‘‘paragraph (3)’’; and 

14 (ii) by striking the second sentence and 

15 inserting the following: ‘‘The lead agency 

16 may, at its discretion, seek and receive the 

17 assistance of other departments or agencies 

18 in carrying out the purposes of this para19 graph.’’; 

20 (B) in subparagraph (B)— 

21 (i) by striking ‘‘DESIGNATED AGENCY’’ 

22 and all that follows through ‘‘The lead agen23 cy in connection’’ and inserting ‘‘DES24 IGNATED AGENCY.—The lead agency in con25 nection’’; 


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

2 (iii) by redesignating subclauses (I) 

3 and (II) as clauses (i) and (ii), respectively, 

4 and by moving such clauses, as so redesig5 nated, 2 ems to the left; and 

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

7 ‘‘(C) COMPLIANCE PLANS.— 

8 ‘‘(i) IN GENERAL.—In the case of a 

9 covered transaction with respect to which 

10 an agreement is entered into under para11 graph (3)(A), the Committee or lead agency, 

12 as the case may be, shall formulate, adhere 

13 to, and keep updated a plan for monitoring 

14 compliance with the agreement. 

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

16 by clause (i) with respect to an agreement 

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

18 include an explanation of— 

19 ‘‘(I) which member of the Com20 mittee will have primary responsibility 

21 for monitoring compliance with the 

22 agreement; 

23 ‘‘(II) how compliance with the 

24 agreement will be monitored; 


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1 ‘‘(III) how frequently compliance 

2 reviews will be conducted; 

3 ‘‘(IV) whether an independent en4 tity will be utilized under subpara5 graph (E) to conduct compliance re6 views; and 

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

8 the parties fail to cooperate regarding 

9 monitoring compliance with the agree10 ment. 

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

12 If, at any time after a mitigation agreement or 

13 condition is entered into or imposed under para14 graph (3)(A), the Committee or lead agency, as 

15 the case may be, determines that a party or par16 ties to the agreement or condition are not in 

17 compliance with the terms of the agreement or 

18 condition, the Committee or lead agency may, in 

19 addition to the authority of the Committee to 

20 impose penalties pursuant to subsection (h)(3) 

21 and to unilaterally initiate a review of any cov22 ered transaction under subsection 

23 (b)(1)(D)(iii)— 

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

25 party or parties to remediate the lack of 


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1 compliance, with failure to abide by the 

2 plan or otherwise remediate the lack of com3 pliance serving as the basis for the Com4 mittee to find a material breach of the 

5 agreement or condition; 

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

7 submit a written notice under clause (i) of 

8 subsection (b)(1)(C) or a declaration under 

9 clause (v) of that subsection with respect to 

10 a covered transaction initiated after the 

11 date of the determination of noncompliance 

12 and before the date that is 5 years after the 

13 date of the determination to the Committee 

14 to initiate a review of the transaction under 

15 subsection (b); or 

16 ‘‘(iii) seek injunctive relief. 

17 ‘‘(E) USE OF INDEPENDENT ENTITIES TO

18 MONITOR COMPLIANCE.—If the parties to an 

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

20 enter into a contract with an independent entity 

21 from outside the United States Government for 

22 the purpose of monitoring compliance with the 

23 agreement, the Committee shall take such action 

24 as is necessary to prevent a conflict of interest 


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1 from arising by ensuring that the independent 

2 entity owes no fiduciary duty to the parties. 

3 ‘‘(F) SUCCESSORS AND ASSIGNS.—Any 

4 agreement or condition entered into or imposed 

5 under paragraph (3)(A) shall be considered bind6 ing on all successors and assigns unless and 

7 until the agreement or condition terminates on 

8 its own terms or is otherwise terminated by the 

9 Committee in its sole discretion. 

10 ‘‘(G) ADDITIONAL COMPLIANCE MEAS11 URES.—Subject to subparagraphs (A) through 

12 (F), the Committee shall develop and agree upon 

13 methods for evaluating compliance with any 

14 agreement entered into or condition imposed 

15 with respect to a covered transaction that will 

16 allow the Committee to adequately ensure com17 pliance without unnecessarily diverting Com18 mittee resources from assessing any new covered 

19 transaction for which a written notice under 

20 clause (i) of subsection (b)(1)(C) or declaration 

21 under clause (v) of that subsection has been filed, 

22 and if necessary, reaching a mitigation agree23 ment with or imposing a condition on a party 

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1 action for which a review has been reopened for 

2 any reason.’’. 

3 SEC. 18. MODIFICATION OF ANNUAL REPORT AND OTHER 

4 REPORTING REQUIREMENTS. 

5 (a) MODIFICATION OF ANNUAL REPORT.—Section 

6 721(m) of the Defense Production Act of 1950 (50 U.S.C. 

7 4565(m)) is amended— 

8 (1) in paragraph (2)— 

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

10 as follows: 

11 ‘‘(A) A list of all notices filed and all re12 views or investigations of covered transactions 

13 completed during the period, with— 

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

15 each review or investigation, including 

16 whether an agreement was entered into or 

17 condition was imposed under subsection 

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

19 being reviewed or investigated, and whether 

20 the President took any action under this 

21 section with respect to that transaction; 

22 ‘‘(ii) basic information on each party 

23 to each such transaction; 

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1 ness with which the transaction was entered 

2 into or intended to be entered into; and 

3 ‘‘(iv) information about any with4 drawal from the process.’’; and 

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

6 ‘‘(G) Statistics on compliance plans con7 ducted and actions taken by the Committee 

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

9 (D) of that subsection, during that period, a gen10 eral assessment of the compliance of parties with 

11 agreements entered into and conditions imposed 

12 under subsection (l)(3)(A) that are in effect dur13 ing that period, including a description of any 

14 actions taken by the Committee to impose pen15 alties or initiate a unilateral review pursuant to 

16 subsection (b)(1)(D)(iii), and any recommenda17 tions for improving the enforcement of such 

18 agreements and conditions. 

19 ‘‘(H) Cumulative and, as appropriate, 

20 trend information on the number of declarations 

21 filed under subsection (b)(1)(C)(v), the actions 

22 taken by the Committee in response to those dec23 larations, the business sectors involved in those 

24 declarations, and the countries involved in those 

25 declarations. 


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1 ‘‘(I) A description of— 

2 ‘‘(i) the methods used by the Committee 

3 to monitor non-notified and non-declared 

4 transactions under subsection (b)(1)(H); 

5 ‘‘(ii) potential methods to improve such 

6 monitoring and the resources required to do 

7 so; and 

8 ‘‘(iii) the number of transactions iden9 tified through the mechanism established 

10 under that subsection during the reporting 

11 period and the number of such transactions 

12 flagged for further review.’’; 

13 (2) in paragraph (3)— 

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

15 and all that follows through ‘‘In order to assist’’ 

16 and inserting ‘‘CRITICAL TECHNOLOGIES.—In 

17 order to assist’’; 

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

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

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

21 moving such subparagraphs, as so redesignated, 

22 2 ems to the left; and 

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

24 ‘‘(4) FORM OF REPORT.— 


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1 ‘‘(A) IN GENERAL.—All appropriate por2 tions of the annual report under paragraph (1) 

3 may be classified. An unclassified version of the 

4 report, as appropriate, consistent with safe5 guarding national security and privacy, shall be 

6 made available to the public. 

7 ‘‘(B) INCLUSIONS IN UNCLASSIFIED

8 VERSION.—The unclassified version of the report 

9 required under paragraph (1) shall include, with 

10 respect to covered transactions for the reporting 

11 period— 

12 ‘‘(i) the number of notices submitted 

13 under subsection (b)(1)(C)(i); 

14 ‘‘(ii) the number of declarations sub15 mitted under subsection (b)(1)(C)(v) and 

16 the number of such declarations that were 

17 required under subclause (IV) of that sub18 section; 

19 ‘‘(iii) the number of declarations sub20 mitted under subsection (b)(1)(C)(v) for 

21 which the Committee required resubmission 

22 as notices under subsection (b)(1)(C)(i); 

23 ‘‘(iv) the average number of days that 

24 elapsed between submission of a declaration 

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1 ceptance of the declaration by the Com2 mittee; 

3 ‘‘(v) information on the time it took 

4 the Committee to provide comments on, or 

5 to accept, notices submitted under sub6 section (b)(1)(C)(i), including— 

7 ‘‘(I) the average number of busi8 ness days that elapsed between the date 

9 of submission of a draft notice and the 

10 date on which the Committee provided 

11 written comments on the draft notice; 

12 ‘‘(II) the average number of busi13 ness days that elapsed between the date 

14 of submission of a final notice and the 

15 date on which the Committee accepted 

16 or provided written comments on the 

17 final notice; and 

18 ‘‘(III) if the average number of 

19 business days for a response by the 

20 Committee reported under subclause (I) 

21 or (II) exceeded 10 business days— 

22 ‘‘(aa) an explanation of the 

23 causes of such delays, including 

24 whether such delays are caused by 

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1 tuations in the volume of notices, 

2 transaction characteristics, or 

3 other factors; and 

4 ‘‘(bb) an explanation of the 

5 steps that the Committee antici6 pates taking to mitigate the 

7 causes of such delays and other8 wise to improve the ability of the 

9 Committee to provide comments 

10 on, or to accept, notices within 10 

11 business days; 

12 ‘‘(vi) the number of reviews or inves13 tigations conducted under subsection (b); 

14 ‘‘(vii) the number of investigations that 

15 were subject to an extension under sub16 section (b)(2)(C)(ii); 

17 ‘‘(viii) information on the duration of 

18 those reviews and investigations, including 

19 the average number of days required to 

20 complete those reviews and investigations; 

21 ‘‘(ix) the number of notices submitted 

22 under subsection (b)(1)(C)(i) and declara23 tions submitted under subsection 

24 (b)(1)(C)(v) that were rejected by the Com25 mittee; 


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1 ‘‘(x) the number of such notices and 

2 declarations that were withdrawn by a 

3 party to the covered transaction; 

4 ‘‘(xi) the number of such withdrawals 

5 that were followed by the submission of a 

6 subsequent such notice or declaration relat7 ing to a substantially similar covered trans8 action; and 

9 ‘‘(xii) such other specific, cumulative, 

10 or trend information that the Committee de11 termines is advisable to provide for an as12 sessment of the time required for reviews 

13 and investigations of covered transactions 

14 under this section.’’. 

15 (b) REPORT ON CHINESE INVESTMENT.— 

16 (1) IN GENERAL.—Not later than 2 years after 

17 the date of the enactment of this Act, and every 2 

18 years thereafter through 2026, the Secretary of Com19 merce shall submit to Congress and the Committee on 

20 Foreign Investment in the United States a report on 

21 foreign direct investment transactions made by enti22 ties of the People’s Republic of China in the United 

23 States. 

24 (2) ELEMENTS.—Each report required by para25 graph (1) shall include the following: 


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1 (A) Total foreign direct investment from the 

2 People’s Republic of China in the United States, 

3 including total foreign direct investment 

4 disaggregated by ultimate beneficial owner. 

5 (B) A breakdown of investments from the 

6 People’s Republic of China in the United States 

7 by value using the following categories: 

8 (i) Less than $50,000,000. 

9 (ii) Greater than or equal to 

10 $50,000,000 and less than $100,000,000. 

11 (iii) Greater than or equal to 

12 $100,000,000 and less than $1,000,000,000. 

13 (iv) Greater than or equal to 

14 $1,000,000,000 and less than 

15 $2,000,000,000. 

16 (v) Greater than or equal to 

17 $2,000,000,000 and less than 

18 $5,000,000,000. 

19 (vi) Greater than or equal to 

20 $5,000,000,000. 

21 (C) A breakdown of investments from the 

22 People’s Republic of China in the United States 

23 by 2-digit North American Industry Classifica24 tion System code. 


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1 (D) A breakdown of investments from the 

2 People’s Republic of China in the United States 

3 by investment type, using the following cat4 egories: 

5 (i) Businesses established. 

6 (ii) Businesses acquired. 

7 (E) A breakdown of investments from the 

8 People’s Republic of China in the United States 

9 by government and non-government investments, 

10 including volume, sector, and type of investment 

11 within each category. 

12 (F) A list of companies incorporated in the 

13 United States purchased through government in14 vestment by the People’s Republic of China. 

15 (G) The number of United States affiliates 

16 of entities under the jurisdiction of the People’s 

17 Republic of China, the total employees at those 

18 affiliates, and the valuation for any publicly 

19 traded United States affiliate of such an entity. 

20 (H) An analysis of patterns in the invest21 ments described in subparagraphs (A) through 

22 (F), including in volume, type, and sector, and 

23 the extent to which those patterns of investments 

24 align with the objectives outlined by the Govern25 ment of the People’s Republic of China in its 


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1 Made in China 2025 plan, including a compara2 tive analysis of investments from the People’s 

3 Republic of China in the United States and all 

4 foreign direct investment in the United States. 

5 (I) An identification of any limitations on 

6 the ability of the Secretary of Commerce to col7 lect comprehensive information that is reason8 ably and lawfully available about foreign invest9 ment in the United States from the People’s Re10 public of China on a timeline necessary to com11 plete reports every 2 years as required by para12 graph (1), including— 

13 (i) an identification of any discrep14 ancies between government and private sec15 tor estimates of investments from the Peo16 ple’s Republic of China in the United 

17 States; 

18 (ii) a description of the different meth19 odologies or data collection methods, includ20 ing by private sector entities, used to meas21 ure foreign investment that may result in 

22 different estimates; and 

23 (iii) recommendations for enhancing 

24 the ability of the Secretary of Commerce to 

25 improve data collection of information 


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1 about foreign investment in the United 

2 States from the People’s Republic of China. 

3 (3) EXTENSION OF DEADLINE.—If, as a result of 

4 a limitation identified under paragraph (2)(I), the 

5 Secretary of Commerce determines that the Secretary 

6 will be unable to submit a report at the time required 

7 by paragraph (1), the Secretary may request addi8 tional time to complete the report. 

9 (c) REPORT ON CERTAIN INVESTMENTS BY STATE10 OWNED OR STATE-CONTROLLED ENTITIES.— 

11 (1) IN GENERAL.—Not later than one year after 

12 the date of the enactment of this Act, an appropriate 

13 member or members of the Committee on Foreign In14 vestment in the United States shall, in coordination 

15 with the chairperson of the Committee, submit to 

16 Congress a report assessing— 

17 (A) national security threats related to in18 vestments in the United States by state-owned or 

19 state-controlled entities in the manufacture or 

20 assembly of rolling stock or other assets for use 

21 in freight rail, public transportation, or inter22 city passenger rail systems, including the con23 struction of new facilities; 

24 (B) how the number and types of such in25 vestments could affect any such threats; and 


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1 (C) the authority and ability of the Com2 mittee to respond to such threats. 

3 (2) CONSULTATION.—The member or members of 

4 the Committee on Foreign Investment in the United 

5 States preparing the report required by paragraph 

6 (1) shall consult with the Secretary of Transportation 

7 and the head of any agency that is not represented on 

8 the Committee that has significant technical expertise 

9 related to the assessments required by paragraph (1). 

10 SEC. 19. CERTIFICATION OF NOTICES AND INFORMATION. 

11 Section 721(n) of the Defense Production Act of 1950 

12 (50 U.S.C. 4565(n)) is amended— 

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

14 subparagraphs (A) and (B), respectively, and by mov15 ing such subparagraphs, as so redesignated, 2 ems to 

16 the right; 

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

18 following: 

19 ‘‘(1) IN GENERAL.—Each notice’’; 

20 (3) by striking ‘‘paragraph (3)(B)’’ and insert21 ing ‘‘paragraph (6)(B)’’; 

22 (4) by striking ‘‘paragraph (1)(A)’’ and insert23 ing ‘‘paragraph (3)(A)’’; 

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


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

2 Committee may not complete a review under this sec3 tion of a covered transaction and may recommend to 

4 the President that the President suspend or prohibit 

5 the transaction or require divestment under sub6 section (d) if the Committee determines that a party 

7 to the transaction has— 

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

9 by paragraph (1); or 

10 ‘‘(B) included false or misleading informa11 tion in a notice or information described in 

12 paragraph (1) or omitted material information 

13 from such notice or information. 

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

15 FALSE STATEMENTS.—The Committee shall prescribe 

16 regulations expressly providing for the application of 

17 section 1001 of title 18, United States Code, to all in18 formation provided to the Committee under this sec19 tion by any party to a covered transaction.’’. 

20 SEC. 20. IMPLEMENTATION PLANS. 

21 (a) IN GENERAL.—Not later than 180 days after the 

22 date of the enactment of this Act, the chairperson of the 

23 Committee on Foreign Investment in the United States and 

24 the Secretary of Commerce shall, in consultation with the 

25 appropriate members of the Committee— 


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1 (1) develop plans to implement this Act; and 

2 (2) submit to the appropriate congressional com3 mittees a report on the plans developed under para4 graph (1), which shall include a description of— 

5 (A) the timeline and process to implement 

6 the provisions of, and amendments made by, this 

7 Act; 

8 (B) any additional staff necessary to imple9 ment the plans; and 

10 (C) the resources required to effectively im11 plement the plans. 

12 (b) APPROPRIATE CONGRESSIONAL COMMITTEES DE13 FINED.—In this section, the term ‘‘appropriate congres14 sional committees’’ means— 

15 (1) the Committee on Banking, Housing, and 

16 Urban Affairs and the Committee on Appropriations 

17 of the Senate; and 

18 (2) the Committee on Financial Services and the 

19 Committee on Appropriations of the House of Rep20 resentatives. 

21 SEC. 21. ASSESSMENT OF NEED FOR ADDITIONAL RE22 SOURCES FOR COMMITTEE. 

23 The President shall— 

24 (1) determine whether and to what extent the ex25 pansion of the responsibilities of the Committee on 


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1 Foreign Investment in the United States pursuant to 

2 the amendments made by this Act necessitates addi3 tional resources for the Committee and the depart4 ments and agencies represented on the Committee to 

5 perform their functions under section 721 of the De6 fense Production Act of 1950, as amended by this Act; 

7 and 

8 (2) if the President determines that additional 

9 resources are necessary, include in the budget of the 

10 President for fiscal year 2019 and each fiscal year 

11 thereafter submitted to Congress under section 

12 1105(a) of title 31, United States Code, a request for 

13 such additional resources. 

14 SEC. 22. FUNDING. 

15 Section 721 of the Defense Production Act of 1950 (50 

16 U.S.C. 4565) is amended by adding at the end the following: 

17 ‘‘(o) FUNDING.— 

18 ‘‘(1) ESTABLISHMENT OF FUND.—There is estab19 lished in the Treasury of the United States a fund, 

20 to be known as the ‘Committee on Foreign Investment 

21 in the United States Fund’ (in this subsection re22 ferred to as the ‘Fund’), to be administered by the 

23 chairperson. 

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


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1 the Fund such sums as may be necessary to perform 

2 the functions of the Committee. 

3 ‘‘(3) FILING FEES.— 

4 ‘‘(A) IN GENERAL.—The Committee may as5 sess and collect a fee in an amount determined 

6 by the Committee in regulations, to the extent 

7 provided in advance in appropriations Acts, 

8 without regard to section 9701 of title 31, United 

9 States Code, and subject to subparagraph (B), 

10 with respect to each covered transaction for 

11 which a written notice is submitted to the Com12 mittee under subsection (b)(1)(C)(i). The total 

13 amount of fees collected under this paragraph 

14 may not exceed the costs of administering this 

15 section. 

16 ‘‘(B) DETERMINATION OF AMOUNT OF

17 FEE.— 

18 ‘‘(i) IN GENERAL.—In determining the 

19 amount of the fee to be assessed under sub20 paragraph (A) with respect to a covered 

21 transaction, the Committee shall base the 

22 amount of the fee on the value of the trans23 action, taking into consideration— 

24 ‘‘(I) the effect of the fee on small 

25 business concerns (as defined in section 


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1 3 of the Small Business Act (15 U.S.C. 

2 632)); 

3 ‘‘(II) the expenses of the Com4 mittee associated with conducting ac5 tivities under this section; 

6 ‘‘(III) the effect of the fee on for7 eign investment; and 

8 ‘‘(IV) such other matters as the 

9 Committee considers appropriate. 

10 ‘‘(ii) PRIORITIZATION FEE.—The Com11 mittee may establish a fee or fee scale to 

12 prioritize the timing of the response of the 

13 Committee to a draft or final written notice 

14 during the period before the Committee ac15 cepts the final written notice under sub16 section (b)(1)(C)(i), in the event that the 

17 Committee is unable to respond during the 

18 time required by subclause (II) of that sub19 section because of an unusually large influx 

20 of notices, or for other reasons. 

21 ‘‘(iii) UPDATES.—The Committee shall 

22 periodically reconsider and adjust the 

23 amount of the fee to be assessed under sub24 paragraph (A) with respect to a covered 

25 transaction to ensure that the amount of the 


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1 fee does not exceed the costs of admin2 istering this section and otherwise remains 

3 appropriate. 

4 ‘‘(C) DEPOSIT AND AVAILABILITY OF

5 FEES.—Notwithstanding section 3302 of title 31, 

6 United States Code, fees collected under subpara7 graph (A) shall— 

8 ‘‘(i) be deposited into the Fund solely 

9 for use in carrying out activities under this 

10 section; 

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

12 provided in advance in appropriations 

13 Acts, be available to the chairperson; 

14 ‘‘(iii) remain available until expended; 

15 and 

16 ‘‘(iv) be in addition to any appropria17 tions made available to the members of the 

18 Committee. 

19 ‘‘(4) TRANSFER OF FUNDS.—To the extent pro20 vided in advance in appropriations Acts, the chair21 person may transfer any amounts in the Fund to any 

22 other department or agency represented on the Com23 mittee for the purpose of addressing emerging needs 

24 in carrying out activities under this section. Amounts 

25 so transferred shall be in addition to any other 


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1 amounts available to that department or agency for 

2 that purpose.’’. 

3 SEC. 23. CENTRALIZATION OF CERTAIN COMMITTEE FUNC4 TIONS. 

5 Section 721 of the Defense Production Act of 1950 (50 

6 U.S.C. 4565), as amended by section 22, is further amended 

7 by adding at the end the following: 

8 ‘‘(p) CENTRALIZATION OF CERTAIN COMMITTEE FUNC9 TIONS.— 

10 ‘‘(1) IN GENERAL.—The chairperson, in con11 sultation with the Committee, may centralize certain 

12 functions of the Committee within the Department of 

13 the Treasury for the purpose of enhancing interagency 

14 coordination and collaboration in carrying out the 

15 functions of the Committee under this section. 

16 ‘‘(2) FUNCTIONS.—Functions that may be cen17 tralized under paragraph (1) include monitoring non18 notified and non-declared transactions pursuant to 

19 subsection (b)(1)(H), and other functions as deter20 mined by the chairperson and the Committee. 

21 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in this 

22 section shall be construed as limiting the authority of 

23 any department or agency represented on the Com24 mittee to represent its own interests before the Com25 mittee.’’. 


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1 SEC. 24. CONFORMING AMENDMENTS. 

2 Section 721 of the Defense Production Act of 1950 (50 

3 U.S.C. 4565), as amended by this Act, is further amended— 

4 (1) in subsection (b)— 

5 (A) in paragraph (1)(D)(iii)(I), by striking 

6 ‘‘subsection (l)(1)(A)’’ and inserting ‘‘subsection 

7 (l)(3)(A)’’; and 

8 (B) in paragraph (2)(B)(i)(I), by striking 

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

10 (2) in subsection (d)(4)(A), by striking ‘‘the for11 eign interest exercising control’’ and inserting ‘‘a for12 eign person that would acquire an interest in a 

13 United States business or its assets as a result of the 

14 covered transaction’’; and 

15 (3) in subsection (j), by striking ‘‘merger, acqui16 sition, or takeover’’ and inserting ‘‘transaction’’. 

17 SEC. 25. REQUIREMENTS TO IDENTIFY AND CONTROL THE 

18 EXPORT OF EMERGING AND FOUNDATIONAL 

19 TECHNOLOGIES. 

20 (a) IDENTIFICATION OF TECHNOLOGIES.— 

21 (1) IN GENERAL.—The President shall establish 

22 and, in coordination with the Secretary of Commerce, 

23 the Secretary of Defense, the Secretary of Energy, the 

24 Secretary of State, and the heads of other Federal 

25 agencies as appropriate, lead, a regular, ongoing 


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1 interagency process to identify emerging and 

2 foundational technologies that— 

3 (A) are essential to the national security of 

4 the United States; and 

5 (B) are not critical technologies described in 

6 clauses (i) through (v) of section 721(a)(8)(B) of 

7 the Defense Production Act of 1950, as amended 

8 by section 3. 

9 (2) PROCESS.—The interagency process estab10 lished under subsection (a) shall— 

11 (A) be informed by multiple sources of in12 formation, including— 

13 (i) publicly available information; 

14 (ii) classified information, including 

15 relevant information provided by the Direc16 tor of National Intelligence; 

17 (iii) information relating to reviews 

18 and investigations of transactions by the 

19 Committee on Foreign Investment in the 

20 United States under section 721 of the De21 fense Production Act of 1950 (50 U.S.C. 

22 4565); and 

23 (iv) information provided by the advi24 sory committees established by the Secretary 

25 of Commerce to advise the Under Secretary 


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1 of Commerce for Industry and Security on 

2 controls under the Export Administration 

3 Regulations, including the Emerging Tech4 nology and Research Advisory Committee; 

5 (B) take into account— 

6 (i) the development of emerging and 

7 foundational technologies in foreign coun8 tries; 

9 (ii) the effect export controls imposed 

10 pursuant to this section may have on the 

11 development of such technologies in the 

12 United States; and 

13 (iii) the effectiveness of export controls 

14 imposed pursuant to this section on lim15 iting the proliferation of emerging and 

16 foundational technologies to foreign coun17 tries; and 

18 (C) include a notice and comment period. 

19 (b) COMMERCE CONTROLS.— 

20 (1) IN GENERAL.—The Secretary of Commerce 

21 shall establish appropriate controls under the Export 

22 Administration Regulations on the export, reexport, 

23 or in-country transfer of technology identified pursu24 ant to subsection (a), including by prescribing addi25 tional regulations. 


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1 (2) LEVELS OF CONTROL.— 

2 (A) IN GENERAL.—The Secretary of Com3 merce may, in coordination with the Secretary 

4 of Defense, the Secretary of State, and the heads 

5 of other Federal agencies, as appropriate, specify 

6 the level of control to apply under paragraph (1) 

7 with respect to the export of technology described 

8 in that paragraph, including a requirement for 

9 a license or other authorization for the export, 

10 reexport, or in-country transfer of that tech11 nology. 

12 (B) CONSIDERATIONS.—In determining 

13 under subparagraph (A) the level of control ap14 propriate for technology described in paragraph 

15 (1), the Secretary of Commerce shall take into 

16 account— 

17 (i) lists of countries to which exports 

18 from the United States are restricted; and 

19 (ii) the potential end uses and end 

20 users of the technology. 

21 (C) MINIMUM REQUIREMENTS.—At a min22 imum, except as provided by paragraph (4), the 

23 Secretary of Commerce shall require a license for 

24 the export, reexport, or in-country transfer of 

25 technology described in paragraph (1) to or in a 


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1 country subject to an embargo, including an 

2 arms embargo, imposed by the United States. 

3 (3) REVIEW OF LICENSE APPLICATIONS.— 

4 (A) PROCEDURES.—The procedures set forth 

5 in Executive Order 12981 (50 U.S.C. 4603 note; 

6 relating to administration of export controls) or 

7 a successor order shall apply to the review of an 

8 application for a license or other authorization 

9 for the export, reexport, or in-country transfer of 

10 technology described in paragraph (1). 

11 (B) CONSIDERATION OF INFORMATION RE12 LATING TO NATIONAL SECURITY.—In reviewing 

13 an application for a license or other authoriza14 tion for the export, reexport, or in-country trans15 fer of technology described in paragraph (1), the 

16 Secretary of Commerce shall take into account 

17 information provided by the Director of National 

18 Intelligence regarding any threat to the national 

19 security of the United States posed by the pro20 posed export, reexport, or transfer. The Director 

21 of National Intelligence shall provide such infor22 mation on the request of the Secretary of Com23 merce. 

24 (C) DISCLOSURES RELATING TO COLLABO25 RATIVE ARRANGEMENTS.—In the case of an apVerDate Sep 11 2014 22:35 May 22, 2018 Jkt 079200 PO 00000 Frm 00169 Fmt 6652 Sfmt 6203 E:\BILLS\S2098.RS S2098

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1 plication for a license or other authorization for 

2 the export, reexport, or in-country transfer of 

3 technology described in paragraph (1) submitted 

4 by or on behalf of a joint venture, joint develop5 ment agreement, or similar collaborative ar6 rangement, the Secretary of Commerce may re7 quire the applicant to identify, in addition to 

8 any foreign person participating in the arrange9 ment, any foreign person with significant owner10 ship interest in a foreign person participating in 

11 the arrangement. 

12 (4) EXCEPTIONS.— 

13 (A) MANDATORY EXCEPTIONS.—The Sec14 retary of Commerce may not control under this 

15 subsection the export of any technology— 

16 (i) described in section 203(b) of the 

17 International Emergency Economic Powers 

18 Act (50 U.S.C. 1702(b)); or 

19 (ii) if the regulation of the export of 

20 that technology is prohibited under any 

21 other provision of law. 

22 (B) REGULATORY EXCEPTIONS.—In pre23 scribing regulations under paragraph (1), the 

24 Secretary of Commerce may include regulatory 

25 exceptions to the requirements of that paragraph. 


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1 (C) ADDITIONAL EXCEPTIONS.—The Sec2 retary of Commerce shall not be required to im3 pose under paragraph (1) a requirement for a li4 cense or other authorization with respect to the 

5 export, reexport, or in-country transfer of tech6 nology described in paragraph (1) pursuant to 

7 any of the following transactions: 

8 (i) The sale or license of a finished 

9 item and the provision of associated tech10 nology if the United States person that is a 

11 party to the transaction generally makes the 

12 finished item and associated technology 

13 available to its customers, distributors, or 

14 resellers. 

15 (ii) The sale or license to a customer of 

16 a product and the provision of integration 

17 services or similar services if the United 

18 States person that is a party to the trans19 action generally makes such services avail20 able to its customers. 

21 (iii) The transfer of equipment and the 

22 provision of associated technology to operate 

23 the equipment if the transfer could not re24 sult in the foreign person using the equip25 ment to produce critical technologies (as deVerDate Sep 11 2014 22:35 May 22, 2018 Jkt 079200 PO 00000 Frm 00171 Fmt 6652 Sfmt 6203 E:\BILLS\S2098.RS S2098

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1 fined in section 721(a) of the Defense Pro2 duction Act of 1950, as amended by section 

3 3). 

4 (iv) The procurement by the United 

5 States person that is a party to the trans6 action of goods or services, including manu7 facturing services, from a foreign person 

8 that is a party to the transaction, if the for9 eign person has no rights to exploit any 

10 technology contributed by the United States 

11 person other than to supply the procured 

12 goods or services. 

13 (v) Any contribution and associated 

14 support by a United States person that is 

15 a party to the transaction to an industry 

16 organization related to a standard or speci17 fication, whether in development or de18 clared, including any license of or commit19 ment to license intellectual property in com20 pliance with the rules of any standards or21 ganization (as defined by the Secretary by 

22 regulation). 

23 (c) MULTILATERAL CONTROLS.— 

24 (1) IN GENERAL.—The Secretary of State, in 

25 consultation with the Secretary of Commerce and the 


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1 Secretary of Defense, and the heads of other Federal 

2 agencies, as appropriate, may propose that any tech3 nology identified pursuant to subsection (a) be added 

4 to the list of technologies controlled by the relevant 

5 multilateral export control regimes. 

6 (2) ITEMS ON COMMERCE CONTROL LIST OR

7 UNITED STATES MUNITIONS LIST.— 

8 (A) IN GENERAL.—If the Secretary of State 

9 proposes to a multilateral export control regime 

10 under paragraph (1) to add a technology identi11 fied pursuant to subsection (a) to the control list 

12 of that regime and that regime does not add that 

13 technology to the control list during the 3-year 

14 period beginning on the date of the proposal, the 

15 applicable agency head may determine whether 

16 national security concerns warrant the continu17 ation of unilateral export controls with respect to 

18 that technology. 

19 (B) APPLICABLE AGENCY HEAD DEFINED.— 

20 In this paragraph, the term ‘‘applicable agency 

21 head’’ means— 

22 (i) in the case of technology listed on 

23 the Commerce Control List set forth in Sup24 plement No. 1 to part 774 of the Export Ad25 ministration Regulations, the Secretary of 


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1 Commerce, in consultation with the Sec2 retary of Defense and the Secretary of State; 

3 and 

4 (ii) in the case of technology listed on 

5 the United States Munitions List set forth 

6 in part 121 of title 22, Code of Federal Reg7 ulations, the Secretary of State, in consulta8 tion with the Secretary of Defense and the 

9 heads of other Federal agencies, as appro10 priate. 

11 (d) REPORT TO COMMITTEE ON FOREIGN INVESTMENT

12 IN THE UNITED STATES.—Not less frequently than every 

13 180 days, the Secretary of Commerce, in coordination with 

14 the Secretary of Defense, the Secretary of State, and the 

15 heads of other Federal agencies, as appropriate, shall sub16 mit to the Committee on Foreign Investment in the United 

17 States a report on the results of actions taken pursuant to 

18 this section. 

19 (e) REPORT TO CONGRESS.—Not less frequently than 

20 every 180 days, the Secretary of Commerce, in coordination 

21 with the Secretary of Defense, the Secretary of State, and 

22 the heads of other Federal agencies, as appropriate, shall 

23 submit a report on the results of actions taken pursuant 

24 to this section, including actions taken pursuant to sub25 sections (a), (b), and (c), to— 


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1 (1) the Committee on Banking, Housing, and 

2 Urban Affairs, the Committee on Foreign Relations, 

3 the Committee on Armed Services, and the Select 

4 Committee on Intelligence of the Senate; and 

5 (2) the Committee on Financial Services, the 

6 Committee on Foreign Affairs, the Committee on 

7 Armed Services, and the Permanent Select Committee 

8 on Intelligence of the House of Representatives. 

9 (f) MODIFICATIONS TO EMERGING TECHNOLOGY AND

10 RESEARCH ADVISORY COMMITTEE.— 

11 (1) IN GENERAL.—The Secretary of Commerce 

12 shall revise the objectives of the Emerging Technology 

13 and Research Advisory Committee, established by the 

14 Secretary under the Export Administration Regula15 tions, to include advising the interagency process es16 tablished under subsection (a) with respect to emerg17 ing and foundational technologies. 

18 (2) DUTIES.—The Secretary— 

19 (A) shall revise the duties of the Emerging 

20 Technology and Research Advisory Committee to 

21 include identifying emerging and foundational 

22 technologies that may be developed over a period 

23 of 5 years or 10 years; and 

24 (B) may revise the duties of the Advisory 

25 Committee to include identifying trends in— 


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1 (i) the ownership by foreign persons 

2 and foreign governments of such tech3 nologies; 

4 (ii) the types of transactions related to 

5 such technologies engaged in by foreign per6 sons and foreign governments; 

7 (iii) the blending of private and gov8 ernment investment in such technologies; 

9 and 

10 (iv) efforts to obfuscate ownership of 

11 such technologies or to otherwise circumvent 

12 the controls established under this section. 

13 (3) MEETINGS.— 

14 (A) FREQUENCY.—The Emerging Tech15 nology and Research Advisory Committee should 

16 meet not less frequently than every 120 days. 

17 (B) ATTENDANCE.—A representative from 

18 each agency participating in the interagency 

19 process established under subsection (a) should be 

20 in attendance at each meeting of the Emerging 

21 Technology and Research Advisory Committee. 

22 (4) CLASSIFIED INFORMATION.—Not fewer than 

23 half of the members of the Emerging Technology and 

24 Research Advisory Committee should hold sufficient 

25 security clearances such that classified information, 


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1 including classified information described in clauses 

2 (ii) and (iii) of subsection (a)(2)(A), from the inter3 agency process established under subsection (a) can be 

4 shared with those members to inform the advice pro5 vided by the Advisory Committee. 

6 (5) APPLICABILITY OF FEDERAL ADVISORY COM7 MITTEE ACT.—Subsections (a)(1), (a)(3), and (b) of 

8 section 10 and sections 11, 13, and 14 of the Federal 

9 Advisory Committee Act (5 U.S.C. App.) shall not 

10 apply to the Emerging Technology and Research Ad11 visory Committee. 

12 (6) REPORT.—The Emerging Technology and 

13 Research Advisory Committee shall include the find14 ings of the Advisory Committee under this subsection 

15 in the annual report to Congress required by section 

16 14 of the Export Administration Act of 1979 (50 

17 U.S.C. 4616) (as continued in effect pursuant to the 

18 International Emergency Economic Powers Act (50 

19 U.S.C. 1701 et seq.)). 

20 (g) RULE OF CONSTRUCTION.—Nothing in this section 

21 shall be construed to alter or limit— 

22 (1) the authority of the President or the Sec23 retary of State to designate items as defense articles 

24 and defense services for the purposes of the Arms ExVerDate Sep 11 2014 22:35 May 22, 2018 Jkt 079200 PO 00000 Frm 00177 Fmt 6652 Sfmt 6203 E:\BILLS\S2098.RS S2098

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1 port Control Act (22 U.S.C. 2751 et seq.) or to other2 wise regulate such items; or 

3 (2) the authority of the President under the 

4 Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.), 

5 the Nuclear Non-Proliferation Act of 1978 (22 U.S.C. 

6 3201 et seq.), the Energy Reorganization Act of 1974 

7 (42 U.S.C. 5801 et seq.), or the Export Administra8 tion Act of 1979 (50 U.S.C. 4601 et seq.) (as contin9 ued in effect pursuant to the International Emergency 

10 Economic Powers Act (50 U.S.C. 1701 et seq.)) or 

11 any other provision of law relating to the control of 

12 exports. 

13 (h) DEFINITIONS.—In this section: 

14 (1) EXPORT ADMINISTRATION REGULATIONS.— 

15 The term ‘‘Export Administration Regulations’’ 

16 means subchapter C of chapter VII of title 15, Code 

17 of Federal Regulations. 

18 (2) IN-COUNTRY TRANSFER.—The term ‘‘in-coun19 try transfer’’ has the meaning given to the term in 

20 the Export Administration Regulations. 

21 (3) REEXPORT.—The term ‘‘reexport’’ has the 

22 meaning given to the term in the Export Administra23 tion Regulations. 


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1 (4) UNITED STATES PERSON.—The term ‘‘United 

2 States person’’ means any person subject to the juris3 diction of the United States. 

4 SEC. 26. EXPORT CONTROL ENFORCEMENT AUTHORITY. 

5 (a) AUTHORITIES.—In order to enforce the provisions 

6 of the Export Administration Regulations under subchapter 

7 C of chapter VII of title 15, Code of Federal Regulations, 

8 issued under the authority of the International Emergency 

9 Economic Powers Act (50 U.S.C. 1701 et seq.) (pursuant 

10 to which the President has continued in effect authorities 

11 granted under the Export Administration Act of 1979 (50 

12 U.S.C. 4601 et seq.)), the President shall delegate to the Sec13 retary of Commerce, in addition to existing authorities, the 

14 authority to authorize any law enforcement officer of the 

15 Department of Commerce to conduct investigations (includ16 ing undercover investigations) in the United States and in 

17 other countries when permitted under such countries’ laws 

18 using all applicable laws of the United States. 

19 (b) BEST PRACTICE GUIDELINES.—The Secretary of 

20 Commerce, in consultation with the heads of appropriate 

21 Federal agencies, may publish and update best practices 

22 guidelines to assist persons in developing and imple23 menting, on a voluntary basis, effective export control pro24 grams in compliance with the Export Administration Reg25 ulations. 


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1 (c) CONFIDENTIALITY OF INFORMATION.— 

2 (1) EXEMPTIONS FROM DISCLOSURE.— 

3 (A) IN GENERAL.—Information obtained 

4 under the Export Administration Act of 1979 

5 (50 U.S.C. 2601 et seq.) (as continued in effect 

6 pursuant to the International Emergency Eco7 nomic Powers Act (50 U.S.C. 1701 et seq.)) may 

8 be withheld from disclosure only to the extent 

9 permitted by statute, except that information de10 scribed in subparagraph (B) shall be withheld 

11 from public disclosure and shall not be subject to 

12 disclosure under section 552(b)(3) of title 5, 

13 United States Code, unless the release of such in14 formation is determined by the Secretary to be 

15 in the national interest. 

16 (B) INFORMATION DESCRIBED.—Informa17 tion described in this subparagraph is informa18 tion submitted or obtained in connection with an 

19 application for a license or other authorization 

20 to export, reexport, or transfer items or engage 

21 in other activities, a recordkeeping or reporting 

22 requirement, enforcement activity, or other oper23 ations under the Export Administration Act of 

24 1979, including— 


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1 (i) the license application, license, or 

2 other authorization itself; 

3 (ii) classification or advisory opinion 

4 requests, and any response to such a re5 quest; 

6 (iii) license determinations and infor7 mation pertaining to such determinations; 

8 (iv) information or evidence obtained 

9 in the course of any investigation; and 

10 (v) information obtained or furnished 

11 in connection with any international agree12 ment, treaty, or other obligation. 

13 (2) INFORMATION TO CONGRESS AND GAO.— 

14 (A) IN GENERAL.—Nothing in this section 

15 shall be construed as authorizing the withholding 

16 of information from Congress or the Comptroller 

17 General of the United States. 

18 (B) AVAILABILITY TO CONGRESS.— 

19 (i) IN GENERAL.—Information ob20 tained at any time under any provision of 

21 the Export Administration Act of 1979 or 

22 the Export Administration Regulations, in23 cluding reports or license applications re24 quired under any such provision, shall be 

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1 committee of Congress of appropriate juris2 diction, upon the request of the chairman or 

3 ranking member of the committee or sub4 committee. 

5 (ii) PROHIBITION ON FURTHER DIS6 CLOSURE.—No committee or subcommittee 

7 referred to in clause (i), or member thereof, 

8 may disclose any information made avail9 able under clause (i) that is submitted on a 

10 confidential basis unless the full committee 

11 determines that the withholding of that in12 formation is contrary to the national inter13 est. 

14 (C) AVAILABILITY TO GAO.— 

15 (i) IN GENERAL.—Information de16 scribed in subparagraph (B)(i) shall be sub17 ject to the limitations contained in section 

18 716 of title 31, United States Code. 

19 (ii) PROHIBITION ON FURTHER DIS20 CLOSURE.—An officer or employee of the 

21 Government Accountability Office may not 

22 disclose, except to Congress in accordance 

23 with this paragraph, any information de24 scribed in subparagraph (B)(i) that is subVerDate Sep 11 2014 22:35 May 22, 2018 Jkt 079200 PO 00000 Frm 00182 Fmt 6652 Sfmt 6203 E:\BILLS\S2098.RS S2098

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1 mitted on a confidential basis or from 

2 which any individual can be identified. 

3 (3) INFORMATION SHARING.— 

4 (A) EXCHANGE OF INFORMATION.—The 

5 heads of departments, agencies, and offices with 

6 enforcement authorities under the Export Ad7 ministration Act of 1979, consistent with protec8 tion of law enforcement and its sources and 

9 methods, shall exchange any licensing and en10 forcement information with one another that is 

11 necessary to facilitate enforcement efforts under 

12 this section, and shall consult on a regular basis 

13 with one another and with the heads of other de14 partments, agencies, and offices that obtain in15 formation subject to this paragraph, in order to 

16 facilitate the exchange of such information. 

17 (B) PROVISION OF INFORMATION BY FED18 ERAL OFFICIALS.—Any Federal official who ob19 tains information that is relevant to the enforce20 ment of the Export Administration Act of 1979, 

21 including information pertaining to any inves22 tigation, shall furnish such information to each 

23 appropriate department, agency, or office with 

24 enforcement responsibilities under this section to 

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1 ligence, counterintelligence, and law enforcement 

2 sources, methods, and activities. 

3 (C) EXCEPTIONS.—The provisions of this 

4 paragraph shall not apply to information subject 

5 to the restrictions set forth in section 9 of title 

6 13, United States Code. Return information, as 

7 defined in section 6103(b) of the Internal Rev8 enue Code of 1986, may be disclosed only as au9 thorized by that section. 

10 (D) INFORMATION SHARING WITH FEDERAL

11 AGENCIES.—Licensing or enforcement informa12 tion obtained under the Export Administration 

13 Act of 1979 may be shared with heads of depart14 ments, agencies, and offices that do not have en15 forcement authorities under that Act on a case16 by-case basis, at the discretion of the Secretary 

17 of Commerce. Such information may be shared 

18 only when the Secretary makes a determination 

19 that the sharing of the information is in the na20 tional interest. 

21 SEC. 27. PROHIBITION ON MODIFICATION OF CIVIL PEN22 ALTIES UNDER EXPORT CONTROL AND SANC23 TIONS LAWS. 

24 (a) IN GENERAL.—Notwithstanding any other provi25 sion of law, the Executive Office of the President may not 


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1 modify any civil penalty, including a denial order, imple2 mented by the Government of the United States with respect 

3 to a Chinese telecommunications company pursuant to a 

4 determination that the company has violated an export con5 trol or sanctions law of the United States until the date 

6 that is 30 days after the President certifies to the appro7 priate congressional committees that the company— 

8 (1) has not, for a period of one year, conducted 

9 activities in violation of the laws of the United States; 

10 and 

11 (2) is fully cooperating with investigations into 

12 the activities of the company conducted by the Gov13 ernment of the United States, if any. 

14 (b) APPROPRIATE CONGRESSIONAL COMMITTEES DE15 FINED.—In this section, the term ‘‘appropriate congres16 sional committees’’ means— 

17 (1) the Committee on Banking, Housing, and 

18 Urban Affairs and the Committee on Foreign Rela19 tions of the Senate; and 

20 (2) the Committee on Financial Services and the 

21 Committee on Foreign Affairs of the House of Rep22 resentatives. 


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1 SEC. 28. UNDER SECRETARY OF COMMERCE FOR INDUSTRY 

2 AND SECURITY. 

3 (a) IN GENERAL.—On and after the date of the enact4 ment of this Act, any reference in the Export Administra5 tion Act of 1979 (50 U.S.C. 4601 et seq.) or any other law 

6 or regulation to the Under Secretary of Commerce for Ex7 port Administration shall be deemed to be a reference to 

8 the Under Secretary of Commerce for Industry and Secu9 rity. 

10 (b) TITLE 5.—Section 5314 of title 5, United States 

11 Code, is amended by striking ‘‘Under Secretary of Com12 merce for Export Administration’’ and inserting ‘‘Under 

13 Secretary of Commerce for Industry and Security’’. 

14 (c) CONTINUATION IN OFFICE.—The individual serv15 ing as Under Secretary of Commerce for Export Adminis16 tration on the day before the date of the enactment of this 

17 Act may serve as the Under Secretary of Commerce for In18 dustry and Security on and after that date without the need 

19 for renomination or reappointment. 

20 SEC. 29. LIMITATION ON CANCELLATION OF DESIGNATION 

21 OF SECRETARY OF THE AIR FORCE AS DE22 PARTMENT OF DEFENSE EXECUTIVE AGENT 

23 FOR A CERTAIN DEFENSE PRODUCTION ACT 

24 PROGRAM. 

25 (a) LIMITATION ON CANCELLATION OF DESIGNA26 TION.—The Secretary of Defense may not implement the deVerDate Sep 11 2014 22:35 May 22, 2018 Jkt 079200 PO 00000 Frm 00186 Fmt 6652 Sfmt 6203 E:\BILLS\S2098.RS S2098

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1 cision, issued on July 1, 2017, to cancel the designation, 

2 under Department of Defense Directive 4400.01E, entitled 

3 ‘‘Defense Production Act Programs’’ and dated October 12, 

4 2001, of the Secretary of the Air Force as the Department 

5 of Defense Executive Agent for the program carried out 

6 under title III of the Defense Production Act of 1950 (50 

7 U.S.C. 4531 et seq.) until the date specified in subsection 

8 (c). 

9 (b) DESIGNATION.—The Secretary of the Air Force 

10 shall continue to serve as the sole and exclusive Department 

11 of Defense Executive Agent for the program described in 

12 subsection (a) until the date specified in subsection (c). 

13 (c) DATE SPECIFIED.—The date specified in this sub14 section is the date of the enactment of a joint resolution 

15 or an Act approving the implementation of the decision de16 scribed in subsection (a). 

17 SEC. 30. REVIEW OF AND REPORT ON CERTAIN DEFENSE 

18 TECHNOLOGIES CRITICAL TO THE UNITED 

19 STATES MAINTAINING SUPERIOR MILITARY 

20 CAPABILITIES. 

21 (a) REVIEW REQUIRED.—Not later than 180 days 

22 after the date of the enactment of this Act, the Secretary 

23 of Defense and the Director of National Intelligence, in con24 sultation with the Air Force Research Laboratory, the De25 fense Advanced Projects Research Agency, and such other 


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1 appropriate research entities as the Secretary and the Di2 rector may identify, shall— 

3 (1) jointly carry out and complete a review of 

4 key national security technology capability advan5 tages, competitions, and gaps between the United 

6 States and ‘‘near peer’’ nations; 

7 (2) develop a definition of ‘‘near peer nation’’ for 

8 purposes of paragraph (1); and 

9 (3) submit to the appropriate congressional com10 mittees a report on the findings of the Secretary and 

11 the Director with respect to the review conducted 

12 under paragraph (1). 

13 (b) ELEMENTS.—The review conducted under para14 graph (1) of subsection (a), and the report required by 

15 paragraph (3) of that subsection, shall identify, at a min16 imum, the following: 

17 (1) Key United States industries and research 

18 and development activities expected to be critical to 

19 maintaining a national security technology capa20 bility if, during the 5-year period beginning on the 

21 date of the enactment of this Act, the Secretary and 

22 the Director anticipate that— 

23 (A) a United States industrial base shortfall 

24 will exist; and 


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1 (B) United States industry will be unable 

2 to or otherwise will not provide the needed ca3 pacity in a timely manner without financial as4 sistance from the United States Government 

5 through existing statutory authorities specifically 

6 intended for that purpose, including assistance 

7 provided under title III of the Defense Produc8 tion Act of 1950 (50 U.S.C. 4531 et seq.) and 

9 other appropriate authorities. 

10 (2) Key areas in which the United States cur11 rently enjoys a technological advantage. 

12 (3) Key areas in which the United States no 

13 longer enjoys a technological advantage. 

14 (4) Sectors of the defense industrial base in 

15 which the United States lacks adequate productive ca16 pacity to meet critical national defense needs. 

17 (5) Priority areas for which appropriate statu18 tory industrial base incentives should be applied as 

19 the most cost-effective, expedient, and practical alter20 native for meeting the technology or defense industrial 

21 base needs identified under this subsection, includ22 ing— 

23 (A) sustainment of critical production and 

24 supply chain capabilities; 


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1 (B) commercialization of research and de2 velopment investments; 

3 (C) scaling of emerging technologies; and 

4 (D) other areas as determined by the Sec5 retary and the Director. 

6 (6) Priority funding recommendations with re7 spect to key areas that the Secretary, in consultation 

8 with the Director, determines are— 

9 (A) critical to the United States maintain10 ing superior military capabilities, especially 

11 with respect to potential peer and near peer 

12 military or economic competitors, during the 5- 

13 year period beginning on the date of the enact14 ment of this Act; and 

15 (B) suitable for long-term investment from 

16 funds made available under title III of the De17 fense Production Act of 1950 and other appro18 priate statutory authorities. 

19 (c) FORM OF REPORT.—The report required by sub20 section (a)(3) shall be submitted in unclassified form, but 

21 may include a classified annex. 

22 (d) APPROPRIATE CONGRESSIONAL COMMITTEES DE23 FINED.—In this section, the term ‘‘appropriate congres24 sional committees’’ means— 


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1 (1) the Committee on Banking, Housing and 

2 Urban Affairs, the Committee on Armed Services, and 

3 the Select Committee on Intelligence of the Senate; 

4 and 

5 (2) the Committee on Financial Services, the 

6 Committee on Armed Services, and the Permanent 

7 Select Committee on Intelligence of the House of Rep8 resentatives. 

9 SEC. 31. BRIEFING ON INFORMATION FROM TRANSACTIONS 

10 REVIEWED BY COMMITTEE ON FOREIGN IN11 VESTMENT IN THE UNITED STATES RELATING 

12 TO FOREIGN EFFORTS TO INFLUENCE DEMO13 CRATIC INSTITUTIONS AND PROCESSES. 

14 Not later than 60 days after the date of the enactment 

15 of this Act, the Secretary of the Treasury (or a designee 

16 of the Secretary) shall provide a briefing to the Committee 

17 on Banking, Housing, and Urban Affairs of the Senate and 

18 the Committee on Financial Services of the House of Rep19 resentatives on— 

20 (1) transactions reviewed by the Committee on 

21 Foreign Investment in the United States during the 

22 5-year period preceding the briefing that the Com23 mittee determined would have allowed foreign persons 

24 to inappropriately influence democratic institutions 


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1 and processes within the United States and in other 

2 countries; and 

3 (2) the disposition of such reviews, including 

4 any steps taken by the Committee to address the risk 

5 of allowing foreign persons to influence such institu6 tions and processes. 

7 SEC. 32. EFFECTIVE DATE. 

8 (a) IMMEDIATE APPLICABILITY OF CERTAIN PROVI9 SIONS.—The following shall take effect on the date of the 

10 enactment of this Act and apply with respect to any covered 

11 transaction the review or investigation of which is initiated 

12 under section 721 of the Defense Production Act of 1950 

13 on or after such date of enactment: 

14 (1) Sections 5, 7, 8, 9, 10, 13, 14, 15, 16, 17, 

15 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, and 29 and the 

16 amendments made by those sections. 

17 (2) Section 12 and the amendments made by 

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

19 721(b)(4)(A) of the Defense Production Act of 1950, 

20 as added by section 12). 

21 (3) Paragraphs (1), (2), (3), (4), (5)(A)(i), 

22 (5)(B)(i), (5)(B)(iv)(I), (5)(B)(v), (5)(C)(v), (6), (7), 

23 (8), (9), (10), (11), (12), (13), (14), (15), (16), and 

24 (17) of subsection (a) of section 721 of the Defense 

25 Production Act of 1950, as amended by section 3. 


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1 (4) Section 721(m)(4) of the Defense Production 

2 Act of 1950, as amended by section 18 (except for 

3 clauses (ii), (iii), (iv), and (v) of subparagraph (B) 

4 of that section). 

5 (b) DELAYED APPLICABILITY OF CERTAIN PROVI6 SIONS.— 

7 (1) IN GENERAL.—Any provision of or amend8 ment made by this Act not specified in subsection (a) 

9 shall— 

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

11 after publication in the Federal Register of a de12 termination by the chairperson of the Committee 

13 on Foreign Investment in the United States that 

14 the regulations, organizational structure, per15 sonnel, and other resources necessary to admin16 ister the new provisions are in place; and 

17 (B) apply with respect to any covered 

18 transaction the review or investigation of which 

19 is initiated under section 721 of the Defense Pro20 duction Act of 1950 on or after the date de21 scribed in subparagraph (A). 

22 (2) NONDELEGATION OF DETERMINATION.—The 

23 determination of the chairperson of the Committee on 

24 Foreign Investment in the United States under para25 graph (1)(A) may not be delegated. 


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1 (c) AUTHORIZATION FOR PILOT PROGRAMS.— 

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

3 enactment of this Act and ending on the date de4 scribed in subsection (b)(1)(A), the Committee on For5 eign Investment in the United States may, at its dis6 cretion, conduct one or more pilot programs to imple7 ment any authority provided pursuant to any provi8 sion of or amendment made by this Act not specified 

9 in subsection (a). 

10 (2) PUBLICATION IN FEDERAL REGISTER.—A 

11 pilot program may not commence until the date that 

12 is 30 days after publication in the Federal Register 

13 of a determination by the chairperson of the Com14 mittee of the scope of and procedures for the pilot pro15 gram. That determination may not be delegated. 

16 SEC. 33. SEVERABILITY. 

17 If any provision of this Act or an amendment made 

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

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

20 invalid, the application of that provision or amendment to 

21 other persons or circumstances and the remainder of the 

22 provisions of this Act and the amendments made by this 

23 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 


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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.’’. 


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Calendar No. 426 

115TH CONGRESS 

2D SESSION S. 2098 

A BILL 

To modernize and strengthen the Committee on 

poses. types of foreign investment, and for other pursecurity of the United States posed by certain effectively guard against the risk to the national Foreign Investment in the United States to more 

MAY 22, 2018 

Reported with an amendment and an amendment to the 

title 


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