I 
113TH CONGRESS 
1ST SESSION 
H. R. 221 
To require reports on the acquisitions by certain foreign persons of companies 
that have received American taxpayer research and development funding, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 14, 2013 
Mrs. BLACKBURN (for herself and Mr. HUIZENGA of Michigan) introduced the 
following bill; which was referred to the Committee on Energy and Com-
merce, and in addition to the Committee on Science, Space, and Tech-
nology, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To require reports on the acquisitions by certain foreign 
persons of companies that have received American tax-
payer research and development funding, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Stop Mergers, Acquisi-
tions, and Risky Takeovers Supplied by American Labor 
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and Entrepreneurship Act of 2013’’ or the ‘‘SMART 
SALE Act of 2013’’. 
SEC. 2. DEFINITIONS. 
In this Act: 
(1) COVERED ENTITY.—The term ‘‘covered en-
tity’’ means any person, company, institution, or 
other entity engaged in interstate commerce in the 
United States that owns, licenses, or otherwise holds 
an interest in a federally-funded technology, or to 
which Federal energy research and development 
funding has been obligated by a Federal agency. 
(2) COVERED TRANSACTION.— 
(A) IN
GENERAL.—The term ‘‘covered 
transaction’’ means any proposed or pending 
merger, acquisition, takeover, or other transfer 
that could result in control of a covered entity 
by— 
(i) a government of a foreign country 
described in subparagraph (B); or 
(ii)(I) a natural person who is a cit-
izen of a foreign country described in sub-
paragraph (B) or who owes permanent al-
legiance to such foreign country; or 
(II) a corporation or other legal entity 
which is organized under the laws of such 
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foreign country or any political subdivision 
thereof if natural persons described in sub-
clause (I) own, directly or indirectly, more 
than 50 percent of the outstanding capital 
stock or other beneficial interest in such 
legal entity. 
(B) FOREIGN COUNTRY DESCRIBED.— 
(i) IN GENERAL.—Except as provided 
in clause (ii), a foreign country referred to 
in subparagraph (A) means any of the fol-
lowing: 
(I) The People’s Republic of 
China. 
(II) The Democratic People’s Re-
public of Korea. 
(III) A country that is a state 
sponsor of terrorism (as defined in 
clause (iii)). 
(IV) A country that provides 
sanctuary to a foreign terrorist orga-
nization (as defined in clause (iv)). 
(V) Any other country with re-
spect to which the President deter-
mines the provisions of this paragraph 
should apply. 
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(ii) WAIVER.—The President may 
waive the applicability of this paragraph 
with respect to a foreign country described 
in clause (i) on a case-by-case basis if not 
later than 60 days before doing so the 
President— 
(I) determines that it is in the 
national interest of the United States 
to do so; and 
(II) submits to Congress a report 
providing a justification for the waiv-
er. 
(iii) STATE SPONSOR OF TERRORISM 
DEFINED.—In clause (i)(III), the term 
‘‘state sponsor of terrorism’’ means any 
country the government of which the Sec-
retary of State has determined has repeat-
edly provided support for international ter-
rorism pursuant to— 
(I) section 6(j) of the Export Ad-
ministration Act of 1979 (50 U.S.C. 
App. 2405) (as continued in effect 
under the International Emergency 
Economic Powers Act); 
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(II) section 620A of the Foreign 
Assistance Act of 1961 (22 U.S.C. 
2371); 
(III) section 40 of the Arms Ex-
port Control Act (22 U.S.C. 2780); or 
(IV) any other provision of law. 
(iv) FOREIGN TERRORIST ORGANIZA-
TION
DEFINED.—In clause (i)(IV), the 
term 
‘‘foreign 
terrorist 
organization’’ 
means any organization so designated by 
the Secretary of State under section 219 of 
the Immigration and Nationality Act (8 
U.S.C. 1189). 
(3) FEDERAL ENERGY RESEARCH AND DEVEL-
OPMENT FUNDING.—The term ‘‘Federal energy re-
search and development funding’’ means Federal 
funding provided for the purpose of researching or 
developing new energy technologies, products, proc-
esses, or systems, or for the application of existing 
energy technologies, products, processes, or systems 
in a novel manner. Such funding includes funding 
for a loan or loan guarantee made by a Federal 
agency. 
(4) FEDERALLY-FUNDED TECHNOLOGY.— 
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(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘‘federally-funded 
technology’’ means any technology, product, 
process, or system developed as a result of Fed-
eral energy research and development funding. 
(B) EXCEPTION.—Such term does not 
apply to any technology, product, process, and 
system that was not— 
(i) specified in the documents and 
agreements associated with the provision of 
the Federal energy research and develop-
ment funding; or 
(ii) a foreseeable result or byproduct 
of the Federal energy research and devel-
opment funding at the time the funding 
was provided. 
SEC. 3. REQUIREMENTS. 
(a) NOTIFICATION.— 
(1) IN GENERAL.—A covered entity shall notify 
the Secretary of Energy in writing not later than 7 
days of entering into negotiations for any covered 
transaction. 
(2) CONTENTS.—A notification submitted pur-
suant to paragraph (1) shall include— 
(A) an identification of the covered entity; 
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(B) an identification of the purchasing, ac-
quiring, or merging entity; 
(C) the amounts of all Federal energy re-
search and development funding received by the 
covered entity, including a description of the 
form and amount of each transaction providing 
such funding; 
(D) an explanation of how the covered en-
tity or its purchaser will repay any outstanding 
loans or loan guarantees provided by a Federal 
agency, including interest accrued; 
(E) an appraisal of the value of any feder-
ally-funded technology owned, licensed, or oth-
erwise held by the covered entity, including esti-
mates of sales value and licensing fees; and 
(F) a description of the technical rights 
held by the Federal Government in all federally- 
funded technology owned, licensed, or otherwise 
held by the covered entity. 
(3) PENALTIES.—Any person who knowingly 
and intentionally fails to make a notification re-
quired by this subsection shall be imprisoned for not 
more than 5 years and fined according to title 18, 
United States Code. 
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(b) RECOUPMENT OF FEDERAL FUNDS.—A Federal 
agency providing Federal energy research and develop-
ment funding shall require, as a condition of receipt of 
such funding, that all amounts provided shall be repaid 
to the Federal Government if a covered transaction results 
in control of the recipient by a foreign country described 
in section 2(2)(B). 
(c) REGULATIONS.—Not later than 180 days after 
the date of enactment of this Act, the Secretary of Energy 
shall promulgate regulations to carry out this section. 
SEC. 4. REPORTS TO CONGRESS. 
(a) REPORT ON NOTIFICATION.—Not later than 30 
days after receipt of a notification required by section 
3(a), the Secretary of Energy shall submit to Congress 
a report on the notification. Such a report shall contain, 
at a minimum, the following: 
(1) All of the information provided by the cov-
ered entity under section 3(a). 
(2) An assessment of any cybersecurity threats 
to the national interests of the United States with 
respect to the covered transaction. 
(3) Disclosure of any additional Federal energy 
research and development funding payments sched-
uled to be made by a Federal entity to the covered 
entity. 
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(4) An assessment of what effect the covered 
transaction will have on the interests of the United 
States, including the extent to which the covered 
transaction will cause, or will have a reasonable like-
lihood of causing, any negative effects to the na-
tional and economic security interests of the United 
States. 
(5) An estimate of any amounts of Federal, 
State, and foreign government funding that any 
party to the covered transaction, other than the cov-
ered entity, has received. 
(b) INITIAL REPORT.—Not later than 90 days after 
the date of enactment of this Act, the Secretary of Energy 
shall submit to Congress a report that— 
(1) identifies each covered entity that is en-
gaged in a covered transaction as of the date of en-
actment of this Act; and 
(2) specifies the total amount of Federal energy 
research and development funding the covered entity 
has received and is scheduled to receive. 
Æ 
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