I 
115TH CONGRESS 
2D SESSION 
H. R. 5841 
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 invest-
ment, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 16, 2018 
Mr. PITTENGER introduced the following bill; which was referred to the Com-
mittee on Foreign Affairs, and in addition to the Committees on Finan-
cial Services, Energy and Commerce, Intelligence (Permanent Select), 
and Oversight and Government Reform, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
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 invest-
ment, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Foreign Investment Risk Review Modernization Act of 
2018’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—FINDINGS AND SENSE OF CONGRESS 
Sec. 101. Findings and sense of Congress. 
TITLE II—DEFINITIONS 
Sec. 201. Definitions. 
TITLE III—IMPROVEMENTS TO THE OPERATIONS OF THE 
COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED STATES 
Sec. 301. Inclusion of partnership and side agreements in notice. 
Sec. 302. Declarations relating to certain covered transactions. 
Sec. 303. Timing for reviews and investigations. 
Sec. 304. Submission of certifications to Congress. 
Sec. 305. Analysis by Director of National Intelligence. 
Sec. 306. Information sharing. 
Sec. 307. Action by the President. 
Sec. 308. Factors to be considered. 
Sec. 309. Mitigation and other actions by the Committee to address national 
security risks. 
Sec. 310. Certification of notices and information. 
TITLE IV—MODIFICATION OF ANNUAL REPORT 
Sec. 401. Modification of annual report. 
TITLE V—RESOURCES, SPECIAL HIRING AUTHORITY, AND 
OUTREACH 
Sec. 501. Centralization of certain Committee functions. 
Sec. 502. CFIUS resource needs. 
Sec. 503. CFIUS outreach. 
TITLE VI—MISCELLANEOUS FIRRMA PROVISIONS 
Sec. 601. Conforming amendment. 
Sec. 602. Regulatory certainty for United States businesses. 
TITLE VII—COMMON SENSE CREDIT UNION CAPITAL RELIEF 
Sec. 701. Delay in effective date. 
TITLE VIII—EXPORT CONTROL REFORM 
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Sec. 801. Short title. 
Sec. 802. Definitions. 
Subtitle A—Authority and Administration of Controls 
Sec. 811. Short title. 
Sec. 812. Statement of policy. 
Sec. 813. Authority of the President. 
Sec. 814. Additional authorities. 
Sec. 815. Administration of export controls. 
Sec. 816. Control lists. 
Sec. 817. Licensing. 
Sec. 818. Compliance assistance. 
Sec. 819. Requirements to identify and control emerging, foundational, and 
other critical technologies in export control regulations. 
Sec. 820. Review relating to countries subject to comprehensive United States 
arms embargo. 
Sec. 821. Penalties. 
Sec. 822. Enforcement. 
Sec. 823. Administrative procedure. 
Sec. 824. Annual report to Congress. 
Sec. 825. Repeal. 
Sec. 826. Effect on other Acts. 
Sec. 827. Transition provisions. 
Subtitle B—Anti-Boycott Act of 2018 
Sec. 831. Short title. 
Sec. 832. Statement of policy. 
Sec. 833. Foreign boycotts. 
Sec. 834. Enforcement. 
Subtitle C—Sanctions Regarding Missile Proliferation and Chemical and 
Biological Weapons Proliferation 
Sec. 841. Missile proliferation control violations. 
Sec. 842. Chemical and biological weapons proliferation sanctions. 
Subtitle D—Administrative Authorities 
Sec. 851. Under Secretary of Commerce for Industry and Security. 
TITLE I—FINDINGS AND SENSE 
OF CONGRESS 
SEC. 101. FINDINGS AND SENSE OF CONGRESS. 
(a) FINDINGS.—The Congress finds the following: 
(1) According to a February 2016 report by the 
Department of Commerce’s International Trade Ad-
ministration, 12 million United States workers, 
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equivalent to 8.5 percent of the labor force, have 
jobs resulting from foreign investment, including 3.5 
million jobs in the manufacturing sector alone. 
(2) In 2016, new foreign direct investment in 
U.S. manufacturing totaled $129.4 billion. 
(3) The Department of Commerce’s Bureau of 
Economic Analysis concluded that in 2015, foreign- 
owned affiliates in the United States— 
(A) Contributed $894.5 billion in value 
added to the U.S. economy; 
(B) exported goods valued at $352.8 bil-
lion, accounting for nearly a quarter of total 
U.S. goods exports; 
(C) undertook $56.7 billion in research 
and development; and 
(D) the seven largest investing countries, 
all of which are United States allies—the 
United Kingdom, Japan, Germany, France, 
Canada, Switzerland, and the Netherlands—ac-
counted for 72.1 percent of U.S. affiliate value 
added and over 80 percent of affiliates’ R&D 
expenditures. 
(4) According to the Government Accountability 
Office (GAO), from 2011 to 2016, the number of 
transactions reviewed by the Committee on Foreign 
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Investment in the United States (CFIUS) grew by 
55 percent, while agency staff assigned to the re-
views increased by 11 percent. 
(5) In light of staffing constraints at CFIUS, 
GAO has cautioned against expanding CFIUS’s au-
thorities precipitously. According to a February 
2018 report (GAO–18–249), GAO noted: ‘‘Officials 
from Treasury and other member agencies are aware 
of pressures on their CFIUS staff given the current 
workload and have expressed concerns about possible 
workload increases.’’. GAO concluded: ‘‘Without at-
taining an understanding of the staffing levels need-
ed to address the current and future CFIUS work-
load, particularly if legislative changes to CFIUS’s 
authorities further expand its workload, CFIUS may 
be limited in its ability to fulfill its objectives and 
address threats to the national security of the 
United States.’’. 
(6) On March 30, 1954, Dwight David Eisen-
hower—five-star general, Supreme Allied Com-
mander, and 34th President of the United States— 
in his ‘‘Special Message to the Congress on Foreign 
Economic Policy’’, counseled: ‘‘Great mutual advan-
tages to buyer and seller, to producer and consumer, 
to investor and to the community where investment 
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is made, accrue from high levels of trade and invest-
ment.’’. He continued: ‘‘The internal strength of the 
American economy has evolved from such a system 
of mutual advantage. In the press of other problems 
and in the haste to meet emergencies, this nation— 
and many other nations of the free world—have all 
too often lost sight of this central fact.’’. President 
Eisenhower concluded: ‘‘If we fail in our trade pol-
icy, we may fail in all. Our domestic employment, 
our standard of living, our security, and the soli-
darity of the free world—all are involved.’’. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) foreign investment provides substantial ben-
efits to the United States, including the promotion 
of economic growth, productivity, innovation, com-
petitiveness, and job creation, thereby enhancing 
U.S. national security; 
(2) maintaining the commitment of the United 
States to an open investment policy encourages 
other countries to act similarly and helps expand 
foreign markets for U.S. businesses; 
(3) the Committee on Foreign Investment in 
the United States, as a complement to domestic and 
multilateral export control regimes, plays a critical 
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role in protecting the national security of the United 
States; 
(4) in order to maintain the Committee’s effec-
tiveness and guard against mission creep, CFIUS 
should remain narrowly focused on confronting risks 
related to national security; 
(5) it is essential that the member agencies of 
the Committee are adequately resourced and able to 
hire appropriately qualified individuals in a timely 
manner so that CFIUS may promptly complete 
transaction reviews, identify and respond to evolving 
national security risks, and enforce mitigation agree-
ments effectively; 
(6) the President should carry out international 
outreach to promote the benefits of foreign invest-
ment for global economic growth, while also assisting 
United States partners to address national security 
risks; and 
(7) it is the policy of the United States to en-
thusiastically welcome and support foreign invest-
ment, consistent with national security consider-
ations. 
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TITLE II—DEFINITIONS 
SEC. 201. DEFINITIONS. 
Section 721(a) of the Defense Production Act of 
1950 (50 U.S.C. 4565(a)) is amended— 
(1) by striking paragraphs (2), (3), and (4) and 
inserting the following: 
‘‘(2) CONTROL.—The term ‘control’ means the 
power, direct or indirect, whether or not exercised, 
to determine, direct, or decide important matters af-
fecting an entity, subject to regulations prescribed 
by the Committee. 
‘‘(3) COVERED TRANSACTION.— 
‘‘(A) IN
GENERAL.—The term ‘covered 
transaction’ means any transaction described in 
subparagraph (B) or (C) that is proposed, 
pending, or completed on or after the date of 
the enactment of the Foreign Investment Risk 
Review Modernization Act of 2018. 
‘‘(B) 
TRANSACTIONS
DESCRIBED.—A 
transaction described in this subparagraph is 
any of the following: 
‘‘(i) Any merger, acquisition, takeover, 
or joint venture that is proposed or pend-
ing after August 23, 1988, by or with any 
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foreign person that could result in foreign 
control of any United States business. 
‘‘(ii) The purchase or lease by, or con-
cession to, a foreign person of private or 
public real estate that— 
‘‘(I) is— 
‘‘(aa) located in the United 
States and is, or is in close prox-
imity to, a United States military 
installation; or 
‘‘(bb) itself, or is located at 
and will function as part of, an 
air or sea port; 
‘‘(II) is not a single housing unit, 
as defined by the Bureau of the Cen-
sus; 
‘‘(III) is not in an urbanized 
area, as set forth by the Bureau of 
the Census in its most recent census, 
except as otherwise prescribed by the 
Committee in regulations in consulta-
tion with the Secretary of Defense; 
and 
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‘‘(IV) meets such other criteria 
as the Committee prescribes by regu-
lation. 
‘‘(iii) Any change in the rights that a 
foreign person has with respect to a United 
States business in which the foreign person 
has an investment, if that change is likely 
to result in foreign control of the United 
States business. 
‘‘(iv) Any transaction or other device 
entered into or employed for the purpose of 
evading this section, subject to regulations 
prescribed by the Committee. 
‘‘(C) SENSITIVE TRANSACTIONS INVOLVING 
COUNTRIES OF SPECIAL CONCERN.— 
‘‘(i) IN GENERAL.—A transaction de-
scribed in this subparagraph is any invest-
ment in an unaffiliated United States busi-
ness by a foreign person that— 
‘‘(I) is— 
‘‘(aa) a national or a govern-
ment of, or a foreign entity orga-
nized under the laws of, a coun-
try of special concern; or 
‘‘(bb) a foreign entity— 
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‘‘(AA) over which con-
trol is exercised or exer-
cisable by a national or a 
government of, or by a for-
eign entity organized under 
the laws of, a country of 
special concern; or 
‘‘(BB) in which the 
government of a country of 
special concern has a sub-
stantial interest; and 
‘‘(II) as a result of the trans-
action, could obtain–— 
‘‘(aa) 
sensitive 
personal 
data, as defined by regulations 
prescribed by the Committee, of 
United States citizens, if such 
data may be exploited in a man-
ner that threatens national secu-
rity; or 
‘‘(bb) influence over sub-
stantive decisionmaking of the 
United States business regarding 
the use, development, acquisition, 
or release of— 
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‘‘(AA) 
sensitive 
per-
sonal data of United States 
citizens, as described in item 
(aa); or 
‘‘(BB) 
critical 
tech-
nologies. 
‘‘(III) COUNTRIES
OF
SPECIAL 
CONCERN.—For the purposes of this 
subparagraph, the term ‘countries of 
special concern’ means— 
‘‘(aa) any foreign country 
that is subject to export restric-
tions pursuant to section 744.21 
of title 15, Code of Federal Reg-
ulations; 
‘‘(bb) any country deter-
mined by the Secretary of State 
to be a state sponsor of ter-
rorism; and 
‘‘(cc) any country that— 
‘‘(AA) is subject to a 
United States arms embar-
go, as specified in list D:5 of 
Country Group D in Supple-
ment No. 1 to part 740 of 
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title 15, Code of Federal 
Regulations; and 
‘‘(BB) is identified as a 
country of special concern in 
regulations prescribed by the 
Committee. 
‘‘(ii) INVESTMENT DEFINED.—For the 
purposes of this subparagraph, the term 
‘investment’ means the acquisition of an 
equity interest, including contingent equity 
interest, as further defined in regulations 
prescribed by the Committee. 
‘‘(iii) UNAFFILIATED UNITED STATES 
BUSINESS DEFINED.—For the purposes of 
this subparagraph, with respect to an in-
vestment described under clause (i), and as 
further defined in regulations prescribed by 
the Committee, the term ‘unaffiliated 
United States business’ means a United 
States business that is not subject to the 
same ultimate ownership of the foreign 
person undertaking the investment. 
‘‘(iv) WAIVER.—The President may 
waive any requirement of this subpara-
graph upon reporting to the Committees 
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on Financial Services and Foreign Affairs 
of the House and the Committees on 
Banking, Housing, and Urban Affairs and 
Foreign Relations of the Senate that the 
waiver is important to the national interest 
of the United States, with a detailed expla-
nation of the reasons therefor. 
‘‘(D) TRANSFERS
OF
CERTAIN
ASSETS 
PURSUANT TO BANKRUPTCY PROCEEDINGS OR 
OTHER DEFAULTS.—The Committee shall pre-
scribe regulations to clarify that the term ‘cov-
ered transaction’ includes any transaction de-
scribed in subparagraphs (B) or (C) that arises 
pursuant to a bankruptcy proceeding or other 
form of default on debt. 
‘‘(4) 
FOREIGN
GOVERNMENT-CONTROLLED 
TRANSACTION.—The term ‘foreign government-con-
trolled transaction’ means any covered transaction 
that could result in control of a United States busi-
ness by a foreign government or a person controlled 
by or acting on behalf of a foreign government.’’; 
(2) by amending paragraph (7) to read as fol-
lows: 
‘‘(7) 
CRITICAL
TECHNOLOGIES.—The 
term 
‘critical technologies’ means— 
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‘‘(A) defense articles or defense services 
covered by the United States Munitions List 
(USML), which is set forth in the International 
Traffic in Arms Regulations (ITAR) (22 C.F.R. 
parts 120–130); 
‘‘(B) those items specified on the Com-
merce Control List (CCL) set forth in Supple-
ment No. 1 to part 774 of the Export Adminis-
tration Regulations (EAR) (15 C.F.R. parts 
730–774) that are controlled pursuant to multi-
lateral regimes (i.e. for reasons of national se-
curity, chemical and biological weapons pro-
liferation, nuclear nonproliferation, or missile 
technology), as well as those that are controlled 
for reasons of regional stability or surreptitious 
listening; 
‘‘(C) specially designed and prepared nu-
clear equipment, parts and components, mate-
rials, software, and technology specified in the 
Assistance to Foreign Atomic Energy Activities 
regulations (10 C.F.R. part 810), and nuclear 
facilities, equipment, and material specified in 
the Export and Import of Nuclear Equipment 
and Material regulations (10 C.F.R. part 110); 
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‘‘(D) select agents and toxins specified in 
the Select Agents and Toxins regulations (7 
C.F.R. part 331, 9 C.F.R. part 121, and 42 
C.F.R. part 73); and 
‘‘(E) emerging, foundational, or other crit-
ical technologies that are controlled pursuant to 
section 819 of the Foreign Investment Risk Re-
view Modernization Act of 2018.’’; and 
(3) by adding at the end the following: 
‘‘(9) FOREIGN PERSON.—The term ‘foreign per-
son’ means— 
‘‘(A) any foreign national, foreign govern-
ment, or foreign entity; or 
‘‘(B) any entity over which control is exer-
cised or exercisable by a foreign national, for-
eign government, or foreign entity. 
‘‘(10) SUBSTANTIAL
INTEREST.—The term 
‘substantial interest’ has the meaning given to such 
term in regulations prescribed by the Committee, 
but does not include a voting interest of less than 
ten percent or ownership interests held or acquired 
solely for the purpose of passive investment. 
‘‘(11) UNITED
STATES
BUSINESS.—The term 
‘United States business’ means any entity, irrespec-
tive of the nationality of the persons that control it, 
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engaged in interstate commerce in the United 
States, but only to the extent of its activities in 
interstate commerce.’’. 
TITLE III—IMPROVEMENTS TO 
THE 
OPERATIONS 
OF 
THE 
COMMITTEE ON FOREIGN IN-
VESTMENT IN THE UNITED 
STATES 
SEC. 301. INCLUSION OF PARTNERSHIP AND SIDE AGREE-
MENTS IN NOTICE. 
Section 721(b)(1)(C) of the Defense Production Act 
of 1950 (50 U.S.C. 4565(b)(1)(C)) is amended by adding 
at the end the following: 
‘‘(iv) INCLUSION
OF
PARTNERSHIP 
AND SIDE AGREEMENTS.—Subject to regu-
lations prescribed by the Committee, the 
Committee may require a written notice 
submitted under clause (i) by a party to a 
covered transaction to include a copy of 
any partnership agreements, integration 
agreements, or other side agreements relat-
ing to the transaction, as specified in regu-
lations prescribed by the Committee.’’. 
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SEC. 302. DECLARATIONS RELATING TO CERTAIN COVERED 
TRANSACTIONS. 
(a) IN GENERAL.—Section 721(b)(1)(C) of the De-
fense Production Act of 1950 (50 U.S.C. 4565(b)(1)(C)), 
as amended by section 301, is further amended by adding 
at the end the following: 
‘‘(v) DECLARATIONS
WITH
RESPECT 
TO CERTAIN COVERED TRANSACTIONS.— 
‘‘(I) 
VOLUNTARY
DECLARA-
TIONS.—For the purpose of expe-
diting the review of certain covered 
transactions that the Committee de-
termines are likely to pose limited 
risk, the Committee may prescribe 
regulations to permit parties to the 
transaction to submit a declaration 
with basic information regarding the 
transaction, unless the parties submit 
a written notice under clause (i). 
‘‘(II) 
MANDATORY
DECLARA-
TIONS.— 
‘‘(aa) IN
GENERAL.—The 
Committee may prescribe regula-
tions to require the parties to a 
covered transaction to submit a 
declaration described in sub-
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clause (I) with respect to the 
transaction if the transaction in-
volves an investment that results 
in the acquisition, directly or in-
directly, of a substantial interest 
in a United States business by a 
foreign person in which a foreign 
government has, directly or indi-
rectly, a substantial interest. 
‘‘(bb) SUBMISSION OF WRIT-
TEN
NOTICE
AS
AN
ALTER-
NATIVE.—Parties to a covered 
transaction for which a declara-
tion is required under this clause 
may instead elect to submit a 
written notice under clause (i). 
‘‘(cc) TIMING
OF
SUBMIS-
SION.—With respect to the regu-
lations described under subclause 
(I), the Committee may not re-
quire a declaration to be sub-
mitted more than 30 days in ad-
vance of the completion of the 
transaction. 
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‘‘(III) PENALTIES.—The Com-
mittee may impose a penalty pursuant 
to subsection (h)(3)(A) with respect to 
a party that fails to comply with this 
clause. 
‘‘(IV) COMMITTEE RESPONSE TO 
DECLARATION.— 
‘‘(aa) IN
GENERAL.—Upon 
receiving a declaration under this 
clause with respect to a trans-
action, the Committee may, at its 
discretion— 
‘‘(AA) request that the 
parties to the transaction 
file a written notice under 
clause (i), provided that the 
Committee includes an ex-
planation of the reasons for 
the request; 
‘‘(BB) inform the par-
ties to the transaction that 
the Committee is not able to 
complete action under this 
section with respect to the 
transaction on the basis of 
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the declaration and that the 
parties may file a written 
notice under clause (i) to 
seek 
written 
notification 
from the Committee that the 
Committee has completed all 
action under this section 
with respect to the trans-
action; 
‘‘(CC) initiate a unilat-
eral review of the trans-
action under subparagraph 
(D); or 
‘‘(DD) notify the par-
ties in writing that the Com-
mittee has completed all ac-
tion under this section with 
respect to the transaction. 
‘‘(bb) TIMING.—The Com-
mittee shall take action under 
item (aa) within 15 days of re-
ceiving a declaration under this 
clause. 
‘‘(cc) REFILING
OF
DEC-
LARATION.—The Committee may 
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not request or recommend that a 
declaration be withdrawn and 
refiled, except to permit parties 
to a transaction to correct mate-
rial errors or omissions. 
‘‘(V) 
REGULATIONS.—In 
pre-
scribing regulations establishing re-
quirements for declarations submitted 
under this clause, the Committee shall 
ensure that such declarations are sub-
mitted as abbreviated notifications 
that do not generally exceed 5 pages 
in length. 
‘‘(VI) INVESTMENT
DEFINED.— 
For the purposes of this clause, the 
term ‘investment’ means the acquisi-
tion of an equity interest, including 
contingent equity interest, as further 
defined in regulations prescribed by 
the Committee.’’. 
(b) STIPULATIONS REGARDING TRANSACTIONS.— 
Section 721(b)(1)(C) of the Defense Production Act of 
1950 (50 U.S.C. 4565(b)(1)(C)), as amended by this sec-
tion, is further amended by adding at the end the fol-
lowing: 
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‘‘(viii) 
STIPULATIONS
REGARDING 
TRANSACTIONS.— 
‘‘(I) IN GENERAL.—In a written 
notice submitted under clause (i) or a 
declaration submitted under clause (v) 
with respect to a transaction, a party 
to the transaction may— 
‘‘(aa) 
stipulate 
that 
the 
transaction is a covered trans-
action; and 
‘‘(bb) if the party stipulates 
that the transaction is a covered 
transaction under item (aa), stip-
ulate that the transaction is a 
foreign 
government-controlled 
transaction. 
‘‘(II) BASIS FOR STIPULATION.— 
A written notice submitted under 
clause (i) or a declaration submitted 
under clause (v) that includes a stipu-
lation under subclause (I) shall in-
clude a description of the basis for the 
stipulation.’’. 
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SEC. 303. TIMING FOR REVIEWS AND INVESTIGATIONS. 
Section 721(b) of the Defense Production Act of 
1950 (50 U.S.C. 4565(b)) is amended— 
(1) in paragraph (2), by striking subparagraph 
(C) and inserting the following: 
‘‘(C) TIMING.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), any investigation under 
subparagraph (A) shall be completed be-
fore the end of the 45-day period begin-
ning on the date on which the investigation 
commenced. 
‘‘(ii) 
EXTENSION
FOR
EXTRAOR-
DINARY CIRCUMSTANCES.— 
‘‘(I) IN
GENERAL.—In extraor-
dinary circumstances (as defined by 
the Committee in regulations), the 
chairperson may, at the request of the 
head of the lead agency, extend an in-
vestigation under subparagraph (A) 
for not more than one 15-day period. 
‘‘(II) 
NONDELEGATION.—The 
authority of the chairperson and the 
head of the lead agency referred to in 
subclause (I) may not be delegated to 
any person other than the Deputy 
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Secretary of the Treasury or the dep-
uty head (or equivalent thereof) of the 
lead agency, as the case may be. 
‘‘(III) NOTIFICATION
TO
PAR-
TIES.—If the Committee extends the 
deadline under subclause (I) with re-
spect to a covered transaction, the 
Committee shall notify the parties to 
the transaction of the extension.’’; and 
(2) by adding at the end the following: 
‘‘(8) TOLLING OF DEADLINES DURING LAPSE IN 
APPROPRIATIONS.—Any deadline or time limitation 
under this subsection shall be tolled during a lapse 
in appropriations.’’. 
SEC. 304. SUBMISSION OF CERTIFICATIONS TO CONGRESS. 
Section 721(b)(3)(C) of the Defense Production Act 
of 1950 (50 U.S.C. 4565(b)(3)(C)) is amended— 
(1) in clause (i), by amending subclause (II) to 
read as follows: 
‘‘(II) a certification that all rel-
evant national security factors, includ-
ing factors enumerated in subsection 
(f), have received full consideration.’’; 
and 
(2) by adding at the end the following: 
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‘‘(v) AUTHORITY
TO
CONSOLIDATE 
DOCUMENTS.—Instead of transmitting a 
separate certified notice or certified report 
under subparagraph (A) or (B) with re-
spect to each covered transaction, the 
Committee may, on a monthly basis, trans-
mit such notices and reports in a consoli-
dated document to the Members of Con-
gress specified in clause (iii).’’. 
SEC. 305. ANALYSIS BY DIRECTOR OF NATIONAL INTEL-
LIGENCE. 
Section 721(b)(4) of the Defense Production Act of 
1950 (50 U.S.C. 4565(b)(4)) is amended— 
(1) by striking subparagraph (A) and inserting 
the following: 
‘‘(A) ANALYSIS REQUIRED.— 
‘‘(i) IN
GENERAL.—The Director of 
National Intelligence shall expeditiously 
carry out a thorough analysis of any threat 
to the national security of the United 
States posed by any covered transaction, 
which shall include the identification of 
any recognized gaps in the collection of in-
telligence relevant to the analysis. 
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‘‘(ii) VIEWS OF INTELLIGENCE AGEN-
CIES.—The Director shall seek and incor-
porate into the analysis required by clause 
(i) the views of all affected or appropriate 
intelligence agencies with respect to the 
transaction. 
‘‘(iii) UPDATES.—At the request of 
the lead agency, the Director shall update 
the analysis conducted under clause (i) 
with respect to a covered transaction with 
respect to which an agreement was entered 
into under subsection (l)(3)(A). 
‘‘(iv) INDEPENDENCE
AND
OBJEC-
TIVITY.—The Committee shall ensure that 
its processes under this section preserve 
the ability of the Director to conduct an 
analysis under clause (i) that is inde-
pendent, objective, and consistent with all 
applicable directives, policies, and analytic 
tradecraft standards of the intelligence 
community.’’; 
(2) by redesignating subparagraphs (B), (C), 
and (D) as subparagraphs (C), (D), and (E), respec-
tively; 
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(3) by inserting after subparagraph (A) the fol-
lowing: 
‘‘(B) BASIC THREAT INFORMATION.— 
‘‘(i) IN
GENERAL.—The Director of 
National Intelligence may provide the 
Committee with basic information regard-
ing any threat to the national security of 
the United States posed by a covered 
transaction described in clause (ii) instead 
of conducting the analysis required by sub-
paragraph (A). 
‘‘(ii) COVERED
TRANSACTION
DE-
SCRIBED.—A covered transaction is de-
scribed in this clause if— 
‘‘(I) the transaction is described 
in subsection (a)(3)(B)(ii); 
‘‘(II) the Director of National In-
telligence has completed an analysis 
pursuant to subparagraph (A) involv-
ing each foreign person that is a party 
to the transaction during the 12 
months preceding the review or inves-
tigation of the transaction under this 
section; or 
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‘‘(III) the transaction otherwise 
meets criteria agreed upon by the 
Committee and the Director of Na-
tional Intelligence for purposes of this 
subparagraph.’’; and 
(4) by adding at the end the following: 
‘‘(F) ASSESSMENT
OF
OPERATIONAL
IM-
PACT.—The Director may provide to the Com-
mittee an assessment, separate from the anal-
yses under subparagraphs (A) and (B), of any 
operational impact of a covered transaction on 
the intelligence community and a description of 
any actions that have been or will be taken to 
mitigate any such impact. 
‘‘(G) SUBMISSION
TO
CONGRESS.—The 
Committee shall include the analysis required 
by subparagraph (A) with respect to a covered 
transaction in the report required under sub-
section (m)(1), subject to the requirements of 
subsection (m)(5).’’. 
SEC. 306. INFORMATION SHARING. 
Section 721(c) of the Defense Production Act of 1950 
(50 U.S.C. 4565(c)) is amended— 
(1) by striking ‘‘Any information’’ and inserting 
the following: 
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‘‘(1) IN GENERAL.—Any information’’; and 
(2) by adding at the end the following: 
‘‘(2) EXCEPTION.—Paragraph (1) shall not pro-
hibit the disclosure of information or documentary 
material that the party filing such information or 
material consented to be disclosed to third parties.’’. 
SEC. 307. ACTION BY THE PRESIDENT. 
(a) IN GENERAL.—Section 721(d)(2) of the Defense 
Production Act of 1950 (50 U.S.C. 4565(d)(2)) is amend-
ed by striking ‘‘not later than 15 days’’ and all that fol-
lows and inserting the following: ‘‘with respect to a cov-
ered transaction not later than 15 days after the earlier 
of— 
‘‘(A) the date on which the investigation of 
the transaction under subsection (b) is com-
pleted; or 
‘‘(B) the date on which the Committee oth-
erwise refers the transaction to the President 
under subsection (l)(4).’’. 
(b) CIVIL PENALTIES.—Section 721(h)(3)(A) of the 
Defense 
Production 
Act 
of 
1950 
(50 
U.S.C. 
4565(h)(3)(A)) is amended by striking ‘‘including any 
mitigation’’ and all that follows through ‘‘subsection (l)’’ 
and inserting ‘‘including any mitigation agreement entered 
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into, conditions imposed, or order issued pursuant to this 
section’’. 
SEC. 308. FACTORS TO BE CONSIDERED. 
Section 721(f) of the Defense Production Act of 1950 
(50 U.S.C. 4565(f)) is amended— 
(1) in paragraph (4), by striking ‘‘proposed or 
pending’’; 
(2) by striking paragraph (5); 
(3) by redesignating paragraphs (6), (7), (8), 
(9), (10), and (11) as paragraphs (5), (6), (7), (8), 
(9), and (16), respectively; 
(4) in paragraph (9), as so redesignated, by 
striking ‘‘and’’ at the end; and 
(5) by inserting after paragraph (9), as so re-
designated, the following: 
‘‘(10) the degree to which the covered trans-
action is likely to threaten the ability of the United 
States Government to acquire or maintain the equip-
ment and systems that are necessary for defense, in-
telligence, or other national security functions; 
‘‘(11) the potential national security-related ef-
fects of the cumulative control of any one type of 
critical infrastructure, energy asset, material, or 
critical technology by a foreign person; 
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‘‘(12) whether any foreign person that would 
acquire control of a United States business as a re-
sult of the covered transaction has a history of— 
‘‘(A) complying with United States laws 
and regulations and prior adherence, if applica-
ble, to any agreement or condition, as described 
under (l)(1)(A); and 
‘‘(B) adhering to contracts or other agree-
ments with entities of the United States Gov-
ernment; 
‘‘(13) the extent to which the covered trans-
action is likely to release, either directly or indi-
rectly, sensitive personal data of United States citi-
zens to a foreign person that may exploit that infor-
mation in a manner that threatens national security; 
‘‘(14) whether the covered transaction is likely 
to exacerbate cybersecurity vulnerabilities or is likely 
to result in a foreign government gaining a signifi-
cant new capability to engage in malicious cyber-en-
abled activities against the United States, including 
such activities designed to affect the outcome of any 
election for Federal office; 
‘‘(15) whether the covered transaction is likely 
to expose any information regarding sensitive na-
tional security matters or sensitive procedures or op-
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erations of a Federal law enforcement agency with 
national security responsibilities to a foreign person 
not authorized to receive that information; and’’. 
SEC. 309. MITIGATION AND OTHER ACTIONS BY THE COM-
MITTEE TO ADDRESS NATIONAL SECURITY 
RISKS. 
Section 721(l) of the Defense Production Act of 1950 
(50 U.S.C. 4565(l)) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (A)— 
(i) in the heading, by striking ‘‘IN 
GENERAL’’ and inserting ‘‘AGREEMENTS 
AND CONDITIONS’’; 
(ii) by striking ‘‘The Committee’’ and 
inserting the following: 
‘‘(i) IN GENERAL.—The Committee’’; 
and 
(iii) by adding at the end the fol-
lowing: 
‘‘(ii) 
ABANDONMENT
OF
TRANS-
ACTIONS.—If a party to a covered trans-
action has voluntarily chosen to abandon 
the transaction, the Committee or lead 
agency, as the case may be, may negotiate, 
enter into or impose, and enforce any 
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agreement or condition with any party to 
the covered transaction for purposes of ef-
fectuating such abandonment and miti-
gating any threat to the national security 
of the United States that arises as a result 
of the covered transaction. 
‘‘(iii) AGREEMENTS AND CONDITIONS 
RELATING
TO
COMPLETED
TRANS-
ACTIONS.—The Committee or lead agency, 
as the case may be, may negotiate, enter 
into or impose, and enforce any agreement 
or condition with any party to a completed 
covered transaction in order to mitigate 
any interim threat to the national security 
of the United States that may arise as a 
result of the covered transaction until such 
time that the Committee has completed ac-
tion pursuant to subsection (b) or the 
President has taken action pursuant to 
subsection (d) with respect to the trans-
action.’’; 
(B) by amending subparagraph (B) to read 
as follows: 
‘‘(B) TREATMENT OF OUTDATED AGREE-
MENTS OR CONDITIONS.—The chairperson and 
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the head of any applicable lead agency shall pe-
riodically review the appropriateness of an 
agreement or condition described under sub-
paragraph (A) and terminate, phase out, or 
otherwise amend any agreement or condition if 
a threat no longer requires mitigation through 
the agreement or condition.’’; and 
(C) by adding at the end the following: 
‘‘(C) LIMITATIONS.—An agreement may 
not be entered into or condition imposed under 
subparagraph (A) with respect to a covered 
transaction unless the Committee determines 
that the agreement or condition resolves the na-
tional security concerns posed by the trans-
action, taking into consideration whether the 
agreement or condition is reasonably calculated 
to— 
‘‘(i) be effective; 
‘‘(ii) allow for compliance with the 
terms of the agreement or condition in an 
appropriately verifiable way; and 
‘‘(iii) enable effective monitoring of 
compliance with and enforcement of the 
terms of the agreement or condition. 
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‘‘(D) JURISDICTION.—The provisions of 
section 706(b) shall apply to any mitigation 
agreement entered into or condition imposed 
under subparagraph (A).’’; and 
(2) by adding at the end the following: 
‘‘(4) REFERRAL
TO
PRESIDENT.—The Com-
mittee may, at any time during the review or inves-
tigation of a covered transaction under subsection 
(b), complete the action of the Committee with re-
spect to the transaction and refer the transaction to 
the President for action pursuant to subsection (d). 
‘‘(5) RISK-BASED ANALYSIS REQUIRED.— 
‘‘(A) IN GENERAL.—Any determination of 
the Committee to refer a covered transaction to 
the President under paragraph (4), or to nego-
tiate, enter into, impose, or enforce any agree-
ment or condition under paragraph (1)(A) with 
respect to a covered transaction, shall be based 
on a risk-based analysis, conducted by the Com-
mittee, of the effects on the national security of 
the United States of the covered transaction, 
which shall include— 
‘‘(i) an assessment of the threat, 
vulnerabilities, and consequences to na-
tional security resulting from the trans-
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action, as these terms are defined or clari-
fied in guidance and regulations issued by 
the Committee; and 
‘‘(ii) an identification of each relevant 
factor described in subsection (f) that the 
transaction may substantially implicate. 
‘‘(B) COMPLIANCE PLANS.— 
‘‘(i) IN GENERAL.—In the case of a 
covered transaction with respect to which 
an agreement or condition is entered into 
under paragraph (1)(A), the Committee or 
lead agency, as the case may be, shall for-
mulate, adhere to, and keep updated a 
plan for monitoring compliance with the 
agreement or condition. 
‘‘(ii) ELEMENTS.—Each plan required 
by clause (i) with respect to an agreement 
or condition entered into under paragraph 
(1)(A) shall include an explanation of— 
‘‘(I) which member of the Com-
mittee will have primary responsibility 
for monitoring compliance with the 
agreement or condition; 
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‘‘(II) how compliance with the 
agreement or condition will be mon-
itored; 
‘‘(III) how frequently compliance 
reviews will be conducted; 
‘‘(IV) whether an independent 
entity will be utilized under subpara-
graph (D) to conduct compliance re-
views; and 
‘‘(V) what actions will be taken if 
the parties fail to cooperate regarding 
monitoring compliance with the agree-
ment or condition. 
‘‘(C) EFFECT OF LACK OF COMPLIANCE.— 
If, at any time after a mitigation agreement or 
condition is entered into or imposed under 
paragraph (1)(A), the Committee or lead agen-
cy, as the case may be, determines that a party 
or parties to the agreement or condition are not 
in compliance with the terms of the agreement 
or condition, the Committee or lead agency 
may, in addition to the authority of the Com-
mittee to impose penalties pursuant to sub-
section (h)(3)(A) and to unilaterally initiate a 
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essary to prevent any significant conflict of in-
terest from arising with respect to the entity 
and the parties to the transaction. 
‘‘(E) SUCCESSORS
AND
ASSIGNS.—Any 
agreement or condition entered or imposed 
under paragraph (1)(A) shall be considered 
binding on all successors and assigns, unless 
and until the agreement or condition terminates 
on its own terms or is otherwise terminated by 
the Committee in the Committee’s sole discre-
tion. 
‘‘(F) ADDITIONAL
COMPLIANCE
MEAS-
URES.—Subject to subparagraphs (A) through 
(D), the Committee shall develop and agree 
upon methods for evaluating compliance with 
any agreement entered into or condition im-
posed with respect to a covered transaction that 
will allow the Committee to adequately ensure 
compliance 
without 
unnecessarily 
diverting 
Committee resources from assessing any new 
covered transaction for which a written notice 
under clause (i) of subsection (b)(1)(C) has 
been filed, and if necessary, reaching a mitiga-
tion agreement with or imposing a condition on 
a party to such covered transaction or any cov-
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ered transaction for which a review has been re-
opened for any reason.’’. 
SEC. 310. CERTIFICATION OF NOTICES AND INFORMATION. 
Section 721(n) of the Defense Production Act of 
1950 (50 U.S.C. 4565(n)) is amended— 
(1) by redesignating paragraphs (1) and (2) as 
subparagraphs (A) and (B), respectively, and by 
moving such subparagraphs, as so redesignated, 2 
ems to the right; 
(2) by striking ‘‘Each notice’’ and inserting the 
following: 
‘‘(1) IN GENERAL.—Each notice’’; and 
(3) by adding at the end the following: 
‘‘(2) EFFECT OF FAILURE TO SUBMIT.—The 
Committee may not complete a review under this 
section of a covered transaction and may recommend 
to the President that the President suspend or pro-
hibit the transaction or require divestment under 
subsection (d) if the Committee determines that a 
party to the transaction has— 
‘‘(A) failed to submit a statement required 
by paragraph (1); or 
‘‘(B) included false or misleading informa-
tion in a notice or information described in 
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paragraph (1) or omitted material information 
from such notice or information. 
‘‘(3) APPLICABILITY OF LAW ON FRAUD AND 
FALSE
STATEMENTS.—The Committee shall pre-
scribe regulations expressly providing for the appli-
cation of section 1001 of title 18, United States 
Code, to all information provided to the Committee 
under this section by any party to a covered trans-
action.’’. 
TITLE IV—MODIFICATION OF 
ANNUAL REPORT 
SEC. 401. MODIFICATION OF ANNUAL REPORT. 
Section 721(m) of the Defense Production Act of 
1950 (50 U.S.C. 4565(m)) is amended— 
(1) in paragraph (2), by amending subpara-
graph (A) to read as follows: 
‘‘(A) A list of all notices filed and all re-
views or investigations of covered transactions 
completed during the period, with— 
‘‘(i) a description of the outcome of 
each review or investigation, including 
whether an agreement was entered into or 
condition was imposed under subsection 
(l)(3)(A) with respect to the transaction 
being reviewed or investigated, and wheth-
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er the President took any action under this 
section with respect to that transaction; 
‘‘(ii) the nature of the business activi-
ties or products of the United States busi-
ness with which the transaction was en-
tered into or intended to be entered into; 
and 
‘‘(iii) information about any with-
drawal from the process.’’; 
(2) in paragraph (3)— 
(A) by striking ‘‘CRITICAL TECHNOLOGIES’’ 
and all that follows through ‘‘In order to as-
sist’’ 
and 
inserting 
‘‘CRITICAL
TECH-
NOLOGIES.—In order to assist’’; 
(B) by striking subparagraph (B); and 
(C) by redesignating clauses (i) and (ii) as 
subparagraphs (A) and (B), respectively, and 
by moving such subparagraphs, as so redesig-
nated, 2 ems to the left; and 
(3) by adding at the end the following: 
‘‘(4) ADDITIONAL CONTENTS OF REPORT.— 
‘‘(A) Statistics on compliance reviews con-
ducted and actions taken by the Committee 
under subsection (l)(6), including subparagraph 
(D) of that subsection (l)(6), during that period 
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and a description of any actions taken by the 
Committee to impose penalties or initiate a uni-
lateral 
review 
pursuant 
to 
subsection 
(b)(1)(D)(iii)(I). 
‘‘(B) Cumulative and trend information on 
the number of declarations filed under sub-
section (b)(1)(C)(v), the actions taken by the 
Committee in response to declarations, the busi-
ness sectors involved in the declarations which 
have been made, and the countries involved in 
such declarations. 
‘‘(C) The number of new hires made since 
the preceding report through the authorities de-
scribed under subsection (q), along with sum-
mary statistics, position titles, and associated 
pay grades for such hires and a summary of 
such hires’ responsibilities in administering this 
section. 
‘‘(5) CLASSIFICATION; AVAILABILITY
OF
RE-
PORT.— 
‘‘(A) 
CLASSIFICATION.—All 
appropriate 
portions of the annual report required by para-
graph (1) may be classified. 
‘‘(B) PUBLIC AVAILABILITY OF UNCLASSI-
FIED VERSION.—An unclassified version of the 
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report required by paragraph (1), as appro-
priate and consistent with safeguarding na-
tional security and privacy, shall be made avail-
able to the public. Information regarding trade 
secrets or business confidential information may 
be included in the classified version and may 
not be made available to the public in the un-
classified version. 
‘‘(C) EXCEPTIONS TO FREEDOM OF INFOR-
MATION ACT.—The exceptions to subsection (a) 
of section 552 of title 5, United States Code, 
provided for under subsection (b) of that sec-
tion shall apply with respect to the report re-
quired by paragraph (1).’’. 
TITLE V—RESOURCES, SPECIAL 
HIRING 
AUTHORITY, 
AND 
OUTREACH 
SEC. 501. CENTRALIZATION OF CERTAIN COMMITTEE 
FUNCTIONS. 
Section 721 of the Defense Production Act of 1950 
(50 U.S.C. 4565) is amended by adding at the end the 
following: 
‘‘(o) CENTRALIZATION
OF
CERTAIN
COMMITTEE 
FUNCTIONS.— 
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‘‘(1) IN GENERAL.—The chairperson, in con-
sultation with the Committee, may centralize certain 
functions of the Committee within the Department 
of the Treasury for the purpose of enhancing inter-
agency coordination and collaboration in carrying 
out the functions of the Committee under this sec-
tion. 
‘‘(2) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be construed as limiting the au-
thority of any department or agency represented on 
the Committee to represent its own interests before 
the Committee.’’. 
SEC. 502. CFIUS RESOURCE NEEDS. 
(a) UNIFIED BUDGET REQUEST.—Section 721 of the 
Defense Production Act of 1950 (50 U.S.C. 4565), as 
amended by section 501, is further amended by adding 
at the end the following: 
‘‘(p) UNIFIED BUDGET REQUEST.— 
‘‘(1) IN GENERAL.—The President may include, 
in the budget of the Department of the Treasury for 
a fiscal year (as submitted to Congress with the 
budget of the President under section 1105(a) of 
title 31, United States Code), a unified request for 
funding of all operations under this section con-
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ducted by all of the departments and agencies rep-
resented on the Committee. 
‘‘(2) FORM OF BUDGET REQUEST.—A unified 
request under paragraph (1) shall be detailed and 
include the amounts and staffing levels requested for 
each department or agency represented on the Com-
mittee to carry out the functions of that department 
or agency under this section.’’. 
(b) ANNUAL SPENDING PLAN.—Not later than 90 
days following the date of enactment of this Act, and an-
nually thereafter, the chairperson of the Committee on 
Foreign Investment in the United States shall transmit 
to the Committees on Appropriations and Financial Serv-
ices of the House of Representatives and the Committees 
on Appropriations and Banking, Housing, and Urban Af-
fairs of the Senate a detailed spending plan to expedi-
tiously meet the requirements of subsections (b), (l), and 
(m) of section 721 of the Defense Production Act of 1950, 
as amended by this Act, including estimated expenditures 
and staffing levels required by operations of the Com-
mittee for not less than the following fiscal year at each 
of the Committee’s member agencies. 
(c) WAIVER.—The chairperson may waive the report-
ing requirement under subsection (b) with respect to a fis-
cal year for which a unified budget request described 
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under section 721(p) of the Defense Production Act of 
1950 has been submitted. 
(d) SPECIAL HIRING AUTHORITY.—Section 721 of 
the Defense Production Act of 1950 (50 U.S.C. 4565), 
as amended by subsection (a), is further amended by add-
ing at the end the following: 
‘‘(q) SPECIAL HIRING AUTHORITY.—The heads of 
the departments and agencies represented on the Com-
mittee may appoint, without regard to the provisions of 
sections 3309 through 3318 of title 5, United States Code, 
candidates directly to positions in the competitive service 
(as defined in section 2102 of that title) in their respective 
departments and agencies to administer this section.’’. 
(e) TESTIMONY REQUIRED.—Section 721 of the De-
fense Production Act of 1950 (50 U.S.C. 4565), as 
amended by subsection (d), is further amended by adding 
at the end the following: 
‘‘(r) TESTIMONY.— 
‘‘(1) IN GENERAL.—After submitting the uni-
fied budget request described under subsection (p), 
or the spending plan described under section 502 of 
the Foreign Investment Risk Review Modernization 
Act of 2018, as the case may be, but not later than 
March 31 of each year, the chairperson, or the 
chairperson’s designee, shall appear before the Com-
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mittee on Financial Services of the House of Rep-
resentatives and present testimony on— 
‘‘(A) anticipated resources necessary for 
operations of the Committee in the following 
fiscal year at each of the Committee’s member 
agencies; 
‘‘(B) the adequacy of appropriations for 
the Committee in the current and the previous 
fiscal year to— 
‘‘(i) ensure that thorough reviews and 
investigations are completed as expedi-
tiously as possible; 
‘‘(ii) monitor and enforce mitigation 
agreements; and 
‘‘(iii) identify covered transactions for 
which a notice under clause (i) of sub-
section (b)(1)(C) or a declaration under 
clause (v) of subsection (b)(1)(C) was not 
submitted to the Committee; and 
‘‘(C) management efforts to strengthen the 
ability of the Committee to meet the require-
ments of this section. 
‘‘(2) SUNSET.—This subsection shall have no 
force or effect on the date that is five years following 
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the date of enactment of the Foreign Investment 
Risk Review Modernization Act of 2018.’’. 
SEC. 503. CFIUS OUTREACH. 
Not later than 180 days after the date of enactment 
of this Act, and every year thereafter for five years, the 
chairperson of the Committee on Foreign Investment in 
the United States (‘‘CFIUS’’), or the chairperson’s des-
ignee, shall brief the Committee on Financial Services of 
the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate on 
activities of CFIUS undertaken in order to— 
(1) educate the business community, with a 
particular focus on the technology sector and other 
sectors of importance to national security, on the 
goals and operations of CFIUS; and 
(2) disseminate to the governments of United 
States allies best practices of CFIUS that— 
(A) strengthen national security reviews of 
relevant investment transactions; 
(B) expedite such reviews when appro-
priate; and 
(C) promote openness to foreign invest-
ment, consistent with national security consid-
erations. 
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TITLE VI—MISCELLANEOUS 
FIRRMA PROVISIONS 
SEC. 601. CONFORMING AMENDMENT. 
Section 721(d)(4)(A) of the Defense Production Act 
of 1950 (50 U.S.C. 4565(d)(4)(A)) is amended by striking 
‘‘the foreign interest exercising control’’ and inserting ‘‘a 
foreign person that would acquire an interest in a United 
States business or its assets as a result of the covered 
transaction’’. 
SEC. 602. REGULATORY CERTAINTY FOR UNITED STATES 
BUSINESSES. 
Section 721 of the Defense Production Act of 1950 
(50 U.S.C. 4565), as amended by section 502, is further 
amended by adding at the end the following: 
‘‘(s) REGULATORY CERTAINTY FOR UNITED STATES 
BUSINESSES.—With respect to mitigating a national secu-
rity risk that results from a foreign person’s investment 
in, or joint venture with, a United States business, a mem-
ber agency of the Committee may not prescribe or imple-
ment regulations to require divestment by, or of, the 
United States business, unless— 
‘‘(1) the regulations are prescribed under this 
section or pursuant to authorities of the President 
under the International Emergency Economic Pow-
ers Act; or 
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‘‘(2) the President reports to Congress in writ-
ing that the regulations— 
‘‘(A) are, wherever applicable, consistent 
with regulations prescribed under this section, 
including any such regulations pertaining to— 
‘‘(i) foreign control or influence over a 
United States business; 
‘‘(ii) the identification of emerging, 
foundational, or other critical technologies; 
and 
‘‘(iii) confidentiality requirements with 
respect to information and documentary 
material regarding United States busi-
nesses; and 
‘‘(B) in the case of regulations prescribed 
or finalized following the effective date of this 
subsection, were prescribed in consultation with 
the chairperson of the Committee and with the 
head of any member agency determined by the 
President to be affected by the regulations.’’. 
TITLE VII—COMMON SENSE 
CREDIT UNION CAPITAL RELIEF 
SEC. 701. DELAY IN EFFECTIVE DATE. 
Notwithstanding any effective date set forth in the 
rule issued by the National Credit Union Administration 
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titled ‘‘Risk-Based Capital’’ (published at 80 Fed. Reg. 
66626 (October 29, 2015)), such final rule shall take ef-
fect on January 1, 2021. 
TITLE VIII—EXPORT CONTROL 
REFORM 
SEC. 801. SHORT TITLE. 
This title may be cited as the ‘‘Export Control Re-
form Act of 2018’’. 
SEC. 802. DEFINITIONS. 
In this title: 
(1) 
CONTROLLED.—The 
term 
‘‘controlled’’ 
means the export, reexport, or transfer of an item 
subject to the jurisdiction of the United States 
under subtitle A. 
(2) DUAL-USE.—The term ‘‘dual-use’’, with re-
spect to an item, means the item has civilian appli-
cations and military, terrorism, weapons of mass de-
struction, or law-enforcement-related applications. 
(3) EXPORT.—The term ‘‘export’’, with respect 
to an item subject to controls under subtitle A, in-
cludes— 
(A) the shipment or transmission of the 
item out of the United States, including the 
sending or taking of the item out of the United 
States, in any manner; and 
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(B) the release or transfer of technology or 
source code relating to the item to a foreign 
person in the United States. 
(4) EXPORT ADMINISTRATION REGULATIONS.— 
The term ‘‘Export Administration Regulations’’ 
means— 
(A) the Export Administration Regulations 
as promulgated, maintained, and amended 
under the authority of the International Emer-
gency Economic Powers Act and codified, as of 
the date of the enactment of this Act, in sub-
chapter C of chapter VII of title 15, Code of 
Federal Regulations; or 
(B) regulations that are promulgated, 
maintained, and amended under the authority 
of subtitle A on or after the date of the enact-
ment of this Act. 
(5) FOREIGN PERSON.—The term ‘‘foreign per-
son’’ means a person that is not a United States 
person. 
(6) ITEM.—The term ‘‘item’’ means a com-
modity, software, or technology. 
(7) PERSON.—The term ‘‘person’’ means— 
(A) a natural person; 
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(B) a corporation, business association, 
partnership, society, trust, financial institution, 
insurer, underwriter, guarantor, and any other 
business organization, any other nongovern-
mental entity, organization, or group, or any 
government or agency thereof; and 
(C) any successor to any entity described 
in subparagraph (B). 
(8) REEXPORT.—The term ‘‘reexport’’, with re-
spect to an item subject to controls under subtitle A, 
includes— 
(A) the shipment or transmission of the 
item from a foreign country to another foreign 
country, including the sending or taking of the 
item from the foreign country to the other for-
eign country, in any manner; and 
(B) the release or transfer of technology or 
source code relating to the item to a foreign 
person outside the United States. 
(9) SECRETARY.—Except as otherwise provided, 
the term ‘‘Secretary’’ means the Secretary of Com-
merce. 
(10) TECHNOLOGY.—The term ‘‘technology’’ 
includes foundational information and information 
and know-how necessary for the development (at all 
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stages prior to serial production), production, use, 
operation, installation, maintenance, repair, overhaul 
or refurbishing of an item. 
(11) TRANSFER.—The term ‘‘transfer’’, with 
respect to an item subject to controls under title I, 
means a change in the end-use or end user of the 
item within the same foreign country. 
(12) UNITED
STATES.—The term ‘‘United 
States’’ means the several States, the District of Co-
lumbia, the Commonwealth of Puerto Rico, the Com-
monwealth of the Northern Mariana Islands, Amer-
ican Samoa, Guam, the United States Virgin Is-
lands, and any other territory or possession of the 
United States. 
(13) UNITED
STATES
PERSON.—The term 
‘‘United States person’’ means— 
(A) for purposes of subtitles A and C— 
(i) any individual who is a citizen or 
national of the United States or who is an 
individual described in subparagraph (B) 
of section 274B(a)(3) of the Immigration 
and 
Nationality 
Act 
(8 
U.S.C. 
1324b(a)(3)); 
(ii) a corporation or other legal entity 
which is organized under the laws of the 
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United States, any State or territory there-
of, or the District of Columbia; and 
(iii) any person in the United States; 
and 
(B) for purposes of subtitle B, any United 
States resident or national (other than an indi-
vidual resident outside the United States and 
employed by other than a United States per-
son), any domestic concern (including any per-
manent domestic establishment of any foreign 
concern) and any foreign subsidiary or affiliate 
(including any permanent foreign establish-
ment) of any domestic concern which is con-
trolled in fact by such domestic concern, as de-
termined under regulations by the Secretary. 
(14) WEAPONS OF MASS DESTRUCTION.—The 
term ‘‘weapons of mass destruction’’ means nuclear, 
radiological, chemical, and biological weapons and 
delivery systems for such weapons. 
Subtitle A—Authority and 
Administration of Controls 
SEC. 811. SHORT TITLE. 
This subtitle may be cited as the ‘‘Export Controls 
Act of 2018’’. 
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SEC. 812. STATEMENT OF POLICY. 
The following is the policy of the United States: 
(1) The national security and foreign policy of 
the United States require that the export, reexport, 
and transfer of items, and specific activities of 
United States persons, wherever located, be con-
trolled for the following purposes: 
(A) To control the release of items for use 
in— 
(i) the proliferation of weapons of 
mass destruction or of conventional weap-
ons; 
(ii) the acquisition of destabilizing 
numbers or types of conventional weapons; 
(iii) acts of terrorism; 
(iv) military programs that could pose 
a threat to the security of the United 
States or its allies; or 
(v) activities undertaken specifically to 
cause significant interference with or dis-
ruption of critical infrastructure. 
(B) To preserve the qualitative military su-
periority of the United States. 
(C) To strengthen the United States in-
dustrial base. 
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(D) To carry out the foreign policy of the 
United States, including the protection of 
human rights and the promotion of democracy. 
(E) To carry out obligations and commit-
ments under international agreements and ar-
rangements, including multilateral export con-
trol regimes. 
(F) To facilitate military interoperability 
between the United States and its North Atlan-
tic Treaty Organization (NATO) and other 
close allies. 
(G) To ensure national security controls 
are tailored to focus on those core technologies 
and other items that are capable of being used 
to pose a serious national security threat to the 
United States. 
(2) The national security of the United States 
requires that the United States maintain its leader-
ship in the science, technology, engineering, and 
manufacturing sectors, including foundational tech-
nology that is essential to innovation. Such leader-
ship requires that United States persons are com-
petitive in global markets. The impact of the imple-
mentation of this subtitle on such leadership and 
competitiveness must be evaluated on an ongoing 
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basis and applied in imposing controls under sec-
tions 813 and 814 to avoid negatively affecting such 
leadership. 
(3) The national security and foreign policy of 
the United States require that the United States 
participate in multilateral organizations and agree-
ments regarding export controls on items that are 
consistent with the policy of the United States, and 
take all the necessary steps to secure the adoption 
and consistent enforcement, by the governments of 
such countries, of export controls on items that are 
consistent with such policy. 
(4) Export controls should be fully coordinated 
with the multilateral export control regimes. Export 
controls that are multilateral are most effective, and 
should be tailored to focus on those core technologies 
and other items that are capable of being used to 
pose a serious national security threat to the United 
States and its allies. 
(5) Export controls applied unilaterally to items 
widely available from foreign sources generally are 
less effective in preventing end-users from acquiring 
those items. 
(6) The effective administration of export con-
trols requires a clear understanding both inside and 
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outside the United States Government of which tech-
nologies and other items are controlled and an effi-
cient process should be created to update the con-
trols, such as by removing and adding technologies 
and other items. 
(7) The export control system must ensure that 
it is transparent, predictable, and timely, has the 
flexibility to be adapted to address new threats in 
the future, and allows seamless access to and shar-
ing of export control information among all relevant 
United States national security and foreign policy 
agencies. 
(8) Implementation and enforcement of United 
States export controls require robust capabilities in 
monitoring, intelligence, and investigation, appro-
priate penalties for violations, and the ability to 
swiftly interdict unapproved transfers. 
(9) Export controls should be balanced with 
United States counterterrorism, information secu-
rity, and cyber-security policies to ensure the ability 
to export, reexport, and transfer technology and 
other items in support of counterterrorism, critical 
infrastructure, and other homeland security prior-
ities, while effectively preventing malicious cyber ter-
rorists from obtaining items that threaten the 
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United States and its interests, including the protec-
tion of and safety of United States citizens abroad. 
(10) Export controls complement and are a 
critical element of the national security policies un-
derlying the laws and regulations governing foreign 
direct investment in the United States, including 
controlling the transfer of critical technologies to 
certain foreign persons. Thus, the President, in close 
coordination with the Department of Commerce, the 
Department of Defense, the Department of State, 
the Department of Energy, and other agencies re-
sponsible for export controls, should have a regular 
and robust process to identify the emerging and 
other types of critical technologies of concern and 
regulate their release to foreign persons as war-
ranted regardless of the nature of the underlying 
transaction. Such identification efforts should draw 
upon the resources and expertise of all relevant 
parts of the United States Government, industry, 
and academia. These efforts should be in addition to 
traditional efforts to modernize and update the lists 
of controlled items under the multilateral export con-
trol regimes. 
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(11) The authority under this subtitle may be 
exercised only in furtherance of all of the objectives 
set forth in paragraphs (1) through (10). 
SEC. 813. AUTHORITY OF THE PRESIDENT. 
(a) AUTHORITY.—In order to carry out the policy set 
forth in paragraphs (1) through (10) of section 812, the 
President shall control— 
(1) the export, reexport, and transfer of items 
subject to the jurisdiction of the United States, 
whether by United States persons or by foreign per-
sons; and 
(2) the activities of United States persons, 
wherever located, relating to specific— 
(A) nuclear explosive devices; 
(B) missiles; 
(C) chemical or biological weapons; 
(D) whole plants for chemical weapons pre-
cursors; 
(E) foreign maritime nuclear projects; and 
(F) foreign military intelligence services. 
(b) REQUIREMENTS.—In exercising authority under 
this subtitle, the President shall impose controls to achieve 
the following objectives: 
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(1) To regulate the export, reexport, and trans-
fer of items described in subsection (a)(1) of United 
States persons or foreign persons. 
(2) To regulate the activities described in sub-
section (a)(2) of United States persons, wherever lo-
cated. 
(3) To secure the cooperation of other govern-
ments and multilateral organizations to impose con-
trol systems that are consistent, to the extent pos-
sible, with the controls imposed under subsection 
(a). 
(4) To maintain the leadership of the United 
States in science, engineering, technology research 
and development, manufacturing, and foundational 
technology that is essential to innovation. 
(5) To protect United States technological ad-
vances by prohibiting unauthorized technology trans-
fers to foreign persons in the United States or out-
side the United States, particularly with respect to 
countries that may pose a significant threat to the 
national security of the United States. 
(6) To enhance the viability of commercial 
firms, academic institutions, and research establish-
ments, and maintain the skilled workforce of such 
firms, institutions, and establishments, that are nec-
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essary to preserving the leadership of the United 
States described in paragraph (4). 
(7) To strengthen the United States industrial 
base, both with respect to current and future de-
fense requirements. 
(8) To enforce the controls through means such 
as regulations, requirements for compliance, lists of 
controlled items, lists of foreign persons who threat-
en the national security or foreign policy of the 
United States, and guidance in a form that facili-
tates compliance by United States persons and for-
eign persons, in particular academic institutions, sci-
entific and research establishments, and small- and 
medium-sized businesses. 
(c) APPLICATION
OF CONTROLS.—The President 
shall impose controls over the export, reexport, or transfer 
of items for purposes of the objectives described in sub-
sections (b)(1) or (b)(2) without regard to the nature of 
the underlying transaction or any circumstances per-
taining to the activity, including whether such export, re-
export, or transfer occurs pursuant to a purchase order 
or other contract requirement, voluntary decision, inter- 
company arrangement, marketing effort, or during a joint 
venture, joint development agreement, or similar collabo-
rative agreement. 
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SEC. 814. ADDITIONAL AUTHORITIES. 
(a) IN GENERAL.—In carrying out this subtitle, the 
President shall— 
(1) establish and maintain lists published by 
the Secretary of items that are controlled under this 
subtitle; 
(2) establish and maintain lists published by 
the Secretary of foreign persons and end-uses that 
are determined to be a threat to the national secu-
rity and foreign policy of the United States pursuant 
to the policy set forth in section 812(1)(A); 
(3) prohibit unauthorized exports, reexports, 
and transfers of controlled items, including to for-
eign persons in the United States or outside the 
United States; 
(4) restrict exports, reexports, and transfers of 
any controlled items to any foreign person or end- 
use listed under paragraph (2); 
(5) require licenses or other authorizations, as 
appropriate, for exports, reexports, and transfers of 
controlled items, including imposing conditions or re-
strictions on United States persons and foreign per-
sons with respect to such licenses or other authoriza-
tions; 
(6) establish a process by which a license appli-
cant may request an assessment to determine wheth-
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er a foreign item is comparable in quality to an item 
controlled under this subtitle, and is available in suf-
ficient quantities to render the United States export 
control of that item or the denial of a license ineffec-
tive, including a mechanism to address that dis-
parity; 
(7) require measures for compliance with the 
export controls established under this subtitle; 
(8) require and obtain such information from 
United States persons and foreign persons as is nec-
essary to carry out this subtitle; 
(9) require, as appropriate, advance notice be-
fore an item is exported, reexported, or transferred, 
as an alternative to requiring a license; 
(10) require, to the extent feasible, identifica-
tion of items subject to controls under this subtitle 
in order to facilitate the enforcement of such con-
trols; 
(11) inspect, search, detain, seize, or impose 
temporary denial orders with respect to items, in 
any form, that are subject to controls under this 
subtitle, or conveyances on which it is believed that 
there are items that have been, are being, or are 
about to be exported, reexported, or transferred in 
violation of this subtitle; 
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(12) monitor shipments, or other means of 
transfer; 
(13) keep the public fully apprised of changes 
in policy, regulations, and procedures established 
under this subtitle; 
(14) appoint technical advisory committees in 
accordance with the Federal Advisory Committee 
Act; 
(15) create, as warranted, exceptions to licens-
ing requirements in order to further the objectives of 
this subtitle; 
(16) establish and maintain processes to inform 
persons, either individually by specific notice or 
through amendment to any regulation or order 
issued under this subtitle, that a license from the 
Bureau of Industry and Security of the Department 
of Commerce is required to export; and 
(17) undertake any other action as is necessary 
to carry out this subtitle that is not otherwise pro-
hibited by law. 
(b) RELATIONSHIP TO IEEPA.—The authority under 
this subtitle may not be used to regulate or prohibit under 
this subtitle the export, reexport, or transfer of any item 
that may not be regulated or prohibited under section 
203(b) of the International Emergency Economic Powers 
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Act (50 U.S.C. 1702(b)), except to the extent the Presi-
dent has made a determination necessary to impose con-
trols under subparagraph (A), (B), or (C) of paragraph 
(2) of such section. 
(c) COUNTRIES SUPPORTING INTERNATIONAL TER-
RORISM.— 
(1) LICENSE REQUIREMENT.— 
(A) IN GENERAL.—A license shall be re-
quired for the export, reexport, or transfer of 
items to a country if the Secretary of State has 
made the following determinations: 
(i) The government of such country 
has repeatedly provided support for acts of 
international terrorism. 
(ii) The export, reexport, or transfer 
of such items could make a significant con-
tribution to the military potential of such 
country, including its military logistics ca-
pability, or could enhance the ability of 
such country to support acts of inter-
national terrorism. 
(B) DETERMINATION UNDER OTHER PRO-
VISIONS OF LAW.—A determination of the Sec-
retary of State under section 620A of the For-
eign Assistance Act of 1961 (22 U.S.C. 2371), 
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section 40 of the Arms Export Control Act (22 
U.S.C. 2780), or any other provision of law 
that the government of a country described in 
subparagraph (A) has repeatedly provided sup-
port for acts of international terrorism shall be 
deemed to be a determination with respect to 
such government for purposes of clause (i) of 
subparagraph (A). 
(2) NOTIFICATION
TO
CONGRESS.—The Sec-
retary of State or the Secretary of Commerce shall 
notify the Committee on Foreign Affairs of the 
House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs and the Com-
mittee on Foreign Relations of the Senate at least 
30 days before issuing any license required by para-
graph (1). 
(3) PUBLICATION
IN
FEDERAL
REGISTER.— 
Each determination of the Secretary of State under 
paragraph (1)(A) shall be published in the Federal 
Register, except that the Secretary of State may ex-
clude confidential information and trade secrets con-
tained in such determination. 
(4) RESCISSION OF DETERMINATION.—A deter-
mination of the Secretary of State under paragraph 
(1)(A) may not be rescinded unless the President 
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submits to the Speaker of the House of Representa-
tives, the chairman of the Committee on Foreign Af-
fairs, and the chairman of the Committee on Bank-
ing, Housing, and Urban Affairs and the chairman 
of the Committee on Foreign Relations of the Sen-
ate— 
(A) before the proposed rescission would 
take effect, a report certifying that— 
(i) there has been a fundamental 
change in the leadership and policies of the 
government of the country concerned; 
(ii) that government is not supporting 
acts of international terrorism; and 
(iii) that government has provided as-
surances that it will not support acts of 
international terrorism in the future; or 
(B) at least 90 days before the proposed 
rescission would take effect, a report justifying 
the rescission and certifying that— 
(i) the government concerned has not 
provided any support for acts international 
terrorism during the preceding 24-month 
period; and 
(ii) the government concerned has 
provided assurances that it will not sup-
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port acts of international terrorism in the 
future. 
(5) DISAPPROVAL OF RESCISSION.—No rescis-
sion under paragraph (4)(B) of a determination 
under paragraph (1)(A) with respect to the govern-
ment of a country may be made if Congress, within 
90 days after receipt of a report under paragraph 
(4)(B), enacts a joint resolution described in sub-
section (f)(2) of section 40 of the Arms Export Con-
trol Act with respect to a rescission under subsection 
(f)(1) of such section with respect to the government 
of such country. 
(6) NOTIFICATION AND BRIEFING.—Not later 
than— 
(A) ten days after initiating a review of the 
activities of the government of the country con-
cerned within the 24-month period referred to 
in paragraph (4)(B)(i), the Secretary of State 
shall notify the Committee on Foreign Affairs 
of the House of Representatives and the Com-
mittee on Foreign Relations of the Senate of 
such initiation; and 
(B) 20 days after the notification described 
in paragraph (1), the Secretary of State shall 
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brief the congressional committees described in 
paragraph (1) on the status of such review. 
(7) CONTENTS
OF
NOTIFICATION
OF
LI-
CENSE.—The Secretary of State shall include in the 
notification required by paragraph (2)— 
(A) a detailed description of the items to 
be offered, including a brief description of the 
capabilities of any item for which a license to 
export, reexport, or transfer the items is 
sought; 
(B) the reasons why the foreign country, 
person, or entity to which the export, reexport, 
or transfer is proposed to be made has re-
quested the items under the export, reexport, or 
transfer, and a description of the manner in 
which such country, person, or entity intends to 
use such items; 
(C) the reasons why the proposed export, 
reexport, or transfer is in the national interest 
of the United States; 
(D) an analysis of the impact of the pro-
posed export, reexport, or transfer on the mili-
tary capabilities of the foreign country, person, 
or entity to which such transfer would be made; 
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(E) an analysis of the manner in which the 
proposed export, reexport, or transfer would af-
fect the relative military strengths of countries 
in the region to which the items that are the 
subject of such export, reexport, or transfer 
would be delivered and whether other countries 
in the region have comparable kinds and 
amounts of items; and 
(F) an analysis of the impact of the pro-
posed export, reexport, or transfer on the rela-
tions of the United States with the countries in 
the region to which the items that are the sub-
ject of such export, reexport, or transfer would 
be delivered. 
(d) ENHANCED CONTROLS.— 
(1) IN
GENERAL.—In furtherance of section 
813(a), the President shall, except to the extent au-
thorized by a statute or regulation administered by 
a Federal department or agency other than the De-
partment of Commerce, require a United States per-
son, wherever located, to apply for and receive a li-
cense from the Department of Commerce for— 
(A) the export, reexport, or transfer of 
items described in paragraph (2), including 
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ministration Regulations, including by publishing ad-
ditional regulations. 
(2) LEVELS OF CONTROL.— 
(A) IN GENERAL.—The Secretary, in co-
ordination with the Secretary of Defense, the 
Secretary of State, and the heads of other de-
partments as appropriate, is authorized to de-
velop and apply levels of control, including the 
requirements for a license or other authoriza-
tion, to export, reexport, or transfer such tech-
nologies. 
(B) REQUIREMENTS.—In developing and 
applying the levels of control for such tech-
nologies, the Secretary— 
(i) shall take into account— 
(I) whether a country is subject 
to a United States arms embargo or is 
otherwise subject to United States 
sanctions; 
(II) potential end users and end 
uses; and 
(III) the threat to the national 
security and foreign policy of the 
United States; 
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tions to facilitate such activities for, any item 
exported or to be exported from the United 
States, or that is otherwise subject to the Ex-
port Administration Regulations, with knowl-
edge that a violation of this subtitle, the Export 
Administration Regulations, or any order, li-
cense or authorization issued thereunder, has 
occurred, is about to occur, or is intended to 
occur in connection with the item unless valid 
authorization is obtained therefor. 
(F) No person may make any false or mis-
leading representation, statement, or certifi-
cation, or falsify or conceal any material fact, 
either directly to the Department of Commerce, 
or an official of any other United States agen-
cy, or indirectly through any other person— 
(i) in the course of an investigation or 
other action subject to the Export Admin-
istration Regulations; 
(ii) in connection with the prepara-
tion, submission, issuance, use, or mainte-
nance of any export control document or 
any report filed or required to be filed pur-
suant to the Export Administration Regu-
lations; or 
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(iii) for the purpose of or in connec-
tion with effecting any export, reexport, or 
transfer of an item subject to the Export 
Administration Regulations or a service or 
other activity of a United States person de-
scribed in section 814. 
(G) No person may engage in any trans-
action or take any other action with intent to 
evade the provisions of this subtitle, the Export 
Administration Regulations, or any order, li-
cense, or authorization issued thereunder. 
(H) No person may fail or refuse to com-
ply with any reporting or recordkeeping require-
ments of the Export Administration Regula-
tions or of any order, license, or authorization 
issued thereunder. 
(I) Except as specifically authorized in the 
Export Administration Regulations or in writ-
ing by the Department of Commerce, no person 
may alter any license, authorization, export con-
trol document, or order issued under the Export 
Administration Regulations. 
(J) No person may take any action that is 
prohibited by a denial order issued by the De-
partment of Commerce to prevent imminent 
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