850 
† HR 5515 EAS 
fund, the criteria specified in 
items (cc) and (dd) of sub-
section (a)(5)(D)(iv). 
‘‘(ee) SUBMISSION OF WRIT-
TEN
NOTICE
AS
AN
ALTER-
NATIVE.—Parties to a covered 
transaction for which a declara-
tion is required under this sub-
clause may instead elect to submit 
a written notice under clause (i). 
‘‘(ff) TIMING
OF
SUBMIS-
SION.— 
‘‘(AA) IN GENERAL.—A 
declaration required to be 
submitted with respect to a 
covered transaction by this 
subclause shall be submitted 
not later than 45 days before 
the completion of the trans-
action. 
‘‘(BB) 
WRITTEN
NO-
TICE.—If, pursuant to item 
(ee), the parties to a covered 
transaction elect to submit a 
written notice under clause
851 
† HR 5515 EAS 
(i) instead of a declaration 
under this subclause, the 
written notice shall be filed 
not later than 90 days before 
the completion of the trans-
action. 
‘‘(gg) 
PENALTIES.—The 
Committee may impose a penalty 
pursuant to subsection (h)(3) with 
respect to a party that fails to 
comply with this subclause.’’. 
SEC. 1707. STIPULATIONS REGARDING TRANSACTIONS. 
Section 721(b)(1)(C) of the Defense Production Act of 
1950 (50 U.S.C. 4565(b)(1)(C)), as amended by section 
1706, is further amended by adding at the end the fol-
lowing: 
‘‘(vi) 
STIPULATIONS
REGARDING 
TRANSACTIONS.— 
‘‘(I) IN GENERAL.—In a written 
notice submitted under clause (i) or a 
declaration submitted under clause (v) 
with respect to a transaction, a party 
to the transaction may—
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† HR 5515 EAS 
‘‘(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 for-
eign government-controlled trans-
action. 
‘‘(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 include 
a description of the basis for the stipu-
lation.’’. 
SEC. 1708. AUTHORITY FOR UNILATERAL INITIATION OF RE-
VIEWS. 
Section 721(b)(1) of the Defense Production Act of 
1950 (50 U.S.C. 4565(b)(1)) is amended— 
(1) by redesignating subparagraphs (E) and (F) 
as subparagraphs (F) and (G), respectively; 
(2) in subparagraph (D)—
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† HR 5515 EAS 
(A) in the matter preceding clause (i), by 
striking ‘‘subparagraph (F)’’ and inserting ‘‘sub-
paragraph (G)’’; 
(B) in clause (i), by inserting ‘‘(other than 
a covered transaction described in subparagraph 
(E))’’ after ‘‘any covered transaction’’; 
(C) by striking clause (ii) and inserting the 
following: 
‘‘(ii) any covered transaction described 
in subparagraph (E), if any party to the 
transaction submitted false or misleading 
material information to the Committee in 
connection with the Committee’s consider-
ation of the transaction or omitted material 
information, including material documents, 
from information submitted to the Com-
mittee; or’’; and 
(D) in clause (iii)— 
(i) in the matter preceding subclause 
(I), by striking ‘‘any covered transaction 
that has previously been reviewed or inves-
tigated under this section,’’ and inserting 
‘‘any covered transaction described in sub-
paragraph (E),’’;
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† HR 5515 EAS 
(ii) in subclause (I), by striking ‘‘in-
tentionally’’; 
(iii) in subclause (II), by striking ‘‘an 
intentional’’ and inserting ‘‘a’’; and 
(iv) in subclause (III), by inserting 
‘‘adequate and appropriate’’ before ‘‘rem-
edies or enforcement tools’’; and 
(3) by inserting after subparagraph (D) the fol-
lowing: 
‘‘(E) 
COVERED
TRANSACTIONS
DE-
SCRIBED.—A covered transaction is described in 
this subparagraph if— 
‘‘(i) the Committee has informed the 
parties to the transaction in writing that 
the Committee has completed all action 
under this section with respect to the trans-
action; or 
‘‘(ii) the President has announced a 
decision not to exercise the President’s au-
thority under subsection (d) with respect to 
the transaction.’’. 
SEC. 1709. TIMING FOR REVIEWS AND INVESTIGATIONS. 
Section 721(b) of the Defense Production Act of 1950 
(50 U.S.C. 4565(b)), as amended by section 1708, is further 
amended—
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† HR 5515 EAS 
(1) in paragraph (1)(F), by striking ‘‘30’’ and 
inserting ‘‘45’’; 
(2) in paragraph (2), by striking subparagraph 
(C) and inserting the following: 
‘‘(C) TIMING.— 
‘‘(i) IN GENERAL.—Except as provided 
in clause (ii), any investigation under sub-
paragraph (A) shall be completed before the 
end of the 45-day period beginning on the 
date on which the investigation commenced. 
‘‘(ii) EXTENSION FOR EXTRAORDINARY 
CIRCUMSTANCES.— 
‘‘(I) IN
GENERAL.—In 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 
one 30-day period. 
‘‘(II) NONDELEGATION.—The au-
thority of the chairperson and the head 
of the lead agency referred to in sub-
clause (I) may not be delegated to any 
person other than the Deputy Secretary 
of the Treasury or the deputy head (or
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† HR 5515 EAS 
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 
(3) by adding at the end the following: 
‘‘(8) TOLLING OF DEADLINES DURING LAPSE IN 
APPROPRIATIONS.—Any deadline or time limitation 
under this subsection shall be tolled during a lapse in 
appropriations.’’. 
SEC. 1710. MONITORING OF NON-NOTIFIED AND NON-DE-
CLARED TRANSACTIONS. 
Section 721(b)(1) of the Defense Production Act of 
1950 (50 U.S.C. 4565(b)(1)), as amended by sections 1708 
and 1709, is further amended by adding at the end the fol-
lowing: 
‘‘(H) MONITORING
OF
NON-NOTIFIED
AND 
NON-DECLARED TRANSACTIONS.—The Committee 
shall establish a mechanism to identify covered 
transactions for which— 
‘‘(i) a notice under clause (i) of sub-
paragraph (C) or a declaration under
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† HR 5515 EAS 
clause (v) of that subparagraph is not sub-
mitted to the Committee; and 
‘‘(ii) information is reasonably avail-
able.’’. 
SEC. 1711. SUBMISSION OF CERTIFICATIONS TO CONGRESS. 
Section 721(b)(3)(C) of the Defense Production Act of 
1950 (50 U.S.C. 4565(b)(3)(C)) is amended— 
(1) in clause (iii)— 
(A) in subclause (II), by inserting ‘‘and the 
Select Committee on Intelligence’’ after ‘‘Urban 
Affairs’’; and 
(B) in subclause (IV), by inserting ‘‘and the 
Permanent Select Committee on Intelligence’’ 
after ‘‘Financial Services’’; 
(2) in clause (iv), by striking subclause (II) and 
inserting the following: 
‘‘(II) DELEGATION
OF
CERTIFI-
CATIONS.— 
‘‘(aa) IN GENERAL.—Subject 
to item (bb), the chairperson, in 
consultation with the Committee, 
may determine the level of official 
to whom the signature require-
ment under subclause (I) for the 
chairperson and the head of the
858 
† HR 5515 EAS 
lead agency may be delegated. The 
level of official to whom the signa-
ture requirement may be delegated 
may differ based on any factor re-
lating to a transaction that the 
chairperson, in consultation with 
the 
Committee, 
deems 
appro-
priate, including the type or value 
of the transaction. 
‘‘(bb) LIMITATION ON DELE-
GATION WITH RESPECT TO CER-
TAIN TRANSACTIONS.—The signa-
ture requirement under subclause 
(I) may be delegated not below the 
level of the Assistant Secretary of 
the Treasury or an equivalent of-
ficial of the lead agency in the 
case of a covered transaction— 
‘‘(AA) assessed by the 
Director of National Intel-
ligence under paragraph (4) 
as more likely than not to 
threaten the national secu-
rity of the United States;
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† HR 5515 EAS 
‘‘(BB) with respect to 
which the Committee con-
ducts an investigation under 
paragraph (2); or 
‘‘(CC) with respect to 
which a request is made by 
an official at the Deputy As-
sistant Secretary or Assistant 
Secretary level of an agency 
or department represented on 
the Committee, or an equiva-
lent thereof, that the trans-
action be reviewed by the As-
sistant 
Secretary 
of 
the 
Treasury and an equivalent 
official of the lead agency. 
‘‘(cc) LIMITATION ON DELE-
GATION WITH RESPECT TO OTHER 
TRANSACTIONS.—In the case of 
any covered transaction not de-
scribed in item (bb), the signature 
requirement under subclause (I) 
may be delegated not below the 
level of a Deputy Assistant Sec-
retary of the Treasury or an
860 
† HR 5515 EAS 
equivalent official of the lead 
agency.’’; and 
(3) by adding at the end the following: 
‘‘(v) 
AUTHORITY
TO
CONSOLIDATE 
DOCUMENTS.—Instead of transmitting a 
separate certified notice or certified report 
under subparagraph (A) or (B) with respect 
to each covered transaction, the Committee 
may, on a monthly basis, transmit such no-
tices and reports in a consolidated docu-
ment to the Members of Congress specified 
in clause (iii).’’. 
SEC. 1712. 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.—Except as provided 
in subparagraph (B), the Director of Na-
tional 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 in-
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† HR 5515 EAS 
clude the identification of any recognized 
gaps in the collection of intelligence relevant 
to the analysis. 
‘‘(ii) VIEWS OF INTELLIGENCE COMMU-
NITY.—The Director shall seek and incor-
porate into the analysis required by clause 
(i) the views of all affected or appropriate 
agencies of the intelligence community with 
respect to the transaction. 
‘‘(iii) UPDATES.—At the request of the 
lead agency, the Director shall update the 
analysis conducted under clause (i) with re-
spect 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 analysis 
under clause (i) that is independent, objec-
tive, and consistent with all applicable di-
rectives, policies, and analytic tradecraft 
standards of the intelligence community.’’;
862 
† HR 5515 EAS 
(2) by redesignating subparagraphs (B), (C), 
and (D) as subparagraphs (C), (D), and (E), respec-
tively; 
(3) by inserting after subparagraph (A) the fol-
lowing: 
‘‘(B) BASIC THREAT INFORMATION.— 
‘‘(i) IN GENERAL.—The Director of Na-
tional Intelligence may provide the Com-
mittee with basic information regarding 
any threat to the national security of the 
United States posed by a covered trans-
action 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)(5)(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-
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† HR 5515 EAS 
tigation of the transaction under this 
section; or 
‘‘(III) the transaction otherwise 
meets criteria agreed upon by the Com-
mittee and the Director for purposes of 
this subparagraph.’’; 
(4) in subparagraph (C), as redesignated by 
paragraph (2), by striking ‘‘20’’ and inserting ‘‘30’’; 
and 
(5) by adding at the end the following: 
‘‘(F) ASSESSMENT
OF
OPERATIONAL
IM-
PACT.—The Director may provide to the Com-
mittee an assessment, separate from the analyses 
under subparagraphs (A) and (B), of any oper-
ational impact of a covered transaction on the 
intelligence community and a description of any 
actions that have been or will be taken to miti-
gate any such impact. 
‘‘(G) 
SUBMISSION
TO
CONGRESS.—The 
Committee shall submit the analysis required by 
subparagraph (A) with respect to a covered 
transaction to the Select Committee on Intel-
ligence of the Senate and the Permanent Select 
Committee on Intelligence of the House of Rep-
resentatives upon the conclusion of action under
864 
† HR 5515 EAS 
this section (other than compliance plans under 
subsection (l)(6)) with respect to the trans-
action.’’. 
SEC. 1713. INFORMATION SHARING. 
Section 721(c) of the Defense Production Act of 1950 
(50 U.S.C. 4565(c)) is amended— 
(1) by striking ‘‘Any information’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), any information’’; 
(2) by striking ‘‘, except as may be relevant’’ and 
all that follows and inserting a period; and 
(3) by adding at the end the following: 
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not pro-
hibit the disclosure of the following: 
‘‘(A) Information relevant to any adminis-
trative or judicial action or proceeding. 
‘‘(B) Information to Congress or any duly 
authorized committee or subcommittee of Con-
gress. 
‘‘(C) Information to any domestic or foreign 
governmental entity, under the direction of the 
chairperson, to the extent necessary for national 
security purposes and pursuant to appropriate 
confidentiality and classification arrangements.
865 
† HR 5515 EAS 
‘‘(D) Information that the parties have con-
sented to be disclosed to third parties. 
‘‘(3) COOPERATION
WITH
ALLIES
AND
PART-
NERS.— 
‘‘(A) IN
GENERAL.—The chairperson, in 
consultation with other members of the Com-
mittee, should establish a formal process for the 
exchange of information under paragraph (2)(C) 
with governments of countries that are allies or 
partners of the United States, in the discretion 
of the chairperson, to protect the national secu-
rity of the United States and those countries. 
‘‘(B) REQUIREMENTS.—The process estab-
lished under subparagraph (A) should, in the 
discretion of the chairperson— 
‘‘(i) be designed to facilitate the har-
monization of action with respect to trends 
in investment and technology that could 
pose risks to the national security of the 
United States and countries that are allies 
or partners of the United States; 
‘‘(ii) provide for the sharing of infor-
mation with respect to specific technologies 
and entities acquiring such technologies as
866 
† HR 5515 EAS 
appropriate to ensure national security; 
and 
‘‘(iii) include consultations and meet-
ings with representatives of the governments 
of such countries on a recurring basis.’’. 
SEC. 1714. ACTION BY THE PRESIDENT. 
(a) IN GENERAL.—Section 721(d) of the Defense Pro-
duction Act of 1950 (50 U.S.C. 4565(d)) is amended— 
(1) by striking paragraph (1) and inserting the 
following: 
‘‘(1) IN GENERAL.—Subject to paragraph (4), the 
President may, with respect to a covered transaction 
that threatens to impair the national security of the 
United States, take such action for such time as the 
President considers appropriate to suspend or pro-
hibit the transaction or to require divestment.’’; and 
(2) in paragraph (2), by striking ‘‘not later than 
15 days’’ and all that follows and inserting the fol-
lowing: ‘‘with respect to a covered transaction not 
later than 15 days after the earlier of— 
‘‘(A) the date on which the investigation of 
the transaction under subsection (b) is com-
pleted; or
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† HR 5515 EAS 
‘‘(B) the date on which the Committee oth-
erwise refers the transaction to the President 
under subsection (l)(2).’’. 
(b) CIVIL PENALTIES.—Section 721(h)(3)(A) of the 
Defense Production Act of 1950 (50 U.S.C. 4565(h)(3)(A)) 
is amended by striking ‘‘including any mitigation’’ and all 
that follows through ‘‘subsection (l)’’ and inserting ‘‘includ-
ing any mitigation agreement entered into, conditions im-
posed, or order issued pursuant to this section’’. 
SEC. 1715. JUDICIAL REVIEW. 
Section 721(e) of the Defense Production Act of 1950 
(50 U.S.C. 4565(e)) is amended— 
(1) by striking ‘‘The actions’’ and inserting the 
following: 
‘‘(1) IN GENERAL.—The actions’’; and 
(2) by adding at the end the following: 
‘‘(2) CIVIL ACTIONS.—A civil action challenging 
an action or finding of the Committee under this sec-
tion may be brought only in the United States Court 
of Appeals for the District of Columbia Circuit. 
‘‘(3) PROCEDURES FOR REVIEW OF PRIVILEGED 
INFORMATION.—If a civil action challenging an ac-
tion or finding of the Committee under this section is 
brought, and the court determines that protected in-
formation in the administrative record, including
868 
† HR 5515 EAS 
classified, sensitive law enforcement, sensitive secu-
rity, or other information subject to privilege or pro-
tections under any provision of law, is necessary to 
resolve the challenge, that information shall be sub-
mitted ex parte and in camera to the court and the 
court shall maintain that information under seal. 
‘‘(4) APPLICABILITY
OF
USE
OF
INFORMATION 
PROVISIONS.—The use of information provisions of 
sections 106, 305, 405, and 706 of the Foreign Intel-
ligence Surveillance Act of 1978 (50 U.S.C. 1806, 
1825, 1845, and 1881e) shall not apply in a civil ac-
tion brought under this subsection.’’. 
SEC. 1716. MEMBERSHIP AND STAFF OF COMMITTEE. 
(a) HIRING AUTHORITY.—Section 721(k) of the De-
fense Production Act of 1950 (50 U.S.C. 4565(k)) is amend-
ed by striking paragraph (4) and inserting the following: 
‘‘(4) HIRING AUTHORITY.— 
‘‘(A) SENIOR OFFICIALS.— 
‘‘(i) IN
GENERAL.—Each member of 
the Committee shall designate an Assistant 
Secretary, or an equivalent official, who is 
appointed by the President, by and with the 
advice and consent of the Senate, to carry 
out such duties related to the Committee as 
the member of the Committee may delegate.
869 
† HR 5515 EAS 
‘‘(ii) DEPARTMENT
OF
THE
TREAS-
URY.—In addition to officials of the De-
partment of the Treasury authorized under 
section 301 of title 31, United States Code, 
or any other provision of law, there are au-
thorized at the Department of the Treasury, 
to carry out such duties related to the Com-
mittee as the Secretary of the Treasury may 
delegate, consistent with this section and re-
flecting the expanded authorities of the 
Committee and the role of the Department 
of the Treasury in implementing those au-
thorities under the amendments made by 
the Foreign Investment Risk Review Mod-
ernization Act of 2018, the following: 
‘‘(I) One official, who is ap-
pointed by the President, by and with 
the advice and consent of the Senate, 
who shall be compensated at a rate not 
to exceed the rate of basic pay payable 
for level III of the Executive Schedule 
under section 5314 of title 5, United 
States Code. 
‘‘(II) One official, who is ap-
pointed by the President, by and with
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† HR 5515 EAS 
the advice and consent of the Senate, 
who shall be compensated at a rate not 
to exceed the rate of basic pay payable 
for level IV of the Executive Schedule 
under section 5315 of title 5, United 
States Code. 
‘‘(B) SPECIAL
HIRING
AUTHORITY.—The 
heads of the departments and agencies rep-
resented on the Committee may appoint, without 
regard to the provisions of sections 3309 through 
3318 of title 5, United States Code, candidates 
directly to positions in the competitive service 
(as defined in section 2102 of that title) in their 
respective departments and agencies to admin-
ister this section.’’. 
(b) PROCEDURES
FOR RECUSAL
OF MEMBERS
OF 
COMMITTEE FOR CONFLICTS OF INTEREST.—Not later than 
90 days after the date of the enactment of this Act, the Com-
mittee on Foreign Investment in the United States shall— 
(1) establish procedures for the recusal of any 
member of the Committee that has a conflict of inter-
est with respect to a covered transaction (as defined 
in section 721 of the Defense Production Act of 1950, 
as amended by section 1703);
871 
† HR 5515 EAS 
(2) submit to the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate and the Com-
mittee on Financial Services of the House of Rep-
resentatives a report describing those procedures; and 
(3) brief the committees specified in paragraph 
(1) on the report required by paragraph (2). 
SEC. 1717. ACTIONS BY THE COMMITTEE TO ADDRESS NA-
TIONAL SECURITY RISKS. 
Section 721(l) of the Defense Production Act of 1950 
(50 U.S.C. 4565(l)) is amended— 
(1) in the subsection heading, by striking ‘‘MITI-
GATION, TRACKING, AND POSTCONSUMMATION MONI-
TORING AND ENFORCEMENT’’ and inserting ‘‘ACTIONS 
BY THE COMMITTEE TO ADDRESS NATIONAL SECU-
RITY RISKS’’; 
(2) by redesignating paragraphs (1), (2), and (3) 
as paragraphs (3), (5), and (6), respectively; 
(3) by inserting before paragraph (3), as redesig-
nated by paragraph (2), the following: 
‘‘(1) SUSPENSION OF TRANSACTIONS.—The Com-
mittee, acting through the chairperson, may suspend 
a proposed or pending covered transaction that may 
pose a risk to the national security of the United 
States for such time as the covered transaction is 
under review or investigation under subsection (b).
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† HR 5515 EAS 
‘‘(2) REFERRAL TO PRESIDENT.—The Committee 
may, at any time during the review or investigation 
of a covered transaction under subsection (b), com-
plete the action of the Committee with respect to the 
transaction and refer the transaction to the President 
for action pursuant to subsection (d).’’; 
(4) in paragraph (3), as redesignated by para-
graph (2)— 
(A) in subparagraph (A)— 
(i) in the subparagraph heading, by 
striking ‘‘IN
GENERAL’’ and inserting 
‘‘AGREEMENTS AND CONDITIONS’’; 
(ii) by striking ‘‘The Committee’’ and 
inserting the following: 
‘‘(i) IN GENERAL.—The Committee’’; 
(iii) by striking ‘‘threat’’ and inserting 
‘‘risk’’; and 
(iv) by adding at the end the following: 
‘‘(ii) 
ABANDONMENT
OF
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 agree-
ment or condition with any party to the
873 
† HR 5515 EAS 
covered transaction for purposes of effec-
tuating such abandonment and mitigating 
any risk to the national security of the 
United States that arises as a result of the 
covered transaction. 
‘‘(iii) AGREEMENTS
AND
CONDITIONS 
RELATING TO COMPLETED TRANSACTIONS.— 
The Committee or lead agency, as the case 
may be, may negotiate, enter into or im-
pose, and enforce any agreement or condi-
tion with any party to a completed covered 
transaction in order to mitigate any in-
terim risk to the national security of the 
United States that may arise as a result of 
the covered transaction until such time that 
the Committee has completed action pursu-
ant to subsection (b) or the President has 
taken action pursuant to subsection (d) 
with respect to the transaction.’’; and 
(B) by striking subparagraph (B) and in-
serting the following: 
‘‘(B) LIMITATIONS.—An agreement may not 
be entered into or condition imposed under sub-
paragraph (A) with respect to a covered trans-
action unless the Committee determines that the
874 
† HR 5515 EAS 
agreement or condition resolves the national se-
curity concerns posed by the transaction, taking 
into consideration whether the agreement or con-
dition is reasonably calculated to— 
‘‘(i) be effective; 
‘‘(ii) allow for compliance with the 
terms of the agreement or condition in an 
appropriately verifiable way; and 
‘‘(iii) enable effective monitoring of 
compliance with and enforcement of the 
terms of the agreement or condition. 
‘‘(C) JURISDICTION.—The provisions of sec-
tion 706(b) shall apply to any mitigation agree-
ment entered into or condition imposed under 
subparagraph (A).’’; 
(5) by inserting after paragraph (3), as redesig-
nated by paragraph (2), the following: 
‘‘(4) RISK-BASED ANALYSIS REQUIRED.— 
‘‘(A) IN GENERAL.—Any determination of 
the Committee to suspend a covered transaction 
under paragraph (1), to refer a covered trans-
action to the President under paragraph (2), or 
to negotiate, enter into or impose, or enforce any 
agreement or condition under paragraph (3)(A) 
with respect to a covered transaction, shall be
875 
† HR 5515 EAS 
based on a risk-based analysis, conducted by the 
Committee, of the effects on the national security 
of the United States of the covered transaction, 
which shall include an assessment of the threat, 
vulnerabilities, and consequences to national se-
curity related to the transaction. 
‘‘(B) ACTIONS OF MEMBERS OF THE COM-
MITTEE.— 
‘‘(i) IN GENERAL.—Any member of the 
Committee who concludes that a covered 
transaction poses an unresolved national se-
curity concern shall recommend to the Com-
mittee that the Committee suspend the 
transaction under paragraph (1), refer the 
transaction to the President under para-
graph (2), or negotiate, enter into or im-
pose, or enforce any agreement or condition 
under paragraph (3)(A) with respect to the 
transaction. In making that recommenda-
tion, the member shall propose or contribute 
to the risk-based analysis required by sub-
paragraph (A). 
‘‘(ii) 
FAILURE
TO
REACH
CON-
SENSUS.—If the Committee fails to reach 
consensus with respect to a recommendation
876 
† HR 5515 EAS 
under clause (i) regarding a covered trans-
action, the members of the Committee who 
support an alternative recommendation 
shall produce— 
‘‘(I) a written statement justi-
fying the alternative recommendation; 
and 
‘‘(II) as appropriate, a risk-based 
analysis that supports the alternative 
recommendation. 
‘‘(C) DEFINITIONS.—For purposes of sub-
paragraph 
(A), 
the 
terms 
‘threat’, 
‘vulnerabilities’, and ‘consequences to national 
security’ shall have the meanings given those 
terms by the Committee by regulation.’’; 
(6) in paragraph (5)(B), as redesignated by 
paragraph (2), by striking ‘‘(as defined in the Na-
tional Security Act of 1947)’’; and 
(7) in paragraph (6), as redesignated by para-
graph (2)— 
(A) in subparagraph (A)— 
(i) by striking ‘‘paragraph (1)’’ and 
inserting ‘‘paragraph (3)’’; and 
(ii) by striking the second sentence and 
inserting the following: ‘‘The lead agency
877 
† HR 5515 EAS 
may, at its discretion, seek and receive the 
assistance of other departments or agencies 
in carrying out the purposes of this para-
graph.’’; 
(B) in subparagraph (B)— 
(i) by striking ‘‘DESIGNATED AGENCY’’ 
and all that follows through ‘‘The lead agen-
cy in connection’’ and inserting ‘‘DES-
IGNATED AGENCY.—The lead agency in con-
nection’’; 
(ii) by striking clause (ii); and 
(iii) by redesignating subclauses (I) 
and (II) as clauses (i) and (ii), respectively, 
and by moving such clauses, as so redesig-
nated, 2 ems to the left; and 
(C) by adding at the end the following: 
‘‘(C) COMPLIANCE PLANS.— 
‘‘(i) IN GENERAL.—In the case of a 
covered transaction with respect to which 
an agreement is entered into under para-
graph (3)(A), the Committee or lead agency, 
as the case may be, shall formulate, adhere 
to, and keep updated a plan for monitoring 
compliance with the agreement.
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‘‘(ii) ELEMENTS.—Each plan required 
by clause (i) with respect to an agreement 
entered into under paragraph (3)(A) shall 
include an explanation of— 
‘‘(I) which member of the Com-
mittee will have primary responsibility 
for monitoring compliance with the 
agreement; 
‘‘(II) how compliance with the 
agreement will be monitored; 
‘‘(III) how frequently compliance 
reviews will be conducted; 
‘‘(IV) whether an independent en-
tity will be utilized under subpara-
graph (E) 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. 
‘‘(D) EFFECT OF LACK OF COMPLIANCE.— 
If, at any time after a mitigation agreement or 
condition is entered into or imposed under para-
graph (3)(A), the Committee or lead agency, as 
the case may be, determines that a party or par-
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ties to the agreement or condition are not in 
compliance with the terms of the agreement or 
condition, the Committee or lead agency may, in 
addition to the authority of the Committee to 
impose penalties pursuant to subsection (h)(3) 
and to unilaterally initiate a review of any cov-
ered 
transaction 
under 
subsection 
(b)(1)(D)(iii)— 
‘‘(i) negotiate a plan of action for the 
party or parties to remediate the lack of 
compliance, with failure to abide by the 
plan or otherwise remediate the lack of com-
pliance serving as the basis for the Com-
mittee to find a material breach of the 
agreement or condition; 
‘‘(ii) require that the party or parties 
submit a written notice under clause (i) of 
subsection (b)(1)(C) or a declaration under 
clause (v) of that subsection with respect to 
a covered transaction initiated after the 
date of the determination of noncompliance 
and before the date that is 5 years after the 
date of the determination to the Committee 
to initiate a review of the transaction under 
subsection (b); or
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‘‘(iii) seek injunctive relief. 
‘‘(E) USE OF INDEPENDENT ENTITIES TO 
MONITOR
COMPLIANCE.—If the parties to an 
agreement entered into under paragraph (3)(A) 
enter into a contract with an independent entity 
from outside the United States Government for 
the purpose of monitoring compliance with the 
agreement, the Committee shall take such action 
as is necessary to prevent a conflict of interest 
from arising by ensuring that the independent 
entity owes no fiduciary duty to the parties. 
‘‘(F) 
SUCCESSORS
AND
ASSIGNS.—Any 
agreement or condition entered into or imposed 
under paragraph (3)(A) shall be considered bind-
ing on all successors and assigns unless and 
until the agreement or condition terminates on 
its own terms or is otherwise terminated by the 
Committee in its sole discretion. 
‘‘(G) 
ADDITIONAL
COMPLIANCE
MEAS-
URES.—Subject to subparagraphs (A) through 
(F), the Committee shall develop and agree upon 
methods for evaluating compliance with any 
agreement entered into or condition imposed 
with respect to a covered transaction that will 
allow the Committee to adequately ensure com-
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pliance without unnecessarily diverting Com-
mittee resources from assessing any new covered 
transaction for which a written notice under 
clause (i) of subsection (b)(1)(C) or declaration 
under clause (v) of that subsection has been filed, 
and if necessary, reaching a mitigation agree-
ment with or imposing a condition on a party 
to such covered transaction or any covered trans-
action for which a review has been reopened for 
any reason.’’. 
SEC. 1718. MODIFICATION OF ANNUAL REPORT AND OTHER 
REPORTING REQUIREMENTS. 
(a) MODIFICATION
OF ANNUAL REPORT.—Section 
721(m) of the Defense Production Act of 1950 (50 U.S.C. 
4565(m)) is amended— 
(1) in paragraph (2)— 
(A) by amending subparagraph (A) to read 
as follows: 
‘‘(A) A list of all notices filed and all 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
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† HR 5515 EAS 
(l)(3)(A) with respect to the transaction 
being reviewed or investigated, and whether 
the President took any action under this 
section with respect to that transaction; 
‘‘(ii) basic information on each party 
to each such transaction; 
‘‘(iii) the nature of the business activi-
ties or products of the United States busi-
ness with which the transaction was entered 
into or intended to be entered into; and 
‘‘(iv) information about any with-
drawal from the process.’’; and 
(B) by adding at the end the following: 
‘‘(G) Statistics on compliance plans con-
ducted and actions taken by the Committee 
under subsection (l)(6), including subparagraph 
(D) of that subsection, during that period, a gen-
eral assessment of the compliance of parties with 
agreements entered into and conditions imposed 
under subsection (l)(3)(A) that are in effect dur-
ing that period, including a description of any 
actions taken by the Committee to impose pen-
alties or initiate a unilateral review pursuant to 
subsection (b)(1)(D)(iii), and any recommenda-