Title: Foreign Investment Risk Review Modernization Act of 2018
Policy area: Foreign Trade and International Finance

Summary:
Foreign Investment Risk Review Modernization Act of 2017
This bill amends the Defense Production Act of 1950 to expand the scope of "covered transaction" subject to the review of the Committee on Foreign Investment in the United States (CFIUS). CFIUS analyzes the national security implications of foreign investment in the United States.
A covered transaction includes:
The bill revises other provisions relating to CFIUS, including the length of its review period, special hiring authority and funding, and authority to mandate reviews or take unilateral action.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2098 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  1st Session
                                S. 2098

To modernize and strengthen the Committee on Foreign Investment in the 
    United States to more effectively guard against the risk to the 
   national security of the United States posed by certain types of 
              foreign investment, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 8, 2017

  Mr. Cornyn (for himself, Mrs. Feinstein, Mr. Burr, Mr. Peters, Mr. 
  Rubio, Ms. Klobuchar, Mr. Scott, Mr. Barrasso, Mr. Manchin, and Mr. 
   Lankford) introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To modernize and strengthen the Committee on Foreign Investment in the 
    United States to more effectively guard against the risk to the 
   national security of the United States posed by certain types of 
              foreign investment, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Foreign Investment 
Risk Review Modernization Act of 2017''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Sense of Congress.
Sec. 3. Definitions.
Sec. 4. Inclusion of partnership and side agreements in notice.
Sec. 5. Declarations relating to certain covered transactions.
Sec. 6. Stipulations regarding transactions.
Sec. 7. Authority for unilateral initiation of reviews.
Sec. 8. Timing for reviews and investigations.
Sec. 9. Monitoring of non-notified and non-declared transactions.
Sec. 10. Submission of certifications to Congress.
Sec. 11. Analysis by Director of National Intelligence.
Sec. 12. Information sharing.
Sec. 13. Action by the President.
Sec. 14. Judicial review procedures.
Sec. 15. Factors to be considered.
Sec. 16. Actions by the Committee to address national security risks.
Sec. 17. Modification of annual report.
Sec. 18. Certification of notices and information.
Sec. 19. Funding.
Sec. 20. Centralization of certain Committee functions.
Sec. 21. Unified budget request.
Sec. 22. Special hiring authority.
Sec. 23. Conforming amendments.
Sec. 24. Assessment of need for additional resources for Committee.
Sec. 25. Authorization for Defense Advanced Research Projects Agency to 
                            limit foreign access to technology through 
                            contracts and grant agreements.
Sec. 26. Effective date.
Sec. 27. Severability.

SEC. 2. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) foreign investment provides substantial economic 
        benefits to the United States, including the promotion of 
        economic growth, productivity, competitiveness, and job 
        creation, and the majority of foreign investment transactions 
        pose little or no risk to the national security of the United 
        States, especially when those investments are truly passive in 
        nature;
            (2) maintaining the commitment of the United States to open 
        and fair investment policy also encourages other countries to 
        reciprocate and helps open new foreign markets for United 
        States businesses and their products;
            (3) it should continue to be the policy of the United 
        States to enthusiastically welcome and support foreign 
        investment, consistent with the protection of national 
        security;
            (4) at the same time, the national security landscape has 
        shifted in recent years, and so have the nature of the 
        investments that pose the greatest potential risk to national 
        security, which warrants a modernization of the processes and 
        authorities of the Committee on Foreign Investment in the 
        United States;
            (5) the Committee on Foreign Investment in the United 
        States plays a critical role in protecting the national 
        security of the United States, and, therefore, it is essential 
        that the member agencies of the Committee are adequately 
        resourced and able to hire appropriately qualified individuals 
        in a timely manner, and that those individuals' security 
        clearances are processed as a high priority;
            (6) the President should conduct a more robust 
        international outreach effort to urge and help allies and 
        partners of the United States to establish processes that 
        parallel the Committee on Foreign Investment in the United 
        States to screen foreign investments for national security 
        risks and to facilitate coordination; and
            (7) the President should lead a collaborative effort with 
        allies and partners of the United States to develop a new, 
        stronger multilateral export control regime, aimed to address 
        the unprecedented industrial policies of certain countries of 
        special concern, including aggressive efforts to acquire United 
        States technology, and the blending of civil and military 
        programs.

SEC. 3. DEFINITIONS.

    Section 721(a) of the Defense Production Act of 1950 (50 U.S.C. 
4565(a)) is amended to read as follows:
    ``(a) Definitions.--In this section:
            ``(1) Access.--The term `access' means the ability and 
        opportunity to obtain information, subject to regulations 
        prescribed by the Committee.
            ``(2) Committee; chairperson.--The terms `Committee' and 
        `chairperson' mean the Committee on Foreign Investment in the 
        United States and the chairperson thereof, respectively.
            ``(3) Control.--The term `control' means the power to 
        determine, direct, or decide important matters affecting an 
        entity, subject to regulations prescribed by the Committee.
            ``(4) Country of special concern.--
                    ``(A) In general.--The term `country of special 
                concern' means a country that poses a significant 
                threat to the national security interests of the United 
                States.
                    ``(B) Rule of construction.--This paragraph shall 
                not be construed to require the Committee to maintain a 
                list of countries of special concern.
            ``(5) Covered transaction.--
                    ``(A) In general.--Except as otherwise provided, 
                the term `covered transaction' means any transaction 
                described in subparagraph (B) that is proposed, 
                pending, or completed on or after the date of the 
                enactment of the Foreign Investment Risk Review 
                Modernization Act of 2017.
                    ``(B) Transactions described.--A transaction 
                described in this subparagraph is any of the following:
                            ``(i) Any merger, acquisition, or takeover 
                        that is proposed or pending after August 23, 
                        1988, by or with any foreign person that could 
                        result in foreign control of any United States 
                        business.
                            ``(ii) The purchase or lease by a foreign 
                        person of private or public real estate that--
                                    ``(I) is located in the United 
                                States and is in close proximity to a 
                                United States military installation or 
                                to another facility or property of the 
                                United States Government that is 
                                sensitive for reasons relating to 
                                national security; and
                                    ``(II) meets such other criteria as 
                                the Committee prescribes by regulation.
                            ``(iii) Any other investment (other than 
                        passive investment) by a foreign person in any 
                        United States critical technology company or 
                        United States critical infrastructure company, 
                        subject to regulations prescribed under 
                        subparagraph (C).
                            ``(iv) 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 could result in--
                                    ``(I) foreign control of the United 
                                States business; or
                                    ``(II) an investment described in 
                                clause (iii).
                            ``(v) The contribution (other than through 
                        an ordinary customer relationship) by a United 
                        States critical technology company of both 
                        intellectual property and associated support to 
                        a foreign person through any type of 
                        arrangement, such as a joint venture, subject 
                        to regulations prescribed under subparagraph 
                        (C).
                            ``(vi) Any other transaction, transfer, 
                        agreement, or arrangement the structure of 
                        which is designed or intended to evade or 
                        circumvent the application of this section, 
                        subject to regulations prescribed by the 
                        Committee.
                    ``(C) Further definition through regulations.--
                            ``(i) Certain investments and 
                        contributions.--The Committee shall prescribe 
                        regulations further defining covered 
                        transactions described in clauses (iii) and (v) 
                        of subparagraph (B) by reference to the 
                        technology, sector, subsector, transaction 
                        type, or other characteristics of such 
                        transactions.
                            ``(ii) Exemption for transactions from 
                        identified countries.--The Committee may, by 
                        regulation, define circumstances in which a 
                        transaction otherwise described in clause (ii), 
                        (iii), or (v) of subparagraph (B) is excluded 
                        from the definition of `covered transaction' if 
                        each foreign person that is a party to the 
                        transaction is organized under the laws of, or 
                        otherwise subject to the jurisdiction of, a 
                        country identified by the Committee for 
                        purposes of this clause based on criteria such 
                        as--
                                    ``(I) whether the United States has 
                                in effect with that country a mutual 
                                defense treaty;
                                    ``(II) whether the United States 
                                has in effect with that country a 
                                mutual arrangement to safeguard 
                                national security as it pertains to 
                                foreign investment;
                                    ``(III) the national security 
                                review process for foreign investment 
                                of that country; and
                                    ``(IV) any other criteria that the 
                                Committee determines to be appropriate.
                            ``(iii) Exemption of certain 
                        contributions.--The Committee may, by 
                        regulation, define circumstances in which 
                        contributions otherwise described in 
                        subparagraph (B)(v) are excluded from the term 
                        `covered transaction' on the basis of a 
                        determination that other provisions of law are 
                        adequate to identify and address any potential 
                        national security risks posed by such 
                        contributions.
                            ``(iv) Transfers of certain assets pursuant 
                        to bankruptcy proceedings or other defaults.--
                        The Committee shall prescribe regulations to 
                        clarify that the term `covered transaction' 
                        includes any transaction described in 
                        subparagraph (B) that arises pursuant to a 
                        bankruptcy proceeding or other form of default 
                        on debt.
                    ``(D) Passive investment defined.--
                            ``(i) In general.--For purposes of 
                        subparagraph (B)(iii), the term `passive 
                        investment' means an investment by a foreign 
                        person in a United States business--
                                    ``(I) that is not described in 
                                subparagraph (B)(i);
                                    ``(II) that does not afford the 
                                foreign person--
                                            ``(aa) access to any 
                                        nonpublic technical information 
                                        in the possession of the United 
                                        States business;
                                            ``(bb) access to any 
                                        nontechnical information in the 
                                        possession of the United States 
                                        business that is not available 
                                        to all investors;
                                            ``(cc) membership or 
                                        observer rights on the board of 
                                        directors or equivalent 
                                        governing body of the United 
                                        States business or the right to 
                                        nominate an individual to such 
                                        a position; or
                                            ``(dd) any involvement, 
                                        other than through voting of 
                                        shares, in substantive 
                                        decisionmaking pertaining to 
                                        any matter involving the United 
                                        States business;
                                    ``(III) under which the foreign 
                                person and the United States business 
                                do not have a parallel strategic 
                                partnership or other material financial 
                                relationship, as described in 
                                regulations prescribed by the 
                                Committee; and
                                    ``(IV) that meets such other 
                                criteria as the Committee may prescribe 
                                by regulation.
                            ``(ii) Nonpublic technical information 
                        defined.--For purposes of clause (i)(II)(aa), 
                        the term `nonpublic technical information'--
                                    ``(I) has the meaning given that 
                                term in regulations prescribed by the 
                                Committee; and
                                    ``(II) includes information (either 
                                by itself or in conjunction with other 
                                information to which a foreign person 
                                may have access)--
                                            ``(aa) without which 
                                        critical technologies cannot be 
                                        designed, developed, tested, 
                                        produced, or manufactured; and
                                            ``(bb) in a quantity 
                                        sufficient to permit the 
                                        design, development, testing, 
                                        production, or manufacturing of 
                                        such technologies.
                            ``(iii) Nontechnical information defined.--
                        For purposes of clause (i)(II)(bb), the term 
                        `nontechnical information' has the meaning 
                        given that term in regulations prescribed by 
                        the Committee.
                            ``(iv) Effect of level of ownership 
                        interest.--A determination of whether an 
                        investment is a passive investment under clause 
                        (i) shall be made without regard to how low the 
                        level of ownership interest a foreign person 
                        would hold or acquire in a United States 
                        business would be as a result of the 
                        investment. The Committee may prescribe 
                        regulations specifying that any investment 
                        greater than a certain level or amount would 
                        not be considered a passive investment.
                            ``(v) Regulations.--The Committee shall 
                        prescribe regulations providing guidance on the 
                        types of transactions that the Committee 
                        considers to be passive investment.
                    ``(E) Associated support defined.--For purposes of 
                subparagraph (B)(v), the term `associated support' has 
                the meaning given that term in regulations prescribed 
                by the Committee.
                    ``(F) United states critical infrastructure company 
                defined.--For purposes of subparagraph (B), the term 
                `United States critical infrastructure company' means a 
                United States business that is, owns, operates, or 
                primarily provides services to, an entity or entities 
                that operate within a critical infrastructure sector or 
                subsector, as defined by regulations prescribed by the 
                Committee.
                    ``(G) United states critical technology company.--
                For purposes of subparagraph (B), the term `United 
                States critical technology company' means a United 
                States business that produces, trades in, designs, 
                tests, manufactures, services, or develops one or more 
                critical technologies, or a subset of such 
                technologies, as defined by regulations prescribed by 
                the Committee.
            ``(6) Critical infrastructure.--The term `critical 
        infrastructure' means, subject to regulations prescribed by the 
        Committee, systems and assets, whether physical or virtual, so 
        vital to the United States that the incapacity or destruction 
        of such systems or assets would have a debilitating impact on 
        national security.
            ``(7) Critical materials.--The term `critical materials' 
        means physical materials essential to national security, 
        subject to regulations prescribed by the Committee.
            ``(8) Critical technologies.--
                    ``(A) In general.--The term `critical technologies' 
                means technology, components, or technology items that 
                are essential or could be essential to national 
                security, identified for purposes of this section 
                pursuant to regulations prescribed by the Committee.
                    ``(B) Inclusion of certain items.--The term 
                `critical technologies' includes the following:
                            ``(i) Defense articles or defense services 
                        included on the United States Munitions List 
                        set forth in the International Traffic in Arms 
                        Regulations under subchapter M of chapter I of 
                        title 22, Code of Federal Regulations.
                            ``(ii) Items included on the Commerce 
                        Control List set forth in Supplement No. 1 to 
                        part 774 of the Export Administration 
                        Regulations under subchapter C of chapter VII 
                        of title 15, Code of Federal Regulations, and 
                        controlled--
                                    ``(I) pursuant to multilateral 
                                regimes, including for reasons relating 
                                to national security, chemical and 
                                biological weapons proliferation, 
                                nuclear nonproliferation, or missile 
                                technology; or
                                    ``(II) for reasons relating to 
                                regional stability or surreptitious 
                                listening.
                            ``(iii) Specially designed and prepared 
                        nuclear equipment, parts and components, 
                        materials, software, and technology covered by 
                        part 810 of title 10, Code of Federal 
                        Regulations (relating to assistance to foreign 
                        atomic energy activities).
                            ``(iv) Nuclear facilities, equipment, and 
                        material covered by part 110 of title 10, Code 
                        of Federal Regulations (relating to export and 
                        import of nuclear equipment and material).
                            ``(v) Select agents and toxins covered by 
                        part 331 of title 7, Code of Federal 
                        Regulations, part 121 of title 9 of such Code, 
                        or part 73 of title 42 of such Code.
                            ``(vi) Other emerging technologies that 
                        could be essential for maintaining or 
                        increasing the technological advantage of the 
                        United States over countries of special concern 
                        with respect to national defense, intelligence, 
                        or other areas of national security, or gaining 
                        such an advantage over such countries in areas 
                        where such an advantage may not currently 
                        exist.
            ``(9) Foreign government-controlled transaction.--The term 
        `foreign government-controlled transaction' means any covered 
        transaction that could result in the control of any United 
        States business by a foreign government or an entity controlled 
        by or acting on behalf of a foreign government.
            ``(10) Intellectual property.--The term `intellectual 
        property' has the meaning given that term in regulations 
        prescribed by the Committee.
            ``(11) Intelligence community.--The term `intelligence 
        community' has the meaning given that term in section 3(4) of 
        the National Security Act of 1947 (50 U.S.C. 3003(4)).
            ``(12) Investment.--The term `investment' means the 
        acquisition of equity interest, including contingent equity 
        interest, as further defined in regulations prescribed by the 
        Committee.
            ``(13) Lead agency.--The term `lead agency' means the 
        agency or agencies designated as the lead agency or agencies 
        pursuant to subsection (k)(5).
            ``(14) Malicious cyber-enabled activities.--The term 
        `malicious cyber-enabled activities' means any acts--
                    ``(A) primarily accomplished through or facilitated 
                by computers or other electronic devices;
                    ``(B) that are reasonably likely to result in, or 
                materially contribute to, a significant threat to the 
                national security of the United States; and
                    ``(C) that have the purpose or effect of--
                            ``(i) significantly compromising the 
                        provision of services by one or more entities 
                        in a critical infrastructure sector;
                            ``(ii) harming, or otherwise significantly 
                        compromising the provision of services by, a 
                        computer or network of computers that support 
                        one or more such entities;
                            ``(iii) causing a significant disruption to 
                        the availability of a computer or network of 
                        computers; or
                            ``(iv) causing a significant 
                        misappropriation of funds or economic 
                        resources, trade secrets, personally 
                        identifiable information, or financial 
                        information.
            ``(15) National security.--The term `national security' 
        shall be construed so as to include those issues relating to 
        `homeland security', including its application to critical 
        infrastructure.
            ``(16) Party.--The term `party' has the meaning given that 
        term in regulations prescribed by the Committee.
            ``(17) United states.--The term `United States' means the 
        several States, the District of Columbia, and any territory or 
        possession of the United States.
            ``(18) United states business.--The term `United States 
        business' means a person engaged in interstate commerce in the 
        United States.''.

SEC. 4. INCLUSION OF PARTNERSHIP AND SIDE AGREEMENTS 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.--A written notice submitted under 
                        clause (i) by a party to a covered transaction 
                        shall include a copy of any partnership 
                        agreements, integration agreements, or other 
                        side agreements relating to the transaction, 
                        including any such agreements relating to the 
                        transfer of intellectual property, as specified 
                        in regulations prescribed by the Committee.''.

SEC. 5. DECLARATIONS RELATING TO CERTAIN COVERED 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 4, is further amended by 
adding at the end the following:
                            ``(v) Declarations relating to certain 
                        covered transactions.--
                                    ``(I) Voluntary declarations.--
                                Except as provided in this clause, a 
                                party to any covered transaction may 
                                submit to the Committee a declaration 
                                with basic information regarding the 
                                transaction instead of a written notice 
                                under clause (i).
                                    ``(II) Mandatory declarations.--
                                            ``(aa) Certain covered 
                                        transactions with foreign 
                                        government interests.--The 
                                        parties to a covered 
                                        transaction shall submit a 
                                        declaration described in 
                                        subclause (I) with respect to 
                                        the transaction if the 
                                        transaction involves the 
                                        acquisition of a voting 
                                        interest of at least 25 percent 
                                        in a United States business by 
                                        a foreign person in which a 
                                        foreign government owns, 
                                        directly or indirectly, at 
                                        least a 25-percent voting 
                                        interest.
                                            ``(bb) Other declarations 
                                        required by committee.--The 
                                        Committee shall require the 
                                        submission of a declaration 
                                        described in subclause (I) with 
                                        respect to any covered 
                                        transaction identified under 
                                        regulations prescribed by the 
                                        Committee for purposes of this 
                                        item, at the discretion of the 
                                        Committee and based on 
                                        appropriate factors, such as--

                                                    ``(AA) the 
                                                technology, industry, 
                                                economic sector, or 
                                                economic subsector in 
                                                which the United States 
                                                business that is a 
                                                party to the 
                                                transaction trades or 
                                                of which it is a part;

                                                    ``(BB) the 
                                                difficulty of remedying 
                                                the harm to national 
                                                security that may 
                                                result from completion 
                                                of the transaction; and

                                                    ``(CC) the 
                                                difficulty of obtaining 
                                                information on the type 
                                                of covered transaction 
                                                through other means.

                                            ``(cc) Submission of 
                                        written notice as an 
                                        alternative.--Parties to a 
                                        covered transaction for which a 
                                        declaration is required under 
                                        this subclause may instead 
                                        elect to submit a written 
                                        notice under clause (i).
                                            ``(dd) Timing of 
                                        submission.--

                                                    ``(AA) In 
                                                general.--A declaration 
                                                required to be 
                                                submitted with respect 
                                                to a covered 
                                                transaction by item 
                                                (aa) or (bb) shall be 
                                                submitted not later 
                                                than 45 days before the 
                                                completion of the 
                                                transaction.

                                                    ``(BB) Written 
                                                notice.--If, pursuant 
                                                to item (cc), the 
                                                parties to a covered 
                                                transaction elect to 
                                                submit a written notice 
                                                under clause (i) 
                                                instead of a 
                                                declaration under this 
                                                subclause, the written 
                                                notice shall be filed 
                                                not later than 90 days 
                                                before the completion 
                                                of the transaction.

                                    ``(III) Penalties.--The Committee 
                                may impose a penalty pursuant to 
                                subsection (h)(3) 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 
                                        transaction, the Committee may, 
                                        at its discretion--

                                                    ``(AA) request that 
                                                the parties to the 
                                                transaction file a 
                                                written notice under 
                                                clause (i);

                                                    ``(BB) inform the 
                                                parties to the 
                                                transaction that the 
                                                Committee is not able 
                                                to complete action 
                                                under this section with 
                                                respect to the 
                                                transaction on the 
                                                basis of 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 
                                                transaction;

                                                    ``(CC) initiate a 
                                                unilateral review of 
                                                the transaction under 
                                                subparagraph (D); or

                                                    ``(DD) notify the 
                                                parties in writing that 
                                                the Committee has 
                                                completed all action 
                                                under this section with 
                                                respect to the 
                                                transaction.

                                            ``(bb) Timing.--The 
                                        Committee shall endeavor to 
                                        take action under item (aa) 
                                        within 30 days of receiving a 
                                        declaration under this clause.
                                            ``(cc) Rule of 
                                        construction.--Nothing in this 
                                        subclause (other than item 
                                        (aa)(CC)) shall be construed to 
                                        affect the authority of the 
                                        President or the Committee to 
                                        take any action authorized by 
                                        this section with respect to a 
                                        covered transaction.
                                    ``(V) Regulations.--The Committee 
                                shall prescribe regulations 
                                establishing requirements for 
                                declarations submitted under this 
                                clause. In prescribing such 
                                regulations, the Committee shall ensure 
                                that such declarations are submitted as 
                                abbreviated notifications that would 
                                not generally exceed 5 pages in 
                                length.''.

SEC. 6. 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 5, is further amended by 
adding at the end the following:
                            ``(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--
                                            ``(aa) stipulate that the 
                                        transaction is a covered 
                                        transaction; and
                                            ``(bb) if the party 
                                        stipulates that the transaction 
                                        is a covered transaction under 
                                        item (aa), stipulate 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 stipulation 
                                under subclause (I) shall include a 
                                description of the basis for the 
                                stipulation.''.

SEC. 7. AUTHORITY FOR UNILATERAL INITIATION OF REVIEWS.

    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)--
                    (A) in clause (i), by inserting ``(other than a 
                covered transaction described in subparagraph (E))'' 
                after ``any covered transaction'';
                    (B) 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 consideration 
                        of the transaction or omitted material 
                        information, including material documents, from 
                        information submitted to the Committee; or''; 
                        and
                    (C) in clause (iii)--
                            (i) in the matter preceding subclause (I), 
                        by striking ``any covered transaction that has 
                        previously been reviewed or investigated under 
                        this section,'' and inserting ``any covered 
                        transaction described in subparagraph (E),'';
                            (ii) in subclause (I), by striking 
                        ``intentionally'';
                            (iii) in subclause (II), by striking ``an 
                        intentional'' and inserting ``a''; and
                            (iv) in subclause (III), by inserting 
                        ``adequate and appropriate'' before ``remedies 
                        or enforcement tools''; and
            (3) by inserting after subparagraph (D) the following:
                    ``(E) Covered transactions described.--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 transaction; or
                            ``(ii) the President has announced a 
                        decision not to exercise the President's 
                        authority under subsection (d) with respect to 
                        the transaction.''.

SEC. 8. 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 7, is further amended--
            (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 
                        subparagraph (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 extraordinary 
                                circumstances (as defined by the 
                                Committee in regulations), the 
                                chairperson may, at the request of the 
                                head of the lead agency, extend an 
                                investigation under subparagraph (A) 
                                for one 30-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 
                                Secretary of the Treasury or the deputy 
                                head (or equivalent thereof) of the 
                                lead agency, as the case may be.
                                    ``(III) Notification to parties.--
                                If the Committee extends the deadline 
                                under subclause (I) with respect 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. 9. MONITORING OF NON-NOTIFIED AND NON-DECLARED TRANSACTIONS.

    Section 721(b)(1) of the Defense Production Act of 1950 (50 U.S.C. 
4565(b)(1)), as amended by section 7, is further amended by adding at 
the end the following:
                    ``(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 
                        subparagraph (C) or a declaration under clause 
                        (v) of that subparagraph is not submitted to 
                        the Committee; and
                            ``(ii) information is reasonably 
                        available.''.

SEC. 10. 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 
                                certifications.--
                                            ``(aa) In general.--Subject 
                                        to item (bb), the chairperson, 
                                        in consultation with the 
                                        Committee, may determine the 
                                        level of official to whom the 
                                        signature requirement under 
                                        subclause (I) for the 
                                        chairperson and the head of the 
                                        lead agency may be delegated. 
                                        The level of official to whom 
                                        the signature requirement may 
                                        be delegated may differ based 
                                        on any factor relating to a 
                                        transaction that the 
                                        chairperson, in consultation 
                                        with the Committee, deems 
                                        appropriate, including the type 
                                        or value of the transaction.
                                            ``(bb) Limitations.--The 
                                        signature requirement under 
                                        subclause (I) may be 
                                        delegated--

                                                    ``(AA) in the case 
                                                of a covered 
                                                transaction assessed by 
                                                the Director of 
                                                National Intelligence 
                                                under paragraph (4) as 
                                                more likely than not to 
                                                threaten the national 
                                                security of the United 
                                                States, not below the 
                                                level of the Assistant 
                                                Secretary of the 
                                                Treasury or an 
                                                equivalent official of 
                                                another agency or 
                                                department represented 
                                                on the Committee; and

                                                    ``(BB) in the case 
                                                of any other covered 
                                                transaction, not below 
                                                the level of a Deputy 
                                                Assistant Secretary of 
                                                the Treasury or an 
                                                equivalent official of 
                                                another agency or 
                                                department represented 
                                                on the Committee.''; 
                                                and

            (3) by adding at 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 notices and reports in a 
                        consolidated document to the Members of 
                        Congress specified in clause (iii).''.

SEC. 11. ANALYSIS BY DIRECTOR OF NATIONAL INTELLIGENCE.

    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 intelligence relevant to the 
                        analysis.
                            ``(ii) Views of intelligence agencies.--The 
                        Director shall seek and incorporate 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 objectivity.--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, 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), respectively;
            (3) by inserting after subparagraph (A) the following:
                    ``(B) Basic threat information.--
                            ``(i) In general.--The Director of National 
                        Intelligence may provide the Committee with 
                        basic information regarding 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 
                        subparagraph (A).
                            ``(ii) Covered transaction described.--A 
                        covered transaction is described in this clause 
                        if--
                                    ``(I) the transaction is described 
                                in subsection (a)(5)(B)(ii);
                                    ``(II) the Director of National 
                                Intelligence has completed an analysis 
                                pursuant to subparagraph (A) involving 
                                each foreign person that is a party to 
                                the transaction during the 12 months 
                                preceding the review or investigation 
                                of the transaction under this section; 
                                or
                                    ``(III) the transaction otherwise 
                                meets criteria agreed upon by the 
                                Committee and the Director of National 
                                Intelligence 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 impact.--The 
                Director may provide to the Committee an assessment, 
                separate from the analyses 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 
                submit the analysis required by subparagraph (A) with 
                respect to a covered transaction to the Select 
                Committee on Intelligence of the Senate and the 
                Permanent Select Committee on Intelligence of the House 
                of Representatives upon the conclusion of action under 
                this section (other than compliance reviews under 
                subsection (l)(6)) with respect to the transaction.''.

SEC. 12. 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 paragraph (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 prohibit the 
        disclosure of the following:
                    ``(A) Information relevant to any administrative or 
                judicial action or proceeding.
                    ``(B) Information to either House of Congress or to 
                any duly authorized committee or subcommittee of 
                Congress.
                    ``(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.
                    ``(D) Information that the parties have consented 
                to be disclosed to third parties.''.

SEC. 13. ACTION BY THE PRESIDENT.

    (a) In General.--Section 721(d) of the Defense Production 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--
                    ``(A) take such action for such time as the 
                President considers appropriate to suspend or prohibit 
                the transaction or to require divestment; and
                    ``(B) in conjunction with taking any such action, 
                take any additional action the President considers 
                appropriate to address the risk to the national 
                security of the United States identified during the 
                review and investigation of the transaction under this 
                section.''; and
            (2) in paragraph (2), by striking ``not later than 15 
        days'' and all that follows and inserting the following: ``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 completed; or
                    ``(B) the date on which the Committee otherwise 
                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 ``including any mitigation agreement entered into, 
conditions imposed, or order issued pursuant to this section''.

SEC. 14. JUDICIAL REVIEW PROCEDURES.

    Section 721(e) of the Defense Production Act of 1950 (50 U.S.C. 
4565) is amended to read as follows:
    ``(e) Actions and Findings Nonreviewable.--
            ``(1) Actions and findings of the president.--The actions 
        and findings of the President or the President's designee under 
        this section shall not be subject to judicial review, including 
        claims under chapter 7 of title 5, United States Code.
            ``(2) Actions and findings of the committee.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the actions and findings of the 
                Committee under subsection (b) or (l), and any 
                assessment of penalties or use of enforcement 
                authorities under this section, shall not be subject to 
                judicial review, including claims under chapter 7 of 
                title 5, United States Code.
                    ``(B) Petitions.--
                            ``(i) Definition.--In this subparagraph, 
                        the term `classified information' means any 
                        information or material that has been 
                        determined by the United States Government 
                        pursuant to an Executive order, statute, or 
                        regulation to require protection against 
                        unauthorized disclosure for reasons of national 
                        security and any restricted data, as defined in 
                        section 11 of the Atomic Energy Act of 1954 (42 
                        U.S.C. 2014).
                            ``(ii) Petition.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), not later 
                                than 60 days after the date on which 
                                the President or the Committee takes an 
                                action with respect to the covered 
                                transaction, any party to the covered 
                                transaction may file a petition under 
                                this subparagraph alleging that the 
                                action of the Committee is a violation 
                                of a constitutional right, power, 
                                privilege, or immunity.
                                    ``(II) Notification.--No party to a 
                                covered transaction shall be permitted 
                                to file a petition or any claim related 
                                to a petition under subclause (I) 
                                unless--
                                            ``(aa) the party initiated 
                                        the review of the transaction 
                                        pursuant to a written notice 
                                        filed under clause (i) of 
                                        subsection (b)(1)(C) or a 
                                        declaration filed under clause 
                                        (v) of that subsection or the 
                                        Committee determines that such 
                                        a notice or declaration was not 
                                        required; and
                                            ``(bb) the Committee has 
                                        completed all action under this 
                                        section with respect to the 
                                        transaction.
                                    ``(III) Related claims.--Any claims 
                                related to a petition filed under this 
                                clause shall be filed before the date 
                                described in subclause (I).
                            ``(iii) Exclusive jurisdiction.--
                                    ``(I) In general.--The United 
                                States Court of Appeals for the 
                                District of Columbia Circuit shall have 
                                exclusive jurisdiction over claims 
                                arising under this subparagraph, 
                                subject to review by the Supreme Court 
                                of the United States under section 1254 
                                of title 28, United States Code, only--
                                            ``(aa) to affirm the action 
                                        of the Committee; or
                                            ``(bb) to remand the case 
                                        to the Committee for further 
                                        consideration.
                                    ``(II) Standard of review.--The 
                                court shall uphold an action challenged 
                                under this subparagraph unless the 
                                court finds that the action was 
                                contrary to a constitutional right, 
                                power, privilege, or immunity.
                            ``(iv) Scope of review.--In a claim under 
                        this subparagraph, the court shall decide all 
                        relevant questions based solely on any 
                        administrative record submitted by the United 
                        States under clause (v).
                            ``(v) Administrative record and 
                        procedures.--
                                    ``(I) In general.--Notwithstanding 
                                any other provision of law, the 
                                procedures described in this clause 
                                shall apply to the review of a petition 
                                under this subparagraph.
                                    ``(II) Administrative record.--
                                            ``(aa) Filing of record.--
                                        The United States shall file 
                                        with the court an 
                                        administrative record, which 
                                        shall consist of the 
                                        information that the parties 
                                        submitted to the Committee and 
                                        that the Committee relied upon 
                                        in support of the action of the 
                                        Committee under review.
                                            ``(bb) Unclassified, 
                                        nonprivileged information.--All 
                                        unclassified information 
                                        contained in the administrative 
                                        record that is not otherwise 
                                        privileged or subject to 
                                        statutory protections shall be 
                                        provided to the petitioner with 
                                        appropriate protections for any 
                                        privileged or confidential 
                                        trade secrets and commercial or 
                                        financial information.
                                            ``(cc) Discovery bar.--
                                        Other than the provision of 
                                        information in the 
                                        administrative record described 
                                        in subparagraph (II)(bb), no 
                                        discovery shall be permitted.
                                            ``(dd) In camera and ex 
                                        parte.--The following 
                                        information may be included in 
                                        the administrative record and 
                                        shall be submitted only to the 
                                        court ex parte and in camera:

                                                    ``(AA) Unclassified 
                                                information subject to 
                                                privilege or statutory 
                                                protections.

                                                    ``(BB) Classified 
                                                information.

                                                    ``(CC) Sensitive 
                                                security information.

                                                    ``(DD) Sensitive 
                                                law enforcement 
                                                information.

                                                    ``(EE) Information 
                                                obtained or derived 
                                                from any activity 
                                                authorized under the 
                                                Foreign Intelligence 
                                                Surveillance Act of 
                                                1978 (50 U.S.C. 1801 et 
                                                seq.), except that, 
                                                with respect to such 
                                                information, 
                                                subsections (c), (e), 
                                                (f), (g), and (h) of 
                                                section 106 (50 U.S.C. 
                                                1806), subsections (d), 
                                                (f), (g), (h), and (i) 
                                                of section 305 (50 
                                                U.S.C. 1825), 
                                                subsections (c), (e), 
                                                (f), (g), and (h) of 
                                                section 405 (50 U.S.C. 
                                                1845), and section 706 
                                                (50 U.S.C. 1881e) of 
                                                that Act shall not 
                                                apply.

                                            ``(ee) Under seal.--Any 
                                        classified information, 
                                        sensitive security information, 
                                        law enforcement sensitive 
                                        information, or information 
                                        that is otherwise privileged or 
                                        subject to statutory 
                                        protections, that is part of 
                                        the administrative record filed 
                                        ex parte and in camera, or 
                                        cited by the court in any 
                                        decision, shall be treated by 
                                        the court consistent with the 
                                        provisions of this 
                                        subparagraph, and shall remain 
                                        under seal and preserved in the 
                                        records of the court to be made 
                                        available in the event of 
                                        further proceedings. In no 
                                        event shall such information be 
                                        released to the claimant or as 
                                        part of the public record.
                                            ``(ff) Return.--After the 
                                        expiration of the time to seek 
                                        further review, or the 
                                        conclusion of further 
                                        proceedings, the court shall 
                                        return the administrative 
                                        record, including any and all 
                                        copies, to the United States.
                                            ``(gg) Consideration of 
                                        claim without information in 
                                        administrative record.--If, on 
                                        motion or sua sponte, the court 
                                        determines that the claim may 
                                        be considered without any of 
                                        the information in the 
                                        administrative record, the 
                                        court shall require that only 
                                        the necessary information, if 
                                        any, from the record be 
                                        provided to the parties.
                            ``(vi) Exclusive remedy.--A determination 
                        by the court under this subparagraph shall be 
                        the exclusive judicial remedy for any claim 
                        described in this subparagraph against the 
                        United States, any United States department or 
                        agency, or any component or official of any 
                        such department or agency.
                            ``(vii) Rule of construction.--Nothing in 
                        this subparagraph shall be construed as 
                        limiting, superseding, or preventing the 
                        invocation of, any privileges or defenses that 
                        are otherwise available at law or in equity to 
                        protect against the disclosure of 
                        information.''.

SEC. 15. 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 (1), by inserting ``including whether the 
        covered transaction is likely to result in the increased 
        reliance by the United States on foreign suppliers to meet 
        national defense requirements;'' after ``defense 
        requirements,'';
            (2) in paragraph (4), by striking ``proposed or pending'';
            (3) by striking paragraph (5) and insert the following:
            ``(5) the potential effects of the covered transaction on 
        United States international technological and industrial 
        leadership in areas affecting United States national security, 
        including whether the transaction is likely to reduce the 
        technological and industrial advantage of the United States 
        relative to any country of special concern;'';
            (4) in paragraph (6), by inserting ``and transportation 
        assets, as defined in Presidential Policy Directive 21 
        (February 12, 2013; relating to critical infrastructure 
        security and resilience) or any successor directive'' after 
        ``energy assets'';
            (5) in paragraph (7), by inserting ``, including whether 
        the covered transaction is likely to contribute to the loss of 
        or other adverse effects on technologies that provide a 
        strategic national security advantage to the United States'' 
        after ``critical technologies'';
            (6) in paragraph (10), by striking ``; and'' and inserting 
        a semicolon;
            (7) by redesignating paragraph (11) as paragraph (20); and
            (8) by inserting after paragraph (10) the following:
            ``(11) the degree to which the covered transaction is 
        likely to increase the cost to the United States Government of 
        acquiring or maintaining the equipment and systems that are 
        necessary for defense, intelligence, or other national security 
        functions;
            ``(12) the potential national security-related effects of 
        the cumulative market share of any one type of infrastructure, 
        energy asset, critical material, or critical technology by 
        foreign persons;
            ``(13) whether any foreign person that would acquire an 
        interest in a United States business or its assets as a result 
        of the covered transaction has a history of--
                    ``(A) complying with United States laws and 
                regulations, including laws and regulations pertaining 
                to exports, the protection of intellectual property, 
                and immigration; and
                    ``(B) adhering to contracts or other agreements 
                with entities of the United States Government;
            ``(14) the extent to which the covered transaction is 
        likely to expose, either directly or indirectly, personally 
        identifiable information, genetic information, or other 
        sensitive data of United States citizens to access by a foreign 
        government or foreign person that may exploit that information 
        in a manner that threatens national security;
            ``(15) whether the covered transaction is likely to have 
        the effect of creating any new cybersecurity vulnerabilities in 
        the United States or exacerbating existing cybersecurity 
        vulnerabilities;
            ``(16) whether the covered transaction is likely to result 
        in a foreign government gaining a significant new capability to 
        engage in malicious cyber-enabled activities against the United 
        States, including such activities designed to affect the 
        outcome of any election for Federal office;
            ``(17) whether the covered transaction involves a country 
        of special concern that has a demonstrated or declared 
        strategic goal of acquiring a type of critical technology that 
        a United States business that is a party to the transaction 
        possesses;
            ``(18) whether the covered transaction is likely to 
        facilitate criminal or fraudulent activity affecting the 
        national security of the United States;
            ``(19) whether the covered transaction is likely to expose 
        any information regarding sensitive national security matters 
        or sensitive procedures or operations of a Federal law 
        enforcement agency with national security responsibilities to a 
        foreign person not authorized to receive that information; 
        and''.

SEC. 16. ACTIONS BY THE COMMITTEE 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 the subsection heading, by striking ``Mitigation, 
        Tracking, and Postconsummation Monitoring and Enforcement'' and 
        inserting ``Actions by the Committee To Address National 
        Security Risks'';
            (2) by redesignating paragraphs (1), (2), and (3) as 
        paragraphs (3), (5), and (6), respectively;
            (3) by inserting before paragraph (3), as redesignated by 
        paragraph (2), the following:
            ``(1) Suspension of transactions.--The Committee, 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).
            ``(2) Referral to president.--The Committee may, at any 
        time during the review or investigation of a covered 
        transaction under subsection (b), complete 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 paragraph (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 transactions.--If a 
                        party to a covered transaction 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 agreement or condition with any 
                        party to the covered transaction for purposes 
                        of effectuating 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 impose, and enforce any agreement 
                        or condition with any party to a completed 
                        covered transaction in order to mitigate any 
                        interim 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 pursuant 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 inserting the 
                following:
                    ``(B) 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 
                national security concerns posed by the transaction, 
                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.
                    ``(C) Jurisdiction.--The provisions of section 
                706(b) shall apply to any mitigation agreement entered 
                into or condition imposed under subparagraph (A).'';
            (5) by inserting after paragraph (3), as redesignated 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 transaction 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 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--
                            ``(i) an assessment of--
                                    ``(I) the national security threat 
                                posed by the transaction, taking into 
                                account the analysis conducted by the 
                                Director of National Intelligence under 
                                subsection (b)(4);
                                    ``(II) any national security 
                                vulnerabilities related to the 
                                transaction; and
                                    ``(III) the potential national 
                                security consequences of the 
                                transaction; and
                            ``(ii) an identification of any of the 
                        factors described in subsection (f) that the 
                        transaction may substantially implicate.
                    ``(B) Actions of members of the committee.--
                            ``(i) In general.--Any member of the 
                        Committee who concludes that a covered 
                        transaction poses an unresolved national 
                        security concern shall recommend to the 
                        Committee that the Committee suspend the 
                        transaction under paragraph (1), refer the 
                        transaction to the President under paragraph 
                        (2), or negotiate, enter into or impose, or 
                        enforce any agreement or condition under 
                        paragraph (3)(A) with respect to the 
                        transaction. In making that recommendation, the 
                        member shall propose the risk-based analysis 
                        required by subparagraph (A).
                            ``(ii) Failure to reach consensus.--If the 
                        Committee fails to reach consensus with respect 
                        to a recommendation under clause (i) regarding 
                        a covered transaction, the members of the 
                        Committee who support an alternative 
                        recommendation shall produce--
                                    ``(I) a written statement 
                                justifying the alternative 
                                recommendation; and
                                    ``(II) as appropriate, a risk-based 
                                analysis that supports the alternative 
                                recommendation.'';
            (6) in paragraph (5), as redesignated by paragraph (2), by 
        striking ``(as defined in the National Security Act of 1947)''; 
        and
            (7) in paragraph (6), as redesignated by paragraph (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 may, 
                        at its discretion, seek and receive the 
                        assistance of other departments or agencies in 
                        carrying out the purposes of this paragraph.'';
                    (B) in subparagraph (B)--
                            (i) by striking ``designated agency'' and 
                        all that follows through ``The lead agency in 
                        connection'' and inserting ``designated 
                        agency.--The lead agency in connection'';
                            (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 redesignated, 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 paragraph (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.
                            ``(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 Committee 
                                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 
                                entity will be utilized under 
                                subparagraph (E) to conduct compliance 
                                reviews; and
                                    ``(V) what actions will be taken if 
                                the parties fail to cooperate regarding 
                                monitoring compliance with the 
                                agreement.
                    ``(D) Effect of lack of compliance.--If, at any 
                time after a mitigation agreement or condition is 
                entered into or imposed under paragraph (3)(A), the 
                Committee or lead agency, 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 Committee to 
                impose penalties pursuant to subsection (h)(3) and to 
                unilaterally initiate a review of any covered 
                transaction under subsection (b)(1)(D)(iii)(I)--
                            ``(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 compliance 
                        serving as the basis for the Committee to find 
                        a material breach of the agreement or 
                        condition;
                            ``(ii) require that the party or parties 
                        submit any 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 for 
                        review under subsection (b); or
                            ``(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) Additional compliance measures.--Subject to 
                subparagraphs (A) through (E), 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 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) 
                or declaration under clause (v) of that subsection has 
                been filed, and if necessary, reaching a mitigation 
                agreement with or imposing a condition on a party to 
                such covered transaction or any covered transaction for 
                which a review has been reopened for any reason.''.

SEC. 17. 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 (1), by striking ``committee'' and all 
        that follows through ``Representatives,'' and inserting 
        ``appropriate congressional committees'';
            (2) in paragraph (2)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) A list of all notices filed and all reviews 
                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 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 
                        activities or products of the United States 
                        business with which the transaction was entered 
                        into or intended to be entered into; and
                            ``(iv) information about any withdrawal 
                        from the process.'';
                    (B) by adding at the end the following:
                    ``(G) Statistics on compliance reviews conducted 
                and actions taken by the Committee under subsection 
                (l)(6), including subparagraph (D) of that subsection, 
                during that period and a description of any actions 
                taken by the Committee to impose penalties or initiate 
                a unilateral review pursuant to subsection 
                (b)(1)(D)(iii)(I).'';
            (3) in paragraph (3)--
                    (A) by striking ``critical technologies'' and all 
                that follows through ``In order to assist'' and 
                inserting ``critical technologies.--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 redesignated, 2 ems to the 
                left; and
            (4) by adding at the end the following:
            ``(4) Biennial intelligence community report.--
                    ``(A) In general.--The Director of National 
                Intelligence shall transmit to the chairperson, for 
                inclusion in a classified portion of each report 
                required to be submitted under paragraph (1) during 
                calendar year 2018 and every even-numbered year 
                thereafter, the report of the interagency group 
                established under subparagraph (C).
                    ``(B) Elements.--The report referred to in 
                subparagraph (A) shall include an identification, 
                analysis, and explanation of the following:
                            ``(i) Any current or projected major 
                        threats to the national security of the United 
                        States with respect to foreign investment.
                            ``(ii) Any strategies used by countries of 
                        special concern to utilize foreign investment 
                        to target the acquisition of critical 
                        technologies, critical materials, or critical 
                        infrastructure.
                            ``(iii) Any economic espionage efforts 
                        directed at the United States by a foreign 
                        country, particularly a country of special 
                        concern.
                    ``(C) Intelligence community interagency working 
                group.--The Director of National Intelligence--
                            ``(i) shall establish an interagency 
                        working group, composed of representatives of 
                        elements of the intelligence community, to 
                        prepare the report required under this 
                        paragraph;
                            ``(ii) shall serve as the chairperson of 
                        the interagency working group; and
                            ``(iii) may consult with and seek input 
                        from any member of the Committee, as the 
                        Director considers necessary.
            ``(5) Classification; availability of report.--
                    ``(A) Classification.--All appropriate portions of 
                the annual report required by paragraph (1) may be 
                classified.
                    ``(B) Public availability of unclassified 
                version.--An unclassified version of the report 
                required by paragraph (1), as appropriate and 
                consistent with safeguarding national security and 
                privacy, shall be made available 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 unclassified version.
                    ``(C) Exceptions to freedom of information act.--
                The exceptions to subsection (a) of section 552 of 
                title 5, United States Code, provided for under 
                subsection (b) of that section shall apply with respect 
                to the report required by paragraph (1).
            ``(6) Appropriate congressional committees defined.--In 
        this subsection, the term `appropriate congressional 
        committees' means--
                    ``(A) the Committee on Banking, Housing, and Urban 
                Affairs, the Select Committee on Intelligence, the 
                Committee on Armed Services, the Committee on the 
                Judiciary, and the Committee on Homeland Security and 
                Governmental Affairs of the Senate; and
                    ``(B) the Committee on Financial Services, the 
                Permanent Select Committee on Intelligence, the 
                Committee on Armed Services, the Committee on the 
                Judiciary, and the Committee on Homeland Security of 
                the House of Representatives.''.

SEC. 18. 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 prohibit 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 information in a 
                notice or information described in paragraph (1) or 
                omitted material information from such notice or 
                information.
            ``(3) Applicability of law on fraud and false statements.--
        The Committee shall prescribe regulations expressly providing 
        for the application 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 transaction.''.

SEC. 19. FUNDING.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. 4565) 
is amended by adding at the end the following:
    ``(o) Funding.--
            ``(1) Establishment of fund.--There is established in the 
        Treasury of the United States a fund, to be known as the 
        `Committee on Foreign Investment in the United States Fund' (in 
        this subsection referred to as the `Fund').
            ``(2) Appropriation of funds for the committee.--There are 
        authorized to be appropriated to the Fund such sums as may be 
        necessary to perform the functions of the Committee.
            ``(3) Filing fees.--
                    ``(A) In general.--The Committee may assess and 
                collect a fee in an amount determined by the Committee 
                in regulations, to the extent provided in advance in 
                appropriations Acts, without regard to section 9701 of 
                title 31, United States Code, and subject to 
                subparagraph (B), with respect to each covered 
                transaction for which a written notice is submitted to 
                the Committee under subsection (b)(1)(C)(i).
                    ``(B) Limitation on amount of fee.--The amount of 
                the fee determined under subparagraph (A) with respect 
                to a covered transaction described in that subparagraph 
                may not exceed an amount equal to the lesser of--
                            ``(i) 1 percent of the value of the 
                        transaction; or
                            ``(ii) $300,000, adjusted annually for 
                        inflation pursuant to regulations prescribed by 
                        the Committee.
                    ``(C) Deposit and availability of fees.--
                Notwithstanding section 3302 of title 31, United States 
                Code, fees collected under subparagraph (A) shall--
                            ``(i) be deposited as offsetting 
                        collections into the Fund for use in carrying 
                        out activities under this section;
                            ``(ii) to the extent and in the amounts 
                        provided in advance in appropriations Acts, be 
                        available to the chairperson;
                            ``(iii) remain available until expended; 
                        and
                            ``(iv) be in addition to any appropriations 
                        made available to the members of the Committee.
            ``(4) Transfer of funds.--The chairperson may transfer any 
        amounts in the Fund to any other department or agency 
        represented on the Committee for the purpose of addressing 
        emerging needs in carrying out activities under this section. 
        Amounts so transferred shall be in addition to any other 
        amounts available to that department or agency for that 
        purpose.''.

SEC. 20. CENTRALIZATION OF CERTAIN COMMITTEE FUNCTIONS.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. 4565), 
as amended by section 19, is further amended by adding at the end the 
following:
    ``(p) Centralization of Certain Committee Functions.--
            ``(1) In general.--The chairperson, in consultation with 
        the Committee, may centralize certain functions of the 
        Committee within the Department of the Treasury for the purpose 
        of enhancing interagency coordination and collaboration in 
        carrying out the functions of the Committee under this section.
            ``(2) Functions.--Functions that may be centralized under 
        paragraph (1) include monitoring non-notified and non-declared 
        transactions pursuant to subsection (b)(1)(H), and other 
        functions as determined by the chairperson and the Committee.
            ``(3) Rule of construction.--Nothing in this section shall 
        be construed as limiting the authority of any department or 
        agency represented on the Committee to represent its own 
        interests before the Committee.''.

SEC. 21. UNIFIED BUDGET REQUEST.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. 4565), 
as amended by sections 19 and 20, is further amended by adding at the 
end the following:
    ``(q) 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 
        conducted by some or all of the departments and agencies 
        represented on the Committee.
            ``(2) Form of budget request.--A unified request under 
        paragraph (1) should be detailed and include the amounts 
        requested for each department or agency represented on the 
        Committee to carry out the functions of that department or 
        agency under this section.''.

SEC. 22. SPECIAL HIRING AUTHORITY.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. 4565), 
as amended by sections 19, 20, and 21, is further amended by adding at 
the end the following:
    ``(r) Special Hiring Authority.--The heads of the departments and 
agencies represented 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 administer this section.''.

SEC. 23. CONFORMING AMENDMENTS.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. 4565), 
as amended by this Act, is further amended--
            (1) in subsection (b)(2)(B)(i)(I), by striking ``that 
        threat'' and inserting ``the risk''; and
            (2) in subsection (d)(4)(A), 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. 24. ASSESSMENT OF NEED FOR ADDITIONAL RESOURCES FOR COMMITTEE.

    The President shall--
            (1) determine whether and to what extent the expansion of 
        the responsibilities of the Committee on Foreign Investment in 
        the United States pursuant to the amendments made by this Act 
        necessitates additional resources for the Committee and members 
        of the Committee to perform their functions under section 721 
        of the Defense Production Act of 1950, as amended by this Act; 
        and
            (2) if the President determines that additional resources 
        are necessary, include in the budget of the President for 
        fiscal year 2019 submitted to Congress under section 1105(a) of 
        title 31, United States Code, a request for such additional 
        resources.

SEC. 25. AUTHORIZATION FOR DEFENSE ADVANCED RESEARCH PROJECTS AGENCY TO 
              LIMIT FOREIGN ACCESS TO TECHNOLOGY THROUGH CONTRACTS AND 
              GRANT AGREEMENTS.

    (a) In General.--The Director of the Defense Advanced Research 
Projects Agency, or a designee of the Director, may include in any 
contract or grant agreement that the Director enters into with a 
person, and that is funded by that Agency, a provision that--
            (1) limits access by any foreign person to technology that 
        is the subject of the contract or grant agreement under terms 
        defined by the Director, including by limiting such access to 
        specific periods of time; and
            (2) in a case in which the person violates the prohibition 
        described in paragraph (1), requires the person to return all 
        amounts that the person received from the Agency under the 
        contract or grant agreement.
    (b) Treatment of Returned Funds.--Any amounts returned to the 
Defense Advanced Research Projects Agency under subsection (a)(2) shall 
be credited to the same appropriations account from which payment of 
such amounts was originally made under the contract or grant agreement 
described in subsection (a).
    (c) Exercise of Authority.--The Director, or the designee of the 
Director, may exercise the authority provided by this section without 
the need for further approval by, or regulatory implementation within, 
the Department of Defense.

SEC. 26. EFFECTIVE DATE.

    (a) Immediate Applicability of Certain Provisions.--The following 
shall take effect on the date of the enactment of this Act and apply 
with respect to any covered transaction the review or investigation of 
which is initiated under section 721 of the Defense Production Act of 
1950 on or after such date of enactment:
            (1) Sections 4, 6, 8, 12, 13, 14, 15, 18, 20, 21, 22, 24, 
        and 25 and the amendments made by those sections.
            (2) Section 11 and the amendments made by that section 
        (except for clause (iii) of section 721(b)(4)(A) of the Defense 
        Production Act of 1950, as added by section 11).
            (3) Paragraphs (5)(C)(iv), (7), and (14) of subsection (a) 
        of section 721 of the Defense Production Act of 1950, as 
        amended by section 3.
            (4) Section 721(m)(4) of the Defense Production Act of 
        1950, as amended by section 17.
    (b) Delayed Applicability of Certain Provisions.--
            (1) In general.--Any provision of or amendment made by this 
        Act not specified in subsection (a) shall--
                    (A) take effect on the date that is 30 days after 
                publication in the Federal Register of a determination 
                by the chairperson of the Committee on Foreign 
                Investment in the United States that the regulations, 
                organizational structure, personnel, and other 
                resources necessary to administer the new provisions 
                are in place; and
                    (B) apply with respect to any covered transaction 
                the review or investigation of which is initiated under 
                section 721 of the Defense Production Act of 1950 on or 
                after the date described in subparagraph (A).
            (2) Nondelegation of determination.--The determination of 
        the chairperson of the Committee on Foreign Investment in the 
        United States under paragraph (1)(A) may not be delegated.
    (c) Authorization for Pilot Programs.--
            (1) In general.--Beginning on the date of the enactment of 
        this Act and ending on the date described in subsection 
        (b)(1)(A), the Committee on Foreign Investment in the United 
        States may, at its discretion, conduct one or more pilot 
        programs to implement any authority provided pursuant to any 
        provision of or amendment made by this Act not specified in 
        subsection (a).
            (2) Publication in federal register.--A pilot program may 
        not commence until the date that is 30 days after publication 
        in the Federal Register of a determination by the chairperson 
        of the Committee of the scope of and procedures for the pilot 
        program. That determination may not be delegated.

SEC. 27. SEVERABILITY.

    If any provision of this Act or an amendment made by this Act, or 
the application of such a provision or amendment to any person or 
circumstance, is held to be invalid, the application of that provision 
or amendment to other persons or circumstances and the remainder of the 
provisions of this Act and the amendments made by this Act, shall not 
be affected thereby.
                                 <all>