Title: National Critical Capabilities Defense Act of 2020
Policy area: Foreign Trade and International Finance

Summary:
National Critical Capabilities Defense Act of 2020
This bill establishes the Committee on National Critical Capabilities to review specified forms of outbound investment, including any merger, acquisition, or takeover of a foreign person by or with a U.S. business that could result in a threat to national critical capabilities. Further, the bill establishes a congressional commission to review the activities of the committee, and it authorizes the President to suspend or prohibit transactions that pose a threat to national critical capabilities.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 5049 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 5049

  To require reviews of United States investment in foreign countries 
that may threaten national critical capabilities and to improve the use 
of authorities under the Defense Production Act of 1950, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 17, 2020

   Mr. Casey introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  To require reviews of United States investment in foreign countries 
that may threaten national critical capabilities and to improve the use 
of authorities under the Defense Production Act of 1950, 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.

    This Act may be cited as the ``National Critical Capabilities 
Defense Act of 2020''.

SEC. 2. NATIONAL CRITICAL CAPABILITIES REVIEWS.

    The Defense Production Act of 1950 (50 U.S.C. 4501 et seq.) is 
amended by adding at the end the following:

          ``TITLE VIII--NATIONAL CRITICAL CAPABILITIES REVIEWS

``SEC. 801. DEFINITIONS.

    ``In this title:
            ``(1) Appropriate congressional committees.--The term 
        `appropriate congressional committees' means--
                    ``(A) the Committee on Armed Services, the 
                Committee on Banking, Housing, and Urban Affairs, the 
                Committee on Commerce, Science, and Transportation, the 
                Committee on Finance, the Committee on Health, 
                Education, Labor, and Pensions, and the Committee on 
                Homeland Security and Governmental Affairs of the 
                Senate; and
                    ``(B) the Committee on Armed Services, the 
                Committee on Education and Labor, the Committee on 
                Financial Services, the Committee on Homeland Security, 
                the Committee on Transportation and Infrastructure, and 
                the Committee on Ways and Means of the House of 
                Representatives.
            ``(2) Commission.--The term `Commission' means the 
        commission established under section 803.
            ``(3) Committee.--The term `Committee' means the Committee 
        on National Critical Capabilities established under section 
        802.
            ``(4) Control.--The term `control' means the power, direct 
        or indirect, whether exercised or not exercised, to determine, 
        direct, or decide important matters affecting an entity, 
        subject to regulations prescribed by the Committee.
            ``(5) Country of concern.--The term `country of concern' 
        has the meaning given that term in regulations prescribed by 
        the Committee.
            ``(6) Covered transaction.--
                    ``(A) In general.--Except as otherwise provided, 
                the term `covered transaction' means any of the 
                following forms of outbound investment, proposed or 
                pending on or after the date of the enactment of this 
                title:
                            ``(i) Any merger, acquisition, or takeover 
                        of a foreign person by or with a United States 
                        business that could result in a threat to one 
                        or more national critical capabilities, 
                        including such a merger, acquisition, or 
                        takeover carried out through a joint venture.
                            ``(ii) Any other investment, subject to 
                        regulations prescribed under subparagraph (B), 
                        by a United States business in a foreign person 
                        that--
                                    ``(I) owns, operates, manufactures, 
                                supplies, or services national critical 
                                capabilities; or
                                    ``(II) produces, designs, tests, 
                                manufactures, fabricates, or develops 
                                one or more national critical 
                                capabilities.
                            ``(iii) Any change in the rights that a 
                        United States business has with respect to a 
                        foreign person in which the United States 
                        business has an investment, if that change 
                        could result in--
                                    ``(I) a threat to one or more 
                                national critical capabilities; or
                                    ``(II) an investment described in 
                                clause (ii).
                            ``(iv) Any other transaction, transfer, 
                        agreement, or arrangement, the structure of 
                        which is designed or intended to evade or 
                        circumvent the application of this title, 
                        subject to regulations prescribed by the 
                        Committee.
                    ``(B) Other investments.--
                            ``(i) Other investment defined.--For 
                        purposes of subparagraph (A)(ii), the term 
                        `other investment' means an investment, direct 
                        or indirect, by a United States business in a 
                        foreign person described in that subparagraph 
                        that is not an investment described in 
                        subparagraph (A)(i) and that--
                                    ``(I) affords the foreign person--
                                            ``(aa) the ability to shift 
                                        to a foreign country any 
                                        material nonpublic technical 
                                        information related to national 
                                        critical capabilities in the 
                                        possession of the United States 
                                        business;
                                            ``(bb) 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 a 
                                        position on the board of 
                                        directors or equivalent 
                                        governing body; or
                                            ``(cc) any involvement, 
                                        other than through voting of 
                                        shares, in substantive decision 
                                        making of the United States 
                                        business regarding--

                                                    ``(AA) the use, 
                                                development, 
                                                acquisition, 
                                                safekeeping, or release 
                                                of sensitive personal 
                                                data of United States 
                                                citizens maintained or 
                                                collected by the United 
                                                States business;

                                                    ``(BB) a shift to a 
                                                foreign country of 
                                                production, development 
                                                acquisition, or release 
                                                of national critical 
                                                capabilities;

                                                    ``(CC) a shift to a 
                                                foreign county of the 
                                                management, operation, 
                                                manufacture, or supply 
                                                of national critical 
                                                capabilities; or

                                                    ``(DD) the transfer 
                                                of knowledge from the 
                                                United States business 
                                                by any means, including 
                                                the training of an 
                                                employee under an 
                                                agreement, either 
                                                written or verbal, 
                                                under which the 
                                                employee is expected to 
                                                acquire such knowledge 
                                                and later the such 
                                                knowledge with an 
                                                entity in a foreign 
                                                country;

                                    ``(II) results in a shift in 
                                production from the United States to a 
                                foreign country; or
                                    ``(III) results in the 
                                establishment of a new entity in a 
                                foreign country.
                            ``(ii) Material nonpublic technical 
                        information defined.--
                                    ``(I) In general.--For purposes of 
                                clause (i)(I), and subject to 
                                regulations prescribed by the 
                                Committee, the term `material nonpublic 
                                technical information' means 
                                information that--
                                            ``(aa) relates to the 
                                        knowledge, know-how, or 
                                        understanding, not available in 
                                        the public domain, of the 
                                        design, location, or operation 
                                        of national critical 
                                        capabilities; or
                                            ``(bb) is not available in 
                                        the public domain, and is 
                                        necessary to design, fabricate, 
                                        develop, test, produce, or 
                                        manufacture national critical 
                                        capabilities, including 
                                        processes, techniques, or 
                                        methods.
                                    ``(II) Exemption for financial 
                                information.--Notwithstanding subclause 
                                (I), for purposes of this subparagraph, 
                                the term `material nonpublic technical 
                                information' does not include financial 
                                information regarding the performance 
                                of a foreign person.
                            ``(iii) Regulations.--
                                    ``(I) In general.--The Committee 
                                shall prescribe regulations providing 
                                guidance on the types of transactions 
                                that the Committee considers to be 
                                `other investment' for purposes of 
                                subparagraph (A)(ii).
                                    ``(II) United states businesses 
                                that own, operate, manufacture, supply, 
                                or service national critical 
                                capabilities.--The regulations 
                                prescribed by the Committee with 
                                respect to an investment described in 
                                subparagraph (A)(ii)(I) shall--
                                            ``(aa) specify the national 
                                        critical capabilities subject 
                                        to that subparagraph based on 
                                        criteria intended to limit 
                                        application of that 
                                        subparagraph to the subset of 
                                        national critical capabilities 
                                        that is likely to be of 
                                        importance to the national 
                                        security of the United States; 
                                        and
                                            ``(bb) enumerate specific 
                                        types and examples of such 
                                        capabilities.
            ``(7) Foreign person.--The term `foreign person' means--
                    ``(A) an individual who is not a United States 
                citizen or an alien lawfully admitted for permanent 
                residence to the United States; or
                    ``(B) an entity that is not organized under the 
                laws of the United States or of any jurisdiction within 
                the United States, including such an entity--
                            ``(i) owned or controlled by a United 
                        States business; or
                            ``(ii) owned or controlled by the 
                        government of a foreign country.
            ``(8) National critical capabilities.--The term `national 
        critical capabilities', subject to regulations prescribed by 
        the Committee--
                    ``(A) means systems and assets, whether physical or 
                virtual, so vital to the United States that the 
                inability to develop such systems and assets or the 
                incapacity or destruction of such systems or assets 
                would have a debilitating impact on national security; 
                and
                    ``(B) includes the following:
                            ``(i) The production, in sufficient 
                        quantities, of any of the following articles:
                                    ``(I) Medical supplies, medicines, 
                                and personal protective equipment.
                                    ``(II) Articles critical to the 
                                maintenance of the national electrical 
                                grid.
                                    ``(III) Articles critical to 
                                infrastructure construction after a 
                                natural or manmade disaster.
                                    ``(IV) Any other articles the 
                                Committee considers appropriate, 
                                including articles recommended by the 
                                Commission under section 806(c).
                            ``(ii) The supply chains for the production 
                        of such articles.
                            ``(iii) The supply chain for the Department 
                        of Defense.
                            ``(iv) Any other supply chain the Committee 
                        considers appropriate, including supply chains 
                        recommended by the Commission under section 
                        806(c).
                            ``(v) Services critical to the production 
                        of articles described in clause (i) or a supply 
                        chain described in clause (ii), (iii), or (iv).
                            ``(vi) Medical services.
                            ``(vii) Services critical to the 
                        maintenance of the national electrical grid.
                            ``(viii) Services critical to 
                        infrastructure construction after a natural or 
                        manmade disaster.
            ``(9) National security.--The term `national security'--
                    ``(A) has the meaning given that term in section 
                721; and
                    ``(B) includes agricultural security, health 
                security, homeland security, infrastructure security, 
                and natural resources security.
            ``(10) Party.--The term `party', with respect to a 
        transaction, has the meaning given that term in regulations 
        prescribed by the Committee.
            ``(11) United states.--The term `United States' means the 
        several States, the District of Columbia, and any territory or 
        possession of the United States.
            ``(12) United states business.--The term `United States 
        business' means a person engaged in interstate commerce in the 
        United States.

``SEC. 802. COMMITTEE ON NATIONAL CRITICAL CAPABILITIES.

    ``(a) In General.--There is established a committee, to be known as 
the `Committee on National Critical Capabilities', which shall carry 
out this title and such other assignments as the President may 
designate.
    ``(b) Membership.--
            ``(1) In general.--The Committee shall be comprised of the 
        head, or a designee of the head, of each of the following:
                    ``(A) The Office of Science and Technology Policy.
                    ``(B) The Department of the Treasury.
                    ``(C) The Department of Homeland Security.
                    ``(D) The Department of Commerce.
                    ``(E) The Department of Defense.
                    ``(F) The Department of State.
                    ``(G) The Department of Justice.
                    ``(H) The Department of Energy.
                    ``(I) The Department of Health and Human Services.
                    ``(J) The Department of Agriculture.
                    ``(K) The Department of Labor.
                    ``(L) The Federal Emergency Management Agency.
                    ``(M) The National Institute of Standards and 
                Technology.
                    ``(N) The Centers for Disease Control and 
                Prevention.
                    ``(O) The National Institute of Allergy and 
                Infectious Diseases.
                    ``(P) Any other Federal agency the President 
                determines appropriate, generally or on a case-by-case 
                basis.
            ``(2) Ex officio member.--In addition the members of the 
        Committee specified in paragraph (1), the Director of National 
        Intelligence shall be a nonvoting, ex officio member of the 
        Committee.
    ``(c) Co-Chairs.--The Secretary of Homeland Security and the 
Secretary of Commerce shall serve as the co-chairs of the Committee.
    ``(d) Designation of Officials To Carry Out Duties Related to 
Committee.--The head of each agency represented on the Committee shall 
designate an official, at or equivalent to the level of Assistant 
Secretary in the Department of the Treasury, who is appointed by the 
President, by and with the advice and consent of the Senate, to carry 
out such duties related to the Committee as the head of the agency may 
assign.

``SEC. 803. REVIEW OF COVERED TRANSACTIONS.

    ``(a) Mandatory Notification.--A United States business that 
engages in a covered transaction shall submit a written notification of 
the transaction to the Committee.
    ``(b) Review.--
            ``(1) In general.--Not later than 60 days after receiving 
        written notification under subsection (a) of a covered 
        transaction, the Committee shall--
                    ``(A) review the transaction to determine if the 
                transaction is likely to result in a threat to one or 
                more national critical capabilities, considering 
                factors specified in section 805(a); and
                    ``(B) if the Committee determines under 
                subparagraph (A) that the transaction poses a threat 
                described in that subparagraph, recommend to the 
                President that appropriate action be taken to address 
                or mitigate that threat, such as--
                            ``(i) procurement by the Federal Government 
                        of articles and services described in section 
                        801(a)(8)(B) produced or supplied in the United 
                        States;
                            ``(ii) use of authorities under title I or 
                        III to increase the production and supply of 
                        such articles and services in the United 
                        States;
                            ``(iii) the use or establishment of Federal 
                        programs to support the production or supply of 
                        such articles and services in the United 
                        States;
                            ``(iv) the initiation of an investigation 
                        under section 232 of the Trade Expansion Act of 
                        1962 (19 U.S.C. 1862) with respect to such 
                        articles; or
                            ``(v) such other actions as the Committee 
                        considers appropriate.
            ``(2) Unilateral initiation of review.--The Committee may 
        initiate a review under paragraph (1) of a covered transaction 
        for which written notification is not submitted under 
        subsection (a).
            ``(3) Initiation of review by request from congress.--The 
        Committee shall initiate a review under paragraph (1) of a 
        covered transaction if the chairperson and the ranking member 
        of any of the appropriate congressional committees request the 
        Committee to review the transaction.
    ``(c) Authority To Suspend Transactions.--
            ``(1) In general.--Except as provided in paragraph (3), the 
        Committee may suspend or prohibit, in accordance with paragraph 
        (4), a proposed or pending covered transaction described in 
        paragraph (2) for such time as the covered transaction is under 
        review under this section.
            ``(2) Transactions described.--A covered transaction is 
        described in this paragraph if the Committee determines that 
        the transaction poses a threat to one or more national critical 
        capabilities.
            ``(3) Exception.--The Committee may not suspend or prohibit 
        a covered transaction under paragraph (1) if the transaction is 
        related to an article or service the supply chain for which is 
        housed wholly within the United States or countries that are 
        allies of the United States.
            ``(4) Procedures.--The Committee may suspend or prohibit a 
        proposed or pending covered transaction under paragraph (1) 
        if--
                    ``(A) the motion to suspend or prohibit the 
                transaction is be raised by not less than \1/3\ of the 
                members of the Committee; and
                    ``(B) not less than \3/5\ of the members of the 
                Committee vote in favor of the motion.

``SEC. 804. ACTION BY THE PRESIDENT.

    ``(a) In General.--Subject to subsection (d), the President may 
take such action for such time as the President considers appropriate 
to suspend or prohibit any covered transaction that poses a threat to 
one or more national critical capabilities.
    ``(b) Announcement by the President.--The President shall announce 
the decision on whether or not to take action pursuant to subsection 
(a) with respect to a covered transaction not later than 15 days after 
the earlier of the date on which the review of the transaction under 
section 803 is completed.
    ``(c) Enforcement.--The President may direct the Attorney General 
of the United States to seek appropriate relief, including divestment 
relief, in the district courts of the United States, in order to 
implement and enforce this section.
    ``(d) Findings of the President.--The President may exercise the 
authority conferred by subsection (a) with respect to a covered 
transaction only if the President finds that--
            ``(1) there is credible evidence that leads the President 
        to believe that the transaction poses a threat to one or more 
        national critical capabilities; and
            ``(2) provisions of law (other than this section) do not, 
        in the judgment of the President, provide adequate and 
        appropriate authority for the President to protect such 
        capabilities.
    ``(e) Factors To Be Considered.--For purposes of determining 
whether to take action under subsection (a), the President shall 
consider, among other factors each of the factors described in section 
805(a), as appropriate.

``SEC. 805. FACTORS TO BE CONSIDERED.

    ``(a) In General.--The Committee, in reviewing and making a 
determination with respect to a covered transaction under section 803, 
and the President, in determining whether to take action under section 
804 with respect to a covered transaction, shall consider any factors 
relating to national critical capabilities that the Committee or the 
President considers relevant, including--
            ``(1) the long-term strategic economic, national security, 
        and crisis preparedness interests of the United States;
            ``(2) the history of distortive trade practices in each 
        country in which a foreign party to the transaction is 
        domiciled;
            ``(3) control and beneficial ownership (as determined in 
        accordance with section 847 of the National Defense 
        Authorization Act for Fiscal Year 2020 (Public Law 116-92)) of 
        each foreign person that is a party to the transaction; and
            ``(4) impact on the domestic industry and resulting 
        resiliency, including the domestic skills base, taking into 
        consideration any pattern of foreign investment in the domestic 
        industry.
    ``(b) Supply Chain Sensitivities.--The Committee shall determine 
the sensitivities and national security risks for sourcing of articles 
described in section 801(a)(8)(B)(i), in accordance with the following:
            ``(1) The sourcing of least concern shall be articles the 
        supply chains for which are housed in whole within North 
        America.
            ``(2) The sourcing of lesser concern shall be articles the 
        supply chains for which are housed in whole within countries 
        that are allies of the United States.
            ``(3) The sourcing of greater concern shall be articles the 
        supply chains for which are housed in part within countries of 
        concern.
            ``(4) The sourcing of greatest concern shall be articles 
        the supply chains for which are housed or substantially 
        dependent on resources from countries of concern.

``SEC. 806. CONGRESSIONAL COMMISSION.

    ``(a) Establishment of Commission.--There is established a 
congressional commission, which shall--
            ``(1) review the activities of the Committee annually; and
            ``(2) make recommendations with respect to industries to be 
        reviewed.
    ``(b) Membership.--The Commission shall be comprised of the 
following:
            ``(1) Three Members of the Senate from the majority party, 
        appointed by the majority leader of the Senate.
            ``(2) Three Members of the Senate from the minority party, 
        appointed by the minority leader of the Senate.
            ``(3) Three Members of the House of Representatives from 
        the majority party, appointed by the Speaker of the House.
            ``(4) Three Members of the House of Representatives from 
        the minority party, appointed by the minority leader of the 
        House.
            ``(5) Three individuals representing workers and labor 
        organizations, appointed by the chairperson of the policy 
        advisory committee on labor established under section 135(c)(1) 
        of the Trade Act of 1974 (19 U.S.C. 2155(c)(1)).
            ``(6) Three individuals with expertise in domestic 
        manufacturing and supply chains, appointed by the chairperson 
        of the committee referred to in paragraph (5).
    ``(c) Review of Industries.--
            ``(1) In general.--The Commission shall--
                    ``(A) conduct a review of--
                            ``(i) the industries specified in paragraph 
                        (2); and
                            ``(ii) all industries identified by Federal 
                        Emergency Management Agency as carrying out 
                        emergency support functions; and
                    ``(B) not later than 2 years after the date of the 
                enactment of the National Critical Capabilities Defense 
                Act of 2020, submit to the Committee recommendations 
                with respect to additional articles, supply chains, and 
                services to be included in the definition of `national 
                critical capabilities' under section 801(a)(8).
            ``(2) Industries specified.--The industries specified in 
        this subsection are the following:
                    ``(A) Energy.
                    ``(B) Medical.
                    ``(C) Communications, including electronic and 
                communications components.
                    ``(D) Defense.
                    ``(E) Transportation.
                    ``(F) Aerospace.
                    ``(G) Robotics.
                    ``(H) Artificial intelligence.
                    ``(I) Semiconductors.
                    ``(J) Shipbuilding.
                    ``(K) Water, including water purification.
    ``(d) Application of Federal Advisory Committee Act.--The 
provisions of the Federal Advisory Committee Act (5 U.S.C. App.) shall 
not apply with respect to the Commission.

``SEC. 807. INCLUSION OF ADDITIONAL ARTICLES, SUPPLY CHAINS, AND 
              SERVICES IN DEFINITION OF NATIONAL CRITICAL CAPABILITIES.

    ``(a) Proposal by Committee.--Not later than 60 days after 
receiving the recommendations of the Commission under section 
806(c)(1)(B), the Committee shall submit to Congress a list of 
additional articles, supply chains, and services the Committee proposes 
for inclusion in the definition of `national critical capabilities' 
under section 801(a)(8).
    ``(b) Effectiveness of Proposal.--The proposal of the Committee 
under subsection (a) with respect to additional articles, supply 
chains, and services to include in the definition of `national critical 
capabilities' under section 801(a)(8) shall take effect on the date 
that is 45 days after the Committee submits the proposal to Congress 
unless there is enacted into law a joint resolution disapproving the 
proposal before that date.

``SEC. 808. REPORTING REQUIREMENTS.

    ``(a) Annual Report to Congress.--
            ``(1) In general.--Not later than 90 days after the date of 
        the enactment of the National Critical Capabilities Defense Act 
        of 2020, and annually thereafter, the Committee shall submit to 
        the Commission and the appropriate congressional committees a 
        report--
                    ``(A) on the determination under section 805(b) 
                with respect to sensitivities and national security 
                risks for sourcing of articles described in section 
                801(a)(8)(B)(i);
                    ``(B) describing, for the year preceding submission 
                of the report--
                            ``(i) the notifications received under 
                        subsection (a) of section 803 and reviews 
                        conducted pursuant to such notifications;
                            ``(ii) reviews initiated under paragraph 
                        (2) or (3) of subsection (b) of that section;
                            ``(iii) actions recommended by the 
                        Committee under subsection (b)(1)(B) of that 
                        section as a result of such reviews; and
                            ``(iv) reviews during which the Committee 
                        determined no action was required; and
                    ``(C) assessing the overall impact of such reviews 
                on national critical capabilities.
            ``(2) Form of report.--The report required by paragraph (1) 
        shall be submitted in unclassified form but may include a 
        classified annex.
    ``(b) Use of Title III Authorities.--Not later than 180 days after 
the date of the enactment of the National Critical Capabilities Defense 
Act of 2020, the Committee shall submit to Congress a report that 
includes recommendations relating to use the authorities under title 
III to make investments to enhance national critical capabilities and 
reduce dependency on materials and services imported from foreign 
countries.

``SEC. 809. REQUIREMENTS RELATED TO GOVERNMENT PROCUREMENT.

    ``(a) In General.--Not later than 90 days after the date of the 
enactment of the National Critical Capabilities Defense Act of 2020, 
the Federal Acquisition Regulation shall be revised to require each 
person that is a prospective contractor for an executive agency to 
disclose--
            ``(1) the supply chains the person would use to carry out 
        the contract and the extent to which the person would depend on 
        materials and services imported from foreign countries, 
        including the percentage of such materials and services 
        imported from countries of concern; and
            ``(2) a good faith estimate of the effect of the contract 
        on employment by the person in the United States.
    ``(b) Materiality.--The head of an executive agency shall consider 
the failure of a person to make the disclosures required by subsection 
(a) to be material determinants in awarding a contract to that person.
    ``(c) Applicability.--The revisions to the Federal Acquisition 
Regulation required under subsection (a) shall apply with respect to 
contracts for which solicitations are issued on or after the date that 
is 90 days after the date of the enactment of the National Critical 
Capabilities Defense Act of 2020.
    ``(d) Definitions.--In this section:
            ``(1) Executive agency.--The term `executive agency' has 
        the meaning given that term in section 133 of title 41, United 
        States Code.
            ``(2) Federal acquisition regulation.--The term `Federal 
        Acquisition Regulation' means the regulation issued pursuant to 
        section 1303(a)(1) of title 41, United States Code.''.

SEC. 3. USE OF AUTHORITIES UNDER TITLE VII OF THE DEFENSE PRODUCTION 
              ACT OF 1950 FOR PRODUCTION AND DISTRIBUTION OF A SARS-
              COV-2 VACCINE.

    Not later than 90 days after the date of the enactment of this Act, 
the President shall, pursuant to section 708(c) of the Defense 
Production Act of 1950 (50 U.S.C. 4558(c)), conduct consultations with 
representatives of industry to provide for the making of voluntary 
agreements and plans of action to coordinate the production and 
distribution of a vaccine for the SARS-CoV-2 virus.

SEC. 4. EXECUTIVE DIRECTOR OF DEFENSE PRODUCTION ACT COMMITTEE.

    Section 722(c) of the Defense Production Act of 1950 (50 U.S.C. 
4567(c)) is amended to read as follows:
    ``(c) Executive Director.--
            ``(1) In general.--The President shall appoint an Executive 
        Director of the Committee (in this subsection referred to as 
        the `Executive Director'), who shall--
                    ``(A) be responsible to the Chairperson of the 
                Committee; and
                    ``(B) carry out such activities relating to the 
                Committee as the Chairperson may assign.
            ``(2) Compensation.--For pay periods beginning on or after 
        the date on which each Chairperson is appointed, funds for the 
        pay of the Executive Director shall be paid from amounts 
        appropriated for the salaries and expenses account of the 
        agency of the Chairperson of the Committee. The Executive 
        Director shall be compensated at a rate of pay equivalent to 
        that of a Deputy Assistant Secretary (or a comparable position) 
        of the agency of the Chairperson.''.

SEC. 5. REPORTING BY ENTITIES RECEIVING FINANCIAL ASSISTANCE RELATING 
              TO COVID-19 RESPONSE EFFORTS.

    (a) In General.--Not later than one year after the date of the 
enactment of this Act, and 5 years after such date of enactment, any 
entity that receives more than $50,000,000 in direct or indirect 
financial assistance from the Federal Government related to the 
response to the coronavirus disease 2019 (commonly referred to as 
``COVID-19''), including such assistance provided under, or treated as 
provided under, the Internal Revenue Code of 1986, or provided under 
title III of the Defense Production Act of 1950 (50 U.S.C. 4531 et 
seq.), shall submit to the appropriate congressional committees a 
report that discloses--
            (1)(A) the value of property, plant, and equipment 
        investments of the entity in the United States;
            (B) the number of individuals employed by the entity in the 
        United States; and
            (C) the production and capacity production capacity of the 
        entity in the United States; and
            (2)(A) the value of property, plant, and equipment 
        investments of the entity in foreign countries;
            (B) the number of individuals employed by the entity in 
        foreign countries; and
            (C) the production and capacity production capacity of the 
        entity in foreign countries.
    (b) Penalties and Federal Assistance Clawback.--
            (1) In general.--An entity described in subsection (a) 
        shall pay a penalty to the United States in an amount the 
        Secretary of the Treasury determines is equivalent to the 
        amount, if any, by which investments of the entity described in 
        subsection (a)(2)(A) exceed the amount of investments of the 
        entity described in subsection (a)(1)(A).
            (2) Limitation.--The amount of a penalty imposed under 
        paragraph (1) on an entity may not exceed 5 times the amount of 
        direct or indirect financial assistance described in subsection 
        (a) received by the entity from the Federal Government.
    (c) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means
            (1) the Committee on Homeland Security and Governmental 
        Affairs, the Committee on Finance, the Committee on Banking, 
        Housing, and Urban Affairs, and the Committee on 
        Appropriations, and the Committee on Health, Education, Labor, 
        and Pensions of the Senate; and
            (2) the Committee on Homeland Security, the Committee on 
        Ways and Means, the Committee on Financial Services, the 
        Committee on Appropriations, and the Committee on Education and 
        Labor of the House of Representatives.
                                 <all>