Sec. 861. Review regarding applicability of foreign ownership, control, or influence requirements of National Security Industrial Program to national technology and industrial base companies
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The Secretary of Defense, with the concurrence of the Secretary of State, shall review whether companies whose ownership or majority control is based in countries that are part of the national technology and industrial base should be exempted from the foreign ownership, control, or influence
(FOCI)requirements of the National Security Industrial Program. The Secretary of Defense may establish a program to carry out the exemption process described under subsection (a). Under the program, the Secretary, with the concurrence of the Secretary of State, shall maintain a list of companies owned or controlled by countries that are part of the national technology and industrial base that are eligible for exemption from the requirements described under such subsection. The Secretary of Defense, with the concurrence of the Secretary of State, may designate a company under paragraph
(1)as exempt from the requirements described under subsection
(a)upon a determination that such exemption— is beneficial to improving collaboration within countries participating in the national technology and industrial base; is in the United States national security interest; and will not result in a greater risk of the disclosure of classified or sensitive information consistent with the National Security Industrial Program. The authority under paragraph
(1)to exempt a listed company from the requirements described under subsection
(a)may be exercised beginning on the date that is the later of— the date that is 60 days after the Secretary of Defense, in consultation with the Secretary of State, submits to the congressional defense committees a report summarizing the review conducted under such subsection; and the date that is 30 days after the Secretary of Defense, in consultation with the Secretary of State, submits to the congressional defense committees a written notification of a determination under paragraph
(2)to exempt the company from such requirements, including a discussion of the issues related to the foreign ownership or control of the company that were considered as part of the determination. In this section, the term national technology and industrial base has the meaning given the term in section 2500 of title 10, United States Code.