Sec. 1706. Declarations for certain covered transactions
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Section 721(b)(1)(C) of the Defense Production Act of 1950 ( 50 U.S.C. 4565(b)(1)(C) ), as amended by section 1705, is further amended by adding at the end the following: 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). 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.
Upon receiving a declaration under this clause with respect to a covered transaction, the Committee may, at the discretion of the Committee— request that the parties to the transaction file a written notice under clause (i); 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; initiate a unilateral review of the transaction under subparagraph (D); or notify the parties in writing that the Committee has completed all action under this section with respect to the transaction. The Committee shall take action under item
(aa)not later than 30 days after receiving a declaration under this clause. 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. The Committee shall prescribe regulations specifying the types of covered transactions for which the Committee requires a declaration under this subclause. Except as provided in subitem (BB), the parties to a covered transaction shall submit a declaration described in subclause
(I)with respect to the transaction if the transaction involves an investment that results in the acquisition, directly or indirectly, of a substantial interest in a United States critical infrastructure company or United States critical technology company by a foreign person in which a foreign government has, directly or indirectly, a substantial interest. The submission of a declaration described in subclause
(I)shall not be required with respect to a transaction described in subitem
(AA)if each foreign person that is a party to the transaction, and each foreign person with ownership or control over a party to the transaction, is from a country or part of a country identified by the Committee under subsection (a)(5)(C)(iii). In this item, the term substantial interest has the meaning given that term in regulations which the Committee shall prescribe. In developing those regulations, the Committee shall consider the means by which a foreign government could influence the actions of a foreign person, including through board membership, ownership interest, or shareholder rights. An interest that is a passive investment (as defined in subsection (a)(5)(D)) or that is less than a 10 percent voting interest shall not be considered a substantial interest. 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— 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; the difficulty of remedying the harm to national security that may result from completion of the transaction; the difficulty of obtaining information on the type of covered transaction through other means; and the difficulty of obtaining information on the ultimate ownership of the foreign person that is a party to the transaction. The submission of a declaration described in subclause
(I)shall not be required pursuant to this subclause with respect to an investment by an investment fund if— the fund is managed exclusively by a general partner, a managing member, or an equivalent; the general partner, managing member, or equivalent is not a foreign person; and the investment fund satisfies, with respect to any foreign person with membership as a limited partner on an advisory board or a committee of the fund, the criteria specified in items
(cc)and
(dd)of subsection (a)(5)(D)(iv). 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). A declaration required to be submitted with respect to a covered transaction by this subclause shall be submitted not later than 45 days before the completion of the transaction. If, pursuant to item (ee), 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. The Committee may impose a penalty pursuant to subsection (h)(3) with respect to a party that fails to comply with this subclause. .
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Sec. 1706
Declarations for certain covered transactions
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