Sec. 5. Divestment of assets by ByteDance
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/bill/117/hr/3057/ih/section-5A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
ByteDance shall divest itself of— any tangible or intangible assets or property, wherever located, used to enable or support ByteDance's operation of the TikTok application in the United States, as determined by CFIUS; and any data obtained or derived from TikTok application or Musical.ly application users in the United States. Subject to paragraph (2), ByteDance shall complete the divestment of assets required under subsection
(a)before the end of the 90-day period beginning on the date of enactment of this Act. CFIUS may provide one or more 30-day extensions with respect to the deadline described under paragraph (1), but under no circumstances may such extensions extend the deadline beyond the end of the 12-month period beginning on the date of enactment of this Act. Not later than the end of the 45-day period beginning on the date of enactment of this Act, ByteDance shall provide evidence to the President that ByteDance is in the process of divesting itself of all assets described under subsection (a). Until ByteDance provides the certification under paragraph (2)(A), ByteDance and TikTok shall certify to CFIUS on a weekly basis that they are in compliance with this Act and ByteDance shall include a description of efforts to make divestment required under this section and a timeline for projected completion of remaining actions necessary to complete such divestment. After the deadline described under subsection (b)(1)— ByteDance shall certify in writing to CFIUS that ByteDance has destroyed all data that ByteDance is required to divest pursuant to this section, including all copies of such data wherever located; and CFIUS may audit ByteDance, on such terms as CFIUS determines appropriate, in order to ensure that such destruction of data is complete. In carrying out a divestment required under this section, ByteDance may not complete a sale or transfer to any third party— until ByteDance notifies CFIUS in writing of the intended recipient or buyer; and unless 10 business days have passed from such notification and CFIUS has not issued an objection to ByteDance. Among the factors CFIUS may consider in reviewing a proposed sale or transfer described under paragraph
(1)are— whether the buyer or transferee— is a U.S. citizen or is owned by U.S. citizens; has or has had a direct or indirect contractual, financial, familial, employment, or other close and continuous relationship with ByteDance, or its officers, employees, or shareholders; and can demonstrate a willingness and ability to support compliance with this Act; and whether the proposed sale or transfer would threaten to impair the national security of the United States or undermine the purpose of this Act, and whether the sale effectuates, to CFIUS’s satisfaction and in CFIUS’s discretion, a complete divestment of all tangible or intangible assets or property, wherever located, used to enable or support the operation of the TikTok application in the United States. Without limitation on the exercise of authority by any agency under other provisions of law, and until such time as the divestment required under this section is completed and verified to the satisfaction of CFIUS, CFIUS is authorized to implement measures CFIUS determines necessary and appropriate to verify compliance with this section and to ensure that the operations of the TikTok application are carried out in such a manner as to ensure protection of the national security interests of the United States. Such measures may include, on reasonable notice to ByteDance and TikTok Inc., employees of the United States Government, as designated by CFIUS, shall be permitted access, for purposes of verifying compliance with this section, to all premises and facilities of ByteDance and TikTok Inc., and any of their respective subsidiaries, operated in furtherance of the TikTok application located in the United States— to inspect and copy any books, ledgers, accounts, correspondence, memoranda, and other records and documents in the possession or under the control of ByteDance or TikTok Inc., or any of their respective subsidiaries, that concern any matter relating to this section; to inspect or audit any information systems, networks, hardware, software, data, communications, or property in the possession or under the control of ByteDance or TikTok Inc., or any of their respective subsidiaries; and to interview officers, employees, or agents of ByteDance or TikTok Inc., or any of their respective subsidiaries, concerning any matter relating to this section. CFIUS shall conclude all verification procedures described under this subsection within 90 days after the certification of divestment is provided to CFIUS pursuant to subsection (c)(1).