Sec. 2. Preference for United States industry
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Section 308 of the Homeland Security Act of 2002 ( 6 U.S.C. 188 ) is amended by adding at the end the following: In this subsection: The term country of concern means a country that— is a covered nation, as that term is defined in section 4872(d) of title 10, United States Code; or the Secretary determines is engaged in conduct that is detrimental to the national security of the United States. The terms funding agreement , nonprofit organization , and subject invention have the meanings given those terms in section 201 of title 35, United States Code.
The term relevant congressional committees means— the Committee on Homeland Security and Governmental Affairs of the Senate; and the Committee on Homeland Security of the House of Representatives. Subject to the other provisions of this subsection, no firm or nonprofit organization which receives title to any subject invention developed under a funding agreement entered into with the Department and no assignee of any such firm or nonprofit organization shall grant to any person the exclusive right to use or sell any subject invention unless such person agrees that any products embodying the subject invention or produced through the use of the subject invention will be manufactured substantially in the United States.
Subject to subparagraph (B), in individual cases, the requirement for an agreement described in paragraph
(2)may be waived by the Secretary upon a showing by the firm, nonprofit organization, or assignee that reasonable but unsuccessful efforts have been made to grant licenses on similar terms to potential licensees that would be likely to manufacture substantially in the United States or that under the circumstances domestic manufacture is not commercially feasible. Before granting a waiver under subparagraph (A), the Secretary shall— consult with the relevant congressional committees regarding the decision of the Secretary to grant the waiver; and comply with the procedures developed and implemented pursuant to section 70923(b)(2) of the Build America, Buy America Act (subtitle A of title IX of division G of Public Law 117–58 ). The Secretary may not grant a waiver under subparagraph
(A)if, as a result of the waiver, products embodying the applicable subject invention, or produced through the use of the applicable subject invention, will be manufactured substantially in a country of concern. .
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