Sec. 242. Study and report on foreign capital disclosure requirements of certain Department of Defense organizations
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Not later than 60 days after the date of the enactment of this Act, the Secretary of Defense shall seek to enter into a contract or other agreement with a federally funded research and development center to conduct an independent study on the foreign capital disclosure requirements of organizations of the Department of Defense that routinely engage with commercial entities backed by private equity or venture capital funds. The study under subsection
(a)shall include the following: A comparative analysis of current foreign capital disclosure requirements used by organizations within the Department of Defense that engage with commercial entities backed by private equity or venture capital funds, including the Defense Innovation Unit, National Security Innovation Capital, and other such organizations within the Department. An assessment of any business intelligence, due diligence information, classified information, and other information sources available to such organizations to assist the organizations in formulating and executing foreign capital disclosure requirements. An assessment of the extent to which such foreign capital disclosure requirements are shared with commercial entities. An assessment of best practices for foreign capital disclosure requirements across the Department of Defense, including best practices for flexibly implementing such requirements based upon real or perceived risks. An assessment of the feasibility of harmonizing the best practices as described in paragraph
(4)across the Department of Defense in a responsive manner. An analysis of foreign capital disclosure requirements that are used elsewhere within the Federal Government and in the Governments of international allies and partners of the United States. An assessment of such other factors as may be relevant to inform the implementation of coordinated, effective foreign capital disclosure requirements across the Department of Defense and the Governments of international allies and partners of the United States. Not later than 270 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report on the results of the study conducted under subsection (a). The report required under paragraph
(1)shall be submitted in unclassified form, but may include a classified annex.