Sec. 1706. DECLARATIONS FOR CERTAIN COVERED TRANSACTIONS
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## SEC. 1706 DECLARATIONS FOR CERTAIN COVERED TRANSACTIONS 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: > > ###### “(v) Declarations for certain covered transactions > > > ###### “(I) In general > > 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). > > > ###### “(II) Regulations > > 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. > > > ###### “(III) Committee response to declaration > > > ###### “(aa) In general > > Upon receiving a declaration under this clause with respect to a covered transaction, the Committee may, at the discretion of the Committee— > > > ###### “(AA) > > request that the parties to the transaction file a written notice under clause (i); > > > ###### “(BB) > > 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; > > > ###### “(CC) > > initiate a unilateral review of the transaction under subparagraph (D); or > > > ###### “(DD) > > notify the parties in writing that the Committee has completed all action under this section with respect to the transaction. > > > ###### “(bb) Timing > > The Committee shall take action under item
(aa)not later than 30 days after receiving a declaration under this clause. > > > ###### “(cc) Rule of construction > > 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. > > > ###### “(IV) Mandatory declarations > > > ###### “(aa) Regulations > > The Committee shall prescribe regulations specifying the types of covered transactions for which the Committee requires a declaration under this subclause. > > > ###### “(bb) Certain covered transactions with foreign government interests > > > ###### “(AA) In general > > 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 business described in subsection (a)(4)(B)(iii) by a foreign person in which a foreign government has, directly or indirectly, a substantial interest. > > > ###### “(BB) Substantial interest defined > > 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 excluded under subparagraph
(D)of subsection (a)(4) from the term ‘other investment’ as used in subparagraph (B)(iii) of that subsection or that is less than a 10 percent voting interest shall not be considered a substantial interest. > > > ###### “(CC) Waiver > > The Committee may waive, with respect to a foreign person, the requirement under subitem
(AA)for the submission of a declaration described in subclause
(I)if the Committee determines that the foreign person demonstrates that the investments of the foreign person are not directed by a foreign government and the foreign person has a history of cooperation with the Committee. > > > ###### “(cc) Other declarations required by committee > > The Committee may 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, that involves a United States business described in subsection (a)(4)(B)(iii)(II). > > > ###### “(dd) Exception > > 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— > > > ###### “(AA) > > the fund is managed exclusively by a general partner, a managing member, or an equivalent; > > > ###### “(BB) > > the general partner, managing member, or equivalent is not a foreign person; and > > > ###### “(CC) > > 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)(4)(D)(iv). > > > ###### “(ee) Submission of written notice as an alternative > > 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). > > > ###### “(ff) Timing and refiling of submission > > > ###### “(AA) In general > > In the regulations prescribed under item (aa), the Committee may not require a declaration to be submitted under this subclause with respect to a covered transaction more than 45 days before the completion of the transaction. > > > ###### “(BB) Refiling of declaration > > The Committee may not request or recommend that a declaration submitted under this subclause be withdrawn and refiled, except to permit parties to a covered transaction to correct material errors or omissions in the declaration submitted with respect to that transaction. > > > ###### “(gg) Penalties > > 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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