DEFENSE PRODUCTION ACT AMENDMENTS.

SEC. 837. DEFENSE PRODUCTION ACT AMENDMENTS. (a) Investigations of Certain Mergers, Acquisitions, and Takeovers.—Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 2170) is amended— (1) by redesignating subsections (b) through (h) as subsections (c) through (i), respectively; and (2) by inserting after subsection (a) the following new subsection: 106 STAT. 2464 “(b) Mandatory Investigations.—The President or the President’s designee shall make an investigation, as described in subsection (a), in any instance in which an entity controlled by or acting on behalf of a foreign government seeks to engage in any merger, acquisition, or takeover which could result in control of a person engaged in interstate commerce in the United States that could affect the national security of the United States. Such investigation shall— “(1) commence not later than 30 days after receipt by the President or the President’s designee of written notification of the proposed or pending merger, acquisition, or takeover, as prescribed by regulations promulgated pursuant to this section; and “(2) shall be completed not later than 45 days after its commencement.”. (b) Considerations of the President.—Section 721(f) of the Defense Production Act of 1950 (50 U.S.C. App. 2170(f)) (as redesignated by subsection (a)) is amended— (1) in paragraph (2), by striking “and” at the end; (2) in paragraph (3), by striking the period and inserting a comma; and (3) by adding at the end the following new paragraphs: “(4) the potential effects of the proposed or pending transaction on sales of military goods, equipment, or technology to any country— “(A) identified by the Secretary of State— “(i) under section 6(j) of the Export Administration Act of 1979, as a country that supports terrorism; “(ii) under section 6(1) of the Export Administration Act of 1979, as a country of concern regarding missile proliferation; or “(iii) under section 6(m) of the Export Administration Act of 1979, as a country of concern regarding the proliferation of chemical and biological weapons; or “(B) listed under section 309(c) of the Nuclear Non-Proliferation Act of 1978 on the ‘Nuclear Non-Proliferation-Special Country List’ (15 C.F.R. Part 778, Supplement No. 4) or any successor list; and “(5) the potential effects of the proposed or pending transaction on United States international technological leadership in areas affecting United States national security.”. (c) Report.—Section 721(g) of the Defense Production Act of 1950 (50 U.S.C. App. 2170(f)) (as redesignated by subsection (a)) is amended to read as follows: “(g) Report to the Congress.—The President shall immediately transmit to the Secretary of the Senate and the Clerk of the House of Representatives a written report of the President’s determination of whether or not to take action under subsection (d), including a detailed explanation of the findings made under subsection (e) and the factors considered under subsection (f). Such report shall be consistent with the requirements of subsection (c) of this Act.”. (d) Sense of the Congress Regarding the Committee on Foreign Investment in the United States.—It is the sense of the Congress that the President should include in the membership 106 STAT. 2465of the Committee on Foreign Investment in the United States (established by Executive Order No. 11858)— (1) the Director of the Office of Science and Technology Policy; and (2) the Assistant to the President for National Security. (e) Technology Risk Assessments.—Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 2170) is further amended by adding at the end the following new subsection: “(j) Technology Risk Assessments.—In any case in which an assessment of the risk of diversion of defense critical technology is performed by a designee of the President, a copy of such assessment shall be provided to any other designee of the President responsible for reviewing or investigating a merger, acquisition, or takeover under this section.”.