Requirements relating to long-term concessions agreements with certain retailers

(a)

In general

Chapter 363 of title 10, United States Code, is amended by adding at the end the following new section:

4664.

Requirements relating to long-term concessions agreements with certain retailers

(a)

Prohibition on contracting with certain retailers

(1)

In general

The Secretary of Defense may not renew, extend, or enter into a long-term concessions agreement with a retailer that is controlled by a covered nation to permit such retailer to operate or conduct business through a physical location on a covered military installation.(2)

Waiver

The Secretary may waive the requirements of paragraph (1) if the Secretary determines that—(A)the goods or services to be provided by the retailer are vital for the welfare and morale of members of the Armed Forces and no reasonable alternatives exist; and(B)the Secretary has implemented adequate measures to mitigate any potential national security risks of the retailer.(3)

Report

Not later than 30 days after each use of the waiver authority under paragraph (2), the Secretary shall submit to the Committees on Armed Services of the House of Representatives and Senate a report including a justification for the use of such authority and a description of any risk mitigation strategies described in paragraph (2)(B).(4)

Termination

With respect to a retailer that has misrepresented the ownership and control of such retailer for the award of a long-term concessions agreement, the Secretary of Defense may terminate such agreement.(5)

Applicability

Paragraph (1) shall apply with respect to a long-term concessions agreement entered into on or after the date of the enactment of this section.(b)

Covered retailers

(1)

In general

The Secretary of Defense may not permit a covered retailer controlled by a covered nation to operate or conduct business through a physical location on a covered military installation, unless such covered retailer has received an approval determination under paragraph (4).(2)

Notice

Not later than 30 days after the date of the enactment of this section, a covered retailer—(A)shall submit to the Committee on Foreign Investment in the United States (in this section referred to as the Committee) a notice that includes any direct or indirect relationships between the covered retailer (including any subsidiaries or parent companies of such covered retailer) and any covered nation; and(B)may not operate or conduct business through a physical location on a covered military installation unless the Committee submits a determination approving such notice in accordance with paragraph (3).(3)

Investigation

The Committee shall conduct an investigation of the effects of a notice submitted under paragraph (2) on the national security of the United States, including an assessment of any direct or indirect relationships between the covered retailer (including any subsidiaries or parent companies of such covered retailer) and any covered nation.(4)

Determination

Not later than 180 days after completing an investigation under paragraph (3), the Committee shall submit to the Secretary of Defense a determination approving or disapproving the notice submitted under paragraph (2).(5)

Compliance

(A)

In general

A covered retailer that receives an approval under paragraph (4) shall submit annually to the Committee disclosures regarding any change in the ownership structure that may affect whether or not the covered retailer is controlled by a covered nation.(B)

Failure to comply

The Secretary of Defense shall immediately terminate a long-term concession agreement with a covered retailer if the Secretary determines such covered retailer has failed to comply with the requirements of this subsection. (c)

Assessment of covered retailers

(1)

In general

Not later than 180 days after the date of the enactment of this section, the Secretary of Defense shall review each long-term concessions agreement with a covered retailer that permits the covered retailer to operate or conduct business through a physical location on a covered military installation to assess any direct or indirect relationships between the retailer (including any subsidiaries or parent companies of such covered retailer) and any covered nation.(2)

Termination

Not later than 30 days after making a determination that a covered retailer is controlled by a covered nation based on an assessment described in subsection (a) or a determination made under subsection (b), the Secretary of Defense shall terminate any long-term concessions agreement with the covered retailer.(d)

Definitions

In this section:(1)The term controlled by a covered nation means, with respect to a retailer—(A)that the retailer is organized under the laws of a covered nation or any jurisdiction within a covered nation;(B)that a covered nation owns 20 percent or more of the shares of the retailer; or(C)that the retailer is subject to the direct or control of a covered nation.(2)The term covered military installation means a military installation (as defined in section 2801 of this title) located in the United States.(3)The term covered nation has the meaning given in section 4872 of this title.(4)The term covered retailer means a retailer that is performing a long-term concessions agreement on or before the date of the enactment of this Act.(5)The term long-term concessions agreement means a contract, subcontract (at any tier), or other agreement, including a lease agreement or licensing agreement, to operate a business through a physical location on a covered military installation entered into by—(A)the Secretary of Defense or a Secretary of a military department and a person, including a nonappropriated fund instrumentality; or(B)a person and a nonappropriated fund instrumentality.(6)The term retailer means—(A)a nonappropriated fund instrumentality that operates or seeks to operate a business through a physical location on a covered military installation; and(B)any other person that operates or seeks to operate a business on a covered military installation under a contract, subcontract (at any tier), or other agreement, including a lease agreement or licensing agreement, with—(i)a nonappropriated fund instrumentality;(ii)the Secretary of Defense; or(iii)a Secretary of a military department.

(b)

Assessment of covered retailers

(1)

In general

Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall review each long-term concessions agreement with a covered retailer that permits the covered retailer to operate or conduct business through a physical location on a covered military installation to assess any direct or indirect relationships between the retailer (including any subsidiaries or parent companies of such covered retailer) and any covered nation.(2)

Termination

Not later than one year after making a determination that a covered retailer is controlled by a covered nation based on an assessment described in subsection (a), the Secretary of Defense shall terminate any long-term concessions agreement with the covered retailer.(3)

Definitions

In this section, the terms covered nation, covered retailer, and long-term concessions agreement have the meanings given in section 4664 of title 10, United States Code, as added by this section.