[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 221 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 221

 To require reports on the acquisitions by certain foreign persons of 
companies that have received American taxpayer research and development 
                    funding, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 14, 2013

 Mrs. Blackburn (for herself and Mr. Huizenga of Michigan) introduced 
 the following bill; which was referred to the Committee on Energy and 
   Commerce, and in addition to the Committee on Science, Space, and 
Technology, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To require reports on the acquisitions by certain foreign persons of 
companies that have received American taxpayer research and development 
                    funding, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stop Mergers, Acquisitions, and 
Risky Takeovers Supplied by American Labor and Entrepreneurship Act of 
2013'' or the ``SMART SALE Act of 2013''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Covered entity.--The term ``covered entity'' means any 
        person, company, institution, or other entity engaged in 
        interstate commerce in the United States that owns, licenses, 
        or otherwise holds an interest in a federally-funded 
        technology, or to which Federal energy research and development 
        funding has been obligated by a Federal agency.
            (2) Covered transaction.--
                    (A) In general.--The term ``covered transaction'' 
                means any proposed or pending merger, acquisition, 
                takeover, or other transfer that could result in 
                control of a covered entity by--
                            (i) a government of a foreign country 
                        described in subparagraph (B); or
                            (ii)(I) a natural person who is a citizen 
                        of a foreign country described in subparagraph 
                        (B) or who owes permanent allegiance to such 
                        foreign country; or
                            (II) a corporation or other legal entity 
                        which is organized under the laws of such 
                        foreign country or any political subdivision 
                        thereof if natural persons described in 
                        subclause (I) own, directly or indirectly, more 
                        than 50 percent of the outstanding capital 
                        stock or other beneficial interest in such 
                        legal entity.
                    (B) Foreign country described.--
                            (i) In general.--Except as provided in 
                        clause (ii), a foreign country referred to in 
                        subparagraph (A) means any of the following:
                                    (I) The People's Republic of China.
                                    (II) The Democratic People's 
                                Republic of Korea.
                                    (III) A country that is a state 
                                sponsor of terrorism (as defined in 
                                clause (iii)).
                                    (IV) A country that provides 
                                sanctuary to a foreign terrorist 
                                organization (as defined in clause 
                                (iv)).
                                    (V) Any other country with respect 
                                to which the President determines the 
                                provisions of this paragraph should 
                                apply.
                            (ii) Waiver.--The President may waive the 
                        applicability of this paragraph with respect to 
                        a foreign country described in clause (i) on a 
                        case-by-case basis if not later than 60 days 
                        before doing so the President--
                                    (I) determines that it is in the 
                                national interest of the United States 
                                to do so; and
                                    (II) submits to Congress a report 
                                providing a justification for the 
                                waiver.
                            (iii) State sponsor of terrorism defined.--
                        In clause (i)(III), the term ``state sponsor of 
                        terrorism'' means any country the government of 
                        which the Secretary of State has determined has 
                        repeatedly provided support for international 
                        terrorism pursuant to--
                                    (I) section 6(j) of the Export 
                                Administration Act of 1979 (50 U.S.C. 
                                App. 2405) (as continued in effect 
                                under the International Emergency 
                                Economic Powers Act);
                                    (II) section 620A of the Foreign 
                                Assistance Act of 1961 (22 U.S.C. 
                                2371);
                                    (III) section 40 of the Arms Export 
                                Control Act (22 U.S.C. 2780); or
                                    (IV) any other provision of law.
                            (iv) Foreign terrorist organization 
                        defined.--In clause (i)(IV), the term ``foreign 
                        terrorist organization'' means any organization 
                        so designated by the Secretary of State under 
                        section 219 of the Immigration and Nationality 
                        Act (8 U.S.C. 1189).
            (3) Federal energy research and development funding.--The 
        term ``Federal energy research and development funding'' means 
        Federal funding provided for the purpose of researching or 
        developing new energy technologies, products, processes, or 
        systems, or for the application of existing energy 
        technologies, products, processes, or systems in a novel 
        manner. Such funding includes funding for a loan or loan 
        guarantee made by a Federal agency.
            (4) Federally-funded technology.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``federally-funded technology'' means any 
                technology, product, process, or system developed as a 
                result of Federal energy research and development 
                funding.
                    (B) Exception.--Such term does not apply to any 
                technology, product, process, and system that was not--
                            (i) specified in the documents and 
                        agreements associated with the provision of the 
                        Federal energy research and development 
                        funding; or
                            (ii) a foreseeable result or byproduct of 
                        the Federal energy research and development 
                        funding at the time the funding was provided.

SEC. 3. REQUIREMENTS.

    (a) Notification.--
            (1) In general.--A covered entity shall notify the 
        Secretary of Energy in writing not later than 7 days of 
        entering into negotiations for any covered transaction.
            (2) Contents.--A notification submitted pursuant to 
        paragraph (1) shall include--
                    (A) an identification of the covered entity;
                    (B) an identification of the purchasing, acquiring, 
                or merging entity;
                    (C) the amounts of all Federal energy research and 
                development funding received by the covered entity, 
                including a description of the form and amount of each 
                transaction providing such funding;
                    (D) an explanation of how the covered entity or its 
                purchaser will repay any outstanding loans or loan 
                guarantees provided by a Federal agency, including 
                interest accrued;
                    (E) an appraisal of the value of any federally-
                funded technology owned, licensed, or otherwise held by 
                the covered entity, including estimates of sales value 
                and licensing fees; and
                    (F) a description of the technical rights held by 
                the Federal Government in all federally-funded 
                technology owned, licensed, or otherwise held by the 
                covered entity.
            (3) Penalties.--Any person who knowingly and intentionally 
        fails to make a notification required by this subsection shall 
        be imprisoned for not more than 5 years and fined according to 
        title 18, United States Code.
    (b) Recoupment of Federal Funds.--A Federal agency providing 
Federal energy research and development funding shall require, as a 
condition of receipt of such funding, that all amounts provided shall 
be repaid to the Federal Government if a covered transaction results in 
control of the recipient by a foreign country described in section 
2(2)(B).
    (c) Regulations.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of Energy shall promulgate 
regulations to carry out this section.

SEC. 4. REPORTS TO CONGRESS.

    (a) Report on Notification.--Not later than 30 days after receipt 
of a notification required by section 3(a), the Secretary of Energy 
shall submit to Congress a report on the notification. Such a report 
shall contain, at a minimum, the following:
            (1) All of the information provided by the covered entity 
        under section 3(a).
            (2) An assessment of any cybersecurity threats to the 
        national interests of the United States with respect to the 
        covered transaction.
            (3) Disclosure of any additional Federal energy research 
        and development funding payments scheduled to be made by a 
        Federal entity to the covered entity.
            (4) An assessment of what effect the covered transaction 
        will have on the interests of the United States, including the 
        extent to which the covered transaction will cause, or will 
        have a reasonable likelihood of causing, any negative effects 
        to the national and economic security interests of the United 
        States.
            (5) An estimate of any amounts of Federal, State, and 
        foreign government funding that any party to the covered 
        transaction, other than the covered entity, has received.
    (b) Initial Report.--Not later than 90 days after the date of 
enactment of this Act, the Secretary of Energy shall submit to Congress 
a report that--
            (1) identifies each covered entity that is engaged in a 
        covered transaction as of the date of enactment of this Act; 
        and
            (2) specifies the total amount of Federal energy research 
        and development funding the covered entity has received and is 
        scheduled to receive.
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