[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4588 Introduced in Senate (IS)]

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117th CONGRESS
  2d Session
                                S. 4588

 To establish a public-private partnership technology investment pilot 
                                program.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 21, 2022

  Ms. Rosen (for herself and Mrs. Blackburn) introduced the following 
   bill; which was read twice and referred to the Committee on Armed 
                                Services

_______________________________________________________________________

                                 A BILL


 
 To establish a public-private partnership technology investment pilot 
                                program.

    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 ``Investing in American Defense 
Technologies Act of 2022''.

SEC. 2. PUBLIC-PRIVATE PARTNERSHIP TECHNOLOGY INVESTMENT PILOT PROGRAM.

    (a) Establishment.--
            (1) In general.--Subject to the availability of 
        appropriations for this purpose, the Secretary of Defense shall 
        carry out a pilot program, for no less than five years, to 
        accelerate the development of advanced technology for national 
        security by creating incentives for trusted private capital to 
        invest in domestic small businesses or nontraditional 
        businesses that are developing technology that the Secretary 
        considers necessary to support the modernization of the 
        Department of Defense and national security priorities.
            (2) Purposes.--The purposes of the program required by 
        paragraph (1) are as follows:
                    (A) To promote the global superiority of the United 
                States in advanced technologies of importance to 
                national security, which are not adequately supported 
                by private sector investment.
                    (B) To accelerate the transition and deployment of 
                advanced technologies into the Armed Forces.
                    (C) To support Department investment through a loan 
                guarantee to accelerate acquisition, procurement, and 
                the transition of advance technology described in 
                paragraph (1), as appropriate.
    (b) Public-Private Partnership.--
            (1) In general.--In carrying out subsection (a), the 
        Secretary shall enter into a public-private partnership with 
        one or more persons using criteria that the Secretary shall 
        establish for purposes of this subsection.
            (2) Criteria.--The criteria established under paragraph (1) 
        for entering into a public-private partnership with a person 
        shall include the following:
                    (A) The person shall be independent.
                    (B) The person shall be free from foreign 
                oversight, control, influence, or beneficial ownership.
                    (C) The person shall have commercial private 
                capital fund experience with technology development in 
                the defense and commercial sectors.
                    (D) The person shall be eligible for access to 
                classified information (as defined in the procedures 
                established pursuant to section 801(a) of the National 
                Security Act of 1947 (50 U.S.C. 3161(a))).
            (3) Operating agreement.--The Secretary and a person with 
        whom the Secretary enters a partnership under paragraph (1) 
        shall enter into an operating agreement that sets forth the 
        roles, responsibilities, authorities, reporting requirements, 
        and governance framework for the partnership and its 
        operations.
    (c) Investment and Raising of Capital.--
            (1) Investment.--
                    (A) In general.--Pursuant to a public-private 
                partnership entered into under subsection (b), a person 
                with whom the Secretary has entered the partnership 
                shall invest equity in domestic small businesses or 
                nontraditional businesses consistent with subsection 
                (a).
                    (B) Selection criteria.--Investments under 
                subparagraph (A) shall be selected based on their 
                technical merit, economic considerations, and ability 
                to support modernization goals of the Department.
            (2) Use of trusted capital sources.--Pursuant to a public-
        private partnership entered into under subsection (b), a person 
        described in paragraph (1)(A) shall, in order to support 
        investment of equity under paragraph (1), raise private capital 
        only from trusted capital sources.
            (3) Sole authority.--A person described in paragraph (1)(A) 
        shall have sole authority to raise funds for, operate, manage, 
        and invest capital raised under such subparagraph.
            (4) Loan guarantee.--
                    (A) In general.--The Secretary shall provide a loan 
                guarantee for up to 80 percent of the principal capital 
                amount of the funds raised under paragraph (2), 
                pursuant to the public-private partnership entered into 
                under subsection (b), with investment of equity that 
                qualifies under paragraph (1) and consistent with the 
                purposes set forth under subsection (a)(2).
                    (B) Subject to operating agreement.--The loan 
                guarantee under subparagraph (A) shall be subject to 
                the operating agreement entered into under subsection 
                (b)(3).
                    (C) Limits.--Obligations incurred by the Secretary 
                under this paragraph shall be subject to the 
                availability of appropriations.
    (d) Briefings.--
            (1) Implementation.--Not later than one year after the date 
        of the enactment of this section, the Secretary shall provide 
        to the congressional defense committees a briefing on the 
        implementation of this section.
            (2) Assessment of outcomes and feasibility.--Not later than 
        five years after the date of the enactment of this section, the 
        Secretary shall provide the congressional defense committees a 
        briefing on the outcomes of the pilot program and the 
        feasibility and advisability of making it permanent.
    (e) Definitions.--In this section:
            (1) The term ``congressional defense committees'' has the 
        meaning given the term in section 101(a)(16) of title 10, 
        United States Code.
            (2) The term ``domestic business'' has the meaning given 
        the term ``U.S. business'' in section 800.252 of title 31, Code 
        of Federal Regulations, or successor regulation.
            (3) The term ``domestic small businesses or nontraditional 
        businesses'' means--
                    (A) a small businesses that is a domestic business; 
                or
                    (B) a nontraditional business that is a domestic 
                business.
            (4) The term ``free from foreign oversight, control, 
        influence, or beneficial ownership'', with respect to a person, 
        means a person who has not raised and managed capital from a 
        person or entity that is not trusted and is otherwise free from 
        foreign oversight, control, influence, or beneficial ownership.
            (5) The term ``independent'', with respect to a person, 
        means a person who lacks a conflict of interest accomplished by 
        not having entity or manager affiliation or ownership with an 
        existing fund.
            (6) The term ``nontraditional business'' has the meaning 
        given the term ``nontraditional defense contractors'' in 
        section 3014 of title 10, United States Code.
            (7) The term ``small business'' has the meaning given the 
        term ``small business concern'' in section 3 of the Small 
        Business Act (15 U.S.C. 632).
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