[Congressional Record Volume 169, Number 119 (Wednesday, July 12, 2023)]
[Senate]
[Pages S2432-S2433]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 268. Mr. RISCH submitted an amendment intended to be proposed by 
him to the bill S. 2226, to authorize appropriations for fiscal year 
2024 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle G of title XII, add the following:

     SEC. 1299L. REVIEW BY COMMITTEE ON FOREIGN INVESTMENT IN THE 
                   UNITED STATES OF CERTAIN FOREIGN GIFTS TO AND 
                   CONTRACTS WITH INSTITUTIONS OF HIGHER 
                   EDUCATION.

       (a) Amendments to Defense Production Act of 1950.--
       (1) Definition of covered transaction.--Subsection (a)(4) 
     of section 721 of the Defense Production Act of 1950 (50 
     U.S.C. 4565) is amended--
       (A) in subparagraph (A)--
       (i) in clause (i), by striking ``; and'' and inserting a 
     semicolon;
       (ii) in clause (ii), by striking the period at the end and 
     inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(iii) any transaction described in subparagraph (B)(vi) 
     proposed or pending after the date of the enactment of the 
     National Defense Authorization Act for Fiscal Year 2024.'';
       (B) in subparagraph (B), by adding at the end the 
     following:
       ``(vi) Any gift to an institution of higher education from 
     a covered foreign person, or the entry into a contract by 
     such an institution with a covered foreign person, if--

       ``(I)(aa) the value of the gift or contract equals or 
     exceeds $1,000,000; or
       ``(bb) the institution receives, directly or indirectly, 
     more than one gift from or enters into more than one 
     contract, directly or indirectly, with the same covered 
     foreign person for the same purpose the aggregate value of 
     which, during the period of 2 consecutive calendar years, 
     equals or exceeds $1,000,000; and
       ``(II) the gift or contract--

       ``(aa) relates to research, development, or production of 
     critical technologies and provides the covered foreign person 
     potential access to any material nonpublic technical 
     information (as defined in subparagraph (D)(ii)) in the 
     possession of the institution; or
       ``(bb) is a restricted or conditional gift or contract (as 
     defined in section 117(h) of the Higher Education Act of 1965 
     (20 U.S.C. 1011f(h))) that establishes control.''; and
       (C) by adding at the end the following:
       ``(G) Foreign gifts to and contracts with institutions of 
     higher education.--For purposes of subparagraph (B)(vi):
       ``(i) Contract.--The term `contract' means any agreement 
     for the acquisition by purchase, lease, or barter of property 
     or services by a foreign person, for the direct benefit or 
     use of either of the parties.
       ``(ii) Covered foreign person.--The term `covered foreign 
     person' means--

       ``(I) an individual who is a national of the People's 
     Republic of China;
       ``(II) an entity organized under the laws of the People's 
     Republic of China or otherwise subject to the jurisdiction of 
     the Government of the People's Republic of China;
       ``(III) a governmental entity of the People's Republic of 
     China; or
       ``(IV) the Chinese Communist Party or any of its 
     affiliates.

       ``(iii) Gift.--The term `gift' means any gift of money or 
     property.
       ``(iv) Institution of higher education.--The term 
     `institution of higher education' means any institution, 
     public or private, or, if a multicampus institution, any 
     single campus of such institution, in any State--

       ``(I) that is legally authorized within such State to 
     provide a program of education beyond secondary school;
       ``(II) that provides a program for which the institution 
     awards a bachelor's degree (or provides not less than a 2-
     year program which is acceptable for full credit toward such 
     a degree) or a more advanced degree;
       ``(III) that is accredited by a nationally recognized 
     accrediting agency or association; and
       ``(IV) to which the Federal Government extends Federal 
     financial assistance (directly or indirectly through another 
     entity or person), or that receives support from the 
     extension of Federal financial assistance to any of the 
     institution's subunits.''.

       (2) Mandatory declarations.--Subsection 
     (b)(1)(C)(v)(IV)(aa) of such section is amended by adding at 
     the end the following: ``Such regulations shall require a 
     declaration under this subclause with respect to a covered 
     transaction described in subsection (a)(4)(B)(vi)(II)(aa).''.
       (3) Factors to be considered.--Subsection (f) of such 
     section is amended--
       (A) in paragraph (10), by striking ``; and'' and inserting 
     a semicolon;
       (B) by redesignating paragraph (11) as paragraph (12); and
       (C) by inserting after paragraph (10) the following:
       ``(11) as appropriate, and particularly with respect to 
     covered transactions described in subsection (a)(4)(B)(vi), 
     the importance of academic freedom at institutions of higher 
     education in the United States; and''.
       (4) Membership of cfius.--Subsection (k) of such section is 
     amended--
       (A) in paragraph (2)--
       (i) by redesignating subparagraphs (H), (I), and (J) as 
     subparagraphs (I), (J), and (K), respectively; and
       (ii) by inserting after subparagraph (G) the following:
       ``(H) In the case of a covered transaction involving an 
     institution of higher education (as defined in subsection 
     (a)(4)(G)), the Secretary of Education.''; and
       (B) by adding at the end the following:
       ``(8) Inclusion of other agencies on committee.--In 
     considering including on the Committee under paragraph (2)(K) 
     the heads of other executive departments, agencies, or 
     offices, the President shall give due consideration to the 
     heads of relevant research and science agencies, departments, 
     and offices, including the Secretary of Health and Human 
     Services, the Director of the National Institutes of Health, 
     and the Director of the National Science Foundation.''.
       (5) Contents of annual report relating to critical 
     technologies.--Subsection (m)(3) of such section is amended--
       (A) in subparagraph (B), by striking ``; and'' and 
     inserting a semicolon;
       (B) in subparagraph (C), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following:
       ``(D) an evaluation of whether there are foreign malign 
     influence or espionage activities directed or directly 
     assisted by foreign governments against institutions of 
     higher education (as defined in subsection (a)(4)(G)) aimed 
     at obtaining research and development methods or secrets 
     related to critical technologies; and
       ``(E) an evaluation of, and recommendation for any changes 
     to, reviews conducted under this section that relate to 
     institutions of higher education, based on an analysis of 
     disclosure reports submitted to the chairperson under section 
     117(a) of the Higher Education Act of 1965 (20 U.S.C. 
     1011f(a)).''.
       (b) Inclusion of Cfius in Reporting on Foreign Gifts Under 
     Higher Education Act of 1965.--Section 117 of the Higher 
     Education Act of 1965 (20 U.S.C. 1011f) is amended--
       (1) in subsection (a), by inserting after ``the Secretary'' 
     the following: ``and the Secretary of the Treasury (in the 
     capacity of the Secretary as the chairperson of the Committee 
     on Foreign Investment in the United States under section 
     721(k)(3) of the Defense Production Act of 1950 (50 U.S.C. 
     4565(k)(3)))''; and
       (2) in subsection (d)--
       (A) in paragraph (1)--
       (i) by striking ``with the Secretary'' and inserting ``with 
     the Secretary and the Secretary of the Treasury''; and
       (ii) by striking ``to the Secretary'' and inserting ``to 
     each such Secretary''; and
       (B) in paragraph (2), by striking ``with the Secretary'' 
     and inserting ``with the Secretary and the Secretary of the 
     Treasury''.
       (c) Effective Date; Applicability.--The amendments made by 
     subsection (a) shall--
       (1) take effect on the date of the enactment of this Act, 
     subject to the requirements of subsections (d) and (e); and
       (2) apply with respect to any covered transaction the 
     review or investigation of which is initiated under section 
     721 of the Defense Production Act of 1950 on or after the 
     date that is 30 days after the publication in the Federal 
     Register of the notice required under subsection (e)(2).
       (d) Regulations.--

[[Page S2433]]

       (1) In general.--The Committee on Foreign Investment in the 
     United States (in this section referred to as the 
     ``Committee''), which shall include the Secretary of 
     Education for purposes of this subsection, shall prescribe 
     regulations as necessary and appropriate to implement the 
     amendments made by subsection (a).
       (2) Elements.--The regulations prescribed under paragraph 
     (1) shall include--
       (A) regulations accounting for the burden on institutions 
     of higher education likely to result from compliance with the 
     amendments made by subsection (a), including structuring 
     penalties and filing fees to reduce such burdens, shortening 
     timelines for reviews and investigations, allowing for 
     simplified and streamlined declaration and notice 
     requirements, and implementing any procedures necessary to 
     protect academic freedom; and
       (B) guidance with respect to--
       (i) which gifts and contracts described in described in 
     clause (vi)(II)(aa) of subsection (a)(4)(B) of section 721 of 
     the Defense Production Act of 1950, as added by subsection 
     (a)(1), would be subject to filing mandatory declarations 
     under subsection (b)(1)(C)(v)(IV) of that section; and
       (ii) the meaning of ``control'', as defined in subsection 
     (a) of that section, as that term applies to covered 
     transactions described in clause (vi) of paragraph (4)(B) of 
     that section, as added by subsection (a)(1).
       (3) Issuance of final rule.--The Committee shall issue a 
     final rule to carry out the amendments made by subsection (a) 
     after assessing the findings of the pilot program required by 
     subsection (e).
       (e) Pilot Program.--
       (1) In general.--Beginning on the date that is 30 days 
     after the publication in the Federal Register of the matter 
     required by paragraph (2) and ending on the date that is 570 
     days thereafter, the Committee shall conduct a pilot program 
     to assess methods for implementing the review of covered 
     transactions described in clause (vi) of section 721(a)(4)(B) 
     of the Defense Production Act of 1950, as added by subsection 
     (a)(1).
       (2) Proposed determination.--Not later than 270 days after 
     the date of the enactment of this Act, the Committee shall, 
     in consultation with the Secretary of Education, publish in 
     the Federal Register--
       (A) a proposed determination of the scope of and procedures 
     for the pilot program required by paragraph (1);
       (B) an assessment of the burden on institutions of higher 
     education likely to result from compliance with the pilot 
     program;
       (C) recommendations for addressing any such burdens, 
     including shortening timelines for reviews and 
     investigations, structuring penalties and filing fees, and 
     simplifying and streamlining declaration and notice 
     requirements to reduce such burdens; and
       (D) any procedures necessary to ensure that the pilot 
     program does not infringe upon academic freedom.
       (3) Report on findings.--Upon conclusion of the pilot 
     program required by paragraph (1), the Committee shall submit 
     to Congress a report on the findings of that pilot program 
     that includes--
       (A) a summary of the reviews conducted by the Committee 
     under the pilot program and the outcome of such reviews;
       (B) an assessment of any additional resources required by 
     the Committee to carry out this section or the amendments 
     made by subsection (a);
       (C) findings regarding the additional burden on 
     institutions of higher education likely to result from 
     compliance with the amendments made by subsection (a) and any 
     additional recommended steps to reduce those burdens; and
       (D) any recommendations for Congress to consider regarding 
     the scope or procedures described in this section or the 
     amendments made by subsection (a).
                                 ______