[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).
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