,i #aaith ,,congress #ast ,session ,h4 ,r4 #dgge ,,in ,,the ,,house ,,of ,,representatives ,july #be1 #bjbe,mr4 ,tran 7for himself and ,mr4 ,bacon7 introduced the following bill2 which was referred to the ,committee on ,small ,business1 and in addition to the ,committee on ,science1 ,space1 and ,technology1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to ensure small business concerns indirectly owned or controlled by certain foreign entities are ineligible to receive ,,sbir or ,,sttr awards1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,,sbir_/,,sttr ,foreign ,interference ,safeguard ,act4 #b4 ,extension of due diligence program to assess security risks ,section #i7vv77#c77;,c7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7vv77#c77;,c77 is amended by striking ,september #cj1 #bjbe and inserting ,september #cj1 #bjcj4 #c4 ,codifying safeguards for small business concerns majority-owned by venture capital operating companies1 hedge funds1 or private equity firms 7a7 ,in general ,section #i7;dd7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7;dd77 is amended-- 7#a7 in paragraph 7#f77;,b71 by striking ,if a ,federal and inserting ,except as provided in paragraph 7#h71 if a ,federal2 and 7#b7 by adding at the end the following new paragraph3 7#h7 ,participation limits 7,a7 ,in general ,a small business concern that is majority-owned by multiple venture capital operating companies1 hedge funds1 or private equity firms is ineligible to receive an award under any ,,sbir program if the ,administrator determines that such small business concern is1 or is owned and controlled in majority part by1 a covered foreign entity4 7,b7 ,ownership determination ,in determining whether a small business concern is ineligible to receive an award under any ,,sbir program under subparagraph 7,a71 the ,administrator shall consider whether the small business concern is a direct or indirect subsidiary of a foreign-owned firm4 7,c7 ,size standards ,the ,administrator shall establish size standards for small business concerns seeking to participate in an ,,sbir program solely under the authority under this section4 7,d7 ,definitions ,in this paragraph3 7i7 ,covered foreign entity the term covered foreign entity-- 7,i7 means-- 7aa7 a foreign entity of concern2 7bb7 a government or political party of a foreign country of concern2 7cc7 a natural person who is not a lawful permanent resident of the ,united ,states1 citizen of the ,united ,states1 or any other protected individual 7as such term is defined in section #bgd;,b7a77#c7 of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #acbd;b7a77#c7772 or 7dd7 a partnership1 association1 corporation1 organization1 or other combination of persons organized under the laws of or having its principal place of business in a foreign country of concern2 and 7,,ii7 includes-- 7aa7 any entity owned by1 controlled by1 or subject to the jurisdiction or direction of a an entity listed in subclause 7,i72 7bb7 any person1 wherever located1 who acts as an agent1 representative1 or employee of an entity listed in subclause 7,i72 7cc7 any person who acts in any other capacity at the order1 request1 or under the direction or control1 of an entity listed in subclause 7,i71 or of a person whose activities are directly or indirectly supervised1 directed1 controlled1 financed1 or subsidized in whole or in majority part by an entity listed in subclause 7,i72 7dd7 any person who directly or indirectly through any contract1 arrangement1 understanding1 relationship1 or otherwise1 owns #be percent or more of the equity interests of an entity listed in subclause 7,i72 7ee7 any person with significant responsibility to control1 manage1 or direct an entity listed in subclause 7,i72 7ff7 any person1 wherever located1 who is a citizen or resident of a country controlled by an entity listed in subclause 7,i72 or 7gg7 any corporation1 partnership1 association1 or other organization organized under the laws of a country controlled by an entity listed in subclause 7,i74 7ii7 ,foreign entity of concern ,the term foreign entity of concern means a foreign entity that is-- 7,i7 designated as a foreign terrorist organization by the ,secretary of ,state under section #bai7;a7 of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aahi7;a772 7,,ii7 included on the list of specially designated nationals and blocked persons maintained by the ,office of ,foreign ,assets ,control of the ,department of the ,treasury 7commonly known as the ,,sdn list72 7,,iii7 owned by1 controlled by1 or subject to the jurisdiction or direction of a government of a foreign country that is a covered nation 7as such term is defined in section #dhgb of title #aj1 ,united ,states ,code72 7,,iv7 alleged by the ,attorney ,general to have been involved in activities for which a conviction was obtained under-- 7aa7 chapter #cg of title #ah1 ,united ,states ,code 7commonly known as the ,espionage ,act72 7bb7 section #iea or #ajcj of such title2 7cc7 chapter #ij of such title 7commonly known as the ,economic ,espionage ,act of #aiif72 7dd7 the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgea et seq472 7ee7 section #bbd1 #bbe1 #bbf1 #bbg1 or #bcf of the ,atomic ,energy ,act of #aied 7#db ,u4,s4,c4 #bbgd1 #bbge1 #bbgf1 #bbgg1 and #bbhd72 7ff7 the ,export ,control ,reform ,act of #bjah 7#ej ,u4,s4,c4 #dhja et seq472 or 7gg7 the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq472 or 7,v7 determined by the ,secretary of ,commerce1 in consultation with the ,secretary of ,defense and the ,director of ,national ,intelligence1 to be engaged in unauthorized conduct that is detrimental to the national security or foreign policy of the ,united ,states4 4 7b7 ,applicability ,the amendments made by subsection 7a7 shall apply only with respect to awards made under an ,small ,business ,innovation ,research ,program 7as defined in section #i7;e7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fch7;e777 after the date of the enactment of this ,act4