,i  #aaith ,,congress  #b;d ,session    
,h4 ,r4 #hjcj  ,,in ,,the ,,house ,,of  
,,representatives  ,march #bj1 #bjbf,ms4
 ,waters introduced the following bill2 
which was referred to the ,committee on 
,financial ,services  ,a ,,bill  ,to    
amend the ,defense ,production ,act of  
#aiej to limit eligibility for          
assistance1 increase monetary penalties1
 establish fraud risk management        
processes1 and for other purposes4  #a4 
,short title ,this ,act may be cited as 
the ,,dpa ,transparency ,act of #bjbf4  
#b4 ,limitation on eligibility for      
assistance ,title ,,iii of the ,defense 
,production ,act of #aiej 7#ej ,u4,s4,c4
 #deca et seq47 is amended by adding at 
the end the following3  #cjf4           
,limitation on eligibility for          
assistance  7a7 ,in general ,a covered  
entity is not eligible for assistance   
authorized under this title4  7b7       
,definitions ,in this section3  7#a7    
,covered entity ,the term covered entity
 means an entity in which a covered     

individual directly or indirectly holds 
a significant interest4 ,for the purpose
 of determining whether an entity is a  
covered entity1 if securities of the    
entity are owned1 controlled1 or held by
 #b or more individuals who are related 
as described in paragraph 7#b71 such    
securities shall be aggregated4  7#b7   
,covered individual ,the term covered   
individual means--  7,a7 the ,president1
 the ,vice ,president1 or a member of   
the ,defense ,production ,act           
,committee2 and  7,b7 the spouse1 child1
 son-in-law1 or daughter-in-law of an   
individual described in subparagraph    
7,a74  7#c7 ,equity interest ,the term  
equity interest means-- 7,a7 a share in 
an entity1 without regard to whether the
 share is--  7i7 transferable2 or  7ii7 
classified as stock or a similar        
classification2  7,b7 a capital or      
profit interest in a limited liability  
company or partnership2 and  7,c7 a     
warrant or right 7other than a right to 
convert7 to purchase1 sell1 or subscribe

 to a share or interest described in    
subparagraph 7,a7 or 7,b71 respectively4
  7#d7 ,significant interest ,the term  
significant interest means owning1      
controlling1 or holding not less than   
#bj percent1 by vote or value1 of the   
outstanding amount of any class of      
equity interest in an entity4  4  #c4   
,enhanced monetary penalties ,the       
,defense ,production ,act of #aiej 7#ej 
,u4,s4,c4 #deja et seq47 is amended--   
7#a7 in section #ajc1 by striking       
#aj1jjj and inserting #ajj1jjj2  7#b7 in
 section #gje1 by striking #aj1jjj each 
place it appears and inserting #ajj1jjj2
 and  7#c7 in section #gaj7;f71 by      
striking #aj1jjj and inserting #ajj1jjj4
  #d4 ,fraud risk management ,section   
#gbb of the ,defense ,production ,act of
 #aiej 7#ej ,u4,s4,c4 #defg7 is         
amended--  7#a7 in subsection 7d7-- 7,a7
 in paragraph 7#e71 by striking and at  
the end2  7,b7 in paragraph 7#f71 by    
striking the period at the end and      
inserting 2 and2 and  7,c7 by adding at 

the end the following new paragraph3    
7#g7 a summary of any steps taken to    
reduce fraud in transactions under this 
,act and a fraud risk assessment for all
 activities under undertaken under this 
,act4  2  7#b7 by redesignating         
subsection 7e7 as subsection 7f72 and   
7#c7 by inserting after subsection 7d7  
the following new subsection3  7e7      
,fraud risk management ,not later than  
#a year after the date of the enactment 
of this subsection1 the ,committee      
shall--  7#a7 establish and implement   
processes and procedures consistent with
 leading practices included in the      
publication of the ,comptroller ,general
 of the ,united ,states titled ,a       
,framework for ,managing ,fraud ,risks  
in ,federal ,programs                   
7,,gao-#ae-eic,,sp2 published ,july #bh1
 #bjae7 to combat fraud in transactions 
undertaken under this ,act2  7#b7 train 
personnel about the standards and       
practices established and implemented   
under paragraph 7#a72 and  7#c7         

designate a point of contact within the 
,committee to be responsible for        
managing issues relating to fraud1      
including coordinating with agencies to 
review fraud-related issues4  4  #e4    
,short title correction ,the first      
undesignated section of the the ,defense
 ,production ,act of #aiej is amended1  
effective on the date of enactment of   
such ,act1 by striking cited as 8the    
,defense and inserting cited as the     
8,defense4