,,ii  #aaith ,,congress  #ast ,session  
,s4 #dah  ,,in ,,the ,,senate ,,of ,,the
 ,,united ,,states  ,february #e1       
#bjbe,mr4 ,banks introduced the         
following bill2 which was read twice and
 referred to the ,committee on ,armed   
,services  ,a ,,bill  ,to prohibit      
contracts between certain foreign       
entities and institutions of higher     
education conducting ,department of     
,defense-funded research and to impose  
post-employment restrictions for        
participants in certain research funded 
by the ,department1 and for other       
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,defending ,defense 
,research from ,chinese ,communist      
,party ,espionage ,act of #bjbe4  #b4   
,prohibition on contracts between       
certain foreign entities and            
institutions of higher education        
conducting ,department of               
,defense-funded research  7a7 ,in       
general ,none of the funds authorized to
 be appropriated or otherwise made      

available for any fiscal year for the   
,department of ,defense may be provided 
to a covered institution of higher      
education that-- 7#a7 fails to comply   
with the prohibition set forth in       
subsection 7b72 and  7#b7 has not       
received a waiver under subsection 7c74 
7b7 ,prohibition ,beginning on ,january 
#a1 #bjbg1 a covered institution of     
higher education may not enter into a   
contract with a covered nation or a     
foreign entity of concern4  7c7 ,waivers
  7#a7 ,authority ,subject to the       
provisions of this subsection and       
subsection 7d71 the ,secretary of       
,defense may1 pursuant to a request     
submitted under paragraph 7#b7 of this  
subsection1 issue a waiver of the       
prohibition set forth in subsection 7b74
  7#b7 ,submission  7,a7 ,first waiver  
requests  7i7 ,in general ,a covered    
institution of higher education that    
desires to enter into a contract with a 
foreign entity of concern or a covered  
nation may submit to the ,secretary of  

,defense1 not later than #abj days      
before the institution enters into such 
a contract1 a request to waive the      
prohibition set forth in subsection 7b7 
with respect to such contract4  7ii7    
,contents of waiver request ,a waiver   
request submitted by a covered          
institution of higher education under   
clause 7i7 shall include-- 7,i7 the     
complete and unredacted text of the     
proposed contract for which the waiver  
is being requested1 and if such original
 contract is not in ,english1 a         
translated copy of the text into        
,english 7in a manner that complies with
 subsection 7f772 and  7,,ii7 a         
statement that-- 7aa7 is signed by the  
,president or compliance officer of the 
institution designated in accordance    
with subsection 7g72 and  7bb7 includes 
information that demonstrates that such 
contract is for the benefit of the      
institution's mission and students and  
will promote the security1 stability1   
and economic vitality of the ,united    

,states4  7,b7 ,renewal waiver requests 
7i7 ,in general ,a covered institution  
of higher education that has entered    
into a contract pursuant to a waiver    
issued under this section1 the term of  
which is longer than the #a-year waiver 
period and the terms and conditions of  
which remain the same as the proposed   
contract submitted as part of the       
request for such waiver1 may submit1 not
 later than #abj days before the        
expiration of such waiver period1 a     
request for a renewal of such waiver for
 an additional #a-year period 7which    
shall include any information requested 
by the ,secretary74  7ii7 ,termination  
,if a covered institution of higher     
education fails to submit a request     
under clause 7i7 or is not granted a    
renewal under such clause1 such         
institution shall terminate such        
contract on the last day of the original
 #a-year waiver period4  7#c7 ,waiver   
issuance ,the ,secretary of ,defense--  
7,a7 not later than #fj days before a   

covered institution of higher education 
enters into a contract pursuant to a    
waiver request under paragraph          
7#b77;,a71 or before a contract         
described in paragraph 7#b77;,b77i7 is  
renewed pursuant to a renewal request   
under such paragraph1 shall notify the  
institution-- 7i7 if the waiver or      
renewal will be issued by the           
,secretary2 and  7ii7 in a case in which
 the waiver or renewal will be issued1  
the date on which the #a-year waiver    
period starts2  7,b7 may only issue a   
waiver under this subsection to an      
institution if the ,secretary of        
,defense determines1 in consultation    
with the ,secretary of ,education1 that 
the contract for which the waiver is    
being requested will both-- 7i7 benefit 
of the institution's mission and        
students2 and  7ii7 promote the         
security1 stability1 and economic       
vitality of the ,united ,states2 and    
7,c7 shall1 when making the             
determination described in subparagraph 

7,b77ii71 base such determination on the
 following factors3 7i7 ,the economic   
situation of the ,united ,states4  7ii7 
,the economic situation of the foreign  
entity of concern or covered nation with
 which a contract is sought4  7iii7 ,the
 reasons for which the foreign entity of
 concern or covered nation has been so  
designated1 and why those reasons do not
 apply to the contract for which waiver 
is being sought4  7iv7 ,the foreign     
entity of concern or covered nation's   
interest in being involved with covered 
institutions of higher education4  7v7  
,the foreign entity of concern or       
covered nation's history of involvement 
with covered institutions of higher     
education4  7vi7 ,the degree to which   
such a contract could provide access to 
information or technology which could   
materially benefit the national security
 of a covered nation or harm the        
national security of the ,united        
,states4  7#d7 ,notification to         
,congress ,not later than #b weeks prior

 to issuing a waiver under this         
subsection1 the ,secretary of ,defense  
shall submit to the ,committee on ,armed
 ,services of the ,senate and the       
,committee on ,armed ,services of the   
,house of ,representatives written      
notice of the intent of the ,secretary  
to issue such waiver together with a    
justification for such waiver4  7#e7    
,application of waivers ,a waiver issued
 under this subsection to a covered     
institution of higher education with    
respect to a contract shall only-- 7,a7 
waive the prohibition under subsection  
7b7 for a #a-year period2 and  7,b7     
apply to the terms and conditions of the
 proposed contract submitted as part of 
the request for such waiver4  7d7       
,contracts prior to date of enactment   
7#a7 ,in general ,in the case of a      
covered institution of higher education 
that entered into contract with a       
covered nation or foreign entity of     
concern prior to ,january #a1 #bjbf1 and
 which contract remains in effect on    

such date-- 7,a7 the institution shall1 
not later than #abj days before such    
date1 submit to the ,secretary a waiver 
request in accordance with subsection   
7c77#b77;,a77ii72 and  7,b7 the         
,secretary shall1 upon receipt of the   
request submitted under subparagraph    
7,a71 immediately issue a waiver under  
subsection 7c7 to the institution for a 
period beginning on the date on which   
the waiver is issued and ending on the  
sooner of-- 7i7 ,january #a1 #bjbh2 or  
7ii7 the date on which the contract     
terminates4  7#b7 ,renewal ,a covered   
institution of higher education that has
 entered into a contract described in   
paragraph 7#a71 the term of which is    
longer than the waiver period described 
in subparagraph 7,b7 of such paragraph  
and the terms and conditions of which   
remain the same as the contract         
submitted as part of the request        
required under subparagraph 7,a7 of such
 paragraph1 may submit a request for    
renewal of the waiver issued under such 

paragraph in accordance with subsection 
7c77#b77;,b74  7e7 ,designation during  
contract term ,in the case of a covered 
institution of higher education that    
enters into a contract with a foreign   
source that is not a covered nation or a
 foreign entity of concern but which1   
during the term of such contract1 is    
designated as a covered nation or       
foreign entity of concern1 such         
institution shall terminate such        
contract not later than #abj days after 
the ,secretary notifies the institution 
of such designation4  7f7 ,translation  
requirement ,any information required to
 be disclosed under this section with   
respect to a contract that is not in    
,english shall be translated1 for       
purposes of such disclosure1 by a person
 that is not an affiliated entity or    
agent of the covered nation or foreign  
entity of concern involved with such    
contract4  7g7 ,compliance officer ,each
 covered institution of higher education
 applying for a waiver under subsection 

7c71 shall identify a compliance        
officer1 who shall-- 7#a7 be a current  
employee or legally authorized agent of 
such institution2 and  7#b7 be          
responsible1 on behalf of such          
institution1 for personally certifying--
 7,a7 compliance with the prohibition   
under this section2 and  7,b7 the truth 
and accuracy of any information         
contained in such a waiver request4  7h7
 ,public database ,not later than #ij   
days after issuing a waiver under       
subsection 7c71 the ,secretary of       
,defense shall publish a copy of the    
order granting the waiver and the       
contents of the waiver request on a     
publicly available website of the       
,department of ,defense4 ,such          
information shall be made available on  
such website in the form of a searchable
 database that includes links to the    
text of all contracts to which the      
waiver pertains4  7i7 ,annual reports   
,not later than ,june #a1 #bjbg1 and on 
an annual basis thereafter1 the         

,secretary of ,defense shall submit to  
the ,committee on ,armed ,services of   
the ,senate and the ,committee on ,armed
 ,services of the ,house of             
,representatives a report that includes 
a description of-- 7#a7 the terms and   
contents of any waivers issued under    
this section in the period covered by   
the report2  7#b7 any trends in-- 7,a7  
the number of waivers issued under this 
section over time2 and  7,b7 the types  
of contracts to which such waivers      
pertain2 and  7#c7 the processes used by
 the ,secretary to verify that covered  
institutions of higher education are in 
compliance with the requirements of this
 section4  7j7 ,definitions ,in this    
section3 7#a7 ,the term contract means--
 7,a7 any agreement or memorandum of    
understanding for the acquisition1 by   
purchase1 lease1 or barter1 of property 
or services by or from a covered nation 
or foreign entity of concern2 or  7,b7  
any affiliation1 agreement1 or similar  
transaction with a covered nation or    

foreign entity of concern that involves 
the use or exchange of the name1        
likeness1 time1 services1 or resources  
of a covered institution of higher      
education4  7#b7 ,the term covered      
institution of higher education means an
 institution of higher education that   
conducts research funded by the         
,department of ,defense4  7#c7 ,the term
 foreign entity of concern has the      
meaning given that term in section      
#ajfab7;a7 of the ,research and         
,development1 ,competition1 and         
,innovation ,act 7#db ,u4,s4,c4         
#aibba7;a77 and includes a foreign      
entity that is identified on the list   
published under section                 
#abhf7;c77#i77;,a7 of the ,john ,s4     
,mc,cain ,national ,defense             
,authorization ,act for ,fiscal ,year   
#bjai 7,public ,law #aae-bcb2 #aj       
,u4,s4,c4 #djja note74  7#d7 ,the term  
covered nation has the meaning given    
that term in section #dhgb7;d7 of title 
#aj1 ,united ,states ,code4  7#e7 ,the  

term institution of higher education has
 the meaning given that term in section 
#ajb of the ,higher ,education ,act of  
#aife 7#bj ,u4,s4,c4 #ajjb74  #c4       
,post-employment restrictions for       
participants in certain research funded 
by the ,department of ,defense  7a7 ,in 
general ,except as provided under       
subsection 7c71 as a condition of       
becoming or remaining a principal       
investigator of a covered defense       
research project1 a person shall agree  
that during the #aj-year period         
beginning on the last day the person is 
a principal investigator of such        
research1 such person may not seek or   
accept employment1 or conduct any       
activity1 for which a foreign entity of 
concern provides financial compensation 
or in-kind benefits4  7b7 ,critical or  
emerging technology ,for purposes of    
subsection 7a71 a critical or emerging  
technology is a technology that the     
,secretary of ,defense determines to be 
critical or emerging4 ,not later than   

#bgj days after the date of the         
enactment of this ,act1 and annually    
thereafter1 the ,secretary shall        
determine which technologies are        
critical or emerging from among the     
technologies for which the ,department  
of ,defense funds research1 and shall   
make the results of such determination  
publicly available4  7c7 ,waiver        
authority ,the ,secretary may waive the 
restriction under subsection 7a7 with   
respect to a ,united ,states person if1 
not later than #cj days before issuing  
the waiver1 the ,secretary submits to   
the congressional defense committees a  
notice of the waiver that includes--    
7#a7 an unclassified justification for  
the waiver2 and  7#b7 a description of  
any ,department of ,defense funds       
provided to the person for which the    
waiver is issued or to the research in  
which the person participated4  7d7     
,applicability ,this section shall apply
 with respect to research that begins on
 or after the date that is one year     

after the date of the enactment of this 
,act4  7e7 ,definitions  7#a7 ,foreign  
entity of concern ,in this section1 the 
term foreign entity of concern has the  
meaning given that term in section      
#ajfab7;a7 of the ,research and         
,development1 ,competition1 and         
,innovation ,act 7#db ,u4,s4,c4         
#aibba7;a77 and includes a foreign      
entity that is identified on the list   
published under section                 
#abhf7;c77#i77;,a7 of the ,john ,s4     
,mc,cain ,national ,defense             
,authorization ,act for ,fiscal ,year   
#bjai 7,public ,law #aae-bcb2 #aj       
,u4,s4,c4 #djja note74  7#b7 ,covered   
defense research project ,the term      
covered defense research project means a
 research project that is-- 7,a7        
operated by an institution of higher    
education or a subsidiary of an         
institution of higher education2  7,b7  
funded1 in whole or in part1 by the     
,department of ,defense2 and  7,c7 which
 involves a critical or emerging        

technology1 as defined in subsection 7b7
 of this section4  7#c7 ,institution of 
higher education ,the term institution  
of higher education has the meaning     
given that term in section #ajb of the  
,higher ,education ,act of #aife 7#bj   
,u4,s4,c4 #ajjb74