,,ii  #aaith ,,congress  #b;d ,session  
,s4 #dgcd  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,june #aj1     
#bjbf,ms4 ,warren 7for herself and ,mr4 
,blumenthal7 introduced the following   
bill2 which was read twice and referred 
to the ,committee on the ,judiciary  ,a 
,,bill  ,to require a review of         
acquisitions by investment companies    
involving acquisition of controlling    
interest of major defense suppliers1 and
 for other purposes4  #a4 ,short title  
,this ,act may be cited as the ,critical
 ,defense ,ownership ,review ,act4  #b4 
,review of acquisitions by investment   
companies involving acquisition of      
controlling interest of major defense   
suppliers  7a7 ,in general ,except with 
the prior review of the ,department of  
,defense1 no investment company shall   
engage in a covered transaction with a  
major defense supplier that results in  
an investment company having a direct or
 indirect equity interest of at least   
#be percent or direct or indirect       

control of a major defense supplier4    
7b7 ,premerger notification requirement 
,parties to a covered transaction as    
described in subsection 7a7 shall submit
 a premerger notification to the        
,department of ,defense consistent with 
the requirements of section #heg of the 
,national ,defense ,authorization ,act  
for ,fiscal ,year #bjbd 7,public ,law   
#aah-ca2 #ae ,u4,s4,c4 #ah;a note74  7c7
 ,department of ,defense review ,the    
,department of ,defense shall conduct a 
review of each premerger notification   
submitted pursuant to subsection 7b7    
that assesses1 at a minimum-- 7#a7 any  
impact of the covered transaction on    
national security and the industrial and
 technological base1 and whether the    
covered transaction is within the public
 interest2  7#b7 the potential effect on
 competition for ,department of ,defense
 contracts and subcontracts1 including  
future programs and technologies of     
interest to the ,department of ,defense2
  7#c7 the potential restriction of a   

supplier1 good1 or service that is      
critical to the defense industrial base1
 critical technologies1 or national     
security2  7#d7 the potential risks     
associated with the covered transaction 
on the financial stability of the major 
defense supplier and the continued      
stewardship of critical military        
capabilities1 including any anticipated 
increased costs to the ,department of   
,defense2  7#e7 any other factor        
resulting from the covered transaction  
that may adversely affect the           
satisfactory completion of current or   
future ,department of ,defense programs 
or operations2 and  7#f7 the financial  
stability of the investment management  
company involved in the covered         
transaction and an analysis of whether  
its projected financial plan for the    
major defense supplier impairs the      
ability of the major defense supplier to
 maintain its supply or services to the 
,department of ,defense4  7d7 ,report to
 antitrust authorities ,not later than  

#cj days after the date on which the    
,department of ,defense receives a      
premerger notification under subsection 
7b71 the ,secretary of ,defense shall   
submit to the ,federal ,trade           
,commission or the ,assistant ,attorney 
,general in charge of the ,antitrust    
,division of the ,department of         
,justice1 as applicable1 a written      
report on the review conducted under    
subsection 7c74  7e7 ,definitions ,in   
this section3 7#a7 ,control ,the term   
control means the power1 direct or      
indirect1 whether exercised or not      
exercised1 to determine1 direct1 or     
decide important matters affecting an   
entity4  7#b7 ,covered transaction ,the 
term covered transaction means any      
proposed merger1 acquisition1 joint     
venture1 strategic alliance1 or         
investment pending on or occurring after
 the date of the enactment of this ,act4
  7#c7 ,investment company ,the term    
investment company means an entity that 
would be an investment company under    

section #c of the ,investment ,company  
,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#c7  
but for the application of paragraph    
7#a7 or 7#g7 of subsection 7c7 of such  
section4  7#d7 ,major defense supplier  
,the term major defense supplier-- 7,a7 
means any prime contractor or           
subcontractor that supplies or could    
supply goods or services directly or    
indirectly to the ,department of        
,defense or any company with technology 
potentially significant to defense      
capabilities2 and  7,b7 includes-- 7i7  
any current prime contractor of a major 
system 7as that term is defined in      
section #cjda of title #aj1 ,united     
,states ,code72 and  7ii7 any current   
prime contractor1 under a contract      
awarded pursuant to section             
#cbjd7;a77#a7 of title #aj1 ,united     
,states ,code4  #c4 ,triennial review of
 merger and acquisition activity        
associated with major defense suppliers 
7a7 ,triennial review ,the ,assistant   
,secretary of ,defense for ,industrial  

,base ,policy shall triennially review  
merger and acquisition activity         
associated with major defense suppliers1
 including assessing the resulting      
financial health of these firms and     
whether resulting mergers and           
acquisitions have affected the supply of
 an essential good or service needed to 
support the ,department of ,defense's   
mission to provide national security and
 defense4  7b7 ,triennial report ,not   
later than ,december #ca1 #bjbg1 and    
triennially thereafter1 the ,secretary  
of ,defense for ,industrial ,base       
,policy shall submit to the             
congressional defense committees a      
report with the findings of the review  
conducted for the previous three fiscal 
years1 including a description of the   
effects of completed mergers and        
acquisitions on the health of the       
defense industrial base and actions     
taken to mitigate any risks identified4