,,ii  #aai? ,,congress  #b;d ,session   
,s4 #dgcd  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,june #aj1 #bjbf,ms4   
,w>r5 7= h]self & ,mr4 ,blum5?al7       
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on !     
,judici>y  ,a ,,bill  ,to require a     
review ( acquisitions by inve/m5t       
companies involv+ acquisition (         
controll+ int]e/ ( major def5se         
suppli]s1 & = o!r purposes4  #a4 ,%ort  
title ,?is ,act may be cit$ z !         
,critical ,def5se ,own]%ip ,review ,act4
  #b4 ,review ( acquisitions by inve/m5t
 companies involv+ acquisition (        
controll+ int]e/ ( major def5se suppli]s
  7a7 ,9 g5]al ,except ) ! prior review 
( ! ,dep>tm5t ( ,def5se1 no inve/m5t    
company %all engage 9 a cov]$           
transaction ) a major def5se suppli] t  
results 9 an inve/m5t company hav+ a    
direct or indirect equity int]e/ ( at   
lea/ #be p]c5t or direct or indirect    
control ( a major def5se suppli]4  7b7  
,prem]g] notification requirem5t ,p>ties

 to a cov]$ transaction z describ$ 9    
subsection 7a7 %all submit a prem]g]    
notification to ! ,dep>tm5t ( ,def5se   
consi/5t ) ! requirem5ts ( section #heg 
( ! ,national ,def5se ,au?orization ,act
 = ,fiscal ,ye> #bjbd 7,public ,law     
#aah-ca2 #ae ,u4,s4,c4 #ah;a note74  7c7
 ,dep>tm5t ( ,def5se review ,! ,dep>tm5t
 ( ,def5se %all conduct a review ( ea*  
prem]g] notification submitt$ pursuant  
to subsection 7b7 t assesses1 at a      
m9imum-- 7#a7 any impact ( ! cov]$      
transaction on national security & !    
indu/rial & te*nological base1 & :e!r ! 
cov]$ transaction is )9 ! public int]e/2
  7#b7 ! pot5tial effect on competition 
= ,dep>tm5t ( ,def5se contracts &       
subcontracts1 includ+ future programs & 
te*nologies ( int]e/ to ! ,dep>tm5t (   
,def5se2  7#c7 ! pot5tial re/riction ( a
 suppli]1 good1 or s]vice t is critical 
to ! def5se indu/rial base1 critical    
te*nologies1 or national security2  7#d7
 ! pot5tial risks associat$ ) ! cov]$   
transaction on ! f9ancial /ability ( !  

major def5se suppli] & ! cont9u$        
/ew>d%ip ( critical milit>y             
capabilities1 includ+ any anticipat$    
increas$ co/s to ! ,dep>tm5t ( ,def5se2 
7#e7 any o!r factor result+ f ! cov]$   
transaction t may adv]sely affect !     
satisfactory completion ( curr5t or     
future ,dep>tm5t ( ,def5se programs or  
op]ations2 &  7#f7 ! f9ancial /ability (
 ! inve/m5t managem5t company involv$ 9 
! cov]$ transaction & an analysis ( :e!r
 its project$ f9ancial plan = ! major   
def5se suppli] impairs ! ability ( !    
major def5se suppli] to ma9ta9 its      
supply or s]vices to ! ,dep>tm5t (      
,def5se4  7d7 ,report to antitru/       
au?orities ,n lat] ?an #cj days aft] !  
date on :i* ! ,dep>tm5t ( ,def5se       
receives a prem]g] notification "u      
subsection 7b71 ! ,secret>y ( ,def5se   
%all submit to ! ,f$]al ,trade          
,commission or ! ,assi/ant ,attorney    
,g5]al 9 *>ge ( ! ,antitru/ ,division ( 
! ,dep>tm5t ( ,ju/ice1 z applicable1 a  
writt5 report on ! review conduct$ "u   

subsection 7c74  7e7 ,def9itions ,9 ?is 
section3 7#a7 ,control ,! t]m control   
means ! p[]1 direct or indirect1 :e!r   
ex]cis$ or n ex]cis$1 to det]m9e1       
direct1 or decide important matt]s      
affect+ an entity4  7#b7 ,cov]$         
transaction ,! t]m cov]$ transaction    
means any propos$ m]g]1 acquisition1    
jo9t v5ture1 /rategic alliance1 or      
inve/m5t p5d+ on or occurr+ aft] ! date 
( ! enactm5t ( ?is ,act4  7#c7 ,inve/m5t
 company ,! t]m inve/m5t company means  
an entity t w\ld be an inve/m5t company 
"u section #c ( ! ,inve/m5t ,company    
,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#c7 b 
= ! application ( p>agraph 7#a7 or 7#g7 
( subsection 7c7 ( su* section4  7#d7   
,major def5se suppli] ,! t]m major      
def5se suppli]-- 7,a7 means any prime   
contractor or subcontractor t supplies  
or c\ld supply goods or s]vices directly
 or indirectly to ! ,dep>tm5t ( ,def5se 
or any company ) te*nology pot5tially   
significant to def5se capabilities2 &   
7,b7 includes-- 7i7 any curr5t prime    

contractor ( a major sy/em 7z t t]m is  
def9$ 9 section #cjda ( title #aj1      
,unit$ ,/ates ,code72 &  7ii7 any curr5t
 prime contractor1 "u a contract aw>d$  
pursuant to section #cbjd7;a77#a7 (     
title #aj1 ,unit$ ,/ates ,code4  #c4    
,tri5nial review ( m]g] & acquisition   
activity associat$ ) major def5se       
suppli]s  7a7 ,tri5nial review ,!       
,assi/ant ,secret>y ( ,def5se =         
,indu/rial ,base ,policy %all tri5nially
 review m]g] & acquisition activity     
associat$ ) major def5se suppli]s1      
includ+ assess+ ! result+ f9ancial heal?
 ( ^! firms & :e!r result+ m]g]s &      
acquisitions h affect$ ! supply ( an    
ess5tial good or s]vice ne$$ to support 
! ,dep>tm5t ( ,def5se's mission to      
provide national security & def5se4  7b7
 ,tri5nial report ,n lat] ?an ,decemb]  
#ca1 #bjbg1 & tri5nially !reaft]1 !     
,secret>y ( ,def5se = ,indu/rial ,base  
,policy %all submit to ! congressional  
def5se committees a report ) ! f9d+s ( !
 review conduct$ = ! previ\s ?ree fiscal

 ye>s1 includ+ a description ( ! effects
 ( complet$ m]g]s & acquisitions on !   
heal? ( ! def5se indu/rial base &       
actions tak5 to mitigate any risks      
id5tifi$4