Full text
- This is an unofficial copy. The document has been archived and reformatted in plaintext for AGORA. Footnotes, tables, and similar material may be omitted. For the official text, visit the original source.
SEC. 8521. PROHIBITION AND NOTIFICATION ON INVESTMENTS RELATING TO
COVERED NATIONAL SECURITY TRANSACTIONS.
The Defense Production Act of 1950 (50 U.S.C. 4501 et seq.) is
amended by adding at the end the following:
``TITLE VIII--PROHIBITION AND NOTIFICATION ON INVESTMENTS RELATING TO
COVERED NATIONAL SECURITY TRANSACTIONS
``SEC. 801. PROHIBITION ON INVESTMENTS.
``(a) In General.--The Secretary may prohibit, in accordance with
regulations issued under subsection (e), a United States person,
including its controlled foreign entities, from knowingly engaging in a
covered national security transaction in any prohibited technology.
``(b) Evasion.--Any action that evades or avoids, has the purpose
of evading or avoiding, causes a violation of, or attempts to violate
the prohibition set forth in subsection (a) is prohibited.
``(c) Exemptions.--
``(1) National interest exemption.--Subject to subsection (d),
the Secretary is authorized to exempt from the prohibition set
forth in subsection (a) any activity determined by the President,
in consultation with the Secretary, or delegated to the Secretary,
in coordination with the Secretary of Commerce, the Secretary of
State, and, as appropriate, the heads of other relevant Federal
departments and agencies, to be in the national interest of the
United States.
``(2) Intelligence exemption.--Regulations issued under
subsection (e) shall not apply to any authorized intelligence
activities of the United States.
``(d) Congressional Notification.--The Secretary shall--
``(1) notify the appropriate congressional committees not later
than five business days after issuing an exemption under subsection
(c); and
``(2) include in such notification an identification of the
national interest justifying the use of the exemption, subject to
appropriate confidentiality and classification requirements.
``(e) Regulations.--
``(1) In general.--The Secretary, in consultation with the
Secretary of Commerce, the Secretary of State and, as appropriate,
the heads of other relevant Federal departments and agencies, may
issue or update existing regulations to carry out this section
subject to public notice and comment in accordance with subchapter
II of chapter 5 and chapter 7 of title 5, United States Code, and
not subject to the requirements of section 709. The regulations
issued pursuant to this paragraph shall, as necessary, amend,
terminate, supersede, revoke, or streamline existing requirements
in part 850 of title 31, Code of Federal Regulations (the Outbound
Investment Rule) and shall provide a reasonable timeframe for
compliance.
``(2) Non-binding feedback.--
``(A) In general.--The regulations issued under paragraph
(1) shall include a process under which a person can request to
receive non-binding feedback on a confidential basis, or as
anonymized guidance to the public, as to whether a transaction
would constitute a covered national security transaction in a
prohibited technology.
``(B) Authority to limit frivolous feedback requests.--In
establishing the process required by subparagraph (A), the
Secretary may prescribe limitations on requests for feedback
identified as frivolous for purposes of this subsection.
``(3) Notice; opportunity to cure.--
``(A) In general.--The regulations issued under paragraph
(1) shall account for whether a United States person has self-
identified and self-disclosed a violation of the prohibition
set forth in subsection (a) in determining the legal
consequences of that violation.
``(B) Self-disclosure letters.--The regulations issued
under paragraph (1) shall dictate the form and content of a
letter of self-disclosure, which shall include relevant facts
about the violation, why the United States person believes its
activity to have violated the prohibition set forth in
subsection (a), and a proposal for mitigation of the harm of
such action.
``(4) Low-burden regulations.--In issuing regulations under
paragraph (1), the Secretary should balance the priority of
protecting the national security interest of the United States
while, to the extent practicable--
``(A) minimizing the cost and complexity of compliance for
affected parties, including the duplication of reporting
requirements under current regulations;
``(B) adopting the least burdensome alternative that
achieves regulatory objectives; and
``(C) prioritizing transparency and stakeholder involvement
in the process of issuing the rules.
``(5) Burden of proof.--In accordance with section 556(d) of
title 5, United States Code, in an enforcement action for a
violation of the prohibition set forth in subsection (a), the
burden of proof shall be upon the Secretary.
``SEC. 802. NOTIFICATION ON INVESTMENTS.
``(a) Mandatory Notification.--Not later than 450 days after the
date of the enactment of this title, the Secretary shall issue
regulations prescribed in accordance with subsection (b), to require a
United States person that itself or whose controlled foreign entity
knowingly engages in a covered national security transaction in a
prohibited technology (unless the Secretary has exercised the authority
provided by section 801(a) to prohibit knowingly engaging in such
covered national security transaction) or a notifiable technology to
submit to the Secretary a written notification of the transaction not
later than 30 days after the completion date of the transaction.
``(b) Regulations.--
``(1) In general.--Not later than 450 days after the date of
the enactment of this title, the Secretary, in consultation with
the Secretary of Commerce, the Secretary of State, and, as
appropriate, the heads of other relevant Federal departments and
agencies, shall issue regulations to carry out this section subject
to public notice and comment in accordance with subchapter II of
chapter 5 and chapter 7 of title 5, United States Code, and not
subject to the requirements of section 709. The regulations issued
pursuant to this paragraph shall as necessary, amend, terminate,
supersede, revoke, or streamline existing requirements in part 850
of title 31, Code of Federal Regulations (the Outbound Investment
Rule) and shall provide a reasonable timeframe for compliance.
``(2) Low-burden regulations.--In issuing regulations under
paragraph (1), the Secretary should balance the priority of
protecting the national security interest of the United States
while, to the extent practicable--
``(A) minimizing the cost and complexity of compliance for
affected parties, including the duplication of reporting
requirements under current regulation;
``(B) adopting the least burdensome alternative that
achieves regulatory objectives; and
``(C) prioritizing transparency and stakeholder involvement
in the process of issuing the rules.
``(3) Burden of proof.--In accordance with section 556(d) of
title 5, United States Code, in an enforcement action for a
violation of the prohibition set forth in subsection (a), the
burden of proof shall be upon the Secretary.
``(4) Completeness of notification.--
``(A) In general.--The Secretary shall, upon receipt of a
notification under subsection (a), promptly inspect the
notification for completeness.
``(B) Incomplete notifications.--If a notification
submitted under subsection (a) is incomplete, the Secretary
shall promptly inform the United States person that submits the
notification that the notification is not complete and provide
an explanation of relevant material respects in which the
notification is not complete.
``(5) Identification of non-notified activity.--The Secretary
shall establish a process to identify covered national security
transactions in a prohibited technology or a notifiable technology
for which--
``(A) a notification is not submitted to the Secretary
under subsection (a); and
``(B) information is reasonably available.
``(c) Inapplicability.--If the Secretary prohibits a covered
national security transaction in a prohibited technology under section
801, the requirements of this section shall not apply with respect to
the covered national security transaction.
``SEC. 803. REPORT.
``(a) In General.--Not later than 18 months after the date of
enactment of this title, and not less frequently than annually
thereafter, the Secretary, in consultation with the Secretary of
Commerce and, as appropriate, the heads of other relevant Federal
departments and agencies, shall submit to the appropriate congressional
committees a report, subject to appropriate confidentiality and
classification requirements, that--
``(1) lists all enforcement actions taken subject to the
existing regulations and regulations issued under section 801(e)
and 802(b) during the year preceding submission of the report,
which includes, with respect to each such action, a description
of--
``(A) the prohibited technology or notifiable technology;
``(B) the covered national security transaction;
``(C) the covered foreign person; and
``(D) the relevant United States person;
``(2) provides an assessment of the definition of the term
`prohibited technology' under existing regulations or regulations
issued under section 801(e) or 802(b) by--
``(A) identifying additional technologies that the
Secretary, in consultation with the Secretary of Commerce and,
as applicable, the Secretary of Defense, the Secretary of
State, the Secretary of Energy, the Director of National
Intelligence, and the heads of any other relevant Federal
agencies, determined under existing regulations or regulations
issued pursuant to 801(e) may pose an acute threat to the
national security of the United States if developed or acquired
by a country of concern;
``(B) explaining why each technology identified in
subparagraph (A) may pose an acute threat to the national
security of the United States if developed or acquired by a
country of concern; and
``(C) describing any removal of technologies from the
category of prohibited technology under existing regulations or
regulations issued under section 801(e) during the reporting
period to the extent that the technologies no longer pose an
acute threat to the national security of the United States if
developed or acquired by a country of concern;
``(3) lists all notifications submitted under existing
regulations or regulations issued section 802 during the year
preceding submission of the report and includes, with respect to
each such notification--
``(A) basic information on each party to the covered
national security transaction with respect to which the
notification was submitted; and
``(B) the nature of the covered national security
transaction that was the subject of the notification, including
the elements of the covered national security transaction that
necessitated a notification;
``(4) includes a summary of those notifications, disaggregated
by prohibited technology, by notifiable technology, by covered
national security transaction, and by country of concern;
``(5) provides additional context and information regarding
trends in the prohibited technology, notifiable technology, the
types of covered national security transaction, and the countries
involved in those notifications; and
``(6) assesses the overall impact of those notifications,
including recommendations for--
``(A) expanding existing Federal programs to support the
production or supply of prohibited technologies or notifiable
technologies in the United States, including the potential of
existing authorities to address any related national security
concerns;
``(B) investments needed to enhance prohibited technologies
or notifiable technologies and reduce United States dependence
on countries of concern regarding those technologies; and
``(C) the continuation, expansion, or modification of the
implementation and administration of this title.
``(b) Consideration of Certain Information.--In preparing the
report pursuant to subsection (a), the Secretary--
``(1) shall consider information provided jointly by the
chairperson and ranking member of any of the appropriate
congressional committees;
``(2) may consider credible information obtained by other
countries and nongovernmental organizations that monitor the
military, surveillance, intelligence, or technology capabilities of
a country of concern; and
``(3) may consider any other information that the Secretary
deems relevant.
``(c) Form of Report.--Each report required by this section shall
be submitted in unclassified form, but may include a classified annex.
``(d) Testimony Required.--Not later than one year after the date
of the enactment of this title, and annually thereafter for five years,
the Secretary and the Secretary of Commerce, or their designee, shall
each provide to the Committee on Banking, Housing, and Urban Affairs of
the Senate and the Committees on Foreign Affairs and Financial Services
of the House of Representatives testimony with respect to the national
security threats relating to investments by United States persons in
countries of concern and broader international capital flows.
``(e) Requests by Appropriate Congressional Committees.--
``(1) In general.--After receiving a request that meets the
requirements of paragraph (2) with respect to whether a technology
should be included in the amendments as described in subsection
(a)(2), the Secretary shall, in preparing the report pursuant to
subsection (a)--
``(A) determine if that technology may pose an acute threat
to the national security of the United States if developed or
acquired by a country of concern; and
``(B) include in the report pursuant to subsection (a) an
explanation with respect to that determination that includes--
``(i) a statement of whether or not the technology, as
determined by the Secretary, may pose an acute threat to
the national security of the United States if developed or
acquired by a country of concern; and
``(ii) if the Secretary determines that--
``(I) the technology may pose an acute threat to
the national security of the United States if developed
or acquired by a country of concern, an explanation for
such determination and a recommendation whether that
technology should be named a prohibited technology or a
notifiable technology; and
``(II) the technology would not pose an acute
threat to the national security of the United States if
developed or acquired by a country of concern, an
explanation for such determination.
``(2) Requirements.--A request under paragraph (1) with respect
to whether a technology may pose an acute threat to the national
security of the United States if developed or acquired by a country
of concern shall be submitted to the Secretary in writing jointly
by the chairperson and ranking member of 1 or more of the
appropriate congressional committees.
``SEC. 804. MULTILATERAL ENGAGEMENT AND COORDINATION.
``(a) Authorities.--The Secretary, in coordination with the
Secretary of State, the Secretary of Commerce, and the heads of other
relevant Federal agencies, should--
``(1) conduct bilateral and multilateral engagement with the
governments of countries that are allies and partners of the United
States to promote and increase coordination of protocols and
procedures to facilitate the effective implementation of and
appropriate compliance with the prohibitions and notification
requirement pursuant to this title;
``(2) upon adoption of protocols and procedures described in
paragraph (1), work with those governments to establish mechanisms
for sharing information, including trends, with respect to such
activities; and
``(3) work with and encourage the governments of countries that
are allies and partners of the United States to develop similar
mechanisms of their own, for the exclusive purpose of preventing
the development of prohibited technologies by a country of concern.
``(b) Strategy for Multilateral Engagement and Coordination.--Not
later than 180 days after the date of the regulations implementing
enactment of this title, the Secretary, in coordination with the
Secretary of State, the Secretary of Commerce, and the heads of other
relevant Federal agencies, should--
``(1) develop a strategy to work with the governments of
countries that are allies and partners of the United States to
develop mechanisms that are comparable to the prohibitions and
notification requirements pursuant to this title, for the exclusive
purpose of preventing the development of prohibited technologies by
a country of concern; and
``(2) assess opportunities to provide technical assistance to
those countries with respect to the development of those
mechanisms.
``(c) Report.--Not later than one year after the date of the
regulations implementing enactment of this title, and annually
thereafter for four years, the Secretary shall submit to the
appropriate congressional committees a report, subject to the
appropriate confidentiality and classification requirements, that
includes--
``(1) a discussion of any strategy developed pursuant to
subsection (b)(1), including key tools and objectives for the
development of comparable mechanisms by the governments of allies
and partners of the United States;
``(2) a list of partner and allied countries to target for
cooperation in developing their own prohibitions;
``(3) the status of the strategy's implementation and outcomes;
and
``(4) a description of impediments to the establishment of
comparable mechanisms by governments of allies and partners of the
United States.
``(d) Appropriate Congressional Committees Defined.--In this
section, the term `appropriate congressional committees' means--
``(1) the Committee on Foreign Relations and the Committee on
Banking, Housing, and Urban Affairs of the Senate; and
``(2) the Committee on Foreign Affairs and the Committee on
Financial Services of the House of Representatives.
``SEC. 805. PUBLIC DATABASE OF COVERED FOREIGN PERSONS.
``(a) In General.--The Secretary, in consultation with the
Secretary of Commerce, may establish a publicly accessible, non-
exhaustive database that identifies covered foreign persons that are
either engaged in a prohibited technology or a notifiable technology
pursuant to this title.
``(b) Modification Process.--The Secretary, in consultation with
the Secretary of Commerce, is authorized to establish a mechanism for a
covered foreign person to petition for their removal from or inclusion
in the publicly accessible, non-exhaustive database described in (a).
``(c) Confidentiality of Evidence.--The Secretary shall establish a
mechanism for the public, including Congress, stakeholders, investors,
and nongovernmental organizations, to submit evidence on a confidential
basis regarding whether a foreign person is a covered foreign person in
a prohibited technology or notifiable technology and should be included
in the database described in subsection (a), if any.
``(d) Rule of Construction.--The database described in subsection
(a), if any, shall not be considered to be an exhaustive or
comprehensive list of covered foreign persons for the purposes of this
title.
``SEC. 806. RULE OF CONSTRUCTION.
``Nothing in this title may be construed to negate the authority of
the President under any authority, process, regulation, investigation,
enforcement measure, or review provided by or established under any
other provision of Federal law, including the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.), or any other authority of
the President or the Congress under the Constitution of the United
States.
``SEC. 807. PENALTIES.
``(a) In General.--The regulations issued under section 801 or 802
shall provide for the imposition of civil penalties described in
subsection (b).
``(b) Penalties Described.--
``(1) Unlawful acts.--It shall be unlawful for a person to
violate, attempt to violate, conspire to violate, or cause a
violation of any order, regulation, notification requirement, or
prohibition issued under this title.
``(2) Civil penalty.--The Secretary may impose civil penalties
on any person who commits an unlawful act described in paragraph
(1) in amounts equivalent to amounts provided for under section
206(b) of the International Emergency Economic Powers Act (50
U.S.C. 1705(b)) for violations under that Act.
``(3) Divestment.--The Secretary may compel the divestment of a
covered national security transaction in a prohibited technology
determined to be in violation of section 801(a) or regulations
issued thereunder.
``(4) Relief.--The President may direct the Attorney General of
the United States to seek appropriate relief, including divestment
relief for violations of the prohibition set forth in subsection
801(a), in the district courts of the United States, in order to
implement and enforce this title.
``SEC. 808. EXEMPTION FROM DISCLOSURE.
``(a) In General.--Except as provided in subsection (b), any
information or documentary material filed with the Secretary or the
Secretary's designee pursuant to this title shall be exempt from
disclosure under section 552(b)(3) of title 5, United States Code, and
no such information or documentary material may be made public.
``(b) Exceptions.--Subsection (a) shall not prohibit the disclosure
of the following, subject to appropriate confidentiality and
classification requirements:
``(1) Information relevant to any administrative or judicial
action or proceeding.
``(2) Information to Congress or any duly authorized committee
or subcommittee of Congress.
``(3) Information important to the national security analysis
or actions of the Secretary to any domestic governmental entity, or
to any foreign governmental entity of a United States ally or
partner, under the exclusive direction and authorization of the
Secretary, only to the extent necessary for national security
purposes, and subject to appropriate confidentiality and
classification requirements.
``(4) Identity of a covered foreign person in the public
database described in section 805.
``(5) Information that the parties have consented to be
disclosed to third parties.
``(6) Information gathered by the Secretary or the Secretary's
designee where the disclosure is determined to be in the national
security interest, which may include publication of anonymized
data.
``SEC. 809. DEFINITIONS.
``In this title:
``(1) Appropriate congressional committees.--Except as provided
in section 804(d), the term `appropriate congressional committees'
means--
``(A) the Committee on Financial Services, the Committee on
Foreign Affairs, and the Committee on Appropriations of the
House of Representatives; and
``(B) the Committee on Banking, Housing, and Urban Affairs
and the Committee on Appropriations of the Senate.
``(2) Country of concern.--The term `country of concern'
means--
``(A) the People's Republic of China, including the Hong
Kong and Macau Special Administrative Regions;
``(B) the Republic of Cuba;
``(C) the Islamic Republic of Iran;
``(D) the Democratic People's Republic of Korea;
``(E) the Russian Federation; and
``(F) the Bolivarian Republic of Venezuela under the regime
of Nicolas Maduro Moros.
``(3) Covered foreign person.--Subject to regulations
prescribed in accordance with this title, the term `covered foreign
person' means a foreign person that--
``(A) is incorporated in, has a principal place of business
in, or is organized under the laws of a country of concern;
``(B) is a member of the Central Committee of the Chinese
Communist Party or is a member of the political leadership of a
country of concern;
``(C) is subject to the direction or control of a country
of concern, as defined by regulation, an entity described in
subparagraph (A) or (B), or the state or the government of a
country of concern (including any political subdivision,
agency, or instrumentality thereof); or
``(D) is owned in the aggregate, directly or indirectly, 50
percent or more by a country of concern, an entity described in
subparagraph (A) or (B), or the state or the government of a
country of concern (including any political subdivision,
agency, or instrumentality thereof).
``(4) Covered national security transaction.--
``(A) In general.--Subject to such regulations as may be
issued in accordance with this title, the term `covered
national security transaction' means a United States person's
direct or indirect--
``(i) acquisition of an equity interest or contingent
equity interest in a covered foreign person that the United
States person knows at the time of the acquisition is a
covered foreign person;
``(ii) provision of a loan or similar debt financing
arrangement to a covered foreign person that the United
States person knows at the time of the provision is a
covered foreign person, where such debt financing affords
or will afford the United States person an interest in
profits of the covered foreign person, the right to appoint
members of the board of directors (or equivalent) of the
covered foreign person, or other comparable financial or
governance rights characteristic of an equity investment
but not typical of a loan;
``(iii) entrance by such United States person into a
joint venture, wherever located, that is formed with a
person of a country of concern, and that the subject United
States person knows at the time of entrance into the joint
venture that the joint venture will engage, or plans to
engage, in a prohibited technology or notifiable
technology;
``(iv) conversion of a contingent equity interest (or
interest equivalent to a contingent equity interest) or
conversion of debt to an equity interest in a covered
foreign person;
``(v) acquisition, leasing, or other development of
operations, land, property, or other assets in a country of
concern that the United States person knows at the time of
such acquisition, leasing, or other development will result
in, or that the United States person plans to result in--
``(I) the establishment of a covered foreign
person; or
``(II) the engagement of a person of a country of
concern in a prohibited technology or notifiable
technology;
``(vi) knowingly directing prohibited transactions or
notifiable transactions by foreign persons that the United
States person has knowledge at the time of the transaction
would constitute an activity described in clause (i), (ii),
(iii), (iv), or (v), if engaged in by a United States
person;
``(vii) acquisition of a limited partner or equivalent
interest in a venture capital fund, private equity fund,
fund of funds, or other pooled investment fund (in each
case where the fund is not a United States person) that the
United States person has knowledge at the time of the
acquisition likely will invest in a person of a country of
concern that is in one of the notifiable technology or
prohibited technology sectors, and such fund undertakes a
transaction that would be a covered national security
transaction if undertaken by a United States person; or
``(viii) any other transaction identified by the
Secretary, in consultation with the appropriate
congressional committees and subject to public notice and
comment in accordance with subchapter II of chapter 5 and
chapter 7 of title 5, United States Code, and not subject
to the requirements of section 709, that is contributing to
the military, intelligence, surveillance, or cyber-enabled
capabilities of a country of concern.
``(B) Exceptions and clarifications.--Subject to
regulations prescribed in accordance with this title, the term
`covered national security transaction' does not include--
``(i) any transaction the value of which the Secretary
determines is de minimis;
``(ii) any category of transactions that the Secretary
determines is in the national interest of the United
States;
``(iii) an investment--
``(I) in a security (as defined in section 3(a) of
the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)))
that is traded on an exchange or the over-the-counter
market in any jurisdiction;
``(II) in a security issued by an investment
company (as defined in section 3 of the Investment
Company Act of 1940 (15 U.S.C. 80a-3)) that is
registered with the Securities and Exchange Commission,
or, if the Secretary chooses to include it as an
exception from a covered national security transaction,
in a security issued by a non-United States investment
company that is registered with a foreign regulator
with comparable oversight standards and regulatory
jurisdiction to the Securities and Exchange Commission
as determined by the Secretary of Treasury;
``(III) made as a limited partner or equivalent in
a venture capital fund, private equity fund, fund of
funds, or other pooled investment fund (other than as
described in subclause (II)) where--
``(aa) the limited partner or equivalent's
committed capital is not more than a de minimis
amount, as determined by the Secretary, aggregated
across any investment and co-investment vehicles of
the fund; or
``(bb) the limited partner or equivalent has
secured a binding contractual assurance that its
capital in the fund will not be used to engage in a
transaction that would be a covered national
security transaction if engaged in by a United
States person; or
``(IV) in a derivative of a security described
under subclause (I), (II), or (III);
``(iv) any ancillary transaction undertaken by a
financial institution (as defined in section 5312 of title
31, United States Code);
``(v) the acquisition by a United States person of the
equity or other interest owned or held by a covered foreign
person in an entity or assets located outside of a country
of concern in which the United States person is acquiring
the totality of the interest in the entity held by the
covered foreign person;
``(vi) an intracompany transfer of funds, as defined in
regulations prescribed in accordance with this title, from
a United States parent company to a subsidiary located in a
country of concern or a transaction that, but for this
clause, would be a covered national security transaction
between a United States person and its controlled foreign
person that supports operations that are not covered
national security transactions or that maintains covered
national security transactions that the controlled foreign
person was engaged in prior to the effective date of the
regulations implementing this title;
``(vii) a transaction secondary to a covered national
security transaction, including--
``(I) contractual arrangements (not including
contractual arrangements for technology transfer or
technical knowledge transfer) or the procurement of
material inputs for any covered national security
transaction (such as raw materials);
``(II) bank lending;
``(III) the processing, clearing, or sending of
payments by a bank;
``(IV) underwriting services including, but not
limited to, the temporary acquisition of an equity
interest for the sole purpose of facilitating
underwriting services;
``(V) debt rating services;
``(VI) prime brokerage;
``(VII) global custody;
``(VIII) equity research or analysis; or
``(IX) other similar services;
``(viii) any ordinary or administrative business
transaction as may be defined in such regulations; or
``(ix) any transaction completed before the date of the
enactment of this title.
``(C) Ancillary transaction defined.--In this paragraph,
the term `ancillary transaction' means, subject to regulations
prescribed by the Secretary--
``(i) the processing, settling, clearing, or sending of
payments and cash transactions;
``(ii) underwriting services, including the temporary
acquisition of an equity interest for the sole purpose of
facilitating underwriting services;
``(iii) credit rating services; and
``(iv) other services ordinarily incident to and part
of the provision of financial services, such as opening
deposit accounts, direct custody services, foreign exchange
services, remittances services, and safe deposit services.
``(5) Foreign person.--The term `foreign person' has the
meaning given that term in regulations prescribed in accordance
with this title.
``(6) Knowledge; know.--The terms `knowledge' or `know' mean--
``(A) actual knowledge that a fact or circumstance exists
or is substantially certain to occur;
``(B) an awareness of a high probability of a fact or
circumstance's existence or future occurrence; or
``(C) reason to know of a fact or circumstance's existence.
``(7) Notifiable technology.--
``(A) In general.--Subject to the regulations prescribed in
accordance with this title, the term `notifiable technology'
means a technology within the following areas not already
captured by the technical thresholds specified by any
regulations issued in accordance with section 801:
``(i) Semiconductor technology and microelectronics.
``(ii) Artificial intelligence systems.
``(iii) Quantum information technologies.
``(iv) High-performance computing and supercomputing.
``(v) Hypersonic systems.
``(B) Updates.--The Secretary, in consultation with the
appropriate congressional committees and subject to notice and
comment in accordance with subchapter II of chapter 5 and
chapter 7 of title 5, United States Code, and not subject to
the requirements of section 709, may prescribe regulations in
accordance with this title to--
``(i) define the technical parameters of technologies
described in subparagraph (A),as reasonably needed for
national security purposes; or
``(ii) to add and define categories to the list in
subparagraph (A) that enable the military, intelligence,
surveillance, or cyber-enabled capabilities of a country of
concern.
``(8) Party.--The term `party', with respect to a covered
national security transaction, has the meaning given that term in
regulations prescribed in accordance with this title.
``(9) Person.--The term `person' includes an individual,
corporation, partnership, association, or any other organized group
of persons, or legal successor or representative thereof, or any
State or local government or agency thereof.
``(10) Prohibited technology.--
``(A) In general.--Subject to the regulations prescribed in
accordance with this title, the term `prohibited technology'
means a technology within the following areas, as specified by
the regulations:
``(i) Advanced semiconductor technology and
microelectronics.
``(ii) Artificial intelligence systems.
``(iii) Quantum information technologies.
``(iv) High-performance computing and supercomputing.
``(v) Hypersonic systems.
``(B) Updates.--The Secretary, in consultation with the
appropriate congressional committees and subject to notice and
comment in accordance with subchapter II of chapter 5 and
chapter 7 of title 5, United States Code, and not subject to
the requirements of section 709, may prescribe regulations in
accordance with this title to--
``(i) define the technical parameters of technologies
described in subparagraph (A), as reasonably needed for
national security purposes; or
``(ii) to add and define categories to the list in
subparagraph (A) that enable the military, intelligence,
surveillance, or cyber-enabled capabilities of a country of
concern.
``(11) Secretary.--Except as otherwise provided, the term
`Secretary' means the Secretary of the Treasury.
``(12) United states person.--The term `United States person'
means--
``(A) any United States citizen or an alien lawfully
admitted for permanent residence to the United States;
``(B) an entity organized under the laws of the United
States or of any jurisdiction within the United States
(including any foreign branch of such an entity); or
``(C) any person in the United States.''.