Prohibition on Contracting With Certain Retailers .—
Except as provided by subsections (b) and (c), the Secretary of Defense may not renew, extend, or enter into a long-term concessions agreement with a retailer that is controlled by a covered nation to permit such retailer to operate or conduct business through a physical location on a covered military installation.
Waiver .—
The Secretary may waive the requirements of subsection (a) with respect to a long-term concessions agreement with a retailer if the Secretary determines that—
the goods or services to be provided by the retailer under such long-term concessions agreement are vital for the welfare and morale of members of the Armed Forces and no reasonable alternatives exist; and
the Secretary has implemented adequate measures to mitigate any potential national security risks of the retailer.
Not later than 30 days after each use of the waiver authority under paragraph (1), the Secretary shall provide to the Committees on Armed Services of the House of Representatives and Senate a justification for such waiver and a description of any risk mitigation strategies described in paragraph (1)(B).
Exceptions .—
Subsection (a) does not apply with respect to a long-term concessions agreement with a retailer if—
50 U.S.C. 4565 such retailer has received a determination from the Committee on Foreign Investment in the United States (in this section referred to as the “Committee”) that there are no unresolved national security concerns with respect to the retailer in connection to a matter submitted to the Committee and which the Committee concluded all action pursuant to section 721 of the Defense Production Act of 1950 (); or
such retailer is organized under the laws of the United States or any jurisdiction of the United States and is operated by citizens of the United States and the products offered for sale by such retailer on the covered military installation under such long-term concessions agreement are not produced in a covered nation.
Definitions .—
In this section:
The term “controlled by a covered nation” means, with respect to a retailer—
that the retailer is organized under the laws of a covered nation or any jurisdiction within a covered nation;
that the government of a covered nation—
owns 50 percent or more of the shares of the retailer; or
otherwise owns the controlling interest in such retailer; or
that the retailer is subject to the direct control of the government of a covered nation.
section 2801 of this title The term “covered military installation” means a military installation (as defined in ) located in the United States.
section 4872 of this title The term “covered nation” has the meaning given in .
The term “long-term concessions agreement” means a contract, subcontract, or other agreement, including a lease agreement or licensing agreement, to operate a business through a physical location on a covered military installation entered into by—
the Secretary of Defense or a Secretary of a military department and a person; or
a person and a nonappropriated fund instrumentality.
The term “retailer” means a person that operates or seeks to operate a business providing goods or services on a covered military installation under a contract, subcontract, or other agreement, including a lease agreement or licensing agreement, with—
a nonappropriated fund instrumentality;
the Secretary of Defense; or
a Secretary of a military department.
Pub. L. 119–60, div. A, title VIII, § 841(b)139 Stat. 972(Added , , .)
Statutory Notes and Related Subsidiaries
Requirements Relating to Long-Term Concessions Agreements With Certain Retailers
Pub. L. 119–60, div. A, title VIII, § 841(a)139 Stat. 971
Assessment of Established Agreements.—
In general .—
Not later than 180 days after the date of the enactment of this section [], the Secretary of Defense shall review each long-term concessions agreement to identify any such agreements with a retailer that is controlled by a covered nation that permit such retailer to operate or conduct business through a physical location on a covered military installation.
Termination of certain concessions agreements.—
In general .—
section 4664(b) of title 10Not later than 30 days after making the determinations described in subparagraph (B) with respect to a long-term concessions agreement with a retailer, the Secretary of Defense shall terminate such long-term concessions agreement unless the Secretary waives this paragraph with respect to such retailer in accordance with , United States Code, as added by this section.
Determinations described .—
The determinations described in this subparagraph are, with respect to a long-term concessions agreement—
a determination that the retailer that is a party to such long-term concessions agreement is controlled by a covered nation based on an assessment required by paragraph (1); and
section 4664(c) of title 10 a determination that an exception under , United States Code, as added by this section, would not apply with respect to such long-term concessions agreement with such retailer if such retailer entered into such long-term concessions agreement on or after the date of the enactment of this section.
Briefing .—
section 4664 of title 10Upon completing the review required by paragraph (1), the Secretary of Defense shall provide the Committees on Armed Services of the House of Representatives and Senate a briefing on the findings of such review and a summary of the actions taken to implement the requirements of , United States Code, as added by this section.
Controlled by a covered nation; covered military installation; long-term concessions agreement; retailer defined .—
section 4664 of title 10The terms ‘controlled by a covered nation’, ‘covered military installation’, ‘long-term concessions agreement’, and ‘retailer’ have the meanings given such terms, respectively, in , United States Code, as added by this section.”