{"identifier":"/us/usc/t50/s4566","title":50,"num":"\u00a7\u202f4566.","heading":"Prohibition on purchase of United States defense contractors by entities controlled by foreign governments","text":"\u00a7\u202f4566.\nProhibition on purchase of United States defense contractors by entities controlled by foreign governments\n(a)\nIn general\nNo entity controlled by a foreign government may merge with, acquire, or take over a company engaged in interstate commerce in the United States that\u2014\n(1) is performing a Department of Defense contract, or a Department of Energy contract under a national security program, that cannot be performed satisfactorily unless that company is given access to information in a proscribed category of information; or\n(2) during the previous fiscal year, was awarded\u2014\n(A) Department of Defense prime contracts in an aggregate amount in excess of $500,000,000; or\n(B) Department of Energy prime contracts under national security programs in an aggregate amount in excess of $500,000,000.\n(b)\nInapplicability to certain cases\nThe limitation in subsection (a) shall not apply if a merger, acquisition, or takeover is not suspended or prohibited pursuant to\nsection 4565 of this title\n(c)\nDefinitions\nIn this section:\n(1) The term \u201centity controlled by a foreign government\u201d includes\u2014\n(A) any domestic or foreign organization or corporation that is effectively owned or controlled by a foreign government; and\n(B) any individual acting on behalf of a foreign government,\nas determined by the President.\n(2) The term \u201cproscribed category of information\u201d means a category of information that\u2014\n(A) with respect to Department of Defense contracts\u2014\n(i) includes special access information;\n(ii) is determined by the Secretary of Defense to include information the disclosure of which to an entity controlled by a foreign government is not in the national security interests of the United States; and\n(iii) is defined in regulations prescribed by the Secretary of Defense for the purposes of this section; and\n(B) with respect to Department of Energy contracts\u2014\n(i) is determined by the Secretary of Energy to include information described in subparagraph (A)(ii); and\n(ii) is defined in regulations prescribed by the Secretary of Energy for the purposes of this section.","url":"https://projectusc.org/usc/t50/s4566.html","content":[{"t":"sec","id":"/us/usc/t50/s4566","children":[{"t":"num","text":"\u00a7\u202f4566."},{"t":"heading","text":"Prohibition on purchase of United States defense contractors by entities controlled by foreign governments"},{"t":"subsec","id":"/us/usc/t50/s4566/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"No entity controlled by a foreign government may merge with, acquire, or take over a company engaged in interstate commerce in the United States that\u2014"},{"t":"para","id":"/us/usc/t50/s4566/a/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" is performing a Department of Defense contract, or a Department of Energy contract under a national security program, that cannot be performed satisfactorily unless that company is given access to information in a proscribed category of information; or","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t50/s4566/a/2","children":[{"t":"num","text":"(2)"},{"t":"chapeau","text":" during the previous fiscal year, was awarded\u2014"},{"t":"subpara","id":"/us/usc/t50/s4566/a/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" Department of Defense prime contracts in an aggregate amount in excess of $500,000,000; or","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t50/s4566/a/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" Department of Energy prime contracts under national security programs in an aggregate amount in excess of $500,000,000.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t50/s4566/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Inapplicability to certain cases"},{"t":"content","children":[{"t":"p","text":"The limitation in subsection (a) shall not apply if a merger, acquisition, or takeover is not suspended or prohibited pursuant to ","children":[{"t":"ref","text":"section 4565 of this title","href":"/us/usc/t50/s4565","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t50/s4566/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Definitions"},{"t":"chapeau","text":"In this section:"},{"t":"para","id":"/us/usc/t50/s4566/c/1","children":[{"t":"num","text":"(1)"},{"t":"chapeau","text":" The term \u201centity controlled by a foreign government\u201d includes\u2014"},{"t":"subpara","id":"/us/usc/t50/s4566/c/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" any domestic or foreign organization or corporation that is effectively owned or controlled by a foreign government; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t50/s4566/c/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" any individual acting on behalf of a foreign government,","tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"as determined by the President.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t50/s4566/c/2","children":[{"t":"num","text":"(2)"},{"t":"chapeau","text":" The term \u201cproscribed category of information\u201d means a category of information that\u2014"},{"t":"subpara","id":"/us/usc/t50/s4566/c/2/A","children":[{"t":"num","text":"(A)"},{"t":"chapeau","text":" with respect to Department of Defense contracts\u2014"},{"t":"clause","id":"/us/usc/t50/s4566/c/2/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" includes special access information;","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t50/s4566/c/2/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" is determined by the Secretary of Defense to include information the disclosure of which to an entity controlled by a foreign government is not in the national security interests of the United States; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t50/s4566/c/2/A/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" is defined in regulations prescribed by the Secretary of Defense for the purposes of this section; and","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t50/s4566/c/2/B","children":[{"t":"num","text":"(B)"},{"t":"chapeau","text":" with respect to Department of Energy contracts\u2014"},{"t":"clause","id":"/us/usc/t50/s4566/c/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" is determined by the Secretary of Energy to include information described in subparagraph (A)(ii); and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t50/s4566/c/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" is defined in regulations prescribed by the Secretary of Energy for the purposes of this section.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}