
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC2536]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
 CHAPTER 148--NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE, DEFENSE 
                  REINVESTMENT, AND DEFENSE CONVERSION
 
    SUBCHAPTER V--MISCELLANEOUS TECHNOLOGY BASE POLICIES AND PROGRAMS
 
Sec. 2536. Award of certain contracts to entities controlled by 
        a foreign government: prohibition
        
    (a) In General.--A Department of Defense contract or Department of 
Energy contract under a national security program may not be awarded to 
an entity controlled by a foreign government if it is necessary for that 
entity to be given access to information in a proscribed category of 
information in order to perform the contract.
    (b) Waiver Authority.--(1) The Secretary concerned may waive the 
application of subsection (a) to a contract award if--
        (A) the Secretary concerned determines that the waiver is 
    essential to the national security interests of the United States; 
    or
        (B) in the case of a contract awarded for environmental 
    restoration, remediation, or waste management at a Department of 
    Defense or Department of Energy facility--
            (i) the Secretary concerned determines that the waiver will 
        advance the environmental restoration, remediation, or waste 
        management objectives of the department concerned and will not 
        harm the national security interests of the United States; and
            (ii) the entity to which the contract is awarded is 
        controlled by a foreign government with which the Secretary 
        concerned is authorized to exchange Restricted Data under 
        section 144 c. of the Atomic Energy Act of 1954 (42 U.S.C. 
        2164(c)).

    (2) The Secretary concerned shall notify Congress of any decision to 
grant a waiver under paragraph (1)(B) with respect to a contract. The 
contract may be awarded only after the end of the 45-day period 
beginning on the date the notification is received by the committees.
    (c) Definitions.--In this section:
        (1) The term ``entity controlled by a foreign government'' 
    includes--
            (A) any domestic or foreign organization or corporation that 
        is effectively owned or controlled by a foreign government; and
            (B) any individual acting on behalf of a foreign government,

    as determined by the Secretary concerned. Such term does not include 
    an organization or corporation that is owned, but is not controlled, 
    either directly or indirectly, by a foreign government if the 
    ownership of that organization or corporation by that foreign 
    government was effective before October 23, 1992.
        (2) The term ``proscribed category of information'' means a 
    category of information that--
            (A) with respect to Department of Defense contracts--
                (i) includes special access information;
                (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
                (iii) is defined in regulations prescribed by the 
            Secretary of Defense for the purposes of this section; and

            (B) with respect to Department of Energy contracts--
                (i) is determined by the Secretary of Energy to include 
            information described in subparagraph (A)(ii); and
                (ii) is defined in regulations prescribed by the 
            Secretary of Energy for the purposes of this section.

        (3) The term ``Secretary concerned'' means--
            (A) the Secretary of Defense, with respect to Department of 
        Defense contracts; and
            (B) the Secretary of Energy, with respect to Department of 
        Energy contracts.

(Added Pub. L. 102-484, div. A, title VIII, Sec. 836(a)(1), Oct. 23, 
1992, 106 Stat. 2462; amended Pub. L. 103-35, title II, Sec. 201(d)(4), 
May 31, 1993, 107 Stat. 99; Pub. L. 103-160, div. A, title VIII, 
Sec. 842(a)-(c)(1), Nov. 30, 1993, 107 Stat. 1719; Pub. L. 104-201, div. 
A, title VIII, Sec. 828, Sept. 23, 1996, 110 Stat. 2611.)


                               Amendments

    1996--Subsec. (b). Pub. L. 104-201 amended subsec. (b) generally. 
Prior to amendment, subsec. (b) read as follows: ``Waiver Authority.--
The Secretary concerned may waive the application of subsection (a) to a 
contract award if the Secretary concerned determines that the waiver is 
essential to the national security interests of the United States.''
    1993--Pub. L. 103-160, Sec. 842(c)(1), substituted ``Award of 
certain contracts to entities controlled by a foreign government: 
prohibition'' for ``Prohibition on award of certain Department of 
Defense and Department of Energy contracts to companies owned by an 
entity controlled by a foreign government.'' as section catchline.
    Pub. L. 103-35 struck out period at end of section catchline.
    Subsec. (a). Pub. L. 103-160, Sec. 842(a), struck out ``a company 
owned by'' after ``awarded to'' and substituted ``that entity'' for 
``that company''.
    Subsec. (c)(1). Pub. L. 103-160, Sec. 842(b), inserted at end ``Such 
term does not include an organization or corporation that is owned, but 
is not controlled, either directly or indirectly, by a foreign 
government if the ownership of that organization or corporation by that 
foreign government was effective before October 23, 1992.''


                    Effective Date of 1992 Amendment

    Section 836(b) of Pub. L. 102-484 provided that: ``Section 2536 of 
title 10, United States Code, as added by subsection (a), shall apply 
with respect to contracts entered into after the expiration of the 90-
day period beginning on the date of the enactment of this Act [Oct. 23, 
1992].''
