119-hr2551

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2551 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 2551

 To amend title 10, United States Code, to establish requirements 
 relating to long-term concessions agreements between the Secretary of 
 Defense and certain retailers, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 April 1, 2025

 Mr. Harrigan introduced the following bill; which was referred to the 
 Committee on Armed Services

_______________________________________________________________________

 A BILL

 To amend title 10, United States Code, to establish requirements 
 relating to long-term concessions agreements between the Secretary of 
 Defense and certain retailers, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Military Installation Retail 
Security Act of 2025''.

SEC. 2. REQUIREMENTS RELATING TO LONG-TERM CONCESSIONS AGREEMENTS WITH 
 CERTAIN RETAILERS.

    (a) In General.--Chapter 363 of title 10, United States Code, is 
amended by adding at the end the following new section:
``

Sec. 4664. Requirements relating to long-term concessions agreements 
 with certain retailers
 ``

    (a) Prohibition on Contracting With Certain Retailers.--
 ``

    (1) In general.--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.
 ``

    (2) Waiver.--The Secretary may waive the requirements of 
 paragraph

    (1) if the Secretary determines that--
 ``
        (A) the goods or services to be provided by the 
 retailer are vital for the welfare and morale of 
 members of the Armed Forces and no reasonable 
 alternatives exist; and
 ``
        (B) the Secretary has implemented adequate 
 measures to mitigate any potential national security 
 risks of the retailer.
 ``

    (3) Report.--Not later than 30 days after each use of the 
 waiver authority under paragraph

    (2) , the Secretary shall 
 submit to the Committees on Armed Services of the House of 
 Representatives and Senate a report including a justification 
 for the use of such authority and a description of any risk 
 mitigation strategies described in paragraph

    (2)
        (B) .
 ``

    (4) Termination.--With respect to a retailer that has 
 misrepresented the ownership and control of such retailer for 
 the award of a long-term concessions agreement, the Secretary 
 of Defense may terminate such agreement.
 ``

    (5) Applicability.--Paragraph

    (1) shall apply with 
 respect to a long-term concessions agreement entered into on or 
 after the date of the enactment of this section.
 ``

    (b) Covered Retailers.--
 ``

    (1) In general.--The Secretary of Defense may not permit 
 a covered retailer controlled by a covered nation to operate or 
 conduct business through a physical location on a covered 
 military installation, unless such covered retailer has 
 received an approval determination under paragraph

    (4) .
 ``

    (2) Notice.--Not later than 30 days after the date of the 
 enactment of this section, a covered retailer--
 ``
        (A) shall submit to the Committee on Foreign 
 Investment in the United States (in this section 
 referred to as the `Committee') a notice that includes 
 any direct or indirect relationships between the 
 covered retailer (including any subsidiaries or parent 
 companies of such covered retailer) and any covered 
 nation; and
 ``
        (B) may not operate or conduct business through a 
 physical location on a covered military installation 
 unless the Committee submits a determination approving 
 such notice in accordance with paragraph

    (3) .
 ``

    (3) Investigation.--The Committee shall conduct an 
 investigation of the effects of a notice submitted under 
 paragraph

    (2) on the national security of the United States, 
 including an assessment of any direct or indirect relationships 
 between the covered retailer (including any subsidiaries or 
 parent companies of such covered retailer) and any covered 
 nation.
 ``

    (4) Determination.--Not later than 180 days after 
 completing an investigation under paragraph

    (3) , the Committee 
 shall submit to the Secretary of Defense a determination 
 approving or disapproving the notice submitted under paragraph

    (2) .
 ``

    (5) Compliance.--
 ``
        (A) In general.--A covered retailer that receives 
 an approval under paragraph

    (4) shall submit annually 
 to the Committee disclosures regarding any change in 
 the ownership structure that may affect whether or not 
 the covered retailer is controlled by a covered nation.
 ``
        (B) Failure to comply.--The Secretary of Defense 
 shall immediately terminate a long-term concession 
 agreement with a covered retailer if the Secretary 
 determines such covered retailer has failed to comply 
 with the requirements of this subsection.
 ``
            (c) Assessment of Covered Retailers.--
 ``

    (1) 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 with a 
 covered retailer that permits the covered retailer to operate 
 or conduct business through a physical location on a covered 
 military installation to assess any direct or indirect 
 relationships between the retailer (including any subsidiaries 
 or parent companies of such covered retailer) and any covered 
 nation.
 ``

    (2) Termination.--Not later than 30 days after making a 
 determination that a covered retailer is controlled by a 
 covered nation based on an assessment described in subsection

    (a) or a determination made under subsection

    (b) , the Secretary 
 of Defense shall terminate any long-term concessions agreement 
 with the covered retailer.
 ``
            (d) === Definitions. ===
-In this section:
 ``

    (1) The term `controlled by a covered nation' means, with 
 respect to a retailer--
 ``
        (A) that the retailer is organized under the laws 
 of a covered nation or any jurisdiction within a 
 covered nation;
 ``
        (B) that a covered nation owns 20 percent or more 
 of the shares of the retailer; or
 ``
            (C) that the retailer is subject to the direct or 
 control of a covered nation.
 ``

    (2) The term `covered military installation' means a 
 military installation (as defined in 

section 2801 of this 
 title) located in the United States.
 ``

    (3) The term `covered nation' has the meaning given in 
 

section 4872 of this title.
 ``

    (4) The term `covered retailer' means a retailer that is 
 performing a long-term concessions agreement on or before the 
 date of the enactment of this Act.
 ``

    (5) The term `long-term concessions agreement' means a 
 contract, subcontract (at any tier), 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--
 ``
        (A) the Secretary of Defense or a Secretary of a 
 military department and a person, including a 
 nonappropriated fund instrumentality; or
 ``
        (B) a person and a nonappropriated fund 
 instrumentality.
 ``

    (6) The term `retailer' means--
 ``
        (A) a nonappropriated fund instrumentality that 
 operates or seeks to operate a business through a 
 physical location on a covered military installation; 
 and
 ``
        (B) any other person that operates or seeks to 
 operate a business on a covered military installation 
 under a contract, subcontract (at any tier), or other 
 agreement, including a lease agreement or licensing 
 agreement, with--
 ``
            (i) a nonappropriated fund 
 instrumentality;
 ``
            (ii) the Secretary of Defense; or
 ``
            (iii) a Secretary of a military 
 department.''.

    (b) Assessment of Covered Retailers.--

    (1) In general.--Not later than 180 days after the date of 
 the enactment of this Act, the Secretary of Defense shall 
 review each long-term concessions agreement with a covered 
 retailer that permits the covered retailer to operate or 
 conduct business through a physical location on a covered 
 military installation to assess any direct or indirect 
 relationships between the retailer (including any subsidiaries 
 or parent companies of such covered retailer) and any covered 
 nation.

    (2) Termination.--Not later than one year after making a 
 determination that a covered retailer is controlled by a 
 covered nation based on an assessment described in subsection

    (a) , the Secretary of Defense shall terminate any long-term 
 concessions agreement with the covered retailer.

    (3) === Definitions. ===
-In this section, the terms ``covered 
 nation'', ``covered retailer'', and ``long-term concessions 
 agreement'' have the meanings given in 

section 4664 of title 
 10, United States Code, as added by this section.
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