119-s1456

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1456 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 1456

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

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 April 10, 2025

Mr. Budd (for himself, Mr. Cotton, and Mr. Scott of Florida) introduced 
the following bill; which was read twice and 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 retailers controlled by covered nations, 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. PROHIBITION ON LONG-TERM CONCESSIONS AGREEMENTS WITH RETAILERS 
 CONTROLLED BY COVERED NATIONS.

 Chapter 363 of title 10, United States Code, is amended by adding 
at the end the following new section:
``

Sec. 4664. Prohibition on long-term concessions agreements with 
 retailers controlled by covered nations
 ``

    (a) Prohibition on Future Contracts.--The Secretary of Defense 
may not, on or after the date of the enactment of this section, renew, 
extend, or enter into a long-term concessions agreement with a retailer 
that is controlled by a covered nation to permit the retailer to 
operate or conduct business through a physical location on a covered 
military installation unless--
 ``

    (1) the Secretary waives the prohibition with respect to 
 the retailer under subsection
            (c) ; or
 ``

    (2) the Committee on Foreign Investment in the United 
 States (in this section referred to as the `Committee') 
 determines under subsection
            (d) that the operation or conduct 
 of such business by the retailer will not detrimentally affect 
 the national security of the United States.
 ``

    (b) Treatment of Existing Contracts.--
 ``

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

    (2) Termination.--If the Secretary determines under 
 paragraph

    (1) that a covered retailer is controlled by a 
 covered nation, the Secretary shall terminate the long-term 
 concessions agreement with the retailer not later than 30 days 
 after making that determination unless--
 ``
        (A) the Secretary waives the termination of the 
 agreement under subsection
            (c) ; or
 ``
        (B) the Committee determines under subsection
            (d) that the operation or conduct by the retailer of 
 business through a physical location on a covered 
 military installation will not detrimentally affect the 
 national security of the United States.
 ``
            (c) Waiver.--
 ``

    (1) In general.--The Secretary may waive the prohibition 
 under subsection

    (a) with respect to a retailer or the 
 requirement to terminate an agreement under subsection

    (b) with 
 a retailer 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 posed by the retailer.
 ``

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

    (1) , the Secretary shall 
 submit to the Committees on Armed Services of the Senate and 
 the House of Representatives a report that includes a 
 justification for the use of such authority and a description 
 of any risk mitigation measures implemented under paragraph

    (1)
        (B) .
 ``
            (d) Review by Committee on Foreign Investment in the United 
States of Certain Retailers Controlled by Covered Nations.--
 ``

    (1) Notice required.--Not later than 30 days after the 
 date of the enactment of this section, a covered retailer shall 
 submit to the Committee a notice that includes a description of 
 any direct or indirect relationships between the retailer 
 (including any subsidiaries or parent companies of the 
 retailer) and any covered nation.
 ``

    (2) Investigation.--The Committee shall conduct an 
 investigation of the effects on the national security of the 
 United States of each covered retailer operating or conducting 
 business through a physical location on a covered military 
 installation, including an assessment of any direct or indirect 
 relationships between the retailer (including any subsidiaries 
 or parent companies of the retailer) and any covered nation.
 ``

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

    (2) with respect to 
 a covered retailer, the Committee shall submit to the Secretary 
 a determination with respect to whether the retailer operating 
 or conducting business through a physical location on a covered 
 military installation will detrimentally affect the national 
 security of the United States.
 ``

    (4) Annual reports.--A covered retailer that receives a 
 determination under paragraph

    (3) that the operation or conduct 
 by the retailer of business through a physical location on a 
 covered military installation will not detrimentally affect the 
 national security of the United States shall submit to the 
 Committee, not less frequently than annually, disclosures 
 regarding any change in the ownership structure of the retailer 
 that may affect whether or not the covered retailer is 
 controlled by a covered nation.
 ``

    (e) Termination.--The Secretary shall terminate a long-term 
concession agreement with a covered retailer if the Secretary 
determines that the retailer--
 ``

    (1) has failed to comply with the requirements of 
 subsection
            (d) ; or
 ``

    (2) has misrepresented the ownership or control of the 
 retailer in order to evade the prohibition under subsection

    (a) or the requirement to terminate an agreement under subsection

    (b) .
 ``

    (f) 

=== Definitions. ===
-In this section:
 ``

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

    (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 `nonappropriated fund instrumentality' has 
 the meaning given that term in 

section 2488 of this title.
 ``

    (7) 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; 
 or
 ``
        (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.''.
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