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