FACT Act

II 117TH CONGRESS 1ST SESSION S. 1048 To require disclosure by Federal contractors of contracts with Chinese entities, and for other purposes. IN THE SENATE OF THE UNITED STATES MARCH 25, 2021 Mr. RUBIO introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs A BILL To require disclosure by Federal contractors of contracts with Chinese entities, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Federal Acquisition 4 and Contracting Transparency Act of 2021’’ or ‘‘FACT 5 Act’’. 6 VerDate Sep 11 2014 18:06 Apr 22, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1048.IS S1048 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 1048 IS SEC. 2. REQUIREMENT TO DISCLOSE CONTRACTS AND TIES 1 WITH PEOPLE’S REPUBLIC OF CHINA ENTI- 2 TIES. 3 Not later than 180 days after the date of the enact- 4 ment of this Act, the Federal Acquisition Regulatory 5 Council shall amend the Federal Acquisition Regulation 6 to require that a contractor shall, as a condition for being 7 awarded a contract for the procurement of goods or serv- 8 ices, disclose covered information related to any contracts 9 or other relevant commercial ties the contractor, first tier 10 subcontractor, or any related entity has that are in effect 11 at the time of contract award, or has had within the pre- 12 vious three years that are no longer in effect, with a cov- 13 ered entity. The contractor shall update such disclosure 14 not later than 30 days after the contractor, first tier sub- 15 contractor, or any related entity enters into or renews a 16 contract or other relevant commercial ties with a covered 17 entity. 18 SEC. 3. DATABASE OF FEDERAL CONTRACTOR CONTRACTS 19 WITH CHINESE ENTITIES. 20 Not later than 180 days after the date of the enact- 21 ment of this Act, the Administrator of General Services 22 shall establish and maintain a public database containing 23 the information about contracts with covered entities dis- 24 closed pursuant to section 2. 25 VerDate Sep 11 2014 18:06 Apr 22, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1048.IS S1048 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 1048 IS SEC. 4. DEFINITIONS. 1 In this Act: 2 (1) COVERED ENTITY.—The term ‘‘covered en- 3 tity’’ means— 4 (A) the Government of the People’s Repub- 5 lic of China; 6 (B) the Chinese Communist Party (CCP); 7 (C) the Chinese military; 8 (D) an entity owned, directed, controlled, 9 financed, or influenced directly or indirectly by 10 the Government of the People’s Republic of 11 China, the CCP, or the Chinese military, in- 12 cluding any entity for which the Government of 13 the People’s Republic of China, the CCP, or the 14 Chinese military has the ability, through owner- 15 ship of a majority or a dominant minority of 16 the total outstanding voting interest in an enti- 17 ty, board representation, proxy voting, a special 18 share, contractual arrangements, formal or in- 19 formal arrangements to act in concert, or other 20 means, to determine, direct, or decide for an 21 entity an important matter; 22 (E) a parent, subsidiary, or affiliate of an 23 entity described in subparagraph (D); and 24 (F) an entity substantively involved in Peo- 25 ple’s Republic of China economic and industrial 26 VerDate Sep 11 2014 18:06 Apr 22, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1048.IS S1048 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 1048 IS policies or military-civil fusion, including by ac- 1 cepting funding, performing services, or receiv- 2 ing subsidies, or with responsibilities for over- 3 seeing economic development projects, including 4 Made in China 2025 and the Belt and Road 5 Initiative. 6 (2) COVERED INFORMATION.—The term ‘‘cov- 7 ered information’’ means— 8 (A) the name of the covered entity; 9 (B) the relationship of the covered entity 10 to the Government of the People’s Republic of 11 China, the Chinese Communist Party, or the 12 Chinese military; 13 (C) the general terms of the contract; 14 (D) the date the contract was entered into; 15 and 16 (E) the duration of the contract. 17 (3) RELATED ENTITY.—The term ‘‘related enti- 18 ty’’ means, with respect to a contractor or first tier 19 subcontractor, a parent, subsidiary, affiliate, or 20 other entity controlled by the contractor or first tier 21 subcontractor. 22 Æ VerDate Sep 11 2014 18:06 Apr 22, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S1048.IS S1048 pamtmann on DSKBC07HB2PROD with BILLS