Investing in American Defense Technologies Act of 2022
This bill requires the Department of Defense (DOD) to implement a five-year pilot program to accelerate the development of advanced technology for national security by creating incentives for trusted private capital to invest in domestic small businesses or nontraditional businesses that are developing technology that DOD considers necessary to support the modernization of DOD and national security priorities. DOD must brief Congress on the implementation and outcomes of the pilot program.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8470 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 8470
To establish a public-private partnership technology investment pilot
program.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 21, 2022
Ms. Houlahan (for herself and Mr. Fallon) introduced the following
bill; which was referred to the Committee on Armed Services
_______________________________________________________________________
A BILL
To establish a public-private partnership technology investment pilot
program.
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 ``Investing in American Defense
Technologies Act of 2022''.
SEC. 2. PUBLIC-PRIVATE PARTNERSHIP TECHNOLOGY INVESTMENT PILOT PROGRAM.
(a) Establishment.--
(1) In general.--Subject to the availability of
appropriations for this purpose, the Secretary of Defense shall
carry out a pilot program, for no less than five years, to
accelerate the development of advanced technology for national
security by creating incentives for trusted private capital to
invest in domestic small businesses or nontraditional
businesses that are developing technology that the Secretary
considers necessary to support the modernization of the
Department of Defense and national security priorities.
(2) Purposes.--The purposes of the program required by
paragraph (1) are as follows:
(A) To promote the global superiority of the United
States in advanced technologies of importance to
national security, which are not adequately supported
by private sector investment.
(B) To accelerate the transition and deployment of
advanced technologies into the Armed Forces.
(C) To support Department investment through a loan
guarantee to accelerate acquisition, procurement, and
the transition of advance technology described in
paragraph (1), as appropriate.
(b) Public-Private Partnership.--
(1) In general.--In carrying out subsection (a), the
Secretary shall enter into a public-private partnership with
one or more persons using criteria that the Secretary shall
establish for purposes of this subsection.
(2) Criteria.--The criteria established under paragraph (1)
for entering into a public-private partnership with a person
shall include the following:
(A) The person shall be independent.
(B) The person shall be free from foreign
oversight, control, influence, or beneficial ownership.
(C) The person shall have commercial private
capital fund experience with technology development in
the defense and commercial sectors.
(D) The person shall be eligible for access to
classified information (as defined in the procedures
established pursuant to section 801(a) of the National
Security Act of 1947 (50 U.S.C. 3161(a))).
(3) Operating agreement.--The Secretary and a person with
whom the Secretary enters a partnership under paragraph (1)
shall enter into an operating agreement that sets forth the
roles, responsibilities, authorities, reporting requirements,
and governance framework for the partnership and its
operations.
(c) Investment and Raising of Capital.--
(1) Investment.--
(A) In general.--Pursuant to a public-private
partnership entered into under subsection (b), a person
with whom the Secretary has entered the partnership
shall invest equity in domestic small businesses or
nontraditional businesses consistent with subsection
(a).
(B) Selection criteria.--Investments under
subparagraph (A) shall be selected based on their
technical merit, economic considerations, and ability
to support modernization goals of the Department.
(2) Use of trusted capital sources.--Pursuant to a public-
private partnership entered into under subsection (b), a person
described in paragraph (1)(A) shall, in order to support
investment of equity under paragraph (1), raise private capital
only from trusted capital sources.
(3) Sole authority.--A person described in paragraph (1)(A)
shall have sole authority to raise funds for, operate, manage,
and invest capital raised under such subparagraph.
(4) Loan guarantee.--
(A) In general.--The Secretary shall provide a loan
guarantee for up to 80 percent of the principal capital
amount of the funds raised under paragraph (2),
pursuant to the public-private partnership entered into
under subsection (b), with investment of equity that
qualifies under paragraph (1) and consistent with the
purposes set forth under subsection (a)(2).
(B) Subject to operating agreement.--The loan
guarantee under subparagraph (A) shall be subject to
the operating agreement entered into under subsection
(b)(3).
(C) Limits.--Obligations incurred by the Secretary
under this paragraph shall be subject to the
availability of appropriations.
(d) Briefings.--
(1) Implementation.--Not later than one year after the date
of the enactment of this section, the Secretary shall provide
to the congressional defense committees a briefing on the
implementation of this section.
(2) Assessment of outcomes and feasibility.--Not later than
five years after the date of the enactment of this section, the
Secretary shall provide the congressional defense committees a
briefing on the outcomes of the pilot program and the
feasibility and advisability of making it permanent.
(e) Definitions.--In this section:
(1) The term ``congressional defense committees'' has the
meaning given the term in section 101(a)(16) of title 10,
United States Code.
(2) The term ``domestic business'' has the meaning given
the term ``U.S. business'' in section 800.252 of title 31, Code
of Federal Regulations, or successor regulation.
(3) The term ``domestic small businesses or nontraditional
businesses'' means--
(A) a small businesses that is a domestic business;
or
(B) a nontraditional business that is a domestic
business.
(4) The term ``free from foreign oversight, control,
influence, or beneficial ownership'', with respect to a person,
means a person who has not raised and managed capital from a
person or entity that is not trusted and is otherwise free from
foreign oversight, control, influence, or beneficial ownership.
(5) The term ``independent'', with respect to a person,
means a person who lacks a conflict of interest accomplished by
not having entity or manager affiliation or ownership with an
existing fund.
(6) The term ``nontraditional business'' has the meaning
given the term ``nontraditional defense contractors'' in
section 3014 of title 10, United States Code.
(7) The term ``small business'' has the meaning given the
term ``small business concern'' in section 3 of the Small
Business Act (15 U.S.C. 632).
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Armed Services.
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