50 U.S.C. § 4582 — Notification on investments
submitted 76 years ago by Pub. L. 119-60 to r/title-50-WAR-AND-NATIONAL-DEFENSE · 485 words · no verdicts yet
This section addresses notification on investments. It sets the rules and duties stated in the section.
(a) Within 450 days after December 18, 2025, the Secretary must issue rules requiring a United States person*, or its controlled foreign entity, that knowingly completes a covered national security transaction* involving prohibited technology (unless the Secretary prohibited it under section 4581(a)) or notifiable technology to give the Secretary written notice within 30 days after completion. (b)(1) Within the same 450 days, the Secretary must issue public-notice-and-comment rules, consulting Commerce, State, and other relevant agencies. The rules are not subject to section 4559 and must revise, end, replace, revoke, or simplify the Outbound Investment Rule as needed and allow reasonable compliance time. (2) The Secretary should minimize affected parties’ compliance costs, complexity, and duplicate reports, choose the least burdensome effective approach, and prioritize transparency and stakeholder participation. (3) The Secretary bears the enforcement burden of proof under title 5, section 556(d). (4)(A) The Secretary must promptly check each notice for completeness. (B) If incomplete, the Secretary must promptly tell the submitting person and explain the material omissions. (5) The Secretary must create a process to identify covered transactions for which no notice was filed when information is reasonably available. (c) If the Secretary prohibits the transaction under section 4581, this section’s requirements do not apply to it.
Not later than 450 days after December 18, 2025, the Secretary shall issue regulations prescribed in accordance with subsection (b), to require a United States person* that itself or whose controlled foreign entity knowingly engages in a covered national security transaction* in a prohibited technology (unless the Secretary has exercised the authority provided by section 4581(a) of this title to prohibit knowingly engaging in such covered national security transaction) or a notifiable technology to submit to the Secretary a written notification of the transaction not later than 30 days after the completion date of the transaction.
Not later than 450 days after December 18, 2025, the Secretary, in consultation with the Secretary of Commerce, the Secretary of State, and, as appropriate, the heads of other relevant Federal departments and agencies, shall issue regulations to carry out this section subject to public notice and comment in accordance with subchapter II of chapter 5 and chapter 7 of title 5, and not subject to the requirements of section 4559 of this title. The regulations issued pursuant to this paragraph shall as necessary, amend, terminate, supersede, revoke, or streamline existing requirements in part 850 of title 31, Code of Federal Regulations (the Outbound Investment Rule) and shall provide a reasonable timeframe for compliance.
In issuing regulations under paragraph (1), the Secretary should balance the priority of protecting the national security interest of the United States while, to the extent practicable—
minimizing the cost and complexity of compliance for affected parties, including the duplication of reporting requirements under current regulation;
adopting the least burdensome alternative that achieves regulatory objectives; and
prioritizing transparency and stakeholder involvement in the process of issuing the rules.
In accordance with section 556(d) of title 5, in an enforcement action for a violation of the prohibition set forth in subsection (a), the burden of proof shall be upon the Secretary.
The Secretary shall, upon receipt of a notification under subsection (a), promptly inspect the notification for completeness.
If a notification submitted under subsection (a) is incomplete, the Secretary shall promptly inform the United States person that submits the notification that the notification is not complete and provide an explanation of relevant material respects in which the notification is not complete.
The Secretary shall establish a process to identify covered national security transactions in a prohibited technology or a notifiable technology for which—
a notification is not submitted to the Secretary under subsection (a); and
information is reasonably available.
If the Secretary prohibits a covered national security transaction in a prohibited technology under section 4581 of this title, the requirements of this section shall not apply with respect to the covered national security transaction.
Source credit: (Sept. 8, 1950, ch. 932, title VIII, § 802, as added Pub. L. 119–60, div. H, title LXXXV, § 8521, Dec. 18, 2025, 139 Stat. 1925.)
- 1950Enacted · Pub. L. 119-60 · 139 Stat. 1925
A history note hasn’t been published yet. The record shows enactment by Pub. L. 119-60 on 1950-09-08.
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