SEC. 1233. REVIEW OF SECURITY RISKS OF
PARTICIPATION BY DEFENSE CONTRACTORS IN CERTAIN SPACE ACTIVITIES
OF THE PEOPLE'S REPUBLIC OF CHINA.
(a) Review Required- The Secretary of Defense shall conduct a
review to determine whether there are any security risks
associated with participation by covered contractors in certain
space activities of the People's Republic of China.
(b) Matters to Be Included- The review required under subsection
(a) shall include, at a minimum, a review of the following:
Whether there have been any incidents with respect to which a
determination has been made that an improper disclosure of
covered information by a covered contractor has occurred
during the five-year period ending on the date of the
enactment of this Act.
(2) The increase, if any, in the number of covered contractors
expected to occur during the 5-year period beginning on the
date of the enactment of this Act.
(3) The extent to which the policies and procedures of the
Department of Defense are sufficient to protect against the
improper disclosure of covered information by a covered
contractor during the 5-year period beginning on the date of
the enactment of this Act.
(4) The Secretary's conclusions regarding awards of contracts
by the Department of Defense to covered contractors after the
date of the enactment of this Act.
(5) Any other matters that the Secretary determines to be
appropriate to include in the review.
Cooperation From Other Departments and Agencies- The Secretary
of State, the Director of National Intelligence, and the head of
any other United States Government department or agency shall
cooperate in a complete and timely manner to provide the
Secretary of Defense with data and other information necessary
for the Secretary of Defense to carry out the review required
under subsection (a).
GENERAL- Not later than March 1, 2009, the Secretary of
Defense shall submit to the congressional defense committees a
report on the review required under subsection (a).
(2) FORM- The report required under this subsection shall
include a summary in unclassified form to the maximum extent
Definitions- In this section:
CERTAIN SPACE ACTIVITIES OF THE PEOPLE'S REPUBLIC OF CHINA-
The term `certain space activities of the People's Republic of
the development or manufacture of satellites for launch from
the People's Republic of China; and
(B) the launch of satellites from the People's Republic of
COVERED CONTRACTOR- The term `covered contractor' means a
contractor of the Department of Defense, and any subcontractor
(at any tier) of the contractor, that--
has access to covered information; and
(B) participates, or is part of a joint venture that
participates, or whose parent, sister, subsidiary, or
affiliate company participates, in certain space activities
in the People's Republic of China.
COVERED INFORMATION- The term `covered information' means
classified information and sensitive controlled unclassified
information obtained under contracts (or subcontracts of such
contracts) of the Department of Defense.
SECTION 1223--STUDY OF LIMITATION ON
CLASSIFIED CONTRACTS WITH FOREIGN COMPANIES ENGAGED IN SPACE
BUSINESS WITH CHINA
section would require the Secretary of Defense to study the
implications of prohibiting the Department of Defense from
obligating or expending funds in fiscal year 2009, or any
subsequent fiscal year, on contracts for classified work with a
foreign-owned company that is engaged with the People's Republic
of China in the development, manufacture, or launch of certain
satellites. The prohibition would apply to companies engaged in
work involving satellites which are not covered by the
International Traffic in Arms Regulations (ITAR). This section
would allow the Secretary of Defense to waive the prohibition on
the use of funds if doing so is necessary to protect national
This section would require that the Secretary's study be
completed within 60 days of the date of enactment of this Act.
This section would further authorize and require the Secretary to
apply the prohibition on funding if the Secretary determines
after performing the study that doing so promotes the national
interest. This section would also require the Secretary to submit
a report to the Senate Committee on Armed Services and the House
Committee on Armed Services on the results of the study and the