[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2551 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 2551
To amend title 10, United States Code, to establish requirements
relating to long-term concessions agreements between the Secretary of
Defense and certain retailers, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 1, 2025
Mr. Harrigan introduced the following bill; which was 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 certain retailers, 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. REQUIREMENTS RELATING TO LONG-TERM CONCESSIONS AGREEMENTS WITH
CERTAIN RETAILERS.
(a) In General.--Chapter 363 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 4664. Requirements relating to long-term concessions agreements
with certain retailers
``(a) Prohibition on Contracting With Certain Retailers.--
``(1) In general.--The Secretary of Defense may not renew,
extend, or enter into a long-term concessions agreement with a
retailer that is controlled by a covered nation to permit such
retailer to operate or conduct business through a physical
location on a covered military installation.
``(2) Waiver.--The Secretary may waive the requirements of
paragraph (1) 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 of the retailer.
``(3) Report.--Not later than 30 days after each use of the
waiver authority under paragraph (2), the Secretary shall
submit to the Committees on Armed Services of the House of
Representatives and Senate a report including a justification
for the use of such authority and a description of any risk
mitigation strategies described in paragraph (2)(B).
``(4) Termination.--With respect to a retailer that has
misrepresented the ownership and control of such retailer for
the award of a long-term concessions agreement, the Secretary
of Defense may terminate such agreement.
``(5) Applicability.--Paragraph (1) shall apply with
respect to a long-term concessions agreement entered into on or
after the date of the enactment of this section.
``(b) Covered Retailers.--
``(1) In general.--The Secretary of Defense may not permit
a covered retailer controlled by a covered nation to operate or
conduct business through a physical location on a covered
military installation, unless such covered retailer has
received an approval determination under paragraph (4).
``(2) Notice.--Not later than 30 days after the date of the
enactment of this section, a covered retailer--
``(A) shall submit to the Committee on Foreign
Investment in the United States (in this section
referred to as the `Committee') a notice that includes
any direct or indirect relationships between the
covered retailer (including any subsidiaries or parent
companies of such covered retailer) and any covered
nation; and
``(B) may not operate or conduct business through a
physical location on a covered military installation
unless the Committee submits a determination approving
such notice in accordance with paragraph (3).
``(3) Investigation.--The Committee shall conduct an
investigation of the effects of a notice submitted under
paragraph (2) on the national security of the United States,
including an assessment of any direct or indirect relationships
between the covered retailer (including any subsidiaries or
parent companies of such covered retailer) and any covered
nation.
``(4) Determination.--Not later than 180 days after
completing an investigation under paragraph (3), the Committee
shall submit to the Secretary of Defense a determination
approving or disapproving the notice submitted under paragraph
(2).
``(5) Compliance.--
``(A) In general.--A covered retailer that receives
an approval under paragraph (4) shall submit annually
to the Committee disclosures regarding any change in
the ownership structure that may affect whether or not
the covered retailer is controlled by a covered nation.
``(B) Failure to comply.--The Secretary of Defense
shall immediately terminate a long-term concession
agreement with a covered retailer if the Secretary
determines such covered retailer has failed to comply
with the requirements of this subsection.
``(c) Assessment of Covered Retailers.--
``(1) In general.--Not later than 180 days after the date
of the enactment of this section, the Secretary of Defense
shall review each long-term concessions agreement with a
covered retailer that permits the covered retailer to operate
or conduct business through a physical location on a covered
military installation to assess any direct or indirect
relationships between the retailer (including any subsidiaries
or parent companies of such covered retailer) and any covered
nation.
``(2) Termination.--Not later than 30 days after making a
determination that a covered retailer is controlled by a
covered nation based on an assessment described in subsection
(a) or a determination made under subsection (b), the Secretary
of Defense shall terminate any long-term concessions agreement
with the covered retailer.
``(d) Definitions.--In this section:
``(1) The term `controlled by a covered nation' means, with
respect to a retailer--
``(A) that the retailer is organized under the laws
of a covered nation or any jurisdiction within a
covered nation;
``(B) that a covered nation owns 20 percent or more
of the shares of the retailer; or
``(C) that the retailer is subject to the direct 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 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 Act.
``(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 `retailer' means--
``(A) a nonappropriated fund instrumentality that
operates or seeks to operate a business through a
physical location on a covered military installation;
and
``(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.''.
(b) Assessment of Covered Retailers.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of Defense shall
review each long-term concessions agreement with a covered
retailer that permits the covered retailer to operate or
conduct business through a physical location on a covered
military installation to assess any direct or indirect
relationships between the retailer (including any subsidiaries
or parent companies of such covered retailer) and any covered
nation.
(2) Termination.--Not later than one year after making a
determination that a covered retailer is controlled by a
covered nation based on an assessment described in subsection
(a), the Secretary of Defense shall terminate any long-term
concessions agreement with the covered retailer.
(3) Definitions.--In this section, the terms ``covered
nation'', ``covered retailer'', and ``long-term concessions
agreement'' have the meanings given in section 4664 of title
10, United States Code, as added by this section.
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