12 2 STA T .45 42 PUBLIC LA W 11 0– 41 7—O CT. 14 , 200 8‘ ‘ (2)Adescript i on o f f u nds a ut h ori z ed , appropriated, or repro g ra m med to carr y out the re q uirements of this section, the b udget e x ecution of such funds, and the adequacy of budgets pro v ided for performing such purpose . ‘‘( 3 ) S tatistics on the number of contractors hand l ing classi - fied information of the D epartment of Defense, and the percent- age of such contractors w ho are sub j ect to foreign ownership, control, or influence. ‘‘( 4 ) Statistics on the number of violations identified, enforcement actions ta k en, and the percentage of such viola- tions occurring at facilities of contractors subject to foreign ownership, control, or influence. ‘‘( 5 ) An assessment of whether major contractors imple- menting the program have adequate enforcement programs and have trained their employees adequately in the require- ments of the program. ‘‘( 6 ) T rend data on attempts to compromise classified information disclosed to contractors of the Department of Defense to the extent that such data are available. ’ ’. (2) CLERICA LA M E ND MEN T . — The table of sections at the beginning of subchapter I of chapter 2 1 of title 1 0 , U nited States Code, is amended by adding at the end the following new item
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‘ 438.Def e ns e i n du s tr i al se c urit y . ’ ’. (b) S UB MI S SI O NO FF IRST B IENNIAL R E P ORT.— N otwithstanding the deadline in subsection (f) of section 43 8 of title 10, United States Code, as added by this section, the first biennial report submitted after the date of the enactment of this Act pursuant to such subsection shall be submitted not later than September 1, 200 9 , and shall address the period from the date of the enactment of this Act to the issuance of such report. (c) REPORT ON IMPRO V IN G INDUSTRIAL SECURIT Y .—Not later than M arch 1, 2009, the Secretary of Defense shall submit to the congressional defense committees a report on improving indus- trial security, including, at a minimum, the following: (1) The actions taken or actions planned to implement the recommendations of the Comptroller G eneral as embodied in the report entitled ‘‘Industrial Security: D O D Cannot E nsure Its Oversight of Contractors Under Foreign Influence Is Suffi- cient’’ (GAO-05-681
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uly 2005). (2) Other actions taken or action planned to improve indus- trial security. (3) An analysis of the impact of emerging financial arrange- ments such as sovereign wealth funds, hedge funds, and other new financial debt and credit arrangements on the Depart- ment’s ability to identify and mitigate foreign ownership, con- trol, or influence. (4) Any recommendations of the Secretary for modifying regulations and policy guidance prescribed pursuant to section 438(d) of title 10, United States Code, or other regulations or policy guidance addressing industrial security, to extend best practices for industrial security across the broadest pos- sible range of defense contractors, and to improve industrial security generally.
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