; (2) provide that the Department of Defense may audit or otherwise inspect the records of the contractor to determine if the contractor has violated a requirement under subsection (a); and (3) provide that, if the head of an agency determines that a contractor has violated a requirement under subsection (a), the Department of Defense may— (A) withhold or claw back funds from the contractor until such time as the contractor ceases to employ or retain the lobbyist; and (B) rescind the contract if the contractor fails to come into compliance with a requirement under subsection (a) in a timely manner. (c) Waiver The Secretary of Defense may waive the prohibition on a case-by-case basis if the Secretary determines and certifies to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives that exercising such waiver is necessary to the national security interests of the United States. (d) Lobbyist and lobbying firm defined In this section, the terms lobbyist and lobbying firm have the meaning given the terms in section 3 of the Lobbying Disclosure Act of 1995 ( 2 U.S.C. 1602 ). . (b) Clerical amendment The table of sections at the beginning of chapter 363 of title 10, United States Code, is amended by inserting after the item relating to section 4662 the following new item: 4663. Prohibition on contracting with companies with lobbying ties to Chinese military companies and human rights abusers. . (c) Effective date The amendments made by this section shall take effect 30 days after the date of the enactment of this Act.