S 1610 PCSCommentsClose CommentsPermalink

To ensure national security while promoting foreign investment and the creation and maintenance of jobs, to reform the process by which such investments are examined for any effect they may have on national security, to establish the Committee on Foreign Investment in the United States, and for other purposes.CommentsClose CommentsPermalink

June 13, 2007

Mr. DODD, from the Committee on Banking, Housing, and Urban Affairs, reported the following original bill; which was read twice and placed on the calendarCommentsClose CommentsPermalink

To ensure national security while promoting foreign investment and the creation and maintenance of jobs, to reform the process by which such investments are examined for any effect they may have on national security, to establish the Committee on Foreign Investment in the United States, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the `Foreign Investment and National Security Act of 2007'.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents for this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink





Sec. 2. United States security improvement amendments; clarification of review and investigation process.CommentsClose CommentsPermalink





Sec. 3. Statutory establishment of the Committee on Foreign Investment in the United States.CommentsClose CommentsPermalink





Sec. 4. Additional factors for consideration.CommentsClose CommentsPermalink





Sec. 5. Mitigation, tracking, and postconsummation monitoring and enforcement.CommentsClose CommentsPermalink





Sec. 6. Action by the President.CommentsClose CommentsPermalink





Sec. 7. Increased oversight by Congress.CommentsClose CommentsPermalink





Sec. 8. Certification of notices and assurances.CommentsClose CommentsPermalink





Sec. 9. Regulations.CommentsClose CommentsPermalink





Sec. 10. Effect on other law.CommentsClose CommentsPermalink





Sec. 11. Effective date.CommentsClose CommentsPermalink

SEC. 2. UNITED STATES SECURITY IMPROVEMENT AMENDMENTS; CLARIFICATION OF REVIEW AND INVESTIGATION PROCESS.

Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 2170) is amended by striking subsections (a) and (b) and inserting the following:CommentsClose CommentsPermalink





`(a) Definitions- For purposes of this section, the following definitions shall apply:CommentsClose CommentsPermalink





`(1) COMMITTEE; CHAIRPERSON- The terms `Committee' and `chairperson' mean the Committee on Foreign Investment in the United States and the chairperson thereof, respectively.CommentsClose CommentsPermalink





`(2) CONTROL- The term `control' has the meaning given to such term in regulations which the Committee shall prescribe.CommentsClose CommentsPermalink





`(3) COVERED TRANSACTION- The term `covered transaction' means any merger, acquisition, or takeover, by or with any foreign person which could result in foreign control of any person engaged in interstate commerce in the United States.CommentsClose CommentsPermalink





`(4) FOREIGN GOVERNMENT-CONTROLLED TRANSACTION- The term `foreign government-controlled transaction' means any covered transaction that could result in the control of any person engaged in interstate commerce in the United States by a foreign government or an entity controlled by or acting on behalf of a foreign government.CommentsClose CommentsPermalink





`(5) CLARIFICATION- The term `national security' shall be construed so as to include those issues relating to `homeland security', including its application to critical infrastructure.CommentsClose CommentsPermalink





`(6) CRITICAL INFRASTRUCTURE- The term `critical infrastructure' means, subject to rules issued under this section, any systems and assets, whether physical or cyber-based, so vital to the United States that the degradation or destruction of such systems or assets would have a debilitating impact on national security, including national economic security and national public health or safety.CommentsClose CommentsPermalink





`(7) CRITICAL TECHNOLOGIES- The term `critical technologies' means technologies identified under title VI of the National Science and Technology Policy, Organization, and Priorities Act of 1976, or other critical technology, critical components, or critical technology items essential to national defense identified pursuant to this section.CommentsClose CommentsPermalink





`(8) LEAD AGENCY- The term `lead agency' means the agency, or agencies, designated as the lead agency or agencies pursuant to subsection (k)(4) for the review of a transaction.CommentsClose CommentsPermalink





`(b) National Security Reviews and Investigations-CommentsClose CommentsPermalink





`(1) NATIONAL SECURITY REVIEWS-CommentsClose CommentsPermalink





`(A) IN GENERAL- Upon receiving written notification under subparagraph (C) of any covered transaction, or pursuant to a unilateral notification initiated under subparagraph (D) with respect to any covered transaction, the President, acting through the Committee--CommentsClose CommentsPermalink





`(i) shall review the covered transaction to determine the effects of the transaction on the national security of the United States; andCommentsClose CommentsPermalink





`(ii) shall consider the factors specified in subsection (f) for such purpose, as appropriate.CommentsClose CommentsPermalink





`(B) CONTROL BY FOREIGN GOVERNMENT- If the Committee determines that the covered transaction is a foreign government-controlled transaction, the Committee shall conduct an investigation of the transaction under paragraph (2).CommentsClose CommentsPermalink





`(C) WRITTEN NOTICE-CommentsClose CommentsPermalink





`(i) IN GENERAL- Any party or parties to any covered transaction may initiate a review of the transaction under this paragraph by submitting a written notice of the transaction to the Chairperson of the Committee.CommentsClose CommentsPermalink





`(ii) WITHDRAWAL OF NOTICE- No covered transaction for which a notice was submitted under clause (i) may be withdrawn from review, unless a written request for such withdrawal is submitted to the Committee by any party to the transaction and approved by the Committee.CommentsClose CommentsPermalink





`(iii) CONTINUING DISCUSSIONS- A request for withdrawal under clause (ii) shall not be construed to preclude any party to the covered transaction from continuing informal discussions with the Committee or any member thereof regarding possible resubmission for review pursuant to this paragraph.CommentsClose CommentsPermalink





`(D) UNILATERAL INITIATION OF REVIEW- Subject to subparagraph (F), the President or the Committee may initiate a review under subparagraph (A) of--CommentsClose CommentsPermalink





`(i) any covered transaction;CommentsClose CommentsPermalink





`(ii) any covered transaction that has previously been reviewed or investigated under this section, if any party to the transaction submitted false or misleading material information to the Committee in connection with the review or investigation or omitted material information, including material documents, from information submitted to the Committee; orCommentsClose CommentsPermalink





`(iii) any covered transaction that has previously been reviewed or investigated under this section, if--CommentsClose CommentsPermalink





`(I) any party to the transaction or the entity resulting from consummation of the transaction intentionally materially breaches a mitigation agreement or condition described in subsection (l)(1)(A);CommentsClose CommentsPermalink





`(II) such breach is certified to the Committee by the lead department or agency monitoring and enforcing such agreement or condition as an intentional material breach; andCommentsClose CommentsPermalink





`(III) the Committee determines that there are no other remedies or enforcement tools available to address such breach.CommentsClose CommentsPermalink





`(E) TIMING- Any review under this paragraph shall be completed before the end of the 30-day period beginning on the date of the acceptance of written notice under subparagraph (C) by the chairperson, or beginning on the date of the initiation of the review in accordance with subparagraph (D), as applicable.CommentsClose CommentsPermalink





`(F) LIMIT ON DELEGATION OF CERTAIN AUTHORITY- The authority of the Committee to initiate a review under subparagraph (D) may not be delegated to any person, other than the Deputy Secretary or an appropriate Under Secretary of the department or agency represented on the Committee.CommentsClose CommentsPermalink





`(2) NATIONAL SECURITY INVESTIGATIONS-CommentsClose CommentsPermalink





`(A) IN GENERAL- In each case described in subparagraph (B) the President, acting through the Committee, shall immediately conduct an investigation of the effects of a covered transaction on the national security of the United States, and take any necessary actions in connection with the transaction to protect the national security of the United States.CommentsClose CommentsPermalink





`(B) APPLICABILITY- Subparagraph (A) shall apply in each case in which--CommentsClose CommentsPermalink





`(i) a review of a covered transaction under paragraph (1) results in a determination that--CommentsClose CommentsPermalink





`(I) the transaction threatens to impair the national security of the United States and that threat has not been mitigated during or prior to the review of a covered transaction under paragraph (1);CommentsClose CommentsPermalink





`(II) the transaction is a foreign government-controlled transaction; orCommentsClose CommentsPermalink





`(III) the transaction would result in control of any critical infrastructure of or within the United States by, with, or on behalf of any foreign person, if the Committee determines that the transaction could impair national security, and that such impairment to national security has not been mitigated by assurances provided or renewed with the approval of the Committee, as described in subsection (l), during the review period under paragraph (1); orCommentsClose CommentsPermalink





`(ii) the lead agency recommends, and the Committee concurs, that an investigation be undertaken.CommentsClose CommentsPermalink





`(C) TIMING- Any investigation under subparagraph (A) shall be completed before the end of the 45-day period beginning on the date on which the investigation commenced.CommentsClose CommentsPermalink





`(D) EXCEPTION-CommentsClose CommentsPermalink





`(i) IN GENERAL- Notwithstanding subparagraph (B)(i), an investigation of a foreign government-controlled transaction described in subclause (II) of subparagraph (B)(i) or a transaction involving critical infrastructure described in subclause (III) of subparagraph (B)(i) shall not be required under this paragraph, if the Secretary of the Treasury and the head of the lead agency jointly determine, on the basis of the review of the transaction under paragraph (1), that the transaction will not impair the national security of the United States.CommentsClose CommentsPermalink





`(ii) NONDELEGATION- The authority of the Secretary or the head of an agency referred to in clause (i) may not be delegated to any person, other than the Deputy Secretary of the Treasury or the deputy head (or the equivalent thereof) of the lead agency, respectively.CommentsClose CommentsPermalink





`(E) GUIDANCE ON CERTAIN TRANSACTIONS WITH NATIONAL SECURITY IMPLICATIONS- The Chairperson shall, not later than 180 days after the date of enactment of the Foreign Investment and National Security Act of 2007, publish in the Federal Register guidance on the types of transactions that the Committee has reviewed and that have presented national security considerations, including transactions that may constitute covered transactions that would result in control of critical infrastructure relating to United States national security by a foreign government or an entity controlled by or acting on behalf of a foreign government.CommentsClose CommentsPermalink





`(3) CERTIFICATIONS TO CONGRESS-CommentsClose CommentsPermalink





`(A) CERTIFIED NOTICE AT COMPLETION OF REVIEW- Upon completion of a review under subsection (b) that concludes action under this section, the chairperson and the head of the lead agency shall transmit a certified notice to the members of Congress specified in subparagraph (C)(iii).CommentsClose CommentsPermalink





`(B) CERTIFIED REPORT AT COMPLETION OF INVESTIGATION- As soon as is practicable after completion of an investigation under subsection (b) that concludes action under this section, the chairperson and the head of the lead agency shall transmit to the members of Congress specified in subparagraph (C)(iii) a certified written report (consistent with the requirements of subsection (c)) on the results of the investigation, unless the matter under investigation has been sent to the President for decision.CommentsClose CommentsPermalink





`(C) CERTIFICATION PROCEDURES-CommentsClose CommentsPermalink





`(i) IN GENERAL- Each certified notice and report required under subparagraphs (A) and (B), respectively, shall be submitted to the members of Congress specified in clause (iii), and shall include--CommentsClose CommentsPermalink





`(I) a description of the actions taken by the Committee with respect to the transaction; andCommentsClose CommentsPermalink





`(II) identification of the determinative factors considered under subsection (f).CommentsClose CommentsPermalink





`(ii) CONTENT OF CERTIFICATION- Each certified notice and report required under subparagraphs (A) and (B), respectively, shall be signed by the chairperson and the head of the lead agency, and shall state that, in the determination of the Committee, there are no unresolved national security concerns with the transaction that is the subject of the notice or report.CommentsClose CommentsPermalink





`(iii) MEMBERS OF CONGRESS- Each certified notice and report required under subparagraphs (A) and (B), respectively, shall be transmitted to--CommentsClose CommentsPermalink





`(I) the Majority Leader and the Minority Leader of the Senate;CommentsClose CommentsPermalink





`(II) the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate and of any committee of the Senate having oversight over the lead agency;CommentsClose CommentsPermalink





`(III) the Speaker and the Minority Leader of the House of Representatives; andCommentsClose CommentsPermalink





`(IV) the chair and ranking member of the Committee on Financial Services of the House of Representatives and of any committee of the House of Representatives having oversight over the lead agency.CommentsClose CommentsPermalink





`(iv) TRANSMITTAL TO OTHER MEMBERS OF CONGRESS- The Majority Leader or the Minority Leader, in the case of the Senate, and the Speaker or the Minority Leader, in the case of the House of Representatives, may provide the certified notices and reports required under subparagraphs (A) and (B), respectively, regarding a transaction involving critical infrastructure--CommentsClose CommentsPermalink





`(I) in the case of the Senate, to members of the Senate from the State in which such critical infrastructure is located; andCommentsClose CommentsPermalink





`(II) in the case of the House of Representatives, to a member from a Congressional District in which such critical infrastructure is located.CommentsClose CommentsPermalink





`(v) SIGNATURES; LIMIT ON DELEGATION-CommentsClose CommentsPermalink





`(I) IN GENERAL- Each certified notice and report required under subparagraphs (A) and (B), respectively, shall be signed by the chairperson and the head of the lead agency, which signature requirement may only be delegated in accordance with subclause (II).CommentsClose CommentsPermalink





`(II) LIMITATION ON DELEGATION OF CERTIFICATIONS- The chairperson and the head of the lead agency may delegate the signature requirement under subclause (I)--CommentsClose CommentsPermalink

`(aa) only to an employee of the Department of the Treasury (in the case of the Secretary of the Treasury) or to an employee of the lead agency (in the case of the lead agency) who was appointed by the President, by and with the advice and consent of the Senate, with respect to any notice provided under paragraph (1) following the completion of a review under this section; orCommentsClose CommentsPermalink

`(bb) only to a Deputy Secretary of the Treasury (in the case of the Secretary of the Treasury) or a person serving in the Deputy position or the equivalent thereof at the lead agency (in the case of the lead agency), with respect to any report provided under subparagraph (B) following an investigation under this section.CommentsClose CommentsPermalink

`(4) ANALYSIS BY DIRECTOR OF NATIONAL INTELLIGENCE-CommentsClose CommentsPermalink





`(A) IN GENERAL- The Director of National Intelligence shall expeditiously carry out a thorough analysis of any threat to the national security of the United States posed by any covered transaction. The Director of National Intelligence shall also seek and incorporate the views of all affected or appropriate intelligence agencies with respect to the transaction.CommentsClose CommentsPermalink





`(B) TIMING- The analysis required under subparagraph (A) shall be provided by the Director of National Intelligence to the Committee not later than 20 days after the date on which notice of the transaction is accepted by the Committee under paragraph (1)(C), but the Director may begin the analysis at any time prior to receipt of the notice, in accordance with otherwise applicable law.CommentsClose CommentsPermalink





`(C) INTERACTION WITH INTELLIGENCE COMMUNITY- The Director of National Intelligence shall ensure that the intelligence community remains engaged in the collection, analysis, and dissemination to the Committee of any additional relevant information that may become available during the course of any investigation conducted under subsection (b) with respect to a transaction.CommentsClose CommentsPermalink





`(D) INDEPENDENT ROLE OF DIRECTOR- The Director of National Intelligence shall be an ex officio member of the Committee, and shall be provided with all notices received by the Committee under paragraph (1)(C) regarding covered transactions, but shall serve no policy role on the Committee, other than to provide analysis under subparagrapha (A) and (C) in connection with a covered transaction.CommentsClose CommentsPermalink





`(5) SUBMISSION OF ADDITIONAL INFORMATION- No provision of this subsection shall be construed as prohibiting any party to a covered transaction from submitting additional information concerning the transaction, including any proposed restructuring of the transaction or any modifications to any agreements in connection with the transaction, while any review or investigation of the transaction is ongoing.CommentsClose CommentsPermalink





`(6) NOTICE OF RESULTS TO PARTIES- The Committee shall notify the parties to a covered transaction of the results of a review or investigation under this section, promptly upon completion of all action under this section.CommentsClose CommentsPermalink





`(7) REGULATIONS- Regulations prescribed under this section shall include standard procedures for--CommentsClose CommentsPermalink





`(A) submitting any notice of a covered transaction to the Committee;CommentsClose CommentsPermalink





`(B) submitting a request to withdraw a covered transaction from review;CommentsClose CommentsPermalink





`(C) resubmitting a notice of a covered transaction that was previously withdrawn from review; andCommentsClose CommentsPermalink





`(D) providing notice of the results of a review or investigation to the parties to the covered transaction, upon completion of all action under this section.'.CommentsClose CommentsPermalink

SEC. 3. STATUTORY ESTABLISHMENT OF THE COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED STATES.

Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 2170) is amended by striking subsection (k) and inserting the following:CommentsClose CommentsPermalink





`(k) Committee on Foreign Investment in the United States-CommentsClose CommentsPermalink





`(1) ESTABLISHMENT- The Committee on Foreign Investment in the United States, established pursuant to Executive Order No. 11858, shall be a multi agency committee to carry out this section and such other assignments as the President may designate.CommentsClose CommentsPermalink





`(2) MEMBERSHIP- The Committee shall be comprised of the following members or the designee of any such member:CommentsClose CommentsPermalink





`(A) The Secretary of the Treasury.CommentsClose CommentsPermalink





`(B) The Secretary of Homeland Security.CommentsClose CommentsPermalink





`(C) The Secretary of Commerce.CommentsClose CommentsPermalink





`(D) The Secretary of Defense.CommentsClose CommentsPermalink





`(E) The Secretary of State.CommentsClose CommentsPermalink





`(F) The Attorney General of the United States.CommentsClose CommentsPermalink





`(G) The Secretary of Energy.CommentsClose CommentsPermalink





`(H) The Secretary of Labor (ex officio).CommentsClose CommentsPermalink





`(I) The Director of National Intelligence (ex officio).CommentsClose CommentsPermalink





`(J) The heads of any other executive department, agency, or office, as the President determines appropriate, generally or on a case-by-case basis.CommentsClose CommentsPermalink





`(3) CHAIRPERSON- The Secretary of the Treasury shall serve as the chairperson of the Committee.CommentsClose CommentsPermalink





`(4) DESIGNATION OF LEAD AGENCY- The Secretary of the Treasury shall designate another member or members, as appropriate, of the Committee to be the lead agency or agencies on behalf of the Committee--CommentsClose CommentsPermalink





`(A) for each covered transaction, and for negotiating any mitigation agreements or other conditions necessary to protect national security; andCommentsClose CommentsPermalink





`(B) for all matters related to the monitoring of the completed transaction, to ensure compliance with such agreements or conditions and with this section.CommentsClose CommentsPermalink





`(5) OTHER MEMBERS- The chairperson shall consult with the heads of such other Federal departments, agencies, and independent establishments in any review or investigation under subsection (a), as the chairperson determines to be appropriate, on the basis of the facts and circumstances of the covered transaction under review or investigation (or the designee of any such department or agency head).CommentsClose CommentsPermalink





`(6) MEETINGS- The Committee shall meet upon the direction of the President or upon the call of the chairperson, without regard to section 552b of title 5, United States Code (if otherwise applicable).'.CommentsClose CommentsPermalink

SEC. 4. ADDITIONAL FACTORS FOR CONSIDERATION.

Section 721(f) of the Defense Production Act of 1950 (50 U.S.C. App. 2170(f)) is amended--CommentsClose CommentsPermalink





(1) in the matter preceding paragraph (1), by striking `among other factors';CommentsClose CommentsPermalink





(2) in paragraph (4)--CommentsClose CommentsPermalink





(A) in subparagraph (A) by striking `or' at the end;CommentsClose CommentsPermalink





(B) by redesignating subparagraph (B) as subparagraph (C);CommentsClose CommentsPermalink





(C) by inserting after subparagraph (A) the following:CommentsClose CommentsPermalink





`(B) identified by the Secretary of Defense as posing a potential regional military threat to the interests of the United States; or'; andCommentsClose CommentsPermalink





(D) by striking `and' at the end;CommentsClose CommentsPermalink





(3) in paragraph (5), by striking the period at the end and inserting a semicolon; andCommentsClose CommentsPermalink





(4) by adding at the end the following:CommentsClose CommentsPermalink





`(6) whether the covered transaction has a security-related impact on critical infrastructure in the United States;CommentsClose CommentsPermalink





`(7) the potential effects on United States critical infrastructure, including major energy assets;CommentsClose CommentsPermalink





`(8) the potential effects on United States critical technologies;CommentsClose CommentsPermalink





`(9) whether the covered transaction is a foreign government-controlled transaction, as determined under subsection (b)(1)(B);CommentsClose CommentsPermalink





`(10) with respect to transactions requiring an investigation under subsection (b)(1)(B) only, a review of the current assessment of--CommentsClose CommentsPermalink





`(A) the adherence of the subject country to nonproliferation control regimes, including treaties and multilateral supply guidelines, which shall draw on, but not be limited to, the annual report on `Adherence to and Compliance with Arms Control, Nonproliferation and Disarmament Agreements and Commitments' required by section 403 of the Arms Control and Disarmament Act;CommentsClose CommentsPermalink





`(B) the relationship of such country with the United States, specifically on its record on cooperating in counter-terrorism efforts, which shall draw on, but not be limited to, the report of the President to Congress under section 7120 of the Intelligence Reform and Terrorism Prevention Act of 2004; andCommentsClose CommentsPermalink





`(C) the potential for transshipment or diversion of technologies with military applications, including an analysis of national export control laws and regulations;CommentsClose CommentsPermalink





`(11) the long-term projection of United States requirements for sources of energy and other critical resources and material; andCommentsClose CommentsPermalink





`(12) such other factors as the President or the Committee may determine to be appropriate, generally or in connection with a specific review or investigation.'.CommentsClose CommentsPermalink

SEC. 5. MITIGATION, TRACKING, AND POSTCONSUMMATION MONITORING AND ENFORCEMENT.

Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 2170) is amended by adding at the end the following:CommentsClose CommentsPermalink





`(l) Mitigation, Tracking, and Postconsummation Monitoring and Enforcement-CommentsClose CommentsPermalink





`(1) MITIGATION-CommentsClose CommentsPermalink





`(A) IN GENERAL- The Committee or a lead agency may, on behalf of the Committee, negotiate, enter into or impose, and enforce any agreement or condition with any party to the covered transaction in order to mitigate any threat to the national security of the United States that arises as a result of the covered transaction.CommentsClose CommentsPermalink





`(B) RISK-BASED ANALYSIS REQUIRED- Any agreement entered into or condition imposed under subparagraph (A) shall be based on a risk-based analysis, conducted by the Committee, of the threat to national security of the covered transaction.CommentsClose CommentsPermalink





`(2) TRACKING AUTHORITY FOR WITHDRAWN NOTICES-CommentsClose CommentsPermalink





`(A) IN GENERAL- If any written notice of a covered transaction that was submitted to the Committee under this section is withdrawn before any review or investigation by the Committee under subsection (b) is completed, the Committee shall establish, as appropriate--CommentsClose CommentsPermalink





`(i) interim protections to address specific concerns with such transaction that have been raised in connection with any such review or investigation pending any resubmission of any written notice under this section with respect to such transaction and further action by the President under this section;CommentsClose CommentsPermalink





`(ii) specific time frames for resubmitting any such written notice; andCommentsClose CommentsPermalink





`(iii) a process for tracking any actions that may be taken by any party to the transaction, in connection with the transaction, before the notice referred to in clause (ii) is resubmitted.CommentsClose CommentsPermalink





`(B) DESIGNATION OF AGENCY- The lead agency, other than any entity of the intelligence community (as defined in the National Security Act of 1947), shall, on behalf of the Committee, ensure that the requirements of subparagraph (A) with respect to any covered transaction that is subject to such subparagraph are met.CommentsClose CommentsPermalink





`(3) NEGOTIATION, MODIFICATION, MONITORING, AND ENFORCEMENT-CommentsClose CommentsPermalink





`(A) DESIGNATION OF LEAD AGENCY- The lead agency shall negotiate, modify, monitor, and enforce, on behalf of the Committee, any agreement entered into or condition imposed under paragraph (1) with respect to a covered transaction, based on the expertise with and knowledge of the issues related to such transaction on the part of the designated department or agency. Nothing in this paragraph shall prohibit other departments or agencies in assisting the lead agency in carrying out the purposes of this paragraph.CommentsClose CommentsPermalink





`(B) REPORTING BY DESIGNATED AGENCY-CommentsClose CommentsPermalink





`(i) MODIFICATION REPORTS- The lead agency in connection with any agreement entered into or condition imposed with respect to a covered transaction shall--CommentsClose CommentsPermalink





`(I) provide periodic reports to the Committee on any material modification to any such agreement or condition imposed with respect to the transaction; andCommentsClose CommentsPermalink





`(II) ensure that any material modification to any such agreement or condition is reported to the Director of National Intelligence, the Attorney General of the United States, and any other Federal department or agency that may have a material interest in such modification.CommentsClose CommentsPermalink





`(ii) COMPLIANCE- The Committee shall develop and agree upon methods for evaluating compliance with any agreement entered into or condition imposed with respect to a covered transaction that will allow the Committee to adequately assure compliance, without--CommentsClose CommentsPermalink





`(I) unnecessarily diverting Committee resources from assessing any new covered transaction for which a written notice has been filed pursuant to subsection (b)(1)(C), and if necessary, reaching a mitigation agreement with or imposing a condition on a party to such covered transaction or any covered transaction for which a review has been reopened for any reason; orCommentsClose CommentsPermalink





`(II) placing unnecessary burdens on a party to a covered transaction.'.CommentsClose CommentsPermalink

SEC. 6. ACTION BY THE PRESIDENT.

Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 2170) is amended by striking subsections (d) and (e) and inserting the following:CommentsClose CommentsPermalink





`(d) Action by the President-CommentsClose CommentsPermalink





`(1) IN GENERAL- Subject to paragraph (4), the President may take such action for such time as the President considers appropriate to suspend or prohibit any covered transaction by or with a foreign person or government that threatens to impair the national security of the United States.CommentsClose CommentsPermalink





`(2) ANNOUNCEMENT BY THE PRESIDENT- The President shall announce the decision on whether or not to take action pursuant to paragraph (1) not later than 15 days after the date on which an investigation described in subsection (b) is completed.CommentsClose CommentsPermalink





`(3) ENFORCEMENT- The President may direct the Attorney General of the United States to seek appropriate relief, including divestment relief, in the district courts of the United States, in order to implement and enforce this subsection.CommentsClose CommentsPermalink





`(4) FINDINGS OF THE PRESIDENT- The President may exercise the authority conferred by paragraph (1), only if the President finds that--CommentsClose CommentsPermalink





`(A) there is credible evidence that leads the President to believe that the foreign interest exercising control might take action that threatens to impair the national security; andCommentsClose CommentsPermalink





`(B) provisions of law, other than this section and the International Emergency Economic Powers Act, do not, in the judgment of the President, provide adequate and appropriate authority for the President to protect the national security in the matter before the President.CommentsClose CommentsPermalink





`(5) FACTORS TO BE CONSIDERED- For purposes of determining whether to take action under paragraph (1), the President shall consider, among other factors each of the factors described in subsection (f).CommentsClose CommentsPermalink





`(e) Actions and Findings Nonreviewable- The actions of the President under paragraph (1) of subsection (d) and the findings of the President under paragraph (4) of subsection (d) shall not be subject to judicial review.'.CommentsClose CommentsPermalink

SEC. 7. INCREASED OVERSIGHT BY CONGRESS.

(a) Report on Actions- Section 721(g) of the Defense Production Act of 1950 (50 U.S.C. App. 2170(g)) is amended to read as follows:CommentsClose CommentsPermalink





`(g) Additional Information to Congress; Confidentiality-CommentsClose CommentsPermalink





`(1) BRIEFING REQUIREMENT ON REQUEST- The Committee shall, upon request from any Member of Congress specified in subsection (b)(3)(C)(iii), promptly provide briefings on a covered transaction for which all action has concluded under this section, or on compliance with a mitigation agreement or condition imposed with respect to such transaction, on a classified basis, if deemed necessary by the sensitivity of the information. Briefings under this paragraph may be provided to the congressional staff of such a Member of Congress having appropriate security clearance.CommentsClose CommentsPermalink





`(2) APPLICATION OF CONFIDENTIALITY PROVISIONS-CommentsClose CommentsPermalink





`(A) IN GENERAL- The disclosure of information under this subsection shall be consistent with the requirements of subsection (c). Members of Congress and staff of either House of Congress or any committee of Congress, shall be subject to the same limitations on disclosure of information as are applicable under subsection (c).CommentsClose CommentsPermalink





`(B) PROPRIETARY INFORMATION- Proprietary information which can be associated with a particular party to a covered transaction shall be furnished in accordance with subparagraph (A) only to a committee of Congress, and only when the committee provides assurances of confidentiality, unless such party otherwise consents in writing to such disclosure.'.CommentsClose CommentsPermalink





(b) Annual Report- Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 2170) is amended by adding at the end the following:CommentsClose CommentsPermalink





`(m) Annual Report to Congress-CommentsClose CommentsPermalink





`(1) IN GENERAL- The chairperson shall transmit a report to the chairman and ranking member of the committee of jurisdiction in the Senate and the House of Representatives, before July 31 of each year on all of the reviews and investigations of covered transactions completed under subsection (b) during the 12-month period covered by the report.CommentsClose CommentsPermalink





`(2) CONTENTS OF REPORT RELATING TO COVERED TRANSACTIONS- The annual report under paragraph (1) shall contain the following information with respect to each covered transaction for the reporting period:CommentsClose CommentsPermalink





`(A) A list of all notices filed and all reviews or investigations completed during the period, with basic information on each party to the transaction, the nature of the business activities or products of all pertinent persons, along with information about any withdrawal from the process, and any decision or action by the President under this section.CommentsClose CommentsPermalink





`(B) Specific, cumulative, and, as appropriate, trend information on the numbers of filings, investigations, withdrawals, and decisions or actions by the President under this section.CommentsClose CommentsPermalink





`(C) Cumulative and, as appropriate, trend information on the business sectors involved in the filings which have been made, and the countries from which the investments have originated.CommentsClose CommentsPermalink





`(D) Information on whether companies that withdrew notices to the Committee in accordance with subsection (b)(1)(C)(ii) have later refiled such notices, or, alternatively, abandoned the transaction.CommentsClose CommentsPermalink





`(E) The types of security arrangements and conditions the Committee has used to mitigate national security concerns about a transaction, including a discussion of the methods that the Committee and any lead agency are using to determine compliance with such arrangements or conditions.CommentsClose CommentsPermalink





`(F) A detailed discussion of all perceived adverse effects of covered transactions on the national security or critical infrastructure of the United States that the Committee will take into account in its deliberations during the period before delivery of the next report, to the extent possible.CommentsClose CommentsPermalink





`(3) CONTENTS OF REPORT RELATING TO CRITICAL TECHNOLOGIES-CommentsClose CommentsPermalink





`(A) IN GENERAL- In order to assist Congress in its oversight responsibilities with respect to this section, the President and such agencies as the President shall designate shall include in the annual report submitted under paragraph (1)--CommentsClose CommentsPermalink





`(i) an evaluation of whether there is credible evidence of a coordinated strategy by 1 or more countries or companies to acquire United States companies involved in research, development, or production of critical technologies for which the United States is a leading producer; andCommentsClose CommentsPermalink





`(ii) an evaluation of whether there are industrial espionage activities directed or directly assisted by foreign governments against private United States companies aimed at obtaining commercial secrets related to critical technologies.CommentsClose CommentsPermalink





`(B) RELEASE OF UNCLASSIFIED STUDY- That portion of the annual report under paragraph (1) that is required by this paragraph may be classified. An unclassified version of the report, as appropriate, consistent with safeguarding national security and privacy, shall be made available to the public.'.CommentsClose CommentsPermalink





(c) Study and Report-CommentsClose CommentsPermalink





(1) STUDY REQUIRED- Before the end of the 120-day period beginning on the date of enactment of this Act and annually thereafter, the Secretary of the Treasury, in consultation with the Secretary of State and the Secretary of Commerce, shall conduct a study on foreign direct investments in the United States, especially investments in critical infrastructure and industries affecting national security, by--CommentsClose CommentsPermalink





(A) foreign governments, entities controlled by or acting on behalf of a foreign government, or persons of foreign countries which comply with any boycott of Israel; orCommentsClose CommentsPermalink





(B) foreign governments, entities controlled by or acting on behalf of a foreign government, or persons of foreign countries which do not ban organizations designated by the Secretary of State as foreign terrorist organizations.CommentsClose CommentsPermalink





(2) REPORT- Before the end of the 30-day period beginning upon the date of completion of each study under paragraph (1), or in the next annual report under section 721(m) of the Defense Production Act of 1950 (as added by this section), the Secretary of the Treasury shall submit a report to the Congress, for transmittal to all appropriate committees of the Senate and the House of Representatives, containing the findings and conclusions of the Secretary with respect to the study described in paragraph (1), together with an analysis of the effects of such investment on the national security of the United States and on any efforts to address those effects.CommentsClose CommentsPermalink





(d) Investigation by Inspector General-CommentsClose CommentsPermalink





(1) IN GENERAL- The Inspector General of the Department of the Treasury shall conduct an independent investigation to determine all of the facts and circumstances concerning each failure of the Department of the Treasury to make any report to the Congress that was required under section 721(k) of the Defense Production Act of 1950, as in effect on the day before the date of enactment of this Act.CommentsClose CommentsPermalink





(2) REPORT TO THE CONGRESS- Before the end of the 270-day period beginning on the date of enactment of this Act, the Inspector General of the Department of the Treasury shall submit a report on the investigation under paragraph (1) containing the findings and conclusions of the Inspector General, to the chairman and ranking member of each committee of the Senate and the House of Representatives having jurisdiction over any aspect of the report, including, at a minimum, the Committee on Foreign Relations, the Committee on Banking, Housing, and Urban Affairs, and the Committee on Commerce, Science, and Transportation of the Senate, and the Committee on Foreign Affairs, the Committee on Financial Services, and the Committee on Energy and Commerce of the House of Representatives.CommentsClose CommentsPermalink

SEC. 8. CERTIFICATION OF NOTICES AND ASSURANCES.

Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 2170) is amended by adding at the end the following:CommentsClose CommentsPermalink





`(n) Certification of Notices and Assurances- Each notice, and any followup information, submitted under this section and regulations prescribed under this section to the President or the Committee by a party to a covered transaction, and any information submitted by any such party in connection with any action for which a report is required pursuant to paragraph (3)(B) of subsection (l), with respect to the implementation of any mitigation agreement or condition described in paragraph (1)(A) of subsection (l), or any material change in circumstances, shall be accompanied by a written statement by the chief executive officer or the designee of the person required to submit such notice or information certifying that, to the best of the knowledge and belief of that person--CommentsClose CommentsPermalink





`(1) the notice or information submitted fully complies with the requirements of this section or such regulation, agreement, or condition; andCommentsClose CommentsPermalink





`(2) the notice or information is accurate and complete in all material respects.'.CommentsClose CommentsPermalink

SEC. 9. REGULATIONS.

Section 721(h) of the Defense Production Act of 1950 (50 U.S.C. App. 2170(h)) is amended to read as follows:CommentsClose CommentsPermalink





`(h) Regulations-CommentsClose CommentsPermalink





`(1) IN GENERAL- The President shall direct, subject to notice and comment, the issuance of regulations to carry out this section.CommentsClose CommentsPermalink





`(2) EFFECTIVE DATE- Regulations issued under this section shall become effective not later than 180 days after the effective date of the Foreign Investment and National Security Act of 2007.CommentsClose CommentsPermalink





`(3) CONTENT- Regulations issued under this subsection shall--CommentsClose CommentsPermalink





`(A) provide for the imposition of civil penalties for any violation of this section;CommentsClose CommentsPermalink





`(B) to the extent possible--CommentsClose CommentsPermalink





`(i) minimize paperwork burdens; andCommentsClose CommentsPermalink





`(ii) coordinate reporting requirements under this section with reporting requirements under any other provision of Federal law; andCommentsClose CommentsPermalink





`(C) provide for an appropriate role for the Secretary of Labor with respect to mitigation agreements.'.CommentsClose CommentsPermalink

SEC. 10. EFFECT ON OTHER LAW.

Section 721(i) of the Defense Production Act of 1950 (50 U.S.C. App. 2170(i)) is amended to read as follows:CommentsClose CommentsPermalink





`(i) Effect on Other Law- No provision of this section shall be construed as altering or affecting any other authority, process, regulation, investigation, enforcement measure, or review provided by or established under any other provision of Federal law, including the International Emergency Economic Powers Act, or any other authority of the President or the Congress under the Constitution of the United States.'.CommentsClose CommentsPermalink

SEC. 11. EFFECTIVE DATE.

The amendments made by this Act shall apply after the end of the 90-day period beginning on the date of enactment of this Act.CommentsClose CommentsPermalink

Calendar No. 197CommentsClose CommentsPermalink

To ensure national security while promoting foreign investment and the creation and maintenance of jobs, to reform the process by which such investments are examined for any effect they may have on national security, to establish the Committee on Foreign Investment in the United States, and for other purposes.CommentsClose CommentsPermalink

June 13, 2007