[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 556 Engrossed Amendment Senate (EAS)]
In the Senate of the United States,
June 29, 2007.
Resolved, That the bill from the House of Representatives (H.R.
556) entitled ``An Act 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.'', do pass
with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
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''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. United States security improvement amendments; clarification of
review and investigation process.
Sec. 3. Statutory establishment of the Committee on Foreign Investment
in the United States.
Sec. 4. Additional factors for consideration.
Sec. 5. Mitigation, tracking, and postconsummation monitoring and
enforcement.
Sec. 6. Action by the President.
Sec. 7. Increased oversight by Congress.
Sec. 8. Certification of notices and assurances.
Sec. 9. Regulations.
Sec. 10. Effect on other law.
Sec. 11. Clerical amendments
Sec. 12. Effective date.
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:
``(a) Definitions.--For purposes of this section, the following
definitions shall apply:
``(1) Committee; chairperson.--The terms `Committee' and
`chairperson' mean the Committee on Foreign Investment in the
United States and the chairperson thereof, respectively.
``(2) Control.--The term `control' has the meaning given to
such term in regulations which the Committee shall prescribe.
``(3) Covered transaction.--The term `covered transaction'
means any merger, acquisition, or takeover that is proposed or
pending after August 23, 1988, by or with any foreign person
which could result in foreign control of any person engaged in
interstate commerce in the United States.
``(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.
``(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.
``(6) Critical infrastructure.--The term `critical
infrastructure' means, subject to rules issued under this
section, systems and assets, whether physical or virtual, so
vital to the United States that the incapacity or destruction
of such systems or assets would have a debilitating impact on
national security.
``(7) Critical technologies.--The term `critical
technologies' means critical technology, critical components,
or critical technology items essential to national defense,
identified pursuant to this section, subject to regulations
issued at the direction of the President, in accordance with
subsection (h).
``(8) Lead agency.--The term `lead agency' means the
agency, or agencies, designated as the lead agency or agencies
pursuant to subsection (k)(5) for the review of a transaction.
``(b) National Security Reviews and Investigations.--
``(1) National security reviews.--
``(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--
``(i) shall review the covered transaction
to determine the effects of the transaction on
the national security of the United States; and
``(ii) shall consider the factors specified
in subsection (f) for such purpose, as
appropriate.
``(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).
``(C) Written notice.--
``(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.
``(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.
``(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.
``(D) Unilateral initiation of review.--Subject to
subparagraph (F), the President or the Committee may
initiate a review under subparagraph (A) of--
``(i) any covered transaction;
``(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; or
``(iii) any covered transaction that has
previously been reviewed or investigated under
this section, if--
``(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);
``(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; and
``(III) the Committee determines
that there are no other remedies or
enforcement tools available to address
such breach.
``(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.
``(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.
``(2) National security investigations.--
``(A) In general.--In each case described in
subparagraph (B), 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.
``(B) Applicability.--Subparagraph (A) shall apply
in each case in which--
``(i) a review of a covered transaction
under paragraph (1) results in a determination
that--
``(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);
``(II) the transaction is a foreign
government-controlled transaction; or
``(III) the transaction would
result in control of any critical
infrastructure of or within the United
States by 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); or
``(ii) the lead agency recommends, and the
Committee concurs, that an investigation be
undertaken.
``(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.
``(D) Exception.--
``(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.
``(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.
``(E) Guidance on certain transactions with
national security implications.--The Chairperson shall,
not later than 180 days after the effective date 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.
``(3) Certifications to congress.--
``(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).
``(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.
``(C) Certification procedures.--
``(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--
``(I) a description of the actions
taken by the Committee with respect to
the transaction; and
``(II) identification of the
determinative factors considered under
subsection (f).
``(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.
``(iii) Members of congress.--Each
certified notice and report required under
subparagraphs (A) and (B), respectively, shall
be transmitted--
``(I) to the Majority Leader and
the Minority Leader of the Senate;
``(II) to 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;
``(III) to the Speaker and the
Minority Leader of the House of
Representatives;
``(IV) to 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; and
``(V) with respect to covered
transactions involving critical
infrastructure, to the members of the
Senate from the State in which the
principal place of business of the
acquired United States person is
located, and the member from the
Congressional District in which such
principal place of business is located.
``(iv) Signatures; limit on delegation.--
``(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).
``(II) Limitation on delegation of
certifications.--The chairperson and
the head of the lead agency may
delegate the signature requirement
under subclause (I)--
``(aa) only to an
appropriate employee of the
Department of the Treasury (in
the case of the Secretary of
the Treasury) or to an
appropriate 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; or
``(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.
``(4) Analysis by director of national intelligence.--
``(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.
``(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 such analysis may be supplemented
or amended, as the Director considers necessary or
appropriate, or upon a request for additional
information by the Committee. The Director may begin
the analysis at any time prior to acceptance of the
notice, in accordance with otherwise applicable law.
``(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.
``(D) Independent role of director.--The Director
of National Intelligence shall be a nonvoting, 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 subparagraphs (A) and (C) in
connection with a covered transaction.
``(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.
``(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.
``(7) Regulations.--Regulations prescribed under this
section shall include standard procedures for--
``(A) submitting any notice of a covered
transaction to the Committee;
``(B) submitting a request to withdraw a covered
transaction from review;
``(C) resubmitting a notice of a covered
transaction that was previously withdrawn from review;
and
``(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.''.
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:
``(k) Committee on Foreign Investment in the United States.--
``(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.
``(2) Membership.--The Committee shall be comprised of the
following members or the designee of any such member:
``(A) The Secretary of the Treasury.
``(B) The Secretary of Homeland Security.
``(C) The Secretary of Commerce.
``(D) The Secretary of Defense.
``(E) The Secretary of State.
``(F) The Attorney General of the United States.
``(G) The Secretary of Energy.
``(H) The Secretary of Labor (nonvoting, ex
officio).
``(I) The Director of National Intelligence
(nonvoting, ex officio).
``(J) The heads of any other executive department,
agency, or office, as the President determines
appropriate, generally or on a case-by-case basis.
``(3) Chairperson.--The Secretary of the Treasury shall
serve as the chairperson of the Committee.
``(4) Assistant secretary for the department of the
treasury.--There shall be established an additional position of
Assistant Secretary of the Treasury, who shall be appointed by
the President, by and with the advice and consent of the
Senate. The Assistant Secretary appointed under this paragraph
shall report directly to the Undersecretary of the Treasury for
International Affairs. The duties of the Assistant Secretary
shall include duties related to the Committee on Foreign
Investment in the United States, as delegated by the Secretary
of the Treasury under this section.
``(5) Designation of lead agency.--The Secretary of the
Treasury shall designate, as appropriate, a member or members
of the Committee to be the lead agency or agencies on behalf of
the Committee--
``(A) for each covered transaction, and for
negotiating any mitigation agreements or other
conditions necessary to protect national security; and
``(B) for all matters related to the monitoring of
the completed transaction, to ensure compliance with
such agreements or conditions and with this section.
``(6) 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).
``(7) 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).''.
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--
(1) in the matter preceding paragraph (1), by striking
``among other factors'';
(2) in paragraph (4)--
(A) in subparagraph (A) by striking ``or'' at the
end;
(B) by redesignating subparagraph (B) as
subparagraph (C);
(C) by inserting after subparagraph (A) the
following:
``(B) identified by the Secretary of Defense as
posing a potential regional military threat to the
interests of the United States; or''; and
(D) by striking ``and'' at the end;
(3) in paragraph (5), by striking the period at the end and
inserting a semicolon; and
(4) by adding at the end the following:
``(6) the potential national security-related effects on
United States critical infrastructure, including major energy
assets;
``(7) the potential national security-related effects on
United States critical technologies;
``(8) whether the covered transaction is a foreign
government-controlled transaction, as determined under
subsection (b)(1)(B);
``(9) as appropriate, and particularly with respect to
transactions requiring an investigation under subsection
(b)(1)(B), a review of the current assessment of--
``(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;
``(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; and
``(C) the potential for transshipment or diversion
of technologies with military applications, including
an analysis of national export control laws and
regulations;
``(10) the long-term projection of United States
requirements for sources of energy and other critical resources
and material; and
``(11) such other factors as the President or the Committee
may determine to be appropriate, generally or in connection
with a specific review or investigation.''.
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:
``(l) Mitigation, Tracking, and Postconsummation Monitoring and
Enforcement.--
``(1) Mitigation.--
``(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.
``(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.
``(2) Tracking authority for withdrawn notices.--
``(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--
``(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;
``(ii) specific time frames for
resubmitting any such written notice; and
``(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.
``(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.
``(3) Negotiation, modification, monitoring, and
enforcement.--
``(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.
``(B) Reporting by designated agency.--
``(i) Modification reports.--The lead
agency in connection with any agreement entered
into or condition imposed with respect to a
covered transaction shall--
``(I) provide periodic reports to
the Committee on any material
modification to any such agreement or
condition imposed with respect to the
transaction; and
``(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.
``(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--
``(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; or
``(II) placing unnecessary burdens
on a party to a covered transaction.''.
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:
``(d) Action by the President.--
``(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 that
threatens to impair the national security of the United States.
``(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.
``(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.
``(4) Findings of the president.--The President may
exercise the authority conferred by paragraph (1), only if the
President finds that--
``(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; and
``(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.
``(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), as appropriate.
``(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.''.
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:
``(g) Additional Information to Congress; Confidentiality.--
``(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.
``(2) Application of confidentiality provisions.--
``(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).
``(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.''.
(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:
``(m) Annual Report to Congress.--
``(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.
``(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:
``(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.
``(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.
``(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.
``(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.
``(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.
``(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.
``(3) Contents of report relating to critical
technologies.--
``(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)--
``(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; and
``(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.
``(B) Release of unclassified study.--All
appropriate portions of the annual report under
paragraph (1) 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.''.
(c) Study and Report.--
(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--
(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; or
(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.
(2) Report.--Before the end of the 30-day period beginning
upon the date of completion of each study under paragraph (1),
and thereafter in each 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
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.
(d) Investigation by Inspector General.--
(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.
(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.
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:
``(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--
``(1) the notice or information submitted fully complies
with the requirements of this section or such regulation,
agreement, or condition; and
``(2) the notice or information is accurate and complete in
all material respects.''.
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:
``(h) Regulations.--
``(1) In general.--The President shall direct, subject to
notice and comment, the issuance of regulations to carry out
this section.
``(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.
``(3) Content.--Regulations issued under this subsection
shall--
``(A) provide for the imposition of civil penalties
for any violation of this section, including any
mitigation agreement entered into or conditions imposed
pursuant to subsection (l);
``(B) to the extent possible--
``(i) minimize paperwork burdens; and
``(ii) coordinate reporting requirements
under this section with reporting requirements
under any other provision of Federal law; and
``(C) provide for an appropriate role for the
Secretary of Labor with respect to mitigation
agreements.''.
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:
``(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.''.
SEC. 11. CLERICAL AMENDMENTS.
(a) Title 31.--Section 301(e) of title 31, United States Code, is
amended by striking ``8 Assistant'' and inserting ``9 Assistant''.
(b) Title 5.--Section 5315 of title 5, United States Code, is
amended in the item relating to ``Assistant Secretaries of the
Treasury'', by striking ``(8)'' and inserting ``(9)''.
SEC. 12. 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.
Attest:
Secretary.
110th CONGRESS
1st Session
H. R. 556
_______________________________________________________________________
AMENDMENT