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# Legislative Bulletin.............................................\.........February 28, 2007

**Contents:**

> **Amendments to H.R. 556**---National Security Foreign Investment
> Reform and Strengthened Transparency Act

H.R. 556, the National Security Foreign Investment Reform and
Strengthened Transparency Act (sponsored by Rep. Maloney, D-NY), is
scheduled to be considered on the House floor today, February 28, 2007,
subject to a modified open rule (H.Res. 195), allowing any germane
amendment to be offered, as long as it was pre-filed in the
*Congressional Record* yesterday. Below are the summaries of the 12
amendments preprinted in the *Congressional Record*. [Note]{.underline}:
summaries are based on RSC staff's review of *actual amendment text*.
For a summary of the underlying bill, see a separate RSC document
released yesterday. (Note: the rule allows for one motion to recommit,
with or without instructions.)

RSC Staff Contact: Paul Teller; <paul.teller@mail.house.gov>, (202)
226-9718

**1. Blunt (R-MO).** Replaces the entire underlying bill with the Rep.
Blunt version of the bill from last year (H.R. 5337), which is
essentially the same as H.R. 556 this year, but with a few differences
(such as a semi-annual CFIUS report in the amendment, instead of an
annual report in the underlying bill; an Inspector General review of
failures to submit the required Treasury Secretary critical
infrastructure report in the amendment, with no such provision in the
underlying bill; and an immediate effective date in the amendment,
instead of a 90-day-after-enactment effective date in the underlying
bill). Rep. Blunt is not expected to offer this amendment.

**2. Blunt (R-MO).** Replaces the entire underlying bill with a version
of bill that is nearly identical to the underlying bill, but with the
requirement for an Inspector General review of failures to submit the
required Treasury Secretary critical infrastructure report in the
amendment, with no such provision in the underlying bill. Rep. Blunt is
not expected to offer this amendment

**3. Frank (D-MA).** Directs CFIUS to develop and agree upon methods for
evaluating compliance with any agreement entered into or condition
imposed with respect to a covered transaction that would allow CFIUS to
adequately assure compliance without:

-   unnecessarily diverting CFIUS resources from assessing any new
    covered transaction for which a written notice has been filed, and
    from 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

-   placing "unnecessary burdens" (not defined) on a party to a covered
    transaction.

Makes the critical infrastructure study in the underlying bill an
*annual* (instead of just a one-time) study. Inserts the Rep. Roy Blunt
language requiring an Inspector General review of failures to submit the
required Treasury Secretary critical infrastructure report. Makes a
variety of clarifying and technical changes.

**4. King (R-IA).** Directs CFIUS, when reviewing or investigating a
covered transaction, to consider the potential effects of the covered
transaction on U.S. efforts to curtail human smuggling.

**5. McCaul (R-TX).** Directs the President and any such agencies as the
President may designate, "in order to assist the Congress in its
oversight role of ensuring the national security of the United States by
ensuring a healthy investment climate," to include in the annual CFIUS
report a detailed discussion of factors, including the effective rate of
taxation on entrepreneurs and businesses and other sources of capital in
the United States as compared to other countries, that affect the number
of filings, changes in the types of business sectors involved in
filings, and changes in the number of investments originating from
specific countries.

**6. McCaul (R-TX).** Directs the President and any such agencies as the
President may designate, "in order to assist the Congress in its
oversight role of ensuring the national security of the United States by
ensuring a healthy investment climate," to include in the annual CFIUS
report a detailed discussion of factors, including the amount of
burdensome regulation in the United States as compared to other
countries, that affect the number of filings, changes in the types of
business sectors involved in filings, and changes in the number of
investments originating from specific countries.

**7. McCaul (R-TX).** Directs the President and any such agencies as the
President may designate, "in order to assist the Congress in its
oversight role of ensuring the national security of the United States by
ensuring a healthy investment climate," to include in the annual CFIUS
report a detailed discussion, including trend information on the number
of jobs in the United States related to foreign investment resulting
from covered transactions, that affect the number of filings, changes in
the types of business sectors involved in filings, and changes in the
number of investments originating from specific countries.

**8. Davis (R-KY).** Strikes the CFIUS roll-call requirement for
approval of a foreign-government-controlled transaction (so that a voice
vote would be allowed).

**9. Davis (R-KY).** Allows the appropriate Secretary to designate the
ability to sign-off on a foreign-government-controlled transaction to
any Senate-confirmed official (instead of just the appropriate Under
Secretary).

**10. Davis (R-KY).** Strikes the requirement that the CFIUS report
include information on the roll-call votes taken to approve covered
transactions.

**11. Barrow (D-GA).** Requires that CFIUS provide written notice of any
proposed covered transaction within five days to Congress, as well as
written notice of any commenced investigation within one day to
Congress. Directs CFIUS to provide "timely responses" (not defined) to
questions from Congress about pending investigations and requires that
CFIUS notify Congress "promptly" (not defined) of any CFIUS decision on
an investigation.

**12. Barrow (D-GA).** Requires that CFIUS reports on completed
investigations also be sent to senators representing states and Members
of Congress representing congressional districts that would be
significantly affected by the covered transaction.