PUBLIC LAW 110–49—JULY 26, 2007

FOREIGN INVESTMENT AND NATIONAL

SECURITY ACT OF 2007

121 STAT. 246 PUBLIC LAW 110–49—JULY 26, 2007

Public Law 110–49

110th Congress

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.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

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.

Foreign

Investment and

National Security

Act of 2007.

50 USC

app. 2061 note.

July 26, 2007

[H.R. 556]

PUBLIC LAW 110–49—JULY 26, 2007 121 STAT. 247

‘‘(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

President.

121 STAT. 248 PUBLIC LAW 110–49—JULY 26, 2007

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 governmentcontrolled transaction; or

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PUBLIC LAW 110–49—JULY 26, 2007 121 STAT. 249

‘‘(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

Deadline.

Federal Register,

publication.

Deadline.

121 STAT. 250 PUBLIC LAW 110–49—JULY 26, 2007

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

PUBLIC LAW 110–49—JULY 26, 2007 121 STAT. 251

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.

Deadline.

121 STAT. 252 PUBLIC LAW 110–49—JULY 26, 2007

‘‘(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

Establishment.

President.

PUBLIC LAW 110–49—JULY 26, 2007 121 STAT. 253

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 counterterrorism efforts, which shall draw on, but not be limited

121 STAT. 254 PUBLIC LAW 110–49—JULY 26, 2007

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.—

PUBLIC LAW 110–49—JULY 26, 2007 121 STAT. 255

‘‘(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.

Deadline.

121 STAT. 256 PUBLIC LAW 110–49—JULY 26, 2007

‘‘(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.’’.

PUBLIC LAW 110–49—JULY 26, 2007 121 STAT. 257

(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

President.

121 STAT. 258 PUBLIC LAW 110–49—JULY 26, 2007

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

50 USC

app. 2170 note.

PUBLIC LAW 110–49—JULY 26, 2007 121 STAT. 259

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

President.

121 STAT. 260 PUBLIC LAW 110–49—JULY 26, 2007

LEGISLATIVE HISTORY—H.R. 556 (S. 1610):

HOUSE REPORTS: No. 110–24, Pt. 1 (Comm. Financial Services).

SENATE REPORTS: No. 110–80 accompanying S. 1610 (Comm. on Banking,

Housing, and Urban Affairs).

CONGRESSIONAL RECORD, Vol. 153 (2007):

Feb. 28, considered and passed House.

June 29, considered and passed Senate, amended, in lieu of S. 1610.

June 10, 11, House considered and concurred in Senate amendment.

Æ

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.

Approved July 26, 2007.

5 USC 5315 note.