II 

109TH CONGRESS 

2D SESSION S. 3171 

To establish in the Department of Commerce an Under Secretary for United 

States Direct Investment, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 25, 2006 

Mr. BINGAMAN (for himself and Mr. LUGAR) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To establish in the Department of Commerce an Under Secretary for United States Direct Investment, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘United States Direct 

5 Investment Act of 2006’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) ADMINISTRATION.—The term ‘‘Administra9 tion’’ means the United States Direct Investment 

10 Administration established under section 4. 


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1 (2) APPROPRIATE CONGRESSIONAL COMMIT2 TEES.—The term ‘‘appropriate congressional com3 mittees’’ means the Committee on Finance and the 

4 Committee on Commerce, Science, and Transpor5 tation of the Senate and the Committee on Energy 

6 and Commerce and Committee on Ways and Means 

7 of the House of Representatives. 

8 (3) CRITICAL HIGH-TECHNOLOGY INDUS9 TRIES.—The term ‘‘critical high-technology indus10 tries’’ means industries involved in technology— 

11 (A) the development of which will— 

12 (i) provide a wide array of economic, 

13 environmental, energy, and defense-related 

14 returns for the United States; and 

15 (ii) ensure United States economic, 

16 environmental, energy, and defense-related 

17 welfare; and 

18 (B) in which the United States has an 

19 abiding interest in creating or maintaining se20 cure domestic sources. 

21 (4) DEPARTMENT.—The term ‘‘Department’’ 

22 means the Department of Commerce. 

23 (5) UNDER SECRETARY.—The term ‘‘Under 

24 Secretary’’ means the Under Secretary of Commerce 


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1 for United States Direct Investment described in 

2 section 4(a). 

3 (6) UNITED STATES DIRECT INVESTMENT PRO4 MOTION COMMITTEE.—The term ‘‘United States Di5 rect Investment Promotion Committee’’ means the 

6 Interagency United States Direct Investment Pro7 motion Committee established under section 7. 

8 (7) WTO AGREEMENT.—The term ‘‘WTO 

9 Agreement’’ means the Agreement establishing the 

10 World Trade Organization entered into on April 15, 

11 1994. 

12 SEC. 3. RELATION TO CFIUS. 

13 The provisions of this Act shall not affect the imple14 mentation or application of section 721 of the Defense 

15 Production Act of 1950 (50 U.S.C. App. 2170) and the 

16 activities of the Committee on Foreign Investment in the 

17 United States (or any successor committee). 

18 SEC. 4. ESTABLISHMENT OF UNITED STATES DIRECT IN19 VESTMENT ADMINISTRATION. 

20 (a) IN GENERAL.—There is established in the De21 partment of Commerce a United States Direct Investment 

22 Administration which shall be headed by an Under Sec23 retary of Commerce for United States Direct Investment. 

24 The Under Secretary shall be appointed by the President, 

25 by and with the advice and consent of the Senate, and 


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1 shall be compensated at the rate provided for level III of 

2 the Executive Schedule in section 5314 of title 5, United 

3 States Code. 

4 (b) DEPUTY UNDER SECRETARY.—There shall be in 

5 the Administration a Deputy Under Secretary for United 

6 States Direct Investment who shall be appointed by the 

7 President, by and with the advice of the Senate, and shall 

8 be compensated at the rate provided for level IV of the 

9 Executive Schedule in section 5315 of title 5, United 

10 States Code. 

11 (c) STAFF.—The Under Secretary may appoint such 

12 additional personnel to serve in the Administration as the 

13 Under Secretary determines necessary. 

14 (d) DUTIES.—The Under Secretary, in cooperation 

15 with the Economics and Statistics Administration and 

16 other offices at the Department, shall— 

17 (1) collect and analyze data related to the flow 

18 of direct investment in the United States and 

19 throughout the world, as described in section 5; 

20 (2) submit to the appropriate congressional 

21 committees an annual United States Direct Invest22 ment Report, as described in section 6; 

23 (3) develop and publish an annual United 

24 States Direct Investment Agenda; 


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1 (4) assume responsibility as the lead agency for 

2 advocating and implementing strategic policies that 

3 will increase direct investment in the United States; 

4 (5) coordinate with the President regarding im5 plementation of section 721 of the Defense Produc6 tion Act of 1950 (50 U.S.C. App. 2170) and the ac7 tivities of the Committee on Foreign Investment in 

8 the United States (or any successor committee); and 

9 (6) in cooperation with the Economic Develop10 ment Administration, administer an investment zone 

11 program for communities that have been negatively 

12 impacted by either trade or economic cycles. 

13 (e) CONFORMING AMENDMENTS.— 

14 (1) Section 5314 of title 5, United States Code, 

15 is amended by adding at the end the following: 

16 ‘‘Under Secretary of Commerce for United States 

17 Direct Investment.’’. 

18 (2) Section 5315 of title 5, United States Code, 

19 is amended by adding at the end the following: 

20 ‘‘Deputy Under Secretary of Commerce for United 

21 States Direct Investment.’’. 

22 SEC. 5. ANNUAL DIRECT INVESTMENT REPORT. 

23 (a) ANNUAL DIRECT INVESTMENT REPORT.—Not 

24 later than April 30, 2007, and on or before March 31 of 

25 each succeeding calendar year, the Under Secretary shall 


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1 submit a report on the data identified and the analysis 

2 described in subsection (b) for the preceding calendar year 

3 (which shall be known as the ‘‘Annual Direct Investment 

4 Report’’). The Report shall be submitted to the President 

5 and the appropriate congressional committees. 

6 (b) DATA IDENTIFICATION.— 

7 (1) IN GENERAL.—The data identified and 

8 analysis for the Report described in subsection (a) 

9 means the data identified and analyzed by the 

10 Under Secretary of Commerce, in cooperation with 

11 the Economic and Statistics Administration and 

12 other offices at the Department and with the assist13 ance of other departments and agencies, including 

14 the Office of the United States Trade Representa15 tive, for the preceding calendar year regarding the 

16 following: 

17 (A) Policies, programs, and practices at 

18 the State and regional level designed to attract 

19 direct investment. 

20 (B) The amount of direct investment at21 tracted in each such State and region. 

22 (C) Policies, programs, and practices in 

23 foreign countries designed to attract direct in24 vestment, and the amount of direct investment 

25 attracted in each such foreign country. 


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1 (D) A comparison of the levels of direct in2 vestment attracted in the United States and in 

3 foreign countries, including a matrix of inputs 

4 affecting the level of direct investment. 

5 (E) Specific sectors in the United States 

6 and in foreign countries in which direct invest7 ments are being made, including the specific 

8 amounts invested in each sector, with particular 

9 emphasis on critical high-technology industries. 

10 (F) Trends in direct investment, with par11 ticular emphasis on critical high-technology in12 dustries. 

13 (G) The best policy and practices at the 

14 Federal, State, and regional levels regarding di15 rect investment policy, with specific reference to 

16 programs and policies that have the greatest 

17 potential to increase direct investment in the 

18 United States and enhance United States com19 petitive advantage relative to foreign countries. 

20 Particular emphasis should be given to attract21 ing direct investment in critical high-technology 

22 industries. 

23 (H) Policies, programs, and practices in 

24 foreign countries designed to attract direct in25 vestment that are not in compliance with the 


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1 WTO Agreement and the agreements annexed 

2 to that Agreement. 

3 (2) CERTAIN FACTORS TAKEN INTO ACCOUNT

4 IN MAKING ANALYSIS.—In making any analysis 

5 under paragraph (1), the Under Secretary shall take 

6 into account— 

7 (A) the relative impact of policies, pro8 grams, and practices of foreign governments on 

9 United States commerce; 

10 (B) the availability of information to docu11 ment the effect of policies, programs, and prac12 tices; 

13 (C) the extent to which such act, policy, or 

14 practice is subject to international agreements 

15 to which the United States is a party; and 

16 (D) the impact trends in direct investment 

17 have had on— 

18 (i) the competitiveness of United 

19 States industries in the international econ20 omy, with particular emphasis on critical 

21 high-technology industries; 

22 (ii) the value of goods and services ex23 ported from and imported to the United 

24 States; 


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1 (iii) employment in the United States, 

2 in particular high-wage employment; and 

3 (iv) the provision of health care, pen4 sions, and other benefits provided by com5 panies based in the United States. 

6 (c) ASSISTANCE OF OTHER AGENCIES.— 

7 (1) FURNISHING OF INFORMATION.—The head 

8 of each department or agency of the executive 

9 branch of the Government, including any inde10 pendent agency, is authorized and directed to fur11 nish to the Under Secretary, upon request, such 

12 data, reports, and other information as is necessary 

13 for the Under Secretary to carry out the functions 

14 under this Act. 

15 (2) RESTRICTIONS ON RELEASE OR USE OF IN16 FORMATION.—Nothing in this subsection shall au17 thorize the release of information to, or the use of 

18 information by, the Under Secretary in a manner in19 consistent with law or any procedure established 

20 pursuant thereto. 

21 (3) PERSONNEL AND SERVICES.—The head of 

22 any department, agency, or instrumentality of the 

23 United States may detail such personnel and may 

24 furnish such services, with or without reimburse25 ment, as the Under Secretary may request to assist 


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1 in carrying out the functions of the Under Sec2 retary. 

3 (d) ANNUAL REVISIONS AND UPDATES.—The Under 

4 Secretary shall annually revise and update the Report de5 scribed in subsection (a). 

6 SEC. 6. ANNUAL DIRECT INVESTMENT AGENDA. 

7 (a) IN GENERAL.—Not later than April 30, 2007, 

8 and on or before March 31 of each succeeding calendar, 

9 the Under Secretary shall submit an agenda based on the 

10 data and analysis described in section 5 for the preceding 

11 calendar year, to the President and the appropriate con12 gressional committees. The agenda shall be known as the 

13 ‘‘Annual Direct Investment Agenda’’ and shall include— 

14 (1) an evaluation of the research and develop15 ment program expenditures being made in the 

16 United States with particular emphasis to critical 

17 high-technology industries considered essential to 

18 United States economic security and necessary for 

19 long-term United States economic competitiveness in 

20 world markets; and 

21 (2) proposals that identify the policies, pro22 grams, and practices in foreign countries and that 

23 the United States should pursue that— 

24 (A) encourage direct investment in the 

25 United States that will enhance the country’s 


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1 competitive advantage relative to foreign coun2 tries, with particular emphasis on critical high3 technology industries; 

4 (B) enhance the viability of the manufac5 turing sector in the United States; 

6 (C) increase opportunities for high-wage 

7 jobs and promote high levels of employment; 

8 (D) encourage economic growth; and 

9 (E) increase opportunities for the provision 

10 of health care, pensions, and other benefits pro11 vided by companies based in the United States. 

12 (b) CONSULTATION WITH CONGRESS ON ANNUAL

13 DIRECT INVESTMENT AGENDA.—The Under Secretary 

14 shall keep the appropriate congressional committees cur15 rently informed with respect to the Annual Direct Invest16 ment Agenda and implementation of the Agenda. After the 

17 submission of the Agenda, the Under Secretary shall also 

18 consult periodically with, and take into account the views 

19 of, the appropriate congressional committees regarding 

20 implementation of the Agenda. 

21 SEC. 7. UNITED STATES DIRECT INVESTMENT PROMOTION 

22 COMMITTEE. 

23 (a) ESTABLISHMENT.—The President shall establish 

24 and the Under Secretary shall assume lead responsibility 

25 for an Interagency United States Direct Investment ProVerDate Aug 31 2005 01:51 Jun 02, 2006 Jkt 049200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S3171.IS S3171

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1 motion Committee. The functions of the Committee shall 

2 be to— 

3 (1) coordinate all United States Government ac4 tivities related to the promotion of direct investment 

5 in the United States; 

6 (2) advocate and implement strategic policies, 

7 programs, and practices that will increase direct in8 vestment in the United States; 

9 (3) train United States Government officials to 

10 pursue strategic policies, programs, and practices 

11 that will increase direct investment in the United 

12 States; 

13 (4) consult with business, labor, State, regional, 

14 and local government officials on strategic policies, 

15 programs, and practices that will increase direct in16 vestment in the United States; 

17 (5) develop and publish materials that can be 

18 used by Federal, State, regional, and local govern19 ment officials to increase direct investment in the 

20 United States; 

21 (6) create and maintain a database of direct in22 vestment opportunities in the United States; 

23 (7) create and maintain an interactive website 

24 that can be used to access direct investment oppor25 tunities in different sectors and geographical areas 


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1 of the United States, with particular emphasis on 

2 critical high-technology industries; 

3 (8) coordinate direct investment marketing ac4 tivities with State Economic Development Agencies; 

5 and 

6 (9) host regular meetings and discussions with 

7 State, regional, and local economic development offi8 cials to consider best policy practices to increase di9 rect investment in the United States. 

10 (b) MEMBERS.—The Committee shall be composed of 

11 the following: 

12 (1) The Secretary of Commerce. 

13 (2) The United States Trade Representative. 

14 (3) Members of the United States International 

15 Trade Commission. 

16 (4) The Secretary of the Treasury. 

17 (5) Members of the National Economic Council. 

18 (6) The Secretary of Agriculture. 

19 (7) Such other officials as the President deter20 mines to be necessary. 

21 SEC. 8. DESIGNATION OF ADDITIONAL RENEWAL COMMU22 NITIES. 

23 Section 1400E of the Internal Revenue Code of 1986 

24 (relating to designation of renewal communities) is amend25 ed by adding at the end the following new subsection: 


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1 ‘‘(h) ADDITIONAL DESIGNATIONS PERMITTED.— 

2 ‘‘(1) IN GENERAL.—In addition to the areas 

3 designated under subsection (a), the Under Sec4 retary of Commerce for United States Direct Invest5 ment, after consultation with the Secretary of the 

6 Treasury, may designate in the aggregate an addi7 tional 10 nominated areas as renewal communities 

8 under this section, subject to the availability of eligi9 ble nominated areas. 

10 ‘‘(2) PERIOD DESIGNATIONS MAY BE MADE AND

11 TAKE EFFECT.—A designation may be made under 

12 this subsection after the date of the enactment of 

13 this subsection and before the date which is 5 years 

14 after such date of enactment. Subject to subpara15 graphs (B) and (C) of subsection (b)(1), a designa16 tion made under this subsection shall remain in ef17 fect during the period beginning with such designa18 tion and ending on the date which is 8 years after 

19 such designation. 

20 ‘‘(3) APPLICATION OF RULES.—Except as oth21 erwise provided in paragraph (1), the rules of this 

22 section shall apply to designations under this sub23 section.’’. 

Æ 


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