H. R. 5515—538 

TITLE XVII—REVIEW OF FOREIGN 

INVESTMENT AND EXPORT CONTROLS 

Subtitle A—Committee on Foreign Investment in the United States 

Sec. 1701. Short title: Foreign Investment Risk Review Modernization Act of 2018. 

Sec. 1702. Findings; sense of Congress. 

Sec. 1703. Definitions. 

Sec. 1704. Acceptance of written notices. 

Sec. 1705. Inclusion of partnership and side agreements in notice. 

Sec. 1706. Declarations for certain covered transactions. 

Sec. 1707. Stipulations regarding transactions. 

Sec. 1708. Authority for unilateral initiation of reviews. 

Sec. 1709. Timing for reviews and investigations. 

Sec. 1710. Identification of non-notified and non-declared transactions. 

Sec. 1711. Submission of certifications to Congress. 

Sec. 1712. Analysis by Director of National Intelligence. 

Sec. 1713. Information sharing. 

Sec. 1714. Action by the President. 

Sec. 1715. Judicial review. 

Sec. 1716. Considerations for regulations. 

Sec. 1717. Membership and staff of Committee. 

Sec. 1718. Actions by the Committee to address national security risks. 

Sec. 1719. Modification of annual report and other reporting requirements. 

Sec. 1720. Certification of notices and information. 

Sec. 1721. Implementation plans. 

Sec. 1722. Assessment of need for additional resources for Committee. 

Sec. 1723. Funding. 

Sec. 1724. Centralization of certain Committee functions. 

Sec. 1725. Conforming amendments. 

Sec. 1726. Briefing on information from transactions reviewed by Committee on 

Foreign Investment in the United States relating to foreign efforts to influence democratic institutions and processes. 

Sec. 1727. Effective date. 

Sec. 1728. Severability. 

Subtitle B—Export Control Reform 

Sec. 1741. Short title. 

Sec. 1742. Definitions. 

PART I—AUTHORITY AND ADMINISTRATION OF CONTROLS 

Sec. 1751. Short title. 
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Sec. 1752. Statement of policy. 

Sec. 1753. Authority of the President. 

Sec. 1754. Additional authorities. 

Sec. 1755. Administration of export controls. 

Sec. 1756. Licensing. 

Sec. 1757. Compliance assistance. 

Sec. 1758. Requirements to identify and control the export of emerging and 

foundational technologies. Sec. 1759. Review relating to countries subject to comprehensive United States 

arms embargo. Sec. 1760. Penalties. 

Sec. 1761. Enforcement. 

Sec. 1762. Administrative procedure. 

Sec. 1763. Review of interagency dispute resolution process. 

Sec. 1764. Consultation with other agencies on commodity classification. 

Sec. 1765. Annual report to Congress. 

Sec. 1766. Repeal. 

Sec. 1767. Effect on other Acts. 

Sec. 1768. Transition provisions. 

PART II—ANTI-BOYCOTT ACT OF 2018 

Sec. 1771. Short title. 

Sec. 1772. Statement of policy. 

Sec. 1773. Foreign boycotts. 

Sec. 1774. Enforcement. 

PART III—ADMINISTRATIVE AUTHORITIES 

Sec. 1781. Under Secretary of Commerce for Industry and Security. 

Subtitle C—Miscellaneous 

Sec. 1791. Extension of authority. 

Sec. 1792. Limitation on cancellation of designation of Secretary of the Air Force 

as Department of Defense Executive Agent for a certain Defense Production Act program. Sec. 1793. Review of and report on certain defense technologies critical to the 

United States maintaining superior military capabilities. 

Subtitle A—Committee on Foreign 

Investment in the United States 

SEC. 1701. SHORT TITLE: FOREIGN INVESTMENT RISK REVIEW MODERNIZATION ACT OF 2018. 

This subtitle may be cited as the ‘‘Foreign Investment Risk 

Review Modernization Act of 2018’’. 

SEC. 1702. FINDINGS; SENSE OF CONGRESS. 

(a) FINDINGS.—Congress makes the following findings: 

(1) According to a February 2016 report by the International Trade Administration of the Department of Commerce, 

12,000,000 United States workers, equivalent to 8.5 percent 

of the labor force, have jobs resulting from foreign investment, 

including 3,500,000 jobs in the manufacturing sector alone. 

(2) In 2016, new foreign direct investment in United States 

manufacturing totaled $129,400,000,000. 

(3) The Bureau of Economic Analysis of the Department 

of Commerce concluded that, in 2015— 

(A) foreign-owned affiliates in the United States— 

(i) contributed $894,500,000,000 in value added 

to the United States economy; 

(ii) exported goods valued at $352,800,000,000, 

accounting for nearly a quarter of total exports of 

goods from the United States; and 

(iii) undertook $56,700,000,000 in research and 

development; and 
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(B) the 7 countries investing the most in the United 

States, all of which are United States allies (the United 

Kingdom, Japan, Germany, France, Canada, Switzerland, 

and the Netherlands) accounted for 72.1 percent of the 

value added by foreign-owned affiliates in the United States 

and more than 80 percent of research and development 

expenditures by such entities. 

(4) According to the Government Accountability Office, from 

2011 to 2016, the number of transactions reviewed by the 

Committee on Foreign Investment in the United States (commonly referred to as ‘‘CFIUS’’) grew by 55 percent, while the 

staff of the Committees assigned to the reviews increased by 

11 percent. 

(5) According to a February 2018 report of the Government 

Accountability Office on the Committee on Foreign Investment 

in the United States (GAO–18–249): ‘‘Officials from Treasury 

and other member agencies are aware of pressures on their 

CFIUS staff given the current workload and have expressed 

concerns about possible workload increases.’’. The Government 

Accountability Office concluded: ‘‘Without attaining an understanding of the staffing levels needed to address the current 

and future CFIUS workload, particularly if legislative changes 

to CFIUS’s authorities further expand its workload, CFIUS 

may be limited in its ability to fulfill its objectives and address 

threats to the national security of the United States.’’. 

(6) On March 30, 1954, Dwight David Eisenhower—fivestar general, Supreme Allied Commander, and 34th President 

of the United States—in his ‘‘Special Message to the Congress 

on Foreign Economic Policy’’, counseled: ‘‘Great mutual advantages to buyer and seller, to producer and consumer, to investor 

and to the community where investment is made, accrue from 

high levels of trade and investment.’’. President Eisenhower 

continued: ‘‘The internal strength of the American economy 

has evolved from such a system of mutual advantage. In the 

press of other problems and in the haste to meet emergencies, 

this nation—and many other nations of the free world—have 

all too often lost sight of this central fact.’’. President Eisenhower concluded: ‘‘If we fail in our trade policy, we may fail 

in all. Our domestic employment, our standard of living, our 

security, and the solidarity of the free world—all are involved.’’. 

(b) SENSE OF CONGRESS.—It is the sense of Congress that— 

(1) foreign investment provides substantial economic benefits to the United States, including the promotion of economic 

growth, productivity, competitiveness, and job creation, thereby 

enhancing national security; 

(2) maintaining the commitment of the United States to 

an open investment policy encourages other countries to reciprocate and helps open new foreign markets for United States 

businesses; 

(3) it should continue to be the policy of the United States 

to enthusiastically welcome and support foreign investment, 

consistent with the protection of national security; 

(4) at the same time, the national security landscape has 

shifted in recent years, and so has the nature of the investments 

that pose the greatest potential risk to national security, which 

warrants an appropriate modernization of the processes and 
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authorities of the Committee on Foreign Investment in the 

United States and of the United States export control system; 

(5) the Committee on Foreign Investment in the United 

States plays a critical role in protecting the national security 

of the United States, and, therefore, it is essential that the 

member agencies of the Committee are adequately resourced 

and able to hire appropriately qualified individuals in a timely 

manner, and that those individuals’ security clearances are 

processed as a high priority; 

(6) the President should conduct a more robust international outreach effort to urge and help allies and partners 

of the United States to establish processes that are similar 

to the Committee on Foreign Investment in the United States 

to screen foreign investments for national security risks and 

to facilitate coordination; 

(7) the President should lead a collaborative effort with 

allies and partners of the United States to strengthen the 

multilateral export control regime; 

(8) any penalties imposed by the United States Government 

with respect to an individual or entity pursuant to a determination that the individual or entity has violated sanctions imposed 

by the United States or the export control laws of the United 

States should not be reversed for reasons unrelated to the 

national security of the United States; and 

(9) the Committee on Foreign Investment in the United 

States should continue to review transactions for the purpose 

of protecting national security and should not consider issues 

of national interest absent a national security nexus. 

(c) SENSE OF CONGRESS ON CONSIDERATION OF COVERED TRANSACTIONS.—It is the sense of Congress that, when considering 

national security risks, the Committee on Foreign Investment in 

the United States may consider— 

(1) whether a covered transaction involves a country of 

special concern that has a demonstrated or declared strategic 

goal of acquiring a type of critical technology or critical infrastructure that would affect United States leadership in areas 

related to national security; 

(2) the potential national security-related effects of the 

cumulative control of, or pattern of recent transactions 

involving, any one type of critical infrastructure, energy asset, 

critical material, or critical technology by a foreign government 

or foreign person; 

(3) whether any foreign person engaging in a covered transaction with a United States business has a history of complying 

with United States laws and regulations; 

(4) the control of United States industries and commercial 

activity by foreign persons as it affects the capability and 

capacity of the United States to meet the requirements of 

national security, including the availability of human resources, 

products, technology, materials, and other supplies and services, and in considering ‘‘the availability of human resources’’, 

should construe that term to include potential losses of such 

availability resulting from reductions in the employment of 

United States persons whose knowledge or skills are critical 

to national security, including the continued production in the 

United States of items that are likely to be acquired by the 
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Department of Defense or other Federal departments or agencies for the advancement of the national security of the United 

States; 

(5) the extent to which a covered transaction is likely 

to expose, either directly or indirectly, personally identifiable 

information, genetic information, or other sensitive data of 

United States citizens to access by a foreign government or 

foreign person that may exploit that information in a manner 

that threatens national security; and 

(6) whether a covered transaction is likely to have the 

effect of exacerbating or creating new cybersecurity 

vulnerabilities in the United States or is likely to result in 

a foreign government gaining a significant new capability to 

engage in malicious cyber-enabled activities against the United 

States, including such activities designed to affect the outcome 

of any election for Federal office. 

SEC. 1703. DEFINITIONS. 

Section 721(a) of the Defense Production Act of 1950 (50 U.S.C. 

4565(a)) is amended to read as follows: 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) CLARIFICATION.—The term ‘national security’ shall be 

construed so as to include those issues relating to ‘homeland 

security’, including its application to critical infrastructure. 

‘‘(2) COMMITTEE; CHAIRPERSON.—The terms ‘Committee’ 

and ‘chairperson’ mean the Committee on Foreign Investment 

in the United States and the chairperson thereof, respectively. 

‘‘(3) CONTROL.—The term ‘control’ means the power, direct 

or indirect, whether exercised or not exercised, to determine, 

direct, or decide important matters affecting an entity, subject 

to regulations prescribed by the Committee. 

‘‘(4) COVERED TRANSACTION.— 

‘‘(A) IN GENERAL.—Except as otherwise provided, the 

term ‘covered transaction’ means— 

‘‘(i) any transaction described in subparagraph 

(B)(i); and 

‘‘(ii) any transaction described in clauses (ii) 

through (v) of subparagraph (B) that is proposed, 

pending, or completed on or after the effective date 

set forth in section 1727 of the Foreign Investment 

Risk Review Modernization Act of 2018. 

‘‘(B) TRANSACTIONS DESCRIBED.—A transaction 

described in this subparagraph is any of the following: 

‘‘(i) Any merger, acquisition, or takeover that is 

proposed or pending after August 23, 1988, by or with 

any foreign person that could result in foreign control 

of any United States business, including such a merger, 

acquisition, or takeover carried out through a joint 

venture. 

‘‘(ii) Subject to subparagraphs (C) and (E), the 

purchase or lease by, or a concession to, a foreign 

person of private or public real estate that— 

‘‘(I) is located in the United States; 

‘‘(II)(aa) is, is located within, or will function 

as part of, an air or maritime port; or 

‘‘(bb)(AA) is in close proximity to a United 

States military installation or another facility or 
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property of the United States Government that 

is sensitive for reasons relating to national security; 

‘‘(BB) could reasonably provide the foreign person the ability to collect intelligence on activities 

being conducted at such an installation, facility, 

or property; or 

‘‘(CC) could otherwise expose national security 

activities at such an installation, facility, or property to the risk of foreign surveillance; and 

‘‘(III) meets such other criteria as the Committee prescribes by regulation, except that such 

criteria may not expand the categories of real 

estate to which this clause applies beyond the 

categories described in subclause (II). 

‘‘(iii) Any other investment, subject to regulations 

prescribed under subparagraphs (D) and (E), by a foreign person in any unaffiliated United States business 

that— 

‘‘(I) owns, operates, manufactures, supplies, or 

services critical infrastructure; 

‘‘(II) produces, designs, tests, manufactures, 

fabricates, or develops one or more critical technologies; or 

‘‘(III) maintains or collects sensitive personal 

data of United States citizens that may be 

exploited in a manner that threatens national 

security. 

‘‘(iv) Any change in the rights that a foreign person 

has with respect to a United States business in which 

the foreign person has an investment, if that change 

could result in— 

‘‘(I) foreign control of the United States business; or 

‘‘(II) an investment described in clause (iii). 

‘‘(v) Any other transaction, transfer, agreement, 

or arrangement, the structure of which is designed 

or intended to evade or circumvent the application 

of this section, subject to regulations prescribed by 

the Committee. 

‘‘(C) REAL ESTATE TRANSACTIONS.— 

‘‘(i) EXCEPTION FOR CERTAIN REAL ESTATE TRANSACTIONS.—A real estate purchase, lease, or concession 

described in subparagraph (B)(ii) does not include a 

purchase, lease, or concession of— 

‘‘(I) a single ‘housing unit’, as defined by the 

Census Bureau; or 

‘‘(II) real estate in ‘urbanized areas’, as defined 

by the Census Bureau in the most recent census, 

except as otherwise prescribed by the Committee 

in regulations in consultation with the Secretary 

of Defense. 

‘‘(ii) DEFINITION OF CLOSE PROXIMITY.—With 

respect to a real estate purchase, lease, or concession 

described in subparagraph (B)(ii)(II)(bb)(AA), the Committee shall prescribe regulations to ensure that the 
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term ‘close proximity’ refers only to a distance or dis- tances within which the purchase, lease, or concession 

of real estate could pose a national security risk in 

connection with a United States military installation 

or another facility or property of the United States 

Government described in that subparagraph. 

‘‘(D) OTHER INVESTMENTS.— 

‘‘(i) OTHER INVESTMENT DEFINED.—For purposes of 

subparagraph (B)(iii), the term ‘other investment’ 

means an investment, direct or indirect, by a foreign 

person in a United States business described in that 

subparagraph that is not an investment described in 

subparagraph (B)(i) and that affords the foreign person— 

‘‘(I) access to any material nonpublic technical 

information in the possession of the United States 

business; 

‘‘(II) membership or observer rights on the 

board of directors or equivalent governing body 

of the United States business or the right to nominate an individual to a position on the board of 

directors or equivalent governing body; or 

‘‘(III) any involvement, other than through 

voting of shares, in substantive decisionmaking 

of the United States business regarding— 

‘‘(aa) the use, development, acquisition, 

safekeeping, or release of sensitive personal 

data of United States citizens maintained or 

collected by the United States business; 

‘‘(bb) the use, development acquisition, or 

release of critical technologies; or 

‘‘(cc) the management, operation, manufacture, or supply of critical infrastructure. 

‘‘(ii) MATERIAL NONPUBLIC TECHNICAL INFORMATION 

DEFINED.— 

‘‘(I) IN GENERAL.—For purposes of clause (i)(I), 

and subject to regulations prescribed by the Committee, the term ‘material nonpublic technical 

information’ means information that— 

‘‘(aa) provides knowledge, know-how, or 

understanding, not available in the public 

domain, of the design, location, or operation 

of critical infrastructure; or 

‘‘(bb) is not available in the public domain, 

and is necessary to design, fabricate, develop, 

test, produce, or manufacture critical technologies, including processes, techniques, or 

methods. 

‘‘(II) EXEMPTION FOR FINANCIAL INFORMATION.—Notwithstanding subclause (I), for purposes 

of this subparagraph, the term ‘material nonpublic 

technical information’ does not include financial 

information regarding the performance of a United 

States business. 

‘‘(iii) REGULATIONS.— 

‘‘(I) IN GENERAL.—The Committee shall prescribe regulations providing guidance on the types 
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of transactions that the Committee considers to 

be ‘other investment’ for purposes of subparagraph 

(B)(iii). 

‘‘(II) UNITED STATES BUSINESSES THAT OWN, 

OPERATE, MANUFACTURE, SUPPLY, OR SERVICE CRITICAL INFRASTRUCTURE.—The regulations prescribed by the Committee with respect to an investment described in subparagraph (B)(iii)(I) shall— 

‘‘(aa) specify the critical infrastructure 

subject to that subparagraph based on criteria 

intended to limit application of that subparagraph to the subset of critical infrastructure 

that is likely to be of importance to the 

national security of the United States; and 

‘‘(bb) enumerate specific types and examples of such critical infrastructure. 

‘‘(iv) SPECIFIC CLARIFICATION FOR INVESTMENT 

FUNDS.— 

‘‘(I) TREATMENT OF CERTAIN INVESTMENT FUND 

INVESTMENTS.—Notwithstanding clause (i)(II) and 

subject to regulations prescribed by the Committee, an indirect investment by a foreign person 

in a United States business described in subparagraph (B)(iii) through an investment fund that 

affords the foreign person (or a designee of the 

foreign person) membership as a limited partner 

or equivalent on an advisory board or a committee 

of the fund shall not be considered an ‘other investment’ for purposes of subparagraph (B)(iii) if— 

‘‘(aa) the fund is managed exclusively by 

a general partner, a managing member, or 

an equivalent; 

‘‘(bb) the general partner, managing 

member, or equivalent is not a foreign person; 

‘‘(cc) the advisory board or committee does 

not have the ability to approve, disapprove, 

or otherwise control— 

‘‘(AA) investment decisions of the 

fund; or 

‘‘(BB) decisions made by the general 

partner, managing member, or equivalent 

related to entities in which the fund is 

invested; 

‘‘(dd) the foreign person does not otherwise 

have the ability to control the fund, including 

the authority— 

‘‘(AA) to approve, disapprove, or otherwise control investment decisions of the 

fund; 

‘‘(BB) to approve, disapprove, or otherwise control decisions made by the general 

partner, managing member, or equivalent 

related to entities in which the fund is 

invested; or 

‘‘(CC) to unilaterally dismiss, prevent 

the dismissal of, select, or determine the 
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compensation of the general partner, managing member, or equivalent; 

‘‘(ee) the foreign person does not have 

access to material nonpublic technical information as a result of its participation on the 

advisory board or committee; and 

‘‘(ff) the investment otherwise meets the 

requirements of this subparagraph. 

‘‘(II) TREATMENT OF CERTAIN WAIVERS.— 

‘‘(aa) IN GENERAL.—For the purposes of 

items (cc) and (dd) of subclause (I) and except 

as provided in item (bb), a waiver of a potential 

conflict of interest, a waiver of an allocation 

limitation, or a similar activity, applicable to 

a transaction pursuant to the terms of an 

agreement governing an investment fund shall 

not be considered to constitute control of 

investment decisions of the fund or decisions 

relating to entities in which the fund is 

invested. 

‘‘(bb) EXCEPTION.—The Committee may 

prescribe regulations providing for exceptions 

to item (aa) for extraordinary circumstances. 

‘‘(v) EXCEPTION FOR AIR CARRIERS.—For purposes 

of subparagraph (B)(iii), the term ‘other investment’ 

does not include an investment involving an air carrier, 

as defined in section 40102(a)(2) of title 49, United 

States Code, that holds a certificate issued under section 41102 of that title. 

‘‘(vi) RULE OF CONSTRUCTION.—Any definition of 

‘critical infrastructure’ established under any provision 

of law other than this section shall not be determinative for purposes of this section. 

‘‘(E) COUNTRY SPECIFICATION.—The Committee shall 

prescribe regulations that further define the term ‘foreign 

person’ for purposes of clauses (ii) and (iii) of subparagraph 

(B). In prescribing such regulations, the Committee shall 

specify criteria to limit the application of such clauses 

to the investments of certain categories of foreign persons. 

Such criteria shall take into consideration how a foreign 

person is connected to a foreign country or foreign government, and whether the connection may affect the national 

security of the United States. 

‘‘(F) TRANSFERS OF CERTAIN ASSETS PURSUANT TO BANKRUPTCY PROCEEDINGS OR OTHER DEFAULTS.—The Committee shall prescribe regulations to clarify that the term 

‘covered transaction’ includes any transaction described in 

subparagraph (B) that arises pursuant to a bankruptcy 

proceeding or other form of default on debt. 

‘‘(5) CRITICAL INFRASTRUCTURE.—The term ‘critical infrastructure’ means, subject to regulations prescribed by the Committee, 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. 

‘‘(6) CRITICAL TECHNOLOGIES.— 
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‘‘(A) IN GENERAL.—The term ‘critical technologies’ 

means the following: 

‘‘(i) Defense articles or defense services included 

on the United States Munitions List set forth in the 

International Traffic in Arms Regulations under subchapter M of chapter I of title 22, Code of Federal 

Regulations. 

‘‘(ii) Items included on the Commerce Control List 

set forth in Supplement No. 1 to part 774 of the Export 

Administration Regulations under subchapter C of 

chapter VII of title 15, Code of Federal Regulations, 

and controlled— 

‘‘(I) pursuant to multilateral regimes, 

including for reasons relating to national security, 

chemical and biological weapons proliferation, 

nuclear nonproliferation, or missile technology; or 

‘‘(II) for reasons relating to regional stability 

or surreptitious listening. 

‘‘(iii) Specially designed and prepared nuclear 

equipment, parts and components, materials, software, 

and technology covered by part 810 of title 10, Code 

of Federal Regulations (relating to assistance to foreign 

atomic energy activities). 

‘‘(iv) Nuclear facilities, equipment, and material 

covered by part 110 of title 10, Code of Federal Regula- tions (relating to export and import of nuclear equip- ment and material). 

‘‘(v) Select agents and toxins covered by part 331 

of title 7, Code of Federal Regulations, part 121 of 

title 9 of such Code, or part 73 of title 42 of such 

Code. 

‘‘(vi) Emerging and foundational technologies con- trolled pursuant to section 1758 of the Export Control 

Reform Act of 2018. 

‘‘(B) RECOMMENDATIONS.— 

‘‘(i) IN GENERAL.—The chairperson may recommend 

technologies for identification under the interagency 

process set forth in section 1758(a) of the Export Control Reform Act of 2018. 

‘‘(ii) MATTERS INFORMING RECOMMENDATIONS.— 

Recommendations by the chairperson under clause (i) 

shall draw upon information arising from reviews and 

investigations conducted under subsection (b), notices 

submitted under subsection (b)(1)(C)(i), declarations 

filed under subsection (b)(1)(C)(v), and non-notified and 

non-declared transactions identified under subsection 

(b)(1)(H). 

‘‘(7) FOREIGN GOVERNMENT-CONTROLLED TRANSACTION.— 

The term ‘foreign government-controlled transaction’ means any 

covered transaction that could result in the control of any 

United States business by a foreign government or an entity 

controlled by or acting on behalf of a foreign government. 

‘‘(8) INTELLIGENCE COMMUNITY.—The term ‘intelligence 

community’ has the meaning given that term in section 3(4) 

of the National Security Act of 1947 (50 U.S.C. 3003(4)). 

‘‘(9) INVESTMENT.—The term ‘investment’ means the 

acquisition of equity interest, including contingent equity 
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interest, as further defined in regulations prescribed by the 

Committee. 

‘‘(10) LEAD AGENCY.—The term ‘lead agency’ means the 

agency or agencies designated as the lead agency or agencies 

pursuant to subsection (k)(5). 

‘‘(11) PARTY.—The term ‘party’ has the meaning given that 

term in regulations prescribed by the Committee. 

‘‘(12) UNITED STATES.—The term ‘United States’ means the 

several States, the District of Columbia, and any territory 

or possession of the United States. 

‘‘(13) UNITED STATES BUSINESS.—The term ‘United States 

business’ means a person engaged in interstate commerce in 

the United States.’’. 

SEC. 1704. ACCEPTANCE OF WRITTEN NOTICES. 

Section 721(b)(1)(C)(i) of the Defense Production Act of 1950 

(50 U.S.C. 4565(b)(1)(C)(i)) is amended— 

(1) by striking ‘‘Any party’’ and inserting the following: 

‘‘(I) IN GENERAL.—Any party’’; and 

(2) by adding at the end the following: 

‘‘(II) COMMENTS AND ACCEPTANCE.— 

‘‘(aa) IN GENERAL.—Subject to item (cc), 

the Committee shall provide comments on a 

draft or formal written notice or accept a 

formal written notice submitted under subclause (I) with respect to a covered transaction 

not later than the date that is 10 business 

days after the date of submission of the draft 

or formal written notice. 

‘‘(bb) COMPLETENESS.—If the Committee 

determines that a draft or formal written 

notice described in item (aa) is not complete, 

the Committee shall notify the party or parties 

to the transaction in writing that the notice 

is not complete and provide an explanation 

of all material respects in which the notice 

is incomplete. 

‘‘(cc) STIPULATIONS REQUIRED.—The 

timing requirement under item (aa) shall 

apply only in a case in which the parties stipulate under clause (vi) that the transaction is 

a covered transaction.’’. 

SEC. 1705. INCLUSION OF PARTNERSHIP AND SIDE AGREEMENTS IN 

NOTICE. 

Section 721(b)(1)(C) of the Defense Production Act of 1950 

(50 U.S.C. 4565(b)(1)(C)) is amended by adding at the end the 

following: 

‘‘(iv) INCLUSION OF PARTNERSHIP AND SIDE AGREEMENTS.—The Committee may require a written notice 

submitted under clause (i) to include a copy of any 

partnership agreements, integration agreements, or 

other side agreements relating to the transaction, as 

specified in regulations prescribed by the Committee.’’. 
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SEC. 1706. DECLARATIONS FOR CERTAIN COVERED TRANSACTIONS. 

Section 721(b)(1)(C) of the Defense Production Act of 1950 

(50 U.S.C. 4565(b)(1)(C)), as amended by section 1705, is further 

amended by adding at the end the following: 

‘‘(v) DECLARATIONS FOR CERTAIN COVERED TRANSACTIONS.— 

‘‘(I) IN GENERAL.—A party to any covered 

transaction may submit to the Committee a declaration with basic information regarding the 

transaction instead of a written notice under 

clause (i). 

‘‘(II) REGULATIONS.—The Committee shall prescribe regulations establishing requirements for 

declarations submitted under this clause. In prescribing such regulations, the Committee shall 

ensure that such declarations are submitted as 

abbreviated notifications that would not generally 

exceed 5 pages in length. 

‘‘(III) COMMITTEE RESPONSE TO DECLARATION.— 

‘‘(aa) IN GENERAL.—Upon receiving a declaration under this clause with respect to a 

covered transaction, the Committee may, at 

the discretion of the Committee— 

‘‘(AA) request that the parties to the 

transaction file a written notice under 

clause (i); 

‘‘(BB) inform the parties to the transaction that the Committee is not able to 

complete action under this section with 

respect to the transaction on the basis 

of the declaration and that the parties 

may file a written notice under clause (i) 

to seek written notification from the Committee that the Committee has completed 

all action under this section with respect 

to the transaction; 

‘‘(CC) initiate a unilateral review of 

the transaction under subparagraph (D); 

or 

‘‘(DD) notify the parties in writing 

that the Committee has completed all 

action under this section with respect to 

the transaction. 

‘‘(bb) TIMING.—The Committee shall take 

action under item (aa) not later than 30 days 

after receiving a declaration under this clause. 

‘‘(cc) RULE OF CONSTRUCTION.—Nothing in 

this subclause (other than item (aa)(CC)) shall 

be construed to affect the authority of the 

President or the Committee to take any action 

authorized by this section with respect to a 

covered transaction. 

‘‘(IV) MANDATORY DECLARATIONS.— 

‘‘(aa) REGULATIONS.—The Committee shall 

prescribe regulations specifying the types of 
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covered transactions for which the Committee 

requires a declaration under this subclause. 

‘‘(bb) CERTAIN COVERED TRANSACTIONS 

WITH FOREIGN GOVERNMENT INTERESTS.— 

‘‘(AA) IN GENERAL.—Except as provided in subitem (BB), the parties to a 

covered transaction shall submit a declaration described in subclause (I) with 

respect to the transaction if the transaction involves an investment that results 

in the acquisition, directly or indirectly, 

of a substantial interest in a United States 

business described in subsection 

(a)(4)(B)(iii) by a foreign person in which 

a foreign government has, directly or 

indirectly, a substantial interest. 

‘‘(BB) SUBSTANTIAL INTEREST 

DEFINED.—In this item, the term ‘substantial interest’ has the meaning given that 

term in regulations which the Committee 

shall prescribe. In developing those regulations, the Committee shall consider the 

means by which a foreign government 

could influence the actions of a foreign 

person, including through board membership, ownership interest, or shareholder 

rights. An interest that is excluded under 

subparagraph (D) of subsection (a)(4) from 

the term ‘other investment’ as used in 

subparagraph (B)(iii) of that subsection or 

that is less than a 10 percent voting 

interest shall not be considered a substantial interest. 

‘‘(CC) WAIVER.—The Committee may 

waive, with respect to a foreign person, 

the requirement under subitem (AA) for 

the submission of a declaration described 

in subclause (I) if the Committee determines that the foreign person demonstrates that the investments of the foreign person are not directed by a foreign 

government and the foreign person has 

a history of cooperation with the Committee. 

‘‘(cc) OTHER DECLARATIONS REQUIRED BY 

COMMITTEE.—The Committee may require the 

submission of a declaration described in subclause (I) with respect to any covered transaction identified under regulations prescribed 

by the Committee for purposes of this item, 

at the discretion of the Committee, that 

involves a United States business described 

in subsection (a)(4)(B)(iii)(II). 

‘‘(dd) EXCEPTION.—The submission of a 

declaration described in subclause (I) shall not 

be required pursuant to this subclause with 
H. R. 5515—551 

respect to an investment by an investment 

fund if— 

‘‘(AA) the fund is managed exclusively 

by a general partner, a managing member, 

or an equivalent; 

‘‘(BB) the general partner, managing 

member, or equivalent is not a foreign 

person; and 

‘‘(CC) the investment fund satisfies, 

with respect to any foreign person with 

membership as a limited partner on an 

advisory board or a committee of the fund, 

the criteria specified in items (cc) and (dd) 

of subsection (a)(4)(D)(iv). 

‘‘(ee) SUBMISSION OF WRITTEN NOTICE AS 

AN ALTERNATIVE.—Parties to a covered transaction for which a declaration is required 

under this subclause may instead elect to 

submit a written notice under clause (i). 

‘‘(ff) TIMING AND REFILING OF SUBMISSION.— 

‘‘(AA) IN GENERAL.—In the regulations prescribed under item (aa), the Committee may not require a declaration to 

be submitted under this subclause with 

respect to a covered transaction more than 

45 days before the completion of the transaction. 

‘‘(BB) REFILING OF DECLARATION.— 

The Committee may not request or recommend that a declaration submitted 

under this subclause be withdrawn and 

refiled, except to permit parties to a covered transaction to correct material errors 

or omissions in the declaration submitted 

with respect to that transaction. 

‘‘(gg) PENALTIES.—The Committee may 

impose a penalty pursuant to subsection (h)(3) 

with respect to a party that fails to comply 

with this subclause.’’. 

SEC. 1707. STIPULATIONS REGARDING TRANSACTIONS. 

Section 721(b)(1)(C) of the Defense Production Act of 1950 

(50 U.S.C. 4565(b)(1)(C)), as amended by section 1706, is further 

amended by adding at the end the following: 

‘‘(vi) STIPULATIONS REGARDING TRANSACTIONS.— 

‘‘(I) IN GENERAL.—In a written notice submitted under clause (i) or a declaration submitted 

under clause (v) with respect to a transaction, 

a party to the transaction may— 

‘‘(aa) stipulate that the transaction is a 

covered transaction; and 

‘‘(bb) if the party stipulates that the transaction is a covered transaction under item (aa), 

stipulate that the transaction is a foreign 

government-controlled transaction. 
H. R. 5515—552 

‘‘(II) BASIS FOR STIPULATION.—A written notice 

submitted under clause (i) or a declaration submitted under clause (v) that includes a stipulation 

under subclause (I) shall include a description of 

the basis for the stipulation.’’. 

SEC. 1708. AUTHORITY FOR UNILATERAL INITIATION OF REVIEWS. 

Section 721(b)(1) of the Defense Production Act of 1950 (50 

U.S.C. 4565(b)(1)) is amended— 

(1) by redesignating subparagraphs (E) and (F) as subparagraphs (F) and (G), respectively; 

(2) in subparagraph (D)— 

(A) in the matter preceding clause (i), by striking 

‘‘subparagraph (F)’’ and inserting ‘‘subparagraph (G)’’; 

(B) in clause (i), by inserting ‘‘(other than a covered 

transaction described in subparagraph (E))’’ after ‘‘any covered transaction’’; 

(C) by striking clause (ii) and inserting the following: 

‘‘(ii) any covered transaction described in subparagraph (E), if any party to the transaction submitted 

false or misleading material information to the Committee in connection with the Committee’s consideration of the transaction or omitted material information, including material documents, from information 

submitted to the Committee; or’’; and 

(D) in clause (iii)— 

(i) in the matter preceding subclause (I), by 

striking ‘‘any covered transaction that has previously 

been reviewed or investigated under this section,’’ and 

inserting ‘‘any covered transaction described in 

subparagraph (E),’’; 

(ii) in subclause (I), by striking ‘‘intentionally’’; 

(iii) in subclause (II), by striking ‘‘an intentional’’ 

and inserting ‘‘a’’; and 

(iv) in subclause (III), by inserting ‘‘adequate and 

appropriate’’ before ‘‘remedies or enforcement tools’’; 

and 

(3) by inserting after subparagraph (D) the following: 

‘‘(E) COVERED TRANSACTIONS DESCRIBED.—A covered 

transaction is described in this subparagraph if— 

‘‘(i) the Committee has informed the parties to 

the transaction in writing that the Committee has 

completed all action under this section with respect 

to the transaction; or 

‘‘(ii) the President has announced a decision not 

to exercise the President’s authority under subsection 

(d) with respect to the transaction.’’. 

SEC. 1709. TIMING FOR REVIEWS AND INVESTIGATIONS. 

Section 721(b) of the Defense Production Act of 1950 (50 U.S.C. 

4565(b)), as amended by section 1708, is further amended— 

(1) in paragraph (1)(F), by striking ‘‘30’’ and inserting ‘‘45’’; 

(2) in paragraph (2), by striking subparagraph (C) and 

inserting the following: 

‘‘(C) TIMING.— 

‘‘(i) IN GENERAL.—Except as provided in clause 

(ii), any investigation under subparagraph (A) shall 
H. R. 5515—553 

be completed before the end of the 45-day period beginning on the date on which the investigation commenced. 

‘‘(ii) EXTENSION FOR EXTRAORDINARY CIRCUMSTANCES.— 

‘‘(I) IN GENERAL.—In extraordinary circumstances (as defined by the Committee in regulations), the chairperson may, at the request of 

the head of the lead agency, extend an investigation under subparagraph (A) for one 15-day period. 

‘‘(II) NONDELEGATION.—The authority of the 

chairperson and the head of the lead agency 

referred to in subclause (I) may not be delegated 

to any person other than the Deputy Secretary 

of the Treasury or the deputy head (or equivalent 

thereof) of the lead agency, as the case may be. 

‘‘(III) NOTIFICATION TO PARTIES.—If the Com- mittee extends the deadline under subclause (I) 

with respect to a covered transaction, the Com- mittee shall notify the parties to the transaction 

of the extension.’’; and 

(3) by adding at the end the following: 

‘‘(8) TOLLING OF DEADLINES DURING LAPSE IN APPROPRIATIONS.—Any deadline or time limitation under this subsection 

shall be tolled during a lapse in appropriations.’’. 

SEC. 1710. IDENTIFICATION OF NON-NOTIFIED AND NON-DECLARED 

TRANSACTIONS. 

Section 721(b)(1) of the Defense Production Act of 1950 (50 

U.S.C. 4565(b)(1)), as amended by sections 1708 and 1709, is further 

amended by adding at the end the following: 

‘‘(H) IDENTIFICATION OF NON-NOTIFIED AND NONDECLARED TRANSACTIONS.—The Committee shall establish 

a process to identify covered transactions for which— 

‘‘(i) a notice under clause (i) of subparagraph (C) 

or a declaration under clause (v) of that subparagraph 

is not submitted to the Committee; and 

‘‘(ii) information is reasonably available.’’. 

SEC. 1711. SUBMISSION OF CERTIFICATIONS TO CONGRESS. 

Section 721(b)(3)(C) of the Defense Production Act of 1950 

(50 U.S.C. 4565(b)(3)(C)) is amended— 

(1) in clause (i), by striking subclause (II) and inserting 

the following: 

‘‘(II) a certification that all relevant national 

security factors have received full consideration.’’; 

(2) in clause (iv), by striking subclause (II) and inserting 

the following: 

‘‘(II) DELEGATION OF CERTIFICATIONS.— 

‘‘(aa) IN GENERAL.—Subject to item (bb), 

the chairperson, in consultation with the Committee, may determine the level of official to 

whom the signature requirement under subclause (I) for the chairperson and the head 

of the lead agency may be delegated. The level 

of official to whom the signature requirement 

may be delegated may differ based on any 
H. R. 5515—554 

factor relating to a transaction that the chairperson, in consultation with the Committee, 

deems appropriate, including the type or value 

of the transaction. 

‘‘(bb) LIMITATION ON DELEGATION WITH 

RESPECT TO CERTAIN TRANSACTIONS.—The signature requirement under subclause (I) may 

be delegated not below the level of the Assistant Secretary of the Treasury or an equivalent 

official of the lead agency.’’; and 

(3) by adding at the end the following: 

‘‘(v) AUTHORITY TO CONSOLIDATE DOCUMENTS.— 

Instead of transmitting a separate certified notice or 

certified report under subparagraph (A) or (B) with 

respect to each covered transaction, the Committee 

may, on a monthly basis, transmit such notices and 

reports in a consolidated document to the Members 

of Congress specified in clause (iii).’’. 

SEC. 1712. ANALYSIS BY DIRECTOR OF NATIONAL INTELLIGENCE. 

Section 721(b)(4) of the Defense Production Act of 1950 (50 

U.S.C. 4565(b)(4)) is amended— 

(1) by striking subparagraph (A) and inserting the following: 

‘‘(A) ANALYSIS REQUIRED.— 

‘‘(i) IN GENERAL.—Except as provided in subparagraph (B), 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, which shall include 

the identification of any recognized gaps in the collection of intelligence relevant to the analysis. 

‘‘(ii) VIEWS OF INTELLIGENCE COMMUNITY.—The 

Director shall seek and incorporate into the analysis 

required by clause (i) the views of all affected or appropriate agencies of the intelligence community with 

respect to the transaction. 

‘‘(iii) UPDATES.—At the request of the lead agency, 

the Director shall update the analysis conducted under 

clause (i) with respect to a covered transaction with 

respect to which an agreement was entered into under 

subsection (l)(3)(A). 

‘‘(iv) INDEPENDENCE AND OBJECTIVITY.—The Committee shall ensure that its processes under this section 

preserve the ability of the Director to conduct analysis 

under clause (i) that is independent, objective, and 

consistent with all applicable directives, policies, and 

analytic tradecraft standards of the intelligence 

community.’’; 

(2) by redesignating subparagraphs (B), (C), and (D) as 

subparagraphs (C), (D), and (E), respectively; 

(3) by inserting after subparagraph (A) the following: 

‘‘(B) BASIC THREAT INFORMATION.— 

‘‘(i) IN GENERAL.—The Director of National Intelligence may provide the Committee with basic information regarding any threat to the national security of 

the United States posed by a covered transaction 
H. R. 5515—555 

described in clause (ii) instead of conducting the analysis required by subparagraph (A). 

‘‘(ii) COVERED TRANSACTION DESCRIBED.—A covered 

transaction is described in this clause if— 

‘‘(I) the transaction is described in subsection 

(a)(4)(B)(ii); 

‘‘(II) the Director of National Intelligence has 

completed an analysis pursuant to subparagraph 

(A) involving each foreign person that is a party 

to the transaction during the 12 months preceding 

the review or investigation of the transaction 

under this section; or 

‘‘(III) the transaction otherwise meets criteria 

agreed upon by the Committee and the Director 

for purposes of this subparagraph.’’; 

(4) in subparagraph (C), as redesignated by paragraph 

(2), by striking ‘‘20’’ and inserting ‘‘30’’; and 

(5) by adding at the end the following: 

‘‘(F) ASSESSMENT OF OPERATIONAL IMPACT.—The 

Director may provide to the Committee an assessment, 

separate from the analyses under subparagraphs (A) and 

(B), of any operational impact of a covered transaction 

on the intelligence community and a description of any 

actions that have been or will be taken to mitigate any 

such impact. 

‘‘(G) SUBMISSION TO CONGRESS.—The Committee shall 

submit the analysis required by subparagraph (A) with 

respect to a covered transaction to the Select Committee 

on Intelligence of the Senate and the Permanent Select 

Committee on Intelligence of the House of Representatives 

upon the conclusion of action under this section (other 

than compliance plans under subsection (l)(6)) with respect 

to the transaction.’’. 

SEC. 1713. INFORMATION SHARING. 

Section 721(c) of the Defense Production Act of 1950 (50 U.S.C. 

4565(c)) is amended— 

(1) by striking ‘‘Any information’’ and inserting the following: 

‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 

any information’’; 

(2) by striking ‘‘, except as may be relevant’’ and all that 

follows and inserting a period; and 

(3) by adding at the end the following: 

‘‘(2) EXCEPTIONS.—Paragraph (1) shall not prohibit the 

disclosure of the following: 

‘‘(A) Information relevant to any administrative or 

judicial action or proceeding. 

‘‘(B) Information to Congress or any duly authorized 

committee or subcommittee of Congress. 

‘‘(C) Information important to the national security 

analysis or actions of the Committee to any domestic 

governmental entity, or to any foreign governmental entity 

of a United States ally or partner, under the exclusive 

direction and authorization of the chairperson, only to the 

extent necessary for national security purposes, and subject 
H. R. 5515—556 

to appropriate confidentiality and classification requirements. 

‘‘(D) Information that the parties have consented to 

be disclosed to third parties. 

‘‘(3) COOPERATION WITH ALLIES AND PARTNERS.— 

‘‘(A) IN GENERAL.—The chairperson, in consultation 

with other members of the Committee, should establish 

a formal process for the exchange of information under 

paragraph (2)(C) with governments of countries that are 

allies or partners of the United States, in the discretion 

of the chairperson, to protect the national security of the 

United States and those countries. 

‘‘(B) REQUIREMENTS.—The process established under 

subparagraph (A) should, in the discretion of the chairperson— 

‘‘(i) be designed to facilitate the harmonization of 

action with respect to trends in investment and technology that could pose risks to the national security 

of the United States and countries that are allies or 

partners of the United States; 

‘‘(ii) provide for the sharing of information with 

respect to specific technologies and entities acquiring 

such technologies as appropriate to ensure national 

security; and 

‘‘(iii) include consultations and meetings with representatives of the governments of such countries on 

a recurring basis.’’. 

SEC. 1714. ACTION BY THE PRESIDENT. 

Section 721(d)(2) of the Defense Production Act of 1950 (50 

U.S.C. 4565(d)(2)) is amended by striking ‘‘not later than 15 days’’ 

and all that follows and inserting the following: ‘‘with respect to 

a covered transaction not later than 15 days after the earlier 

of— 

‘‘(A) the date on which the investigation of the transaction under subsection (b) is completed; or 

‘‘(B) the date on which the Committee otherwise refers 

the transaction to the President under subsection (l)(2).’’. 

SEC. 1715. JUDICIAL REVIEW. 

Section 721(e) of the Defense Production Act of 1950 (50 U.S.C. 

4565(e)) is amended— 

(1) by striking ‘‘The actions’’ and inserting the following: 

‘‘(1) IN GENERAL.—The actions’’; and 

(2) by adding at the end the following: 

‘‘(2) CIVIL ACTIONS.—A civil action challenging an action 

or finding under this section may be brought only in the United 

States Court of Appeals for the District of Columbia Circuit. 

‘‘(3) PROCEDURES FOR REVIEW OF PRIVILEGED INFORMATION.—If a civil action challenging an action or finding under 

this section is brought, and the court determines that protected 

information in the administrative record, including classified 

or other information subject to privilege or protections under 

any provision of law, is necessary to resolve the challenge, 

that information shall be submitted ex parte and in camera 

to the court and the court shall maintain that information 

under seal. 
H. R. 5515—557 

‘‘(4) APPLICABILITY OF USE OF INFORMATION PROVISIONS.— The use of information provisions of sections 106, 305, 405, 

and 706 of the Foreign Intelligence Surveillance Act of 1978 

(50 U.S.C. 1806, 1825, 1845, and 1881e) shall not apply in 

a civil action brought under this subsection.’’. 

SEC. 1716. CONSIDERATIONS FOR REGULATIONS. 

Section 721(h) of the Defense Production Act of 1950 (50 U.S.C. 

4565(h)) is amended— 

(1) by striking paragraph (2); 

(2) by redesignating paragraph (3) as paragraph (2); and 

(3) in paragraph (2), as redesignated— 

(A) in subparagraph (A), by striking ‘‘including any 

mitigation’’ and all that follows through ‘‘subsection (l)’’ 

and inserting ‘‘including any mitigation agreement entered 

into, conditions imposed, or order issued pursuant to this 

section’’; 

(B) in subparagraph (B)(ii), by striking ‘‘and’’ at the 

end; 

(C) in subparagraph (C), by striking the period at 

the end and inserting ‘‘; and’’; and 

(D) by adding at the end the following: 

‘‘(D) provide that, in any review or investigation of 

a covered transaction conducted by the Committee under 

subsection (b), the Committee should— 

‘‘(i) consider the factors specified in subsection (f); 

and 

‘‘(ii) as appropriate, require parties to provide to 

the Committee the information necessary to consider 

such factors.’’. 

SEC. 1717. MEMBERSHIP AND STAFF OF COMMITTEE. 

(a) HIRING AUTHORITY.—Section 721(k) of the Defense Produc- tion Act of 1950 (50 U.S.C. 4565(k)) is amended by striking para- graph (4) and inserting the following: 

‘‘(4) HIRING AUTHORITY.— ‘‘(A) SENIOR OFFICIALS.— ‘‘(i) IN GENERAL.—Each member of the Committee 

shall designate an Assistant Secretary, or an equiva- lent official, who is appointed by the President, by 

and with the advice and consent of the Senate, to 

carry out such duties related to the Committee as 

the member of the Committee may delegate. 

‘‘(ii) DEPARTMENT OF THE TREASURY.— ‘‘(I) IN GENERAL.—There shall be established 

in the Office of International Affairs at the Depart- ment of the Treasury 2 additional positions of 

Assistant Secretary of the Treasury, who shall be 

appointed by the President, by and with the advice 

and consent of the Senate, to carry out such duties 

related to the Committee as the Secretary of the 

Treasury may delegate, consistent with this section. 

‘‘(II) ASSISTANT SECRETARY FOR INVESTMENT 

SECURITY.—One of the positions of Assistant Secretary of the Treasury authorized under subclause 

(I) shall be the Assistant Secretary for Investment 

Security, whose duties shall be principally related 
H. R. 5515—558 

to the Committee, as delegated by the Secretary 

of the Treasury under this section. 

‘‘(B) SPECIAL HIRING AUTHORITY.—The heads of the 

departments and agencies represented on the Committee 

may appoint, without regard to the provisions of sections 

3309 through 3318 of title 5, United States Code, candidates directly to positions in the competitive service (as 

defined in section 2102 of that title) in their respective 

departments and agencies. The primary responsibility of 

positions authorized under the preceding sentence shall 

be to administer this section.’’. 

(b) PROCEDURES FOR RECUSAL OF MEMBERS OF COMMITTEE 

FOR CONFLICTS OF INTEREST.—Not later than 90 days after the 

date of the enactment of this Act, the Committee on Foreign Investment in the United States shall— 

(1) establish procedures for the recusal of any member 

of the Committee that has a conflict of interest with respect 

to a covered transaction (as defined in section 721(a) of the 

Defense Production Act of 1950, as amended by section 1703); 

(2) submit to the Committee on Banking, Housing, and 

Urban Affairs of the Senate and the Committee on Financial 

Services of the House of Representatives a report describing 

those procedures; and 

(3) brief the committees specified in paragraph (1) on the 

report required by paragraph (2). 

SEC. 1718. ACTIONS BY THE COMMITTEE TO ADDRESS NATIONAL SECURITY RISKS. 

Section 721(l) of the Defense Production Act of 1950 (50 U.S.C. 

4565(l)) is amended— 

(1) in the subsection heading, by striking ‘‘MITIGATION, 

TRACKING, AND POSTCONSUMMATION MONITORING AND 

ENFORCEMENT’’ and inserting ‘‘ACTIONS BY THE COMMITTEE TO 

ADDRESS NATIONAL SECURITY RISKS’’; 

(2) by redesignating paragraphs (1), (2), and (3) as paragraphs (3), (5), and (6), respectively; 

(3) by inserting before paragraph (3), as redesignated by 

paragraph (2), the following: 

‘‘(1) SUSPENSION OF TRANSACTIONS.—The Committee, acting 

through the chairperson, may suspend a proposed or pending 

covered transaction that may pose a risk to the national security 

of the United States for such time as the covered transaction 

is under review or investigation under subsection (b). 

‘‘(2) REFERRAL TO PRESIDENT.—The Committee may, at any 

time during the review or investigation of a covered transaction 

under subsection (b), complete the action of the Committee 

with respect to the transaction and refer the transaction to 

the President for action pursuant to subsection (d).’’; 

(4) in paragraph (3), as redesignated by paragraph (2)— 

(A) in subparagraph (A)— 

(i) in the subparagraph heading, by striking ‘‘IN 

GENERAL’’ and inserting ‘‘AGREEMENTS AND CONDITIONS’’; 

(ii) by striking ‘‘The Committee’’ and inserting the 

following: 

‘‘(i) IN GENERAL.—The Committee’’; 

(iii) by striking ‘‘threat’’ and inserting ‘‘risk’’; and 
H. R. 5515—559 

(iv) by adding at the end the following: 

‘‘(ii) ABANDONMENT OF TRANSACTIONS.—If a party 

to a covered transaction has voluntarily chosen to 

abandon the transaction, the Committee or lead 

agency, as the case may be, may negotiate, enter into 

or impose, and enforce any agreement or condition 

with any party to the covered transaction for purposes 

of effectuating such abandonment and mitigating any 

risk to the national security of the United States that 

arises as a result of the covered transaction. 

‘‘(iii) AGREEMENTS AND CONDITIONS RELATING TO 

COMPLETED TRANSACTIONS.—The Committee or lead 

agency, as the case may be, may negotiate, enter into 

or impose, and enforce any agreement or condition 

with any party to a completed covered transaction 

in order to mitigate any interim risk to the national 

security of the United States that may arise as a 

result of the covered transaction until such time that 

the Committee has completed action pursuant to subsection (b) or the President has taken action pursuant 

to subsection (d) with respect to the transaction.’’; and 

(B) by striking subparagraph (B) and inserting the 

following: 

‘‘(B) TREATMENT OF OUTDATED AGREEMENTS OR CONDITIONS.—The chairperson and the head of the lead agency 

shall periodically review the appropriateness of an agreement or condition imposed under subparagraph (A) and 

terminate, phase out, or otherwise amend the agreement 

or condition if a threat no longer requires mitigation 

through the agreement or condition. 

‘‘(C) LIMITATIONS.—An agreement may not be entered 

into or condition imposed under subparagraph (A) with 

respect to a covered transaction unless the Committee 

determines that the agreement or condition resolves the 

national security concerns posed by the transaction, taking 

into consideration whether the agreement or condition is 

reasonably calculated to— 

‘‘(i) be effective; 

‘‘(ii) allow for compliance with the terms of the 

agreement or condition in an appropriately verifiable 

way; and 

‘‘(iii) enable effective monitoring of compliance with 

and enforcement of the terms of the agreement or 

condition. 

‘‘(D) JURISDICTION.—The provisions of section 706(b) 

shall apply to any mitigation agreement entered into or 

condition imposed under subparagraph (A).’’; 

(5) by inserting after paragraph (3), as redesignated by 

paragraph (2), the following: 

‘‘(4) RISK-BASED ANALYSIS REQUIRED.— 

‘‘(A) IN GENERAL.—Any determination of the Committee 

to suspend a covered transaction under paragraph (1), to 

refer a covered transaction to the President under paragraph (2), or to negotiate, enter into or impose, or enforce 

any agreement or condition under paragraph (3)(A) with 

respect to a covered transaction, shall be based on a riskbased analysis, conducted by the Committee, of the effects 
H. R. 5515—560 

on the national security of the United States of the covered 

transaction, which shall include an assessment of the 

threat, vulnerabilities, and consequences to national security related to the transaction. 

‘‘(B) ACTIONS OF MEMBERS OF THE COMMITTEE.— 

‘‘(i) IN GENERAL.—Any member of the Committee 

who concludes that a covered transaction poses an 

unresolved national security concern shall recommend 

to the Committee that the Committee suspend the 

transaction under paragraph (1), refer the transaction 

to the President under paragraph (2), or negotiate, 

enter into or impose, or enforce any agreement or 

condition under paragraph (3)(A) with respect to the 

transaction. In making that recommendation, the 

member shall propose or contribute to the risk-based 

analysis required by subparagraph (A). 

‘‘(ii) FAILURE TO REACH CONSENSUS.—If the Committee fails to reach consensus with respect to a recommendation under clause (i) regarding a covered 

transaction, the members of the Committee who support an alternative recommendation shall produce— 

‘‘(I) a written statement justifying the alternative recommendation; and 

‘‘(II) as appropriate, a risk-based analysis that 

supports the alternative recommendation. 

‘‘(C) DEFINITIONS.—For purposes of subparagraph (A), 

the terms ‘threat’, ‘vulnerabilities’, and ‘consequences to 

national security’ shall have the meanings given those 

terms by the Committee by regulation.’’; 

(6) in paragraph (5)(B), as redesignated by paragraph (2), 

by striking ‘‘(as defined in the National Security Act of 1947)’’; 

and 

(7) in paragraph (6), as redesignated by paragraph (2)— 

(A) in subparagraph (A)— 

(i) by striking ‘‘paragraph (1)’’ and inserting ‘‘paragraph (3)’’; and 

(ii) by striking the second sentence and inserting 

the following: ‘‘The lead agency may, at its discretion, 

seek and receive the assistance of other departments 

or agencies in carrying out the purposes of this paragraph.’’; 

(B) in subparagraph (B)— 

(i) by striking ‘‘DESIGNATED AGENCY’’ and all that 

follows through ‘‘The lead agency in connection’’ and 

inserting ‘‘DESIGNATED AGENCY.—The lead agency in 

connection’’; 

(ii) by striking clause (ii); and 

(iii) by redesignating subclauses (I) and (II) as 

clauses (i) and (ii), respectively, and by moving such 

clauses, as so redesignated, 2 ems to the left; and 

(C) by adding at the end the following: 

‘‘(C) COMPLIANCE PLANS.— 

‘‘(i) IN GENERAL.—In the case of a covered transaction with respect to which an agreement is entered 

into under paragraph (3)(A), the Committee or lead 

agency, as the case may be, shall formulate, adhere 
H. R. 5515—561 

to, and keep updated a plan for monitoring compliance 

with the agreement. 

‘‘(ii) ELEMENTS.—Each plan required by clause (i) 

with respect to an agreement entered into under paragraph (3)(A) shall include an explanation of— 

‘‘(I) which member of the Committee will have 

primary responsibility for monitoring compliance 

with the agreement; 

‘‘(II) how compliance with the agreement will 

be monitored; 

‘‘(III) how frequently compliance reviews will 

be conducted; 

‘‘(IV) whether an independent entity will be 

utilized under subparagraph (E) to conduct compliance reviews; and 

‘‘(V) what actions will be taken if the parties 

fail to cooperate regarding monitoring compliance 

with the agreement. 

‘‘(D) EFFECT OF LACK OF COMPLIANCE.—If, at any time 

after a mitigation agreement or condition is entered into 

or imposed under paragraph (3)(A), the Committee or lead 

agency, as the case may be, determines that a party or 

parties to the agreement or condition are not in compliance 

with the terms of the agreement or condition, the Committee or lead agency may, in addition to the authority 

of the Committee to impose penalties pursuant to subsection (h)(3) and to unilaterally initiate a review of any 

covered transaction under subsection (b)(1)(D)(iii)— 

‘‘(i) negotiate a plan of action for the party or 

parties to remediate the lack of compliance, with 

failure to abide by the plan or otherwise remediate 

the lack of compliance serving as the basis for the 

Committee to find a material breach of the agreement 

or condition; 

‘‘(ii) require that the party or parties submit a 

written notice under clause (i) of subsection (b)(1)(C) 

or a declaration under clause (v) of that subsection 

with respect to a covered transaction initiated after 

the date of the determination of noncompliance and 

before the date that is 5 years after the date of the 

determination to the Committee to initiate a review 

of the transaction under subsection (b); or 

‘‘(iii) seek injunctive relief. 

‘‘(E) USE OF INDEPENDENT ENTITIES TO MONITOR 

COMPLIANCE.—If the parties to an agreement entered into 

under paragraph (3)(A) enter into a contract with an independent entity from outside the United States Government 

for the purpose of monitoring compliance with the agreement, the Committee shall take such action as is necessary 

to prevent a conflict of interest from arising by ensuring 

that the independent entity owes no fiduciary duty to the 

parties. 

‘‘(F) SUCCESSORS AND ASSIGNS.—Any agreement or 

condition entered into or imposed under paragraph (3)(A) 

shall be considered binding on all successors and assigns 

unless and until the agreement or condition terminates 
H. R. 5515—562 

on its own terms or is otherwise terminated by the Committee in its sole discretion. 

‘‘(G) ADDITIONAL COMPLIANCE MEASURES.—Subject to 

subparagraphs (A) through (F), 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 ensure compliance without unnecessarily diverting Committee resources from assessing any 

new covered transaction for which a written notice under 

clause (i) of subsection (b)(1)(C) or declaration under clause 

(v) of that subsection has been filed, and if necessary, 

reaching a mitigation agreement with or imposing a condi- tion on a party to such covered transaction or any covered 

transaction for which a review has been reopened for any 

reason.’’. 

SEC. 1719. MODIFICATION OF ANNUAL REPORT AND OTHER 

REPORTING REQUIREMENTS. 

(a) MODIFICATION OF ANNUAL REPORT.—Section 721(m) of the 

Defense Production Act of 1950 (50 U.S.C. 4565(m)) is amended— 

(1) in paragraph (2)— 

(A) by amending subparagraph (A) to read as follows: 

‘‘(A) A list of all notices filed and all reviews or investigations of covered transactions completed during the 

period, with— 

‘‘(i) a description of the outcome of each review 

or investigation, including whether an agreement was 

entered into or condition was imposed under subsection 

(l)(3)(A) with respect to the transaction being reviewed 

or investigated, and whether the President took any 

action under this section with respect to that transaction; 

‘‘(ii) basic information on each party to each such 

transaction; 

‘‘(iii) the nature of the business activities or products of the United States business with which the 

transaction was entered into or intended to be entered 

into; and 

‘‘(iv) information about any withdrawal from the 

process.’’; and 

(B) by adding at the end the following: 

‘‘(G) Statistics on compliance plans conducted and 

actions taken by the Committee under subsection (l)(6), 

including subparagraph (D) of that subsection, during that 

period, a general assessment of the compliance of parties 

with agreements entered into and conditions imposed under 

subsection (l)(3)(A) that are in effect during that period, 

including a description of any actions taken by the Com- mittee to impose penalties or initiate a unilateral review 

pursuant to subsection (b)(1)(D)(iii), and any recommenda- tions for improving the enforcement of such agreements 

and conditions. 

‘‘(H) Cumulative and, as appropriate, trend information 

on the number of declarations filed under subsection 

(b)(1)(C)(v), the actions taken by the Committee in response 

to those declarations, the business sectors involved in those 
H. R. 5515—563 

declarations, and the countries involved in those declarations. 

‘‘(I) A description of— 

‘‘(i) the methods used by the Committee to identify 

non-notified and non-declared transactions under subsection (b)(1)(H); 

‘‘(ii) potential methods to improve such identification and the resources required to do so; and 

‘‘(iii) the number of transactions identified through 

the process established under that subsection during 

the reporting period and the number of such transactions flagged for further review. 

‘‘(J) A summary of the hiring practices and policies 

of the Committee pursuant to subsection (k)(4). 

‘‘(K) A list of the waivers granted by the Committee 

under subsection (b)(1)(C)(v)(IV)(bb)(CC).’’; 

(2) in paragraph (3)— 

(A) by striking ‘‘CRITICAL TECHNOLOGIES’’ and all that 

follows through ‘‘In order to assist’’ and inserting ‘‘CRITICAL 

TECHNOLOGIES.—In order to assist’’; 

(B) by striking subparagraph (B); 

(C) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively, and by moving such subparagraphs, as so redesignated, 2 ems to the left; 

(D) in subparagraph (A), as redesignated by subparagraph (C), by striking ‘‘; and’’ and inserting a semicolon; 

(E) in subparagraph (B), as so redesignated, by striking 

the period and inserting ‘‘; and’’; and 

(F) by adding at the end the following: 

‘‘(C) a description of the technologies recommended 

by the chairperson under subsection (a)(6)(B) for identification under the interagency process set forth in section 

1758(a) of the Export Control Reform Act of 2018.’’. 

(3) by adding at the end the following: 

‘‘(4) FORM OF REPORT.— 

‘‘(A) IN GENERAL.—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. 

‘‘(B) INCLUSION IN CLASSIFIED VERSION.—If the Committee recommends that the President suspend or prohibit 

a covered transaction because the transaction threatens 

to impair the national security of the United States, the 

Committee shall, in the classified version of the report 

required under paragraph (1), notify Congress of the recommendation and, upon request, provide a classified 

briefing on the recommendation. 

‘‘(C) INCLUSIONS IN UNCLASSIFIED VERSION.—The 

unclassified version of the report required under paragraph 

(1) shall include, with respect to covered transactions for 

the reporting period— 

‘‘(i) the number of notices submitted under subsection (b)(1)(C)(i); 
H. R. 5515—564 

‘‘(ii) the number of declarations submitted under 

subsection (b)(1)(C)(v) and the number of such declarations that were required under subclause (IV) of that 

subsection; 

‘‘(iii) the number of declarations submitted under 

subsection (b)(1)(C)(v) for which the Committee 

required resubmission as notices under subsection 

(b)(1)(C)(i); 

‘‘(iv) the average number of days that elapsed 

between submission of a declaration under subsection 

(b)(1)(C)(v) and the acceptance of the declaration by 

the Committee; 

‘‘(v) the median and average number of days that 

elapsed between acceptance of a declaration by the 

Committee and a response described in subsection 

(b)(1)(C)(v)(III); 

‘‘(vi) information on the time it took the Committee 

to provide comments on, or to accept, notices submitted 

under subsection (b)(1)(C)(i), including— 

‘‘(I) the average number of business days that 

elapsed between the date of submission of a draft 

notice and the date on which the Committee pro- vided written comments on the draft notice; 

‘‘(II) the average number of business days that 

elapsed between the date of submission of a formal 

written notice and the date on which the Com- mittee accepted or provided written comments on 

the formal written notice; and 

‘‘(III) if the average number of business days 

for a response by the Committee reported under 

subclause (I) or (II) exceeded 10 business days— 

‘‘(aa) an explanation of the causes of such 

delays, including whether such delays are 

caused by resource shortages, unusual fluctua- tions in the volume of notices, transaction 

characteristics, or other factors; and 

‘‘(bb) an explanation of the steps that the 

Committee anticipates taking to mitigate the 

causes of such delays and otherwise to improve 

the ability of the Committee to provide com- ments on, or to accept, notices within 10 busi- ness days; 

‘‘(vii) the number of reviews or investigations con- ducted under subsection (b); 

‘‘(viii) the number of investigations that were sub- ject to an extension under subsection (b)(2)(C)(ii); 

‘‘(ix) information on the duration of those reviews 

and investigations, including the median and average 

number of days required to complete those reviews 

and investigations; 

‘‘(x) the number of notices submitted under sub- section (b)(1)(C)(i) and declarations submitted under 

subsection (b)(1)(C)(v) that were rejected by the Com- mittee; 

‘‘(xi) the number of such notices and declarations 

that were withdrawn by a party to the covered transaction; 
H. R. 5515—565 

‘‘(xii) the number of such withdrawals that were 

followed by the submission of a subsequent such notice 

or declaration relating to a substantially similar covered transaction; and 

‘‘(xiii) such other specific, cumulative, or trend 

information that the Committee determines is advisable to provide for an assessment of the time required 

for reviews and investigations of covered transactions 

under this section.’’. 

(b) REPORT ON CHINESE INVESTMENT.— 

(1) IN GENERAL.—Not later than 2 years after the date 

of the enactment of this Act, and every 2 years thereafter 

through 2026, the Secretary of Commerce shall submit to Congress and the Committee on Foreign Investment in the United 

States a report on foreign direct investment transactions made 

by entities of the People’s Republic of China in the United 

States. 

(2) ELEMENTS.—Each report required by paragraph (1) 

shall include the following: 

(A) Total foreign direct investment from the People’s 

Republic of China in the United States, including total 

foreign direct investment disaggregated by ultimate beneficial owner. 

(B) A breakdown of investments from the People’s 

Republic of China in the United States by value using 

the following categories: 

(i) Less than $50,000,000. 

(ii) Greater than or equal to $50,000,000 and less 

than $100,000,000. 

(iii) Greater than or equal to $100,000,000 and 

less than $1,000,000,000. 

(iv) Greater than or equal to $1,000,000,000 and 

less than $2,000,000,000. 

(v) Greater than or equal to $2,000,000,000 and 

less than $5,000,000,000. 

(vi) Greater than or equal to $5,000,000,000. 

(C) A breakdown of investments from the People’s 

Republic of China in the United States by 2-digit North 

American Industry Classification System code. 

(D) A breakdown of investments from the People’s 

Republic of China in the United States by investment 

type, using the following categories: 

(i) Businesses established. 

(ii) Businesses acquired. 

(E) A breakdown of investments from the People’s 

Republic of China in the United States by government 

and non-government investments, including volume, sector, 

and type of investment within each category. 

(F) A list of companies incorporated in the United 

States purchased through government investment by the 

People’s Republic of China. 

(G) The number of United States affiliates of entities 

under the jurisdiction of the People’s Republic of China, 

the total employees at those affiliates, and the valuation 

for any publicly traded United States affiliate of such an 

entity. 
H. R. 5515—566 

(H) An analysis of patterns in the investments 

described in subparagraphs (A) through (F), including in 

volume, type, and sector, and the extent to which those 

patterns of investments align with the objectives outlined 

by the Government of the People’s Republic of China in 

its Made in China 2025 plan, including a comparative 

analysis of investments from the People’s Republic of China 

in the United States and all foreign direct investment 

in the United States. 

(I) An identification of any limitations on the ability 

of the Secretary of Commerce to collect comprehensive 

information that is reasonably and lawfully available about 

foreign investment in the United States from the People’s 

Republic of China on a timeline necessary to complete 

reports every 2 years as required by paragraph (1), 

including— 

(i) an identification of any discrepancies between 

government and private sector estimates of investments from the People’s Republic of China in the 

United States; 

(ii) a description of the different methodologies 

or data collection methods, including by private sector 

entities, used to measure foreign investment that may 

result in different estimates; and 

(iii) recommendations for enhancing the ability of 

the Secretary of Commerce to improve data collection 

of information about foreign investment in the United 

States from the People’s Republic of China. 

(3) EXTENSION OF DEADLINE.—If, as a result of a limitation 

identified under paragraph (2)(I), the Secretary of Commerce 

determines that the Secretary will be unable to submit a report 

at the time required by paragraph (1), the Secretary may 

request additional time to complete the report. 

(c) REPORT ON CERTAIN RAIL INVESTMENTS BY STATE-OWNED 

OR STATE-CONTROLLED ENTITIES.— 

(1) IN GENERAL.—Not later than one year after the date 

of the enactment of this Act, the Secretary of Homeland Security shall, in coordination with the appropriate members of 

the Committee on Foreign Investment in the United States, 

submit to Congress a report assessing— 

(A) national security risks, if any, related to investments in the United States by state-owned or state-controlled entities in the manufacture or assembly of rolling 

stock or other assets for use in freight rail, public transportation rail systems, or intercity passenger rail systems; 

and 

(B) how the number and types of such investments 

could affect any such risks. 

(2) CONSULTATION.—The Secretary, in preparing the report 

required by paragraph (1), shall consult with the Secretary 

of Transportation and the head of any agency that is not 

represented on the Committee on Foreign Investment in the 

United States that has significant technical expertise related 

to the assessments required by that paragraph. 
H. R. 5515—567 

SEC. 1720. CERTIFICATION OF NOTICES AND INFORMATION. 

Section 721(n) of the Defense Production Act of 1950 (50 U.S.C. 

4565(n)) is amended— 

(1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and by moving such subparagraphs, as so redesignated, 2 ems to the right; 

(2) by striking ‘‘Each notice’’ and inserting the following: 

‘‘(1) IN GENERAL.—Each notice’’; 

(3) by striking ‘‘paragraph (3)(B)’’ and inserting ‘‘paragraph 

(6)(B)’’; 

(4) by striking ‘‘paragraph (1)(A)’’ and inserting ‘‘paragraph 

(3)(A)’’; 

(5) by adding at the end the following: 

‘‘(2) EFFECT OF FAILURE TO SUBMIT.—The Committee may 

not complete a review under this section of a covered transaction and may recommend to the President that the President 

suspend or prohibit the transaction under subsection (d) if 

the Committee determines that a party to the transaction has— 

‘‘(A) failed to submit a statement required by paragraph (1); or 

‘‘(B) included false or misleading information in a 

notice or information described in paragraph (1) or omitted 

material information from such notice or information. 

‘‘(3) APPLICABILITY OF LAW ON FRAUD AND FALSE STATEMENTS.—The Committee shall prescribe regulations expressly 

providing for the application of section 1001 of title 18, United 

States Code, to all information provided to the Committee 

under this section by any party to a covered transaction.’’. 

SEC. 1721. IMPLEMENTATION PLANS. 

(a) IN GENERAL.—Not later than 180 days after the date of 

the enactment of this Act, the chairperson of the Committee on 

Foreign Investment in the United States and the Secretary of 

Commerce shall, in consultation with the appropriate members 

of the Committee— 

(1) develop plans to implement this subtitle; and 

(2) submit to the appropriate congressional committees a 

report on the plans developed under paragraph (1), which shall 

include a description of— 

(A) the timeline and process to implement the provisions of, and amendments made by, this subtitle; 

(B) any additional staff necessary to implement the 

plans; and 

(C) the resources required to effectively implement the 

plans. 

(b) ANNUAL RESOURCE NEEDS OF CFIUS MEMBER AGENCIES.— 

Not later than one year after the submission of the report under 

subsection (a)(2), and annually thereafter for 7 years, each department or agency represented on the Committee on Foreign Investment in the United States shall submit to the appropriate congressional committees a detailed spending plan to expeditiously meet 

the requirements of section 721 of the Defense Production Act 

of 1950, as amended by this subtitle, including estimated expenditures and staffing levels for not less than the following fiscal year. 

(c) TESTIMONY.—Section 721 of the Defense Production Act 

of 1950 (50 U.S.C. 4565) is amended by adding at the end the 

following: 
H. R. 5515—568 

‘‘(o) TESTIMONY.— 

‘‘(1) IN GENERAL.—Not later than March 31 of each year, 

the chairperson, or the designee of the chairperson, shall appear 

before the Committee on Financial Services of the House of 

Representatives and the Committee on Banking, Housing, and 

Urban Affairs of the Senate to present testimony on— 

‘‘(A) anticipated resources necessary for operations of 

the Committee in the following fiscal year at each of the 

departments or agencies represented on the Committee; 

‘‘(B) the adequacy of appropriations for the Committee 

in the current and the previous fiscal year to— 

‘‘(i) ensure that thorough reviews and investigations are completed as expeditiously as possible; 

‘‘(ii) monitor and enforce mitigation agreements; 

and 

‘‘(iii) identify covered transactions for which a 

notice under clause (i) of subsection (b)(1)(C) or a declaration under clause (v) of that subsection was not 

submitted to the Committee; 

‘‘(C) management efforts to strengthen the ability of 

the Committee to meet the requirements of this section; 

and 

‘‘(D) activities of the Committee undertaken in order 

to— 

‘‘(i) educate the business community, with a particular focus on the technology sector and other sectors 

of importance to national security, on the goals and 

operations of the Committee; 

‘‘(ii) disseminate to the governments of countries 

that are allies or partners of the United States best 

practices of the Committee that— 

‘‘(I) strengthen national security reviews of relevant investment transactions; and 

‘‘(II) expedite such reviews when appropriate; 

and 

‘‘(iii) promote openness to foreign investment, consistent with national security considerations. 

‘‘(2) SUNSET.—This subsection shall have no force or effect 

on or after the date that is 7 years after the date of the 

enactment of the Foreign Investment Risk Review Modernization Act of 2018.’’. 

(d) APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.—In 

this section, the term ‘‘appropriate congressional committees’’ 

means— 

(1) the Committee on Banking, Housing, and Urban Affairs 

and the Committee on Appropriations of the Senate; and 

(2) the Committee on Financial Services and the Committee 

on Appropriations of the House of Representatives. 

SEC. 1722. ASSESSMENT OF NEED FOR ADDITIONAL RESOURCES FOR 

COMMITTEE. 

The President shall— 

(1) determine whether and to what extent the expansion 

of the responsibilities of the Committee on Foreign Investment 

in the United States pursuant to the amendments made by 

this subtitle necessitates additional resources for the Committee 
H. R. 5515—569 

and the departments and agencies represented on the Committee to perform their functions under section 721 of the 

Defense Production Act of 1950, as amended by this subtitle; 

and 

(2) if the President determines that additional resources 

are necessary, include in the budget of the President for fiscal 

year 2019 and each fiscal year thereafter submitted to Congress 

under section 1105(a) of title 31, United States Code, a request 

for such additional resources. 

SEC. 1723. FUNDING. 

Section 721 of the Defense Production Act of 1950 (50 U.S.C. 

4565), as amended by section 1721, is further amended by adding 

at the end the following: 

‘‘(p) FUNDING.— 

‘‘(1) ESTABLISHMENT OF FUND.—There is established in the 

Treasury of the United States a fund, to be known as the 

‘Committee on Foreign Investment in the United States Fund’ 

(in this subsection referred to as the ‘Fund’), to be administered 

by the chairperson. 

‘‘(2) AUTHORIZATION OF APPROPRIATIONS FOR THE COMMITTEE.—There are authorized to be appropriated to the Fund 

for each of fiscal years 2019 through 2023 $20,000,000 to perform the functions of the Committee. 

‘‘(3) FILING FEES.— 

‘‘(A) IN GENERAL.—The Committee may assess and collect a fee in an amount determined by the Committee 

in regulations, to the extent provided in advance in appropriations Acts, without regard to section 9701 of title 31, 

United States Code, and subject to subparagraph (B), with 

respect to each covered transaction for which a written 

notice is submitted to the Committee under subsection 

(b)(1)(C)(i). The total amount of fees collected under this 

paragraph may not exceed the costs of administering this 

section. 

‘‘(B) DETERMINATION OF AMOUNT OF FEE.— 

‘‘(i) IN GENERAL.—The amount of the fee to be 

assessed under subparagraph (A) with respect to a 

covered transaction— 

‘‘(I) may not exceed an amount equal to the 

lesser of— 

‘‘(aa) 1 percent of the value of the transaction; or 

‘‘(bb) $300,000, adjusted annually for 

inflation pursuant to regulations prescribed by 

the Committee; and 

‘‘(II) shall be based on the value of the transaction, taking into account— 

‘‘(aa) the effect of the fee on small business 

concerns (as defined in section 3 of the Small 

Business Act (15 U.S.C. 632)); 

‘‘(bb) the expenses of the Committee associated with conducting activities under this 

section; 

‘‘(cc) the effect of the fee on foreign investment; and 
H. R. 5515—570 

‘‘(dd) such other matters as the Committee 

considers appropriate. 

‘‘(ii) UPDATES.—The Committee shall periodically 

reconsider and adjust the amount of the fee to be 

assessed under subparagraph (A) with respect to a 

covered transaction to ensure that the amount of the 

fee does not exceed the costs of administering this 

section and otherwise remains appropriate. 

‘‘(C) DEPOSIT AND AVAILABILITY OF FEES.—Notwithstanding section 3302 of title 31, United States Code, fees 

collected under subparagraph (A) shall— 

‘‘(i) be deposited into the Fund solely for use in 

carrying out activities under this section; 

‘‘(ii) to the extent and in the amounts provided 

in advance in appropriations Acts, be available to the 

chairperson; 

‘‘(iii) remain available until expended; and 

‘‘(iv) be in addition to any appropriations made 

available to the members of the Committee. 

‘‘(D) STUDY ON PRIORITIZATION FEE.— 

‘‘(i) IN GENERAL.—Not later than 270 days after 

the date of the enactment of the Foreign Investment 

Risk Review Modernization Act of 2018, the chairperson, in consultation with the Committee, shall complete a study of the feasibility and merits of establishing a fee or fee scale to prioritize the timing of 

the response of the Committee to a draft or formal 

written notice during the period before the Committee 

accepts the formal written notice under subsection 

(b)(1)(C)(i), in the event that the Committee is unable 

to respond during the time required by subclause (II) 

of that subsection because of an unusually large influx 

of notices, or for other reasons. 

‘‘(ii) SUBMISSION TO CONGRESS.—After completing 

the study required by clause (i), the chairperson, or 

a designee of the chairperson, shall submit to the Committee on Banking, Housing, and Urban Affairs of 

the Senate and the Committee on Financial Services 

of the House of Representatives a report on the findings 

of the study. 

‘‘(4) TRANSFER OF FUNDS.—To the extent provided in 

advance in appropriations Acts, the chairperson may transfer 

any amounts in the Fund to any other department or agency 

represented on the Committee for the purpose of addressing 

emerging needs in carrying out activities under this section. 

Amounts so transferred shall be in addition to any other 

amounts available to that department or agency for that purpose.’’. 

SEC. 1724. CENTRALIZATION OF CERTAIN COMMITTEE FUNCTIONS. 

Section 721 of the Defense Production Act of 1950 (50 U.S.C. 

4565), as amended by section 1723, is further amended by adding 

at the end the following: 

‘‘(q) CENTRALIZATION OF CERTAIN COMMITTEE FUNCTIONS.— 

‘‘(1) IN GENERAL.—The chairperson, in consultation with 

the Committee, may centralize certain functions of the Committee within the Department of the Treasury for the purpose 
H. R. 5515—571 

of enhancing interagency coordination and collaboration in carrying out the functions of the Committee under this section. 

‘‘(2) FUNCTIONS.—Functions that may be centralized under 

paragraph (1) include identifying non-notified and non-declared 

transactions pursuant to subsection (b)(1)(H), and other functions as determined by the chairperson and the Committee. 

‘‘(3) RULE OF CONSTRUCTION.—Nothing in this section shall 

be construed as limiting the authority of any department or 

agency represented on the Committee to represent its own 

interests before the Committee.’’. 

SEC. 1725. CONFORMING AMENDMENTS. 

Section 721 of the Defense Production Act of 1950 (50 U.S.C. 

4565), as amended by this subtitle, is further amended— 

(1) in subsection (b)— 

(A) in paragraph (1)(D)(iii)(I), by striking ‘‘subsection 

(l)(1)(A)’’ and inserting ‘‘subsection (l)(3)(A)’’; and 

(B) in paragraph (2)(B)(i)(I), by striking ‘‘that threat’’ 

and inserting ‘‘the risk’’; 

(2) in subsection (d)(4)(A), by striking ‘‘the foreign interest 

exercising control’’ and inserting ‘‘a foreign person that would 

acquire an interest in a United States business or its assets 

as a result of the covered transaction’’; and 

(3) in subsection (j), by striking ‘‘merger, acquisition, or 

takeover’’ and inserting ‘‘transaction’’. 

SEC. 1726. BRIEFING ON INFORMATION FROM TRANSACTIONS 

REVIEWED BY COMMITTEE ON FOREIGN INVESTMENT IN 

THE UNITED STATES RELATING TO FOREIGN EFFORTS 

TO INFLUENCE DEMOCRATIC INSTITUTIONS AND PROCESSES. 

Not later than 60 days after the date of the enactment of 

this Act, the Secretary of the Treasury (or a designee of the Secretary) shall provide a briefing to the Committee on Banking, 

Housing, and Urban Affairs of the Senate and the Committee 

on Financial Services of the House of Representatives on— 

(1) transactions reviewed by the Committee on Foreign 

Investment in the United States during the 5-year period preceding the briefing that the Committee determined would have 

allowed foreign persons to inappropriately influence democratic 

institutions and processes within the United States and in 

other countries; and 

(2) the disposition of such reviews, including any steps 

taken by the Committee to address the risk of allowing foreign 

persons to influence such institutions and processes. 

SEC. 1727. EFFECTIVE DATE. 

(a) IMMEDIATE APPLICABILITY OF CERTAIN PROVISIONS.—The 

following shall take effect on the date of the enactment of this 

Act and, as applicable, apply with respect to any covered transaction 

the review or investigation of which is initiated under section 721 

of the Defense Production Act of 1950 on or after such date of 

enactment: 

(1) Sections 1705, 1707, 1708, 1709, 1710, 1713, 1714, 

1715, 1716, 1717, 1718, 1720, 1721, 1722, 1723, 1724, and 

1725 and any amendments made by those sections. 
H. R. 5515—572 

(2) Section 1712 and the amendments made by that section 

(except for clause (iii) of section 721(b)(4)(A) of the Defense 

Production Act of 1950, as added by section 1712). 

(3) Paragraphs (1), (2), (3), (4)(A)(i), (4)(B)(i), (4)(B)(iv)(I), 

(4)(B)(v), (4)(C)(v), (5), (6), (7), (8), (9), (10), (11), (12), and 

(13) of subsection (a) of section 721 of the Defense Production 

Act of 1950, as amended by section 1703. 

(4) Section 721(m)(4) of the Defense Production Act of 1950, 

as amended by section 1719 (except for clauses (ii), (iii), (iv), 

and (v) of subparagraph (B) of that section). 

(b) DELAYED APPLICABILITY OF CERTAIN PROVISIONS.— 

(1) IN GENERAL.—Any provision of or amendment made 

by this subtitle not specified in subsection (a) shall— 

(A) take effect on the earlier of— 

(i) the date that is 18 months after the date of 

the enactment of this Act; or 

(ii) the date that is 30 days after publication in 

the Federal Register of a determination by the chairperson of the Committee on Foreign Investment in 

the United States that the regulations, organizational 

structure, personnel, and other resources necessary to 

administer the new provisions are in place; and 

(B) apply with respect to any covered transaction the 

review or investigation of which is initiated under section 

721 of the Defense Production Act of 1950 on or after 

the date described in subparagraph (A). 

(2) NONDELEGATION OF DETERMINATION.—The determination of the chairperson of the Committee on Foreign Investment 

in the United States under paragraph (1)(A) may not be delegated. 

(c) AUTHORIZATION FOR PILOT PROGRAMS.— 

(1) IN GENERAL.—Beginning on the date of the enactment 

of this Act and ending on the date that is 570 days thereafter, 

the Committee on Foreign Investment in the United States 

may, at its discretion, conduct one or more pilot programs 

to implement any authority provided pursuant to any provision 

of or amendment made by this subtitle not specified in subsection (a). 

(2) PUBLICATION IN FEDERAL REGISTER.—A pilot program 

under paragraph (1) may not commence until the date that 

is 30 days after publication in the Federal Register of a determination by the chairperson of the Committee of the scope 

of and procedures for the pilot program. That determination 

may not be delegated. 

SEC. 1728. SEVERABILITY. 

If any provision of this subtitle or an amendment made by 

this subtitle, or the application of such a provision or amendment 

to any person or circumstance, is held to be invalid, the application 

of that provision or amendment to other persons or circumstances 

and the remainder of the provisions of this subtitle and the amendments made by this subtitle, shall not be affected thereby.