I 

109TH CONGRESS 

2D SESSION H. R. 5337 

To ensure national security while promoting foreign investment and the creation and maintenance of jobs, to reform the process by which such 

investments are examined for any effect they may have on national 

security, to establish the Committee on Foreign Investment in the United 

States, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 10, 2006 

Mr. BLUNT (for himself, Ms. PRYCE of Ohio, Mrs. MALONEY, Mr. CROWLEY, 

Mr. KING of New York, Mr. HOEKSTRA, Mr. BARTON of Texas, Mr. 

SMITH of Texas, Mr. YOUNG of Alaska, Mr. MANZULLO, Mr. REYNOLDS, 

Mr. BAKER, Mr. BACHUS, Mr. NEY, Mrs. KELLY, Mr. FOLEY, Mr. 

FOSSELLA, Mrs. BIGGERT, Mrs. MYRICK, Mr. DOOLITTLE, Ms. HARRIS, 

Mr. SHAYS, and Mr. MCCOTTER) introduced the following bill; which was 

referred to the Committee on Financial Services, and in addition to the 

Committees on Energy and Commerce and International Relations, for a 

period to be subsequently determined by the Speaker, in each case for 

consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To ensure national security while promoting foreign investment and the creation and maintenance of jobs, to reform the process by which such investments are examined for any effect they may have on national security, 

to establish the Committee on Foreign Investment in 

the United States, and for other purposes. 


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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Reform of National 

5 Security Reviews of Foreign Direct Investments Act’’. 

6 SEC. 2. UNITED STATES SECURITY IMPROVEMENT AMEND7 MENTS; CLARIFICATION OF REVIEW AND IN8 VESTIGATION PROCESS. 

9 Section 721 of the Defense Production Act of 1950 

10 (50 U.S.C. App. 2170) is amended by striking subsections 

11 (a) and (b) and inserting the following new subsections: 

12 ‘‘(a) DEFINITIONS.—For purposes of this section, the 

13 following definitions shall apply: 

14 ‘‘(1) COMMITTEE.—The term ‘Committee’ 

15 means the Committee on Foreign Investment in the 

16 United States. 

17 ‘‘(2) CONTROL.—The term ‘control’ has the 

18 meaning given to such term in regulations which the 

19 Committee shall prescribe. 

20 ‘‘(3) COVERED TRANSACTION.—The term ‘cov21 ered transaction’ means any merger, acquisition, or 

22 takeover by or with any foreign person which could 

23 result in foreign control of any person engaged in 

24 interstate commerce in the United States. 


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1 ‘‘(4) FOREIGN GOVERNMENT-CONTROLLED

2 TRANSACTION.—The term ‘foreign government-con3 trolled transaction’ means any covered transaction 

4 that could result in the control of any person en5 gaged in interstate commerce in the United States 

6 by a foreign government or an entity controlled by 

7 or acting on behalf of a foreign government. 

8 ‘‘(5) CLARIFICATION.—The term ‘national secu9 rity’ shall be construed so as to include those issues 

10 relating to ‘‘homeland security,’’ including its appli11 cation to critical infrastructure (as defined in the 

12 Homeland Security Act of 2002). 

13 ‘‘(b) NATIONAL SECURITY REVIEWS AND INVESTIGA14 TIONS.— 

15 ‘‘(1) NATIONAL SECURITY REVIEWS.— 

16 ‘‘(A) IN GENERAL.—Upon receiving writ17 ten notification under subparagraph (C) of any 

18 covered transaction, or on a motion made under 

19 subparagraph (D) with respect to any covered 

20 transaction, the President, acting through the 

21 Committee, shall review the covered transaction 

22 to determine whether the transaction threatens 

23 to impair the national security of the United 

24 States and whether such threat can be miti25 gated. 


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1 ‘‘(B) CONTROL BY FOREIGN GOVERN2 MENT.—If the Committee determines that the 

3 covered transaction is a foreign government4 controlled transaction, the Committee shall con5 duct an investigation of the transaction under 

6 paragraph (2). 

7 ‘‘(C) WRITTEN NOTICE.— 

8 ‘‘(i) IN GENERAL.—Any party to any 

9 covered transaction may initiate a review 

10 of the transaction under this paragraph by 

11 submitting a written notice of the trans12 action to the Chairperson of the Com13 mittee. 

14 ‘‘(ii) WITHDRAWAL OF NOTICE.—No 

15 covered transaction for which a notice was 

16 submitted under clause (i) may be with17 drawn from review unless— 

18 ‘‘(I) a written request for such 

19 withdrawal is submitted by any party 

20 to the transaction; and 

21 ‘‘(II) the request is approved in 

22 writing by the Chairperson, in con23 sultation with the Vice Chairperson, 

24 of the Committee. 


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1 ‘‘(D) UNILATERAL INITIATION OF RE2 VIEW.—The President, the Committee, or any 

3 member of the Committee may move to initiate 

4 a review under subparagraph (A) of— 

5 ‘‘(i) any covered transaction; 

6 ‘‘(ii) any covered transaction that has 

7 previously been reviewed or investigated 

8 under this section, if any party to the 

9 transaction submitted false or misleading 

10 material information to the Committee in 

11 connection with the review or investigation 

12 or omitted material information, including 

13 material documents, from information sub14 mitted to the Committee; or 

15 ‘‘(iii) any covered transaction that has 

16 previously been reviewed or investigated 

17 under this section, if any party to the 

18 transaction or the entity resulting from 

19 consummation of the transaction inten20 tionally materially breaches a mitigation 

21 agreement or condition described in sub22 section (l)(1)(A), and— 

23 ‘‘(I) such breach is certified by 

24 the lead department or agency moni25 toring and enforcing such agreement 


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1 or condition as an intentional material 

2 breach; and 

3 ‘‘(II) such department or agency 

4 certifies that there is no other remedy 

5 or enforcement tool available to ad6 dress such breach. 

7 ‘‘(E) TIMING.—Any review under this 

8 paragraph shall be completed before the end of 

9 the 30-day period beginning on the date of the 

10 receipt of written notice under subparagraph 

11 (C) by the Chairperson of the Committee, or 

12 the date of the initiation of the review in ac13 cordance with a motion under subparagraph 

14 (D). 

15 ‘‘(2) NATIONAL SECURITY INVESTIGATIONS.— 

16 ‘‘(A) IN GENERAL.—In each case in 

17 which— 

18 ‘‘(i) a review of a covered transaction 

19 under paragraph (1) results in a deter20 mination that— 

21 ‘‘(I) the transaction threatens to 

22 impair the national security of the 

23 United States and that threat has not 

24 been mitigated during or prior to the 


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1 review of a covered transaction under 

2 paragraph (1); or 

3 ‘‘(II) the transaction is a foreign 

4 government-controlled transaction; or 

5 ‘‘(ii) the Director of National Intel6 ligence identifies particularly complex na7 tional security or intelligence issues that 

8 could threaten to impair the national secu9 rity of the United States and were not re10 solved during the initial review period 

11 under paragraph (1), 

12 the President, acting through the Committee, 

13 shall immediately conduct an investigation of 

14 the effects of the transaction on the national se15 curity of the United States and take any nec16 essary actions in connection with the trans17 action to protect the national security of the 

18 United States. 

19 ‘‘(B) TIMING.— 

20 ‘‘(i) IN GENERAL.—Any investigation 

21 under subparagraph (A) shall be completed 

22 before the end of the 45-day period begin23 ning on the date of the investigation com24 menced. 


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1 ‘‘(ii) EXTENSIONS OF TIME.—The pe2 riod established under subparagraph (B) 

3 for any investigation of a covered trans4 action may be extended with respect to any 

5 particular investigation by the President or 

6 by a rollcall vote of at least 2/3 of the 

7 members of the Committee involved in the 

8 investigation by the amount of time speci9 fied by the President or the Committee at 

10 the time of the extension, not to exceed 45 

11 days, as necessary to collect and fully 

12 evaluate information relating to— 

13 ‘‘(I) the covered transaction or 

14 parties to the transaction; and 

15 ‘‘(II) any effect of the trans16 action that could threaten to impair 

17 the national security of the United 

18 States. 

19 ‘‘(3) APPROVAL OF CHAIRPERSON AND VICE

20 CHAIRPERSON REQUIRED.— 

21 ‘‘(A) IN GENERAL.—A review or investiga22 tion under this subsection of a covered trans23 action shall not be treated as final or complete 

24 until the findings and the report resulting from 

25 such review or investigation are approved and 


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1 signed by both the Secretary of the Treasury 

2 and the Secretary of Homeland Security (and 

3 such authority of each such Secretary may not 

4 be delegated to any person other than the Dep5 uty Secretary of the Treasury or the Deputy 

6 Secretary of Homeland Security, respectively). 

7 ‘‘(B) ADDITIONAL ACTIONS REQUIRED IN

8 CERTAIN CASES.—In the case of an investiga9 tion under paragraph (2) of any foreign govern10 ment-controlled transaction, an investigation 

11 shall not be treated as final or complete until 

12 the findings and report resulting from such in13 vestigation— 

14 ‘‘(i) are approved by a majority of the 

15 members of the Committee in a roll call 

16 vote; and 

17 ‘‘(ii) in the case of any roll call vote 

18 pursuant to clause (i) in which there is at 

19 least 1 vote by a Committee member 

20 against approving a foreign government21 controlled transaction, are signed by the 

22 President (in addition to the Chairperson 

23 and the Vice Chairperson of the Committee 

24 under subparagraph (A)). 


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1 ‘‘(4) ANALYSIS BY DIRECTOR OF NATIONAL IN2 TELLIGENCE.— 

3 ‘‘(A) IN GENERAL.—The Director of Na4 tional Intelligence shall expeditiously carry out 

5 a thorough analysis of any threat to the na6 tional security of the United States of any cov7 ered transaction, including an affirmative in8 quiry for information to the Director of the Of9 fice of Foreign Assets Control within the De10 partment of the Treasury and the Director of 

11 the Financial Crimes Enforcement Network. 

12 ‘‘(B) 30-DAY MINIMUM.—The analysis re13 quired under subparagraph (A) shall take no 

14 less than 30 days and be completed no less than 

15 7 days before the end of the initial review pe16 riod under paragraph (1), except in any in17 stance described in paragraph (2)(A)(ii). 

18 ‘‘(C) INDEPENDENT ROLE OF DIRECTOR.— 

19 The Director of National Intelligence shall not 

20 be a member of the Committee and shall serve 

21 no policy role with the Committee other than to 

22 provide analysis under subparagraph (A) in 

23 connection with a covered transaction. 

24 ‘‘(5) RESUBMITTALS OF NOTICE AND REQUESTS

25 FOR ADDITIONAL REVIEW OR INVESTIGATION.— 


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1 ‘‘(A) IN GENERAL.—No provision of this 

2 subsection shall be construed as prohibiting any 

3 party to a covered transaction from— 

4 ‘‘(i) submitting additional information 

5 concerning the transaction, including any 

6 proposed restructuring of the transaction 

7 or any modifications to any agreements in 

8 connection with the transaction, while any 

9 review or investigation of the transaction is 

10 on-going; or 

11 ‘‘(ii) requesting a review or investiga12 tion of the transaction after any previous 

13 review or investigation of the same or a 

14 similar transaction has become final if in15 formation material to the prior review or 

16 investigation and not previously submitted 

17 to the Committee becomes known or if any 

18 material change in circumstances to the 

19 covered transaction has occurred since the 

20 review or investigation. 

21 ‘‘(B) APPROVAL OF REQUEST.—In the 

22 case of a request referred to in subparagraph 

23 (A)(ii), the Committee shall determine by con24 sensus whether to grant a request. 


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1 ‘‘(6) REGULATIONS.—Regulations prescribed 

2 under this section shall include standard procedures 

3 for— 

4 ‘‘(A) submitting any notice of a proposed 

5 or pending covered transaction to the Com6 mittee; 

7 ‘‘(B) submitting a request to withdraw a 

8 proposed or pending covered transaction from 

9 review; and 

10 ‘‘(C) resubmitting a notice of proposed or 

11 pending covered transaction that was previously 

12 withdrawn from review.’’. 

13 SEC. 3. STATUTORY ESTABLISHMENT OF THE COMMITTEE 

14 ON FOREIGN INVESTMENT IN THE UNITED 

15 STATES. 

16 (a) IN GENERAL.—Section 721 of the Defense Pro17 duction Act of 1950 (50 U.S.C. App. 2170) is amended 

18 by striking subsection (k) and inserting the following new 

19 subsection: 

20 ‘‘(k) COMMITTEE ON FOREIGN INVESTMENT IN THE

21 UNITED STATES.— 

22 ‘‘(1) ESTABLISHMENT.—The Committee on 

23 Foreign Investment in the United States established 

24 pursuant to Executive Order No. 11858 shall be a 

25 multi-agency committee to carry out this section and 


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1 such other assignments as the President may des2 ignate. 

3 ‘‘(2) MEMBERSHIP.—The Committee shall be 

4 comprised of the following members or the designee 

5 of any such member: 

6 ‘‘(A) The Secretary of the Treasury. 

7 ‘‘(B) The Secretary of Homeland Security. 

8 ‘‘(C) The Secretary of Commerce. 

9 ‘‘(D) The Secretary of Defense. 

10 ‘‘(E) The Secretary of State. 

11 ‘‘(F) The Attorney General. 

12 ‘‘(G) The Chairman of the Council of Eco13 nomic Advisors. 

14 ‘‘(H) The United States Trade Represent15 ative. 

16 ‘‘(I) The Director of the Office of Manage17 ment and Budget. 

18 ‘‘(J) The Director of the National Eco19 nomic Council. 

20 ‘‘(K) The Director of the Office of Science 

21 and Technology Policy. 

22 ‘‘(L) The President’s Assistant for Na23 tional Security Affairs. 

24 ‘‘(M) Any other designee of the President 

25 from the Executive Office of the President. 


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1 ‘‘(3) CHAIRPERSON; VICE CHAIRPERSON.—The 

2 Secretary of the Treasury shall be the Chairperson 

3 of the Committee. The Secretary of Homeland Secu4 rity shall be the Vice Chairperson of the Committee. 

5 ‘‘(4) OTHER MEMBERS.—Subject to subsection 

6 (b)(4)(B), the Chairperson of the Committee shall 

7 involve the heads of such other Federal departments, 

8 agencies, and independent establishments in any re9 view or investigation under subsection (b) as the 

10 Chairperson, after consulting with the Vice Chair11 person, determines to be appropriate on the basis of 

12 the facts and circumstances of the transaction under 

13 investigation (or the designee of any such depart14 ment or agency head). 

15 ‘‘(5) MEETINGS.—The Committee shall meet 

16 upon the direction of the President or upon the call 

17 of the Chairperson of the Committee without regard 

18 to section 552b of title 5, United States Code (if 

19 otherwise applicable). 

20 ‘‘(6) COLLECTION OF EVIDENCE.—Subject to 

21 subsection (c), the Committee may, for the purpose 

22 of carrying out this section— 

23 ‘‘(A) sit and act at such times and places, 

24 take such testimony, receive such evidence, ad25 minister such oaths; and 


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1 ‘‘(B) require the attendance and testimony 

2 of such witnesses and the production of such 

3 books, records, correspondence, memoranda, pa4 pers, and documents as the Chairperson of the 

5 Committee may determine advisable. 

6 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.— 

7 There are authorized to be appropriated to the Sec8 retary of the Treasury for each of fiscal years 2007, 

9 2008, 2009, and 2010, expressly and solely for the 

10 operations of the Committee that are conducted by 

11 the Secretary, the sum of $10,000,000.’’. 

12 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

13 The first sentence of section 721(c) of the Defense Pro14 duction Act of 1950 (50 U.S.C. App. 2170(c)) is amend15 ed— 

16 (1) by striking ‘‘material filed with’’ and insert17 ing ‘‘material, including proprietary business infor18 mation, filed with, or testimony presented to,’’; and 

19 (2) by striking ‘‘or documentary material’’ the 

20 2nd place such term appears and inserting ‘‘, docu21 mentary material, or testimony’’. 

22 SEC. 4. ADDITIONAL FACTORS REQUIRED TO BE CONSID23 ERED. 

24 Section 721(f) of the Defense Production Act of 1950 

25 (50 U.S.C. App. 2170(f)) is amended— 


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1 (1) in the matter preceding paragraph (1)— 

2 (A) by striking ‘‘may’’ and inserting 

3 ‘‘shall’’; and 

4 (B) by striking ‘‘among other factors’’; 

5 (2) by striking ‘‘and’’ at the end of paragraph 

6 (4); 

7 (3) by striking the period at the end of para8 graph (5) and inserting a semicolon; and 

9 (4) by adding at the end the following new 

10 paragraphs: 

11 ‘‘(6) whether the covered transaction has a se12 curity-related impact on critical infrastructure in the 

13 United States; 

14 ‘‘(7) whether the covered transaction is a for15 eign government-controlled transaction; and 

16 ‘‘(8) such other factors as the President or the 

17 President’s designee may determine to be appro18 priate, generally or in connection with a specific re19 view or investigation.’’. 

20 SEC. 5. NONWAIVER OF SOVEREIGN IMMUNITY. 

21 Section 721(d) of the Defense Production Act of 

22 1950 (50 U.S.C. App. 2170(d)) is amended by adding at 

23 the end the following new sentence: ‘‘The United States 

24 shall not be held liable for any losses or other expenses 

25 incurred by any party to a covered transaction as a result 


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1 of actions taken under this section after a covered trans2 action has been consummated if the party did not submit 

3 a written notice of the transaction to the Chairperson of 

4 the Committee under subsection (b)(1)(C) or did not wait 

5 until the completion of any review or investigation under 

6 subsection (b), or the end of the 15-day period referred 

7 to in this subsection, before consummating the trans8 action.’’. 

9 SEC. 6. MITIGATION, TRACKING, AND POST-CONSUMMA10 TION MONITORING AND ENFORCEMENT. 

11 Section 721 of the Defense Production Act of 1950 

12 (50 U.S.C. App. 2170) is amended by inserting after sub13 section (k) (as amended by section 3 of this Act) the fol14 lowing new subsection: 

15 ‘‘(l) MITIGATION, TRACKING, AND

16 POSTCONSUMMATION MONITORING AND ENFORCE17 MENT.— 

18 ‘‘(1) MITIGATION.— 

19 ‘‘(A) IN GENERAL.—The Committee may 

20 negotiate, enter into or impose, and enforce any 

21 agreement or condition with any party to a cov22 ered transaction in order to mitigate any threat 

23 to the national security of the United States. 

24 ‘‘(B) RISK-BASED ANALYSIS REQUIRED.— 

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1 posed under subparagraph (A) shall be based 

2 on a risk-based analysis of the threat to na3 tional security of the covered transaction. 

4 ‘‘(2) TRACKING AUTHORITY FOR WITHDRAWN

5 NOTICES.— 

6 ‘‘(A) IN GENERAL.—If any written notice 

7 of a covered transaction that was submitted to 

8 the Committee under this section is withdrawn 

9 before any review or investigation by the Com10 mittee under subsection (b) is completed, the 

11 Committee shall establish, as appropriate— 

12 ‘‘(i) interim protections to address 

13 specific concerns with such transaction 

14 that have been raised in connection with 

15 any such review or investigation pending 

16 any resubmission of any written notice 

17 under this section with respect to such 

18 transaction and further action by the 

19 President under this section; 

20 ‘‘(ii) specific timeframes for resubmit21 ting any such written notice; and 

22 ‘‘(iii) a process for tracking any ac23 tions that may be taken by any party to 

24 the transaction, in connection with the 


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1 transaction, before the notice referred to in 

2 clause (ii) is resubmitted. 

3 ‘‘(B) DESIGNATION OF AGENCY.—The 

4 Committee may designate an appropriate Fed5 eral department or agency, other than any enti6 ty of the intelligence community (as defined in 

7 the National Security Act of 1947), as the lead 

8 agency to carry out the requirements of sub9 paragraph (A) with respect to any covered 

10 transaction that is subject to such subpara11 graph. 

12 ‘‘(3) NEGOTIATION, MODIFICATION, MONI13 TORING, AND ENFORCEMENT.— 

14 ‘‘(A) DESIGNATION OF AGENCY.—The 

15 Committee shall designate a Federal depart16 ment or agency as the lead agency to negotiate, 

17 modify, monitor, and enforce any agreement en18 tered into or condition imposed under para19 graph (1) with respect to a covered transaction 

20 based on the expertise with and knowledge of 

21 the issues related to such transaction on the 

22 part of the designated department or agency. 

23 ‘‘(B) REPORTING BY DESIGNATED AGEN24 CY.— 


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1 ‘‘(i) IMPLEMENTATION REPORTS.— 

2 The Federal department or agency des3 ignated by the Committee as a lead agency 

4 under subparagraph (A) in connection with 

5 any agreement entered into or condition 

6 imposed under paragraph (1) with respect 

7 to a covered transaction shall— 

8 ‘‘(I) provide periodic reports to 

9 the Chairperson and Vice Chairperson 

10 of the Committee on the implementa11 tion of such agreement or condition; 

12 and 

13 ‘‘(II) require, as appropriate, any 

14 party to the covered transaction to re15 port to the head of such department 

16 or agency (or the designee of such de17 partment or agency head) on the im18 plementation or any material change 

19 in circumstances. 

20 ‘‘(ii) MODIFICATION REPORTS.—The 

21 Federal department or agency designated 

22 by the Committee as a lead agency under 

23 subparagraph (A) in connection with any 

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1 posed with respect to a covered transaction 

2 shall— 

3 ‘‘(I) provide periodic reports to 

4 the Chairperson and Vice Chairperson 

5 of the Committee on any modification 

6 to any such agreement or condition 

7 imposed with respect to the trans8 action; and 

9 ‘‘(II) ensure that any significant 

10 modification to any such agreement or 

11 condition is reported to the Director 

12 of National Intelligence and to any 

13 other Federal department or agency 

14 that may have a material interest in 

15 such modification.’’. 

16 SEC. 7. INCREASED OVERSIGHT BY THE CONGRESS. 

17 (a) REPORT ON ACTIONS.—Section 721(g) of the De18 fense Production Act of 1950 (50 U.S.C. App. 2170) is 

19 amended to read as follows: 

20 ‘‘(g) REPORTS TO THE CONGRESS.— 

21 ‘‘(1) REPORTS ON COMPLETED COMMITTEE IN22 VESTIGATIONS.— 

23 ‘‘(A) IN GENERAL.—Not later than 5 days 

24 after the completion of a Committee investiga25 tion of a covered transaction under subsection 


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1 (b)(2), or, if the President indicates an intent 

2 to take any action authorized under subsection 

3 (d) with respect to the transaction, after the 

4 end of 15-day period referred to in subsection 

5 (d), the Chairperson or Vice Chairperson of the 

6 Committee shall submit a written report on the 

7 findings or actions of the Committee with re8 spect to such investigation, the determination of 

9 whether or not to take action under subsection 

10 (d), an explanation of the findings under sub11 section (e), and the factors considered under 

12 subsection (f), with respect to such transaction, 

13 to— 

14 ‘‘(i) the Majority Leader and the Mi15 nority Leader of the Senate; 

16 ‘‘(ii) the Speaker and the Minority 

17 Leader of the House of Representatives; 

18 and 

19 ‘‘(iii) the chairman and ranking mem20 ber of each committee of the House of 

21 Representatives and the Senate with juris22 diction over any aspect of the covered 

23 transaction and its possible effects on na24 tional security. 


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1 ‘‘(B) NOTICE AND BRIEFING REQUIRE2 MENT.—If a written request for a briefing on a 

3 covered transaction is submitted to the Com4 mittee by any Senator or Member of Congress 

5 who receives a report on the transaction under 

6 subparagraph (A), the Chairperson or Vice 

7 Chairperson (or such other person as the Chair8 person or Vice Chairperson may designate) 

9 shall provide 1 classified briefing to each House 

10 of the Congress from which any such briefing 

11 request originates in a secure facility of appro12 priate size and location that shall be open only 

13 to the Majority Leader and the Minority Leader 

14 of the Senate, the Speaker and the Minority 

15 Leader of the House of Representatives, (as the 

16 case may be) the chairman and ranking mem17 ber of each committee of the House of Rep18 resentatives or the Senate (as the case may be) 

19 with jurisdiction over any aspect of the covered 

20 transaction and its possible effects on national 

21 security, and appropriate staff members who 

22 have security clearance. 

23 ‘‘(2) APPLICATION OF OTHER PROVISION.— 

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1 sistent with the requirements of subsection (c). 

2 Members of Congress and staff of either House 

3 or any committee of the Congress shall be sub4 ject to the same limitations on disclosure of in5 formation as are applicable under such sub6 section. 

7 ‘‘(B) PROPRIETARY INFORMATION.—Pro8 prietary information which can be associated 

9 with a particular party to a covered transaction 

10 shall be furnished in accordance with subpara11 graph (A) only to a committee of the Congress 

12 and only when the committee provides assur13 ances of confidentiality, unless such party oth14 erwise consents in writing to such disclosure.’’. 

15 (b) SEMI-ANNUAL REPORT.—Section 721 of the De16 fense Production Act of 1950 (50 U.S.C. App. 2170) is 

17 amended by inserting after subsection (l) (as added by sec18 tion 6 of this Act) the following new subsection: 

19 ‘‘(m) SEMI-ANNUAL REPORT TO THE CONGRESS.— 

20 ‘‘(1) IN GENERAL.—The Chairperson of the 

21 Committee shall transmit a report to the Congress 

22 before January 31 and July 31 of each year on all 

23 the reviews and investigations of covered trans24 actions conducted under subsection (b) during the 6- 

25 month period covered by the report. 


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1 ‘‘(2) CONTENTS OF REPORT RELATING TO COV2 ERED TRANSACTIONS.—The report under paragraph 

3 (1) shall contain the following information with re4 spect to each covered transaction: 

5 ‘‘(A) A list of all notices filed and all re6 views or investigations conducted during the pe7 riod with basic information on each party to the 

8 transaction, the nature of the business activities 

9 or products of all pertinent persons, along with 

10 information about the status of the review or 

11 investigation, information on any withdrawal 

12 from the process, any rollcall votes by the Com13 mittee under this section, any extension of time 

14 for any investigation, and any presidential deci15 sion or action under this section. 

16 ‘‘(B) Specific, cumulative, and, as appro17 priate, trend information on the numbers of fil18 ings, investigations, withdrawals, and presi19 dential decisions or actions under this section. 

20 ‘‘(C) Cumulative and, as appropriate, 

21 trend information on the business sectors in22 volved in the filings which have been made, and 

23 the countries from which the investments have 

24 originated. 


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1 ‘‘(D) Information on whether companies 

2 that withdrew notices to the Committee in ac3 cordance with subsection (b)(1)(C)(ii) have 

4 later re-filed such notices, or, alternatively, 

5 abandoned the transaction. 

6 ‘‘(E) The types of security arrangements 

7 and conditions the Committee has used to miti8 gate national security concerns about a trans9 action. 

10 ‘‘(F) A detailed discussion of all perceived 

11 adverse effects of covered transactions on the 

12 national security or critical infrastructure of the 

13 United States that the Committee will take into 

14 account in its deliberations during the period 

15 before delivery of the next such report, to the 

16 extent possible. 

17 ‘‘(3) CONTENTS OF REPORT RELATING TO

18 CRITICAL TECHNOLOGIES.— 

19 ‘‘(A) IN GENERAL.—In order to assist the 

20 Congress in its oversight responsibilities with 

21 respect to this section, the President and such 

22 agencies as the President shall designate shall 

23 include in the semi-annual report submitted 

24 under paragraph (1) the following: 


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1 ‘‘(i) An evaluation of whether there is 

2 credible evidence of a coordinated strategy 

3 by 1 or more countries or companies to ac4 quire United States companies involved in 

5 research, development, or production of 

6 critical technologies for which the United 

7 States is a leading producer. 

8 ‘‘(ii) An evaluation of whether there 

9 are industrial espionage activities directed 

10 or directly assisted by foreign governments 

11 against private United States companies 

12 aimed at obtaining commercial secrets re13 lated to critical technologies. 

14 ‘‘(B) CRITICAL TECHNOLOGIES DE15 FINED.—For purposes of this paragraph, the 

16 term ‘critical technologies’ means technologies 

17 identified under title VI of the National Science 

18 and Technology Policy, Organization, and Pri19 orities Act of 1976 or other critical technology, 

20 critical components, or critical technology items 

21 essential to national defense or national security 

22 identified pursuant to this section. 

23 ‘‘(C) RELEASE OF UNCLASSIFIED

24 STUDY.—That portion of the semi-annual re25 port under paragraph (1) that is required by 


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1 this paragraph may be classified. An unclassi2 fied version of that portion of the report shall 

3 be made available to the public.’’. 

4 (c) INVESTIGATION BY INSPECTOR GENERAL.— 

5 (1) IN GENERAL.—The Inspector General of 

6 the Department of the Treasury shall conduct an 

7 independent investigation to determine all of the 

8 facts and circumstances concerning each failure of 

9 the Department of the Treasury to make any report 

10 to the Congress that was required under section 

11 721(k) of the Defense Production Act of 1950 (as 

12 in effect before the date of the enactment of this 

13 Act). 

14 (2) REPORT TO THE CONGRESS.—Before the 

15 end of the 270-day period beginning on the date of 

16 the enactment of this Act, the Inspector General of 

17 the Department of the Treasury shall submit a re18 port to the Congress on the investigation under 

19 paragraph (1) containing the findings and conclu20 sions of the Inspector General. 

21 SEC. 8. CERTIFICATION OF NOTICES AND ASSURANCES. 

22 Section 721 of the Defense Production Act of 1950 

23 (50 U.S.C. App. 2170) is amended by inserting after sub24 section (m) (as added by section 7(b) of this Act) the fol25 lowing new subsection: 


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1 ‘‘(n) CERTIFICATION OF NOTICES AND ASSUR2 ANCES.—Each notice required to be submitted to the 

3 President or the President’s designee under this section 

4 and regulations prescribed under such section, and each 

5 report required pursuant to paragraph (3)(B)(ii) of sub6 section (l) with respect to the implementation of any miti7 gation agreement or condition described in paragraph 

8 (1)(A) of such subsection or any material change in cir9 cumstances shall be accompanied by a written statement 

10 by the chief executive officer or the designee of the person 

11 required to submit such notice or report certifying that, 

12 to the best of the person’s knowledge and belief— 

13 ‘‘(1) the notice or report submitted fully com14 plies with the requirements of this section or such 

15 regulation, agreement, or condition; and 

16 ‘‘(2) the information so contained is accurate 

17 and complete in all material respects.’’. 

18 SEC. 9. REGULATIONS. 

19 Section 721(h) of the Defense Production Act of 

20 1950 (50 U.S.C. App. 2170(h)) is amended to read as 

21 follows: 

22 ‘‘(h) REGULATIONS.—The President shall direct the 

23 issuance of regulations to carry out this section. Such reg24 ulations shall, to the extent possible, minimize paperwork 

25 burdens and shall to the extent possible coordinate reportVerDate Aug 31 2005 04:18 May 13, 2006 Jkt 049200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\H5337.IH H5337

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1 ing requirements under this section with reporting re2 quirements under any other provision of Federal law.’’. 

3 SEC. 10. EFFECT ON OTHER LAW. 

4 Section 721(i) of the Defense Production Act of 1950 

5 (50 U.S.C. App. 2170(i)) is amended to read as follows: 

6 ‘‘(i) EFFECT ON OTHER LAW.—No provision of this 

7 section shall be construed as altering or affecting any 

8 other authority, process, regulation, investigation, enforce9 ment measure, or review provided by or established under 

10 any other provision of Federal law, including the Inter11 national Emergency Economic Powers Act, or any other 

12 authority of the President or the Congress under the Con13 stitution of the United States.’’. 

Æ 


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