`[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5337 Reported in House (RH)]







                                                 Union Calendar No. 329
109th CONGRESS
  2d Session
                                H. R. 5337

                  [Report No. 109-523, Parts I and II]

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

                             June 22, 2006

  Reported from the Committee on Financial Services with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                             June 22, 2006

   Referral to Committees on International Relations and Energy and 
   Commerce extended for a period ending not later than July 17, 2006

                             July 17, 2006

  Additional sponsors: Mr. Camp of Michigan, Mr. Clay, Mr. Ford, Mr. 
Meeks of New York, Mr. Moore of Kansas, Ms. Ros-Lehtinen, Mr. Scott of 
Georgia, Mr. Sessions, Mr. Stearns, Mr. Wamp, Mr. Davis of Alabama, Ms. 
 Hooley, Ms. Bean, Mr. Coble, Mr. Feeney, Mr. Leach, Mr. Matheson, Ms. 
     Carson, Mr. English of Pennsylvania, Mr. Israel, Ms. Moore of 
  Wisconsin, Mr. Shuster , Mr. Campbell of California, Mr. Owens, Mr. 
 McHenry, Mr. Rangel, Mr. Tiahrt, Mr. Tiberi, Ms. Velazquez, Mr. Watt, 
  Mrs. Cubin, Mr. Hastings of Florida, Mr. Hinojosa, Mr. Al Green of 
Texas, Mr. Garrett of New Jersey, Mr. Reichert, Ms. Wasserman Schultz, 
 Mr. Bishop of New York, Mr. Cleaver, Mr. Gutierrez, Ms. Lee, Mr. Meek 
  of Florida, Mr. Lucas, Mr. Lynch, Mr. Miller of North Carolina, Mr. 
Gillmor, Mr. Price of Georgia, Mr. LaTourette, Mr. Gene Green of Texas, 
  Ms. Harman, Mr. Pearce, Mr. Thompson of Mississippi, Mr. Baca, Mrs. 
 McCarthy, Mr. Cummings, Mr. Gary G. Miller of California, Mr. Bradley 
of New Hampshire, Mr. Van Hollen, Mr. Towns, Mr. Kuhl of New York, Mr. 
      Sullivan, Mr. Melancon, Mr. Murphy, Mr. Nunes, and Mr. Terry

                             July 17, 2006

  Reported from the Committee on Energy and Commerce with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                             July 17, 2006

   Committee on International Relations discharged; committed to the 
 Committee of the Whole House on the State of the Union and ordered to 
                               be printed
[For text of introduced bill, see copy of bill as introduced on May 10, 
                                 2006]

_______________________________________________________________________

                                 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.

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

SEC. 1. SHORT TITLE.

    This Act may be cited as the ``National Security Foreign Investment 
Reform and Strengthened Transparency Act of 2006''.

SEC. 2. UNITED STATES SECURITY IMPROVEMENT AMENDMENTS; CLARIFICATION OF 
              REVIEW AND INVESTIGATION PROCESS.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended by striking subsections (a) and (b) and inserting the 
following new subsections:
    ``(a) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Committee.--The term `Committee' means the Committee 
        on Foreign Investment in the United States.
            ``(2) Control.--The term `control' has the meaning given to 
        such term in regulations which the Committee shall prescribe.
            ``(3) Covered transaction.--The term `covered transaction' 
        means any merger, acquisition, or takeover by or with any 
        foreign person which could result in foreign control of any 
        person engaged in interstate commerce in the United States.
            ``(4) Foreign government-controlled transaction.--The term 
        `foreign government-controlled transaction' means any covered 
        transaction that could result in the control of any person 
        engaged in interstate commerce in the United States by a 
        foreign government or an entity controlled by or acting on 
        behalf of a foreign government.
            ``(5) Clarification.--The term `national security' shall be 
        construed so as to include those issues relating to `homeland 
        security', including its application to critical infrastructure 
        (as defined in the Homeland Security Act of 2002).
    ``(b) National Security Reviews and Investigations.--
            ``(1) National security reviews.--
                    ``(A) In general.--Upon receiving written 
                notification under subparagraph (C) of any covered 
                transaction, or on a motion made under subparagraph (D) 
                with respect to any covered transaction, the President, 
                acting through the Committee, shall review the covered 
                transaction to determine whether the transaction 
                threatens to impair the national security of the United 
                States and whether such threat can be mitigated.
                    ``(B) Control by foreign government.--If the 
                Committee determines that the covered transaction is a 
                foreign government-controlled transaction, the 
                Committee shall conduct an investigation of the 
                transaction under paragraph (2).
                    ``(C) Written notice.--
                            ``(i) In general.--Any party to any covered 
                        transaction may initiate a review of the 
                        transaction under this paragraph by submitting 
                        a written notice of the transaction to the 
                        Chairperson of the Committee.
                            ``(ii) Withdrawal of notice.--No covered 
                        transaction for which a notice was submitted 
                        under clause (i) may be withdrawn from review 
                        unless--
                                    ``(I) a written request for such 
                                withdrawal is submitted by any party to 
                                the transaction; and
                                    ``(II) the request is approved in 
                                writing by the Chairperson, in 
                                consultation with the Vice Chairperson, 
                                of the Committee.
                    ``(D) Unilateral initiation of review.--The 
                President, the Committee, or any member of the 
                Committee may move to initiate a review under 
                subparagraph (A) of--
                            ``(i) any covered transaction;
                            ``(ii) any covered transaction that has 
                        previously been reviewed or investigated under 
                        this section, if any party to the transaction 
                        submitted false or misleading material 
                        information to the Committee in connection with 
                        the review or investigation or omitted material 
                        information, including material documents, from 
                        information submitted to the Committee; or
                            ``(iii) any covered transaction that has 
                        previously been reviewed or investigated under 
                        this section, if any party to the transaction 
                        or the entity resulting from consummation of 
                        the transaction intentionally materially 
                        breaches a mitigation agreement or condition 
                        described in subsection (l)(1)(A), and--
                                    ``(I) such breach is certified by 
                                the lead department or agency 
                                monitoring and enforcing such agreement 
                                or condition as an intentional material 
                                breach; and
                                    ``(II) such department or agency 
                                certifies that there is no other remedy 
                                or enforcement tool available to 
                                address such breach.
                    ``(E) Timing.--Any review under this paragraph 
                shall be completed before the end of the 30-day period 
                beginning on the date of the receipt of written notice 
                under subparagraph (C) by the Chairperson of the 
                Committee, or the date of the initiation of the review 
                in accordance with a motion under subparagraph (D).
            ``(2) National security investigations.--
                    ``(A) In general.--In each case in which--
                            ``(i) a review of a covered transaction 
                        under paragraph (1) results in a determination 
                        that--
                                    ``(I) the transaction threatens to 
                                impair the national security of the 
                                United States and that threat has not 
                                been mitigated during or prior to the 
                                review of a covered transaction under 
                                paragraph (1); or
                                    ``(II) the transaction is a foreign 
                                government-controlled transaction; or
                            ``(ii) the Director of National 
                        Intelligence identifies particularly complex 
                        national security or intelligence issues that 
                        could threaten to impair the national security 
                        of the United States and Committee members were 
                        not able to develop and agree upon measures to 
                        mitigate satisfactorily those threats during 
                        the initial review period under paragraph (1),
                the President, acting through the Committee, shall 
                immediately conduct an investigation of the effects of 
                the transaction on the national security of the United 
                States and take any necessary actions in connection 
                with the transaction to protect the national security 
                of the United States.
                    ``(B) Timing.--
                            ``(i) In general.--Any investigation under 
                        subparagraph (A) shall be completed before the 
                        end of the 45-day period beginning on the date 
                        of the investigation commenced.
                            ``(ii) Extensions of time.--The period 
                        established under subparagraph (B) for any 
                        investigation of a covered transaction may be 
                        extended with respect to any particular 
                        investigation by the President or by a rollcall 
                        vote of at least 2/3 of the members of the 
                        Committee involved in the investigation by the 
                        amount of time specified by the President or 
                        the Committee at the time of the extension, not 
                        to exceed 45 days, as necessary to collect and 
                        fully evaluate information relating to--
                                    ``(I) the covered transaction or 
                                parties to the transaction; and
                                    ``(II) any effect of the 
                                transaction that could threaten to 
                                impair the national security of the 
                                United States.
            ``(3) Approval of chairperson and vice chairperson 
        required.--
                    ``(A) In general.--A review or investigation under 
                this subsection of a covered transaction shall not be 
                treated as final or complete until the findings and the 
                report resulting from such review or investigation are 
                approved and signed by both the Secretary of the 
                Treasury and the Secretary of Homeland Security (and 
                such authority of each such Secretary may not be 
                delegated to any person other than the Deputy Secretary 
                of the Treasury or the Deputy Secretary of Homeland 
                Security, respectively).
                    ``(B) Additional actions required in certain 
                cases.--In the case of an investigation under paragraph 
                (2) of any foreign government-controlled transaction, 
                an investigation shall not be treated as final or 
                complete until the findings and report resulting from 
                such investigation--
                            ``(i) are approved by a majority of the 
                        members of the Committee in a roll call vote; 
                        and
                            ``(ii) in the case of any roll call vote 
                        pursuant to clause (i) in which there is at 
                        least 1 vote by a Committee member against 
                        approving a foreign government-controlled 
                        transaction, are signed by the President (in 
                        addition to the Chairperson and the Vice 
                        Chairperson of the Committee under subparagraph 
                        (A)).
            ``(4) Analysis by director of national intelligence.--
                    ``(A) In general.--The Director of National 
                Intelligence shall expeditiously carry out a thorough 
                analysis of any threat to the national security of the 
                United States of any covered transaction, including 
                making requests for information to the Director of the 
                Office of Foreign Assets Control within the Department 
                of the Treasury and the Director of the Financial 
                Crimes Enforcement Network. The Director of National 
                Intelligence also shall seek and incorporate the views 
                of all appropriate intelligence agencies, including in 
                particular the Defense Intelligence Agency.
                    ``(B) 30-day minimum.--The Director of National 
                Intelligence shall be provided no less than 30 days to 
                complete the analysis required under subparagraph (A), 
                except in any instance described in paragraph 
                (2)(A)(ii).
                    ``(C) Independent role of director.--The Director 
                of National Intelligence shall not be a member of the 
                Committee and shall serve no policy role with the 
                Committee other than to provide analysis under 
                subparagraph (A) in connection with a covered 
                transaction.
            ``(5) Resubmittals of notice and requests for additional 
        review or investigation.--
                    ``(A) In general.--No provision of this subsection 
                shall be construed as prohibiting any party to a 
                covered transaction from--
                            ``(i) submitting additional information 
                        concerning the transaction, including any 
                        proposed restructuring of the transaction or 
                        any modifications to any agreements in 
                        connection with the transaction, while any 
                        review or investigation of the transaction is 
                        on-going; or
                            ``(ii) requesting a review or investigation 
                        of the transaction after any previous review or 
                        investigation of the same or a similar 
                        transaction has become final if information 
                        material to the prior review or investigation 
                        and not previously submitted to the Committee 
                        becomes known or if any material change in 
                        circumstances to the covered transaction has 
                        occurred since the review or investigation.
                    ``(B) Approval of request.--In the case of a 
                request referred to in subparagraph (A)(ii), the 
                Committee shall determine by consensus whether to grant 
                a request.
            ``(6) Regulations.--Regulations prescribed under this 
        section shall include standard procedures for--
                    ``(A) submitting any notice of a proposed or 
                pending covered transaction to the Committee;
                    ``(B) submitting a request to withdraw a proposed 
                or pending covered transaction from review; and
                    ``(C) resubmitting a notice of proposed or pending 
                covered transaction that was previously withdrawn from 
                review.''.

SEC. 3. STATUTORY ESTABLISHMENT OF THE COMMITTEE ON FOREIGN INVESTMENT 
              IN THE UNITED STATES.

    (a) In General.--Section 721 of the Defense Production Act of 1950 
(50 U.S.C. App. 2170) is amended by striking subsection (k) and 
inserting the following new subsection:
    ``(k) Committee on Foreign Investment in the United States.--
            ``(1) Establishment.--The Committee on Foreign Investment 
        in the United States established pursuant to Executive Order 
        No. 11858 shall be a multi-agency committee to carry out this 
        section and such other assignments as the President may 
        designate.
            ``(2) Membership.--The Committee shall be comprised of the 
        following members or the designee of any such member:
                    ``(A) The Secretary of the Treasury.
                    ``(B) The Secretary of Homeland Security.
                    ``(C) The Secretary of Commerce.
                    ``(D) The Secretary of Defense.
                    ``(E) The Secretary of State.
                    ``(F) The Attorney General.
                    ``(G) The Chairman of the Council of Economic 
                Advisors.
                    ``(H) The United States Trade Representative.
                    ``(I) The Director of the Office of Management and 
                Budget.
                    ``(J) The Director of the National Economic 
                Council.
                    ``(K) The Director of the Office of Science and 
                Technology Policy.
                    ``(L) The President's Assistant for National 
                Security Affairs.
                    ``(M) Any other designee of the President from the 
                Executive Office of the President.
            ``(3) Chairperson; vice chairperson.--The Secretary of the 
        Treasury shall be the Chairperson of the Committee. The 
        Secretary of Homeland Security shall be the Vice Chairperson of 
        the Committee.
            ``(4) Other members.--Subject to subsection (b)(4)(B), the 
        Chairperson of the Committee shall involve the heads of such 
        other Federal departments, agencies, and independent 
        establishments in any review or investigation under subsection 
        (b) as the Chairperson, after consulting with the Vice 
        Chairperson, determines to be appropriate on the basis of the 
        facts and circumstances of the transaction under investigation 
        (or the designee of any such department or agency head).
            ``(5) Meetings.--The Committee shall meet upon the 
        direction of the President or upon the call of the Chairperson 
        of the Committee without regard to section 552b of title 5, 
        United States Code (if otherwise applicable).
            ``(6) Collection of evidence.--Subject to subsection (c), 
        the Committee may, for the purpose of carrying out this 
        section--
                    ``(A) sit and act at such times and places, take 
                such testimony, receive such evidence, administer such 
                oaths; and
                    ``(B) require the attendance and testimony of such 
                witnesses and the production of such books, records, 
                correspondence, memoranda, papers, and documents as the 
                Chairperson of the Committee may determine advisable.
            ``(7) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary of the Treasury 
        for each of fiscal years 2007, 2008, 2009, and 2010, expressly 
        and solely for the operations of the Committee that are 
        conducted by the Secretary, the sum of $10,000,000.''.
    (b) Technical and Conforming Amendment.--The first sentence of 
section 721(c) of the Defense Production Act of 1950 (50 U.S.C. App. 
2170(c)) is amended--
            (1) by striking ``material filed with'' and inserting 
        ``material, including proprietary business information, filed 
        with, or testimony presented to,''; and
            (2) by striking ``or documentary material'' the 2nd place 
        such term appears and inserting ``, documentary material, or 
        testimony''.

SEC. 4. ADDITIONAL FACTORS REQUIRED TO BE CONSIDERED.

    Section 721(f) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2170(f)) is amended--
            (1) in the matter preceding paragraph (1)--
                    (A) by striking ``may'' and inserting ``shall''; 
                and
                    (B) by striking ``among other factors'';
            (2) by striking ``and'' at the end of paragraph (4);
            (3) by striking the period at the end of paragraph (5) and 
        inserting a semicolon; and
            (4) by adding at the end the following new paragraphs:
            ``(6) whether the covered transaction has a security-
        related impact on critical infrastructure in the United States;
            ``(7) whether the covered transaction is a foreign 
        government-controlled transaction; and
            ``(8) such other factors as the President or the 
        President's designee may determine to be appropriate, generally 
        or in connection with a specific review or investigation.''.

SEC. 5. NONWAIVER OF SOVEREIGN IMMUNITY.

    Section 721(d) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2170(d)) is amended by adding at the end the following new 
sentence: ``The United States shall not be held liable for any losses 
or other expenses incurred by any party to a covered transaction as a 
result of actions taken under this section after a covered transaction 
has been consummated if the party did not submit a written notice of 
the transaction to the Chairperson of the Committee under subsection 
(b)(1)(C) or did not wait until the completion of any review or 
investigation under subsection (b), or the end of the 15-day period 
referred to in this subsection, before consummating the transaction.''.

SEC. 6. MITIGATION, TRACKING, AND POST-CONSUMMATION MONITORING AND 
              ENFORCEMENT.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended by inserting after subsection (k) (as amended by 
section 3 of this Act) the following new subsection:
    ``(l) Mitigation, Tracking, and Postconsummation Monitoring and 
Enforcement.--
            ``(1) Mitigation.--
                    ``(A) In general.--The Committee may negotiate, 
                enter into or impose, and enforce any agreement or 
                condition with any party to a covered transaction in 
                order to mitigate any threat to the national security 
                of the United States.
                    ``(B) Risk-based analysis required.--Any agreement 
                entered into or condition imposed under subparagraph 
                (A) shall be based on a risk-based analysis of the 
                threat to national security of the covered transaction.
            ``(2) Tracking authority for withdrawn notices.--
                    ``(A) In general.--If any written notice of a 
                covered transaction that was submitted to the Committee 
                under this section is withdrawn before any review or 
                investigation by the Committee under subsection (b) is 
                completed, the Committee shall establish, as 
                appropriate--
                            ``(i) interim protections to address 
                        specific concerns with such transaction that 
                        have been raised in connection with any such 
                        review or investigation pending any 
                        resubmission of any written notice under this 
                        section with respect to such transaction and 
                        further action by the President under this 
                        section;
                            ``(ii) specific timeframes for resubmitting 
                        any such written notice; and
                            ``(iii) a process for tracking any actions 
                        that may be taken by any party to the 
                        transaction, in connection with the 
                        transaction, before the notice referred to in 
                        clause (ii) is resubmitted.
                    ``(B) Designation of agency.--The Committee may 
                designate an appropriate Federal department or agency, 
                other than any entity of the intelligence community (as 
                defined in the National Security Act of 1947), as the 
                lead agency to carry out the requirements of 
                subparagraph (A) with respect to any covered 
                transaction that is subject to such subparagraph.
            ``(3) Negotiation, modification, monitoring, and 
        enforcement.--
                    ``(A) Designation of agency.--The Committee shall 
                designate a Federal department or agency as the lead 
                agency to negotiate, modify, monitor, and enforce any 
                agreement entered into or condition imposed under 
                paragraph (1) with respect to a covered transaction 
                based on the expertise with and knowledge of the issues 
                related to such transaction on the part of the 
                designated department or agency.
                    ``(B) Reporting by designated agency.--
                            ``(i) Implementation reports.--The Federal 
                        department or agency designated by the 
                        Committee as a lead agency under subparagraph 
                        (A) in connection with any agreement entered 
                        into or condition imposed under paragraph (1) 
                        with respect to a covered transaction shall--
                                    ``(I) provide periodic reports to 
                                the Chairperson and Vice Chairperson of 
                                the Committee on the implementation of 
                                such agreement or condition; and
                                    ``(II) require, as appropriate, any 
                                party to the covered transaction to 
                                report to the head of such department 
                                or agency (or the designee of such 
                                department or agency head) on the 
                                implementation or any material change 
                                in circumstances.
                            ``(ii) Modification reports.--The Federal 
                        department or agency designated by the 
                        Committee as a lead agency under subparagraph 
                        (A) in connection with any agreement entered 
                        into or condition imposed with respect to a 
                        covered transaction shall--
                                    ``(I) provide periodic reports to 
                                the Chairperson and Vice Chairperson of 
                                the Committee on any modification to 
                                any such agreement or condition imposed 
                                with respect to the transaction; and
                                    ``(II) ensure that any significant 
                                modification to any such agreement or 
                                condition is reported to the Director 
                                of National Intelligence and to any 
                                other Federal department or agency that 
                                may have a material interest in such 
                                modification.''.

SEC. 7. INCREASED OVERSIGHT BY THE CONGRESS.

    (a) Report on Actions.--Section 721(g) of the Defense Production 
Act of 1950 (50 U.S.C. App. 2170) is amended to read as follows:
    ``(g) Reports to the Congress.--
            ``(1) Reports on completed committee investigations.--
                    ``(A) In general.--Not later than 5 days after the 
                completion of a Committee investigation of a covered 
                transaction under subsection (b)(2), or, if the 
                President indicates an intent to take any action 
                authorized under subsection (d) with respect to the 
                transaction, after the end of 15-day period referred to 
                in subsection (d), the Chairperson or Vice Chairperson 
                of the Committee shall submit a written report on the 
                findings or actions of the Committee with respect to 
                such investigation, the determination of whether or not 
                to take action under subsection (d), an explanation of 
                the findings under subsection (e), and the factors 
                considered under subsection (f), with respect to such 
                transaction, to--
                            ``(i) the Majority Leader and the Minority 
                        Leader of the Senate;
                            ``(ii) the Speaker and the Minority Leader 
                        of the House of Representatives; and
                            ``(iii) the chairman and ranking member of 
                        each committee of the House of Representatives 
                        and the Senate with jurisdiction over any 
                        aspect of the covered transaction and its 
                        possible effects on national security.
                    ``(B) Notice and briefing requirement.--If a 
                written request for a briefing on a covered transaction 
                is submitted to the Committee by any Senator or Member 
                of Congress who receives a report on the transaction 
                under subparagraph (A), the Chairperson or Vice 
                Chairperson (or such other person as the Chairperson or 
                Vice Chairperson may designate) shall provide 1 
                classified briefing to each House of the Congress from 
                which any such briefing request originates in a secure 
                facility of appropriate size and location that shall be 
                open only to the Majority Leader and the Minority 
                Leader of the Senate, the Speaker and the Minority 
                Leader of the House of Representatives, (as the case 
                may be) the chairman and ranking member of each 
                committee of the House of Representatives or the Senate 
                (as the case may be) with jurisdiction over any aspect 
                of the covered transaction and its possible effects on 
                national security, and appropriate staff members who 
                have security clearance.
            ``(2) Application of other provision.--
                    ``(A) In general.--The disclosure of information 
                under this subsection shall be consistent with the 
                requirements of subsection (c). Members of Congress and 
                staff of either House or any committee of the Congress 
                shall be subject to the same limitations on disclosure 
                of information as are applicable under such subsection.
                    ``(B) Proprietary information.--Proprietary 
                information which can be associated with a particular 
                party to a covered transaction shall be furnished in 
                accordance with subparagraph (A) only to a committee of 
                the Congress and only when the committee provides 
                assurances of confidentiality, unless such party 
                otherwise consents in writing to such disclosure.''.
    (b) Semi-Annual Report.--Section 721 of the Defense Production Act 
of 1950 (50 U.S.C. App. 2170) is amended by inserting after subsection 
(l) (as added by section 6 of this Act) the following new subsection:
    ``(m) Semi-Annual Report to the Congress.--
            ``(1) In general.--The Chairperson of the Committee shall 
        transmit a report to the Congress before January 31 and July 31 
        of each year on all the reviews and investigations of covered 
        transactions conducted under subsection (b) during the 6-month 
        period covered by the report.
            ``(2) Contents of report relating to covered 
        transactions.--The report under paragraph (1) shall contain the 
        following information with respect to each covered transaction:
                    ``(A) A list of all notices filed and all reviews 
                or investigations conducted during the period with 
                basic information on each party to the transaction, the 
                nature of the business activities or products of all 
                pertinent persons, along with information about the 
                status of the review or investigation, information on 
                any withdrawal from the process, any rollcall votes by 
                the Committee under this section, any extension of time 
                for any investigation, and any presidential decision or 
                action under this section.
                    ``(B) Specific, cumulative, and, as appropriate, 
                trend information on the numbers of filings, 
                investigations, withdrawals, and presidential decisions 
                or actions under this section.
                    ``(C) Cumulative and, as appropriate, trend 
                information on the business sectors involved in the 
                filings which have been made, and the countries from 
                which the investments have originated.
                    ``(D) Information on whether companies that 
                withdrew notices to the Committee in accordance with 
                subsection (b)(1)(C)(ii) have later re-filed such 
                notices, or, alternatively, abandoned the transaction.
                    ``(E) The types of security arrangements and 
                conditions the Committee has used to mitigate national 
                security concerns about a transaction.
                    ``(F) A detailed discussion of all perceived 
                adverse effects of covered transactions on the national 
                security or critical infrastructure of the United 
                States that the Committee will take into account in its 
                deliberations during the period before delivery of the 
                next such report, to the extent possible.
            ``(3) Contents of report relating to critical 
        technologies.--
                    ``(A) In general.--In order to assist the Congress 
                in its oversight responsibilities with respect to this 
                section, the President and such agencies as the 
                President shall designate shall include in the semi-
                annual report submitted under paragraph (1) the 
                following:
                            ``(i) An evaluation of whether there is 
                        credible evidence of a coordinated strategy by 
                        1 or more countries or companies to acquire 
                        United States companies involved in research, 
                        development, or production of critical 
                        technologies for which the United States is a 
                        leading producer.
                            ``(ii) An evaluation of whether there are 
                        industrial espionage activities directed or 
                        directly assisted by foreign governments 
                        against private United States companies aimed 
                        at obtaining commercial secrets related to 
                        critical technologies.
                    ``(B) Critical technologies defined.--For purposes 
                of this paragraph, the term `critical technologies' 
                means technologies identified under title VI of the 
                National Science and Technology Policy, Organization, 
                and Priorities Act of 1976 or other critical 
                technology, critical components, or critical technology 
                items essential to national defense or national 
                security identified pursuant to this section.
                    ``(C) Release of unclassified study.--That portion 
                of the semi-annual report under paragraph (1) that is 
                required by this paragraph may be classified. An 
                unclassified version of that portion of the report 
                shall be made available to the public.''.
    (c) Investigation by Inspector General.--
            (1) In general.--The Inspector General of the Department of 
        the Treasury shall conduct an independent investigation to 
        determine all of the facts and circumstances concerning each 
        failure of the Department of the Treasury to make any report to 
        the Congress that was required under section 721(k) of the 
        Defense Production Act of 1950 (as in effect before the date of 
        the enactment of this Act).
            (2) Report to the congress.--Before the end of the 270-day 
        period beginning on the date of the enactment of this Act, the 
        Inspector General of the Department of the Treasury shall 
        submit a report to the Congress on the investigation under 
        paragraph (1) containing the findings and conclusions of the 
        Inspector General.
    (d) Study and Report.--
            (1) Study required.--Before the end of the 120-day period 
        beginning on the date of the enactment of this Act, the 
        Secretary of the Treasury, in consultation with the Secretary 
        of State and the Secretary of Commerce, shall conduct a study 
        on investments in the United States, especially investments in 
        critical infrastructure and industries affecting national 
        security, by--
                    (A) foreign governments, entities controlled by or 
                acting on behalf of a foreign government, or persons of 
                foreign countries which comply with any boycott of 
                Israel; or
                    (B) foreign governments, entities controlled by or 
                acting on behalf of a foreign government, or persons of 
                foreign countries which do not ban organizations 
                designated by the Secretary of State as foreign 
                terrorist organizations.
            (2) Report.--Before the end of the 30-day period beginning 
        upon completion of the study under paragraph (1) or in the next 
        semi-annual report under section 721(m) of the Defense 
        Production Act of 1950 (as added by subsection (b)), the 
        Secretary of the Treasury shall submit a report to the 
        Congress, for transmittal to all appropriate committees of the 
        Senate and the House of Representatives, containing the 
        findings and conclusions of the Secretary with respect to the 
        study, together with an analysis of the effects of such 
        investment on the national security of the United States and on 
        any efforts to address those effects.

SEC. 8. CERTIFICATION OF NOTICES AND ASSURANCES.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended by inserting after subsection (m) (as added by section 
7(b) of this Act) the following new subsection:
    ``(n) Certification of Notices and Assurances.--Each notice 
required to be submitted, by a party to a covered transaction, to the 
President or the President's designee under this section and 
regulations prescribed under such section, and any information 
submitted by any such party in connection with any action for which a 
report is required pursuant to paragraph (3)(B)(ii) of subsection (l) 
with respect to the implementation of any mitigation agreement or 
condition described in paragraph (1)(A) of such subsection, or any 
material change in circumstances, shall be accompanied by a written 
statement by the chief executive officer or the designee of the person 
required to submit such notice or information certifying that, to the 
best of the person's knowledge and belief--
            ``(1) the notice or information submitted fully complies 
        with the requirements of this section or such regulation, 
        agreement, or condition; and
            ``(2) the notice or information is accurate and complete in 
        all material respects.''.

SEC. 9. REGULATIONS.

    Section 721(h) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2170(h)) is amended to read as follows:
    ``(h) Regulations.--The President shall direct the issuance of 
regulations to carry out this section. Such regulations shall, to the 
extent possible, minimize paperwork burdens and shall to the extent 
possible coordinate reporting requirements under this section with 
reporting requirements under any other provision of Federal law.''.

SEC. 10. EFFECT ON OTHER LAW.

    Section 721(i) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2170(i)) is amended to read as follows:
    ``(i) Effect on Other Law.--No provision of this section shall be 
construed as altering or affecting any other authority, process, 
regulation, investigation, enforcement measure, or review provided by 
or established under any other provision of Federal law, including the 
International Emergency Economic Powers Act, or any other authority of 
the President or the Congress under the Constitution of the United 
States.''.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reform of National Security Reviews 
of Foreign Direct Investments Act''.

SEC. 2. UNITED STATES SECURITY IMPROVEMENT AMENDMENTS; CLARIFICATION OF 
              REVIEW AND INVESTIGATION PROCESS.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended by striking subsections (a) and (b) and inserting the 
following new subsections:
    ``(a) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Committee.--The term `Committee' means the Committee 
        on Foreign Investment in the United States.
            ``(2) Control.--The term `control' has the meaning given to 
        such term in regulations which the Committee shall prescribe.
            ``(3) Covered transaction.--The term `covered transaction' 
        means any merger, acquisition, or takeover by or with any 
        foreign person which could result in foreign control of any 
        person engaged in interstate commerce in the United States.
            ``(4) Foreign government-controlled transaction.--The term 
        `foreign government-controlled transaction' means any covered 
        transaction that could result in the control of any person 
        engaged in interstate commerce in the United States by a 
        foreign government or an entity controlled by or acting on 
        behalf of a foreign government.
    ``(b) National Security Reviews and Investigations.--
            ``(1) National security reviews.--
                    ``(A) In general.--Upon receiving written 
                notification under subparagraph (C) of any covered 
                transaction, or on a motion made under subparagraph (D) 
                with respect to any covered transaction, the President, 
                acting through the Committee, shall review the covered 
                transaction to determine whether the transaction 
                threatens to impair the national security of the United 
                States and whether such threat can be mitigated.
                    ``(B) Control by foreign government.--If the 
                Committee determines that the covered transaction is a 
                foreign government-controlled transaction, the 
                Committee shall conduct an investigation of the 
                transaction under paragraph (2).
                    ``(C) Written notice.--
                            ``(i) In general.--Any party to any covered 
                        transaction may initiate a review of the 
                        transaction under this paragraph by submitting 
                        a written notice of the transaction to the 
                        Chairperson of the Committee.
                            ``(ii) Withdrawal of notice.--No covered 
                        transaction for which a notice was submitted 
                        under clause (i) may be withdrawn from review 
                        unless--
                                    ``(I) a written request for such 
                                withdrawal is submitted by any party to 
                                the transaction; and
                                    ``(II) the request is approved in 
                                writing by the Chairperson of the 
                                Committee.
                    ``(D) Unilateral initiation of review.--The 
                President, the Committee, or any member of the 
                Committee may move to initiate a review under 
                subparagraph (A) of--
                            ``(i) any covered transaction;
                            ``(ii) any covered transaction that has 
                        previously been reviewed or investigated under 
                        this section, if any party to the transaction 
                        submitted false or misleading material 
                        information to the Committee in connection with 
                        the review or investigation or omitted material 
                        information, including material documents, from 
                        information submitted to the Committee; or
                            ``(iii) any covered transaction that has 
                        previously been reviewed or investigated under 
                        this section, if any party to the transaction 
                        or the entity resulting from consummation of 
                        the transaction intentionally materially 
                        breaches a mitigation agreement or condition 
                        described in subsection (l)(1)(A), and--
                                    ``(I) such breach is certified by 
                                the lead department or agency 
                                monitoring and enforcing such agreement 
                                or condition as an intentional material 
                                breach; and
                                    ``(II) such department or agency 
                                certifies that there is no other remedy 
                                or enforcement tool available to 
                                address such breach.
                    ``(E) Timing.--Any review under this paragraph 
                shall be completed before the end of the 30-day period 
                beginning on the date of the receipt of written notice 
                under subparagraph (C) by the Chairperson of the 
                Committee, or the date of the initiation of the review 
                in accordance with a motion under subparagraph (D).
            ``(2) National security investigations.--
                    ``(A) In general.--In each case in which--
                            ``(i) a review of a covered transaction 
                        under paragraph (1) results in a determination 
                        that--
                                    ``(I) the transaction threatens to 
                                impair the national security of the 
                                United States and that threat has not 
                                been mitigated during or prior to the 
                                review of a covered transaction under 
                                paragraph (1); or
                                    ``(II) the transaction is a foreign 
                                government-controlled transaction; or
                            ``(ii) the Director of National 
                        Intelligence identifies particularly complex 
                        national security or intelligence issues that 
                        could threaten to impair the national security 
                        of the United States and were not resolved 
                        during the initial review period under 
                        paragraph (1),
                the President, acting through the Committee, shall 
                immediately conduct an investigation of the effects of 
                the transaction on the national security of the United 
                States and take any necessary actions in connection 
                with the transaction to protect the national security 
                of the United States.
                    ``(B) Timing.--
                            ``(i) In general.--Any investigation under 
                        subparagraph (A) shall be completed before the 
                        end of the 45-day period beginning on the date 
                        of the investigation commenced.
                            ``(ii) Extensions of time.--The period 
                        established under subparagraph (B) for any 
                        investigation of a covered transaction may be 
                        extended with respect to any particular 
                        investigation by the President or by a rollcall 
                        vote of at least 2/3 of the members of the 
                        Committee involved in the investigation by the 
                        amount of time specified by the President or 
                        the Committee at the time of the extension, not 
                        to exceed 45 days, as necessary to collect and 
                        fully evaluate information relating to--
                                    ``(I) the covered transaction or 
                                parties to the transaction; and
                                    ``(II) any effect of the 
                                transaction that could threaten to 
                                impair the national security of the 
                                United States.
            ``(3) Approval of chairperson required.--
                    ``(A) In general.--A review or investigation under 
                this subsection of a covered transaction shall not be 
                treated as final or complete until the findings and the 
                report resulting from such review or investigation are 
                approved and signed by the Chairperson of the Committee 
                after approval by a majority vote of the Committee.
                    ``(B) Additional actions required in certain 
                cases.--In the case of an investigation under paragraph 
                (2) of any foreign government-controlled transaction, 
                an investigation shall not be treated as final or 
                complete until the findings and report resulting from 
                such investigation--
                            ``(i) are approved by a majority of the 
                        members of the Committee in a roll call vote; 
                        and
                            ``(ii) in the case of any roll call vote 
                        pursuant to clause (i) in which there is at 
                        least 1 vote by a Committee member against 
                        approving a foreign government-controlled 
                        transaction, are signed by the President (in 
                        addition to the Chairperson and the Vice 
                        Chairperson of the Committee under subparagraph 
                        (A)).
            ``(4) Analysis by director of national intelligence.--
                    ``(A) In general.--The Director of National 
                Intelligence shall expeditiously carry out a thorough 
                analysis of any threat to the national security of the 
                United States of any covered transaction, including an 
                affirmative inquiry for information to the Director of 
                the Office of Foreign Assets Control within the 
                Department of the Treasury and the Director of the 
                Financial Crimes Enforcement Network.
                    ``(B) 30-day minimum.--The analysis required under 
                subparagraph (A) shall take no less than 30 days and be 
                completed no less than 7 days before the end of the 
                initial review period under paragraph (1), except in 
                any instance described in paragraph (2)(A)(ii).
                    ``(C) Independent role of director.--The Director 
                of National Intelligence shall not be a member of the 
                Committee and shall serve no policy role with the 
                Committee other than to provide analysis under 
                subparagraph (A) in connection with a covered 
                transaction.
            ``(5) Resubmittals of notice and requests for additional 
        review or investigation.--
                    ``(A) In general.--No provision of this subsection 
                shall be construed as prohibiting any party to a 
                covered transaction from--
                            ``(i) submitting additional information 
                        concerning the transaction, including any 
                        proposed restructuring of the transaction or 
                        any modifications to any agreements in 
                        connection with the transaction, while any 
                        review or investigation of the transaction is 
                        on-going; or
                            ``(ii) requesting a review or investigation 
                        of the transaction after any previous review or 
                        investigation of the same or a similar 
                        transaction has become final if information 
                        material to the prior review or investigation 
                        and not previously submitted to the Committee 
                        becomes known or if any material change in 
                        circumstances to the covered transaction has 
                        occurred since the review or investigation.
                    ``(B) Approval of request.--In the case of a 
                request referred to in subparagraph (A)(ii), the 
                Committee shall determine by consensus whether to grant 
                a request.
            ``(6) Regulations.--Regulations prescribed under this 
        section shall include standard procedures for--
                    ``(A) submitting any notice of a proposed or 
                pending covered transaction to the Committee;
                    ``(B) submitting a request to withdraw a proposed 
                or pending covered transaction from review; and
                    ``(C) resubmitting a notice of proposed or pending 
                covered transaction that was previously withdrawn from 
                review.''.

SEC. 3. STATUTORY ESTABLISHMENT OF THE COMMITTEE ON FOREIGN INVESTMENT 
              IN THE UNITED STATES.

    (a) In General.--Section 721 of the Defense Production Act of 1950 
(50 U.S.C. App. 2170) is amended by striking subsection (k) and 
inserting the following new subsection:
    ``(k) Committee on Foreign Investment in the United States.--
            ``(1) Establishment.--The Committee on Foreign Investment 
        in the United States established pursuant to Executive Order 
        No. 11858 shall be a multi-agency committee to carry out this 
        section and such other assignments as the President may 
        designate.
            ``(2) Membership.--The Committee shall be comprised of the 
        following members or the designee of any such member:
                    ``(A) The Secretary of the Treasury.
                    ``(B) The Secretary of Homeland Security.
                    ``(C) The Secretary of Commerce.
                    ``(D) The Secretary of Defense.
                    ``(E) The Secretary of State.
                    ``(F) The Attorney General.
                    ``(G) The Secretary of Energy.
                    ``(H) The Chairman of the Council of Economic 
                Advisors.
                    ``(I) The United States Trade Representative.
                    ``(J) The Director of the Office of Management and 
                Budget.
                    ``(K) The Director of the National Economic 
                Council.
                    ``(L) The Director of the Office of Science and 
                Technology Policy.
                    ``(M) The President's Assistant for National 
                Security Affairs.
            ``(3) Chairperson.--The Secretary of Commerce shall be the 
        Chairperson of the Committee.
            ``(4) Other members.--Subject to subsection (b)(4)(B), the 
        Chairperson of the Committee shall involve the heads of such 
        other Federal departments, agencies, and independent 
        establishments in any review or investigation under subsection 
        (b) as the Chairperson determines to be appropriate on the 
        basis of the facts and circumstances of the transaction under 
        investigation (or the designee of any such department or agency 
        head).
            ``(5) Meetings.--The Committee shall meet upon the 
        direction of the President or upon the call of the Chairperson 
        of the Committee without regard to section 552b of title 5, 
        United States Code (if otherwise applicable).
            ``(6) Collection of evidence.--Subject to subsection (c), 
        the Committee may, for the purpose of carrying out this 
        section--
                    ``(A) sit and act at such times and places, take 
                such testimony, receive such evidence, administer such 
                oaths; and
                    ``(B) require the attendance and testimony of such 
                witnesses and the production of such books, records, 
                correspondence, memoranda, papers, and documents as the 
                Chairperson of the Committee may determine advisable.
            ``(7) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary of the Treasury 
        for each of fiscal years 2007, 2008, 2009, and 2010, expressly 
        and solely for the operations of the Committee that are 
        conducted by the Secretary, the sum of $10,000,000.''.
    (b) Technical and Conforming Amendment.--The first sentence of 
section 721(c) of the Defense Production Act of 1950 (50 U.S.C. App. 
2170(c)) is amended--
            (1) by striking ``material filed with'' and inserting 
        ``material, including proprietary business information, filed 
        with, or testimony presented to,''; and
            (2) by striking ``or documentary material'' the 2nd place 
        such term appears and inserting ``, documentary material, or 
        testimony''.

SEC. 4. ADDITIONAL FACTORS REQUIRED TO BE CONSIDERED.

    Section 721(f) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2170(f)) is amended--
            (1) in the matter preceding paragraph (1)--
                    (A) by striking ``may'' and inserting ``shall''; 
                and
                    (B) by striking ``among other factors'';
            (2) by striking ``and'' at the end of paragraph (4);
            (3) by striking the period at the end of paragraph (5) and 
        inserting a semicolon; and
            (4) by adding at the end the following new paragraphs:
            ``(6) whether the covered transaction has a security-
        related impact on critical infrastructure in the United States;
            ``(7) whether the covered transaction is a foreign 
        government-controlled transaction; and
            ``(8) such other factors as the President or the 
        President's designee may determine to be appropriate, generally 
        or in connection with a specific review or investigation.''.

SEC. 5. NONWAIVER OF SOVEREIGN IMMUNITY.

    Section 721(d) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2170(d)) is amended by adding at the end the following new 
sentence: ``The United States shall not be held liable for any losses 
or other expenses incurred by any party to a covered transaction as a 
result of actions taken under this section after a covered transaction 
has been consummated if the party did not submit a written notice of 
the transaction to the Chairperson of the Committee under subsection 
(b)(1)(C) or did not wait until the completion of any review or 
investigation under subsection (b), or the end of the 15-day period 
referred to in this subsection, before consummating the transaction.''.

SEC. 6. MITIGATION, TRACKING, AND POST-CONSUMMATION MONITORING AND 
              ENFORCEMENT.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended by inserting after subsection (k) (as amended by 
section 3 of this Act) the following new subsection:
    ``(l) Mitigation, Tracking, and Postconsummation Monitoring and 
Enforcement.--
            ``(1) Mitigation.--
                    ``(A) In general.--The Committee may negotiate, 
                enter into or impose, and enforce any agreement or 
                condition with any party to a covered transaction in 
                order to mitigate any threat to the national security 
                of the United States.
                    ``(B) Risk-based analysis required.--Any agreement 
                entered into or condition imposed under subparagraph 
                (A) shall be based on a risk-based analysis of the 
                threat to national security of the covered transaction.
            ``(2) Tracking authority for withdrawn notices.--
                    ``(A) In general.--If any written notice of a 
                covered transaction that was submitted to the Committee 
                under this section is withdrawn before any review or 
                investigation by the Committee under subsection (b) is 
                completed, the Committee shall establish, as 
                appropriate--
                            ``(i) interim protections to address 
                        specific concerns with such transaction that 
                        have been raised in connection with any such 
                        review or investigation pending any 
                        resubmission of any written notice under this 
                        section with respect to such transaction and 
                        further action by the President under this 
                        section;
                            ``(ii) specific timeframes for resubmitting 
                        any such written notice; and
                            ``(iii) a process for tracking any actions 
                        that may be taken by any party to the 
                        transaction, in connection with the 
                        transaction, before the notice referred to in 
                        clause (ii) is resubmitted.
                    ``(B) Designation of agency.--The Committee may 
                designate an appropriate Federal department or agency, 
                other than any entity of the intelligence community (as 
                defined in the National Security Act of 1947), as the 
                lead agency to carry out the requirements of 
                subparagraph (A) with respect to any covered 
                transaction that is subject to such subparagraph.
            ``(3) Negotiation, modification, monitoring, and 
        enforcement.--
                    ``(A) Designation of agency.--The Committee shall 
                designate a Federal department or agency as the lead 
                agency to negotiate, modify, monitor, and enforce any 
                agreement entered into or condition imposed under 
                paragraph (1) with respect to a covered transaction 
                based on the expertise with and knowledge of the issues 
                related to such transaction on the part of the 
                designated department or agency.
                    ``(B) Reporting by designated agency.--
                            ``(i) Implementation reports.--The Federal 
                        department or agency designated by the 
                        Committee as a lead agency under subparagraph 
                        (A) in connection with any agreement entered 
                        into or condition imposed under paragraph (1) 
                        with respect to a covered transaction shall--
                                    ``(I) provide periodic reports to 
                                the Chairperson of the Committee on the 
                                implementation of such agreement or 
                                condition; and
                                    ``(II) require, as appropriate, any 
                                party to the covered transaction to 
                                report to the head of such department 
                                or agency (or the designee of such 
                                department or agency head) on the 
                                implementation or any material change 
                                in circumstances.
                            ``(ii) Modification reports.--The Federal 
                        department or agency designated by the 
                        Committee as a lead agency under subparagraph 
                        (A) in connection with any agreement entered 
                        into or condition imposed with respect to a 
                        covered transaction shall--
                                    ``(I) provide periodic reports to 
                                the Chairperson of the Committee on any 
                                modification to any such agreement or 
                                condition imposed with respect to the 
                                transaction; and
                                    ``(II) ensure that any significant 
                                modification to any such agreement or 
                                condition is reported to the Director 
                                of National Intelligence and to any 
                                other Federal department or agency that 
                                may have a material interest in such 
                                modification.''.

SEC. 7. INCREASED OVERSIGHT BY THE CONGRESS.

    (a) Report on Actions.--Section 721(g) of the Defense Production 
Act of 1950 (50 U.S.C. App. 2170) is amended to read as follows:
    ``(g) Reports to the Congress.--
            ``(1) Reports on completed committee investigations.--
                    ``(A) In general.--Not later than 5 days after the 
                completion of a Committee investigation of a covered 
                transaction under subsection (b)(2), or, if the 
                President indicates an intent to take any action 
                authorized under subsection (d) with respect to the 
                transaction, after the end of 15-day period referred to 
                in subsection (d), the Chairperson of the Committee 
                shall submit a written report on the findings or 
                actions of the Committee with respect to such 
                investigation, the determination of whether or not to 
                take action under subsection (d), an explanation of the 
                findings under subsection (e), and the factors 
                considered under subsection (f), with respect to such 
                transaction, to--
                            ``(i) the Majority Leader and the Minority 
                        Leader of the Senate;
                            ``(ii) the Speaker and the Minority Leader 
                        of the House of Representatives; and
                            ``(iii) the chairman and ranking member of 
                        each committee of the House of Representatives 
                        and the Senate with jurisdiction over any 
                        aspect of the covered transaction and its 
                        possible effects on national security, 
                        including the Committee on International 
                        Relations, the Committee on Financial Services, 
                        and the Committee on Energy and Commerce of the 
                        House of Representatives.
                    ``(B) Notice and briefing requirement.--If a 
                written request for a briefing on a covered transaction 
                is submitted to the Committee by any Senator or Member 
                of Congress who receives a report on the transaction 
                under subparagraph (A), the Chairperson (or such other 
                person as the Chairperson may designate) shall provide 
                1 classified briefing to each House of the Congress 
                from which any such briefing request originates in a 
                secure facility of appropriate size and location that 
                shall be open only to the Majority Leader and the 
                Minority Leader of the Senate, the Speaker and the 
                Minority Leader of the House of Representatives, (as 
                the case may be) the chairman and ranking member of 
                each committee of the House of Representatives or the 
                Senate (as the case may be) with jurisdiction over any 
                aspect of the covered transaction and its possible 
                effects on national security, including the Committee 
                on International Relations, the Committee on Financial 
                Services, and the Committee on Energy and Commerce of 
                the House of Representatives, and appropriate staff 
                members who have security clearance.
            ``(2) Application of other provision.--
                    ``(A) In general.--The disclosure of information 
                under this subsection shall be consistent with the 
                requirements of subsection (c). Members of Congress and 
                staff of either House or any committee of the Congress 
                shall be subject to the same limitations on disclosure 
                of information as are applicable under such subsection.
                    ``(B) Proprietary information.--Proprietary 
                information which can be associated with a particular 
                party to a covered transaction shall be furnished in 
                accordance with subparagraph (A) only to a committee of 
                the Congress and only when the committee provides 
                assurances of confidentiality, unless such party 
                otherwise consents in writing to such disclosure.''.
    (b) Semi-Annual Report.--Section 721 of the Defense Production Act 
of 1950 (50 U.S.C. App. 2170) is amended by inserting after subsection 
(l) (as added by section 6 of this Act) the following new subsection:
    ``(m) Semi-Annual Report to the Congress.--
            ``(1) In general.--The Chairperson of the Committee shall 
        transmit a report to the chairman and ranking member of each 
        committee of the House of Representatives and the Senate with 
        jurisdiction over any aspect of the report, including the 
        Committee on International Relations, the Committee on 
        Financial Services, and the Committee on Energy and Commerce of 
        the House of Representatives, before January 31 and July 31 of 
        each year on all the reviews and investigations of covered 
        transactions conducted under subsection (b) during the 6-month 
        period covered by the report.
            ``(2) Contents of report relating to covered 
        transactions.--The report under paragraph (1) shall contain the 
        following information with respect to each covered transaction:
                    ``(A) A list of all notices filed and all reviews 
                or investigations conducted during the period with 
                basic information on each party to the transaction, the 
                nature of the business activities or products of all 
                pertinent persons, along with information about the 
                status of the review or investigation, information on 
                any withdrawal from the process, any rollcall votes by 
                the Committee under this section, any extension of time 
                for any investigation, and any presidential decision or 
                action under this section.
                    ``(B) Specific, cumulative, and, as appropriate, 
                trend information on the numbers of filings, 
                investigations, withdrawals, and presidential decisions 
                or actions under this section.
                    ``(C) Cumulative and, as appropriate, trend 
                information on the business sectors involved in the 
                filings which have been made, and the countries from 
                which the investments have originated.
                    ``(D) Information on whether companies that 
                withdrew notices to the Committee in accordance with 
                subsection (b)(1)(C)(ii) have later re-filed such 
                notices, or, alternatively, abandoned the transaction.
                    ``(E) The types of security arrangements and 
                conditions the Committee has used to mitigate national 
                security concerns about a transaction.
                    ``(F) A detailed discussion of all perceived 
                adverse effects of covered transactions on the national 
                security or critical infrastructure of the United 
                States that the Committee will take into account in its 
                deliberations during the period before delivery of the 
                next such report, to the extent possible.
            ``(3) Contents of report relating to critical 
        technologies.--
                    ``(A) In general.--In order to assist the Congress 
                in its oversight responsibilities with respect to this 
                section, the President and such agencies as the 
                President shall designate shall include in the semi-
                annual report submitted under paragraph (1) the 
                following:
                            ``(i) An evaluation of whether there is 
                        credible evidence of a coordinated strategy by 
                        1 or more countries or companies to acquire 
                        United States companies involved in research, 
                        development, or production of critical 
                        technologies for which the United States is a 
                        leading producer.
                            ``(ii) An evaluation of whether there are 
                        industrial espionage activities directed or 
                        directly assisted by foreign governments 
                        against private United States companies aimed 
                        at obtaining commercial secrets related to 
                        critical technologies.
                    ``(B) Critical technologies defined.--For purposes 
                of this paragraph, the term `critical technologies' 
                means technologies identified under title VI of the 
                National Science and Technology Policy, Organization, 
                and Priorities Act of 1976 or other critical 
                technology, critical components, or critical technology 
                items essential to national defense or national 
                security identified pursuant to this section.
                    ``(C) Release of unclassified study.--That portion 
                of the semi-annual report under paragraph (1) that is 
                required by this paragraph may be classified. An 
                unclassified version of that portion of the report 
                shall be made available to the public.''.
    (c) Investigation by Inspector General.--
            (1) In general.--The Inspector General of the Department of 
        the Treasury shall conduct an independent investigation to 
        determine all of the facts and circumstances concerning each 
        failure of the Department of the Treasury to make any report to 
        the Congress that was required under section 721(k) of the 
        Defense Production Act of 1950 (as in effect before the date of 
        the enactment of this Act).
            (2) Report to the congress.--Before the end of the 270-day 
        period beginning on the date of the enactment of this Act, the 
        Inspector General of the Department of the Treasury shall 
        submit a report to the chairman and ranking member of each 
        committee of the House of Representatives and the Senate with 
        jurisdiction over any aspect of the report, including the 
        Committee on International Relations, the Committee on 
        Financial Services, and the Committee on Energy and Commerce of 
        the House of Representatives, on the investigation under 
        paragraph (1) containing the findings and conclusions of the 
        Inspector General.

SEC. 8. CERTIFICATION OF NOTICES AND ASSURANCES.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended by inserting after subsection (m) (as added by section 
7(b) of this Act) the following new subsection:
    ``(n) Certification of Notices and Assurances.--Each notice 
required to be submitted to the President or the President's designee 
under this section and regulations prescribed under such section, and 
each report required pursuant to paragraph (3)(B)(ii) of subsection (l) 
with respect to the implementation of any mitigation agreement or 
condition described in paragraph (1)(A) of such subsection or any 
material change in circumstances shall be accompanied by a written 
statement by the chief executive officer or the designee of the person 
required to submit such notice or report certifying that, to the best 
of the person's knowledge and belief--
            ``(1) the notice or report submitted fully complies with 
        the requirements of this section or such regulation, agreement, 
        or condition; and
            ``(2) the information so contained is accurate and complete 
        in all material respects.''.

SEC. 9. REGULATIONS.

    Section 721(h) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2170(h)) is amended to read as follows:
    ``(h) Regulations.--The President shall direct the issuance of 
regulations to carry out this section. Such regulations shall, to the 
extent possible, minimize paperwork burdens and shall to the extent 
possible coordinate reporting requirements under this section with 
reporting requirements under any other provision of Federal law.''.

SEC. 10. EFFECT ON OTHER LAW.

    Section 721(i) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2170(i)) is amended to read as follows:
    ``(i) Effect on Other Law.--No provision of this section shall be 
construed as altering or affecting any other authority, process, 
regulation, investigation, enforcement measure, or review provided by 
or established under any other provision of Federal law, including the 
International Emergency Economic Powers Act, or any other authority of 
the President or the Congress under the Constitution of the United 
States.''.
                                                 Union Calendar No. 329

109th CONGRESS

  2d Session

                               H. R. 5337

                  [Report No. 109-523, Parts I and II]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                             July 17, 2006

  Reported from the Committee on Energy and Commerce with an amendment

                             July 17, 2006

   Committee on International Relations discharged; committed to the 
 Committee of the Whole House on the State of the Union and ordered to 
                               be printed`