IB 

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. 


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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. VELA ́ZQUEZ, 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. 

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


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1 SEC. 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘National Security For3 eign Investment Reform and Strengthened Transparency 

4 Act of 2006’’. 

5 SEC. 2. UNITED STATES SECURITY IMPROVEMENT AMEND6 MENTS; CLARIFICATION OF REVIEW AND IN7 VESTIGATION PROCESS. 

8 Section 721 of the Defense Production Act of 1950 (50 

9 U.S.C. App. 2170) is amended by striking subsections (a) 

10 and (b) and inserting the following new subsections: 

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

12 following definitions shall apply: 

13 ‘‘(1) COMMITTEE.—The term ‘Committee’ means 

14 the Committee on Foreign Investment in the United 

15 States. 

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

17 meaning given to such term in regulations which the 

18 Committee shall prescribe. 

19 ‘‘(3) COVERED TRANSACTION.—The term ‘covered 

20 transaction’ means any merger, acquisition, or take21 over by or with any foreign person which could result 

22 in foreign control of any person engaged in interstate 

23 commerce in the United States. 

24 ‘‘(4) FOREIGN GOVERNMENT-CONTROLLED

25 TRANSACTION.—The term ‘foreign government-con26 trolled transaction’ means any covered transaction 


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1 that could result in the control of any person engaged 

2 in interstate commerce in the United States by a for3 eign government or an entity controlled by or acting 

4 on behalf of a foreign government. 

5 ‘‘(5) CLARIFICATION.—The term ‘national secu6 rity’ shall be construed so as to include those issues 

7 relating to ‘homeland security’, including its applica8 tion to critical infrastructure (as defined in the 

9 Homeland Security Act of 2002). 

10 ‘‘(b) NATIONAL SECURITY REVIEWS AND INVESTIGA11 TIONS.— 

12 ‘‘(1) NATIONAL SECURITY REVIEWS.— 

13 ‘‘(A) INGENERAL.—Upon receiving written 

14 notification under subparagraph (C) of any cov15 ered transaction, or on a motion made under 

16 subparagraph (D) with respect to any covered 

17 transaction, the President, acting through the 

18 Committee, shall review the covered transaction 

19 to determine whether the transaction threatens to 

20 impair the national security of the United States 

21 and whether such threat can be mitigated. 

22 ‘‘(B) CONTROL BY FOREIGN GOVERN23 MENT.—If the Committee determines that the 

24 covered transaction is a foreign government-con25 trolled transaction, the Committee shall conduct 


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1 an investigation of the transaction under para2 graph (2). 

3 ‘‘(C) WRITTENNOTICE.— 

4 ‘‘(i) INGENERAL.—Any party to any 

5 covered transaction may initiate a review of 

6 the transaction under this paragraph by 

7 submitting a written notice of the trans8 action to the Chairperson of the Committee. 

9 ‘‘(ii) WITHDRAWAL OF NOTICE.—No 

10 covered transaction for which a notice was 

11 submitted under clause (i) may be with12 drawn from review unless— 

13 ‘‘(I) a written request for such 

14 withdrawal is submitted by any party 

15 to the transaction; and 

16 ‘‘(II) the request is approved in 

17 writing by the Chairperson, in con18 sultation with the Vice Chairperson, of 

19 the Committee. 

20 ‘‘(D) UNILATERAL INITIATION OF RE21 VIEW.—The President, the Committee, or any 

22 member of the Committee may move to initiate 

23 a review under subparagraph (A) of— 

24 ‘‘(i) any covered transaction; 


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1 ‘‘(ii) any covered transaction that has 

2 previously been reviewed or investigated 

3 under this section, if any party to the 

4 transaction submitted false or misleading 

5 material information to the Committee in 

6 connection with the review or investigation 

7 or omitted material information, including 

8 material documents, from information sub9 mitted to the Committee; or 

10 ‘‘(iii) any covered transaction that has 

11 previously been reviewed or investigated 

12 under this section, if any party to the 

13 transaction or the entity resulting from con14 summation of the transaction intentionally 

15 materially breaches a mitigation agreement 

16 or condition described in subsection 

17 (l)(1)(A), and— 

18 ‘‘(I) such breach is certified by the 

19 lead department or agency monitoring 

20 and enforcing such agreement or condi21 tion as an intentional material breach; 

22 and 

23 ‘‘(II) such department or agency 

24 certifies that there is no other remedy 


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1 or enforcement tool available to address 

2 such breach. 

3 ‘‘(E) TIMING.—Any review under this para4 graph shall be completed before the end of the 30- 

5 day period beginning on the date of the receipt 

6 of written notice under subparagraph (C) by the 

7 Chairperson of the Committee, or the date of the 

8 initiation of the review in accordance with a 

9 motion under subparagraph (D). 

10 ‘‘(2) NATIONAL SECURITY INVESTIGATIONS.— 

11 ‘‘(A) INGENERAL.—In each case in 

12 which— 

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

14 under paragraph (1) results in a deter15 mination that— 

16 ‘‘(I) the transaction threatens to 

17 impair the national security of the 

18 United States and that threat has not 

19 been mitigated during or prior to the 

20 review of a covered transaction under 

21 paragraph (1); or 

22 ‘‘(II) the transaction is a foreign 

23 government-controlled transaction; or 

24 ‘‘(ii) the Director of National Intel25 ligence identifies particularly complex naVerDate Aug 31 2005 23:41 Jul 18, 2006 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6203 E:\BILLS\H5337.RH H5337

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1 tional security or intelligence issues that 

2 could threaten to impair the national secu3 rity of the United States and Committee 

4 members were not able to develop and agree 

5 upon measures to mitigate satisfactorily 

6 those threats during the initial review pe7 riod under paragraph (1), 

8 the President, acting through the Committee, 

9 shall immediately conduct an investigation of 

10 the effects of the transaction on the national se11 curity of the United States and take any nec12 essary actions in connection with the transaction 

13 to protect the national security of the United 

14 States. 

15 ‘‘(B) TIMING.— 

16 ‘‘(i) INGENERAL.—Any investigation 

17 under subparagraph (A) shall be completed 

18 before the end of the 45-day period begin19 ning on the date of the investigation com20 menced. 

21 ‘‘(ii) EXTENSIONS OF TIME.—The pe22 riod established under subparagraph (B) for 

23 any investigation of a covered transaction 

24 may be extended with respect to any par25 ticular investigation by the President or by 


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1 a rollcall vote of at least 2/3 of the members 

2 of the Committee involved in the investiga3 tion by the amount of time specified by the 

4 President or the Committee at the time of 

5 the extension, not to exceed 45 days, as nec6 essary to collect and fully evaluate informa7 tion relating to— 

8 ‘‘(I) the covered transaction or 

9 parties to the transaction; and 

10 ‘‘(II) any effect of the transaction 

11 that could threaten to impair the na12 tional security of the United States. 

13 ‘‘(3) APPROVAL OF CHAIRPERSONAND VICE

14 CHAIRPERSONREQUIRED.— 

15 ‘‘(A) INGENERAL.—A review or investiga16 tion under this subsection of a covered trans17 action shall not be treated as final or complete 

18 until the findings and the report resulting from 

19 such review or investigation are approved and 

20 signed by both the Secretary of the Treasury and 

21 the Secretary of Homeland Security (and such 

22 authority of each such Secretary may not be del23 egated to any person other than the Deputy Sec24 retary of the Treasury or the Deputy Secretary 

25 of Homeland Security, respectively). 


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1 ‘‘(B) ADDITIONAL ACTIONS REQUIRED IN

2 CERTAINCASES.—In the case of an investigation 

3 under paragraph (2) of any foreign government4 controlled transaction, an investigation shall not 

5 be treated as final or complete until the findings 

6 and report resulting from such investigation— 

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

8 members of the Committee in a roll call 

9 vote; and 

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

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

12 least 1 vote by a Committee member against 

13 approving a foreign government-controlled 

14 transaction, are signed by the President (in 

15 addition to the Chairperson and the Vice 

16 Chairperson of the Committee under sub17 paragraph (A)). 

18 ‘‘(4) ANALYSIS BY DIRECTOR OF NATIONAL IN19 TELLIGENCE.— 

20 ‘‘(A) INGENERAL.—The Director of Na21 tional Intelligence shall expeditiously carry out a 

22 thorough analysis of any threat to the national 

23 security of the United States of any covered 

24 transaction, including making requests for infor25 mation to the Director of the Office of Foreign 


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1 Assets Control within the Department of the 

2 Treasury and the Director of the Financial 

3 Crimes Enforcement Network. The Director of 

4 National Intelligence also shall seek and incor5 porate the views of all appropriate intelligence 

6 agencies, including in particular the Defense In7 telligence Agency. 

8 ‘‘(B) 30-DAY MINIMUM.—The Director of 

9 National Intelligence shall be provided no less 

10 than 30 days to complete the analysis required 

11 under subparagraph (A), except in any instance 

12 described in paragraph (2)(A)(ii). 

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

14 The Director of National Intelligence shall not be 

15 a member of the Committee and shall serve no 

16 policy role with the Committee other than to pro17 vide analysis under subparagraph (A) in connec18 tion with a covered transaction. 

19 ‘‘(5) RESUBMITTALS OF NOTICE AND REQUESTS

20 FOR ADDITIONAL REVIEW OR INVESTIGATION.— 

21 ‘‘(A) INGENERAL.—No provision of this 

22 subsection shall be construed as prohibiting any 

23 party to a covered transaction from— 

24 ‘‘(i) submitting additional information 

25 concerning the transaction, including any 


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1 proposed restructuring of the transaction or 

2 any modifications to any agreements in 

3 connection with the transaction, while any 

4 review or investigation of the transaction is 

5 on-going; or 

6 ‘‘(ii) requesting a review or investiga7 tion of the transaction after any previous 

8 review or investigation of the same or a 

9 similar transaction has become final if in10 formation material to the prior review or 

11 investigation and not previously submitted 

12 to the Committee becomes known or if any 

13 material change in circumstances to the 

14 covered transaction has occurred since the 

15 review or investigation. 

16 ‘‘(B) APPROVAL OF REQUEST.—In the case 

17 of a request referred to in subparagraph (A)(ii), 

18 the Committee shall determine by consensus 

19 whether to grant a request. 

20 ‘‘(6) REGULATIONS.—Regulations prescribed 

21 under this section shall include standard procedures 

22 for— 

23 ‘‘(A) submitting any notice of a proposed or 

24 pending covered transaction to the Committee; 


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

2 proposed or pending covered transaction from re3 view; and 

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

5 pending covered transaction that was previously 

6 withdrawn from review.’’. 

7 SEC. 3. STATUTORY ESTABLISHMENT OF THE COMMITTEE 

8 ON FOREIGN INVESTMENT IN THE UNITED 

9 STATES. 

10 (a) IN GENERAL.—Section 721 of the Defense Produc11 tion Act of 1950 (50 U.S.C. App. 2170) is amended by strik12 ing subsection (k) and inserting the following new sub13 section: 

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

15 UNITED STATES.— 

16 ‘‘(1) ESTABLISHMENT.—The Committee on For17 eign Investment in the United States established pur18 suant to Executive Order No. 11858 shall be a multi19 agency committee to carry out this section and such 

20 other assignments as the President may designate. 

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

22 comprised of the following members or the designee of 

23 any such member: 

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

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


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1 ‘‘(C) The Secretary of Commerce. 

2 ‘‘(D) The Secretary of Defense. 

3 ‘‘(E) The Secretary of State. 

4 ‘‘(F) The Attorney General. 

5 ‘‘(G) The Chairman of the Council of Eco6 nomic Advisors. 

7 ‘‘(H) The United States Trade Representa8 tive. 

9 ‘‘(I) The Director of the Office of Manage10 ment and Budget. 

11 ‘‘(J) The Director of the National Economic 

12 Council. 

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

14 and Technology Policy. 

15 ‘‘(L) The President’s Assistant for National 

16 Security Affairs. 

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

18 from the Executive Office of the President. 

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

20 Secretary of the Treasury shall be the Chairperson of 

21 the Committee. The Secretary of Homeland Security 

22 shall be the Vice Chairperson of the Committee. 

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

24 (b)(4)(B), the Chairperson of the Committee shall in25 volve the heads of such other Federal departments, 


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1 agencies, and independent establishments in any re2 view or investigation under subsection (b) as the 

3 Chairperson, after consulting with the Vice Chair4 person, determines to be appropriate on the basis of 

5 the facts and circumstances of the transaction under 

6 investigation (or the designee of any such department 

7 or agency head). 

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

9 upon the direction of the President or upon the call 

10 of the Chairperson of the Committee without regard 

11 to section 552b of title 5, United States Code (if other12 wise applicable). 

13 ‘‘(6) COLLECTIONOF EVIDENCE.—Subject to sub14 section (c), the Committee may, for the purpose of 

15 carrying out this section— 

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

17 take such testimony, receive such evidence, ad18 minister such oaths; and 

19 ‘‘(B) require the attendance and testimony 

20 of such witnesses and the production of such 

21 books, records, correspondence, memoranda, pa22 pers, and documents as the Chairperson of the 

23 Committee may determine advisable. 

24 ‘‘(7) AUTHORIZATIONOF APPROPRIATIONS.— 

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1 retary of the Treasury for each of fiscal years 2007, 

2 2008, 2009, and 2010, expressly and solely for the op3 erations of the Committee that are conducted by the 

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

5 (b) TECHNICAL AND CONFORMING AMENDMENT.—The 

6 first sentence of section 721(c) of the Defense Production 

7 Act of 1950 (50 U.S.C. App. 2170(c)) is amended— 

8 (1) by striking ‘‘material filed with’’ and insert9 ing ‘‘material, including proprietary business infor10 mation, filed with, or testimony presented to,’’; and 

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

12 2nd place such term appears and inserting ‘‘, docu13 mentary material, or testimony’’. 

14 SEC. 4. ADDITIONAL FACTORS REQUIRED TO BE CONSID15 ERED. 

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

17 (50 U.S.C. App. 2170(f)) is amended— 

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

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

20 ‘‘shall’’; and 

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

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

23 (4); 

24 (3) by striking the period at the end of para25 graph (5) and inserting a semicolon; and 


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1 (4) by adding at the end the following new para2 graphs: 

3 ‘‘(6) whether the covered transaction has a secu4 rity-related impact on critical infrastructure in the 

5 United States; 

6 ‘‘(7) whether the covered transaction is a foreign 

7 government-controlled transaction; and 

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

9 President’s designee may determine to be appropriate, 

10 generally or in connection with a specific review or 

11 investigation.’’. 

12 SEC. 5. NONWAIVER OF SOVEREIGN IMMUNITY. 

13 Section 721(d) of the Defense Production Act of 1950 

14 (50 U.S.C. App. 2170(d)) is amended by adding at the end 

15 the following new sentence: ‘‘The United States shall not 

16 be held liable for any losses or other expenses incurred by 

17 any party to a covered transaction as a result of actions 

18 taken under this section after a covered transaction has been 

19 consummated if the party did not submit a written notice 

20 of the transaction to the Chairperson of the Committee 

21 under subsection (b)(1)(C) or did not wait until the comple22 tion of any review or investigation under subsection (b), 

23 or the end of the 15-day period referred to in this subsection, 

24 before consummating the transaction.’’. 


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1 SEC. 6. MITIGATION, TRACKING, AND POST-CONSUMMA2 TION MONITORING AND ENFORCEMENT. 

3 Section 721 of the Defense Production Act of 1950 (50 

4 U.S.C. App. 2170) is amended by inserting after subsection 

5 (k) (as amended by section 3 of this Act) the following new 

6 subsection: 

7 ‘‘(l) MITIGATION, TRACKING, AND POSTCONSUMMATION

8 MONITORING AND ENFORCEMENT.— 

9 ‘‘(1) MITIGATION.— 

10 ‘‘(A) INGENERAL.—The Committee may 

11 negotiate, enter into or impose, and enforce any 

12 agreement or condition with any party to a cov13 ered transaction in order to mitigate any threat 

14 to the national security of the United States. 

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

16 Any agreement entered into or condition imposed 

17 under subparagraph (A) shall be based on a risk18 based analysis of the threat to national security 

19 of the covered transaction. 

20 ‘‘(2) TRACKING AUTHORITY FOR WITHDRAWN NO21 TICES.— 

22 ‘‘(A) INGENERAL.—If any written notice of 

23 a covered transaction that was submitted to the 

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1 mittee under subsection (b) is completed, the 

2 Committee shall establish, as appropriate— 

3 ‘‘(i) interim protections to address spe4 cific concerns with such transaction that 

5 have been raised in connection with any 

6 such review or investigation pending any 

7 resubmission of any written notice under 

8 this section with respect to such transaction 

9 and further action by the President under 

10 this section; 

11 ‘‘(ii) specific timeframes for resubmit12 ting any such written notice; and 

13 ‘‘(iii) a process for tracking any ac14 tions that may be taken by any party to the 

15 transaction, in connection with the trans16 action, before the notice referred to in clause 

17 (ii) is resubmitted. 

18 ‘‘(B) DESIGNATION OF AGENCY.—The Com19 mittee may designate an appropriate Federal de20 partment or agency, other than any entity of the 

21 intelligence community (as defined in the Na22 tional Security Act of 1947), as the lead agency 

23 to carry out the requirements of subparagraph 

24 (A) with respect to any covered transaction that 

25 is subject to such subparagraph. 


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1 ‘‘(3) NEGOTIATION, MODIFICATION, MONITORING, 

2 AND ENFORCEMENT.— 

3 ‘‘(A) DESIGNATION OF AGENCY.—The Com4 mittee shall designate a Federal department or 

5 agency as the lead agency to negotiate, modify, 

6 monitor, and enforce any agreement entered into 

7 or condition imposed under paragraph (1) with 

8 respect to a covered transaction based on the ex9 pertise with and knowledge of the issues related 

10 to such transaction on the part of the designated 

11 department or agency. 

12 ‘‘(B) REPORTING BY DESIGNATED AGEN13 CY.— 

14 ‘‘(i) IMPLEMENTATION REPORTS.—The 

15 Federal department or agency designated by 

16 the Committee as a lead agency under sub17 paragraph (A) in connection with any 

18 agreement entered into or condition im19 posed under paragraph (1) with respect to 

20 a covered transaction shall— 

21 ‘‘(I) provide periodic reports to 

22 the Chairperson and Vice Chairperson 

23 of the Committee on the implementa24 tion of such agreement or condition; 

25 and 


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

2 party to the covered transaction to re3 port to the head of such department or 

4 agency (or the designee of such depart5 ment or agency head) on the imple6 mentation or any material change in 

7 circumstances. 

8 ‘‘(ii) MODIFICATIONREPORTS.—The 

9 Federal department or agency designated by 

10 the Committee as a lead agency under sub11 paragraph (A) in connection with any 

12 agreement entered into or condition im13 posed with respect to a covered transaction 

14 shall— 

15 ‘‘(I) provide periodic reports to 

16 the Chairperson and Vice Chairperson 

17 of the Committee on any modification 

18 to any such agreement or condition 

19 imposed with respect to the trans20 action; and 

21 ‘‘(II) ensure that any significant 

22 modification to any such agreement or 

23 condition is reported to the Director of 

24 National Intelligence and to any other 

25 Federal department or agency that 


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1 may have a material interest in such 

2 modification.’’. 

3 SEC. 7. INCREASED OVERSIGHT BY THE CONGRESS. 

4 (a) REPORT ON ACTIONS.—Section 721(g) of the De5 fense Production Act of 1950 (50 U.S.C. App. 2170) is 

6 amended to read as follows: 

7 ‘‘(g) REPORTS TO THE CONGRESS.— 

8 ‘‘(1) REPORTS ONCOMPLETED COMMITTEE IN9 VESTIGATIONS.— 

10 ‘‘(A) INGENERAL.—Not later than 5 days 

11 after the completion of a Committee investiga12 tion of a covered transaction under subsection 

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

14 take any action authorized under subsection (d) 

15 with respect to the transaction, after the end of 

16 15-day period referred to in subsection (d), the 

17 Chairperson or Vice Chairperson of the Com18 mittee shall submit a written report on the find19 ings or actions of the Committee with respect to 

20 such investigation, the determination of whether 

21 or not to take action under subsection (d), an ex22 planation of the findings under subsection (e), 

23 and the factors considered under subsection (f), 

24 with respect to such transaction, to— 


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1 ‘‘(i) the Majority Leader and the Mi2 nority Leader of the Senate; 

3 ‘‘(ii) the Speaker and the Minority 

4 Leader of the House of Representatives; and 

5 ‘‘(iii) the chairman and ranking mem6 ber of each committee of the House of Rep7 resentatives and the Senate with jurisdic8 tion over any aspect of the covered trans9 action and its possible effects on national 

10 security. 

11 ‘‘(B) NOTICE AND BRIEFING REQUIRE12 MENT.—If a written request for a briefing on a 

13 covered transaction is submitted to the Com14 mittee by any Senator or Member of Congress 

15 who receives a report on the transaction under 

16 subparagraph (A), the Chairperson or Vice 

17 Chairperson (or such other person as the Chair18 person or Vice Chairperson may designate) shall 

19 provide 1 classified briefing to each House of the 

20 Congress from which any such briefing request 

21 originates in a secure facility of appropriate size 

22 and location that shall be open only to the Ma23 jority Leader and the Minority Leader of the 

24 Senate, the Speaker and the Minority Leader of 

25 the House of Representatives, (as the case may 


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1 be) the chairman and ranking member of each 

2 committee of the House of Representatives or the 

3 Senate (as the case may be) with jurisdiction 

4 over any aspect of the covered transaction and 

5 its possible effects on national security, and ap6 propriate staff members who have security clear7 ance. 

8 ‘‘(2) APPLICATIONOF OTHER PROVISION.— 

9 ‘‘(A) INGENERAL.—The disclosure of infor10 mation under this subsection shall be consistent 

11 with the requirements of subsection (c). Members 

12 of Congress and staff of either House or any 

13 committee of the Congress shall be subject to the 

14 same limitations on disclosure of information as 

15 are applicable under such subsection. 

16 ‘‘(B) PROPRIETARY INFORMATION.—Propri17 etary information which can be associated with 

18 a particular party to a covered transaction shall 

19 be furnished in accordance with subparagraph 

20 (A) only to a committee of the Congress and only 

21 when the committee provides assurances of con22 fidentiality, unless such party otherwise consents 

23 in writing to such disclosure.’’. 

24 (b) SEMI-ANNUAL REPORT.—Section 721 of the De25 fense Production Act of 1950 (50 U.S.C. App. 2170) is 


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1 amended by inserting after subsection (l) (as added by sec2 tion 6 of this Act) the following new subsection: 

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

4 ‘‘(1) INGENERAL.—The Chairperson of the Com5 mittee shall transmit a report to the Congress before 

6 January 31 and July 31 of each year on all the re7 views and investigations of covered transactions con8 ducted under subsection (b) during the 6-month pe9 riod covered by the report. 

10 ‘‘(2) CONTENTS OF REPORT RELATING TO COV11 ERED TRANSACTIONS.—The report under paragraph 

12 (1) shall contain the following information with re13 spect to each covered transaction: 

14 ‘‘(A) A list of all notices filed and all re15 views or investigations conducted during the pe16 riod with basic information on each party to the 

17 transaction, the nature of the business activities 

18 or products of all pertinent persons, along with 

19 information about the status of the review or in20 vestigation, information on any withdrawal 

21 from the process, any rollcall votes by the Com22 mittee under this section, any extension of time 

23 for any investigation, and any presidential deci24 sion or action under this section. 


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1 ‘‘(B) Specific, cumulative, and, as appro2 priate, trend information on the numbers of fil3 ings, investigations, withdrawals, and presi4 dential decisions or actions under this section. 

5 ‘‘(C) Cumulative and, as appropriate, trend 

6 information on the business sectors involved in 

7 the filings which have been made, and the coun8 tries from which the investments have originated. 

9 ‘‘(D) Information on whether companies 

10 that withdrew notices to the Committee in ac11 cordance with subsection (b)(1)(C)(ii) have later 

12 re-filed such notices, or, alternatively, abandoned 

13 the transaction. 

14 ‘‘(E) The types of security arrangements 

15 and conditions the Committee has used to miti16 gate national security concerns about a trans17 action. 

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

19 adverse effects of covered transactions on the na20 tional security or critical infrastructure of the 

21 United States that the Committee will take into 

22 account in its deliberations during the period be23 fore delivery of the next such report, to the extent 

24 possible. 


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1 ‘‘(3) CONTENTS OF REPORT RELATING TO CRIT2 ICAL TECHNOLOGIES.— 

3 ‘‘(A) INGENERAL.—In order to assist the 

4 Congress in its oversight responsibilities with re5 spect to this section, the President and such 

6 agencies as the President shall designate shall in7 clude in the semi-annual report submitted under 

8 paragraph (1) the following: 

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

10 credible evidence of a coordinated strategy 

11 by 1 or more countries or companies to ac12 quire United States companies involved in 

13 research, development, or production of crit14 ical technologies for which the United States 

15 is a leading producer. 

16 ‘‘(ii) An evaluation of whether there 

17 are industrial espionage activities directed 

18 or directly assisted by foreign governments 

19 against private United States companies 

20 aimed at obtaining commercial secrets re21 lated to critical technologies. 

22 ‘‘(B) CRITICAL TECHNOLOGIES DEFINED.— 

23 For purposes of this paragraph, the term ‘crit24 ical technologies’ means technologies identified 

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1 nology Policy, Organization, and Priorities Act 

2 of 1976 or other critical technology, critical com3 ponents, or critical technology items essential to 

4 national defense or national security identified 

5 pursuant to this section. 

6 ‘‘(C) RELEASE OF UNCLASSIFIED STUDY.— 

7 That portion of the semi-annual report under 

8 paragraph (1) that is required by this para9 graph may be classified. An unclassified version 

10 of that portion of the report shall be made avail11 able to the public.’’. 

12 (c) INVESTIGATION BY INSPECTOR GENERAL.— 

13 (1) INGENERAL.—The Inspector General of the 

14 Department of the Treasury shall conduct an inde15 pendent investigation to determine all of the facts and 

16 circumstances concerning each failure of the Depart17 ment of the Treasury to make any report to the Con18 gress that was required under section 721(k) of the 

19 Defense Production Act of 1950 (as in effect before the 

20 date of the enactment of this Act). 

21 (2) REPORT TO THE CONGRESS.—Before the end 

22 of the 270-day period beginning on the date of the en23 actment of this Act, the Inspector General of the De24 partment of the Treasury shall submit a report to the 

25 Congress on the investigation under paragraph (1) 


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1 containing the findings and conclusions of the Inspec2 tor General. 

3 (d) STUDY AND REPORT.— 

4 (1) STUDY REQUIRED.—Before the end of the 

5 120-day period beginning on the date of the enact6 ment of this Act, the Secretary of the Treasury, in 

7 consultation with the Secretary of State and the Sec8 retary of Commerce, shall conduct a study on invest9 ments in the United States, especially investments in 

10 critical infrastructure and industries affecting na11 tional security, by— 

12 (A) foreign governments, entities controlled 

13 by or acting on behalf of a foreign government, 

14 or persons of foreign countries which comply 

15 with any boycott of Israel; or 

16 (B) foreign governments, entities controlled 

17 by or acting on behalf of a foreign government, 

18 or persons of foreign countries which do not ban 

19 organizations designated by the Secretary of 

20 State as foreign terrorist organizations. 

21 (2) REPORT.—Before the end of the 30-day pe22 riod beginning upon completion of the study under 

23 paragraph (1) or in the next semi-annual report 

24 under section 721(m) of the Defense Production Act 

25 of 1950 (as added by subsection (b)), the Secretary of 


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1 the Treasury shall submit a report to the Congress, 

2 for transmittal to all appropriate committees of the 

3 Senate and the House of Representatives, containing 

4 the findings and conclusions of the Secretary with re5 spect to the study, together with an analysis of the ef6 fects of such investment on the national security of the 

7 United States and on any efforts to address those ef8 fects. 

9 SEC. 8. CERTIFICATION OF NOTICES AND ASSURANCES. 

10 Section 721 of the Defense Production Act of 1950 (50 

11 U.S.C. App. 2170) is amended by inserting after subsection 

12 (m) (as added by section 7(b) of this Act) the following new 

13 subsection: 

14 ‘‘(n) CERTIFICATIONOF NOTICES AND ASSURANCES.— 

15 Each notice required to be submitted, by a party to a cov16 ered transaction, to the President or the President’s designee 

17 under this section and regulations prescribed under such 

18 section, and any information submitted by any such party 

19 in connection with any action for which a report is required 

20 pursuant to paragraph (3)(B)(ii) of subsection (l) with re21 spect to the implementation of any mitigation agreement 

22 or condition described in paragraph (1)(A) of such sub23 section, or any material change in circumstances, shall be 

24 accompanied by a written statement by the chief executive 

25 officer or the designee of the person required to submit such 


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1 notice or information certifying that, to the best of the per2 son’s knowledge and belief— 

3 ‘‘(1) the notice or information submitted fully 

4 complies with the requirements of this section or such 

5 regulation, agreement, or condition; and 

6 ‘‘(2) the notice or information is accurate and 

7 complete in all material respects.’’. 

8 SEC. 9. REGULATIONS. 

9 Section 721(h) of the Defense Production Act of 1950 

10 (50 U.S.C. App. 2170(h)) is amended to read as follows: 

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

12 issuance of regulations to carry out this section. Such regu13 lations shall, to the extent possible, minimize paperwork 

14 burdens and shall to the extent possible coordinate reporting 

15 requirements under this section with reporting require16 ments under any other provision of Federal law.’’. 

17 SEC. 10. EFFECT ON OTHER LAW. 

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

19 (50 U.S.C. App. 2170(i)) is amended to read as follows: 

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

21 section shall be construed as altering or affecting any other 

22 authority, process, regulation, investigation, enforcement 

23 measure, or review provided by or established under any 

24 other provision of Federal law, including the International 

25 Emergency Economic Powers Act, or any other authority 


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1 of the President or the Congress under the Constitution of 

2 the United States.’’. 

3 SECTION 1. SHORT TITLE. 

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

5 National Security Reviews of Foreign Direct 

6 Investments Act’’. 

7 SEC. 2. UNITED STATES SECURITY IMPROVEMENT AMEND8 MENTS; CLARIFICATION OF REVIEW AND IN9 VESTIGATION PROCESS. 

10 Section 721 of the Defense Production Act 

11 of 1950 (50 U.S.C. App. 2170) is amended by 

12 striking subsections (a) and (b) and inserting 

13 the following new subsections: 

14 ‘‘(a) DEFINITIONS.—For purposes of this 

15 section, the following definitions shall apply: 

16 ‘‘(1) COMMITTEE.—The term ‘Com17 mittee’ means the Committee on Foreign 

18 Investment in the United States. 

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

20 the meaning given to such term in regu21 lations which the Committee shall pre22 scribe. 

23 ‘‘(3) COVERED TRANSACTION.—The term 

24 ‘covered transaction’ means any merger, 

25 acquisition, or takeover by or with any 


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1 foreign person which could result in for2 eign control of any person engaged in 

3 interstate commerce in the United States. 

4 ‘‘(4) FOREIGN GOVERNMENT-CONTROLLED

5 TRANSACTION.—The term ‘foreign govern6 ment-controlled transaction’ means any 

7 covered transaction that could result in 

8 the control of any person engaged in 

9 interstate commerce in the United States 

10 by a foreign government or an entity con11 trolled by or acting on behalf of a foreign 

12 government. 

13 ‘‘(b) NATIONAL SECURITY REVIEWS AND IN14 VESTIGATIONS.—

15 ‘‘(1) NATIONAL SECURITY REVIEWS.—

16 ‘‘(A) IN GENERAL.—Upon receiving 

17 written notification under subpara18 graph (C) of any covered transaction, 

19 or on a motion made under subpara20 graph (D) with respect to any covered 

21 transaction, the President, acting 

22 through the Committee, shall review 

23 the covered transaction to determine 

24 whether the transaction threatens to 

25 impair the national security of the 


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1 United States and whether such 

2 threat can be mitigated. 

3 ‘‘(B) CONTROL BY FOREIGN GOVERN4 MENT.—If the Committee determines 

5 that the covered transaction is a for6 eign government-controlled trans7 action, the Committee shall conduct 

8 an investigation of the transaction 

9 under paragraph (2). 

10 ‘‘(C) WRITTEN NOTICE.—

11 ‘‘(i) IN GENERAL.—Any party to 

12 any covered transaction may ini13 tiate a review of the transaction 

14 under this paragraph by submit15 ting a written notice of the trans16 action to the Chairperson of the 

17 Committee. 

18 ‘‘(ii) WITHDRAWAL OF NOTICE.—

19 No covered transaction for which 

20 a notice was submitted under 

21 clause (i) may be withdrawn from 

22 review unless—

23 ‘‘(I) a written request for 

24 such withdrawal is submitted 


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1 by any party to the trans2 action; and 

3 ‘‘(II) the request is ap4 proved in writing by the 

5 Chairperson of the Com6 mittee. 

7 ‘‘(D) UNILATERAL INITIATION OF RE8 VIEW.—The President, the Committee, 

9 or any member of the Committee may 

10 move to initiate a review under sub11 paragraph (A) of—

12 ‘‘(i) any covered transaction; 

13 ‘‘(ii) any covered transaction 

14 that has previously been re15 viewed or investigated under this 

16 section, if any party to the trans17 action submitted false or mis18 leading material information to 

19 the Committee in connection with 

20 the review or investigation or 

21 omitted material information, in22 cluding material documents, from 

23 information submitted to the 

24 Committee; or 


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1 ‘‘(iii) any covered transaction 

2 that has previously been re3 viewed or investigated under this 

4 section, if any party to the trans5 action or the entity resulting 

6 from consummation of the trans7 action intentionally materially 

8 breaches a mitigation agreement 

9 or condition described in sub10 section (l)(1)(A), and—

11 ‘‘(I) such breach is cer12 tified by the lead department 

13 or agency monitoring and en14 forcing such agreement or 

15 condition as an intentional 

16 material breach; and 

17 ‘‘(II) such department or 

18 agency certifies that there is 

19 no other remedy or enforce20 ment tool available to address 

21 such breach. 

22 ‘‘(E) TIMING.—Any review under 

23 this paragraph shall be completed be24 fore the end of the 30-day period be25 ginning on the date of the receipt of 


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1 written notice under subparagraph 

2 (C) by the Chairperson of the Com3 mittee, or the date of the initiation of 

4 the review in accordance with a mo5 tion under subparagraph (D). 

6 ‘‘(2) NATIONAL SECURITY INVESTIGA7 TIONS.—

8 ‘‘(A) IN GENERAL.—In each case in 

9 which—

10 ‘‘(i) a review of a covered 

11 transaction under paragraph (1) 

12 results in a determination that—

13 ‘‘(I) the transaction threat14 ens to impair the national se15 curity of the United States 

16 and that threat has not been 

17 mitigated during or prior to 

18 the review of a covered trans19 action under paragraph (1); or 

20 ‘‘(II) the transaction is a 

21 foreign government-con22 trolled transaction; or 

23 ‘‘(ii) the Director of National 

24 Intelligence identifies particu25 larly complex national security or 


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1 intelligence issues that could 

2 threaten to impair the national 

3 security of the United States and 

4 were not resolved during the ini5 tial review period under para6 graph (1), 

7 the President, acting through the 

8 Committee, shall immediately con9 duct an investigation of the effects of 

10 the transaction on the national secu11 rity of the United States and take any 

12 necessary actions in connection with 

13 the transaction to protect the na14 tional security of the United States. 

15 ‘‘(B) TIMING.—

16 ‘‘(i) IN GENERAL.—Any inves17 tigation under subparagraph (A) 

18 shall be completed before the end 

19 of the 45-day period beginning on 

20 the date of the investigation com21 menced. 

22 ‘‘(ii) EXTENSIONS OF TIME.—The 

23 period established under sub24 paragraph (B) for any investiga25 tion of a covered transaction may 


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1 be extended with respect to any 

2 particular investigation by the 

3 President or by a rollcall vote of 

4 at least 2/3 of the members of the 

5 Committee involved in the inves6 tigation by the amount of time 

7 specified by the President or the 

8 Committee at the time of the ex9 tension, not to exceed 45 days, as 

10 necessary to collect and fully 

11 evaluate information relating to—

12 ‘‘(I) the covered trans13 action or parties to the trans14 action; and 

15 ‘‘(II) any effect of the 

16 transaction that could threat17 en to impair the national se18 curity of the United States. 

19 ‘‘(3) APPROVAL OF CHAIRPERSON RE20 QUIRED.—

21 ‘‘(A) IN GENERAL.—A review or in22 vestigation under this subsection of a 

23 covered transaction shall not be 

24 treated as final or complete until the 

25 findings and the report resulting 


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1 from such review or investigation are 

2 approved and signed by the Chair3 person of the Committee after ap4 proval by a majority vote of the Com5 mittee. 

6 ‘‘(B) ADDITIONAL ACTIONS REQUIRED

7 IN CERTAIN CASES.—In the case of an 

8 investigation under paragraph (2) of 

9 any foreign government-controlled 

10 transaction, an investigation shall not 

11 be treated as final or complete until 

12 the findings and report resulting 

13 from such investigation—

14 ‘‘(i) are approved by a major15 ity of the members of the Com16 mittee in a roll call vote; and 

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

18 vote pursuant to clause (i) in 

19 which there is at least 1 vote by a 

20 Committee member against ap21 proving a foreign government22 controlled transaction, are signed 

23 by the President (in addition to 

24 the Chairperson and the Vice 


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1 Chairperson of the Committee 

2 under subparagraph (A)). 

3 ‘‘(4) ANALYSIS BY DIRECTOR OF NA4 TIONAL INTELLIGENCE.—

5 ‘‘(A) IN GENERAL.—The Director of 

6 National Intelligence shall expedi7 tiously carry out a thorough analysis 

8 of any threat to the national security 

9 of the United States of any covered 

10 transaction, including an affirmative 

11 inquiry for information to the Direc12 tor of the Office of Foreign Assets 

13 Control within the Department of the 

14 Treasury and the Director of the Fi15 nancial Crimes Enforcement Net16 work. 

17 ‘‘(B) 30-DAY MINIMUM.—The anal18 ysis required under subparagraph (A) 

19 shall take no less than 30 days and be 

20 completed no less than 7 days before 

21 the end of the initial review period 

22 under paragraph (1), except in any in23 stance described in paragraph 

24 (2)(A)(ii). 


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1 ‘‘(C) INDEPENDENT ROLE OF DIREC2 TOR.—The Director of National Intel3 ligence shall not be a member of the 

4 Committee and shall serve no policy 

5 role with the Committee other than 

6 to provide analysis under subpara7 graph (A) in connection with a cov8 ered transaction. 

9 ‘‘(5) RESUBMITTALS OF NOTICE AND RE10 QUESTS FOR ADDITIONAL REVIEW OR INVES11 TIGATION.—

12 ‘‘(A) IN GENERAL.—No provision of 

13 this subsection shall be construed as 

14 prohibiting any party to a covered 

15 transaction from—

16 ‘‘(i) submitting additional in17 formation concerning the trans18 action, including any proposed re19 structuring of the transaction or 

20 any modifications to any agree21 ments in connection with the 

22 transaction, while any review or 

23 investigation of the transaction is 

24 on-going; or 


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1 ‘‘(ii) requesting a review or in2 vestigation of the transaction 

3 after any previous review or in4 vestigation of the same or a simi5 lar transaction has become final 

6 if information material to the 

7 prior review or investigation and 

8 not previously submitted to the 

9 Committee becomes known or if 

10 any material change in cir11 cumstances to the covered trans12 action has occurred since the re13 view or investigation. 

14 ‘‘(B) APPROVAL OF REQUEST.—In 

15 the case of a request referred to in 

16 subparagraph (A)(ii), the Committee 

17 shall determine by consensus wheth18 er to grant a request. 

19 ‘‘(6) REGULATIONS.—Regulations pre20 scribed under this section shall include 

21 standard procedures for—

22 ‘‘(A) submitting any notice of a 

23 proposed or pending covered trans24 action to the Committee; 


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1 ‘‘(B) submitting a request to with2 draw a proposed or pending covered 

3 transaction from review; and 

4 ‘‘(C) resubmitting a notice of pro5 posed or pending covered transaction 

6 that was previously withdrawn from 

7 review.’’. 

8 SEC. 3. STATUTORY ESTABLISHMENT OF THE COMMITTEE 

9 ON FOREIGN INVESTMENT IN THE UNITED 

10 STATES. 

11 (a) IN GENERAL.—Section 721 of the De12 fense Production Act of 1950 (50 U.S.C. App. 

13 2170) is amended by striking subsection (k) 

14 and inserting the following new subsection: 

15 ‘‘(k) COMMITTEE ON FOREIGN INVESTMENT IN

16 THE UNITED STATES.—

17 ‘‘(1) ESTABLISHMENT.—The Committee 

18 on Foreign Investment in the United 

19 States established pursuant to Executive 

20 Order No. 11858 shall be a multi-agency 

21 committee to carry out this section and 

22 such other assignments as the President 

23 may designate. 


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1 ‘‘(2) MEMBERSHIP.—The Committee 

2 shall be comprised of the following mem3 bers or the designee of any such member: 

4 ‘‘(A) The Secretary of the Treas5 ury. 

6 ‘‘(B) The Secretary of Homeland 

7 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 Secretary of Energy. 

13 ‘‘(H) The Chairman of the Council 

14 of Economic Advisors. 

15 ‘‘(I) The United States Trade Rep16 resentative. 

17 ‘‘(J) The Director of the Office of 

18 Management and Budget. 

19 ‘‘(K) The Director of the National 

20 Economic Council. 

21 ‘‘(L) The Director of the Office of 

22 Science and Technology Policy. 

23 ‘‘(M) The President’s Assistant for 

24 National Security Affairs. 


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1 ‘‘(3) CHAIRPERSON.—The Secretary of 

2 Commerce shall be the Chairperson of 

3 the Committee. 

4 ‘‘(4) OTHER MEMBERS.—Subject to sub5 section (b)(4)(B), the Chairperson of the 

6 Committee shall involve the heads of 

7 such other Federal departments, agen8 cies, and independent establishments in 

9 any review or investigation under sub10 section (b) as the Chairperson determines 

11 to be appropriate on the basis of the facts 

12 and circumstances of the transaction 

13 under investigation (or the designee of 

14 any such department or agency head). 

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

16 meet upon the direction of the President 

17 or upon the call of the Chairperson of the 

18 Committee without regard to section 

19 552b of title 5, United States Code (if oth20 erwise applicable). 

21 ‘‘(6) COLLECTION OF EVIDENCE.—Sub22 ject to subsection (c), the Committee may, 

23 for the purpose of carrying out this sec24 tion—


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1 ‘‘(A) sit and act at such times and 

2 places, take such testimony, receive 

3 such evidence, administer such oaths; 

4 and 

5 ‘‘(B) require the attendance and 

6 testimony of such witnesses and the 

7 production of such books, records, 

8 correspondence, memoranda, papers, 

9 and documents as the Chairperson of 

10 the Committee may determine advis11 able. 

12 ‘‘(7) AUTHORIZATION OF APPROPRIA13 TIONS.—There are authorized to be appro14 priated to the Secretary of the Treasury 

15 for each of fiscal years 2007, 2008, 2009, 

16 and 2010, expressly and solely for the op17 erations of the Committee that are con18 ducted by the Secretary, the sum of 

19 $10,000,000.’’. 

20 (b) TECHNICAL AND CONFORMING AMEND21 MENT.—The first sentence of section 721(c) of 

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

23 App. 2170(c)) is amended—

24 (1) by striking ‘‘material filed with’’

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1 etary business information, filed with, or 

2 testimony presented to,’’; and 

3 (2) by striking ‘‘or documentary mate4 rial’’ the 2nd place such term appears 

5 and inserting ‘‘, documentary material, or 

6 testimony’’. 

7 SEC. 4. ADDITIONAL FACTORS REQUIRED TO BE CONSID8 ERED. 

9 Section 721(f) of the Defense Production 

10 Act of 1950 (50 U.S.C. App. 2170(f)) is amend11 ed—

12 (1) in the matter preceding paragraph 

13 (1)—

14 (A) by striking ‘‘may’’ and insert15 ing ‘‘shall’’; and 

16 (B) by striking ‘‘among other fac17 tors’’; 

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

19 paragraph (4); 

20 (3) by striking the period at the end 

21 of paragraph (5) and inserting a semi22 colon; and 

23 (4) by adding at the end the following 

24 new paragraphs: 


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1 ‘‘(6) whether the covered transaction 

2 has a security-related impact on critical 

3 infrastructure in the United States; 

4 ‘‘(7) whether the covered transaction 

5 is a foreign government-controlled trans6 action; and 

7 ‘‘(8) such other factors as the Presi8 dent or the President’s designee may de9 termine to be appropriate, generally or in 

10 connection with a specific review or in11 vestigation.’’. 

12 SEC. 5. NONWAIVER OF SOVEREIGN IMMUNITY. 

13 Section 721(d) of the Defense Production 

14 Act of 1950 (50 U.S.C. App. 2170(d)) is amended 

15 by adding at the end the following new sen16 tence: ‘‘The United States shall not be held lia17 ble for any losses or other expenses incurred 

18 by any party to a covered transaction as a re19 sult of actions taken under this section after 

20 a covered transaction has been consummated 

21 if the party did not submit a written notice of 

22 the transaction to the Chairperson of the 

23 Committee under subsection (b)(1)(C) or did 

24 not wait until the completion of any review or 

25 investigation under subsection (b), or the end 


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1 of the 15-day period referred to in this sub2 section, before consummating the trans3 action.’’. 

4 SEC. 6. MITIGATION, TRACKING, AND POST-CONSUMMA5 TION MONITORING AND ENFORCEMENT. 

6 Section 721 of the Defense Production Act 

7 of 1950 (50 U.S.C. App. 2170) is amended by in8 serting after subsection (k) (as amended by 

9 section 3 of this Act) the following new sub10 section: 

11 ‘‘(l) MITIGATION, TRACKING, AND

12 POSTCONSUMMATION MONITORING AND EN13 FORCEMENT.—

14 ‘‘(1) MITIGATION.—

15 ‘‘(A) IN GENERAL.—The Committee 

16 may negotiate, enter into or impose, 

17 and enforce any agreement or condi18 tion with any party to a covered 

19 transaction in order to mitigate any 

20 threat to the national security of the 

21 United States. 

22 ‘‘(B) RISK-BASED ANALYSIS RE23 QUIRED.—Any agreement entered into 

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1 based analysis of the threat to na2 tional security of the covered trans3 action. 

4 ‘‘(2) TRACKING AUTHORITY FOR WITH5 DRAWN NOTICES.—

6 ‘‘(A) IN GENERAL.—If any written 

7 notice of a covered transaction that 

8 was submitted to the Committee 

9 under this section is withdrawn be10 fore any review or investigation by 

11 the Committee under subsection (b) is 

12 completed, the Committee shall estab13 lish, as appropriate—

14 ‘‘(i) interim protections to ad15 dress specific concerns with such 

16 transaction that have been raised 

17 in connection with any such re18 view or investigation pending any 

19 resubmission of any written no20 tice under this section with re21 spect to such transaction and fur22 ther action by the President 

23 under this section; 


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1 ‘‘(ii) specific timeframes for 

2 resubmitting any such written no3 tice; and 

4 ‘‘(iii) a process for tracking 

5 any actions that may be taken by 

6 any party to the transaction, in 

7 connection with the transaction, 

8 before the notice referred to in 

9 clause (ii) is resubmitted. 

10 ‘‘(B) DESIGNATION OF AGENCY.—The 

11 Committee may designate an appro12 priate Federal department or agency, 

13 other than any entity of the intel14 ligence community (as defined in the 

15 National Security Act of 1947), as the 

16 lead agency to carry out the require17 ments of subparagraph (A) with re18 spect to any covered transaction that 

19 is subject to such subparagraph. 

20 ‘‘(3) NEGOTIATION, MODIFICATION, MONI21 TORING, AND ENFORCEMENT.—

22 ‘‘(A) DESIGNATION OF AGENCY.—The 

23 Committee shall designate a Federal 

24 department or agency as the lead 

25 agency to negotiate, modify, monitor, 


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1 and enforce any agreement entered 

2 into or condition imposed under 

3 paragraph (1) with respect to a cov4 ered transaction based on the exper5 tise with and knowledge of the issues 

6 related to such transaction on the 

7 part of the designated department or 

8 agency. 

9 ‘‘(B) REPORTING BY DESIGNATED

10 AGENCY.—

11 ‘‘(i) IMPLEMENTATION RE12 PORTS.—The Federal department 

13 or agency designated by the Com14 mittee as a lead agency under 

15 subparagraph (A) in connection 

16 with any agreement entered into 

17 or condition imposed under para18 graph (1) with respect to a cov19 ered transaction shall—

20 ‘‘(I) provide periodic re21 ports to the Chairperson of 

22 the Committee on the imple23 mentation of such agreement 

24 or condition; and 


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1 ‘‘(II) require, as appro2 priate, any party to the cov3 ered transaction to report to 

4 the head of such department 

5 or agency (or the designee of 

6 such department or agency 

7 head) on the implementation 

8 or any material change in cir9 cumstances. 

10 ‘‘(ii) MODIFICATION REPORTS.—

11 The Federal department or agen12 cy designated by the Committee 

13 as a lead agency under subpara14 graph (A) in connection with any 

15 agreement entered into or condi16 tion imposed with respect to a 

17 covered transaction shall—

18 ‘‘(I) provide periodic re19 ports to the Chairperson of 

20 the Committee on any modi21 fication to any such agree22 ment or condition imposed 

23 with respect to the trans24 action; and 


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1 ‘‘(II) ensure that any sig2 nificant modification to any 

3 such agreement or condition 

4 is reported to the Director of 

5 National Intelligence and to 

6 any other Federal department 

7 or agency that may have a 

8 material interest in such 

9 modification.’’. 

10 SEC. 7. INCREASED OVERSIGHT BY THE CONGRESS. 

11 (a) REPORT ON ACTIONS.—Section 721(g) of 

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

13 App. 2170) is amended to read as follows: 

14 ‘‘(g) REPORTS TO THE CONGRESS.—

15 ‘‘(1) REPORTS ON COMPLETED COM16 MITTEE INVESTIGATIONS.—

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

18 days after the completion of a Com19 mittee investigation of a covered 

20 transaction under subsection (b)(2), 

21 or, if the President indicates an in22 tent to take any action authorized 

23 under subsection (d) with respect to 

24 the transaction, after the end of 15- 

25 day period referred to in subsection 


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1 (d), the Chairperson of the Committee 

2 shall submit a written report on the 

3 findings or actions of the Committee 

4 with respect to such investigation, 

5 the determination of whether or not 

6 to take action under subsection (d), 

7 an explanation of the findings under 

8 subsection (e), and the factors consid9 ered under subsection (f), with re10 spect to such transaction, to—

11 ‘‘(i) the Majority Leader and 

12 the Minority Leader of the Sen13 ate; 

14 ‘‘(ii) the Speaker and the Mi15 nority Leader of the House of 

16 Representatives; and 

17 ‘‘(iii) the chairman and rank18 ing member of each committee of 

19 the House of Representatives and 

20 the Senate with jurisdiction over 

21 any aspect of the covered trans22 action and its possible effects on 

23 national security, including the 

24 Committee on International Rela25 tions, the Committee on Financial 


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1 Services, and the Committee on 

2 Energy and Commerce of the 

3 House of Representatives. 

4 ‘‘(B) NOTICE AND BRIEFING REQUIRE5 MENT.—If a written request for a 

6 briefing on a covered transaction is 

7 submitted to the Committee by any 

8 Senator or Member of Congress who 

9 receives a report on the transaction 

10 under subparagraph (A), the Chair11 person (or such other person as the 

12 Chairperson may designate) shall 

13 provide 1 classified briefing to each 

14 House of the Congress from which 

15 any such briefing request originates 

16 in a secure facility of appropriate size 

17 and location that shall be open only 

18 to the Majority Leader and the Minor19 ity Leader of the Senate, the Speaker 

20 and the Minority Leader of the House 

21 of Representatives, (as the case may 

22 be) the chairman and ranking mem23 ber of each committee of the House of 

24 Representatives or the Senate (as the 

25 case may be) with jurisdiction over 


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1 any aspect of the covered transaction 

2 and its possible effects on national se3 curity, including the Committee on 

4 International Relations, the Com5 mittee on Financial Services, and the 

6 Committee on Energy and Commerce 

7 of the House of Representatives, and 

8 appropriate staff members who have 

9 security clearance. 

10 ‘‘(2) APPLICATION OF OTHER PROVI11 SION.—

12 ‘‘(A) IN GENERAL.—The disclosure 

13 of information under this subsection 

14 shall be consistent with the require15 ments of subsection (c). Members of 

16 Congress and staff of either House or 

17 any committee of the Congress shall 

18 be subject to the same limitations on 

19 disclosure of information as are ap20 plicable under such subsection. 

21 ‘‘(B) PROPRIETARY INFORMATION.—

22 Proprietary information which can 

23 be associated with a particular party 

24 to a covered transaction shall be fur25 nished in accordance with subparaVerDate Aug 31 2005 23:41 Jul 18, 2006 Jkt 049200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6202 E:\BILLS\H5337.RH H5337

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1 graph (A) only to a committee of the 

2 Congress and only when the com3 mittee provides assurances of con4 fidentiality, unless such party other5 wise consents in writing to such dis6 closure.’’. 

7 (b) SEMI-ANNUAL REPORT.—Section 721 of 

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

9 App. 2170) is amended by inserting after sub10 section (l) (as added by section 6 of this Act) 

11 the following new subsection: 

12 ‘‘(m) SEMI-ANNUAL REPORT TO THE CON13 GRESS.—

14 ‘‘(1) IN GENERAL.—The Chairperson of 

15 the Committee shall transmit a report to 

16 the chairman and ranking member of 

17 each committee of the House of Rep18 resentatives and the Senate with jurisdic19 tion over any aspect of the report, includ20 ing the Committee on International Rela21 tions, the Committee on Financial Serv22 ices, and the Committee on Energy and 

23 Commerce of the House of Representa24 tives, before January 31 and July 31 of 

25 each year on all the reviews and invesVerDate Aug 31 2005 23:41 Jul 18, 2006 Jkt 049200 PO 00000 Frm 00059 Fmt 6652 Sfmt 6202 E:\BILLS\H5337.RH H5337

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1 tigations of covered transactions con2 ducted under subsection (b) during the 6- 

3 month period covered by the report. 

4 ‘‘(2) CONTENTS OF REPORT RELATING TO

5 COVERED TRANSACTIONS.—The report 

6 under paragraph (1) shall contain the fol7 lowing information with respect to each 

8 covered transaction: 

9 ‘‘(A) A list of all notices filed and 

10 all reviews or investigations con11 ducted during the period with basic 

12 information on each party to the 

13 transaction, the nature of the busi14 ness activities or products of all per15 tinent persons, along with informa16 tion about the status of the review or 

17 investigation, information on any 

18 withdrawal from the process, any 

19 rollcall votes by the Committee under 

20 this section, any extension of time for 

21 any investigation, and any presi22 dential decision or action under this 

23 section. 

24 ‘‘(B) Specific, cumulative, and, as 

25 appropriate, trend information on the 


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1 numbers of filings, investigations, 

2 withdrawals, and presidential deci3 sions or actions under this section. 

4 ‘‘(C) Cumulative and, as appro5 priate, trend information on the busi6 ness sectors involved in the filings 

7 which have been made, and the coun8 tries from which the investments 

9 have originated. 

10 ‘‘(D) Information on whether com11 panies that withdrew notices to the 

12 Committee in accordance with sub13 section (b)(1)(C)(ii) have later re-filed 

14 such notices, or, alternatively, aban15 doned the transaction. 

16 ‘‘(E) The types of security ar17 rangements and conditions the Com18 mittee has used to mitigate national 

19 security concerns about a trans20 action. 

21 ‘‘(F) A detailed discussion of all 

22 perceived adverse effects of covered 

23 transactions on the national security 

24 or critical infrastructure of the 

25 United States that the Committee will 


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1 take into account in its deliberations 

2 during the period before delivery of 

3 the next such report, to the extent 

4 possible. 

5 ‘‘(3) CONTENTS OF REPORT RELATING TO

6 CRITICAL TECHNOLOGIES.—

7 ‘‘(A) IN GENERAL.—In order to as8 sist the Congress in its oversight re9 sponsibilities with respect to this sec10 tion, the President and such agencies 

11 as the President shall designate shall 

12 include in the semi-annual report 

13 submitted under paragraph (1) the 

14 following: 

15 ‘‘(i) An evaluation of whether 

16 there is credible evidence of a co17 ordinated strategy by 1 or more 

18 countries or companies to acquire 

19 United States companies involved 

20 in research, development, or pro21 duction of critical technologies 

22 for which the United States is a 

23 leading producer. 

24 ‘‘(ii) An evaluation of whether 

25 there are industrial espionage acVerDate Aug 31 2005 23:41 Jul 18, 2006 Jkt 049200 PO 00000 Frm 00062 Fmt 6652 Sfmt 6202 E:\BILLS\H5337.RH H5337

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1 tivities directed or directly as2 sisted by foreign governments 

3 against private United States 

4 companies aimed at obtaining 

5 commercial secrets related to 

6 critical technologies. 

7 ‘‘(B) CRITICAL TECHNOLOGIES DE8 FINED.—For purposes of this para9 graph, the term ‘critical technologies’

10 means technologies identified under 

11 title VI of the National Science and 

12 Technology Policy, Organization, and 

13 Priorities Act of 1976 or other critical 

14 technology, critical components, or 

15 critical technology items essential to 

16 national defense or national security 

17 identified pursuant to this section. 

18 ‘‘(C) RELEASE OF UNCLASSIFIED

19 STUDY.—That portion of the semi-an20 nual report under paragraph (1) that 

21 is required by this paragraph may be 

22 classified. An unclassified version of 

23 that portion of the report shall be 

24 made available to the public.’’. 


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1 (c) INVESTIGATION BY INSPECTOR GEN2 ERAL.—

3 (1) IN GENERAL.—The Inspector Gen4 eral of the Department of the Treasury 

5 shall conduct an independent investiga6 tion to determine all of the facts and cir7 cumstances concerning each failure of 

8 the Department of the Treasury to make 

9 any report to the Congress that was re10 quired under section 721(k) of the De11 fense Production Act of 1950 (as in effect 

12 before the date of the enactment of this 

13 Act). 

14 (2) REPORT TO THE CONGRESS.—Before 

15 the end of the 270-day period beginning 

16 on the date of the enactment of this Act, 

17 the Inspector General of the Department 

18 of the Treasury shall submit a report to 

19 the chairman and ranking member of 

20 each committee of the House of Rep21 resentatives and the Senate with jurisdic22 tion over any aspect of the report, includ23 ing the Committee on International Rela24 tions, the Committee on Financial Serv25 ices, and the Committee on Energy and 


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1 Commerce of the House of Representa2 tives, on the investigation under para3 graph (1) containing the findings and 

4 conclusions of the Inspector General. 

5 SEC. 8. CERTIFICATION OF NOTICES AND ASSURANCES. 

6 Section 721 of the Defense Production Act 

7 of 1950 (50 U.S.C. App. 2170) is amended by in8 serting after subsection (m) (as added by sec9 tion 7(b) of this Act) the following new sub10 section: 

11 ‘‘(n) CERTIFICATION OF NOTICES AND ASSUR12 ANCES.—Each notice required to be submitted 

13 to the President or the President’s designee 

14 under this section and regulations prescribed 

15 under such section, and each report required 

16 pursuant to paragraph (3)(B)(ii) of subsection 

17 (l) with respect to the implementation of any 

18 mitigation agreement or condition described 

19 in paragraph (1)(A) of such subsection or any 

20 material change in circumstances shall be ac21 companied by a written statement by the 

22 chief executive officer or the designee of the 

23 person required to submit such notice or re24 port certifying that, to the best of the person’s 

25 knowledge and belief—


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1 ‘‘(1) the notice or report submitted 

2 fully complies with the requirements of 

3 this section or such regulation, agree4 ment, or condition; and 

5 ‘‘(2) the information so contained is 

6 accurate and complete in all material re7 spects.’’. 

8 SEC. 9. REGULATIONS. 

9 Section 721(h) of the Defense Production 

10 Act of 1950 (50 U.S.C. App. 2170(h)) is amend11 ed to read as follows: 

12 ‘‘(h) REGULATIONS.—The President shall di13 rect the issuance of regulations to carry out 

14 this section. Such regulations shall, to the ex15 tent possible, minimize paperwork burdens 

16 and shall to the extent possible coordinate re17 porting requirements under this section with 

18 reporting requirements under any other pro19 vision of Federal law.’’. 

20 SEC. 10. EFFECT ON OTHER LAW. 

21 Section 721(i) of the Defense Production 

22 Act of 1950 (50 U.S.C. App. 2170(i)) is amended 

23 to read as follows: 

24 ‘‘(i) EFFECT ON OTHER LAW.—No provision 

25 of this section shall be construed as altering 


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1 or affecting any other authority, process, reg2 ulation, investigation, enforcement measure, 

3 or review provided by or established under 

4 any other provision of Federal law, including 

5 the International Emergency Economic Pow6 ers Act, or any other authority of the Presi7 dent or the Congress under the Constitution 

8 of the United States.’’. 


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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 

for other purposes. on Foreign Investment in the United States, and on national security, to establish the Committee ments are examined for any effect they may have jobs, to reform the process by which such investinvestment and the creation and maintenance of 

JULY 17, 2006 

Reported from the Committee on Energy and Commerce 

with an amendment 

JULY 17, 2006 

Committee on International Relations discharged; comState of the Union and ordered to be printed mitted to the Committee of the Whole House on the 


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