109TH CONGRESS 

2D SESSION H. R. 5337

AN ACT

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 

109TH CONGRESS 

2D SESSION H. R. 5337

AN ACT

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

to establish the Committee on Foreign Investment in 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘National Security For5 eign Investment Reform and Strengthened Transparency 

6 Act of 2006’’. 

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

10 Section 721 of the Defense Production Act of 1950 

11 (50 U.S.C. App. 2170) is amended by striking subsections 

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

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

14 following definitions shall apply: 

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

16 means the Committee on Foreign Investment in the 

17 United States. 

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

19 meaning given to such term in regulations which the 

20 Committee shall prescribe. 

21 ‘‘(3) COVERED TRANSACTION.—The term ‘cov22 ered transaction’ means any merger, acquisition, or 

23 takeover by or with any foreign person which could 

24 result in foreign control of any person engaged in 

25 interstate commerce in the United States. 
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1 ‘‘(4) FOREIGN GOVERNMENT-CONTROLLED

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

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

6 by a foreign government or an entity controlled by 

7 or acting on behalf of a foreign government. 

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

10 relating to ‘homeland security’, including its applica11 tion to critical infrastructure. 

12 ‘‘(b) NATIONAL SECURITY REVIEWS AND INVESTIGA13 TIONS.—

14 ‘‘(1) NATIONAL SECURITY REVIEWS.—

15 ‘‘(A) IN GENERAL.—Upon receiving writ16 ten notification under subparagraph (C) of any 

17 covered transaction, or on a motion made under 

18 subparagraph (D) with respect to any covered 

19 transaction, the President, acting through the 

20 Committee, shall review the covered transaction 

21 to determine the effects on the national security 

22 of the United States. 

23 ‘‘(B) CONTROL BY FOREIGN GOVERN24 MENT.—If the Committee determines that the 

25 covered transaction is a foreign government-
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1 controlled transaction, the Committee shall con2 duct an investigation of the transaction under 

3 paragraph (2). 

4 ‘‘(C) WRITTEN NOTICE.—

5 ‘‘(i) IN GENERAL.—Any party to any 

6 covered transaction may initiate a review 

7 of the transaction under this paragraph by 

8 submitting a written notice of the trans9 action to the Chairperson of the Com10 mittee. 

11 ‘‘(ii) WITHDRAWAL OF NOTICE.—No 

12 covered transaction for which a notice was 

13 submitted under clause (i) may be with14 drawn from review unless—

15 ‘‘(I) a written request for such 

16 withdrawal is submitted by any party 

17 to the transaction; and 

18 ‘‘(II) the request is approved in 

19 writing by the Chairperson, in con20 sultation with the Vice Chairpersons, 

21 of the Committee. 

22 ‘‘(iii) CONTINUING DISCUSSIONS.—

23 The approval of a withdrawal request 

24 under clause (ii) shall not be construed as 

25 precluding any party to the covered trans-
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1 action from continuing informal discus2 sions with the Committee or any Com3 mittee member regarding possible resub4 mission for review pursuant to this para5 graph. 

6 ‘‘(D) UNILATERAL INITIATION OF RE7 VIEW.—The President, the Committee, or any 

8 member of the Committee may move to initiate 

9 a review under subparagraph (A) of—

10 ‘‘(i) any covered transaction; 

11 ‘‘(ii) any covered transaction that has 

12 previously been reviewed or investigated 

13 under this section, if any party to the 

14 transaction submitted false or misleading 

15 material information to the Committee in 

16 connection with the review or investigation 

17 or omitted material information, including 

18 material documents, from information sub19 mitted to the Committee; or 

20 ‘‘(iii) any covered transaction that has 

21 previously been reviewed or investigated 

22 under this section, if any party to the 

23 transaction or the entity resulting from 

24 consummation of the transaction inten25 tionally materially breaches a mitigation 
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1 agreement or condition described in sub2 section (l)(1)(A), and—

3 ‘‘(I) such breach is certified by 

4 the lead department or agency moni5 toring and enforcing such agreement 

6 or condition as an intentional material 

7 breach; and 

8 ‘‘(II) such department or agency 

9 certifies that there is no other remedy 

10 or enforcement tool available to ad11 dress such breach. 

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

13 paragraph shall be completed before the end of 

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

15 receipt of written notice under subparagraph 

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

17 the date of the initiation of the review in ac18 cordance with a motion under subparagraph 

19 (D). 

20 ‘‘(2) NATIONAL SECURITY INVESTIGATIONS.—

21 ‘‘(A) IN GENERAL.—In each case in 

22 which—

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

24 under paragraph (1) results in a deter25 mination that—
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1 ‘‘(I) the transaction threatens to 

2 impair the national security of the 

3 United States and that threat has not 

4 been mitigated during or prior to the 

5 review of a covered transaction under 

6 paragraph (1); or 

7 ‘‘(II) the transaction is a foreign 

8 government-controlled transaction; 

9 ‘‘(ii) a roll call vote pursuant to para10 graph (3)(A) in connection with a review 

11 under paragraph (1) of any covered trans12 action results in at least 1 vote by a Com13 mittee member against approving the 

14 transaction; or 

15 ‘‘(iii) the Director of National Intel16 ligence identifies particularly complex intel17 ligence concerns that could threaten to im18 pair the national security of the United 

19 States and Committee members were not 

20 able to develop and agree upon measures 

21 to mitigate satisfactorily those threats dur22 ing the initial review period under para23 graph (1), 

24 the President, acting through the Committee, 

25 shall immediately conduct an investigation of 
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1 the effects of the transaction on the national se2 curity of the United States and take any nec3 essary actions in connection with the trans4 action to protect the national security of the 

5 United States. 

6 ‘‘(B) TIMING.—

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

8 under subparagraph (A) shall be completed 

9 before the end of the 45-day period begin10 ning on the date of the investigation com11 menced. 

12 ‘‘(ii) EXTENSIONS OF TIME.—The pe13 riod established under subparagraph (B) 

14 for any investigation of a covered trans15 action may be extended with respect to any 

16 particular investigation by the President or 

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

18 members of the Committee involved in the 

19 investigation by the amount of time speci20 fied by the President or the Committee at 

21 the time of the extension, not to exceed 45 

22 days, as necessary to collect and fully 

23 evaluate information relating to—

24 ‘‘(I) the covered transaction or 

25 parties to the transaction; and 
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1 ‘‘(II) any effect of the trans2 action that could threaten to impair 

3 the national security of the United 

4 States. 

5 ‘‘(3) APPROVAL OF CHAIRPERSON AND VICE

6 CHAIRPERSONS REQUIRED.—

7 ‘‘(A) IN GENERAL.—A review or investiga8 tion under this subsection of a covered trans9 action shall not be treated as final or complete 

10 until the findings and the report resulting from 

11 such review or investigation are approved by a 

12 majority of the members of the Committee in a 

13 roll call vote and signed by the Secretary of the 

14 Treasury, the Secretary of Homeland Security, 

15 and the Secretary of Commerce (and such au16 thority of each such Secretary may not be dele17 gated to any person other than the Deputy Sec18 retary of the Treasury, the Deputy Secretary of 

19 Homeland Security, or the Deputy Secretary of 

20 Commerce, respectively). 

21 ‘‘(B) ADDITIONAL ACTION REQUIRED IN

22 CERTAIN CASES.—In the case of any roll call 

23 vote pursuant to subparagraph (A) in connec24 tion with an investigation under paragraph (2) 

25 of any foreign government-controlled trans-
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1 action in which there is at least 1 vote by a 

2 Committee member against approving the 

3 transaction, the investigation shall not be treat4 ed as final or complete until the findings and 

5 report resulting from such investigation are 

6 signed by the President (in addition to the 

7 Chairperson and the Vice Chairpersons of the 

8 Committee under subparagraph (A)). 

9 ‘‘(4) ANALYSIS BY DIRECTOR OF NATIONAL IN10 TELLIGENCE.—

11 ‘‘(A) IN GENERAL.—The Director of Na12 tional Intelligence shall expeditiously carry out 

13 a thorough analysis of any threat to the na14 tional security of the United States of any cov15 ered transaction, including making requests for 

16 information to the Director of the Office of 

17 Foreign Assets Control within the Department 

18 of the Treasury and the Director of the Finan19 cial Crimes Enforcement Network. The Direc20 tor of National Intelligence also shall seek and 

21 incorporate the views of all affected or appro22 priate intelligence agencies. 

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

24 National Intelligence shall be provided no less 

25 than 30 days to complete the analysis required 
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1 under subparagraph (A), except in any instance 

2 described in paragraph (2)(A)(iii). 

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

4 The Director of National Intelligence shall not 

5 be a member of the Committee and shall serve 

6 no policy role with the Committee other than to 

7 provide analysis under subparagraph (A) in 

8 connection with a covered transaction. 

9 ‘‘(5) RESUBMITTALS OF NOTICE AND REQUESTS

10 FOR ADDITIONAL REVIEW OR INVESTIGATION.—

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

12 subsection shall be construed as prohibiting any 

13 party to a covered transaction from—

14 ‘‘(i) submitting additional information 

15 concerning the transaction, including any 

16 proposed restructuring of the transaction 

17 or any modifications to any agreements in 

18 connection with the transaction, while any 

19 review or investigation of the transaction is 

20 on-going; or 

21 ‘‘(ii) requesting a review or investiga22 tion of the transaction after any previous 

23 review or investigation of the same or a 

24 similar transaction has become final if in25 formation material to the prior review or 
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1 investigation and not previously submitted 

2 to the Committee becomes known or if any 

3 material change in circumstances to the 

4 covered transaction has occurred since the 

5 review or investigation. 

6 ‘‘(B) APPROVAL OF REQUEST.—In the 

7 case of a request referred to in subparagraph 

8 (A)(ii), the Committee shall determine by con9 sensus whether to grant a request. 

10 ‘‘(6) REGULATIONS.—Regulations prescribed 

11 under this section shall include standard procedures 

12 for—

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

14 or pending covered transaction to the Com15 mittee; 

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

17 proposed or pending covered transaction from 

18 review; and 

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

20 pending covered transaction that was previously 

21 withdrawn from review.’’. 
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1 SEC. 3. STATUTORY ESTABLISHMENT OF THE COMMITTEE 

2 ON FOREIGN INVESTMENT IN THE UNITED 

3 STATES. 

4 (a) IN GENERAL.—Section 721 of the Defense Pro5 duction Act of 1950 (50 U.S.C. App. 2170) is amended 

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

7 subsection: 

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

9 UNITED STATES.—

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

11 Foreign Investment in the United States established 

12 pursuant to Executive Order No. 11858 shall be a 

13 multi-agency committee to carry out this section and 

14 such other assignments as the President may des15 ignate. 

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

17 comprised of the following members or the designee 

18 of any such member: 

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

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

21 ‘‘(C) The Secretary of Commerce. 

22 ‘‘(D) The Secretary of Defense. 

23 ‘‘(E) The Secretary of State. 

24 ‘‘(F) The Attorney General. 

25 ‘‘(G) The Secretary of Energy. 
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1 ‘‘(H) The Chairman of the Council of Eco2 nomic Advisors. 

3 ‘‘(I) The United States Trade Representa4 tive. 

5 ‘‘(J) The Director of the Office of Manage6 ment and Budget. 

7 ‘‘(K) The Director of the National Eco8 nomic Council. 

9 ‘‘(L) The Director of the Office of Science 

10 and Technology Policy. 

11 ‘‘(M) The President’s Assistant for Na12 tional Security Affairs. 

13 ‘‘(N) Any other designee of the President 

14 from the Executive Office of the President. 

15 ‘‘(3) CHAIRPERSON; VICE CHAIRPERSONS.—The 

16 Secretary of the Treasury shall be the Chairperson 

17 of the Committee. The Secretary of Homeland Secu18 rity and the Secretary of Commerce shall be the Vice 

19 Chairpersons of the Committee. 

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

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

22 involve the heads of such other Federal departments, 

23 agencies, and independent establishments in any re24 view or investigation under subsection (b) as the 

25 Chairperson, after consulting with the Vice Chair-
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1 persons, determines to be appropriate on the basis 

2 of the facts and circumstances of the transaction 

3 under investigation (or the designee of any such de4 partment or agency head). 

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

6 upon the direction of the President or upon the call 

7 of the Chairperson of the Committee without regard 

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

9 otherwise applicable). 

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

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

12 of carrying out this section—

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

14 take such testimony, receive such evidence, ad15 minister such oaths; and 

16 ‘‘(B) require the attendance and testimony 

17 of such witnesses and the production of such 

18 books, records, correspondence, memoranda, pa19 pers, and documents as the Chairperson of the 

20 Committee may determine advisable. 

21 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

22 There are authorized to be appropriated to the Sec23 retary of the Treasury for each of fiscal years 2007, 

24 2008, 2009, and 2010, expressly and solely for the 
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1 operations of the Committee that are conducted by 

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

3 (b) TECHNICAL AND CONFORMING AMENDMENT.—

4 The first sentence of section 721(c) of the Defense Pro5 duction Act of 1950 (50 U.S.C. App. 2170(c)) is amend6 ed—

7 (1) by striking ‘‘material filed with’’ and insert8 ing ‘‘material, including proprietary business infor9 mation, filed with, or testimony presented to,’’; and 

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

11 2nd place such term appears and inserting ‘‘, docu12 mentary material, or testimony’’. 

13 SEC. 4. ADDITIONAL FACTORS REQUIRED TO BE CONSID14 ERED. 

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

16 (50 U.S.C. App. 2170(f)) is amended—

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

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

19 ‘‘shall’’; and 

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

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

22 (4); 

23 (3) by striking the period at the end of para24 graph (5) and inserting a semicolon; and 
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1 (4) by adding at the end the following new 

2 paragraphs: 

3 ‘‘(6) whether the covered transaction has a se4 curity-related impact on critical infrastructure in the 

5 United States; 

6 ‘‘(7) whether the covered transaction is a for7 eign government-controlled transaction; and 

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

9 President’s designee may determine to be appro10 priate, generally or in connection with a specific re11 view or investigation.’’. 

12 SEC. 5. NONWAIVER OF SOVEREIGN IMMUNITY. 

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

14 1950 (50 U.S.C. App. 2170(d)) is amended by adding at 

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

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

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

18 of actions taken under this section after a covered trans19 action has been consummated if the party did not submit 

20 a written notice of the transaction to the Chairperson of 

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

22 until the completion of any review or investigation under 

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

24 to in this subsection, before consummating the trans25 action.’’. 
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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 

4 (50 U.S.C. App. 2170) is amended by inserting after sub5 section (k) (as amended by section 3 of this Act) the fol6 lowing new subsection: 

7 ‘‘(l) MITIGATION, TRACKING, AND

8 POSTCONSUMMATION MONITORING AND ENFORCE9 MENT.—

10 ‘‘(1) MITIGATION.—

11 ‘‘(A) IN GENERAL.—The Committee or any 

12 agency designated by the Chairperson and Vice 

13 Chairpersons may negotiate, enter into or im14 pose, and enforce any agreement or condition 

15 with any party to a covered transaction in order 

16 to mitigate any threat to the national security 

17 of the United States. 

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

19 Any agreement entered into or condition im20 posed under subparagraph (A) shall be based 

21 on a risk-based analysis of the threat to na22 tional security of the covered transaction. 

23 ‘‘(2) TRACKING AUTHORITY FOR WITHDRAWN

24 NOTICES.—

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

26 of a covered transaction that was submitted to 
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1 the Committee under this section is withdrawn 

2 before any review or investigation by the Com3 mittee under subsection (b) is completed, the 

4 Committee shall establish, as appropriate—

5 ‘‘(i) interim protections to address 

6 specific concerns with such transaction 

7 that have been raised in connection with 

8 any such review or investigation pending 

9 any resubmission of any written notice 

10 under this section with respect to such 

11 transaction and further action by the 

12 President under this section; 

13 ‘‘(ii) specific timeframes for resubmit14 ting any such written notice; and 

15 ‘‘(iii) a process for tracking any ac16 tions that may be taken by any party to 

17 the transaction, in connection with the 

18 transaction, before the notice referred to in 

19 clause (ii) is resubmitted. 

20 ‘‘(B) DESIGNATION OF AGENCY.—The 

21 Committee may designate an appropriate Fed22 eral department or agency, other than any enti23 ty of the intelligence community (as defined in 

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

25 agency to carry out the requirements of sub-
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1 paragraph (A) with respect to any covered 

2 transaction that is subject to such subpara3 graph. 

4 ‘‘(3) NEGOTIATION, MODIFICATION, MONI5 TORING, AND ENFORCEMENT.—

6 ‘‘(A) DESIGNATION OF AGENCY.—The 

7 Committee shall designate a Federal depart8 ment or agency as the lead agency to negotiate, 

9 modify, monitor, and enforce any agreement en10 tered into or condition imposed under para11 graph (1) with respect to a covered transaction 

12 based on the expertise with and knowledge of 

13 the issues related to such transaction on the 

14 part of the designated department or agency. 

15 ‘‘(B) REPORTING BY DESIGNATED AGEN16 CY.—

17 ‘‘(i) IMPLEMENTATION REPORTS.—

18 The Federal department or agency des19 ignated by the Committee as a lead agency 

20 under subparagraph (A) in connection with 

21 any agreement entered into or condition 

22 imposed under paragraph (1) with respect 

23 to a covered transaction shall—

24 ‘‘(I) provide periodic reports to 

25 the Chairperson and Vice Chair-
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1 persons of the Committee on the im2 plementation of such agreement or 

3 condition; and 

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

5 party to the covered transaction to re6 port to the head of such department 

7 or agency (or the designee of such de8 partment or agency head) on the im9 plementation or any material change 

10 in circumstances. 

11 ‘‘(ii) MODIFICATION REPORTS.—The 

12 Federal department or agency designated 

13 by the Committee as a lead agency under 

14 subparagraph (A) in connection with any 

15 agreement entered into or condition im16 posed with respect to a covered transaction 

17 shall—

18 ‘‘(I) provide periodic reports to 

19 the Chairperson and Vice Chair20 persons of the Committee on any 

21 modification to any such agreement or 

22 condition imposed with respect to the 

23 transaction; and 

24 ‘‘(II) ensure that any significant 

25 modification to any such agreement or 
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1 condition is reported to the Director 

2 of National Intelligence and to any 

3 other Federal department or agency 

4 that may have a material interest in 

5 such modification.’’. 

6 SEC. 7. INCREASED OVERSIGHT BY THE CONGRESS. 

7 (a) REPORT ON ACTIONS.—Section 721(g) of the De8 fense Production Act of 1950 (50 U.S.C. App. 2170) is 

9 amended to read as follows: 

10 ‘‘(g) REPORTS TO THE CONGRESS.—

11 ‘‘(1) REPORTS ON COMPLETED COMMITTEE IN12 VESTIGATIONS.—

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

14 after the completion of a Committee investiga15 tion of a covered transaction under subsection 

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

17 to take any action authorized under subsection 

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

19 end of 15-day period referred to in subsection 

20 (d), the Chairperson or a Vice Chairperson of 

21 the Committee shall submit a written report on 

22 the findings or actions of the Committee with 

23 respect to such investigation, the determination 

24 of whether or not to take action under sub25 section (d), an explanation of the findings 
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1 under subsection (e), and the factors considered 

2 under subsection (f), with respect to such trans3 action, to—

4 ‘‘(i) the Majority Leader and the Mi5 nority Leader of the Senate; 

6 ‘‘(ii) the Speaker and the Minority 

7 Leader of the House of Representatives; 

8 and 

9 ‘‘(iii) the chairman and ranking mem10 ber of each committee of the House of 

11 Representatives and the Senate with juris12 diction over any aspect of the covered 

13 transaction and its possible effects on na14 tional security, including the Committee on 

15 International Relations, the Committee on 

16 Financial Services, and the Committee on 

17 Energy and Commerce of the House of 

18 Representatives. 

19 ‘‘(B) NOTICE AND BRIEFING REQUIRE20 MENT.—If a written request for a briefing on a 

21 covered transaction is submitted to the Com22 mittee by any Senator or Member of Congress 

23 who receives a report on the transaction under 

24 subparagraph (A), the Chairperson or a Vice 

25 Chairperson (or such other person as the Chair-
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1 person or a Vice Chairperson may designate) 

2 shall provide 1 classified briefing to each House 

3 of the Congress from which any such briefing 

4 request originates in a secure facility of appro5 priate size and location that shall be open only 

6 to the Majority Leader and the Minority Leader 

7 of the Senate, the Speaker and the Minority 

8 Leader of the House of Representatives, (as the 

9 case may be) the chairman and ranking mem10 ber of each committee of the House of Rep11 resentatives or the Senate (as the case may be) 

12 with jurisdiction over any aspect of the covered 

13 transaction and its possible effects on national 

14 security, including the Committee on Inter15 national Relations, the Committee on Financial 

16 Services, and the Committee on Energy and 

17 Commerce of the House of Representatives, and 

18 appropriate staff members who have security 

19 clearance. 

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

21 ‘‘(A) IN GENERAL.—The disclosure of in22 formation under this subsection shall be con23 sistent with the requirements of subsection (c). 

24 Members of Congress and staff of either House 

25 or any committee of the Congress shall be sub-
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1 ject to the same limitations on disclosure of in2 formation as are applicable under such sub3 section. 

4 ‘‘(B) PROPRIETARY INFORMATION.—Pro5 prietary information which can be associated 

6 with a particular party to a covered transaction 

7 shall be furnished in accordance with subpara8 graph (A) only to a committee of the Congress 

9 and only when the committee provides assur10 ances of confidentiality, unless such party oth11 erwise consents in writing to such disclosure.’’. 

12 (b) SEMI-ANNUAL REPORT.—Section 721 of the De13 fense Production Act of 1950 (50 U.S.C. App. 2170) is 

14 amended by inserting after subsection (l) (as added by sec15 tion 6 of this Act) the following new subsection: 

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

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

18 Committee shall transmit a report to the chairman 

19 and ranking member of each committee of the 

20 House of Representatives and the Senate with juris21 diction over any aspect of the report, including the 

22 Committee on International Relations, the Com23 mittee on Financial Services, and the Committee on 

24 Energy and Commerce of the House of Representa25 tives, before January 31 and July 31 of each year 
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1 on all the reviews and investigations of covered 

2 transactions conducted under subsection (b) during 

3 the 6-month period covered by the report. 

4 ‘‘(2) CONTENTS OF REPORT RELATING TO COV5 ERED TRANSACTIONS.—The report under paragraph 

6 (1) shall contain the following information with re7 spect to each covered transaction: 

8 ‘‘(A) A list of all notices filed and all re9 views or investigations conducted during the pe10 riod with basic information on each party to the 

11 transaction, the nature of the business activities 

12 or products of all pertinent persons, along with 

13 information about the status of the review or 

14 investigation, information on any withdrawal 

15 from the process, any rollcall votes by the Com16 mittee under this section, any extension of time 

17 for any investigation, and any presidential deci18 sion or action under this section. 

19 ‘‘(B) Specific, cumulative, and, as appro20 priate, trend information on the numbers of fil21 ings, investigations, withdrawals, and presi22 dential decisions or actions under this section. 

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

24 trend information on the business sectors in25 volved in the filings which have been made, and 
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1 the countries from which the investments have 

2 originated. 

3 ‘‘(D) Information on whether companies 

4 that withdrew notices to the Committee in ac5 cordance with subsection (b)(1)(C)(ii) have 

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

7 abandoned the transaction. 

8 ‘‘(E) The types of security arrangements 

9 and conditions the Committee has used to miti10 gate national security concerns about a trans11 action. 

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

13 adverse effects of covered transactions on the 

14 national security or critical infrastructure of the 

15 United States that the Committee will take into 

16 account in its deliberations during the period 

17 before delivery of the next such report, to the 

18 extent possible. 

19 ‘‘(3) CONTENTS OF REPORT RELATING TO

20 CRITICAL TECHNOLOGIES.—

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

22 Congress in its oversight responsibilities with 

23 respect to this section, the President and such 

24 agencies as the President shall designate shall 
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1 include in the semi-annual report submitted 

2 under paragraph (1) the following: 

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

4 credible evidence of a coordinated strategy 

5 by 1 or more countries or companies to ac6 quire United States companies involved in 

7 research, development, or production of 

8 critical technologies for which the United 

9 States is a leading producer. 

10 ‘‘(ii) An evaluation of whether there 

11 are industrial espionage activities directed 

12 or directly assisted by foreign governments 

13 against private United States companies 

14 aimed at obtaining commercial secrets re15 lated to critical technologies. 

16 ‘‘(B) CRITICAL TECHNOLOGIES DE17 FINED.—For purposes of this paragraph, the 

18 term ‘critical technologies’ means technologies 

19 identified under title VI of the National Science 

20 and Technology Policy, Organization, and Pri21 orities Act of 1976 or other critical technology, 

22 critical components, or critical technology items 

23 essential to national defense or national security 

24 identified pursuant to this section. 
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1 ‘‘(C) RELEASE OF UNCLASSIFIED

2 STUDY.—That portion of the semi-annual re3 port under paragraph (1) that is required by 

4 this paragraph may be classified. An unclassi5 fied version of that portion of the report shall 

6 be made available to the public.’’. 

7 (c) INVESTIGATION BY INSPECTOR GENERAL.—

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

9 the Department of the Treasury shall conduct an 

10 independent investigation to determine all of the 

11 facts and circumstances concerning each failure of 

12 the Department of the Treasury to make any report 

13 to the Congress that was required under section 

14 721(k) of the Defense Production Act of 1950 (as 

15 in effect before the date of the enactment of this 

16 Act). 

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

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

19 the enactment of this Act, the Inspector General of 

20 the Department of the Treasury shall submit a re21 port to the chairman and ranking member of each 

22 committee of the House of Representatives and the 

23 Senate with jurisdiction over any aspect of the re24 port, including the Committee on International Rela25 tions, the Committee on Financial Services, and the 
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1 Committee on Energy and Commerce of the House 

2 of Representatives, on the investigation under para3 graph (1) containing the findings and conclusions of 

4 the Inspector General. 

5 (d) STUDY AND REPORT.—

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

7 120-day period beginning on the date of the enact8 ment of this Act, the Secretary of the Treasury, in 

9 consultation with the Secretary of State and the 

10 Secretary of Commerce, shall conduct a study on in11 vestments in the United States, especially invest12 ments in critical infrastructure and industries affect13 ing national security, by—

14 (A) foreign governments, entities controlled 

15 by or acting on behalf of a foreign government, 

16 or persons of foreign countries which comply 

17 with any boycott of Israel; or 

18 (B) foreign governments, entities con19 trolled by or acting on behalf of a foreign gov20 ernment, or persons of foreign countries which 

21 do not ban organizations designated by the Sec22 retary of State as foreign terrorist organiza23 tions. 

24 (2) REPORT.—Before the end of the 30-day pe25 riod beginning upon completion of the study under 
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1 paragraph (1) or in the next semi-annual report 

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

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

4 of the Treasury shall submit a report to the Con5 gress, for transmittal to all appropriate committees 

6 of the Senate and the House of Representatives, 

7 containing the findings and conclusions of the Sec8 retary with respect to the study, together with an 

9 analysis of the effects of such investment on the na10 tional security of the United States and on any ef11 forts to address those effects. 

12 SEC. 8. CERTIFICATION OF NOTICES AND ASSURANCES. 

13 Section 721 of the Defense Production Act of 1950 

14 (50 U.S.C. App. 2170) is amended by inserting after sub15 section (m) (as added by section 7(b) of this Act) the fol16 lowing new subsection: 

17 ‘‘(n) CERTIFICATION OF NOTICES AND ASSUR18 ANCES.—Each notice required to be submitted, by a party 

19 to a covered transaction, to the President or the Presi20 dent’s designee under this section and regulations pre21 scribed under such section, and any information submitted 

22 by any such party in connection with any action for which 

23 a report is required pursuant to paragraph (3)(B)(ii) of 

24 subsection (l) with respect to the implementation of any 

25 mitigation agreement or condition described in paragraph 
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1 (1)(A) of such subsection, or any material change in cir2 cumstances, shall be accompanied by a written statement 

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

4 required to submit such notice or information certifying 

5 that, to the best of the person’s knowledge and belief—

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

7 complies with the requirements of this section or 

8 such regulation, agreement, or condition; and 

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

10 complete in all material respects.’’. 

11 SEC. 9. REGULATIONS. 

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

13 1950 (50 U.S.C. App. 2170(h)) is amended to read as 

14 follows: 

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

16 issuance of regulations to carry out this section. Such reg17 ulations shall, to the extent possible, minimize paperwork 

18 burdens and shall to the extent possible coordinate report19 ing requirements under this section with reporting re20 quirements under any other provision of Federal law.’’. 

21 SEC. 10. EFFECT ON OTHER LAW. 

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

23 (50 U.S.C. App. 2170(i)) is amended to read as follows: 

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

25 section shall be construed as altering or affecting any 
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1 other authority, process, regulation, investigation, enforce2 ment measure, or review provided by or established under 

3 any other provision of Federal law, including the Inter4 national Emergency Economic Powers Act, or any other 

5 authority of the President or the Congress under the Con6 stitution of the United States.’’.

Passed the House of Representatives July 26, 2006. 

Attest:

Clerk.