110TH CONGRESS 

1ST SESSION H. R. 556

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 2007’’. 

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 of the transaction on 

22 the national security 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.—Subject to subparagraph (F), the Presi8 dent, the Committee, or any member acting on 

9 behalf of the Committee may move to initiate a 

10 review under subparagraph (A) of—

11 ‘‘(i) any covered transaction; 

12 ‘‘(ii) any covered transaction that has 

13 previously been reviewed or investigated 

14 under this section, if any party to the 

15 transaction submitted false or misleading 

16 material information to the Committee in 

17 connection with the review or investigation 

18 or omitted material information, including 

19 material documents, from information sub20 mitted to the Committee; or 

21 ‘‘(iii) any covered transaction that has 

22 previously been reviewed or investigated 

23 under this section, if any party to the 

24 transaction or the entity resulting from 

25 consummation of the transaction inten-
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1 tionally materially breaches a mitigation 

2 agreement or condition described in sub3 section (l)(1)(A), and—

4 ‘‘(I) such breach is certified by 

5 the lead department or agency moni6 toring and enforcing such agreement 

7 or condition as an intentional material 

8 breach; and 

9 ‘‘(II) such department or agency 

10 certifies that there is no other remedy 

11 or enforcement tool available to ad12 dress such breach. 

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

14 paragraph shall be completed before the end of 

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

16 receipt of written notice under subparagraph 

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

18 the date of the initiation of the review in ac19 cordance with a motion under subparagraph 

20 (D). 

21 ‘‘(F) LIMIT ON DELEGATION OF CERTAIN

22 AUTHORITY.—The authority of the Committee 

23 or any member of the Committee to initiate a 

24 review under subparagraph (D) may not be del25 egated to any person other than the Deputy 
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1 Secretary or an appropriate Under Secretary of 

2 the department or agency represented on the 

3 committee or by such member (or by a person 

4 holding an equivalent position to a Deputy Sec5 retary or Under Secretary). 

6 ‘‘(2) NATIONAL SECURITY INVESTIGATIONS.—

7 ‘‘(A) IN GENERAL.—In each case in 

8 which—

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

10 under paragraph (1) results in a deter11 mination that—

12 ‘‘(I) the transaction threatens to 

13 impair the national security of the 

14 United States and that threat has not 

15 been mitigated during or prior to the 

16 review of a covered transaction under 

17 paragraph (1); or 

18 ‘‘(II) the transaction is a foreign 

19 government-controlled transaction; 

20 ‘‘(ii) a roll call vote pursuant to para21 graph (3)(A) in connection with a review 

22 under paragraph (1) of any covered trans23 action results in at least 1 vote by a Com24 mittee member against approving the 

25 transaction; or 
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1 ‘‘(iii) the Director of National Intel2 ligence identifies particularly complex intel3 ligence concerns that could threaten to im4 pair the national security of the United 

5 States and Committee members were not 

6 able to develop and agree upon measures 

7 to mitigate satisfactorily those threats dur8 ing the initial review period under para9 graph (1), 

10 the President, acting through the Committee, 

11 shall immediately conduct an investigation of 

12 the effects of the transaction on the national se13 curity of the United States and take any nec14 essary actions in connection with the trans15 action to protect the national security of the 

16 United States. 

17 ‘‘(B) TIMING.—

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

19 under subparagraph (A) shall be completed 

20 before the end of the 45-day period begin21 ning on the date of the investigation com22 menced. 

23 ‘‘(ii) EXTENSIONS OF TIME.—The pe24 riod established under subparagraph (B) 

25 for any investigation of a covered trans-
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1 action may be extended with respect to any 

2 particular investigation by the President or 

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

4 members of the Committee involved in the 

5 investigation by the amount of time speci6 fied by the President or the Committee at 

7 the time of the extension, not to exceed 45 

8 days, as necessary to collect and fully 

9 evaluate information relating to—

10 ‘‘(I) the covered transaction or 

11 parties to the transaction; and 

12 ‘‘(II) any effect of the trans13 action that could threaten to impair 

14 the national security of the United 

15 States. 

16 ‘‘(C) EXCEPTION.—Notwithstanding sub17 paragraph (A)(i)(II), an investigation of a for18 eign government-controlled transaction shall not 

19 be required under this paragraph if the Sec20 retary of the Treasury, the Secretary of Home21 land Security, and the Secretary of Commerce 

22 determine, on the basis of the review of the 

23 transaction under paragraph (1), that the 

24 transaction will not affect the national security 

25 of the United States and no agreement or con-
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1 dition is required, with respect to the trans2 action, to mitigate any threat to the national 

3 security (and such authority of each such Sec4 retary may not be delegated to any person other 

5 than the Deputy Secretary of the Treasury, of 

6 Homeland Security, or of Commerce, respec7 tively). 

8 ‘‘(3) APPROVAL OF CHAIRPERSON AND VICE

9 CHAIRPERSONS REQUIRED.—

10 ‘‘(A) IN GENERAL.—A review or investiga11 tion under this subsection of a covered trans12 action shall not be treated as final or complete 

13 until the results of such review or investigation 

14 are approved by a majority of the members of 

15 the Committee in a roll call vote and signed by 

16 the Secretary of the Treasury, the Secretary of 

17 Homeland Security, and the Secretary of Com18 merce (and such authority of each such Sec19 retary may not be delegated to any person other 

20 than the Deputy Secretary or an appropriate 

21 Under Secretary of the Treasury, of Homeland 

22 Security, or of Commerce, respectively). 

23 ‘‘(B) ADDITIONAL ACTION REQUIRED IN

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

25 vote pursuant to subparagraph (A) in connec-
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1 tion with an investigation under paragraph (2) 

2 of any foreign government-controlled trans3 action in which there is at least 1 vote by a 

4 Committee member against approving the 

5 transaction, the investigation shall not be treat6 ed as final or complete until the findings and 

7 report resulting from such investigation are 

8 signed by the President (in addition to the 

9 Chairperson and the Vice Chairpersons of the 

10 Committee under subparagraph (A)). 

11 ‘‘(C) PRESIDENTIAL ACTION REQUIRED IN

12 CERTAIN CASES.—In the case of any covered 

13 transaction in which any party to the trans14 action is—

15 ‘‘(i) a person of a country the govern16 ment of which the Secretary of State has 

17 determined, for purposes of section 6(j) of 

18 the Export Administration Act of 1979 (as 

19 continued in effect pursuant to the Inter20 national Emergency Economic Powers 

21 Act), section 40 of the Arms Export Con22 trol Act, section 620A of the Foreign As23 sistance Act of 1961, or other provision of 

24 law, is a government that has repeatedly 
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1 provided support for acts of international 

2 terrorism; 

3 ‘‘(ii) a government described in clause 

4 (i); or 

5 ‘‘(iii) person controlled, directly or in6 directly, by any such government, 

7 a review or investigation under this subsection 

8 of such covered transaction shall not be treated 

9 as final or complete until the results of such re10 view or investigation are approved and signed 

11 by the President. 

12 ‘‘(4) ANALYSIS BY DIRECTOR OF NATIONAL IN13 TELLIGENCE.—

14 ‘‘(A) IN GENERAL.—The Director of Na15 tional Intelligence shall expeditiously carry out 

16 a thorough analysis of any threat to the na17 tional security of the United States of any cov18 ered transaction, including making requests for 

19 information to the Director of the Office of 

20 Foreign Assets Control within the Department 

21 of the Treasury and the Director of the Finan22 cial Crimes Enforcement Network. The Direc23 tor of National Intelligence also shall seek and 

24 incorporate the views of all affected or appro25 priate intelligence agencies. 
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1 ‘‘(B) TIMING.—The Director of National 

2 Intelligence shall be provided adequate time to 

3 complete the analysis required under subpara4 graph (A), including any instance described in 

5 paragraph (2)(A)(iii). 

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

7 The Director of National Intelligence shall not 

8 be a member of the Committee and shall serve 

9 no policy role with the Committee other than to 

10 provide analysis under subparagraph (A) in 

11 connection with a covered transaction. 

12 ‘‘(5) SUBMISSION OF ADDITIONAL INFORMA13 TION.—No provision of this subsection shall be con14 strued as prohibiting any party to a covered trans15 action from submitting additional information con16 cerning the transaction, including any proposed re17 structuring of the transaction or any modifications 

18 to any agreements in connection with the trans19 action, while any review or investigation of the 

20 transaction is on-going. 

21 ‘‘(6) REGULATIONS.—Regulations prescribed 

22 under this section shall include standard procedures 

23 for—
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1 ‘‘(A) submitting any notice of a proposed 

2 or pending covered transaction to the Com3 mittee; 

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

5 proposed or pending covered transaction from 

6 review; and 

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

8 pending covered transaction that was previously 

9 withdrawn from review.’’. 

10 SEC. 3. STATUTORY ESTABLISHMENT OF THE COMMITTEE 

11 ON FOREIGN INVESTMENT IN THE UNITED 

12 STATES. 

13 (a) IN GENERAL.—Section 721 of the Defense Pro14 duction Act of 1950 (50 U.S.C. App. 2170) is amended 

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

16 subsection: 

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

18 UNITED STATES.—

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

20 Foreign Investment in the United States established 

21 pursuant to Executive Order No. 11858 shall be a 

22 multi-agency committee to carry out this section and 

23 such other assignments as the President may des24 ignate. 
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1 ‘‘(2) MEMBERSHIP.—The Committee shall be 

2 comprised of the following members or the designee 

3 of any such member: 

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

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

6 ‘‘(C) The Secretary of Commerce. 

7 ‘‘(D) The Secretary of Defense. 

8 ‘‘(E) The Secretary of State. 

9 ‘‘(F) The Attorney General. 

10 ‘‘(G) The Secretary of Energy. 

11 ‘‘(H) The Chairman of the Council of Eco12 nomic Advisors. 

13 ‘‘(I) The United States Trade Representa14 tive. 

15 ‘‘(J) The Director of the Office of Manage16 ment and Budget. 

17 ‘‘(K) The Director of the National Eco18 nomic Council. 

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

20 and Technology Policy. 

21 ‘‘(M) The President’s Assistant for Na22 tional Security Affairs. 

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

24 from the Executive Office of the President. 
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1 ‘‘(3) CHAIRPERSON; VICE CHAIRPERSONS.—The 

2 Secretary of the Treasury shall be the Chairperson 

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

5 Chairpersons of the Committee. 

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

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

8 involve the heads of such other Federal departments, 

9 agencies, and independent establishments in any re10 view or investigation under subsection (b) as the 

11 Chairperson, after consulting with the Vice Chair12 persons, determines to be appropriate on the basis 

13 of the facts and circumstances of the transaction 

14 under investigation (or the designee of any such de15 partment or agency head). 

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

17 upon the direction of the President or upon the call 

18 of the Chairperson of the Committee without regard 

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

20 otherwise applicable). 

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

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

23 of carrying out this section—
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1 ‘‘(A) sit and act at such times and places, 

2 take such testimony, receive such evidence, ad3 minister such oaths; and 

4 ‘‘(B) require the attendance and testimony 

5 of such witnesses and the production of such 

6 books, records, correspondence, memoranda, pa7 pers, and documents as the Chairperson of the 

8 Committee may determine advisable. 

9 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

10 There are authorized to be appropriated to the Sec11 retary of the Treasury for each of fiscal years 2008, 

12 2009, 2010, and 2011 expressly and solely for the 

13 operations of the Committee that are conducted by 

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

15 (b) TECHNICAL AND CONFORMING AMENDMENT.—

16 The first sentence of section 721(c) of the Defense Pro17 duction Act of 1950 (50 U.S.C. App. 2170(c)) is amend18 ed—

19 (1) by striking ‘‘material filed with’’ and insert20 ing ‘‘material, including proprietary business infor21 mation, filed with, or testimony presented to,’’; and 

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

23 second place such term appears and inserting ‘‘, doc24 umentary material, or testimony’’. 
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1 SEC. 4. ADDITIONAL FACTORS REQUIRED TO BE CONSID2 ERED. 

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

4 (50 U.S.C. App. 2170(f)) is amended—

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

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

7 ‘‘shall’’; and 

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

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

10 (4); 

11 (3) by striking the period at the end of para12 graph (5) and inserting a semicolon; and 

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

14 paragraphs: 

15 ‘‘(6) whether the covered transaction has a se16 curity-related impact on critical infrastructure in the 

17 United States; 

18 ‘‘(7) the potential effects of the covered trans19 action on the efforts of the United States to curtail 

20 human smuggling (and such term, for purposes of 

21 this paragraph, means any act constituting a viola22 tion of section 274(a) of the Immigration and Na23 tionality Act) and to curtail drug smuggling with re24 gard to any country which is not described in para25 graphs (1) and (2) of section 1003(a) of the Con26 trolled Substances Import and Export Act; 
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1 ‘‘(8) whether the covered transaction is a for2 eign government-controlled transaction; and 

3 ‘‘(9) such other factors as the President or the 

4 President’s designee may determine to be appro5 priate, generally or in connection with a specific re6 view or investigation.’’. 

7 SEC. 5. NONWAIVER OF SOVEREIGN IMMUNITY. 

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

9 1950 (50 U.S.C. App. 2170(d)) is amended by adding at 

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

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

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

13 of actions taken under this section after a covered trans14 action has been consummated if the party did not submit 

15 a written notice of the transaction to the Chairperson of 

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

17 until the completion of any review or investigation under 

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

19 to in this subsection, before consummating the trans20 action.’’. 

21 SEC. 6. MITIGATION, TRACKING, AND POST-CONSUMMA22 TION MONITORING AND ENFORCEMENT. 

23 Section 721 of the Defense Production Act of 1950 

24 (50 U.S.C. App. 2170) is amended by inserting after sub-
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1 section (k) (as amended by section 3 of this Act) the fol2 lowing new subsection: 

3 ‘‘(l) MITIGATION, TRACKING, AND

4 POSTCONSUMMATION MONITORING AND ENFORCE5 MENT.—

6 ‘‘(1) MITIGATION.—

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

8 agency designated by the Chairperson and Vice 

9 Chairpersons may, on behalf of the Committee, 

10 negotiate, enter into or impose, and enforce any 

11 agreement or condition with any party to a cov12 ered transaction in order to mitigate any threat 

13 to the national security of the United States 

14 that arises as a result of the transaction. 

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

16 Any agreement entered into or condition im17 posed under subparagraph (A) shall be based 

18 on a risk-based analysis, conducted by the Com19 mittee, of the threat to national security of the 

20 covered transaction. 

21 ‘‘(2) TRACKING AUTHORITY FOR WITHDRAWN

22 NOTICES.—

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

24 of a covered transaction that was submitted to 

25 the Committee under this section is withdrawn 
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1 before any review or investigation by the Com2 mittee under subsection (b) is completed, the 

3 Committee shall establish, as appropriate—

4 ‘‘(i) interim protections to address 

5 specific concerns with such transaction 

6 that have been raised in connection with 

7 any such review or investigation pending 

8 any resubmission of any written notice 

9 under this section with respect to such 

10 transaction and further action by the 

11 President under this section; 

12 ‘‘(ii) specific timeframes for resubmit13 ting any such written notice; and 

14 ‘‘(iii) a process for tracking any ac15 tions that may be taken by any party to 

16 the transaction, in connection with the 

17 transaction, before the notice referred to in 

18 clause (ii) is resubmitted. 

19 ‘‘(B) DESIGNATION OF AGENCY.—The 

20 Committee may designate 1 or more appro21 priate Federal departments or agencies, other 

22 than any entity of the intelligence community 

23 (as defined in the National Security Act of 

24 1947), as a lead agency to carry out, on behalf 

25 of the Committee, the requirements of subpara-
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1 graph (A) with respect to any covered trans2 action that is subject to such subparagraph. 

3 ‘‘(3) NEGOTIATION, MODIFICATION, MONI4 TORING, AND ENFORCEMENT.—

5 ‘‘(A) DESIGNATION OF AGENCY.—The 

6 Committee shall designate 1 or more Federal 

7 departments or agencies as the lead agency to 

8 negotiate, modify, monitor, and enforce, on be9 half of the Committee, any agreement entered 

10 into or condition imposed under paragraph (1) 

11 with respect to a covered transaction based on 

12 the expertise with and knowledge of the issues 

13 related to such transaction on the part of the 

14 designated department or agency. 

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

17 ‘‘(i) IMPLEMENTATION REPORTS.—

18 Each 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) report, as appropriate but 

25 not less than once in each 6-month 
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1 period, to the Chairperson and Vice 

2 Chairpersons of the Committee on the 

3 implementation of such agreement or 

4 condition; and 

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

6 party to the covered transaction to re7 port to the head of such department 

8 or agency (or the designee of such de9 partment or agency head) on the im10 plementation or any material change 

11 in circumstances. 

12 ‘‘(ii) MODIFICATION REPORTS.—Any 

13 Federal department or agency designated 

14 by the Committee as a lead agency under 

15 subparagraph (A) in connection with any 

16 agreement entered into or condition im17 posed with respect to a covered transaction 

18 shall—

19 ‘‘(I) provide periodic reports to 

20 the Chairperson and Vice Chair21 persons of the Committee on any 

22 modification to any such agreement or 

23 condition imposed with respect to the 

24 transaction; and 
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1 ‘‘(II) ensure that any significant 

2 modification to any such agreement or 

3 condition is reported to the Director 

4 of National Intelligence and to any 

5 other Federal department or agency 

6 that may have a material interest in 

7 such modification. 

8 ‘‘(iii) COMPLIANCE.—The Committee 

9 shall develop and agree upon methods for 

10 evaluating compliance with any agreement 

11 entered into or condition imposed with re12 spect to a covered transaction that will 

13 allow the Committee to adequately assure 

14 compliance without—

15 ‘‘(I) unnecessarily diverting Com16 mittee resources from assessing any 

17 new covered transaction for which a 

18 written notice has been filed pursuant 

19 to subsection (b)(1)(C), and if nec20 essary reaching a mitigation agree21 ment with or imposing a condition on 

22 a party to such covered transaction or 

23 any covered transaction for which a 

24 review has been reopened for any rea25 son; or 
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1 ‘‘(II) placing unnecessary bur2 dens on a party to a covered trans3 action.’’. 

4 SEC. 7. INCREASED OVERSIGHT BY THE CONGRESS. 

5 (a) REPORT ON ACTIONS.—Section 721(g) of the De6 fense Production Act of 1950 (50 U.S.C. App. 2170) is 

7 amended to read as follows: 

8 ‘‘(g) REPORTS TO THE CONGRESS.—

9 ‘‘(1) REPORTS ON COMPLETED COMMITTEE IN10 VESTIGATIONS.—

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

12 after the completion of a Committee investiga13 tion of a covered transaction under subsection 

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

15 to take any action authorized under subsection 

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

17 end of 15-day period referred to in subsection 

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

19 the Committee shall submit a written report on 

20 the findings or actions of the Committee with 

21 respect to such investigation, the determination 

22 of whether or not to take action under sub23 section (d), an explanation of the findings 

24 under subsection (e), and the factors considered 
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1 under subsection (f), with respect to such trans2 action, to—

3 ‘‘(i) the Majority Leader and the Mi4 nority Leader of the Senate; 

5 ‘‘(ii) the Speaker and the Minority 

6 Leader of the House of Representatives; 

7 ‘‘(iii) the chairman and ranking mem8 ber of each committee of the House of 

9 Representatives and the Senate with juris10 diction over any aspect of the covered 

11 transaction and its possible effects on na12 tional security, including, at a minimum, 

13 the Committee on Foreign Affairs, the 

14 Committee on Financial Services, and the 

15 Committee on Energy and Commerce of 

16 the House of Representatives; and 

17 ‘‘(iv) Senators representing States 

18 and Members of Congress representing 

19 congressional districts that would be sig20 nificantly affected by the covered trans21 action. 

22 ‘‘(B) NOTICE AND BRIEFING REQUIRE23 MENT.—If a written request for a briefing on a 

24 covered transaction, or on compliance with a 

25 mitigation agreement or condition imposed with 
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1 respect to such transaction, is submitted to the 

2 Committee by any Senator or Member of Con3 gress who receives a report on the transaction 

4 under subparagraph (A), the Chairperson or a 

5 Vice Chairperson (or such other person as the 

6 Chairperson or a Vice Chairperson may des7 ignate) shall provide 1 classified briefing to 

8 each House of the Congress from which any 

9 such briefing request originates in a secure fa10 cility of appropriate size and location that shall 

11 be open only to the Majority Leader and the 

12 Minority Leader of the Senate, the Speaker and 

13 the Minority Leader of the House of Represent14 atives, (as the case may be) the chairman and 

15 ranking member of each committee of the 

16 House of Representatives or the Senate (as the 

17 case may be) with jurisdiction over any aspect 

18 of the covered transaction and its possible ef19 fects on national security, including, at a min20 imum, the Committee on Foreign Affairs, the 

21 Committee on Financial Services, and the Com22 mittee on Energy and Commerce of the House 

23 of Representatives, and appropriate staff mem24 bers who have security clearance. 

25 ‘‘(2) APPLICATION OF OTHER PROVISION.—
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1 ‘‘(A) IN GENERAL.—The disclosure of in2 formation under this subsection shall be con3 sistent with the requirements of subsection (c). 

4 Members of Congress and staff of either House 

5 or any committee of the Congress shall be sub6 ject to the same limitations on disclosure of in7 formation as are applicable under such sub8 section. 

9 ‘‘(B) PROPRIETARY INFORMATION.—Pro10 prietary information which can be associated 

11 with a particular party to a covered transaction 

12 shall be furnished in accordance with subpara13 graph (A) only to a committee of the Congress 

14 and only when the committee provides assur15 ances of confidentiality, unless such party oth16 erwise consents in writing to such disclosure.’’. 

17 (b) ANNUAL REPORT.—Section 721 of the Defense 

18 Production Act of 1950 (50 U.S.C. App. 2170) is amend19 ed by inserting after subsection (l) (as added by section 

20 6 of this Act) the following new subsection: 

21 ‘‘(m) ANNUAL REPORT TO THE CONGRESS.—

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

23 Committee shall transmit a report to the chairman 

24 and ranking member of each committee of the 

25 House of Representatives and the Senate with juris-
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1 diction over any aspect of the report, including, at 

2 a minimum, the Committee on Foreign Affairs, the 

3 Committee on Financial Services, and the Com4 mittee on Energy and Commerce of the House of 

5 Representatives, before July 31 of each year on all 

6 the reviews and investigations of covered trans7 actions completed under subsection (b) during the 

8 12-month period covered by the report. 

9 ‘‘(2) CONTENTS OF REPORT RELATING TO COV10 ERED TRANSACTIONS.—The report under paragraph 

11 (1) shall contain the following information with re12 spect to each covered transaction: 

13 ‘‘(A) A list of all notices filed and all re14 views or investigations completed during the pe15 riod with basic information on each party to the 

16 transaction, the nature of the business activities 

17 or products of all pertinent persons, along with 

18 information about the status of the review or 

19 investigation, information on any withdrawal 

20 from the process, any rollcall votes by the Com21 mittee under this section, any extension of time 

22 for any investigation, and any presidential deci23 sion or action under this section. 

24 ‘‘(B) Specific, cumulative, and, as appro25 priate, trend information on the numbers of fil-
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1 ings, investigations, withdrawals, and presi2 dential decisions or actions under this section. 

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

4 trend information on the business sectors in5 volved in the filings which have been made, and 

6 the countries from which the investments have 

7 originated. 

8 ‘‘(D) Information on whether companies 

9 that withdrew notices to the Committee in ac10 cordance with subsection (b)(1)(C)(ii) have 

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

12 abandoned the transaction. 

13 ‘‘(E) The types of security arrangements 

14 and conditions the Committee has used to miti15 gate national security concerns about a trans16 action, including a discussion of the methods 

17 the Committee and any lead departments or 

18 agencies designated under subsection (l) are 

19 using to determine compliance with such ar20 rangements or conditions. 

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

22 adverse effects of covered transactions on the 

23 national security or critical infrastructure of the 

24 United States that the Committee will take into 

25 account in its deliberations during the period 
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•HR 556 EH

1 before delivery of the next such report, to the 

2 extent possible. 

3 ‘‘(3) CONTENTS OF REPORT RELATING TO

4 CRITICAL TECHNOLOGIES.—

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

6 Congress in its oversight responsibilities with 

7 respect to this section, the President and such 

8 agencies as the President shall designate shall 

9 include in the annual report submitted under 

10 paragraph (1) the following: 

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

12 credible evidence of a coordinated strategy 

13 by 1 or more countries or companies to ac14 quire United States companies involved in 

15 research, development, or production of 

16 critical technologies for which the United 

17 States is a leading producer. 

18 ‘‘(ii) An evaluation of whether there 

19 are industrial espionage activities directed 

20 or directly assisted by foreign governments 

21 against private United States companies 

22 aimed at obtaining commercial secrets re23 lated to critical technologies. 

24 ‘‘(B) CRITICAL TECHNOLOGIES DE25 FINED.—For purposes of this paragraph, the 
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1 term ‘critical technologies’ means technologies 

2 identified under title VI of the National Science 

3 and Technology Policy, Organization, and Pri4 orities Act of 1976 or other critical technology, 

5 critical components, or critical technology items 

6 essential to national defense or national security 

7 identified pursuant to this section. 

8 ‘‘(C) RELEASE OF UNCLASSIFIED

9 STUDY.—That portion of the annual report 

10 under paragraph (1) that is required by this 

11 paragraph may be classified. An unclassified 

12 version of that portion of the report shall be 

13 made available to the public.’’. 

14 (c) STUDY AND REPORT.—

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

16 120-day period beginning on the date of the enact17 ment of this Act and annually thereafter, the Sec18 retary of the Treasury, in consultation with the Sec19 retary of State and the Secretary of Commerce, shall 

20 conduct a study on investments in the United 

21 States, especially investments in critical infrastruc22 ture and industries affecting national security, by—

23 (A) foreign governments, entities controlled 

24 by or acting on behalf of a foreign government, 
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•HR 556 EH

1 or persons of foreign countries which comply 

2 with any boycott of Israel; or 

3 (B) foreign governments, entities con4 trolled by or acting on behalf of a foreign gov5 ernment, or persons of foreign countries which 

6 do not ban organizations designated by the Sec7 retary of State as foreign terrorist organiza8 tions. 

9 (2) REPORT.—Before the end of the 30-day pe10 riod beginning upon completion of each study under 

11 paragraph (1) or in the next annual report under 

12 section 721(m) of the Defense Production Act of 

13 1950 (as added by subsection (b)), the Secretary of 

14 the Treasury shall submit a report to the Congress, 

15 for transmittal to all appropriate committees of the 

16 Senate and the House of Representatives, containing 

17 the findings and conclusions of the Secretary with 

18 respect to the study described in paragraph (1), to19 gether with an analysis of the effects of such invest20 ment on the national security of the United States 

21 and on any efforts to address those effects. 

22 (d) INVESTIGATION BY INSPECTOR GENERAL.—

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

24 the Department of the Treasury shall conduct an 

25 independent investigation to determine all of the 
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•HR 556 EH

1 facts and circumstances concerning each failure of 

2 the Department of the Treasury to make any report 

3 to the Congress that was required under section 

4 721(k) of the Defense Production Act of 1950 (as 

5 in effect before the date of the enactment of this 

6 Act). 

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

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

9 the enactment of this Act, the Inspector General of 

10 the Department of the Treasury shall submit a re11 port to the chairman and ranking member of each 

12 committee of the House of Representatives and the 

13 Senate with jurisdiction over any aspect of the re14 port, including, at a minimum, the Committee on 

15 Foreign Affairs, the Committee on Financial Serv16 ices, and the Committee on Energy and Commerce 

17 of the House of Representatives, on the investigation 

18 under paragraph (1) containing the findings and 

19 conclusions of the Inspector General. 

20 SEC. 8. CERTIFICATION OF NOTICES AND ASSURANCES. 

21 Section 721 of the Defense Production Act of 1950 

22 (50 U.S.C. App. 2170) is amended by inserting after sub23 section (m) (as added by section 7(b) of this Act) the fol24 lowing new subsection: 
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•HR 556 EH

1 ‘‘(n) CERTIFICATION OF NOTICES AND ASSUR2 ANCES.—Each notice required to be submitted, by a party 

3 to a covered transaction, to the President or the Presi4 dent’s designee under this section and regulations pre5 scribed under such section, and any information submitted 

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

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

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

9 mitigation agreement or condition described in paragraph 

10 (1)(A) of such subsection, or any material change in cir11 cumstances, shall be accompanied by a written statement 

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

13 required to submit such notice or information certifying 

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

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

16 complies with the requirements of this section or 

17 such regulation, agreement, or condition; and 

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

19 complete in all material respects.’’. 

20 SEC. 9. REGULATIONS. 

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

22 1950 (50 U.S.C. App. 2170(h)) is amended to read as 

23 follows: 

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

25 issuance of regulations to carry out this section. Such reg-
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•HR 556 EH

1 ulations shall, to the extent possible, minimize paperwork 

2 burdens and shall to the extent possible coordinate report3 ing requirements under this section with reporting re4 quirements under any other provision of Federal law.’’. 

5 SEC. 10. EFFECT ON OTHER LAW. 

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

7 (50 U.S.C. App. 2170(i)) is amended to read as follows: 

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

9 section shall be construed as altering or affecting any 

10 other authority, process, regulation, investigation, enforce11 ment measure, or review provided by or established under 

12 any other provision of Federal law, including the Inter13 national Emergency Economic Powers Act, or any other 

14 authority of the President or the Congress under the Con15 stitution of the United States.’’. 

16 SEC. 11. EFFECTIVE DATE. 

17 The amendments made by this Act shall apply after 

18 the end of the 90-day period beginning on the date of the 

19 enactment of this Act. 

Passed the House of Representatives February 28, 

2007. 

Attest:

Clerk. 

110TH CONGRESS 

1ST SESSION H. R. 556

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