I 

110TH CONGRESS 

1ST SESSION H. R. 556 

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 

JANUARY 18, 2007 

Mrs. MALONEY of New York (for herself, Ms. PRYCE of Ohio, Mr. CROWLEY, 

Mr. BLUNT, Mr. FRANK of Massachusetts, Mr. BACHUS, Mr. GUTIERREZ, Mr. PAUL, Mr. ACKERMAN, Mr. BAKER, Ms. BEAN, Mrs. BIGGERT, 

Mr. CLEAVER, Mr. CUMMINGS, Mr. FOSSELLA, Mr. GARRETT of New 

Jersey, Mr. GILLMOR, Mr. AL GREEN of Texas, Mr. HINOJOSA, Ms. 

HOOLEY, Mr. KING of New York, Mr. KLEIN of Florida, Mr. LANGEVIN, 

Mr. LYNCH, Mr. MANZULLO, Mr. MCCOTTER, Mr. MEEKS of New York, 

Mr. GARY G. MILLER of California, Mr. MOORE of Kansas, Ms. MOORE

of Wisconsin, Mrs. MYRICK, Mr. REYNOLDS, Ms. ROS-LEHTINEN, Mr. 

SCOTT of Georgia, Mr. SMITH of Texas, Mr. REICHERT, and Ms. WATSON) introduced the following bill; which was referred to the Committee 

on Financial Services, and in addition to the Committees on Energy and 

Commerce and Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

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


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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, 

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 


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1 result in foreign control of any person engaged in 

2 interstate commerce in the United States. 

3 ‘‘(4) FOREIGN GOVERNMENT-CONTROLLED

4 TRANSACTION.—The term ‘foreign government-con5 trolled transaction’ means any covered transaction 

6 that could result in the control of any person en7 gaged in interstate commerce in the United States 

8 by a foreign government or an entity controlled by 

9 or acting on behalf of a foreign government. 

10 ‘‘(5) CLARIFICATION.—The term ‘national secu11 rity’ shall be construed so as to include those issues 

12 relating to ‘homeland security’, including its applica13 tion to critical infrastructure. 

14 ‘‘(b) NATIONAL SECURITY REVIEWS AND INVESTIGA15 TIONS.— 

16 ‘‘(1) NATIONAL SECURITY REVIEWS.— 

17 ‘‘(A) IN GENERAL.—Upon receiving writ18 ten notification under subparagraph (C) of any 

19 covered transaction, or on a motion made under 

20 subparagraph (D) with respect to any covered 

21 transaction, the President, acting through the 

22 Committee, shall review the covered transaction 

23 to determine the effects on the national security 

24 of the United States. 


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

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

6 paragraph (2). 

7 ‘‘(C) WRITTEN NOTICE.— 

8 ‘‘(i) IN GENERAL.—Any party to any 

9 covered transaction may initiate a review 

10 of the transaction under this paragraph by 

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

14 ‘‘(ii) WITHDRAWAL OF NOTICE.—No 

15 covered transaction for which a notice was 

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

18 ‘‘(I) a written request for such 

19 withdrawal is submitted by any party 

20 to the transaction; and 

21 ‘‘(II) the request is approved in 

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

24 of the Committee. 


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1 ‘‘(iii) CONTINUING DISCUSSIONS.— 

2 The approval of a withdrawal request 

3 under clause (ii) shall not be construed as 

4 precluding any party to the covered trans5 action from continuing informal discus6 sions with the Committee or any Com7 mittee member regarding possible resub8 mission for review pursuant to this para9 graph. 

10 ‘‘(D) UNILATERAL INITIATION OF RE11 VIEW.—The President, the Committee, or any 

12 member of the Committee may move to initiate 

13 a review under subparagraph (A) of— 

14 ‘‘(i) any covered transaction; 

15 ‘‘(ii) any covered transaction that has 

16 previously been reviewed or investigated 

17 under this section, if any party to the 

18 transaction submitted false or misleading 

19 material information to the Committee in 

20 connection with the review or investigation 

21 or omitted material information, including 

22 material documents, from information sub23 mitted to the Committee; or 

24 ‘‘(iii) any covered transaction that has 

25 previously been reviewed or investigated 


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1 under this section, if any party to the 

2 transaction or the entity resulting from 

3 consummation of the transaction inten4 tionally materially breaches a mitigation 

5 agreement or condition described in sub6 section (l)(1)(A), and— 

7 ‘‘(I) such breach is certified by 

8 the lead department or agency moni9 toring and enforcing such agreement 

10 or condition as an intentional material 

11 breach; and 

12 ‘‘(II) such department or agency 

13 certifies that there is no other remedy 

14 or enforcement tool available to ad15 dress such breach. 

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

17 paragraph shall be completed before the end of 

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

19 receipt of written notice under subparagraph 

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

21 the date of the initiation of the review in ac22 cordance with a motion under subparagraph 

23 (D). 

24 ‘‘(2) NATIONAL SECURITY INVESTIGATIONS.— 


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1 ‘‘(A) IN GENERAL.—In each case in 

2 which— 

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

4 under paragraph (1) results in a deter5 mination that— 

6 ‘‘(I) the transaction threatens to 

7 impair the national security of the 

8 United States and that threat has not 

9 been mitigated during or prior to the 

10 review of a covered transaction under 

11 paragraph (1); or 

12 ‘‘(II) the transaction is a foreign 

13 government-controlled transaction; 

14 ‘‘(ii) a roll call vote pursuant to para15 graph (3)(A) in connection with a review 

16 under paragraph (1) of any covered trans17 action results in at least 1 vote by a Com18 mittee member against approving the 

19 transaction; or 

20 ‘‘(iii) the Director of National Intel21 ligence identifies particularly complex intel22 ligence concerns that could threaten to im23 pair the national security of the United 

24 States and Committee members were not 

25 able to develop and agree upon measures 


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1 to mitigate satisfactorily those threats dur2 ing the initial review period under para3 graph (1), 

4 the President, acting through the Committee, 

5 shall immediately conduct an investigation of 

6 the effects of the transaction on the national se7 curity of the United States and take any nec8 essary actions in connection with the trans9 action to protect the national security of the 

10 United States. 

11 ‘‘(B) TIMING.— 

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

13 under subparagraph (A) shall be completed 

14 before the end of the 45-day period begin15 ning on the date of the investigation com16 menced. 

17 ‘‘(ii) EXTENSIONS OF TIME.—The pe18 riod established under subparagraph (B) 

19 for any investigation of a covered trans20 action may be extended with respect to any 

21 particular investigation by the President or 

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

23 members of the Committee involved in the 

24 investigation by the amount of time speci25 fied by the President or the Committee at 


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1 the time of the extension, not to exceed 45 

2 days, as necessary to collect and fully 

3 evaluate information relating to— 

4 ‘‘(I) the covered transaction or 

5 parties to the transaction; and 

6 ‘‘(II) any effect of the trans7 action that could threaten to impair 

8 the national security of the United 

9 States. 

10 ‘‘(3) APPROVAL OF CHAIRPERSON AND VICE

11 CHAIRPERSONS REQUIRED.— 

12 ‘‘(A) IN GENERAL.—A review or investiga13 tion under this subsection of a covered trans14 action shall not be treated as final or complete 

15 until the findings and the report resulting from 

16 such review or investigation are approved by a 

17 majority of the members of the Committee in a 

18 roll call vote and signed by the Secretary of the 

19 Treasury, the Secretary of Homeland Security, 

20 and the Secretary of Commerce (and such au21 thority of each such Secretary may not be dele22 gated to any person other than the Deputy Sec23 retary of the Treasury, the Deputy Secretary of 

24 Homeland Security, or the Deputy Secretary of 

25 Commerce, respectively). 


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1 ‘‘(B) ADDITIONAL ACTION REQUIRED IN

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

3 vote pursuant to subparagraph (A) in connec4 tion with an investigation under paragraph (2) 

5 of any foreign government-controlled trans6 action in which there is at least 1 vote by a 

7 Committee member against approving the 

8 transaction, the investigation shall not be treat9 ed as final or complete until the findings and 

10 report resulting from such investigation are 

11 signed by the President (in addition to the 

12 Chairperson and the Vice Chairpersons of the 

13 Committee under subparagraph (A)). 

14 ‘‘(4) ANALYSIS BY DIRECTOR OF NATIONAL IN15 TELLIGENCE.— 

16 ‘‘(A) IN GENERAL.—The Director of Na17 tional Intelligence shall expeditiously carry out 

18 a thorough analysis of any threat to the na19 tional security of the United States of any cov20 ered transaction, including making requests for 

21 information to the Director of the Office of 

22 Foreign Assets Control within the Department 

23 of the Treasury and the Director of the Finan24 cial Crimes Enforcement Network. The Direc25 tor of National Intelligence also shall seek and 


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1 incorporate the views of all affected or appro2 priate intelligence agencies. 

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

4 National Intelligence shall be provided no less 

5 than 30 days to complete the analysis required 

6 under subparagraph (A), except in any instance 

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

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

9 The Director of National Intelligence shall not 

10 be a member of the Committee and shall serve 

11 no policy role with the Committee other than to 

12 provide analysis under subparagraph (A) in 

13 connection with a covered transaction. 

14 ‘‘(5) RESUBMITTALS OF NOTICE AND REQUESTS

15 FOR ADDITIONAL REVIEW OR INVESTIGATION.— 

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

17 subsection shall be construed as prohibiting any 

18 party to a covered transaction from— 

19 ‘‘(i) submitting additional information 

20 concerning the transaction, including any 

21 proposed restructuring of the transaction 

22 or any modifications to any agreements in 

23 connection with the transaction, while any 

24 review or investigation of the transaction is 

25 on-going; or 


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1 ‘‘(ii) requesting a review or investiga2 tion of the transaction after any previous 

3 review or investigation of the same or a 

4 similar transaction has become final if in5 formation material to the prior review or 

6 investigation and not previously submitted 

7 to the Committee becomes known or if any 

8 material change in circumstances to the 

9 covered transaction has occurred since the 

10 review or investigation. 

11 ‘‘(B) APPROVAL OF REQUEST.—In the 

12 case of a request referred to in subparagraph 

13 (A)(ii), the Committee shall determine by con14 sensus whether to grant a request. 

15 ‘‘(6) REGULATIONS.—Regulations prescribed 

16 under this section shall include standard procedures 

17 for— 

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

19 or pending covered transaction to the Com20 mittee; 

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

22 proposed or pending covered transaction from 

23 review; and 


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

2 pending covered transaction that was previously 

3 withdrawn from review.’’. 

4 SEC. 3. STATUTORY ESTABLISHMENT OF THE COMMITTEE 

5 ON FOREIGN INVESTMENT IN THE UNITED 

6 STATES. 

7 (a) IN GENERAL.—Section 721 of the Defense Pro8 duction Act of 1950 (50 U.S.C. App. 2170) is amended 

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

10 subsection: 

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

12 UNITED STATES.— 

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

14 Foreign Investment in the United States established 

15 pursuant to Executive Order No. 11858 shall be a 

16 multi-agency committee to carry out this section and 

17 such other assignments as the President may des18 ignate. 

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

20 comprised of the following members or the designee 

21 of any such member: 

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

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

24 ‘‘(C) The Secretary of Commerce. 

25 ‘‘(D) The Secretary of Defense. 


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1 ‘‘(E) The Secretary of State. 

2 ‘‘(F) The Attorney General. 

3 ‘‘(G) The Secretary of Energy. 

4 ‘‘(H) The Chairman of the Council of Eco5 nomic Advisors. 

6 ‘‘(I) The United States Trade Representa7 tive. 

8 ‘‘(J) The Director of the Office of Manage9 ment and Budget. 

10 ‘‘(K) The Director of the National Eco11 nomic Council. 

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

13 and Technology Policy. 

14 ‘‘(M) The President’s Assistant for Na15 tional Security Affairs. 

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

17 from the Executive Office of the President. 

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

19 Secretary of the Treasury shall be the Chairperson 

20 of the Committee. The Secretary of Homeland Secu21 rity and the Secretary of Commerce shall be the Vice 

22 Chairpersons of the Committee. 

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

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

25 involve 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 persons, determines to be appropriate on the basis 

5 of the facts and circumstances of the transaction 

6 under investigation (or the designee of any such de7 partment 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 

12 otherwise applicable). 

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

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

15 of 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) AUTHORIZATION OF 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 

3 operations of the Committee that are conducted by 

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

5 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

6 The first sentence of section 721(c) of the Defense Pro7 duction Act of 1950 (50 U.S.C. App. 2170(c)) is amend8 ed— 

9 (1) by striking ‘‘material filed with’’ and insert10 ing ‘‘material, including proprietary business infor11 mation, filed with, or testimony presented to,’’; and 

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

13 second place such term appears and inserting ‘‘, doc14 umentary material, or testimony’’. 

15 SEC. 4. ADDITIONAL FACTORS REQUIRED TO BE CONSID16 ERED. 

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

18 (50 U.S.C. App. 2170(f)) is amended— 

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

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

21 ‘‘shall’’; and 

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

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

24 (4); 


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1 (3) by striking the period at the end of para2 graph (5) and inserting a semicolon; and 

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

4 paragraphs: 

5 ‘‘(6) whether the covered transaction has a se6 curity-related impact on critical infrastructure in the 

7 United States; 

8 ‘‘(7) whether the covered transaction is a for9 eign government-controlled transaction; and 

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

11 President’s designee may determine to be appro12 priate, generally or in connection with a specific re13 view or investigation.’’. 

14 SEC. 5. NONWAIVER OF SOVEREIGN IMMUNITY. 

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

16 1950 (50 U.S.C. App. 2170(d)) is amended by adding at 

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

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

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

20 of actions taken under this section after a covered trans21 action has been consummated if the party did not submit 

22 a written notice of the transaction to the Chairperson of 

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

24 until the completion of any review or investigation under 

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


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1 to in this subsection, before consummating the trans2 action.’’. 

3 SEC. 6. MITIGATION, TRACKING, AND POST-CONSUMMA4 TION MONITORING AND ENFORCEMENT. 

5 Section 721 of the Defense Production Act of 1950 

6 (50 U.S.C. App. 2170) is amended by inserting after sub7 section (k) (as amended by section 3 of this Act) the fol8 lowing new subsection: 

9 ‘‘(l) MITIGATION, TRACKING, AND

10 POSTCONSUMMATION MONITORING AND ENFORCE11 MENT.— 

12 ‘‘(1) MITIGATION.— 

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

14 agency designated by the Chairperson and Vice 

15 Chairpersons may negotiate, enter into or im16 pose, and enforce any agreement or condition 

17 with any party to a covered transaction in order 

18 to mitigate any threat to the national security 

19 of the United States. 

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

21 Any agreement entered into or condition im22 posed under subparagraph (A) shall be based 

23 on a risk-based analysis of the threat to na24 tional security of the covered transaction. 


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1 ‘‘(2) TRACKING AUTHORITY FOR WITHDRAWN

2 NOTICES.— 

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

4 of a covered transaction that was submitted to 

5 the Committee under this section is withdrawn 

6 before any review or investigation by the Com7 mittee under subsection (b) is completed, the 

8 Committee shall establish, as appropriate— 

9 ‘‘(i) interim protections to address 

10 specific concerns with such transaction 

11 that have been raised in connection with 

12 any such review or investigation pending 

13 any resubmission of any written notice 

14 under this section with respect to such 

15 transaction and further action by the 

16 President under this section; 

17 ‘‘(ii) specific timeframes for resubmit18 ting any such written notice; and 

19 ‘‘(iii) a process for tracking any ac20 tions that may be taken by any party to 

21 the transaction, in connection with the 

22 transaction, before the notice referred to in 

23 clause (ii) is resubmitted. 

24 ‘‘(B) DESIGNATION OF AGENCY.—The 

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1 eral department or agency, other than any enti2 ty of the intelligence community (as defined in 

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

4 agency to carry out the requirements of sub5 paragraph (A) with respect to any covered 

6 transaction that is subject to such subpara7 graph. 

8 ‘‘(3) NEGOTIATION, MODIFICATION, MONI9 TORING, AND ENFORCEMENT.— 

10 ‘‘(A) DESIGNATION OF AGENCY.—The 

11 Committee shall designate a Federal depart12 ment or agency as the lead agency to negotiate, 

13 modify, monitor, and enforce any agreement en14 tered into or condition imposed under para15 graph (1) with respect to a covered transaction 

16 based on the expertise with and knowledge of 

17 the issues related to such transaction on the 

18 part of the designated department or agency. 

19 ‘‘(B) REPORTING BY DESIGNATED AGEN20 CY.— 

21 ‘‘(i) IMPLEMENTATION REPORTS.— 

22 The Federal department or agency des23 ignated by the Committee as a lead agency 

24 under subparagraph (A) in connection with 

25 any agreement entered into or condition 


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1 imposed under paragraph (1) with respect 

2 to a covered transaction shall— 

3 ‘‘(I) provide periodic reports to 

4 the Chairperson and Vice Chair5 persons of the Committee on the im6 plementation of such agreement or 

7 condition; and 

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

9 party to the covered transaction to re10 port to the head of such department 

11 or agency (or the designee of such de12 partment or agency head) on the im13 plementation or any material change 

14 in circumstances. 

15 ‘‘(ii) MODIFICATION REPORTS.—The 

16 Federal department or agency designated 

17 by the Committee as a lead agency under 

18 subparagraph (A) in connection with any 

19 agreement entered into or condition im20 posed with respect to a covered transaction 

21 shall— 

22 ‘‘(I) provide periodic reports to 

23 the Chairperson and Vice Chair24 persons of the Committee on any 

25 modification to any such agreement or 


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1 condition imposed with respect to the 

2 transaction; and 

3 ‘‘(II) ensure that any significant 

4 modification to any such agreement or 

5 condition is reported to the Director 

6 of National Intelligence and to any 

7 other Federal department or agency 

8 that may have a material interest in 

9 such modification.’’. 

10 SEC. 7. INCREASED OVERSIGHT BY THE CONGRESS. 

11 (a) REPORT ON ACTIONS.—Section 721(g) of the De12 fense Production Act of 1950 (50 U.S.C. App. 2170) is 

13 amended to read as follows: 

14 ‘‘(g) REPORTS TO THE CONGRESS.— 

15 ‘‘(1) REPORTS ON COMPLETED COMMITTEE IN16 VESTIGATIONS.— 

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

18 after the completion of a Committee investiga19 tion of a covered transaction under subsection 

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

21 to take any action authorized under subsection 

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

23 end of 15-day period referred to in subsection 

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

25 the Committee shall submit a written report on 


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1 the findings or actions of the Committee with 

2 respect to such investigation, the determination 

3 of whether or not to take action under sub4 section (d), an explanation of the findings 

5 under subsection (e), and the factors considered 

6 under subsection (f), with respect to such trans7 action, to— 

8 ‘‘(i) the Majority Leader and the Mi9 nority Leader of the Senate; 

10 ‘‘(ii) the Speaker and the Minority 

11 Leader of the House of Representatives; 

12 and 

13 ‘‘(iii) the chairman and ranking mem14 ber of each committee of the House of 

15 Representatives and the Senate with juris16 diction over any aspect of the covered 

17 transaction and its possible effects on na18 tional security, including the Committee on 

19 International Relations, the Committee on 

20 Financial Services, and the Committee on 

21 Energy and Commerce of the House of 

22 Representatives. 

23 ‘‘(B) NOTICE AND BRIEFING REQUIRE24 MENT.—If a written request for a briefing on a 

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1 mittee by any Senator or Member of Congress 

2 who receives a report on the transaction under 

3 subparagraph (A), the Chairperson or a Vice 

4 Chairperson (or such other person as the Chair5 person or a Vice Chairperson may designate) 

6 shall provide 1 classified briefing to each House 

7 of the Congress from which any such briefing 

8 request originates in a secure facility of appro9 priate size and location that shall be open only 

10 to the Majority Leader and the Minority Leader 

11 of the Senate, the Speaker and the Minority 

12 Leader of the House of Representatives, (as the 

13 case may be) the chairman and ranking mem14 ber of each committee of the House of Rep15 resentatives or the Senate (as the case may be) 

16 with jurisdiction over any aspect of the covered 

17 transaction and its possible effects on national 

18 security, including the Committee on Inter19 national Relations, the Committee on Financial 

20 Services, and the Committee on Energy and 

21 Commerce of the House of Representatives, and 

22 appropriate staff members who have security 

23 clearance. 

24 ‘‘(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) SEMI-ANNUAL REPORT.—Section 721 of the De18 fense Production Act of 1950 (50 U.S.C. App. 2170) is 

19 amended by inserting after subsection (l) (as added by sec20 tion 6 of this Act) the following new subsection: 

21 ‘‘(m) SEMI-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 

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1 diction over any aspect of the report, including the 

2 Committee on International Relations, the Com3 mittee on Financial Services, and the Committee on 

4 Energy and Commerce of the House of Representa5 tives, before January 31 and July 31 of each year 

6 on all the reviews and investigations of covered 

7 transactions conducted under subsection (b) during 

8 the 6-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 conducted 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 filVerDate Aug 31 2005 18:48 Jan 20, 2007 Jkt 059200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\H556.IH H556

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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. 

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

18 adverse effects of covered transactions on the 

19 national security or critical infrastructure of the 

20 United States that the Committee will take into 

21 account in its deliberations during the period 

22 before delivery of the next such report, to the 

23 extent possible. 

24 ‘‘(3) CONTENTS OF REPORT RELATING TO

25 CRITICAL TECHNOLOGIES.— 


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

2 Congress in its oversight responsibilities with 

3 respect to this section, the President and such 

4 agencies as the President shall designate shall 

5 include in the semi-annual report submitted 

6 under paragraph (1) the following: 

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

8 credible evidence of a coordinated strategy 

9 by 1 or more countries or companies to ac10 quire United States companies involved in 

11 research, development, or production of 

12 critical technologies for which the United 

13 States is a leading producer. 

14 ‘‘(ii) An evaluation of whether there 

15 are industrial espionage activities directed 

16 or directly assisted by foreign governments 

17 against private United States companies 

18 aimed at obtaining commercial secrets re19 lated to critical technologies. 

20 ‘‘(B) CRITICAL TECHNOLOGIES DE21 FINED.—For purposes of this paragraph, the 

22 term ‘critical technologies’ means technologies 

23 identified under title VI of the National Science 

24 and Technology Policy, Organization, and Pri25 orities Act of 1976 or other critical technology, 


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1 critical components, or critical technology items 

2 essential to national defense or national security 

3 identified pursuant to this section. 

4 ‘‘(C) RELEASE OF UNCLASSIFIED

5 STUDY.—That portion of the semi-annual re6 port under paragraph (1) that is required by 

7 this paragraph may be classified. An unclassi8 fied version of that portion of the report shall 

9 be made available to the public.’’. 

10 (c) INVESTIGATION BY INSPECTOR GENERAL.— 

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

12 the Department of the Treasury shall conduct an 

13 independent investigation to determine all of the 

14 facts and circumstances concerning each failure of 

15 the Department of the Treasury to make any report 

16 to the Congress that was required under section 

17 721(k) of the Defense Production Act of 1950 (as 

18 in effect before the date of the enactment of this 

19 Act). 

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

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

22 the enactment of this Act, the Inspector General of 

23 the Department of the Treasury shall submit a re24 port to the chairman and ranking member of each 

25 committee of the House of Representatives and the 


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1 Senate with jurisdiction over any aspect of the re2 port, including the Committee on International Rela3 tions, the Committee on Financial Services, and the 

4 Committee on Energy and Commerce of the House 

5 of Representatives, on the investigation under para6 graph (1) containing the findings and conclusions of 

7 the Inspector General. 

8 (d) STUDY AND REPORT.— 

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

10 120-day period beginning on the date of the enact11 ment of this Act, the Secretary of the Treasury, in 

12 consultation with the Secretary of State and the 

13 Secretary of Commerce, shall conduct a study on in14 vestments in the United States, especially invest15 ments in critical infrastructure and industries affect16 ing national security, by— 

17 (A) foreign governments, entities controlled 

18 by or acting on behalf of a foreign government, 

19 or persons of foreign countries which comply 

20 with any boycott of Israel; or 

21 (B) foreign governments, entities con22 trolled by or acting on behalf of a foreign gov23 ernment, or persons of foreign countries which 

24 do not ban organizations designated by the SecVerDate Aug 31 2005 18:48 Jan 20, 2007 Jkt 059200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\H556.IH H556

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1 retary of State as foreign terrorist organiza2 tions. 

3 (2) REPORT.—Before the end of the 30-day pe4 riod beginning upon completion of the study under 

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

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

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

8 of the Treasury shall submit a report to the Con9 gress, for transmittal to all appropriate committees 

10 of the Senate and the House of Representatives, 

11 containing the findings and conclusions of the Sec12 retary with respect to the study, together with an 

13 analysis of the effects of such investment on the na14 tional security of the United States and on any ef15 forts to address those effects. 

16 SEC. 8. CERTIFICATION OF NOTICES AND ASSURANCES. 

17 Section 721 of the Defense Production Act of 1950 

18 (50 U.S.C. App. 2170) is amended by inserting after sub19 section (m) (as added by section 7(b) of this Act) the fol20 lowing new subsection: 

21 ‘‘(n) CERTIFICATION OF NOTICES AND ASSUR22 ANCES.—Each notice required to be submitted, by a party 

23 to a covered transaction, to the President or the Presi24 dent’s designee under this section and regulations pre25 scribed under such section, and any information submitted 


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

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

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

4 mitigation agreement or condition described in paragraph 

5 (1)(A) of such subsection, or any material change in cir6 cumstances, shall be accompanied by a written statement 

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

8 required to submit such notice or information certifying 

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

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

11 complies with the requirements of this section or 

12 such regulation, agreement, or condition; and 

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

14 complete in all material respects.’’. 

15 SEC. 9. REGULATIONS. 

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

17 1950 (50 U.S.C. App. 2170(h)) is amended to read as 

18 follows: 

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

20 issuance of regulations to carry out this section. Such reg21 ulations shall, to the extent possible, minimize paperwork 

22 burdens and shall to the extent possible coordinate report23 ing requirements under this section with reporting re24 quirements under any other provision of Federal law.’’. 


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1 SEC. 10. EFFECT ON OTHER LAW. 

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

3 (50 U.S.C. App. 2170(i)) is amended to read as follows: 

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

5 section shall be construed as altering or affecting any 

6 other authority, process, regulation, investigation, enforce7 ment measure, or review provided by or established under 

8 any other provision of Federal law, including the Inter9 national Emergency Economic Powers Act, or any other 

10 authority of the President or the Congress under the Con11 stitution of the United States.’’. 

Æ 


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