IB 

Union Calendar No. 9 

110TH CONGRESS 

1ST SESSION H. R. 556 

[Report No. 110–24, Part I ] 

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 

FEBRUARY 23, 2007 

Additional sponsors: Mr. HOEKSTRA, Mrs. MCCARTHY of New York, Mr. 

MATHESON, Mr. THOMPSON of Mississippi, Mr. CLAY, Mr. ISRAEL, Mr. 

BARTON of Texas, Mr. WATT, Ms. HARMAN, Mr. SHAYS, Ms. GINNY

BROWN-WAITE of Florida, Mr. LATOURETTE, Mr. BUCHANAN, Mr. MILLER of North Carolina, Mr. HASTINGS of Washington, Mr. DICKS, Mr. 

ENGLISH of Pennsylvania, Mr. SMITH of Washington, Mrs. CAPITO, Mr. 

COURTNEY, Mr. PASCRELL, and Mrs. MCMORRIS RODGERS

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FEBRUARY 23, 2007 

Reported from the Committee on Financial Services with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

FEBRUARY 23, 2007 

Committees on Energy and Commerce and Foreign Affairs discharged; committed to the Committee of the Whole House on the State of the Union 

and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on January 18, 2007] 

A BILL 

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

to establish the Committee on Foreign Investment in 

the United States, and for other purposes. 

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

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 (50 

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

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

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

2 following definitions shall apply: 

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

4 the Committee on Foreign Investment in the United 

5 States. 

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

7 meaning given to such term in regulations which the 

8 Committee shall prescribe. 

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

10 transaction’ means any merger, acquisition, or take11 over by or with any foreign person which could result 

12 in foreign control of any person engaged in interstate 

13 commerce in the United States. 

14 ‘‘(4) FOREIGN GOVERNMENT-CONTROLLED

15 TRANSACTION.—The term ‘foreign government-con16 trolled transaction’ means any covered transaction 

17 that could result in the control of any person engaged 

18 in interstate commerce in the United States by a for19 eign government or an entity controlled by or acting 

20 on behalf of a foreign government. 

21 ‘‘(5) CLARIFICATION.—The term ‘national secu22 rity’ shall be construed so as to include those issues 

23 relating to ‘homeland security’, including its applica24 tion to critical infrastructure. 

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1 ‘‘(b) NATIONAL SECURITY REVIEWS AND INVESTIGA2 TIONS.— 

3 ‘‘(1) NATIONAL SECURITY REVIEWS.— 

4 ‘‘(A) IN GENERAL.—Upon receiving written 

5 notification under subparagraph (C) of any cov6 ered transaction, or on a motion made under 

7 subparagraph (D) with respect to any covered 

8 transaction, the President, acting through the 

9 Committee, shall review the covered transaction 

10 to determine the effects of the transaction on the 

11 national security of the United States. 

12 ‘‘(B) CONTROL BY FOREIGN GOVERN13 MENT.—If the Committee determines that the 

14 covered transaction is a foreign government-con15 trolled transaction, the Committee shall conduct 

16 an investigation of the transaction under para17 graph (2). 

18 ‘‘(C) WRITTEN NOTICE.— 

19 ‘‘(i) IN GENERAL.—Any party to any 

20 covered transaction may initiate a review of 

21 the transaction under this paragraph by 

22 submitting a written notice of the trans23 action to the Chairperson of the Committee. 

24 ‘‘(ii) WITHDRAWAL OF NOTICE.—No 

25 covered transaction for which a notice was 

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1 submitted under clause (i) may be with2 drawn from review unless— 

3 ‘‘(I) a written request for such 

4 withdrawal is submitted by any party 

5 to the transaction; and 

6 ‘‘(II) the request is approved in 

7 writing by the Chairperson, in con8 sultation with the Vice Chairpersons, 

9 of the Committee. 

10 ‘‘(iii) CONTINUING DISCUSSIONS.—The 

11 approval of a withdrawal request under 

12 clause (ii) shall not be construed as pre13 cluding any party to the covered trans14 action from continuing informal discussions 

15 with the Committee or any Committee 

16 member regarding possible resubmission for 

17 review pursuant to this paragraph. 

18 ‘‘(D) UNILATERAL INITIATION OF RE19 VIEW.—Subject to subparagraph (F), the Presi20 dent, the Committee, or any member acting on 

21 behalf of the Committee may move to initiate a 

22 review under subparagraph (A) of— 

23 ‘‘(i) any covered transaction; 

24 ‘‘(ii) 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 submitted false or misleading 

3 material information to the Committee in 

4 connection with the review or investigation 

5 or omitted material information, including 

6 material documents, from information sub7 mitted to the Committee; or 

8 ‘‘(iii) any covered transaction that has 

9 previously been reviewed or investigated 

10 under this section, if any party to the 

11 transaction or the entity resulting from con12 summation of the transaction intentionally 

13 materially breaches a mitigation agreement 

14 or condition described in subsection 

15 (l)(1)(A), and— 

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

17 lead department or agency monitoring 

18 and enforcing such agreement or condi19 tion as an intentional material breach; 

20 and 

21 ‘‘(II) such department or agency 

22 certifies that there is no other remedy 

23 or enforcement tool available to address 

24 such breach. 

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1 ‘‘(E) TIMING.—Any review under this para2 graph shall be completed before the end of the 30- 

3 day period beginning on the date of the receipt 

4 of written notice under subparagraph (C) by the 

5 Chairperson of the Committee, or the date of the 

6 initiation of the review in accordance with a 

7 motion under subparagraph (D). 

8 ‘‘(F) LIMIT ON DELEGATION OF CERTAIN

9 AUTHORITY.—The authority of the Committee or 

10 any member of the Committee to initiate a re11 view under subparagraph (D) may not be dele12 gated to any person other than the Deputy Sec13 retary or an appropriate Under Secretary of the 

14 department or agency represented on the com15 mittee or by such member (or by a person hold16 ing an equivalent position to a Deputy Secretary 

17 or Under Secretary). 

18 ‘‘(2) NATIONAL SECURITY INVESTIGATIONS.— 

19 ‘‘(A) IN GENERAL.—In each case in 

20 which— 

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

22 under paragraph (1) results in a deter23 mination that— 

24 ‘‘(I) the transaction threatens to 

25 impair the national security of the 

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1 United States and that threat has not 

2 been mitigated during or prior to the 

3 review of a covered transaction under 

4 paragraph (1); or 

5 ‘‘(II) the transaction is a foreign 

6 government-controlled transaction; 

7 ‘‘(ii) a roll call vote pursuant to para8 graph (3)(A) in connection with a review 

9 under paragraph (1) of any covered trans10 action results in at least 1 vote by a Com11 mittee member against approving the trans12 action; or 

13 ‘‘(iii) the Director of National Intel14 ligence identifies particularly complex intel15 ligence concerns that could threaten to im16 pair the national security of the United 

17 States and Committee members were not 

18 able to develop and agree upon measures to 

19 mitigate satisfactorily those threats during 

20 the initial review period under paragraph 

21 (1), 

22 the President, acting through the Committee, 

23 shall immediately conduct an investigation of 

24 the effects of the transaction on the national se25 curity of the United States and take any necmstockstill on PROD1PC66 with BILLS

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1 essary actions in connection with the transaction 

2 to protect the national security of the United 

3 States. 

4 ‘‘(B) TIMING.— 

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

6 under subparagraph (A) shall be completed 

7 before the end of the 45-day period begin8 ning on the date of the investigation com9 menced. 

10 ‘‘(ii) EXTENSIONS OF TIME.—The pe11 riod established under subparagraph (B) for 

12 any investigation of a covered transaction 

13 may be extended with respect to any par14 ticular investigation by the President or by 

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

16 of the Committee involved in the investiga17 tion by the amount of time specified by the 

18 President or the Committee at the time of 

19 the extension, not to exceed 45 days, as nec20 essary to collect and fully evaluate informa21 tion relating to— 

22 ‘‘(I) the covered transaction or 

23 parties to the transaction; and 

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1 ‘‘(II) any effect of the transaction 

2 that could threaten to impair the na3 tional security of the United States. 

4 ‘‘(C) EXCEPTION.—Notwithstanding sub5 paragraph (A)(i)(II), an investigation of a for6 eign government-controlled transaction shall not 

7 be required under this paragraph if the Sec8 retary of the Treasury, the Secretary of Home9 land Security, and the Secretary of Commerce 

10 determine, on the basis of the review of the trans11 action under paragraph (1), that the transaction 

12 will not affect the national security of the United 

13 States and no agreement or condition is re14 quired, with respect to the transaction, to miti15 gate any threat to the national security (and 

16 such authority of each such Secretary may not be 

17 delegated to any person other than the Deputy 

18 Secretary of the Treasury, of Homeland Secu19 rity, or of Commerce, respectively). 

20 ‘‘(3) APPROVAL OF CHAIRPERSON AND VICE

21 CHAIRPERSONS REQUIRED.— 

22 ‘‘(A) IN GENERAL.—A review or investiga23 tion under this subsection of a covered trans24 action shall not be treated as final or complete 

25 until the results of such review or investigation 

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1 are approved by a majority of the members of 

2 the Committee in a roll call vote and signed by 

3 the Secretary of the Treasury, the Secretary of 

4 Homeland Security, and the Secretary of Com5 merce (and such authority of each such Secretary 

6 may not be delegated to any person other than 

7 the Deputy Secretary or an appropriate Under 

8 Secretary of the Treasury, of Homeland Secu9 rity, or of Commerce, respectively). 

10 ‘‘(B) ADDITIONAL ACTION REQUIRED IN

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

12 vote pursuant to subparagraph (A) in connection 

13 with an investigation under paragraph (2) of 

14 any foreign government-controlled transaction in 

15 which there is at least 1 vote by a Committee 

16 member against approving the transaction, the 

17 investigation shall not be treated as final or 

18 complete until the findings and report resulting 

19 from such investigation are signed by the Presi20 dent (in addition to the Chairperson and the 

21 Vice Chairpersons of the Committee under sub22 paragraph (A)). 

23 ‘‘(C) PRESIDENTIAL ACTION REQUIRED IN

24 CERTAIN CASES.—In the case of any covered 

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1 transaction in which any party to the trans2 action is— 

3 ‘‘(i) a person of a country the govern4 ment of which the Secretary of State has de5 termined, for purposes of section 6(j) of the 

6 Export Administration Act of 1979 (as con7 tinued in effect pursuant to the Inter8 national Emergency Economic Powers Act), 

9 section 40 of the Arms Export Control Act, 

10 section 620A of the Foreign Assistance Act 

11 of 1961, or other provision of law, is a gov12 ernment that has repeatedly provided sup13 port for acts of international terrorism; 

14 ‘‘(ii) a government described in clause 

15 (i); or 

16 ‘‘(iii) person controlled, directly or in17 directly, by any such government, 

18 a review or investigation under this subsection of 

19 such covered transaction shall not be treated as 

20 final or complete until the results of such review 

21 or investigation are approved and signed by the 

22 President. 

23 ‘‘(4) ANALYSIS BY DIRECTOR OF NATIONAL IN24 TELLIGENCE.— 

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1 ‘‘(A) IN GENERAL.—The Director of Na2 tional Intelligence shall expeditiously carry out a 

3 thorough analysis of any threat to the national 

4 security of the United States of any covered 

5 transaction, including making requests for infor6 mation to the Director of the Office of Foreign 

7 Assets Control within the Department of the 

8 Treasury and the Director of the Financial 

9 Crimes Enforcement Network. The Director of 

10 National Intelligence also shall seek and incor11 porate the views of all affected or appropriate in12 telligence agencies. 

13 ‘‘(B) TIMING.—The Director of National In14 telligence shall be provided adequate time to 

15 complete the analysis required under subpara16 graph (A), including any instance described in 

17 paragraph (2)(A)(iii). 

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

19 The Director of National Intelligence shall not be 

20 a member of the Committee and shall serve no 

21 policy role with the Committee other than to pro22 vide analysis under subparagraph (A) in connec23 tion with a covered transaction. 

24 ‘‘(5) SUBMISSION OF ADDITIONAL INFORMA25 TION.—No provision of this subsection shall be conmstockstill on PROD1PC66 with BILLS

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1 strued as prohibiting any party to a covered trans2 action from submitting additional information con3 cerning the transaction, including any proposed re4 structuring of the transaction or any modifications to 

5 any agreements in connection with the transaction, 

6 while any review or investigation of the transaction 

7 is on-going. 

8 ‘‘(6) REGULATIONS.—Regulations prescribed 

9 under this section shall include standard procedures 

10 for— 

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

12 pending covered transaction to the Committee; 

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

14 proposed or pending covered transaction from re15 view; and 

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

17 pending covered transaction that was previously 

18 withdrawn from review.’’. 

19 SEC. 3. STATUTORY ESTABLISHMENT OF THE COMMITTEE 

20 ON FOREIGN INVESTMENT IN THE UNITED 

21 STATES. 

22 (a) IN GENERAL.—Section 721 of the Defense Produc23 tion Act of 1950 (50 U.S.C. App. 2170) is amended by strik24 ing subsection (k) and inserting the following new sub25 section: 

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

2 UNITED STATES.— 

3 ‘‘(1) ESTABLISHMENT.—The Committee on For4 eign Investment in the United States established pur5 suant to Executive Order No. 11858 shall be a multi6 agency committee to carry out this section and such 

7 other assignments as the President may designate. 

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

9 comprised of the following members or the designee of 

10 any such member: 

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

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

13 ‘‘(C) The Secretary of Commerce. 

14 ‘‘(D) The Secretary of Defense. 

15 ‘‘(E) The Secretary of State. 

16 ‘‘(F) The Attorney General. 

17 ‘‘(G) The Secretary of Energy. 

18 ‘‘(H) The Chairman of the Council of Eco19 nomic Advisors. 

20 ‘‘(I) The United States Trade Representa21 tive. 

22 ‘‘(J) The Director of the Office of Manage23 ment and Budget. 

24 ‘‘(K) The Director of the National Economic 

25 Council. 

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

2 and Technology Policy. 

3 ‘‘(M) The President’s Assistant for National 

4 Security Affairs. 

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

6 from the Executive Office of the President. 

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

8 Secretary of the Treasury shall be the Chairperson of 

9 the Committee. The Secretary of Homeland Security 

10 and the Secretary of Commerce shall be the Vice 

11 Chairpersons of the Committee. 

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

13 (b)(4)(B), the Chairperson of the Committee shall in14 volve the heads of such other Federal departments, 

15 agencies, and independent establishments in any re16 view or investigation under subsection (b) as the 

17 Chairperson, after consulting with the Vice Chair18 persons, determines to be appropriate on the basis of 

19 the facts and circumstances of the transaction under 

20 investigation (or the designee of any such department 

21 or agency head). 

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

23 upon the direction of the President or upon the call 

24 of the Chairperson of the Committee without regard 

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1 to section 552b of title 5, United States Code (if other2 wise applicable). 

3 ‘‘(6) COLLECTION OF EVIDENCE.—Subject to sub4 section (c), the Committee may, for the purpose of 

5 carrying out this section— 

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

7 take such testimony, receive such evidence, ad8 minister such oaths; and 

9 ‘‘(B) require the attendance and testimony 

10 of such witnesses and the production of such 

11 books, records, correspondence, memoranda, pa12 pers, and documents as the Chairperson of the 

13 Committee may determine advisable. 

14 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.— 

15 There are authorized to be appropriated to the Sec16 retary of the Treasury for each of fiscal years 2008, 

17 2009, 2010, and 2011 expressly and solely for the op18 erations of the Committee that are conducted by the 

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

20 (b) TECHNICAL AND CONFORMING AMENDMENT.—The 

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

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

23 (1) by striking ‘‘material filed with’’ and insert24 ing ‘‘material, including proprietary business infor25 mation, filed with, or testimony presented to,’’; and 

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

2 second place such term appears and inserting ‘‘, docu3 mentary material, or testimony’’. 

4 SEC. 4. ADDITIONAL FACTORS REQUIRED TO BE CONSID5 ERED. 

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

7 (50 U.S.C. App. 2170(f)) is amended— 

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

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

10 ‘‘shall’’; and 

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

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

13 (4); 

14 (3) by striking the period at the end of para15 graph (5) and inserting a semicolon; and 

16 (4) by adding at the end the following new para17 graphs: 

18 ‘‘(6) whether the covered transaction has a secu19 rity-related impact on critical infrastructure in the 

20 United States; 

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

22 government-controlled transaction; and 

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

24 President’s designee may determine to be appropriate, 

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1 generally or in connection with a specific review or 

2 investigation.’’. 

3 SEC. 5. NONWAIVER OF SOVEREIGN IMMUNITY. 

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

5 (50 U.S.C. App. 2170(d)) is amended by adding at the end 

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

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

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

9 taken under this section after a covered transaction has been 

10 consummated if the party did not submit a written notice 

11 of the transaction to the Chairperson of the Committee 

12 under subsection (b)(1)(C) or did not wait until the comple13 tion of any review or investigation under subsection (b), 

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

15 before consummating the transaction.’’. 

16 SEC. 6. MITIGATION, TRACKING, AND POST-CONSUMMA17 TION MONITORING AND ENFORCEMENT. 

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

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

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

21 subsection: 

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

23 MONITORING AND ENFORCEMENT.— 

24 ‘‘(1) MITIGATION.— 

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

2 agency designated by the Chairperson and Vice 

3 Chairpersons may, on behalf of the Committee, 

4 negotiate, enter into or impose, and enforce any 

5 agreement or condition with any party to a cov6 ered transaction in order to mitigate any threat 

7 to the national security of the United States that 

8 arises as a result of the transaction. 

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

10 Any agreement entered into or condition imposed 

11 under subparagraph (A) shall be based on a risk12 based analysis of the threat to national security 

13 of the covered transaction. 

14 ‘‘(2) TRACKING AUTHORITY FOR WITHDRAWN NO15 TICES.— 

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

17 a covered transaction that was submitted to the 

18 Committee under this section is withdrawn be19 fore any review or investigation by the Com20 mittee under subsection (b) is completed, the 

21 Committee shall establish, as appropriate— 

22 ‘‘(i) interim protections to address spe23 cific concerns with such transaction that 

24 have been raised in connection with any 

25 such review or investigation pending any 

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1 resubmission of any written notice under 

2 this section with respect to such transaction 

3 and further action by the President under 

4 this section; 

5 ‘‘(ii) specific timeframes for resubmit6 ting any such written notice; and 

7 ‘‘(iii) a process for tracking any ac8 tions that may be taken by any party to the 

9 transaction, in connection with the trans10 action, before the notice referred to in clause 

11 (ii) is resubmitted. 

12 ‘‘(B) DESIGNATION OF AGENCY.—The Com13 mittee may designate 1 or more appropriate 

14 Federal departments or agencies, other than any 

15 entity of the intelligence community (as defined 

16 in the National Security Act of 1947), as a lead 

17 agency to carry out, on behalf of the Committee, 

18 the requirements of subparagraph (A) with re19 spect to any covered transaction that is subject 

20 to such subparagraph. 

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

22 AND ENFORCEMENT.— 

23 ‘‘(A) DESIGNATION OF AGENCY.—The Com24 mittee shall designate 1 or more Federal depart25 ments or agencies as the lead agency to negomstockstill on PROD1PC66 with BILLS

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1 tiate, modify, monitor, and enforce, on behalf of 

2 the Committee, any agreement entered into or 

3 condition imposed under paragraph (1) with re4 spect to a covered transaction based on the exper5 tise with and knowledge of the issues related to 

6 such transaction on the part of the designated 

7 department or agency. 

8 ‘‘(B) REPORTING BY DESIGNATED AGEN9 CY.— 

10 ‘‘(i) IMPLEMENTATION REPORTS.— 

11 Each Federal department or agency des12 ignated by the Committee as a lead agency 

13 under subparagraph (A) in connection with 

14 any agreement entered into or condition 

15 imposed under paragraph (1) with respect 

16 to a covered transaction shall— 

17 ‘‘(I) provide periodic reports to 

18 the Chairperson and Vice Chairpersons 

19 of the Committee on the implementa20 tion of such agreement or condition; 

21 and 

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

23 party to the covered transaction to re24 port to the head of such department or 

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1 ment or agency head) on the imple2 mentation or any material change in 

3 circumstances. 

4 ‘‘(ii) MODIFICATION REPORTS.—Any 

5 Federal department or agency designated by 

6 the Committee as a lead agency under sub7 paragraph (A) in connection with any 

8 agreement entered into or condition im9 posed with respect to a covered transaction 

10 shall— 

11 ‘‘(I) provide periodic reports to 

12 the Chairperson and Vice Chairpersons 

13 of the Committee on any modification 

14 to any such agreement or condition 

15 imposed with respect to the trans16 action; and 

17 ‘‘(II) ensure that any significant 

18 modification to any such agreement or 

19 condition is reported to the Director of 

20 National Intelligence and to any other 

21 Federal department or agency that 

22 may have a material interest in such 

23 modification.’’. 

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1 SEC. 7. INCREASED OVERSIGHT BY THE CONGRESS. 

2 (a) REPORT ON ACTIONS.—Section 721(g) of the De3 fense Production Act of 1950 (50 U.S.C. App. 2170) is 

4 amended to read as follows: 

5 ‘‘(g) REPORTS TO THE CONGRESS.— 

6 ‘‘(1) REPORTS ON COMPLETED COMMITTEE IN7 VESTIGATIONS.— 

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

9 after the completion of a Committee investiga10 tion of a covered transaction under subsection 

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

12 take any action authorized under subsection (d) 

13 with respect to the transaction, after the end of 

14 15-day period referred to in subsection (d), the 

15 Chairperson or a Vice Chairperson of the Com16 mittee shall submit a written report on the find17 ings or actions of the Committee with respect to 

18 such investigation, the determination of whether 

19 or not to take action under subsection (d), an ex20 planation of the findings under subsection (e), 

21 and the factors considered under subsection (f), 

22 with respect to such transaction, to— 

23 ‘‘(i) the Majority Leader and the Mi24 nority Leader of the Senate; 

25 ‘‘(ii) the Speaker and the Minority 

26 Leader of the House of Representatives; and 

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1 ‘‘(iii) the chairman and ranking mem2 ber of each committee of the House of Rep3 resentatives and the Senate with jurisdic4 tion over any aspect of the covered trans5 action and its possible effects on national 

6 security, including the Committee on For7 eign Affairs, the Committee on Financial 

8 Services, and the Committee on Energy and 

9 Commerce of the House of Representatives. 

10 ‘‘(B) NOTICE AND BRIEFING REQUIRE11 MENT.—If a written request for a briefing on a 

12 covered transaction is submitted to the Com13 mittee by any Senator or Member of Congress 

14 who receives a report on the transaction under 

15 subparagraph (A), the Chairperson or a Vice 

16 Chairperson (or such other person as the Chair17 person or a Vice Chairperson may designate) 

18 shall provide 1 classified briefing to each House 

19 of the Congress from which any such briefing re20 quest originates in a secure facility of appro21 priate size and location that shall be open only 

22 to the Majority Leader and the Minority Leader 

23 of the Senate, the Speaker and the Minority 

24 Leader of the House of Representatives, (as the 

25 case may be) the chairman and ranking member 

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1 of each committee of the House of Representa2 tives or the Senate (as the case may be) with ju3 risdiction over any aspect of the covered trans4 action and its possible effects on national secu5 rity, including the Committee on International 

6 Relations, the Committee on Financial Services, 

7 and the Committee on Energy and Commerce of 

8 the House of Representatives, and appropriate 

9 staff members who have security clearance. 

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

11 ‘‘(A) IN GENERAL.—The disclosure of infor12 mation under this subsection shall be consistent 

13 with the requirements of subsection (c). Members 

14 of Congress and staff of either House or any 

15 committee of the Congress shall be subject to the 

16 same limitations on disclosure of information as 

17 are applicable under such subsection. 

18 ‘‘(B) PROPRIETARY INFORMATION.—Propri19 etary information which can be associated with 

20 a particular party to a covered transaction shall 

21 be furnished in accordance with subparagraph 

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

23 when the committee provides assurances of con24 fidentiality, unless such party otherwise consents 

25 in writing to such disclosure.’’. 

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1 (b) ANNUAL REPORT.—Section 721 of the Defense Pro2 duction Act of 1950 (50 U.S.C. App. 2170) is amended by 

3 inserting after subsection (l) (as added by section 6 of this 

4 Act) the following new subsection: 

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

6 ‘‘(1) IN GENERAL.—The Chairperson of the Com7 mittee shall transmit a report to the chairman and 

8 ranking member of each committee of the House of 

9 Representatives and the Senate with jurisdiction over 

10 any aspect of the report, including the Committee on 

11 International Relations, the Committee on Financial 

12 Services, and the Committee on Energy and Com13 merce of the House of Representatives, before July 31 

14 of each year on all the reviews and investigations of 

15 covered transactions completed under subsection (b) 

16 during the 12-month period covered by the report. 

17 ‘‘(2) CONTENTS OF REPORT RELATING TO COV18 ERED TRANSACTIONS.—The report under paragraph 

19 (1) shall contain the following information with re20 spect to each covered transaction: 

21 ‘‘(A) A list of all notices filed and all re22 views or investigations completed during the pe23 riod with basic information on each party to the 

24 transaction, the nature of the business activities 

25 or products of all pertinent persons, along with 

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1 information about the status of the review or in2 vestigation, information on any withdrawal 

3 from the process, any rollcall votes by the Com4 mittee under this section, any extension of time 

5 for any investigation, and any presidential deci6 sion or action under this section. 

7 ‘‘(B) Specific, cumulative, and, as appro8 priate, trend information on the numbers of fil9 ings, investigations, withdrawals, and presi10 dential decisions or actions under this section. 

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

12 information on the business sectors involved in 

13 the filings which have been made, and the coun14 tries from which the investments have originated. 

15 ‘‘(D) Information on whether companies 

16 that withdrew notices to the Committee in ac17 cordance with subsection (b)(1)(C)(ii) have later 

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

19 the transaction. 

20 ‘‘(E) The types of security arrangements 

21 and conditions the Committee has used to miti22 gate national security concerns about a trans23 action. 

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

25 adverse effects of covered transactions on the namstockstill on PROD1PC66 with BILLS

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1 tional security or critical infrastructure of the 

2 United States that the Committee will take into 

3 account in its deliberations during the period be4 fore delivery of the next such report, to the extent 

5 possible. 

6 ‘‘(3) CONTENTS OF REPORT RELATING TO CRIT7 ICAL TECHNOLOGIES.— 

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

9 Congress in its oversight responsibilities with re10 spect to this section, the President and such 

11 agencies as the President shall designate shall in12 clude in the annual report submitted under 

13 paragraph (1) the following: 

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

15 credible evidence of a coordinated strategy 

16 by 1 or more countries or companies to ac17 quire United States companies involved in 

18 research, development, or production of crit19 ical technologies for which the United States 

20 is a leading producer. 

21 ‘‘(ii) An evaluation of whether there 

22 are industrial espionage activities directed 

23 or directly assisted by foreign governments 

24 against private United States companies 

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1 aimed at obtaining commercial secrets re2 lated to critical technologies. 

3 ‘‘(B) CRITICAL TECHNOLOGIES DEFINED.— 

4 For purposes of this paragraph, the term ‘crit5 ical technologies’ means technologies identified 

6 under title VI of the National Science and Tech7 nology Policy, Organization, and Priorities Act 

8 of 1976 or other critical technology, critical com9 ponents, or critical technology items essential to 

10 national defense or national security identified 

11 pursuant to this section. 

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

13 That portion of the annual report under para14 graph (1) that is required by this paragraph 

15 may be classified. An unclassified version of that 

16 portion of the report shall be made available to 

17 the public.’’. 

18 (c) STUDY AND REPORT.— 

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

20 120-day period beginning on the date of the enact21 ment of this Act, the Secretary of the Treasury, in 

22 consultation with the Secretary of State and the Sec23 retary of Commerce, shall conduct a study on invest24 ments in the United States, especially investments in 

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1 critical infrastructure and industries affecting na2 tional security, by— 

3 (A) foreign governments, entities controlled 

4 by or acting on behalf of a foreign government, 

5 or persons of foreign countries which comply 

6 with any boycott of Israel; or 

7 (B) foreign governments, entities controlled 

8 by or acting on behalf of a foreign government, 

9 or persons of foreign countries which do not ban 

10 organizations designated by the Secretary of 

11 State as foreign terrorist organizations. 

12 (2) REPORT.—Before the end of the 30-day pe13 riod beginning upon completion of the study under 

14 paragraph (1) or in the next annual report under sec15 tion 721(m) of the Defense Production Act of 1950 (as 

16 added by subsection (b)), the Secretary of the Treas17 ury shall submit a report to the Congress, for trans18 mittal to all appropriate committees of the Senate 

19 and the House of Representatives, containing the 

20 findings and conclusions of the Secretary with respect 

21 to the study, together with an analysis of the effects 

22 of such investment on the national security of the 

23 United States and on any efforts to address those ef24 fects. 

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1 SEC. 8. CERTIFICATION OF NOTICES AND ASSURANCES. 

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

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

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

5 subsection: 

6 ‘‘(n) CERTIFICATION OF NOTICES AND ASSURANCES.— 

7 Each notice required to be submitted, by a party to a cov8 ered transaction, to the President or the President’s designee 

9 under this section and regulations prescribed under such 

10 section, and any information submitted by any such party 

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

12 pursuant to paragraph (3)(B)(ii) of subsection (l) with re13 spect to the implementation of any mitigation agreement 

14 or condition described in paragraph (1)(A) of such sub15 section, or any material change in circumstances, shall be 

16 accompanied by a written statement by the chief executive 

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

18 notice or information certifying that, to the best of the per19 son’s knowledge and belief— 

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

21 complies with the requirements of this section or such 

22 regulation, agreement, or condition; and 

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

24 complete in all material respects.’’. 

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1 SEC. 9. REGULATIONS. 

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

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

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

5 issuance of regulations to carry out this section. Such regu6 lations shall, to the extent possible, minimize paperwork 

7 burdens and shall to the extent possible coordinate reporting 

8 requirements under this section with reporting require9 ments under any other provision of Federal law.’’. 

10 SEC. 10. EFFECT ON OTHER LAW. 

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

12 (50 U.S.C. App. 2170(i)) is amended to read as follows: 

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

14 section shall be construed as altering or affecting any other 

15 authority, process, regulation, investigation, enforcement 

16 measure, or review provided by or established under any 

17 other provision of Federal law, including the International 

18 Emergency Economic Powers Act, or any other authority 

19 of the President or the Congress under the Constitution of 

20 the United States.’’. 

21 SEC. 11. EFFECTIVE DATE. 

22 The amendments made by this Act shall apply after 

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

24 enactment of this Act. 

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Union Calendar No. 9 

110TH CONGRESS 

1ST SESSION H. R. 556 

[Report No. 110

–24, Part I ] 

A BILL 

To ensure national security while promoting foreign 

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

FEBRUARY 23, 2007 

Committees on Energy and Commerce and Foreign Afto be printed Whole House on the State of the Union and ordered fairs discharged; committed to the Committee of the 

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