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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 556 Enrolled Bill (ENR)]

        H.R.556

                       One Hundred Tenth Congress

                                 of the

                        United States of America

                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Thursday,
            the fourth day of January, two thousand and seven

                                 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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Foreign Investment 
and National Security Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:
Sec. 1. Short title; table of contents.
Sec. 2. United States security improvement amendments; clarification of 
          review and investigation process.
Sec. 3. Statutory establishment of the Committee on Foreign Investment 
          in the United States.
Sec. 4. Additional factors for consideration.
Sec. 5. Mitigation, tracking, and postconsummation monitoring and 
          enforcement.
Sec. 6. Action by the President.
Sec. 7. Increased oversight by Congress.
Sec. 8. Certification of notices and assurances.
Sec. 9. Regulations.
Sec. 10. Effect on other law.
Sec. 11. Clerical amendments
Sec. 12. Effective date.

SEC. 2. UNITED STATES SECURITY IMPROVEMENT AMENDMENTS; CLARIFICATION OF 
              REVIEW AND INVESTIGATION PROCESS.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended by striking subsections (a) and (b) and inserting the 
following:
    ``(a) Definitions.--For purposes of this section, the following 
definitions shall apply:
        ``(1) Committee; chairperson.--The terms `Committee' and 
    `chairperson' mean the Committee on Foreign Investment in the 
    United States and the chairperson thereof, respectively.
        ``(2) Control.--The term `control' has the meaning given to 
    such term in regulations which the Committee shall prescribe.
        ``(3) Covered transaction.--The term `covered transaction' 
    means any merger, acquisition, or takeover that is proposed or 
    pending after August 23, 1988, by or with any foreign person which 
    could result in foreign control of any person engaged in interstate 
    commerce in the United States.
        ``(4) Foreign government-controlled transaction.--The term 
    `foreign government-controlled transaction' means any covered 
    transaction that could result in the control of any person engaged 
    in interstate commerce in the United States by a foreign government 
    or an entity controlled by or acting on behalf of a foreign 
    government.
        ``(5) Clarification.--The term `national security' shall be 
    construed so as to include those issues relating to `homeland 
    security', including its application to critical infrastructure.
        ``(6) Critical infrastructure.--The term `critical 
    infrastructure' means, subject to rules issued under this section, 
    systems and assets, whether physical or virtual, so vital to the 
    United States that the incapacity or destruction of such systems or 
    assets would have a debilitating impact on national security.
        ``(7) Critical technologies.--The term `critical technologies' 
    means critical technology, critical components, or critical 
    technology items essential to national defense, identified pursuant 
    to this section, subject to regulations issued at the direction of 
    the President, in accordance with subsection (h).
        ``(8) Lead agency.--The term `lead agency' means the agency, or 
    agencies, designated as the lead agency or agencies pursuant to 
    subsection (k)(5) for the review of a transaction.
    ``(b) National Security Reviews and Investigations.--
        ``(1) National security reviews.--
            ``(A) In general.--Upon receiving written notification 
        under subparagraph (C) of any covered transaction, or pursuant 
        to a unilateral notification initiated under subparagraph (D) 
        with respect to any covered transaction, the President, acting 
        through the Committee--
                ``(i) shall review the covered transaction to determine 
            the effects of the transaction on the national security of 
            the United States; and
                ``(ii) shall consider the factors specified in 
            subsection (f) for such purpose, as appropriate.
            ``(B) Control by foreign government.--If the Committee 
        determines that the covered transaction is a foreign 
        government-controlled transaction, the Committee shall conduct 
        an investigation of the transaction under paragraph (2).
            ``(C) Written notice.--
                ``(i) In general.--Any party or parties to any covered 
            transaction may initiate a review of the transaction under 
            this paragraph by submitting a written notice of the 
            transaction to the Chairperson of the Committee.
                ``(ii) Withdrawal of notice.--No covered transaction 
            for which a notice was submitted under clause (i) may be 
            withdrawn from review, unless a written request for such 
            withdrawal is submitted to the Committee by any party to 
            the transaction and approved by the Committee.
                ``(iii) Continuing discussions.--A request for 
            withdrawal under clause (ii) shall not be construed to 
            preclude any party to the covered transaction from 
            continuing informal discussions with the Committee or any 
            member thereof regarding possible resubmission for review 
            pursuant to this paragraph.
            ``(D) Unilateral initiation of review.--Subject to 
        subparagraph (F), the President or the Committee may initiate a 
        review under subparagraph (A) of--
                ``(i) any covered transaction;
                ``(ii) any covered transaction that has previously been 
            reviewed or investigated under this section, if any party 
            to the transaction submitted false or misleading material 
            information to the Committee in connection with the review 
            or investigation or omitted material information, including 
            material documents, from information submitted to the 
            Committee; or
                ``(iii) any covered transaction that has previously 
            been reviewed or investigated under this section, if--

                    ``(I) any party to the transaction or the entity 
                resulting from consummation of the transaction 
                intentionally materially breaches a mitigation 
                agreement or condition described in subsection 
                (l)(1)(A);
                    ``(II) such breach is certified to the Committee by 
                the lead department or agency monitoring and enforcing 
                such agreement or condition as an intentional material 
                breach; and
                    ``(III) the Committee determines that there are no 
                other remedies or enforcement tools available to 
                address such breach.

            ``(E) Timing.--Any review under this paragraph shall be 
        completed before the end of the 30-day period beginning on the 
        date of the acceptance of written notice under subparagraph (C) 
        by the chairperson, or beginning on the date of the initiation 
        of the review in accordance with subparagraph (D), as 
        applicable.
            ``(F) Limit on delegation of certain authority.--The 
        authority of the Committee to initiate a review under 
        subparagraph (D) may not be delegated to any person, other than 
        the Deputy Secretary or an appropriate Under Secretary of the 
        department or agency represented on the Committee.
        ``(2) National security investigations.--
            ``(A) In general.--In each case described in subparagraph 
        (B), the Committee shall immediately conduct an investigation 
        of the effects of a covered transaction on the national 
        security of the United States, and take any necessary actions 
        in connection with the transaction to protect the national 
        security of the United States.
            ``(B) Applicability.--Subparagraph (A) shall apply in each 
        case in which--
                ``(i) a review of a covered transaction under paragraph 
            (1) results in a determination that--

                    ``(I) the transaction threatens to impair the 
                national security of the United States and that threat 
                has not been mitigated during or prior to the review of 
                a covered transaction under paragraph (1);
                    ``(II) the transaction is a foreign government-
                controlled transaction; or
                    ``(III) the transaction would result in control of 
                any critical infrastructure of or within the United 
                States by or on behalf of any foreign person, if the 
                Committee determines that the transaction could impair 
                national security, and that such impairment to national 
                security has not been mitigated by assurances provided 
                or renewed with the approval of the Committee, as 
                described in subsection (l), during the review period 
                under paragraph (1); or

                ``(ii) the lead agency recommends, and the Committee 
            concurs, that an investigation be undertaken.
            ``(C) Timing.--Any investigation under subparagraph (A) 
        shall be completed before the end of the 45-day period 
        beginning on the date on which the investigation commenced.
            ``(D) Exception.--
                ``(i) In general.--Notwithstanding subparagraph (B)(i), 
            an investigation of a foreign government-controlled 
            transaction described in subclause (II) of subparagraph 
            (B)(i) or a transaction involving critical infrastructure 
            described in subclause (III) of subparagraph (B)(i) shall 
            not be required under this paragraph, if the Secretary of 
            the Treasury and the head of the lead agency jointly 
            determine, on the basis of the review of the transaction 
            under paragraph (1), that the transaction will not impair 
            the national security of the United States.
                ``(ii) Nondelegation.--The authority of the Secretary 
            or the head of an agency referred to in clause (i) may not 
            be delegated to any person, other than the Deputy Secretary 
            of the Treasury or the deputy head (or the equivalent 
            thereof) of the lead agency, respectively.
            ``(E) Guidance on certain transactions with national 
        security implications.--The Chairperson shall, not later than 
        180 days after the effective date of the Foreign Investment and 
        National Security Act of 2007, publish in the Federal Register 
        guidance on the types of transactions that the Committee has 
        reviewed and that have presented national security 
        considerations, including transactions that may constitute 
        covered transactions that would result in control of critical 
        infrastructure relating to United States national security by a 
        foreign government or an entity controlled by or acting on 
        behalf of a foreign government.
        ``(3) Certifications to congress.--
            ``(A) Certified notice at completion of review.--Upon 
        completion of a review under subsection (b) that concludes 
        action under this section, the chairperson and the head of the 
        lead agency shall transmit a certified notice to the members of 
        Congress specified in subparagraph (C)(iii).
            ``(B) Certified report at completion of investigation.--As 
        soon as is practicable after completion of an investigation 
        under subsection (b) that concludes action under this section, 
        the chairperson and the head of the lead agency shall transmit 
        to the members of Congress specified in subparagraph (C)(iii) a 
        certified written report (consistent with the requirements of 
        subsection (c)) on the results of the investigation, unless the 
        matter under investigation has been sent to the President for 
        decision.
            ``(C) Certification procedures.--
                ``(i) In general.--Each certified notice and report 
            required under subparagraphs (A) and (B), respectively, 
            shall be submitted to the members of Congress specified in 
            clause (iii), and shall include--

                    ``(I) a description of the actions taken by the 
                Committee with respect to the transaction; and
                    ``(II) identification of the determinative factors 
                considered under subsection (f).

                ``(ii) Content of certification.--Each certified notice 
            and report required under subparagraphs (A) and (B), 
            respectively, shall be signed by the chairperson and the 
            head of the lead agency, and shall state that, in the 
            determination of the Committee, there are no unresolved 
            national security concerns with the transaction that is the 
            subject of the notice or report.
                ``(iii) Members of congress.--Each certified notice and 
            report required under subparagraphs (A) and (B), 
            respectively, shall be transmitted--

                    ``(I) to the Majority Leader and the Minority 
                Leader of the Senate;
                    ``(II) to the chair and ranking member of the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate and of any committee of the Senate having 
                oversight over the lead agency;
                    ``(III) to the Speaker and the Minority Leader of 
                the House of Representatives;
                    ``(IV) to the chair and ranking member of the 
                Committee on Financial Services of the House of 
                Representatives and of any committee of the House of 
                Representatives having oversight over the lead agency; 
                and
                    ``(V) with respect to covered transactions 
                involving critical infrastructure, to the members of 
                the Senate from the State in which the principal place 
                of business of the acquired United States person is 
                located, and the member from the Congressional District 
                in which such principal place of business is located.

                ``(iv) Signatures; limit on delegation.--

                    ``(I) In general.--Each certified notice and report 
                required under subparagraphs (A) and (B), respectively, 
                shall be signed by the chairperson and the head of the 
                lead agency, which signature requirement may only be 
                delegated in accordance with subclause (II).
                    ``(II) Limitation on delegation of 
                certifications.--The chairperson and the head of the 
                lead agency may delegate the signature requirement 
                under subclause (I)--

                        ``(aa) only to an appropriate employee of the 
                    Department of the Treasury (in the case of the 
                    Secretary of the Treasury) or to an appropriate 
                    employee of the lead agency (in the case of the 
                    lead agency) who was appointed by the President, by 
                    and with the advice and consent of the Senate, with 
                    respect to any notice provided under paragraph (1) 
                    following the completion of a review under this 
                    section; or
                        ``(bb) only to a Deputy Secretary of the 
                    Treasury (in the case of the Secretary of the 
                    Treasury) or a person serving in the Deputy 
                    position or the equivalent thereof at the lead 
                    agency (in the case of the lead agency), with 
                    respect to any report provided under subparagraph 
                    (B) following an investigation under this section.
        ``(4) Analysis by director of national intelligence.--
            ``(A) In general.--The Director of National Intelligence 
        shall expeditiously carry out a thorough analysis of any threat 
        to the national security of the United States posed by any 
        covered transaction. The Director of National Intelligence 
        shall also seek and incorporate the views of all affected or 
        appropriate intelligence agencies with respect to the 
        transaction.
            ``(B) Timing.--The analysis required under subparagraph (A) 
        shall be provided by the Director of National Intelligence to 
        the Committee not later than 20 days after the date on which 
        notice of the transaction is accepted by the Committee under 
        paragraph (1)(C), but such analysis may be supplemented or 
        amended, as the Director considers necessary or appropriate, or 
        upon a request for additional information by the Committee. The 
        Director may begin the analysis at any time prior to acceptance 
        of the notice, in accordance with otherwise applicable law.
            ``(C) Interaction with intelligence community.--The 
        Director of National Intelligence shall ensure that the 
        intelligence community remains engaged in the collection, 
        analysis, and dissemination to the Committee of any additional 
        relevant information that may become available during the 
        course of any investigation conducted under subsection (b) with 
        respect to a transaction.
            ``(D) Independent role of director.--The Director of 
        National Intelligence shall be a nonvoting, ex officio member 
        of the Committee, and shall be provided with all notices 
        received by the Committee under paragraph (1)(C) regarding 
        covered transactions, but shall serve no policy role on the 
        Committee, other than to provide analysis under subparagraphs 
        (A) and (C) in connection with a covered transaction.
        ``(5) Submission of additional information.--No provision of 
    this subsection shall be construed as prohibiting any party to a 
    covered transaction from submitting additional information 
    concerning the transaction, including any proposed restructuring of 
    the transaction or any modifications to any agreements in 
    connection with the transaction, while any review or investigation 
    of the transaction is ongoing.
        ``(6) Notice of results to parties.--The Committee shall notify 
    the parties to a covered transaction of the results of a review or 
    investigation under this section, promptly upon completion of all 
    action under this section.
        ``(7) Regulations.--Regulations prescribed under this section 
    shall include standard procedures for--
            ``(A) submitting any notice of a covered transaction to the 
        Committee;
            ``(B) submitting a request to withdraw a covered 
        transaction from review;
            ``(C) resubmitting a notice of a covered transaction that 
        was previously withdrawn from review; and
            ``(D) providing notice of the results of a review or 
        investigation to the parties to the covered transaction, upon 
        completion of all action under this section.''.

SEC. 3. STATUTORY ESTABLISHMENT OF THE COMMITTEE ON FOREIGN INVESTMENT 
              IN THE UNITED STATES.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended by striking subsection (k) and inserting the 
following:
    ``(k) Committee on Foreign Investment in the United States.--
        ``(1) Establishment.--The Committee on Foreign Investment in 
    the United States, established pursuant to Executive Order No. 
    11858, shall be a multi agency committee to carry out this section 
    and such other assignments as the President may designate.
        ``(2) Membership.--The Committee shall be comprised of the 
    following members or the designee of any such member:
            ``(A) The Secretary of the Treasury.
            ``(B) The Secretary of Homeland Security.
            ``(C) The Secretary of Commerce.
            ``(D) The Secretary of Defense.
            ``(E) The Secretary of State.
            ``(F) The Attorney General of the United States.
            ``(G) The Secretary of Energy.
            ``(H) The Secretary of Labor (nonvoting, ex officio).
            ``(I) The Director of National Intelligence (nonvoting, ex 
        officio).
            ``(J) The heads of any other executive department, agency, 
        or office, as the President determines appropriate, generally 
        or on a case-by-case basis.
        ``(3) Chairperson.--The Secretary of the Treasury shall serve 
    as the chairperson of the Committee.
        ``(4) Assistant secretary for the department of the treasury.--
    There shall be established an additional position of Assistant 
    Secretary of the Treasury, who shall be appointed by the President, 
    by and with the advice and consent of the Senate. The Assistant 
    Secretary appointed under this paragraph shall report directly to 
    the Undersecretary of the Treasury for International Affairs. The 
    duties of the Assistant Secretary shall include duties related to 
    the Committee on Foreign Investment in the United States, as 
    delegated by the Secretary of the Treasury under this section.
        ``(5) Designation of lead agency.--The Secretary of the 
    Treasury shall designate, as appropriate, a member or members of 
    the Committee to be the lead agency or agencies on behalf of the 
    Committee--
            ``(A) for each covered transaction, and for negotiating any 
        mitigation agreements or other conditions necessary to protect 
        national security; and
            ``(B) for all matters related to the monitoring of the 
        completed transaction, to ensure compliance with such 
        agreements or conditions and with this section.
        ``(6) Other members.--The chairperson shall consult with the 
    heads of such other Federal departments, agencies, and independent 
    establishments in any review or investigation under subsection (a), 
    as the chairperson determines to be appropriate, on the basis of 
    the facts and circumstances of the covered transaction under review 
    or investigation (or the designee of any such department or agency 
    head).
        ``(7) Meetings.--The Committee shall meet upon the direction of 
    the President or upon the call of the chairperson, without regard 
    to section 552b of title 5, United States Code (if otherwise 
    applicable).''.

SEC. 4. ADDITIONAL FACTORS FOR CONSIDERATION.

    Section 721(f) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2170(f)) is amended--
        (1) in the matter preceding paragraph (1), by striking ``among 
    other factors'';
        (2) in paragraph (4)--
            (A) in subparagraph (A) by striking ``or'' at the end;
            (B) by redesignating subparagraph (B) as subparagraph (C);
            (C) by inserting after subparagraph (A) the following:
            ``(B) identified by the Secretary of Defense as posing a 
        potential regional military threat to the interests of the 
        United States; or''; and
            (D) by striking ``and'' at the end;
        (3) in paragraph (5), by striking the period at the end and 
    inserting a semicolon; and
        (4) by adding at the end the following:
        ``(6) the potential national security-related effects on United 
    States critical infrastructure, including major energy assets;
        ``(7) the potential national security-related effects on United 
    States critical technologies;
        ``(8) whether the covered transaction is a foreign government-
    controlled transaction, as determined under subsection (b)(1)(B);
        ``(9) as appropriate, and particularly with respect to 
    transactions requiring an investigation under subsection (b)(1)(B), 
    a review of the current assessment of--
            ``(A) the adherence of the subject country to 
        nonproliferation control regimes, including treaties and 
        multilateral supply guidelines, which shall draw on, but not be 
        limited to, the annual report on `Adherence to and Compliance 
        with Arms Control, Nonproliferation and Disarmament Agreements 
        and Commitments' required by section 403 of the Arms Control 
        and Disarmament Act;
            ``(B) the relationship of such country with the United 
        States, specifically on its record on cooperating in counter-
        terrorism efforts, which shall draw on, but not be limited to, 
        the report of the President to Congress under section 7120 of 
        the Intelligence Reform and Terrorism Prevention Act of 2004; 
        and
            ``(C) the potential for transshipment or diversion of 
        technologies with military applications, including an analysis 
        of national export control laws and regulations;
        ``(10) the long-term projection of United States requirements 
    for sources of energy and other critical resources and material; 
    and
        ``(11) such other factors as the President or the Committee may 
    determine to be appropriate, generally or in connection with a 
    specific review or investigation.''.

SEC. 5. MITIGATION, TRACKING, AND POSTCONSUMMATION MONITORING AND 
              ENFORCEMENT.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended by adding at the end the following:
    ``(l) Mitigation, Tracking, and Postconsummation Monitoring and 
Enforcement.--
        ``(1) Mitigation.--
            ``(A) In general.--The Committee or a lead agency may, on 
        behalf of the Committee, negotiate, enter into or impose, and 
        enforce any agreement or condition with any party to the 
        covered transaction in order to mitigate any threat to the 
        national security of the United States that arises as a result 
        of the covered transaction.
            ``(B) Risk-based analysis required.--Any agreement entered 
        into or condition imposed under subparagraph (A) shall be based 
        on a risk-based analysis, conducted by the Committee, of the 
        threat to national security of the covered transaction.
        ``(2) Tracking authority for withdrawn notices.--
            ``(A) In general.--If any written notice of a covered 
        transaction that was submitted to the Committee under this 
        section is withdrawn before any review or investigation by the 
        Committee under subsection (b) is completed, the Committee 
        shall establish, as appropriate--
                ``(i) interim protections to address specific concerns 
            with such transaction that have been raised in connection 
            with any such review or investigation pending any 
            resubmission of any written notice under this section with 
            respect to such transaction and further action by the 
            President under this section;
                ``(ii) specific time frames for resubmitting any such 
            written notice; and
                ``(iii) a process for tracking any actions that may be 
            taken by any party to the transaction, in connection with 
            the transaction, before the notice referred to in clause 
            (ii) is resubmitted.
            ``(B) Designation of agency.--The lead agency, other than 
        any entity of the intelligence community (as defined in the 
        National Security Act of 1947), shall, on behalf of the 
        Committee, ensure that the requirements of subparagraph (A) 
        with respect to any covered transaction that is subject to such 
        subparagraph are met.
        ``(3) Negotiation, modification, monitoring, and enforcement.--
            ``(A) Designation of lead agency.--The lead agency shall 
        negotiate, modify, monitor, and enforce, on behalf of the 
        Committee, any agreement entered into or condition imposed 
        under paragraph (1) with respect to a covered transaction, 
        based on the expertise with and knowledge of the issues related 
        to such transaction on the part of the designated department or 
        agency. Nothing in this paragraph shall prohibit other 
        departments or agencies in assisting the lead agency in 
        carrying out the purposes of this paragraph.
            ``(B) Reporting by designated agency.--
                ``(i) Modification reports.--The lead agency in 
            connection with any agreement entered into or condition 
            imposed with respect to a covered transaction shall--

                    ``(I) provide periodic reports to the Committee on 
                any material modification to any such agreement or 
                condition imposed with respect to the transaction; and
                    ``(II) ensure that any material modification to any 
                such agreement or condition is reported to the Director 
                of National Intelligence, the Attorney General of the 
                United States, and any other Federal department or 
                agency that may have a material interest in such 
                modification.

                ``(ii) Compliance.--The Committee shall develop and 
            agree upon methods for evaluating compliance with any 
            agreement entered into or condition imposed with respect to 
            a covered transaction that will allow the Committee to 
            adequately assure compliance, without--

                    ``(I) unnecessarily diverting Committee resources 
                from assessing any new covered transaction for which a 
                written notice has been filed pursuant to subsection 
                (b)(1)(C), and if necessary, reaching a mitigation 
                agreement with or imposing a condition on a party to 
                such covered transaction or any covered transaction for 
                which a review has been reopened for any reason; or
                    ``(II) placing unnecessary burdens on a party to a 
                covered transaction.''.

SEC. 6. ACTION BY THE PRESIDENT.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended by striking subsections (d) and (e) and inserting the 
following:
    ``(d) Action by the President.--
        ``(1) In general.--Subject to paragraph (4), the President may 
    take such action for such time as the President considers 
    appropriate to suspend or prohibit any covered transaction that 
    threatens to impair the national security of the United States.
        ``(2) Announcement by the president.--The President shall 
    announce the decision on whether or not to take action pursuant to 
    paragraph (1) not later than 15 days after the date on which an 
    investigation described in subsection (b) is completed.
        ``(3) Enforcement.--The President may direct the Attorney 
    General of the United States to seek appropriate relief, including 
    divestment relief, in the district courts of the United States, in 
    order to implement and enforce this subsection.
        ``(4) Findings of the president.--The President may exercise 
    the authority conferred by paragraph (1), only if the President 
    finds that--
            ``(A) there is credible evidence that leads the President 
        to believe that the foreign interest exercising control might 
        take action that threatens to impair the national security; and
            ``(B) provisions of law, other than this section and the 
        International Emergency Economic Powers Act, do not, in the 
        judgment of the President, provide adequate and appropriate 
        authority for the President to protect the national security in 
        the matter before the President.
        ``(5) Factors to be considered.--For purposes of determining 
    whether to take action under paragraph (1), the President shall 
    consider, among other factors each of the factors described in 
    subsection (f), as appropriate.
    ``(e) Actions and Findings Nonreviewable.--The actions of the 
President under paragraph (1) of subsection (d) and the findings of the 
President under paragraph (4) of subsection (d) shall not be subject to 
judicial review.''.

SEC. 7. INCREASED OVERSIGHT BY CONGRESS.

    (a) Report on Actions.--Section 721(g) of the Defense Production 
Act of 1950 (50 U.S.C. App. 2170(g)) is amended to read as follows:
    ``(g) Additional Information to Congress; Confidentiality.--
        ``(1) Briefing requirement on request.--The Committee shall, 
    upon request from any Member of Congress specified in subsection 
    (b)(3)(C)(iii), promptly provide briefings on a covered transaction 
    for which all action has concluded under this section, or on 
    compliance with a mitigation agreement or condition imposed with 
    respect to such transaction, on a classified basis, if deemed 
    necessary by the sensitivity of the information. Briefings under 
    this paragraph may be provided to the congressional staff of such a 
    Member of Congress having appropriate security clearance.
        ``(2) Application of confidentiality provisions.--
            ``(A) In general.--The disclosure of information under this 
        subsection shall be consistent with the requirements of 
        subsection (c). Members of Congress and staff of either House 
        of Congress or any committee of Congress, shall be subject to 
        the same limitations on disclosure of information as are 
        applicable under subsection (c).
            ``(B) Proprietary information.--Proprietary information 
        which can be associated with a particular party to a covered 
        transaction shall be furnished in accordance with subparagraph 
        (A) only to a committee of Congress, and only when the 
        committee provides assurances of confidentiality, unless such 
        party otherwise consents in writing to such disclosure.''.
    (b) Annual Report.--Section 721 of the Defense Production Act of 
1950 (50 U.S.C. App. 2170) is amended by adding at the end the 
following:
    ``(m) Annual Report to Congress.--
        ``(1) In general.--The chairperson shall transmit a report to 
    the chairman and ranking member of the committee of jurisdiction in 
    the Senate and the House of Representatives, before July 31 of each 
    year on all of the reviews and investigations of covered 
    transactions completed under subsection (b) during the 12-month 
    period covered by the report.
        ``(2) Contents of report relating to covered transactions.--The 
    annual report under paragraph (1) shall contain the following 
    information, with respect to each covered transaction, for the 
    reporting period:
            ``(A) A list of all notices filed and all reviews or 
        investigations completed during the period, with basic 
        information on each party to the transaction, the nature of the 
        business activities or products of all pertinent persons, along 
        with information about any withdrawal from the process, and any 
        decision or action by the President under this section.
            ``(B) Specific, cumulative, and, as appropriate, trend 
        information on the numbers of filings, investigations, 
        withdrawals, and decisions or actions by the President under 
        this section.
            ``(C) Cumulative and, as appropriate, trend information on 
        the business sectors involved in the filings which have been 
        made, and the countries from which the investments have 
        originated.
            ``(D) Information on whether companies that withdrew 
        notices to the Committee in accordance with subsection 
        (b)(1)(C)(ii) have later refiled such notices, or, 
        alternatively, abandoned the transaction.
            ``(E) The types of security arrangements and conditions the 
        Committee has used to mitigate national security concerns about 
        a transaction, including a discussion of the methods that the 
        Committee and any lead agency are using to determine compliance 
        with such arrangements or conditions.
            ``(F) A detailed discussion of all perceived adverse 
        effects of covered transactions on the national security or 
        critical infrastructure of the United States that the Committee 
        will take into account in its deliberations during the period 
        before delivery of the next report, to the extent possible.
        ``(3) Contents of report relating to critical technologies.--
            ``(A) In general.--In order to assist Congress in its 
        oversight responsibilities with respect to this section, the 
        President and such agencies as the President shall designate 
        shall include in the annual report submitted under paragraph 
        (1)--
                ``(i) an evaluation of whether there is credible 
            evidence of a coordinated strategy by 1 or more countries 
            or companies to acquire United States companies involved in 
            research, development, or production of critical 
            technologies for which the United States is a leading 
            producer; and
                ``(ii) an evaluation of whether there are industrial 
            espionage activities directed or directly assisted by 
            foreign governments against private United States companies 
            aimed at obtaining commercial secrets related to critical 
            technologies.
            ``(B) Release of unclassified study.--All appropriate 
        portions of the annual report under paragraph (1) may be 
        classified. An unclassified version of the report, as 
        appropriate, consistent with safeguarding national security and 
        privacy, shall be made available to the public.''.
    (c) Study and Report.--
        (1) Study required.--Before the end of the 120-day period 
    beginning on the date of enactment of this Act and annually 
    thereafter, the Secretary of the Treasury, in consultation with the 
    Secretary of State and the Secretary of Commerce, shall conduct a 
    study on foreign direct investments in the United States, 
    especially investments in critical infrastructure and industries 
    affecting national security, by--
            (A) foreign governments, entities controlled by or acting 
        on behalf of a foreign government, or persons of foreign 
        countries which comply with any boycott of Israel; or
            (B) foreign governments, entities controlled by or acting 
        on behalf of a foreign government, or persons of foreign 
        countries which do not ban organizations designated by the 
        Secretary of State as foreign terrorist organizations.
        (2) Report.--Before the end of the 30-day period beginning upon 
    the date of completion of each study under paragraph (1), and 
    thereafter in each annual report under section 721(m) of the 
    Defense Production Act of 1950 (as added by this section), the 
    Secretary of the Treasury shall submit a report to Congress, for 
    transmittal to all appropriate committees of the Senate and the 
    House of Representatives, containing the findings and conclusions 
    of the Secretary with respect to the study described in paragraph 
    (1), together with an analysis of the effects of such investment on 
    the national security of the United States and on any efforts to 
    address those effects.
    (d) Investigation by Inspector General.--
        (1) In general.--The Inspector General of the Department of the 
    Treasury shall conduct an independent investigation to determine 
    all of the facts and circumstances concerning each failure of the 
    Department of the Treasury to make any report to the Congress that 
    was required under section 721(k) of the Defense Production Act of 
    1950, as in effect on the day before the date of enactment of this 
    Act.
        (2) Report to the congress.--Before the end of the 270-day 
    period beginning on the date of enactment of this Act, the 
    Inspector General of the Department of the Treasury shall submit a 
    report on the investigation under paragraph (1) containing the 
    findings and conclusions of the Inspector General, to the chairman 
    and ranking member of each committee of the Senate and the House of 
    Representatives having jurisdiction over any aspect of the report, 
    including, at a minimum, the Committee on Foreign Relations, the 
    Committee on Banking, Housing, and Urban Affairs, and the Committee 
    on Commerce, Science, and Transportation of the Senate, and the 
    Committee on Foreign Affairs, the Committee on Financial Services, 
    and the Committee on Energy and Commerce of the House of 
    Representatives.

SEC. 8. CERTIFICATION OF NOTICES AND ASSURANCES.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended by adding at the end the following:
    ``(n) Certification of Notices and Assurances.--Each notice, and 
any followup information, submitted under this section and regulations 
prescribed under this section to the President or the Committee by a 
party to a covered transaction, and any information submitted by any 
such party in connection with any action for which a report is required 
pursuant to paragraph (3)(B) of subsection (l), with respect to the 
implementation of any mitigation agreement or condition described in 
paragraph (1)(A) of subsection (l), or any material change in 
circumstances, shall be accompanied by a written statement by the chief 
executive officer or the designee of the person required to submit such 
notice or information certifying that, to the best of the knowledge and 
belief of that person--
        ``(1) the notice or information submitted fully complies with 
    the requirements of this section or such regulation, agreement, or 
    condition; and
        ``(2) the notice or information is accurate and complete in all 
    material respects.''.

SEC. 9. REGULATIONS.

    Section 721(h) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2170(h)) is amended to read as follows:
    ``(h) Regulations.--
        ``(1) In general.--The President shall direct, subject to 
    notice and comment, the issuance of regulations to carry out this 
    section.
        ``(2) Effective date.--Regulations issued under this section 
    shall become effective not later than 180 days after the effective 
    date of the Foreign Investment and National Security Act of 2007.
        ``(3) Content.--Regulations issued under this subsection 
    shall--
            ``(A) provide for the imposition of civil penalties for any 
        violation of this section, including any mitigation agreement 
        entered into or conditions imposed pursuant to subsection (l);
            ``(B) to the extent possible--
                ``(i) minimize paperwork burdens; and
                ``(ii) coordinate reporting requirements under this 
            section with reporting requirements under any other 
            provision of Federal law; and
            ``(C) provide for an appropriate role for the Secretary of 
        Labor with respect to mitigation agreements.''.

SEC. 10. EFFECT ON OTHER LAW.

    Section 721(i) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2170(i)) is amended to read as follows:
    ``(i) Effect on Other Law.--No provision of this section shall be 
construed as altering or affecting any other authority, process, 
regulation, investigation, enforcement measure, or review provided by 
or established under any other provision of Federal law, including the 
International Emergency Economic Powers Act, or any other authority of 
the President or the Congress under the Constitution of the United 
States.''.

SEC. 11. CLERICAL AMENDMENTS.

    (a) Title 31.--Section 301(e) of title 31, United States Code, is 
amended by striking ``8 Assistant'' and inserting ``9 Assistant''.
    (b) Title 5.--Section 5315 of title 5, United States Code, is 
amended in the item relating to ``Assistant Secretaries of the 
Treasury'', by striking ``(8)'' and inserting ``(9)''.

SEC. 12. EFFECTIVE DATE.

    The amendments made by this Act shall apply after the end of the 
90-day period beginning on the date of enactment of this Act.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
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