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. 
H. R. 556—2 

‘‘(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 
H. R. 556—3 

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 governmentcontrolled transaction; or 
H. R. 556—4 

‘‘(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 INVESTIGA- TION.—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 
H. R. 556—5 

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 CERTIFI- CATIONS.—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 
H. R. 556—6 

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. 
H. R. 556—7 

‘‘(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 
H. R. 556—8 

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 counterterrorism efforts, which shall draw on, but not be limited 
H. R. 556—9 

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.— 
H. R. 556—10 

‘‘(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. 
H. R. 556—11 

‘‘(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.’’. 
H. R. 556—12 

(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 
H. R. 556—13 

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 
H. R. 556—14 

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 
H. R. 556—15 

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.