II 

Calendar No. 197 

110TH CONGRESS 

1ST SESSION S. 1610 

[Report No. 110–80] 

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 SENATE OF THE UNITED STATES 

JUNE 13, 2007 

Mr. DODD, from the Committee on Banking, Housing, and Urban Affairs, reported the following original bill; which was read twice and placed on the 

calendar 

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, 

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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Foreign Investment and National Security Act of 2007’’. 

4 (b) TABLE OF CONTENTS.—The table of contents for 

5 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. Effective date. 

6 SEC. 2. UNITED STATES SECURITY IMPROVEMENT AMEND7 MENTS; CLARIFICATION OF REVIEW AND IN8 VESTIGATION PROCESS. 

9 Section 721 of the Defense Production Act of 1950 

10 (50 U.S.C. App. 2170) is amended by striking subsections 

11 (a) and (b) and inserting the following: 

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

13 following definitions shall apply: 

14 ‘‘(1) COMMITTEE; CHAIRPERSON.—The terms 

15 ‘Committee’ and ‘chairperson’ mean the Committee 

16 on Foreign Investment in the United States and the 

17 chairperson thereof, respectively. 

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

2 meaning given to such term in regulations which the 

3 Committee shall prescribe. 

4 ‘‘(3) COVERED TRANSACTION.—The term ‘cov5 ered transaction’ means any merger, acquisition, or 

6 takeover, by or with any foreign person which could 

7 result in foreign control of any person engaged in 

8 interstate commerce in the United States. 

9 ‘‘(4) FOREIGN GOVERNMENT-CONTROLLED

10 TRANSACTION.—The term ‘foreign government-con11 trolled transaction’ means any covered transaction 

12 that could result in the control of any person en13 gaged in interstate commerce in the United States 

14 by a foreign government or an entity controlled by 

15 or acting on behalf of a foreign government. 

16 ‘‘(5) CLARIFICATION.—The term ‘national secu17 rity’ shall be construed so as to include those issues 

18 relating to ‘homeland security’, including its applica19 tion to critical infrastructure. 

20 ‘‘(6) CRITICAL INFRASTRUCTURE.—The term 

21 ‘critical infrastructure’ means, subject to rules 

22 issued under this section, any systems and assets, 

23 whether physical or cyber-based, so vital to the 

24 United States that the degradation or destruction of 

25 such systems or assets would have a debilitating immstockstill on PROD1PC66 with BILLS

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1 pact on national security, including national eco2 nomic security and national public health or safety. 

3 ‘‘(7) CRITICAL TECHNOLOGIES.—The term 

4 ‘critical technologies’ means technologies identified 

5 under title VI of the National Science and Tech6 nology Policy, Organization, and Priorities Act of 

7 1976, or other critical technology, critical compo8 nents, or critical technology items essential to na9 tional defense identified pursuant to this section. 

10 ‘‘(8) LEAD AGENCY.—The term ‘lead agency’ 

11 means the agency, or agencies, designated as the 

12 lead agency or agencies pursuant to subsection 

13 (k)(4) for the review of a transaction. 

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

16 ‘‘(1) NATIONAL SECURITY REVIEWS.— 

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

19 covered transaction, or pursuant to a unilateral 

20 notification initiated under subparagraph (D) 

21 with respect to any covered transaction, the 

22 President, acting through the Committee— 

23 ‘‘(i) shall review the covered trans24 action to determine the effects of the 

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1 transaction on the national security of the 

2 United States; and 

3 ‘‘(ii) shall consider the factors speci4 fied in subsection (f) for such purpose, as 

5 appropriate. 

6 ‘‘(B) CONTROL BY FOREIGN GOVERN7 MENT.—If the Committee determines that the 

8 covered transaction is a foreign government9 controlled transaction, the Committee shall con10 duct an investigation of the transaction under 

11 paragraph (2). 

12 ‘‘(C) WRITTEN NOTICE.— 

13 ‘‘(i) IN GENERAL.—Any party or par14 ties to any covered transaction may initiate 

15 a review of the transaction under this 

16 paragraph by submitting a written notice 

17 of the transaction to the Chairperson of 

18 the Committee. 

19 ‘‘(ii) WITHDRAWAL OF NOTICE.—No 

20 covered transaction for which a notice was 

21 submitted under clause (i) may be with22 drawn from review, unless a written re23 quest for such withdrawal is submitted to 

24 the Committee by any party to the trans25 action and approved by the Committee. 

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1 ‘‘(iii) CONTINUING DISCUSSIONS.—A 

2 request for withdrawal under clause (ii) 

3 shall not be construed to preclude any 

4 party to the covered transaction from con5 tinuing informal discussions with the Com6 mittee or any member thereof regarding 

7 possible resubmission for review pursuant 

8 to this paragraph. 

9 ‘‘(D) UNILATERAL INITIATION OF RE10 VIEW.—Subject to subparagraph (F), the Presi11 dent or the Committee may initiate a review 

12 under subparagraph (A) of— 

13 ‘‘(i) any covered transaction; 

14 ‘‘(ii) any covered transaction that has 

15 previously been reviewed or investigated 

16 under this section, if any party to the 

17 transaction submitted false or misleading 

18 material information to the Committee in 

19 connection with the review or investigation 

20 or omitted material information, including 

21 material documents, from information sub22 mitted to the Committee; or 

23 ‘‘(iii) any covered transaction that has 

24 previously been reviewed or investigated 

25 under this section, if— 

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1 ‘‘(I) any party to the transaction 

2 or the entity resulting from con3 summation of the transaction inten4 tionally materially breaches a mitiga5 tion agreement or condition described 

6 in subsection (l)(1)(A); 

7 ‘‘(II) such breach is certified to 

8 the Committee by the lead department 

9 or agency monitoring and enforcing 

10 such agreement or condition as an in11 tentional material breach; and 

12 ‘‘(III) the Committee determines 

13 that there are no other remedies or 

14 enforcement tools available to address 

15 such breach. 

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

17 paragraph shall be completed before the end of 

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

19 acceptance of written notice under subpara20 graph (C) by the chairperson, or beginning on 

21 the date of the initiation of the review in ac22 cordance with subparagraph (D), as applicable. 

23 ‘‘(F) LIMIT ON DELEGATION OF CERTAIN

24 AUTHORITY.—The authority of the Committee 

25 to initiate a review under subparagraph (D) 

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1 may not be delegated to any person, other than 

2 the Deputy Secretary or an appropriate Under 

3 Secretary of the department or agency rep4 resented on the Committee. 

5 ‘‘(2) NATIONAL SECURITY INVESTIGATIONS.— 

6 ‘‘(A) IN GENERAL.—In each case described 

7 in subparagraph (B) the President, acting 

8 through the Committee, shall immediately con9 duct an investigation of the effects of a covered 

10 transaction on the national security of the 

11 United States, and take any necessary actions 

12 in connection with the transaction to protect 

13 the national security of the United States. 

14 ‘‘(B) APPLICABILITY.—Subparagraph (A) 

15 shall apply in each case in which— 

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

17 under paragraph (1) results in a deter18 mination that— 

19 ‘‘(I) the transaction threatens to 

20 impair the national security of the 

21 United States and that threat has not 

22 been mitigated during or prior to the 

23 review of a covered transaction under 

24 paragraph (1); 

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1 ‘‘(II) the transaction is a foreign 

2 government-controlled transaction; or 

3 ‘‘(III) the transaction would re4 sult in control of any critical infra5 structure of or within the United 

6 States by, with, or on behalf of any 

7 foreign person, if the Committee de8 termines that the transaction could 

9 impair national security, and that 

10 such impairment to national security 

11 has not been mitigated by assurances 

12 provided or renewed with the approval 

13 of the Committee, as described in sub14 section (l), during the review period 

15 under paragraph (1); or 

16 ‘‘(ii) the lead agency recommends, and 

17 the Committee concurs, that an investiga18 tion be undertaken. 

19 ‘‘(C) TIMING.—Any investigation under 

20 subparagraph (A) shall be completed before the 

21 end of the 45-day period beginning on the date 

22 on which the investigation commenced. 

23 ‘‘(D) EXCEPTION.— 

24 ‘‘(i) IN GENERAL.—Notwithstanding 

25 subparagraph (B)(i), an investigation of a 

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1 foreign government-controlled transaction 

2 described in subclause (II) of subpara3 graph (B)(i) or a transaction involving 

4 critical infrastructure described in sub5 clause (III) of subparagraph (B)(i) shall 

6 not be required under this paragraph, if 

7 the Secretary of the Treasury and the head 

8 of the lead agency jointly determine, on the 

9 basis of the review of the transaction 

10 under paragraph (1), that the transaction 

11 will not impair the national security of the 

12 United States. 

13 ‘‘(ii) NONDELEGATION.—The author14 ity of the Secretary or the head of an 

15 agency referred to in clause (i) may not be 

16 delegated to any person, other than the 

17 Deputy Secretary of the Treasury or the 

18 deputy head (or the equivalent thereof) of 

19 the lead agency, respectively. 

20 ‘‘(E) GUIDANCE ON CERTAIN TRANS21 ACTIONS WITH NATIONAL SECURITY IMPLICA22 TIONS.—The Chairperson shall, not later than 

23 180 days after the date of enactment of the 

24 Foreign Investment and National Security Act 

25 of 2007, publish in the Federal Register guidmstockstill on PROD1PC66 with BILLS

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1 ance on the types of transactions that the Com2 mittee has reviewed and that have presented 

3 national security considerations, including 

4 transactions that may constitute covered trans5 actions that would result in control of critical 

6 infrastructure relating to United States na7 tional security by a foreign government or an 

8 entity controlled by or acting on behalf of a for9 eign government. 

10 ‘‘(3) CERTIFICATIONS TO CONGRESS.— 

11 ‘‘(A) CERTIFIED NOTICE AT COMPLETION

12 OF REVIEW.—Upon completion of a review 

13 under subsection (b) that concludes action 

14 under this section, the chairperson and the 

15 head of the lead agency shall transmit a cer16 tified notice to the members of Congress speci17 fied in subparagraph (C)(iii). 

18 ‘‘(B) CERTIFIED REPORT AT COMPLETION

19 OF INVESTIGATION.—As soon as is practicable 

20 after completion of an investigation under sub21 section (b) that concludes action under this sec22 tion, the chairperson and the head of the lead 

23 agency shall transmit to the members of Con24 gress specified in subparagraph (C)(iii) a cer25 tified written report (consistent with the remstockstill on PROD1PC66 with BILLS

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1 quirements of subsection (c)) on the results of 

2 the investigation, unless the matter under inves3 tigation has been sent to the President for deci4 sion. 

5 ‘‘(C) CERTIFICATION PROCEDURES.— 

6 ‘‘(i) IN GENERAL.—Each certified no7 tice and report required under subpara8 graphs (A) and (B), respectively, shall be 

9 submitted to the members of Congress 

10 specified in clause (iii), and shall include— 

11 ‘‘(I) a description of the actions 

12 taken by the Committee with respect 

13 to the transaction; and 

14 ‘‘(II) identification of the deter15 minative factors considered under 

16 subsection (f). 

17 ‘‘(ii) CONTENT OF CERTIFICATION.— 

18 Each certified notice and report required 

19 under subparagraphs (A) and (B), respec20 tively, shall be signed by the chairperson 

21 and the head of the lead agency, and shall 

22 state that, in the determination of the 

23 Committee, there are no unresolved na24 tional security concerns with the transmstockstill on PROD1PC66 with BILLS

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1 action that is the subject of the notice or 

2 report. 

3 ‘‘(iii) MEMBERS OF CONGRESS.—Each 

4 certified notice and report required under 

5 subparagraphs (A) and (B), respectively, 

6 shall be transmitted to— 

7 ‘‘(I) the Majority Leader and the 

8 Minority Leader of the Senate; 

9 ‘‘(II) the chair and ranking mem10 ber of the Committee on Banking, 

11 Housing, and Urban Affairs of the 

12 Senate and of any committee of the 

13 Senate having oversight over the lead 

14 agency; 

15 ‘‘(III) the Speaker and the Mi16 nority Leader of the House of Rep17 resentatives; and 

18 ‘‘(IV) the chair and ranking 

19 member of the Committee on Finan20 cial Services of the House of Rep21 resentatives and of any committee of 

22 the House of Representatives having 

23 oversight over the lead agency. 

24 ‘‘(iv) TRANSMITTAL TO OTHER MEM25 BERS OF CONGRESS.—The Majority Leadmstockstill on PROD1PC66 with BILLS

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1 er or the Minority Leader, in the case of 

2 the Senate, and the Speaker or the Minor3 ity Leader, in the case of the House of 

4 Representatives, may provide the certified 

5 notices and reports required under sub6 paragraphs (A) and (B), respectively, re7 garding a transaction involving critical in8 frastructure— 

9 ‘‘(I) in the case of the Senate, to 

10 members of the Senate from the State 

11 in which such critical infrastructure is 

12 located; and 

13 ‘‘(II) in the case of the House of 

14 Representatives, to a member from a 

15 Congressional District in which such 

16 critical infrastructure is located. 

17 ‘‘(v) SIGNATURES; LIMIT ON DELEGA18 TION.— 

19 ‘‘(I) IN GENERAL.—Each cer20 tified notice and report required under 

21 subparagraphs (A) and (B), respec22 tively, shall be signed by the chair23 person and the head of the lead agen24 cy, which signature requirement may 

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1 only be delegated in accordance with 

2 subclause (II). 

3 ‘‘(II) LIMITATION ON DELEGA4 TION OF CERTIFICATIONS.—The 

5 chairperson and the head of the lead 

6 agency may delegate the signature re7 quirement under subclause (I)— 

8 ‘‘(aa) only to an employee of 

9 the Department of the Treasury 

10 (in the case of the Secretary of 

11 the Treasury) or to an employee 

12 of the lead agency (in the case of 

13 the lead agency) who was ap14 pointed by the President, by and 

15 with the advice and consent of 

16 the Senate, with respect to any 

17 notice provided under paragraph 

18 (1) following the completion of a 

19 review under this section; or 

20 ‘‘(bb) only to a Deputy Sec21 retary of the Treasury (in the 

22 case of the Secretary of the 

23 Treasury) or a person serving in 

24 the Deputy position or the equiv25 alent thereof at the lead agency 

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1 (in the case of the lead agency), 

2 with respect to any report pro3 vided under subparagraph (B) 

4 following an investigation under 

5 this section. 

6 ‘‘(4) ANALYSIS BY DIRECTOR OF NATIONAL IN7 TELLIGENCE.— 

8 ‘‘(A) IN GENERAL.—The Director of Na9 tional Intelligence shall expeditiously carry out 

10 a thorough analysis of any threat to the na11 tional security of the United States posed by 

12 any covered transaction. The Director of Na13 tional Intelligence shall also seek and incor14 porate the views of all affected or appropriate 

15 intelligence agencies with respect to the trans16 action. 

17 ‘‘(B) TIMING.—The analysis required 

18 under subparagraph (A) shall be provided by 

19 the Director of National Intelligence to the 

20 Committee not later than 20 days after the 

21 date on which notice of the transaction is ac22 cepted by the Committee under paragraph 

23 (1)(C), but the Director may begin the analysis 

24 at any time prior to receipt of the notice, in ac25 cordance with otherwise applicable law. 

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1 ‘‘(C) INTERACTION WITH INTELLIGENCE

2 COMMUNITY.—The Director of National Intel3 ligence shall ensure that the intelligence com4 munity remains engaged in the collection, anal5 ysis, and dissemination to the Committee of any 

6 additional relevant information that may be7 come available during the course of any inves8 tigation conducted under subsection (b) with re9 spect to a transaction. 

10 ‘‘(D) INDEPENDENT ROLE OF DIREC11 TOR.—The Director of National Intelligence 

12 shall be an ex officio member of the Committee, 

13 and shall be provided with all notices received 

14 by the Committee under paragraph (1)(C) re15 garding covered transactions, but shall serve no 

16 policy role on the Committee, other than to pro17 vide analysis under subparagrapha (A) and (C) 

18 in connection with a covered transaction. 

19 ‘‘(5) SUBMISSION OF ADDITIONAL INFORMA20 TION.—No provision of this subsection shall be con21 strued as prohibiting any party to a covered trans22 action from submitting additional information con23 cerning the transaction, including any proposed re24 structuring of the transaction or any modifications 

25 to any agreements in connection with the transmstockstill on PROD1PC66 with BILLS

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1 action, while any review or investigation of the 

2 transaction is ongoing. 

3 ‘‘(6) NOTICE OF RESULTS TO PARTIES.—The 

4 Committee shall notify the parties to a covered 

5 transaction of the results of a review or investigation 

6 under this section, promptly upon completion of all 

7 action under this section. 

8 ‘‘(7) REGULATIONS.—Regulations prescribed 

9 under this section shall include standard procedures 

10 for— 

11 ‘‘(A) submitting any notice of a covered 

12 transaction to the Committee; 

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

14 covered transaction from review; 

15 ‘‘(C) resubmitting a notice of a covered 

16 transaction that was previously withdrawn from 

17 review; and 

18 ‘‘(D) providing notice of the results of a 

19 review or investigation to the parties to the cov20 ered transaction, upon completion of all action 

21 under this section.’’. 

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1 SEC. 3. STATUTORY ESTABLISHMENT OF THE COMMITTEE 

2 ON FOREIGN INVESTMENT IN THE UNITED 

3 STATES. 

4 Section 721 of the Defense Production Act of 1950 

5 (50 U.S.C. App. 2170) is amended by striking subsection 

6 (k) and inserting the following: 

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

8 UNITED STATES.— 

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

10 Foreign Investment in the United States, established 

11 pursuant to Executive Order No. 11858, shall be a 

12 multi agency committee to carry out this section and 

13 such other assignments as the President may des14 ignate. 

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

16 comprised of the following members or the designee 

17 of any such member: 

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

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

20 ‘‘(C) The Secretary of Commerce. 

21 ‘‘(D) The Secretary of Defense. 

22 ‘‘(E) The Secretary of State. 

23 ‘‘(F) The Attorney General of the United 

24 States. 

25 ‘‘(G) The Secretary of Energy. 

26 ‘‘(H) The Secretary of Labor (ex officio). 

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1 ‘‘(I) The Director of National Intelligence 

2 (ex officio). 

3 ‘‘(J) The heads of any other executive de4 partment, agency, or office, as the President 

5 determines appropriate, generally or on a case6 by-case basis. 

7 ‘‘(3) CHAIRPERSON.—The Secretary of the 

8 Treasury shall serve as the chairperson of the Com9 mittee. 

10 ‘‘(4) DESIGNATION OF LEAD AGENCY.—The 

11 Secretary of the Treasury shall designate another 

12 member or members, as appropriate, of the Com13 mittee to be the lead agency or agencies on behalf 

14 of the Committee— 

15 ‘‘(A) for each covered transaction, and for 

16 negotiating any mitigation agreements or other 

17 conditions necessary to protect national secu18 rity; and 

19 ‘‘(B) for all matters related to the moni20 toring of the completed transaction, to ensure 

21 compliance with such agreements or conditions 

22 and with this section. 

23 ‘‘(5) OTHER MEMBERS.—The chairperson shall 

24 consult with the heads of such other Federal depart25 ments, agencies, and independent establishments in 

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1 any review or investigation under subsection (a), as 

2 the chairperson determines to be appropriate, on the 

3 basis of the facts and circumstances of the covered 

4 transaction under review or investigation (or the 

5 designee of any such department or agency head). 

6 ‘‘(6) MEETINGS.—The Committee shall meet 

7 upon the direction of the President or upon the call 

8 of the chairperson, without regard to section 552b of 

9 title 5, United States Code (if otherwise applica10 ble).’’. 

11 SEC. 4. ADDITIONAL FACTORS FOR CONSIDERATION. 

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

13 (50 U.S.C. App. 2170(f)) is amended— 

14 (1) in the matter preceding paragraph (1), by 

15 striking ‘‘among other factors’’; 

16 (2) in paragraph (4)— 

17 (A) in subparagraph (A) by striking ‘‘or’’ 

18 at the end; 

19 (B) by redesignating subparagraph (B) as 

20 subparagraph (C); 

21 (C) by inserting after subparagraph (A) 

22 the following: 

23 ‘‘(B) identified by the Secretary of Defense 

24 as posing a potential regional military threat to 

25 the interests of the United States; or’’; and 

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1 (D) by striking ‘‘and’’ at the end; 

2 (3) in paragraph (5), by striking the period at 

3 the end and inserting a semicolon; and 

4 (4) by adding at the end the following: 

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

7 United States; 

8 ‘‘(7) the potential effects on United States crit9 ical infrastructure, including major energy assets; 

10 ‘‘(8) the potential effects on United States crit11 ical technologies; 

12 ‘‘(9) whether the covered transaction is a for13 eign government-controlled transaction, as deter14 mined under subsection (b)(1)(B); 

15 ‘‘(10) with respect to transactions requiring an 

16 investigation under subsection (b)(1)(B) only, a re17 view of the current assessment of— 

18 ‘‘(A) the adherence of the subject country 

19 to nonproliferation control regimes, including 

20 treaties and multilateral supply guidelines, 

21 which shall draw on, but not be limited to, the 

22 annual report on ‘Adherence to and Compliance 

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1 quired by section 403 of the Arms Control and 

2 Disarmament Act; 

3 ‘‘(B) the relationship of such country with 

4 the United States, specifically on its record on 

5 cooperating in counter-terrorism efforts, which 

6 shall draw on, but not be limited to, the report 

7 of the President to Congress under section 

8 7120 of the Intelligence Reform and Terrorism 

9 Prevention Act of 2004; and 

10 ‘‘(C) the potential for transshipment or di11 version of technologies with military applica12 tions, including an analysis of national export 

13 control laws and regulations; 

14 ‘‘(11) the long-term projection of United States 

15 requirements for sources of energy and other critical 

16 resources and material; and 

17 ‘‘(12) such other factors as the President or the 

18 Committee may determine to be appropriate, gen19 erally or in connection with a specific review or in20 vestigation.’’. 

21 SEC. 5. MITIGATION, TRACKING, AND POSTCONSUMMATION 

22 MONITORING AND ENFORCEMENT. 

23 Section 721 of the Defense Production Act of 1950 

24 (50 U.S.C. App. 2170) is amended by adding at the end 

25 the following: 

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1 ‘‘(l) MITIGATION, TRACKING, AND

2 POSTCONSUMMATION MONITORING AND ENFORCE3 MENT.— 

4 ‘‘(1) MITIGATION.— 

5 ‘‘(A) IN GENERAL.—The Committee or a 

6 lead agency may, on behalf of the Committee, 

7 negotiate, enter into or impose, and enforce any 

8 agreement or condition with any party to the 

9 covered transaction in order to mitigate any 

10 threat to the national security of the United 

11 States that arises as a result of the covered 

12 transaction. 

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

14 Any agreement entered into or condition im15 posed under subparagraph (A) shall be based 

16 on a risk-based analysis, conducted by the Com17 mittee, of the threat to national security of the 

18 covered transaction. 

19 ‘‘(2) TRACKING AUTHORITY FOR WITHDRAWN

20 NOTICES.— 

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

22 of a covered transaction that was submitted to 

23 the Committee under this section is withdrawn 

24 before any review or investigation by the Commstockstill on PROD1PC66 with BILLS

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1 mittee under subsection (b) is completed, the 

2 Committee shall establish, as appropriate— 

3 ‘‘(i) interim protections to address 

4 specific concerns with such transaction 

5 that have been raised in connection with 

6 any such review or investigation pending 

7 any resubmission of any written notice 

8 under this section with respect to such 

9 transaction and further action by the 

10 President under this section; 

11 ‘‘(ii) specific time frames for resub12 mitting any such written notice; and 

13 ‘‘(iii) a process for tracking any ac14 tions that may be taken by any party to 

15 the transaction, in connection with the 

16 transaction, before the notice referred to in 

17 clause (ii) is resubmitted. 

18 ‘‘(B) DESIGNATION OF AGENCY.—The lead 

19 agency, other than any entity of the intelligence 

20 community (as defined in the National Security 

21 Act of 1947), shall, on behalf of the Committee, 

22 ensure that the requirements of subparagraph 

23 (A) with respect to any covered transaction that 

24 is subject to such subparagraph are met. 

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1 ‘‘(3) NEGOTIATION, MODIFICATION, MONI2 TORING, AND ENFORCEMENT.— 

3 ‘‘(A) DESIGNATION OF LEAD AGENCY.— 

4 The lead agency shall negotiate, modify, mon5 itor, and enforce, on behalf of the Committee, 

6 any agreement entered into or condition im7 posed under paragraph (1) with respect to a 

8 covered transaction, based on the expertise with 

9 and knowledge of the issues related to such 

10 transaction on the part of the designated de11 partment or agency. Nothing in this paragraph 

12 shall prohibit other departments or agencies in 

13 assisting the lead agency in carrying out the 

14 purposes of this paragraph. 

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

17 ‘‘(i) MODIFICATION REPORTS.—The 

18 lead agency in connection with any agree19 ment entered into or condition imposed 

20 with respect to a covered transaction 

21 shall— 

22 ‘‘(I) provide periodic reports to 

23 the Committee on any material modi24 fication to any such agreement or conmstockstill on PROD1PC66 with BILLS

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1 dition imposed with respect to the 

2 transaction; and 

3 ‘‘(II) ensure that any material 

4 modification to any such agreement or 

5 condition is reported to the Director 

6 of National Intelligence, the Attorney 

7 General of the United States, and any 

8 other Federal department or agency 

9 that may have a material interest in 

10 such modification. 

11 ‘‘(ii) COMPLIANCE.—The Committee 

12 shall develop and agree upon methods for 

13 evaluating compliance with any agreement 

14 entered into or condition imposed with re15 spect to a covered transaction that will 

16 allow the Committee to adequately assure 

17 compliance, without— 

18 ‘‘(I) unnecessarily diverting Com19 mittee resources from assessing any 

20 new covered transaction for which a 

21 written notice has been filed pursuant 

22 to subsection (b)(1)(C), and if nec23 essary, reaching a mitigation agree24 ment with or imposing a condition on 

25 a party to such covered transaction or 

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1 any covered transaction for which a 

2 review has been reopened for any rea3 son; or 

4 ‘‘(II) placing unnecessary bur5 dens on a party to a covered trans6 action.’’. 

7 SEC. 6. ACTION BY THE PRESIDENT. 

8 Section 721 of the Defense Production Act of 1950 

9 (50 U.S.C. App. 2170) is amended by striking subsections 

10 (d) and (e) and inserting the following: 

11 ‘‘(d) ACTION BY THE PRESIDENT.— 

12 ‘‘(1) IN GENERAL.—Subject to paragraph (4), 

13 the President may take such action for such time as 

14 the President considers appropriate to suspend or 

15 prohibit any covered transaction by or with a foreign 

16 person or government that threatens to impair the 

17 national security of the United States. 

18 ‘‘(2) ANNOUNCEMENT BY THE PRESIDENT.— 

19 The President shall announce the decision on wheth20 er or not to take action pursuant to paragraph (1) 

21 not later than 15 days after the date on which an 

22 investigation described in subsection (b) is com23 pleted. 

24 ‘‘(3) ENFORCEMENT.—The President may di25 rect the Attorney General of the United States to 

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1 seek appropriate relief, including divestment relief, 

2 in the district courts of the United States, in order 

3 to implement and enforce this subsection. 

4 ‘‘(4) FINDINGS OF THE PRESIDENT.—The 

5 President may exercise the authority conferred by 

6 paragraph (1), only if the President finds that— 

7 ‘‘(A) there is credible evidence that leads 

8 the President to believe that the foreign interest 

9 exercising control might take action that threat10 ens to impair the national security; and 

11 ‘‘(B) provisions of law, other than this sec12 tion and the International Emergency Economic 

13 Powers Act, do not, in the judgment of the 

14 President, provide adequate and appropriate 

15 authority for the President to protect the na16 tional security in the matter before the Presi17 dent. 

18 ‘‘(5) FACTORS TO BE CONSIDERED.—For pur19 poses of determining whether to take action under 

20 paragraph (1), the President shall consider, among 

21 other factors each of the factors described in sub22 section (f). 

23 ‘‘(e) ACTIONS AND FINDINGS NONREVIEWABLE.— 

24 The actions of the President under paragraph (1) of sub25 section (d) and the findings of the President under paramstockstill on PROD1PC66 with BILLS

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1 graph (4) of subsection (d) shall not be subject to judicial 

2 review.’’. 

3 SEC. 7. INCREASED OVERSIGHT BY CONGRESS. 

4 (a) REPORT ON ACTIONS.—Section 721(g) of the De5 fense Production Act of 1950 (50 U.S.C. App. 2170(g)) 

6 is amended to read as follows: 

7 ‘‘(g) ADDITIONAL INFORMATION TO CONGRESS; CON8 FIDENTIALITY.— 

9 ‘‘(1) BRIEFING REQUIREMENT ON REQUEST.— 

10 The Committee shall, upon request from any Mem11 ber of Congress specified in subsection (b)(3)(C)(iii), 

12 promptly provide briefings on a covered transaction 

13 for which all action has concluded under this section, 

14 or on compliance with a mitigation agreement or 

15 condition imposed with respect to such transaction, 

16 on a classified basis, if deemed necessary by the sen17 sitivity of the information. Briefings under this 

18 paragraph may be provided to the congressional 

19 staff of such a Member of Congress having appro20 priate security clearance. 

21 ‘‘(2) APPLICATION OF CONFIDENTIALITY PROVI22 SIONS.— 

23 ‘‘(A) IN GENERAL.—The disclosure of in24 formation under this subsection shall be con25 sistent with the requirements of subsection (c). 

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1 Members of Congress and staff of either House 

2 of Congress or any committee of Congress, shall 

3 be subject to the same limitations on disclosure 

4 of information as are applicable under sub5 section (c). 

6 ‘‘(B) PROPRIETARY INFORMATION.—Pro7 prietary information which can be associated 

8 with a particular party to a covered transaction 

9 shall be furnished in accordance with subpara10 graph (A) only to a committee of Congress, and 

11 only when the committee provides assurances of 

12 confidentiality, unless such party otherwise con13 sents in writing to such disclosure.’’. 

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

15 Production Act of 1950 (50 U.S.C. App. 2170) is amend16 ed by adding at the end the following: 

17 ‘‘(m) ANNUAL REPORT TO CONGRESS.— 

18 ‘‘(1) IN GENERAL.—The chairperson shall 

19 transmit a report to the chairman and ranking 

20 member of the committee of jurisdiction in the Sen21 ate and the House of Representatives, before July 

22 31 of each year on all of the reviews and investiga23 tions of covered transactions completed under sub24 section (b) during the 12-month period covered by 

25 the report. 

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1 ‘‘(2) CONTENTS OF REPORT RELATING TO COV2 ERED TRANSACTIONS.—The annual report under 

3 paragraph (1) shall contain the following informa4 tion with respect to each covered transaction for the 

5 reporting period: 

6 ‘‘(A) A list of all notices filed and all re7 views or investigations completed during the pe8 riod, with basic information on each party to 

9 the transaction, the nature of the business ac10 tivities or products of all pertinent persons, 

11 along with information about any withdrawal 

12 from the process, and any decision or action by 

13 the President under this section. 

14 ‘‘(B) Specific, cumulative, and, as appro15 priate, trend information on the numbers of fil16 ings, investigations, withdrawals, and decisions 

17 or actions by the President under this section. 

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

19 trend information on the business sectors in20 volved in the filings which have been made, and 

21 the countries from which the investments have 

22 originated. 

23 ‘‘(D) Information on whether companies 

24 that withdrew notices to the Committee in ac25 cordance with subsection (b)(1)(C)(ii) have 

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1 later refiled such notices, or, alternatively, 

2 abandoned the transaction. 

3 ‘‘(E) The types of security arrangements 

4 and conditions the Committee has used to miti5 gate national security concerns about a trans6 action, including a discussion of the methods 

7 that the Committee and any lead agency are 

8 using to determine compliance with such ar9 rangements or conditions. 

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

11 adverse effects of covered transactions on the 

12 national security or critical infrastructure of the 

13 United States that the Committee will take into 

14 account in its deliberations during the period 

15 before delivery of the next report, to the extent 

16 possible. 

17 ‘‘(3) CONTENTS OF REPORT RELATING TO

18 CRITICAL TECHNOLOGIES.— 

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

20 Congress in its oversight responsibilities with 

21 respect to this section, the President and such 

22 agencies as the President shall designate shall 

23 include in the annual report submitted under 

24 paragraph (1)— 

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1 ‘‘(i) an evaluation of whether there is 

2 credible evidence of a coordinated strategy 

3 by 1 or more countries or companies to ac4 quire United States companies involved in 

5 research, development, or production of 

6 critical technologies for which the United 

7 States is a leading producer; and 

8 ‘‘(ii) an evaluation of whether there 

9 are industrial espionage activities directed 

10 or directly assisted by foreign governments 

11 against private United States companies 

12 aimed at obtaining commercial secrets re13 lated to critical technologies. 

14 ‘‘(B) RELEASE OF UNCLASSIFIED

15 STUDY.—That portion of the annual report 

16 under paragraph (1) that is required by this 

17 paragraph may be classified. An unclassified 

18 version of the report, as appropriate, consistent 

19 with safeguarding national security and privacy, 

20 shall be made available to the public.’’. 

21 (c) STUDY AND REPORT.— 

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

23 120-day period beginning on the date of enactment 

24 of this Act and annually thereafter, the Secretary of 

25 the Treasury, in consultation with the Secretary of 

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1 State and the Secretary of Commerce, shall conduct 

2 a study on foreign direct investments in the United 

3 States, especially investments in critical infrastruc4 ture and industries affecting national security, by— 

5 (A) foreign governments, entities controlled 

6 by or acting on behalf of a foreign government, 

7 or persons of foreign countries which comply 

8 with any boycott of Israel; or 

9 (B) foreign governments, entities con10 trolled by or acting on behalf of a foreign gov11 ernment, or persons of foreign countries which 

12 do not ban organizations designated by the Sec13 retary of State as foreign terrorist organiza14 tions. 

15 (2) REPORT.—Before the end of the 30-day pe16 riod beginning upon the date of completion of each 

17 study under paragraph (1), or in the next annual re18 port under section 721(m) of the Defense Produc19 tion Act of 1950 (as added by this section), the Sec20 retary of the Treasury shall submit a report to the 

21 Congress, for transmittal to all appropriate commit22 tees of the Senate and the House of Representatives, 

23 containing the findings and conclusions of the Sec24 retary with respect to the study described in para25 graph (1), together with an analysis of the effects of 

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1 such investment on the national security of the 

2 United States and on any efforts to address those 

3 effects. 

4 (d) INVESTIGATION BY INSPECTOR GENERAL.— 

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

6 the Department of the Treasury shall conduct an 

7 independent investigation to determine all of the 

8 facts and circumstances concerning each failure of 

9 the Department of the Treasury to make any report 

10 to the Congress that was required under section 

11 721(k) of the Defense Production Act of 1950, as in 

12 effect on the day before the date of enactment of 

13 this Act. 

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

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

16 enactment of this Act, the Inspector General of the 

17 Department of the Treasury shall submit a report 

18 on the investigation under paragraph (1) containing 

19 the findings and conclusions of the Inspector Gen20 eral, to the chairman and ranking member of each 

21 committee of the Senate and the House of Rep22 resentatives having jurisdiction over any aspect of 

23 the report, including, at a minimum, the Committee 

24 on Foreign Relations, the Committee on Banking, 

25 Housing, and Urban Affairs, and the Committee on 

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1 Commerce, Science, and Transportation of the Sen2 ate, and the Committee on Foreign Affairs, the 

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

5 Representatives. 

6 SEC. 8. CERTIFICATION OF NOTICES AND ASSURANCES. 

7 Section 721 of the Defense Production Act of 1950 

8 (50 U.S.C. App. 2170) is amended by adding at the end 

9 the following: 

10 ‘‘(n) CERTIFICATION OF NOTICES AND ASSUR11 ANCES.—Each notice, and any followup information, sub12 mitted under this section and regulations prescribed under 

13 this section to the President or the Committee by a party 

14 to a covered transaction, and any information submitted 

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

16 a report is required pursuant to paragraph (3)(B) of sub17 section (l), with respect to the implementation of any miti18 gation agreement or condition described in paragraph 

19 (1)(A) of subsection (l), or any material change in cir20 cumstances, shall be accompanied by a written statement 

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

22 required to submit such notice or information certifying 

23 that, to the best of the knowledge and belief of that per24 son— 

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

2 complies with the requirements of this section or 

3 such regulation, agreement, or condition; and 

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

5 complete in all material respects.’’. 

6 SEC. 9. REGULATIONS. 

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

8 1950 (50 U.S.C. App. 2170(h)) is amended to read as 

9 follows: 

10 ‘‘(h) REGULATIONS.— 

11 ‘‘(1) IN GENERAL.—The President shall direct, 

12 subject to notice and comment, the issuance of regu13 lations to carry out this section. 

14 ‘‘(2) EFFECTIVE DATE.—Regulations issued 

15 under this section shall become effective not later 

16 than 180 days after the effective date of the Foreign 

17 Investment and National Security Act of 2007. 

18 ‘‘(3) CONTENT.—Regulations issued under this 

19 subsection shall— 

20 ‘‘(A) provide for the imposition of civil 

21 penalties for any violation of this section; 

22 ‘‘(B) to the extent possible— 

23 ‘‘(i) minimize paperwork burdens; and 

24 ‘‘(ii) coordinate reporting require25 ments under this section with reporting remstockstill on PROD1PC66 with BILLS

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1 quirements under any other provision of 

2 Federal law; and 

3 ‘‘(C) provide for an appropriate role for 

4 the Secretary of Labor with respect to mitiga5 tion agreements.’’. 

6 SEC. 10. EFFECT ON OTHER LAW. 

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

8 (50 U.S.C. App. 2170(i)) is amended to read as follows: 

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

10 section shall be construed as altering or affecting any 

11 other authority, process, regulation, investigation, enforce12 ment measure, or review provided by or established under 

13 any other provision of Federal law, including the Inter14 national Emergency Economic Powers Act, or any other 

15 authority of the President or the Congress under the Con16 stitution of the United States.’’. 

17 SEC. 11. EFFECTIVE DATE. 

18 The amendments made by this Act shall apply after 

19 the end of the 90-day period beginning on the date of en20 actment of this Act. 

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Calendar No. 197 

110TH CONGRESS 

1ST SESSION S. 1610 

[Report No. 110

–80] 

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 

JUNE 13, 2007 

Read twice and placed on the calendar 

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