investigation and not previously submitted 
to the Committee becomes known or if any 
material change in circumstances to the 
covered transaction has occurred since the 
review or investigation. 
‘‘(B) APPROVAL
OF
REQUEST.—In the 
case of a request referred to in subparagraph 
(A)(ii), the Committee shall determine by con-
sensus whether to grant a request. 
‘‘(6) REGULATIONS.—Regulations prescribed 
under this section shall include standard procedures 
for—
‘‘(A) submitting any notice of a proposed 
or pending covered transaction to the Com-
mittee; 
‘‘(B) submitting a request to withdraw a 
proposed or pending covered transaction from 
review; and 
‘‘(C) resubmitting a notice of proposed or 
pending covered transaction that was previously 
withdrawn from review.’’.
SEC. 3. STATUTORY ESTABLISHMENT OF THE COMMITTEE 
ON FOREIGN INVESTMENT IN THE UNITED 
STATES. 
(a) IN GENERAL.—Section 721 of the Defense Pro-
duction Act of 1950 (50 U.S.C. App. 2170) is amended 
by striking subsection (k) and inserting the following new 
subsection: 
‘‘(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 des-
ignate. 
‘‘(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. 
‘‘(G) The Secretary of Energy.
‘‘(H) The Chairman of the Council of Eco-
nomic Advisors. 
‘‘(I) The United States Trade Representa-
tive. 
‘‘(J) The Director of the Office of Manage-
ment and Budget. 
‘‘(K) The Director of the National Eco-
nomic Council. 
‘‘(L) The Director of the Office of Science 
and Technology Policy. 
‘‘(M) The President’s Assistant for Na-
tional Security Affairs. 
‘‘(N) Any other designee of the President 
from the Executive Office of the President. 
‘‘(3) CHAIRPERSON; VICE CHAIRPERSONS.—The 
Secretary of the Treasury shall be the Chairperson 
of the Committee. The Secretary of Homeland Secu-
rity and the Secretary of Commerce shall be the Vice 
Chairpersons of the Committee. 
‘‘(4) OTHER MEMBERS.—Subject to subsection 
(b)(4)(B), the Chairperson of the Committee shall 
involve the heads of such other Federal departments, 
agencies, and independent establishments in any re-
view or investigation under subsection (b) as the 
Chairperson, after consulting with the Vice Chair-
persons, determines to be appropriate on the basis 
of the facts and circumstances of the transaction 
under investigation (or the designee of any such de-
partment or agency head). 
‘‘(5) MEETINGS.—The Committee shall meet 
upon the direction of the President or upon the call 
of the Chairperson of the Committee without regard 
to section 552b of title 5, United States Code (if 
otherwise applicable). 
‘‘(6) COLLECTION
OF
EVIDENCE.—Subject to 
subsection (c), the Committee may, for the purpose 
of carrying out this section—
‘‘(A) sit and act at such times and places, 
take such testimony, receive such evidence, ad-
minister such oaths; and 
‘‘(B) require the attendance and testimony 
of such witnesses and the production of such 
books, records, correspondence, memoranda, pa-
pers, and documents as the Chairperson of the 
Committee may determine advisable. 
‘‘(7) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to the Sec-
retary of the Treasury for each of fiscal years 2007, 
2008, 2009, and 2010, expressly and solely for the
operations of the Committee that are conducted by 
the Secretary, the sum of $10,000,000.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—
The first sentence of section 721(c) of the Defense Pro-
duction Act of 1950 (50 U.S.C. App. 2170(c)) is amend-
ed—
(1) by striking ‘‘material filed with’’ and insert-
ing ‘‘material, including proprietary business infor-
mation, filed with, or testimony presented to,’’; and 
(2) by striking ‘‘or documentary material’’ the 
2nd place such term appears and inserting ‘‘, docu-
mentary material, or testimony’’. 
SEC. 4. ADDITIONAL FACTORS REQUIRED TO BE CONSID-
ERED. 
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)—
(A) by striking ‘‘may’’ and inserting 
‘‘shall’’; and 
(B) by striking ‘‘among other factors’’; 
(2) by striking ‘‘and’’ at the end of paragraph 
(4); 
(3) by striking the period at the end of para-
graph (5) and inserting a semicolon; and
(4) by adding at the end the following new 
paragraphs: 
‘‘(6) whether the covered transaction has a se-
curity-related impact on critical infrastructure in the 
United States; 
‘‘(7) whether the covered transaction is a for-
eign government-controlled transaction; and 
‘‘(8) such other factors as the President or the 
President’s designee may determine to be appro-
priate, generally or in connection with a specific re-
view or investigation.’’. 
SEC. 5. NONWAIVER OF SOVEREIGN IMMUNITY. 
Section 721(d) of the Defense Production Act of 
1950 (50 U.S.C. App. 2170(d)) is amended by adding at 
the end the following new sentence: ‘‘The United States 
shall not be held liable for any losses or other expenses 
incurred by any party to a covered transaction as a result 
of actions taken under this section after a covered trans-
action has been consummated if the party did not submit 
a written notice of the transaction to the Chairperson of 
the Committee under subsection (b)(1)(C) or did not wait 
until the completion of any review or investigation under 
subsection (b), or the end of the 15-day period referred 
to in this subsection, before consummating the trans-
action.’’.
SEC. 6. MITIGATION, TRACKING, AND POST-CONSUMMA-
TION MONITORING AND ENFORCEMENT. 
Section 721 of the Defense Production Act of 1950 
(50 U.S.C. App. 2170) is amended by inserting after sub-
section (k) (as amended by section 3 of this Act) the fol-
lowing new subsection: 
‘‘(l) 
MITIGATION, 
TRACKING, 
AND 
POSTCONSUMMATION
MONITORING
AND
ENFORCE-
MENT.—
‘‘(1) MITIGATION.—
‘‘(A) IN GENERAL.—The Committee or any 
agency designated by the Chairperson and Vice 
Chairpersons may negotiate, enter into or im-
pose, and enforce any agreement or condition 
with any party to a covered transaction in order 
to mitigate any threat to the national security 
of the United States. 
‘‘(B) RISK-BASED ANALYSIS REQUIRED.—
Any agreement entered into or condition im-
posed under subparagraph (A) shall be based 
on a risk-based analysis of the threat to na-
tional 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 Com-
mittee 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 timeframes for resubmit-
ting any such written notice; and 
‘‘(iii) a process for tracking any ac-
tions 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 
Committee may designate an appropriate Fed-
eral department or agency, other than any enti-
ty of the intelligence community (as defined in 
the National Security Act of 1947), as the lead 
agency to carry out the requirements of sub-
paragraph (A) with respect to any covered 
transaction that is subject to such subpara-
graph. 
‘‘(3) 
NEGOTIATION, 
MODIFICATION, 
MONI-
TORING, AND ENFORCEMENT.—
‘‘(A) DESIGNATION
OF
AGENCY.—The 
Committee shall designate a Federal depart-
ment or agency as the lead agency to negotiate, 
modify, monitor, and enforce any agreement en-
tered into or condition imposed under para-
graph (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. 
‘‘(B) REPORTING BY DESIGNATED AGEN-
CY.—
‘‘(i) IMPLEMENTATION
REPORTS.—
The Federal department or agency des-
ignated by the Committee as a lead agency 
under subparagraph (A) in connection with 
any agreement entered into or condition 
imposed under paragraph (1) with respect 
to a covered transaction shall—
‘‘(I) provide periodic reports to 
the Chairperson and Vice Chair-
persons of the Committee on the im-
plementation of such agreement or 
condition; and 
‘‘(II) require, as appropriate, any 
party to the covered transaction to re-
port to the head of such department 
or agency (or the designee of such de-
partment or agency head) on the im-
plementation or any material change 
in circumstances. 
‘‘(ii) MODIFICATION
REPORTS.—The 
Federal department or agency designated 
by the Committee as a lead agency under 
subparagraph (A) in connection with any 
agreement entered into or condition im-
posed with respect to a covered transaction 
shall—
‘‘(I) provide periodic reports to 
the Chairperson and Vice Chair-
persons of the Committee on any 
modification to any such agreement or 
condition imposed with respect to the 
transaction; and 
‘‘(II) ensure that any significant 
modification to any such agreement or
condition is reported to the Director 
of National Intelligence and to any 
other Federal department or agency 
that may have a material interest in 
such modification.’’. 
SEC. 7. INCREASED OVERSIGHT BY THE CONGRESS. 
(a) REPORT ON ACTIONS.—Section 721(g) of the De-
fense Production Act of 1950 (50 U.S.C. App. 2170) is 
amended to read as follows: 
‘‘(g) REPORTS TO THE CONGRESS.—
‘‘(1) REPORTS ON COMPLETED COMMITTEE IN-
VESTIGATIONS.—
‘‘(A) IN GENERAL.—Not later than 5 days 
after the completion of a Committee investiga-
tion of a covered transaction under subsection 
(b)(2), or, if the President indicates an intent 
to take any action authorized under subsection 
(d) with respect to the transaction, after the 
end of 15-day period referred to in subsection 
(d), the Chairperson or a Vice Chairperson of 
the Committee shall submit a written report on 
the findings or actions of the Committee with 
respect to such investigation, the determination 
of whether or not to take action under sub-
section (d), an explanation of the findings
under subsection (e), and the factors considered 
under subsection (f), with respect to such trans-
action, to—
‘‘(i) the Majority Leader and the Mi-
nority Leader of the Senate; 
‘‘(ii) the Speaker and the Minority 
Leader of the House of Representatives; 
and 
‘‘(iii) the chairman and ranking mem-
ber of each committee of the House of 
Representatives and the Senate with juris-
diction over any aspect of the covered 
transaction and its possible effects on na-
tional security, including the Committee on 
International Relations, the Committee on 
Financial Services, and the Committee on 
Energy and Commerce of the House of 
Representatives. 
‘‘(B) NOTICE
AND
BRIEFING
REQUIRE-
MENT.—If a written request for a briefing on a 
covered transaction is submitted to the Com-
mittee by any Senator or Member of Congress 
who receives a report on the transaction under 
subparagraph (A), the Chairperson or a Vice 
Chairperson (or such other person as the Chair-
person or a Vice Chairperson may designate) 
shall provide 1 classified briefing to each House 
of the Congress from which any such briefing 
request originates in a secure facility of appro-
priate size and location that shall be open only 
to the Majority Leader and the Minority Leader 
of the Senate, the Speaker and the Minority 
Leader of the House of Representatives, (as the 
case may be) the chairman and ranking mem-
ber of each committee of the House of Rep-
resentatives or the Senate (as the case may be) 
with jurisdiction over any aspect of the covered 
transaction and its possible effects on national 
security, including the Committee on Inter-
national Relations, the Committee on Financial 
Services, and the Committee on Energy and 
Commerce of the House of Representatives, and 
appropriate staff members who have security 
clearance. 
‘‘(2) APPLICATION OF OTHER PROVISION.—
‘‘(A) IN GENERAL.—The disclosure of in-
formation under this subsection shall be con-
sistent with the requirements of subsection (c). 
Members of Congress and staff of either House 
or any committee of the Congress shall be sub-
ject to the same limitations on disclosure of in-
formation as are applicable under such sub-
section. 
‘‘(B) PROPRIETARY
INFORMATION.—Pro-
prietary information which can be associated 
with a particular party to a covered transaction 
shall be furnished in accordance with subpara-
graph (A) only to a committee of the Congress 
and only when the committee provides assur-
ances of confidentiality, unless such party oth-
erwise consents in writing to such disclosure.’’. 
(b) SEMI-ANNUAL REPORT.—Section 721 of the De-
fense Production Act of 1950 (50 U.S.C. App. 2170) is 
amended by inserting after subsection (l) (as added by sec-
tion 6 of this Act) the following new subsection: 
‘‘(m) SEMI-ANNUAL REPORT TO THE CONGRESS.—
‘‘(1) IN
GENERAL.—The Chairperson of the 
Committee shall transmit a report to the chairman 
and ranking member of each committee of the 
House of Representatives and the Senate with juris-
diction over any aspect of the report, including the 
Committee on International Relations, the Com-
mittee on Financial Services, and the Committee on 
Energy and Commerce of the House of Representa-
tives, before January 31 and July 31 of each year
on all the reviews and investigations of covered 
transactions conducted under subsection (b) during 
the 6-month period covered by the report. 
‘‘(2) CONTENTS OF REPORT RELATING TO COV-
ERED TRANSACTIONS.—The report under paragraph 
(1) shall contain the following information with re-
spect to each covered transaction: 
‘‘(A) A list of all notices filed and all re-
views or investigations conducted during the pe-
riod 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 the status of the review or 
investigation, information on any withdrawal 
from the process, any rollcall votes by the Com-
mittee under this section, any extension of time 
for any investigation, and any presidential deci-
sion or action under this section. 
‘‘(B) Specific, cumulative, and, as appro-
priate, trend information on the numbers of fil-
ings, investigations, withdrawals, and presi-
dential decisions or actions under this section. 
‘‘(C) Cumulative and, as appropriate, 
trend information on the business sectors in-
volved 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 ac-
cordance with subsection (b)(1)(C)(ii) have 
later re-filed such notices, or, alternatively, 
abandoned the transaction. 
‘‘(E) The types of security arrangements 
and conditions the Committee has used to miti-
gate national security concerns about a trans-
action. 
‘‘(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 such report, to the 
extent possible. 
‘‘(3) CONTENTS
OF
REPORT
RELATING
TO 
CRITICAL TECHNOLOGIES.—
‘‘(A) IN GENERAL.—In order to assist the 
Congress in its oversight responsibilities with 
respect to this section, the President and such 
agencies as the President shall designate shall
include in the semi-annual report submitted 
under paragraph (1) the following: 
‘‘(i) An evaluation of whether there is 
credible evidence of a coordinated strategy 
by 1 or more countries or companies to ac-
quire United States companies involved in 
research, development, or production of 
critical technologies for which the United 
States is a leading producer. 
‘‘(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 re-
lated to critical technologies. 
‘‘(B) 
CRITICAL
TECHNOLOGIES
DE-
FINED.—For purposes of this paragraph, the 
term ‘critical technologies’ means technologies 
identified under title VI of the National Science 
and Technology Policy, Organization, and Pri-
orities Act of 1976 or other critical technology, 
critical components, or critical technology items 
essential to national defense or national security 
identified pursuant to this section.
‘‘(C) 
RELEASE
OF
UNCLASSIFIED 
STUDY.—That portion of the semi-annual re-
port under paragraph (1) that is required by 
this paragraph may be classified. An unclassi-
fied version of that portion of the report shall 
be made available to the public.’’. 
(c) 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 before the date of the enactment of this 
Act). 
(2) REPORT TO THE CONGRESS.—Before the 
end of the 270-day period beginning on the date of 
the enactment of this Act, the Inspector General of 
the Department of the Treasury shall submit a re-
port to the chairman and ranking member of each 
committee of the House of Representatives and the 
Senate with jurisdiction over any aspect of the re-
port, including the Committee on International Rela-
tions, the Committee on Financial Services, and the
Committee on Energy and Commerce of the House 
of Representatives, on the investigation under para-
graph (1) containing the findings and conclusions of 
the Inspector General. 
(d) STUDY AND REPORT.—
(1) STUDY REQUIRED.—Before the end of the 
120-day period beginning on the date of the enact-
ment of this Act, the Secretary of the Treasury, in 
consultation with the Secretary of State and the 
Secretary of Commerce, shall conduct a study on in-
vestments in the United States, especially invest-
ments in critical infrastructure and industries affect-
ing 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 con-
trolled by or acting on behalf of a foreign gov-
ernment, or persons of foreign countries which 
do not ban organizations designated by the Sec-
retary of State as foreign terrorist organiza-
tions. 
(2) REPORT.—Before the end of the 30-day pe-
riod beginning upon completion of the study under
paragraph (1) or in the next semi-annual report 
under section 721(m) of the Defense Production Act 
of 1950 (as added by subsection (b)), the Secretary 
of the Treasury shall submit a report to the Con-
gress, for transmittal to all appropriate committees 
of the Senate and the House of Representatives, 
containing the findings and conclusions of the Sec-
retary with respect to the study, together with an 
analysis of the effects of such investment on the na-
tional security of the United States and on any ef-
forts to address those effects. 
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 inserting after sub-
section (m) (as added by section 7(b) of this Act) the fol-
lowing new subsection: 
‘‘(n) CERTIFICATION
OF
NOTICES
AND
ASSUR-
ANCES.—Each notice required to be submitted, by a party 
to a covered transaction, to the President or the Presi-
dent’s designee under this section and regulations pre-
scribed under such section, and any information submitted 
by any such party in connection with any action for which 
a report is required pursuant to paragraph (3)(B)(ii) of 
subsection (l) with respect to the implementation of any 
mitigation agreement or condition described in paragraph
(1)(A) of such subsection, or any material change in cir-
cumstances, 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 person’s knowledge and belief—
‘‘(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.—The President shall direct the 
issuance of regulations to carry out this section. Such reg-
ulations shall, to the extent possible, minimize paperwork 
burdens and shall to the extent possible coordinate report-
ing requirements under this section with reporting re-
quirements under any other provision of Federal law.’’. 
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, enforce-
ment measure, or review provided by or established under 
any other provision of Federal law, including the Inter-
national Emergency Economic Powers Act, or any other 
authority of the President or the Congress under the Con-
stitution of the United States.’’.
Passed the House of Representatives July 26, 2006. 
Attest:
Clerk.