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) the potential effects of the covered trans-
action on the efforts of the United States to curtail 
human smuggling (and such term, for purposes of 
this paragraph, means any act constituting a viola-
tion of section 274(a) of the Immigration and Na-
tionality Act) and to curtail drug smuggling with re-
gard to any country which is not described in para-
graphs (1) and (2) of section 1003(a) of the Con-
trolled Substances Import and Export Act;
‘‘(8) whether the covered transaction is a for-
eign government-controlled transaction; and 
‘‘(9) 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, on behalf of the Committee, 
negotiate, enter into or impose, and enforce any 
agreement or condition with any party to a cov-
ered transaction in order to mitigate any threat 
to the national security of the United States 
that arises as a result of the transaction. 
‘‘(B) RISK-BASED ANALYSIS REQUIRED.—
Any agreement entered into or condition im-
posed under subparagraph (A) shall be based 
on a risk-based analysis, conducted by the Com-
mittee, 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 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 1 or more appro-
priate Federal departments or agencies, other 
than any entity of the intelligence community 
(as defined in the National Security Act of 
1947), as a lead agency to carry out, on behalf 
of the Committee, the requirements of subpara-
graph (A) with respect to any covered trans-
action that is subject to such subparagraph. 
‘‘(3) 
NEGOTIATION, 
MODIFICATION, 
MONI-
TORING, AND ENFORCEMENT.—
‘‘(A) DESIGNATION
OF
AGENCY.—The 
Committee shall designate 1 or more Federal 
departments or agencies as the lead agency to 
negotiate, modify, monitor, and enforce, on be-
half 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. 
‘‘(B) REPORTING BY DESIGNATED AGEN-
CY.—
‘‘(i) IMPLEMENTATION
REPORTS.—
Each 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) report, as appropriate but 
not less than once in each 6-month
period, to the Chairperson and Vice 
Chairpersons of the Committee on the 
implementation 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.—Any 
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. 
‘‘(iii) COMPLIANCE.—The Committee 
shall develop and agree upon methods for 
evaluating compliance with any agreement 
entered into or condition imposed with re-
spect to a covered transaction that will 
allow the Committee to adequately assure 
compliance without—
‘‘(I) unnecessarily diverting Com-
mittee resources from assessing any 
new covered transaction for which a 
written notice has been filed pursuant 
to subsection (b)(1)(C), and if nec-
essary reaching a mitigation agree-
ment 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 rea-
son; or
‘‘(II) placing unnecessary bur-
dens on a party to a covered trans-
action.’’. 
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; 
‘‘(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, at a minimum, 
the Committee on Foreign Affairs, the 
Committee on Financial Services, and the 
Committee on Energy and Commerce of 
the House of Representatives; and 
‘‘(iv) Senators representing States 
and Members of Congress representing 
congressional districts that would be sig-
nificantly affected by the covered trans-
action. 
‘‘(B) NOTICE
AND
BRIEFING
REQUIRE-
MENT.—If a written request for a briefing on a 
covered transaction, or on compliance with a 
mitigation agreement or condition imposed with
respect to such transaction, is submitted to the 
Committee by any Senator or Member of Con-
gress who receives a report on the transaction 
under subparagraph (A), the Chairperson or a 
Vice Chairperson (or such other person as the 
Chairperson or a Vice Chairperson may des-
ignate) shall provide 1 classified briefing to 
each House of the Congress from which any 
such briefing request originates in a secure fa-
cility of appropriate 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 Represent-
atives, (as the case may be) the chairman and 
ranking member of each committee of the 
House of Representatives or the Senate (as the 
case may be) with jurisdiction over any aspect 
of the covered transaction and its possible ef-
fects on national security, including, at a min-
imum, the Committee on Foreign Affairs, the 
Committee on Financial Services, and the Com-
mittee on Energy and Commerce of the House 
of Representatives, and appropriate staff mem-
bers 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) ANNUAL REPORT.—Section 721 of the Defense 
Production Act of 1950 (50 U.S.C. App. 2170) is amend-
ed by inserting after subsection (l) (as added by section 
6 of this Act) the following new subsection: 
‘‘(m) 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, at 
a minimum, the Committee on Foreign Affairs, the 
Committee on Financial Services, and the Com-
mittee on Energy and Commerce of the House of 
Representatives, before July 31 of each year on all 
the reviews and investigations of covered trans-
actions completed under subsection (b) during the 
12-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 completed 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, including a discussion of the methods 
the Committee and any lead departments or 
agencies designated under subsection (l) are 
using to determine compliance with such ar-
rangements 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 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 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 annual report 
under paragraph (1) that is required by this 
paragraph may be classified. An unclassified 
version of that portion of the report 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 the enact-
ment of this Act and annually thereafter, the Sec-
retary of the Treasury, in consultation with the Sec-
retary of State and the Secretary of Commerce, shall 
conduct a study on investments in the United 
States, especially investments in critical infrastruc-
ture 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 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 each study under 
paragraph (1) or in the next 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 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), to-
gether with an analysis of the effects of such invest-
ment 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 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, at a minimum, the Committee on 
Foreign Affairs, the Committee on Financial Serv-
ices, and the Committee on Energy and Commerce 
of the House of Representatives, on the investigation 
under paragraph (1) containing the findings and 
conclusions of the Inspector General. 
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.’’. 
SEC. 11. EFFECTIVE DATE. 
The amendments made by this Act shall apply after 
the end of the 90-day period beginning on the date of the 
enactment of this Act. 
Passed the House of Representatives February 28, 
2007. 
Attest:
Clerk.