H. R. 5515—557 
‘‘(4) APPLICABILITY OF USE OF INFORMATION PROVISIONS.— 
The use of information provisions of sections 106, 305, 405, 
and 706 of the Foreign Intelligence Surveillance Act of 1978 
(50 U.S.C. 1806, 1825, 1845, and 1881e) shall not apply in 
a civil action brought under this subsection.’’. 
SEC. 1716. CONSIDERATIONS FOR REGULATIONS. 
Section 721(h) of the Defense Production Act of 1950 (50 U.S.C. 
4565(h)) is amended— 
(1) by striking paragraph (2); 
(2) by redesignating paragraph (3) as paragraph (2); and 
(3) in paragraph (2), as redesignated— 
(A) in subparagraph (A), by striking ‘‘including any 
mitigation’’ and all that follows through ‘‘subsection (l)’’ 
and inserting ‘‘including any mitigation agreement entered 
into, conditions imposed, or order issued pursuant to this 
section’’; 
(B) in subparagraph (B)(ii), by striking ‘‘and’’ at the 
end; 
(C) in subparagraph (C), by striking the period at 
the end and inserting ‘‘; and’’; and 
(D) by adding at the end the following: 
‘‘(D) provide that, in any review or investigation of 
a covered transaction conducted by the Committee under 
subsection (b), the Committee should— 
‘‘(i) consider the factors specified in subsection (f); 
and 
‘‘(ii) as appropriate, require parties to provide to 
the Committee the information necessary to consider 
such factors.’’. 
SEC. 1717. MEMBERSHIP AND STAFF OF COMMITTEE. 
(a) HIRING AUTHORITY.—Section 721(k) of the Defense Produc-
tion Act of 1950 (50 U.S.C. 4565(k)) is amended by striking para-
graph (4) and inserting the following: 
‘‘(4) HIRING AUTHORITY.— 
‘‘(A) SENIOR OFFICIALS.— 
‘‘(i) IN GENERAL.—Each member of the Committee 
shall designate an Assistant Secretary, or an equiva-
lent official, who is appointed by the President, by 
and with the advice and consent of the Senate, to 
carry out such duties related to the Committee as 
the member of the Committee may delegate. 
‘‘(ii) DEPARTMENT OF THE TREASURY.— 
‘‘(I) IN GENERAL.—There shall be established 
in the Office of International Affairs at the Depart-
ment of the Treasury 2 additional positions of 
Assistant Secretary of the Treasury, who shall be 
appointed by the President, by and with the advice 
and consent of the Senate, to carry out such duties 
related to the Committee as the Secretary of the 
Treasury may delegate, consistent with this sec-
tion. 
‘‘(II) ASSISTANT
SECRETARY
FOR
INVESTMENT 
SECURITY.—One of the positions of Assistant Sec-
retary of the Treasury authorized under subclause 
(I) shall be the Assistant Secretary for Investment 
Security, whose duties shall be principally related
H. R. 5515—558 
to the Committee, as delegated by the Secretary 
of the Treasury under this section. 
‘‘(B) SPECIAL
HIRING
AUTHORITY.—The heads of the 
departments and agencies represented on the Committee 
may appoint, without regard to the provisions of sections 
3309 through 3318 of title 5, United States Code, can-
didates directly to positions in the competitive service (as 
defined in section 2102 of that title) in their respective 
departments and agencies. The primary responsibility of 
positions authorized under the preceding sentence shall 
be to administer this section.’’. 
(b) PROCEDURES
FOR RECUSAL
OF MEMBERS
OF COMMITTEE 
FOR CONFLICTS OF INTEREST.—Not later than 90 days after the 
date of the enactment of this Act, the Committee on Foreign Invest-
ment in the United States shall— 
(1) establish procedures for the recusal of any member 
of the Committee that has a conflict of interest with respect 
to a covered transaction (as defined in section 721(a) of the 
Defense Production Act of 1950, as amended by section 1703); 
(2) submit to the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Financial 
Services of the House of Representatives a report describing 
those procedures; and 
(3) brief the committees specified in paragraph (1) on the 
report required by paragraph (2). 
SEC. 1718. ACTIONS BY THE COMMITTEE TO ADDRESS NATIONAL SECU-
RITY RISKS. 
Section 721(l) of the Defense Production Act of 1950 (50 U.S.C. 
4565(l)) is amended— 
(1) in the subsection heading, by striking ‘‘MITIGATION, 
TRACKING, 
AND
POSTCONSUMMATION
MONITORING
AND 
ENFORCEMENT’’ and inserting ‘‘ACTIONS BY THE COMMITTEE TO 
ADDRESS NATIONAL SECURITY RISKS’’; 
(2) by redesignating paragraphs (1), (2), and (3) as para-
graphs (3), (5), and (6), respectively; 
(3) by inserting before paragraph (3), as redesignated by 
paragraph (2), the following: 
‘‘(1) SUSPENSION OF TRANSACTIONS.—The Committee, acting 
through the chairperson, may suspend a proposed or pending 
covered transaction that may pose a risk to the national security 
of the United States for such time as the covered transaction 
is under review or investigation under subsection (b). 
‘‘(2) REFERRAL TO PRESIDENT.—The Committee may, at any 
time during the review or investigation of a covered transaction 
under subsection (b), complete the action of the Committee 
with respect to the transaction and refer the transaction to 
the President for action pursuant to subsection (d).’’; 
(4) in paragraph (3), as redesignated by paragraph (2)— 
(A) in subparagraph (A)— 
(i) in the subparagraph heading, by striking ‘‘IN 
GENERAL’’ and inserting ‘‘AGREEMENTS
AND
CONDI-
TIONS’’; 
(ii) by striking ‘‘The Committee’’ and inserting the 
following: 
‘‘(i) IN GENERAL.—The Committee’’; 
(iii) by striking ‘‘threat’’ and inserting ‘‘risk’’; and
H. R. 5515—559 
(iv) by adding at the end the following: 
‘‘(ii) ABANDONMENT OF TRANSACTIONS.—If a party 
to a covered transaction has voluntarily chosen to 
abandon the transaction, the Committee or lead 
agency, as the case may be, may negotiate, enter into 
or impose, and enforce any agreement or condition 
with any party to the covered transaction for purposes 
of effectuating such abandonment and mitigating any 
risk to the national security of the United States that 
arises as a result of the covered transaction. 
‘‘(iii) AGREEMENTS AND CONDITIONS RELATING TO 
COMPLETED
TRANSACTIONS.—The Committee or lead 
agency, as the case may be, may negotiate, enter into 
or impose, and enforce any agreement or condition 
with any party to a completed covered transaction 
in order to mitigate any interim risk to the national 
security of the United States that may arise as a 
result of the covered transaction until such time that 
the Committee has completed action pursuant to sub-
section (b) or the President has taken action pursuant 
to subsection (d) with respect to the transaction.’’; and 
(B) by striking subparagraph (B) and inserting the 
following: 
‘‘(B) TREATMENT OF OUTDATED AGREEMENTS OR CONDI-
TIONS.—The chairperson and the head of the lead agency 
shall periodically review the appropriateness of an agree-
ment or condition imposed under subparagraph (A) and 
terminate, phase out, or otherwise amend the agreement 
or condition if a threat no longer requires mitigation 
through the agreement or condition. 
‘‘(C) LIMITATIONS.—An agreement may not be entered 
into or condition imposed under subparagraph (A) with 
respect to a covered transaction unless the Committee 
determines that the agreement or condition resolves the 
national security concerns posed by the transaction, taking 
into consideration whether the agreement or condition is 
reasonably calculated to— 
‘‘(i) be effective; 
‘‘(ii) allow for compliance with the terms of the 
agreement or condition in an appropriately verifiable 
way; and 
‘‘(iii) enable effective monitoring of compliance with 
and enforcement of the terms of the agreement or 
condition. 
‘‘(D) JURISDICTION.—The provisions of section 706(b) 
shall apply to any mitigation agreement entered into or 
condition imposed under subparagraph (A).’’; 
(5) by inserting after paragraph (3), as redesignated by 
paragraph (2), the following: 
‘‘(4) RISK-BASED ANALYSIS REQUIRED.— 
‘‘(A) IN GENERAL.—Any determination of the Committee 
to suspend a covered transaction under paragraph (1), to 
refer a covered transaction to the President under para-
graph (2), or to negotiate, enter into or impose, or enforce 
any agreement or condition under paragraph (3)(A) with 
respect to a covered transaction, shall be based on a risk- 
based analysis, conducted by the Committee, of the effects
H. R. 5515—560 
on the national security of the United States of the covered 
transaction, which shall include an assessment of the 
threat, vulnerabilities, and consequences to national secu-
rity related to the transaction. 
‘‘(B) ACTIONS OF MEMBERS OF THE COMMITTEE.— 
‘‘(i) IN GENERAL.—Any member of the Committee 
who concludes that a covered transaction poses an 
unresolved national security concern shall recommend 
to the Committee that the Committee suspend the 
transaction under paragraph (1), refer the transaction 
to the President under paragraph (2), or negotiate, 
enter into or impose, or enforce any agreement or 
condition under paragraph (3)(A) with respect to the 
transaction. In making that recommendation, the 
member shall propose or contribute to the risk-based 
analysis required by subparagraph (A). 
‘‘(ii) FAILURE TO REACH CONSENSUS.—If the Com-
mittee fails to reach consensus with respect to a rec-
ommendation under clause (i) regarding a covered 
transaction, the members of the Committee who sup-
port an alternative recommendation shall produce— 
‘‘(I) a written statement justifying the alter-
native recommendation; and 
‘‘(II) as appropriate, a risk-based analysis that 
supports the alternative recommendation. 
‘‘(C) DEFINITIONS.—For purposes of subparagraph (A), 
the terms ‘threat’, ‘vulnerabilities’, and ‘consequences to 
national security’ shall have the meanings given those 
terms by the Committee by regulation.’’; 
(6) in paragraph (5)(B), as redesignated by paragraph (2), 
by striking ‘‘(as defined in the National Security Act of 1947)’’; 
and 
(7) in paragraph (6), as redesignated by paragraph (2)— 
(A) in subparagraph (A)— 
(i) by striking ‘‘paragraph (1)’’ and inserting ‘‘para-
graph (3)’’; and 
(ii) by striking the second sentence and inserting 
the following: ‘‘The lead agency may, at its discretion, 
seek and receive the assistance of other departments 
or agencies in carrying out the purposes of this para-
graph.’’; 
(B) in subparagraph (B)— 
(i) by striking ‘‘DESIGNATED AGENCY’’ and all that 
follows through ‘‘The lead agency in connection’’ and 
inserting ‘‘DESIGNATED AGENCY.—The lead agency in 
connection’’; 
(ii) by striking clause (ii); and 
(iii) by redesignating subclauses (I) and (II) as 
clauses (i) and (ii), respectively, and by moving such 
clauses, as so redesignated, 2 ems to the left; and 
(C) by adding at the end the following: 
‘‘(C) COMPLIANCE PLANS.— 
‘‘(i) IN GENERAL.—In the case of a covered trans-
action with respect to which an agreement is entered 
into under paragraph (3)(A), the Committee or lead 
agency, as the case may be, shall formulate, adhere
H. R. 5515—561 
to, and keep updated a plan for monitoring compliance 
with the agreement. 
‘‘(ii) ELEMENTS.—Each plan required by clause (i) 
with respect to an agreement entered into under para-
graph (3)(A) shall include an explanation of— 
‘‘(I) which member of the Committee will have 
primary responsibility for monitoring compliance 
with the agreement; 
‘‘(II) how compliance with the agreement will 
be monitored; 
‘‘(III) how frequently compliance reviews will 
be conducted; 
‘‘(IV) whether an independent entity will be 
utilized under subparagraph (E) to conduct compli-
ance reviews; and 
‘‘(V) what actions will be taken if the parties 
fail to cooperate regarding monitoring compliance 
with the agreement. 
‘‘(D) EFFECT OF LACK OF COMPLIANCE.—If, at any time 
after a mitigation agreement or condition is entered into 
or imposed under paragraph (3)(A), the Committee or lead 
agency, as the case may be, determines that a party or 
parties to the agreement or condition are not in compliance 
with the terms of the agreement or condition, the Com-
mittee or lead agency may, in addition to the authority 
of the Committee to impose penalties pursuant to sub-
section (h)(3) and to unilaterally initiate a review of any 
covered transaction under subsection (b)(1)(D)(iii)— 
‘‘(i) negotiate a plan of action for the party or 
parties to remediate the lack of compliance, with 
failure to abide by the plan or otherwise remediate 
the lack of compliance serving as the basis for the 
Committee to find a material breach of the agreement 
or condition; 
‘‘(ii) require that the party or parties submit a 
written notice under clause (i) of subsection (b)(1)(C) 
or a declaration under clause (v) of that subsection 
with respect to a covered transaction initiated after 
the date of the determination of noncompliance and 
before the date that is 5 years after the date of the 
determination to the Committee to initiate a review 
of the transaction under subsection (b); or 
‘‘(iii) seek injunctive relief. 
‘‘(E) USE
OF
INDEPENDENT
ENTITIES
TO
MONITOR 
COMPLIANCE.—If the parties to an agreement entered into 
under paragraph (3)(A) enter into a contract with an inde-
pendent entity from outside the United States Government 
for the purpose of monitoring compliance with the agree-
ment, the Committee shall take such action as is necessary 
to prevent a conflict of interest from arising by ensuring 
that the independent entity owes no fiduciary duty to the 
parties. 
‘‘(F) SUCCESSORS
AND
ASSIGNS.—Any agreement or 
condition entered into or imposed under paragraph (3)(A) 
shall be considered binding on all successors and assigns 
unless and until the agreement or condition terminates
H. R. 5515—562 
on its own terms or is otherwise terminated by the Com-
mittee in its sole discretion. 
‘‘(G) ADDITIONAL COMPLIANCE MEASURES.—Subject to 
subparagraphs (A) through (F), 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 Com-
mittee to adequately ensure compliance without unneces-
sarily diverting Committee resources from assessing any 
new covered transaction for which a written notice under 
clause (i) of subsection (b)(1)(C) or declaration under clause 
(v) of that subsection has been filed, and if necessary, 
reaching a mitigation agreement with or imposing a condi-
tion on a party to such covered transaction or any covered 
transaction for which a review has been reopened for any 
reason.’’. 
SEC. 
1719. 
MODIFICATION 
OF 
ANNUAL 
REPORT 
AND 
OTHER 
REPORTING REQUIREMENTS. 
(a) MODIFICATION OF ANNUAL REPORT.—Section 721(m) of the 
Defense Production Act of 1950 (50 U.S.C. 4565(m)) is amended— 
(1) in paragraph (2)— 
(A) by amending subparagraph (A) to read as follows: 
‘‘(A) A list of all notices filed and all reviews or inves-
tigations of covered transactions completed during the 
period, with— 
‘‘(i) a description of the outcome of each review 
or investigation, including whether an agreement was 
entered into or condition was imposed under subsection 
(l)(3)(A) with respect to the transaction being reviewed 
or investigated, and whether the President took any 
action under this section with respect to that trans-
action; 
‘‘(ii) basic information on each party to each such 
transaction; 
‘‘(iii) the nature of the business activities or prod-
ucts of the United States business with which the 
transaction was entered into or intended to be entered 
into; and 
‘‘(iv) information about any withdrawal from the 
process.’’; and 
(B) by adding at the end the following: 
‘‘(G) Statistics on compliance plans conducted and 
actions taken by the Committee under subsection (l)(6), 
including subparagraph (D) of that subsection, during that 
period, a general assessment of the compliance of parties 
with agreements entered into and conditions imposed under 
subsection (l)(3)(A) that are in effect during that period, 
including a description of any actions taken by the Com-
mittee to impose penalties or initiate a unilateral review 
pursuant to subsection (b)(1)(D)(iii), and any recommenda-
tions for improving the enforcement of such agreements 
and conditions. 
‘‘(H) Cumulative and, as appropriate, trend information 
on the number of declarations filed under subsection 
(b)(1)(C)(v), the actions taken by the Committee in response 
to those declarations, the business sectors involved in those
H. R. 5515—563 
declarations, and the countries involved in those declara-
tions. 
‘‘(I) A description of— 
‘‘(i) the methods used by the Committee to identify 
non-notified and non-declared transactions under sub-
section (b)(1)(H); 
‘‘(ii) potential methods to improve such identifica-
tion and the resources required to do so; and 
‘‘(iii) the number of transactions identified through 
the process established under that subsection during 
the reporting period and the number of such trans-
actions flagged for further review. 
‘‘(J) A summary of the hiring practices and policies 
of the Committee pursuant to subsection (k)(4). 
‘‘(K) A list of the waivers granted by the Committee 
under subsection (b)(1)(C)(v)(IV)(bb)(CC).’’; 
(2) in paragraph (3)— 
(A) by striking ‘‘CRITICAL TECHNOLOGIES’’ and all that 
follows through ‘‘In order to assist’’ and inserting ‘‘CRITICAL 
TECHNOLOGIES.—In order to assist’’; 
(B) by striking subparagraph (B); 
(C) by redesignating clauses (i) and (ii) as subpara-
graphs (A) and (B), respectively, and by moving such sub-
paragraphs, as so redesignated, 2 ems to the left; 
(D) in subparagraph (A), as redesignated by subpara-
graph (C), by striking ‘‘; and’’ and inserting a semicolon; 
(E) in subparagraph (B), as so redesignated, by striking 
the period and inserting ‘‘; and’’; and 
(F) by adding at the end the following: 
‘‘(C) a description of the technologies recommended 
by the chairperson under subsection (a)(6)(B) for identifica-
tion under the interagency process set forth in section 
1758(a) of the Export Control Reform Act of 2018.’’. 
(3) by adding at the end the following: 
‘‘(4) FORM OF REPORT.— 
‘‘(A) IN
GENERAL.—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. 
‘‘(B) INCLUSION IN CLASSIFIED VERSION.—If the Com-
mittee recommends that the President suspend or prohibit 
a covered transaction because the transaction threatens 
to impair the national security of the United States, the 
Committee shall, in the classified version of the report 
required under paragraph (1), notify Congress of the rec-
ommendation and, upon request, provide a classified 
briefing on the recommendation. 
‘‘(C) 
INCLUSIONS
IN
UNCLASSIFIED
VERSION.—The 
unclassified version of the report required under paragraph 
(1) shall include, with respect to covered transactions for 
the reporting period— 
‘‘(i) the number of notices submitted under sub-
section (b)(1)(C)(i);
H. R. 5515—564 
‘‘(ii) the number of declarations submitted under 
subsection (b)(1)(C)(v) and the number of such declara-
tions that were required under subclause (IV) of that 
subsection; 
‘‘(iii) the number of declarations submitted under 
subsection (b)(1)(C)(v) for which the Committee 
required resubmission as notices under subsection 
(b)(1)(C)(i); 
‘‘(iv) the average number of days that elapsed 
between submission of a declaration under subsection 
(b)(1)(C)(v) and the acceptance of the declaration by 
the Committee; 
‘‘(v) the median and average number of days that 
elapsed between acceptance of a declaration by the 
Committee and a response described in subsection 
(b)(1)(C)(v)(III); 
‘‘(vi) information on the time it took the Committee 
to provide comments on, or to accept, notices submitted 
under subsection (b)(1)(C)(i), including— 
‘‘(I) the average number of business days that 
elapsed between the date of submission of a draft 
notice and the date on which the Committee pro-
vided written comments on the draft notice; 
‘‘(II) the average number of business days that 
elapsed between the date of submission of a formal 
written notice and the date on which the Com-
mittee accepted or provided written comments on 
the formal written notice; and 
‘‘(III) if the average number of business days 
for a response by the Committee reported under 
subclause (I) or (II) exceeded 10 business days— 
‘‘(aa) an explanation of the causes of such 
delays, including whether such delays are 
caused by resource shortages, unusual fluctua-
tions in the volume of notices, transaction 
characteristics, or other factors; and 
‘‘(bb) an explanation of the steps that the 
Committee anticipates taking to mitigate the 
causes of such delays and otherwise to improve 
the ability of the Committee to provide com-
ments on, or to accept, notices within 10 busi-
ness days; 
‘‘(vii) the number of reviews or investigations con-
ducted under subsection (b); 
‘‘(viii) the number of investigations that were sub-
ject to an extension under subsection (b)(2)(C)(ii); 
‘‘(ix) information on the duration of those reviews 
and investigations, including the median and average 
number of days required to complete those reviews 
and investigations; 
‘‘(x) the number of notices submitted under sub-
section (b)(1)(C)(i) and declarations submitted under 
subsection (b)(1)(C)(v) that were rejected by the Com-
mittee; 
‘‘(xi) the number of such notices and declarations 
that were withdrawn by a party to the covered trans-
action;
H. R. 5515—565 
‘‘(xii) the number of such withdrawals that were 
followed by the submission of a subsequent such notice 
or declaration relating to a substantially similar cov-
ered transaction; and 
‘‘(xiii) such other specific, cumulative, or trend 
information that the Committee determines is advis-
able to provide for an assessment of the time required 
for reviews and investigations of covered transactions 
under this section.’’. 
(b) REPORT ON CHINESE INVESTMENT.— 
(1) IN GENERAL.—Not later than 2 years after the date 
of the enactment of this Act, and every 2 years thereafter 
through 2026, the Secretary of Commerce shall submit to Con-
gress and the Committee on Foreign Investment in the United 
States a report on foreign direct investment transactions made 
by entities of the People’s Republic of China in the United 
States. 
(2) ELEMENTS.—Each report required by paragraph (1) 
shall include the following: 
(A) Total foreign direct investment from the People’s 
Republic of China in the United States, including total 
foreign direct investment disaggregated by ultimate bene-
ficial owner. 
(B) A breakdown of investments from the People’s 
Republic of China in the United States by value using 
the following categories: 
(i) Less than $50,000,000. 
(ii) Greater than or equal to $50,000,000 and less 
than $100,000,000. 
(iii) Greater than or equal to $100,000,000 and 
less than $1,000,000,000. 
(iv) Greater than or equal to $1,000,000,000 and 
less than $2,000,000,000. 
(v) Greater than or equal to $2,000,000,000 and 
less than $5,000,000,000. 
(vi) Greater than or equal to $5,000,000,000. 
(C) A breakdown of investments from the People’s 
Republic of China in the United States by 2-digit North 
American Industry Classification System code. 
(D) A breakdown of investments from the People’s 
Republic of China in the United States by investment 
type, using the following categories: 
(i) Businesses established. 
(ii) Businesses acquired. 
(E) A breakdown of investments from the People’s 
Republic of China in the United States by government 
and non-government investments, including volume, sector, 
and type of investment within each category. 
(F) A list of companies incorporated in the United 
States purchased through government investment by the 
People’s Republic of China. 
(G) The number of United States affiliates of entities 
under the jurisdiction of the People’s Republic of China, 
the total employees at those affiliates, and the valuation 
for any publicly traded United States affiliate of such an 
entity.
H. R. 5515—566 
(H) An analysis of patterns in the investments 
described in subparagraphs (A) through (F), including in 
volume, type, and sector, and the extent to which those 
patterns of investments align with the objectives outlined 
by the Government of the People’s Republic of China in 
its Made in China 2025 plan, including a comparative 
analysis of investments from the People’s Republic of China 
in the United States and all foreign direct investment 
in the United States. 
(I) An identification of any limitations on the ability 
of the Secretary of Commerce to collect comprehensive 
information that is reasonably and lawfully available about 
foreign investment in the United States from the People’s 
Republic of China on a timeline necessary to complete 
reports every 2 years as required by paragraph (1), 
including— 
(i) an identification of any discrepancies between 
government and private sector estimates of invest-
ments from the People’s Republic of China in the 
United States; 
(ii) a description of the different methodologies 
or data collection methods, including by private sector 
entities, used to measure foreign investment that may 
result in different estimates; and 
(iii) recommendations for enhancing the ability of 
the Secretary of Commerce to improve data collection 
of information about foreign investment in the United 
States from the People’s Republic of China. 
(3) EXTENSION OF DEADLINE.—If, as a result of a limitation 
identified under paragraph (2)(I), the Secretary of Commerce 
determines that the Secretary will be unable to submit a report 
at the time required by paragraph (1), the Secretary may 
request additional time to complete the report. 
(c) REPORT ON CERTAIN RAIL INVESTMENTS BY STATE-OWNED 
OR STATE-CONTROLLED ENTITIES.— 
(1) IN GENERAL.—Not later than one year after the date 
of the enactment of this Act, the Secretary of Homeland Secu-
rity shall, in coordination with the appropriate members of 
the Committee on Foreign Investment in the United States, 
submit to Congress a report assessing— 
(A) national security risks, if any, related to invest-
ments in the United States by state-owned or state-con-
trolled entities in the manufacture or assembly of rolling 
stock or other assets for use in freight rail, public transpor-
tation rail systems, or intercity passenger rail systems; 
and 
(B) how the number and types of such investments 
could affect any such risks. 
(2) CONSULTATION.—The Secretary, in preparing the report 
required by paragraph (1), shall consult with the Secretary 
of Transportation and the head of any agency that is not 
represented on the Committee on Foreign Investment in the 
United States that has significant technical expertise related 
to the assessments required by that paragraph.
H. R. 5515—567 
SEC. 1720. CERTIFICATION OF NOTICES AND INFORMATION. 
Section 721(n) of the Defense Production Act of 1950 (50 U.S.C. 
4565(n)) is amended— 
(1) by redesignating paragraphs (1) and (2) as subpara-
graphs (A) and (B), respectively, and by moving such subpara-
graphs, as so redesignated, 2 ems to the right; 
(2) by striking ‘‘Each notice’’ and inserting the following: 
‘‘(1) IN GENERAL.—Each notice’’; 
(3) by striking ‘‘paragraph (3)(B)’’ and inserting ‘‘paragraph 
(6)(B)’’; 
(4) by striking ‘‘paragraph (1)(A)’’ and inserting ‘‘paragraph 
(3)(A)’’; 
(5) by adding at the end the following: 
‘‘(2) EFFECT OF FAILURE TO SUBMIT.—The Committee may 
not complete a review under this section of a covered trans-
action and may recommend to the President that the President 
suspend or prohibit the transaction under subsection (d) if 
the Committee determines that a party to the transaction has— 
‘‘(A) failed to submit a statement required by para-
graph (1); or 
‘‘(B) included false or misleading information in a 
notice or information described in paragraph (1) or omitted 
material information from such notice or information. 
‘‘(3) APPLICABILITY OF LAW ON FRAUD AND FALSE STATE-
MENTS.—The Committee shall prescribe regulations expressly 
providing for the application of section 1001 of title 18, United 
States Code, to all information provided to the Committee 
under this section by any party to a covered transaction.’’. 
SEC. 1721. IMPLEMENTATION PLANS. 
(a) IN GENERAL.—Not later than 180 days after the date of 
the enactment of this Act, the chairperson of the Committee on 
Foreign Investment in the United States and the Secretary of 
Commerce shall, in consultation with the appropriate members 
of the Committee— 
(1) develop plans to implement this subtitle; and 
(2) submit to the appropriate congressional committees a 
report on the plans developed under paragraph (1), which shall 
include a description of— 
(A) the timeline and process to implement the provi-
sions of, and amendments made by, this subtitle; 
(B) any additional staff necessary to implement the 
plans; and 
(C) the resources required to effectively implement the 
plans. 
(b) ANNUAL RESOURCE NEEDS OF CFIUS MEMBER AGENCIES.— 
Not later than one year after the submission of the report under 
subsection (a)(2), and annually thereafter for 7 years, each depart-
ment or agency represented on the Committee on Foreign Invest-
ment in the United States shall submit to the appropriate congres-
sional committees a detailed spending plan to expeditiously meet 
the requirements of section 721 of the Defense Production Act 
of 1950, as amended by this subtitle, including estimated expendi-
tures and staffing levels for not less than the following fiscal year. 
(c) TESTIMONY.—Section 721 of the Defense Production Act 
of 1950 (50 U.S.C. 4565) is amended by adding at the end the 
following:
H. R. 5515—568 
‘‘(o) TESTIMONY.— 
‘‘(1) IN GENERAL.—Not later than March 31 of each year, 
the chairperson, or the designee of the chairperson, shall appear 
before the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate to present testimony on— 
‘‘(A) anticipated resources necessary for operations of 
the Committee in the following fiscal year at each of the 
departments or agencies represented on the Committee; 
‘‘(B) the adequacy of appropriations for the Committee 
in the current and the previous fiscal year to— 
‘‘(i) ensure that thorough reviews and investiga-
tions are completed as expeditiously as possible; 
‘‘(ii) monitor and enforce mitigation agreements; 
and 
‘‘(iii) identify covered transactions for which a 
notice under clause (i) of subsection (b)(1)(C) or a dec-
laration under clause (v) of that subsection was not 
submitted to the Committee; 
‘‘(C) management efforts to strengthen the ability of 
the Committee to meet the requirements of this section; 
and 
‘‘(D) activities of the Committee undertaken in order 
to— 
‘‘(i) educate the business community, with a par-
ticular focus on the technology sector and other sectors 
of importance to national security, on the goals and 
operations of the Committee; 
‘‘(ii) disseminate to the governments of countries 
that are allies or partners of the United States best 
practices of the Committee that— 
‘‘(I) strengthen national security reviews of rel-
evant investment transactions; and 
‘‘(II) expedite such reviews when appropriate; 
and 
‘‘(iii) promote openness to foreign investment, con-
sistent with national security considerations. 
‘‘(2) SUNSET.—This subsection shall have no force or effect 
on or after the date that is 7 years after the date of the 
enactment of the Foreign Investment Risk Review Moderniza-
tion Act of 2018.’’. 
(d) APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.—In 
this section, the term ‘‘appropriate congressional committees’’ 
means— 
(1) the Committee on Banking, Housing, and Urban Affairs 
and the Committee on Appropriations of the Senate; and 
(2) the Committee on Financial Services and the Committee 
on Appropriations of the House of Representatives. 
SEC. 1722. ASSESSMENT OF NEED FOR ADDITIONAL RESOURCES FOR 
COMMITTEE. 
The President shall— 
(1) determine whether and to what extent the expansion 
of the responsibilities of the Committee on Foreign Investment 
in the United States pursuant to the amendments made by 
this subtitle necessitates additional resources for the Committee
H. R. 5515—569 
and the departments and agencies represented on the Com-
mittee to perform their functions under section 721 of the 
Defense Production Act of 1950, as amended by this subtitle; 
and 
(2) if the President determines that additional resources 
are necessary, include in the budget of the President for fiscal 
year 2019 and each fiscal year thereafter submitted to Congress 
under section 1105(a) of title 31, United States Code, a request 
for such additional resources. 
SEC. 1723. FUNDING. 
Section 721 of the Defense Production Act of 1950 (50 U.S.C. 
4565), as amended by section 1721, is further amended by adding 
at the end the following: 
‘‘(p) FUNDING.— 
‘‘(1) ESTABLISHMENT OF FUND.—There is established in the 
Treasury of the United States a fund, to be known as the 
‘Committee on Foreign Investment in the United States Fund’ 
(in this subsection referred to as the ‘Fund’), to be administered 
by the chairperson. 
‘‘(2) AUTHORIZATION
OF
APPROPRIATIONS
FOR
THE
COM-
MITTEE.—There are authorized to be appropriated to the Fund 
for each of fiscal years 2019 through 2023 $20,000,000 to per-
form the functions of the Committee. 
‘‘(3) FILING FEES.— 
‘‘(A) IN GENERAL.—The Committee may assess and col-
lect a fee in an amount determined by the Committee 
in regulations, to the extent provided in advance in appro-
priations Acts, without regard to section 9701 of title 31, 
United States Code, and subject to subparagraph (B), with 
respect to each covered transaction for which a written 
notice is submitted to the Committee under subsection 
(b)(1)(C)(i). The total amount of fees collected under this 
paragraph may not exceed the costs of administering this 
section. 
‘‘(B) DETERMINATION OF AMOUNT OF FEE.— 
‘‘(i) IN
GENERAL.—The amount of the fee to be 
assessed under subparagraph (A) with respect to a 
covered transaction— 
‘‘(I) may not exceed an amount equal to the 
lesser of— 
‘‘(aa) 1 percent of the value of the trans-
action; or 
‘‘(bb) $300,000, adjusted annually for 
inflation pursuant to regulations prescribed by 
the Committee; and 
‘‘(II) shall be based on the value of the trans-
action, taking into account— 
‘‘(aa) the effect of the fee on small business 
concerns (as defined in section 3 of the Small 
Business Act (15 U.S.C. 632)); 
‘‘(bb) the expenses of the Committee asso-
ciated with conducting activities under this 
section; 
‘‘(cc) the effect of the fee on foreign invest-
ment; and
H. R. 5515—570 
‘‘(dd) such other matters as the Committee 
considers appropriate. 
‘‘(ii) UPDATES.—The Committee shall periodically 
reconsider and adjust the amount of the fee to be 
assessed under subparagraph (A) with respect to a 
covered transaction to ensure that the amount of the 
fee does not exceed the costs of administering this 
section and otherwise remains appropriate. 
‘‘(C) DEPOSIT
AND
AVAILABILITY
OF
FEES.—Notwith-
standing section 3302 of title 31, United States Code, fees 
collected under subparagraph (A) shall— 
‘‘(i) be deposited into the Fund solely for use in 
carrying out activities under this section; 
‘‘(ii) to the extent and in the amounts provided 
in advance in appropriations Acts, be available to the 
chairperson; 
‘‘(iii) remain available until expended; and 
‘‘(iv) be in addition to any appropriations made 
available to the members of the Committee. 
‘‘(D) STUDY ON PRIORITIZATION FEE.— 
‘‘(i) IN GENERAL.—Not later than 270 days after 
the date of the enactment of the Foreign Investment 
Risk Review Modernization Act of 2018, the chair-
person, in consultation with the Committee, shall com-
plete a study of the feasibility and merits of estab-
lishing a fee or fee scale to prioritize the timing of 
the response of the Committee to a draft or formal 
written notice during the period before the Committee 
accepts the formal written notice under subsection 
(b)(1)(C)(i), in the event that the Committee is unable 
to respond during the time required by subclause (II) 
of that subsection because of an unusually large influx 
of notices, or for other reasons. 
‘‘(ii) SUBMISSION TO CONGRESS.—After completing 
the study required by clause (i), the chairperson, or 
a designee of the chairperson, shall submit to the Com-
mittee on Banking, Housing, and Urban Affairs of 
the Senate and the Committee on Financial Services 
of the House of Representatives a report on the findings 
of the study. 
‘‘(4) TRANSFER
OF
FUNDS.—To the extent provided in 
advance in appropriations Acts, the chairperson may transfer 
any amounts in the Fund to any other department or agency 
represented on the Committee for the purpose of addressing 
emerging needs in carrying out activities under this section. 
Amounts so transferred shall be in addition to any other 
amounts available to that department or agency for that pur-
pose.’’. 
SEC. 1724. CENTRALIZATION OF CERTAIN COMMITTEE FUNCTIONS. 
Section 721 of the Defense Production Act of 1950 (50 U.S.C. 
4565), as amended by section 1723, is further amended by adding 
at the end the following: 
‘‘(q) CENTRALIZATION OF CERTAIN COMMITTEE FUNCTIONS.— 
‘‘(1) IN GENERAL.—The chairperson, in consultation with 
the Committee, may centralize certain functions of the Com-
mittee within the Department of the Treasury for the purpose