I 
110TH CONGRESS 
2D SESSION 
H. R. 5665 
To impose limitations on investment and certain operations by foreign entities 
in the United States. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 31, 2008 
Mr. TURNER introduced the following bill; which was referred to the Com-
mittee on Financial Services, and in addition to the Committees on For-
eign Affairs and Energy and Commerce, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To impose limitations on investment and certain operations 
by foreign entities in the United States. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Reciprocity and Fair-
ness in Foreign Investment Act’’. 
SEC. 2. LIMITATIONS ON INVESTMENT AND CERTAIN OPER-
ATIONS BY FOREIGN ENTITIES. 
(a) LIMITATIONS.— 
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(1) ON GOVERNMENT-OWNED ENTERPRISES.— 
A foreign person that is owned, in whole or in part, 
or controlled by the government of a foreign country 
may— 
(A) acquire or hold an equity interest, or 
other evidence of ownership, in a corporation, 
partnership, or other business entity, that is or-
ganized under the laws of the United States, or 
(B) acquire or hold any interest in real 
property in the United States, 
only to the same extent as that foreign country al-
lows United States persons to acquire or hold (as 
the case may be) equity interests or other evidences 
of ownership in comparable business concerns orga-
nized under the laws of that foreign country and to 
acquire or hold interests in comparable real property 
in that foreign country. 
(2) INVESTMENT IN AND OPERATION OF CRIT-
ICAL INFRASTRUCTURE.—A foreign person may ac-
quire or hold a property interest in, or control oper-
ations, management, or security operations of, crit-
ical infrastructure in the United States only to the 
same extent as the foreign country of which that for-
eign person is a national allows United States per-
sons to acquire or hold equivalent property interests 
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or other evidences of ownership in, or to control op-
erations, management, or security operations of, 
comparable critical infrastructure in that country. 
(b) DEFINITIONS.—In this section: 
(1) 
CRITICAL
INFRASTRUCTURE.—(A) 
The 
term ‘‘critical infrastructure’’ means systems and as-
sets, whether physical or virtual, so vital to a coun-
try that the incapacity or destruction of such sys-
tems and assets would have a debilitating impact on 
the security, economic security, or public health or 
safety, of that country. Such term includes— 
(i) any airport, air navigation facility, or 
facility that is part of an air traffic control sys-
tem; 
(ii) any bridge, any highway, and any rail-
road tracks or facilities; 
(iii) any port facilities; 
(iv) any pipeline that transports oil, nat-
ural gas, or gasoline or other petroleum prod-
ucts; and 
(v) any electricity generation, transmission, 
or distribution facilities. 
(B) The terms ‘‘airport’’, ‘‘air navigation facil-
ity’’, and ‘‘air traffic control system’’ have the mean-
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ings given those terms in section 40102 of title 49, 
United States Code. 
(2) FOREIGN PERSON.—The term ‘‘foreign per-
son’’ means a national of a foreign country. 
(3) GOVERNMENT.—The term ‘‘government of 
a foreign country’’ includes any agency or instru-
mentality of the government of a foreign country. 
(4) NATIONAL
OF
A
FOREIGN
COUNTRY.—A 
person is a national of a foreign country if that per-
son is— 
(A) a citizen of that country; 
(B) an entity organized under the laws of 
that country (whether the entity is controlled by 
private persons or government entities); 
(C) a unit of government of that country; 
or 
(D) an entity that is organized under the 
laws of the United States and is owned or con-
trolled by individuals, entities, or units of gov-
ernment described in subparagraphs (A), (B), 
and (C), or any combination thereof. 
(5) 
UNITED
STATES.—The 
term 
‘‘United 
States’’ means the several States, the District of Co-
lumbia, and any commonwealth, territory, or posses-
sion of the United States. 
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(6) 
UNITED
STATES
PERSON.—The 
term 
‘‘United States person’’ means— 
(A) any United States citizen; 
(B) any entity that is organized under the 
laws of the United States and is owned or con-
trolled by United States citizens, by State or 
local governments, by the United States, or by 
any combination thereof. 
SEC. 3. ENFORCEMENT. 
(a) SECRETARY OF THE TREASURY.—The Secretary 
of the Treasury, in consultation with the Secretary of 
Commerce, the Attorney General, and the heads of such 
other departments and agencies as the Secretary of the 
Treasury considers appropriate, shall issue such regula-
tions as are necessary to carry out section 2. 
(b) PENALTIES.— 
(1) CIVIL PENALTIES.— 
(A) PENALTY.—A civil penalty of not more 
than $500,000 shall be imposed on any foreign 
person who violates section 2 or any regulation 
issued under subsection (a) of this section. 
(B) AUTHORITY OF THE SECRETARY OF 
THE TREASURY.—The Secretary of the Treas-
ury has the authority to impose civil penalties 
under subparagraph (A). 
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(2) OTHER
RELIEF.—The Secretary of the 
Treasury may bring an action in the appropriate 
United States district court to enjoin any violation 
of section 2 or any regulation issued under sub-
section (a) of this section. In addition, the Attorney 
General, upon the request of the Secretary of the 
Treasury, shall seek appropriate relief, including di-
vestment relief, in the district courts in order to en-
force this Act. 
SEC. 4. ANNUAL REPORT. 
The Secretary of the Treasury shall, not later than 
120 days after the date of the enactment of this Act and 
annually thereafter, issue and make public a report on the 
laws of each foreign country regarding permissible invest-
ment by foreign persons in enterprises organized under 
the laws of the country and in real property in that coun-
try, and permissible control by foreign persons of oper-
ations and management of critical infrastructure in that 
country. 
SEC. 5. EFFECTIVE DATE. 
(a) IN GENERAL.—Subject to subsection (b), this Act 
shall take effect 180 days after the date of the enactment 
of this Act. 
(b) EXISTING INVESTMENTS.—In order to allow for-
eign countries the flexibility to make the necessary 
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changes to their laws so as to allow foreign investment 
and control affected by this Act, this Act and the regula-
tions issued under this Act shall not apply to any equity 
interest, other property interest, or control of operations 
or management of infrastructure, acquired before the ef-
fective date of this Act until the date that is 1 year after 
such effective date. 
Æ 
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