IB 
Union Calendar No. 9 
110TH CONGRESS 
1ST SESSION 
H. R. 556 
[Report No. 110–24, Part I ] 
To ensure national security while promoting foreign investment and the cre-
ation 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 HOUSE OF REPRESENTATIVES 
JANUARY 18, 2007 
Mrs. MALONEY of New York (for herself, Ms. PRYCE of Ohio, Mr. CROWLEY, 
Mr. BLUNT, Mr. FRANK of Massachusetts, Mr. BACHUS, Mr. GUTIER-
REZ, Mr. PAUL, Mr. ACKERMAN, Mr. BAKER, Ms. BEAN, Mrs. BIGGERT, 
Mr. CLEAVER, Mr. CUMMINGS, Mr. FOSSELLA, Mr. GARRETT of New 
Jersey, Mr. GILLMOR, Mr. AL GREEN of Texas, Mr. HINOJOSA, Ms. 
HOOLEY, Mr. KING of New York, Mr. KLEIN of Florida, Mr. LANGEVIN, 
Mr. LYNCH, Mr. MANZULLO, Mr. MCCOTTER, Mr. MEEKS of New York, 
Mr. GARY G. MILLER of California, Mr. MOORE of Kansas, Ms. MOORE 
of Wisconsin, Mrs. MYRICK, Mr. REYNOLDS, Ms. ROS-LEHTINEN, Mr. 
SCOTT of Georgia, Mr. SMITH of Texas, Mr. REICHERT, and Ms. WAT-
SON) introduced the following bill; which was referred to the Committee 
on Financial Services, and in addition to the Committees on Energy and 
Commerce and Foreign Affairs, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
FEBRUARY 23, 2007 
Additional sponsors: Mr. HOEKSTRA, Mrs. MCCARTHY of New York, Mr. 
MATHESON, Mr. THOMPSON of Mississippi, Mr. CLAY, Mr. ISRAEL, Mr. 
BARTON of Texas, Mr. WATT, Ms. HARMAN, Mr. SHAYS, Ms. GINNY 
BROWN-WAITE of Florida, Mr. LATOURETTE, Mr. BUCHANAN, Mr. MIL-
LER of North Carolina, Mr. HASTINGS of Washington, Mr. DICKS, Mr. 
ENGLISH of Pennsylvania, Mr. SMITH of Washington, Mrs. CAPITO, Mr. 
COURTNEY, Mr. PASCRELL, and Mrs. MCMORRIS RODGERS 
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FEBRUARY 23, 2007 
Reported from the Committee on Financial Services with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
FEBRUARY 23, 2007 
Committees on Energy and Commerce and Foreign Affairs discharged; com-
mitted to the Committee of the Whole House on the State of the Union 
and ordered to be printed 
[For text of introduced bill, see copy of bill as introduced on January 18, 2007] 
A BILL 
To ensure national security while promoting foreign invest-
ment and the creation and maintenance of jobs, to re-
form the process by which such investments are exam-
ined for any effect they may have on national security, 
to establish the Committee on Foreign Investment in 
the United States, and for other purposes. 
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 ‘‘National Security For-
eign Investment Reform and Strengthened Transparency 
Act of 2007’’. 
SEC. 2. UNITED STATES SECURITY IMPROVEMENT AMEND-
MENTS; CLARIFICATION OF REVIEW AND IN-
VESTIGATION PROCESS. 
Section 721 of the Defense Production Act of 1950 (50 
U.S.C. App. 2170) is amended by striking subsections (a) 
and (b) and inserting the following new subsections: 
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submitted under clause (i) may be with-
drawn from review unless— 
‘‘(I) a written request for such 
withdrawal is submitted by any party 
to the transaction; and 
‘‘(II) the request is approved in 
writing by the Chairperson, in con-
sultation with the Vice Chairpersons, 
of the Committee. 
‘‘(iii) CONTINUING DISCUSSIONS.—The 
approval of a withdrawal request under 
clause (ii) shall not be construed as pre-
cluding any party to the covered trans-
action from continuing informal discussions 
with the Committee or any Committee 
member regarding possible resubmission for 
review pursuant to this paragraph. 
‘‘(D) 
UNILATERAL
INITIATION
OF
RE-
VIEW.—Subject to subparagraph (F), the Presi-
dent, the Committee, or any member acting on 
behalf of the Committee may move to initiate a 
review under subparagraph (A) of— 
‘‘(i) any covered transaction; 
‘‘(ii) any covered transaction that has 
previously been reviewed or investigated 
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under this section, if any party to the 
transaction submitted false or misleading 
material information to the Committee in 
connection with the review or investigation 
or omitted material information, including 
material documents, from information sub-
mitted to the Committee; or 
‘‘(iii) any covered transaction that has 
previously been reviewed or investigated 
under this section, if any party to the 
transaction or the entity resulting from con-
summation of the transaction intentionally 
materially breaches a mitigation agreement 
or 
condition 
described 
in 
subsection 
(l)(1)(A), and— 
‘‘(I) such breach is certified by the 
lead department or agency monitoring 
and enforcing such agreement or condi-
tion as an intentional material breach; 
and 
‘‘(II) such department or agency 
certifies that there is no other remedy 
or enforcement tool available to address 
such breach. 
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‘‘(E) TIMING.—Any review under this para-
graph shall be completed before the end of the 30- 
day period beginning on the date of the receipt 
of written notice under subparagraph (C) by the 
Chairperson of the Committee, or the date of the 
initiation of the review in accordance with a 
motion under subparagraph (D). 
‘‘(F) LIMIT
ON
DELEGATION
OF
CERTAIN 
AUTHORITY.—The authority of the Committee or 
any member of the Committee to initiate a re-
view under subparagraph (D) may not be dele-
gated to any person other than the Deputy Sec-
retary or an appropriate Under Secretary of the 
department or agency represented on the com-
mittee or by such member (or by a person hold-
ing an equivalent position to a Deputy Secretary 
or Under Secretary). 
‘‘(2) NATIONAL SECURITY INVESTIGATIONS.— 
‘‘(A) 
IN
GENERAL.—In 
each 
case 
in 
which— 
‘‘(i) a review of a covered transaction 
under paragraph (1) results in a deter-
mination that— 
‘‘(I) the transaction threatens to 
impair the national security of the 
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United States and that threat has not 
been mitigated during or prior to the 
review of a covered transaction under 
paragraph (1); or 
‘‘(II) the transaction is a foreign 
government-controlled transaction; 
‘‘(ii) a roll call vote pursuant to para-
graph (3)(A) in connection with a review 
under paragraph (1) of any covered trans-
action results in at least 1 vote by a Com-
mittee member against approving the trans-
action; or 
‘‘(iii) the Director of National Intel-
ligence identifies particularly complex intel-
ligence concerns that could threaten to im-
pair the national security of the United 
States and Committee members were not 
able to develop and agree upon measures to 
mitigate satisfactorily those threats during 
the initial review period under paragraph 
(1), 
the President, acting through the Committee, 
shall immediately conduct an investigation of 
the effects of the transaction on the national se-
curity of the United States and take any nec-
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essary actions in connection with the transaction 
to protect the national security of the United 
States. 
‘‘(B) TIMING.— 
‘‘(i) IN GENERAL.—Any investigation 
under subparagraph (A) shall be completed 
before the end of the 45-day period begin-
ning on the date of the investigation com-
menced. 
‘‘(ii) EXTENSIONS OF TIME.—The pe-
riod established under subparagraph (B) for 
any investigation of a covered transaction 
may be extended with respect to any par-
ticular investigation by the President or by 
a rollcall vote of at least 2/3 of the members 
of the Committee involved in the investiga-
tion by the amount of time specified by the 
President or the Committee at the time of 
the extension, not to exceed 45 days, as nec-
essary to collect and fully evaluate informa-
tion relating to— 
‘‘(I) the covered transaction or 
parties to the transaction; and 
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‘‘(II) any effect of the transaction 
that could threaten to impair the na-
tional security of the United States. 
‘‘(C) EXCEPTION.—Notwithstanding sub-
paragraph (A)(i)(II), an investigation of a for-
eign government-controlled transaction shall not 
be required under this paragraph if the Sec-
retary of the Treasury, the Secretary of Home-
land Security, and the Secretary of Commerce 
determine, on the basis of the review of the trans-
action under paragraph (1), that the transaction 
will not affect the national security of the United 
States and no agreement or condition is re-
quired, with respect to the transaction, to miti-
gate any threat to the national security (and 
such authority of each such Secretary may not be 
delegated to any person other than the Deputy 
Secretary of the Treasury, of Homeland Secu-
rity, or of Commerce, respectively). 
‘‘(3) APPROVAL
OF
CHAIRPERSON
AND
VICE 
CHAIRPERSONS REQUIRED.— 
‘‘(A) IN GENERAL.—A review or investiga-
tion under this subsection of a covered trans-
action shall not be treated as final or complete 
until the results of such review or investigation 
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