National Security Foreign Investment Reform and Strengthened Transparency Act of 2006

Bill: 109-hr-5337
Sponsor: Rep. Blunt, Roy [R-MO-7]
Introduced: 2006-05-10 in the House
Policy area: Foreign Trade and International Finance
Subjects: Administrative procedure
Administrative remedies
Armed Forces and National Security
Authorization
Business intelligence
Classified defense information
Commerce
Commercial blacklisting
Congress
Congress and foreign policy
Congressional oversight
Congressional reporting requirements
Congressional veto
Congressional voting
Corporate divestiture
Corporate mergers
Crime and Law Enforcement
Department of Homeland Security
Dubai Ports World aftermath legislation
Economics and Public Finance
Executive Office of the President
Executive reorganization
Federal advisory bodies
Foreign agents
Foreign corporations
Foreign investments
Fraud
Government Operations and Politics
Government corporations
Government liability
Government ownership
Government paperwork
Government publicity
Governmental investigations
Infrastructure
Infrastructure (Economics)
Inspectors general
International Affairs
Israel
Law
Leases
Middle East and North Africa
President and foreign policy
Record votes
Risk
Science, Technology, Communications
Technology transfer
Terrorism
Trade secrets

Summary:
action_date: 2006-05-10
text: 
Reform of National Security Reviews of Foreign Direct Investments Act - Amends the Defense Production Act of 1950 to direct the President, upon receiving written notification by any party involved of a possible merger, acquisition, or takeover which could result in foreign control of any person engaged in interstate commerce in the United States (covered transaction), or upon a motion of a member of the Committee on Foreign Investment in the United States (CFIUS), to review the covered transaction to determine whether it threatens to impair U.S. national security and whether such threat can be mitigated. Requires CFIUS, if it determines that the covered transaction is a foreign government-controlled transaction, to conduct its own investigation. Requires the President, in his investigation, to take necessary action to protect national security with respect to the covered transaction. Makes any review final and complete only after its findings and report are approved and signed by both the Secretaries of the Treasury and Homeland Security.
 
Requires the Director of National Intelligence to carry out an analysis of the threat to national security of any covered transaction.
 
Makes CFIUS a statutory committee under the Defense Production Act of 1950, with a revised membership.
 
Requires the consideration, as additional factors in determining whether it should be investigated, of whether a covered transaction: (1) has a security-related impact on critical infrastructure; and (2) is a foreign government-controlled transaction.
 
Authorizes CFIUS to: (1) negotiate, impose, and enforce any agreement or condition with any party to a covered transaction in order to mitigate any threat to national security; (2) track withdrawn notifications; and (3) monitor the enforcement of any agreements.
 
Requires reports to Congress by the President and CFIUS concerning investigations of covered transactions.

action_date: 2006-07-26
text: 
National Security Foreign Investment Reform and Strengthened Transparency Act of 2006 - Amends the Defense Production Act of 1950 (DPA) to revise the review and investigation process for foreign investment activities that may affect U.S. national security. 
 
(Sec. 2) Directs the President, upon receiving written notification of a possible merger, acquisition, or takeover which could result in foreign control of any person engaged in interstate commerce (covered transaction), or upon a motion of the President, the Committee on Foreign Investment in the United States (CFIUS), or a committee member, to review such covered transaction to determine its effects on national security.
 
Requires CFIUS to investigate a covered transaction which it determines is a foreign government-controlled transaction. 
 
Allows any party to a covered transaction to initiate a review of such transaction by submitting written notice of the transaction to the Chairperson of CFIUS. Establishes a procedure for withdrawing such notice. Requires a transaction review to be completed within 30 days.
 
Authorizes the President, CFIUS, or any member of CFIUS to initiate a review of any covered transaction or any previously reviewed or investigated covered transaction which involves the submission of false or misleading material information or a breach of a mitigation agreement or condition.
 
Directs the President to conduct an investigation of the effects of certain covered transactions on national security and to take any necessary steps to protect national security. Requires such investigation to be completed within 45 days unless extended by the President or by two-thirds roll call vote of CFIUS members.
 
Requires any review or investigation of a covered transaction to be approved by a majority roll call vote of CFIUS members and be signed by the Secretaries of the Treasury, of Homeland Security, and of Commerce. 
 
Requires the Director of National Intelligence to conduct an analysis of any threat to national security posed by a covered transaction.
 
(Sec. 3) Establishes CFIUS as a multi-agency statutory committee and revises the membership of such committee. Designates the Secretary of the Treasury as the Chairperson of CFIUS and the Secretary of Homeland Security as Vice Chairperson. Grants CFIUS subpoena power to carryout its responsibilities. Authorizes appropriations for the operation of CFIUS for FY2007-FY2010.
 
(Sec. 4) Makes the consideration of specified factors in evaluating a covered transaction mandatory (currently, discretionary with the President). Adds to the list of such factors: (1) whether the covered transaction has a security-related impact on critical U.S. infrastructure; (2) whether the covered transaction is a foreign government-controlled transaction; and (3) such other factors as the President or the President's designee may consider appropriate. 
 
(Sec. 5) Grants immunity to the United States for losses or other expenses incurred by a party to a covered transaction resulting from governmental actions if the party did not notify CFIUS of such transaction or did not wait until the completion of a required review or investigation of the transaction.
 
(Sec. 6) Authorizes CFIUS to: (1) enter into agreements with parties to a covered transaction to mitigate any threat to national security; and (2) designate a lead federal agency to negotiate, modify, monitor, and enforce such agreements.
 
Establishes a method of tracking covered transactions which are withdrawn from the review or investigation process and a process for setting interim protections to address specific national security concerns relating to such transactions. 
 
(Sec. 7) Revises and expands requirements for CFIUS to report to Congress on investigations of covered transactions. Requires CFIUS to report within five days after it takes final action in an investigation of a covered transaction and to provide classified briefings on covered transactions to Members of Congress, if so requested. 
 
Requires CFIUS to file semiannual reports with Congress on all reviews and investigations of covered transactions within a previous six-month period. Specifies the required content of such reports. 
 
Requires the Inspector General of the Department of the Treasury to conduct an investigation of each failure of the Department of the Treasury to make required reports under DPA and to report to Congress on such investigation.
 
Requires the Secretary of the Treasury to: (1) study investments in the United States, especially investments in critical infrastructure and industries affecting national security by foreign governments or their agents which comply with any boycott of Israel or which do not ban foreign terrorist organizations; and (2) report to Congress on such study.
 
(Sec. 8) Requires any notice and other information required to be submitted by a party to a covered transaction to be accompanied by a written statement of the chief executive officer involved certifying that such notice or information fully complies with DPA requirements and is accurate and complete in all material respects. 


Legislative actions:
action_date: 2006-07-27
text: Received in the Senate. Read twice. Placed on Senate Legislative Calendar under General Orders. Calendar No. 538.
action_date: 2006-07-26
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2006-07-26
text: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 424 - 0 (Roll no. 404). (text: CR H5863-5867)
action_date: 2006-07-26
text: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 424 - 0 (Roll no. 404).(text: CR H5863-5867)
action_date: 2006-07-26
text: Considered as unfinished business. (consideration: CR H5899-5900)
action_date: 2006-07-26
text: At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
action_date: 2006-07-26
text: DEBATE - The House proceeded with forty minutes of debate on H.R. 5337.
action_date: 2006-07-26
text: Considered under suspension of the rules. (consideration: CR H5863-5873)
action_date: 2006-07-26
text: Mr. Oxley moved to suspend the rules and pass the bill, as amended.
action_date: 2006-07-17
text: Placed on the Union Calendar, Calendar No. 329.
action_date: 2006-07-17
text: Committee on International Relations discharged.
action_date: 2006-07-17
text: Committee on International Relations discharged.
action_date: 2006-07-17
text: Reported (Amended) by the Committee on Energy and Commerce. H. Rept. 109-523, Part II.
action_date: 2006-07-17
text: Reported (Amended) by the Committee on Energy and Commerce. H. Rept. 109-523, Part II.
action_date: 2006-07-12
text: Ordered to be Reported (Amended) by Voice Vote.
action_date: 2006-07-12
text: Committee Consideration and Mark-up Session Held.
action_date: 2006-07-11
text: Subcommittee Hearings Held.
action_date: 2006-06-22
text: House Committee on International Relations Granted an extension for further consideration ending not later than July 17, 2006.
action_date: 2006-06-22
text: House Committee on Energy and Commerce Granted an extension for further consideration ending not later than July 17, 2006.
action_date: 2006-06-22
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 109-523, Part I.
action_date: 2006-06-22
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 109-523, Part I.
action_date: 2006-06-14
text: Committee Consideration and Mark-up Session Held.
action_date: 2006-06-14
text: Ordered to be Reported (Amended) by the Yeas and Nays: 64 - 0.
action_date: 2006-06-05
text: Referred to the Subcommittee on Commerce, Trade and Consumer Protection, for a period to be subsequently determined by the Chairman .
action_date: 2006-05-17
text: Subcommittee on Domestic and International Monetary Policy, Trade, and Technology Discharged.
action_date: 2006-05-17
text: Subcommittee Hearings Held.
action_date: 2006-05-16
text: Referred to the Subcommittee on Domestic and International Monetary Policy, Trade, and Technology.
action_date: 2006-05-10
text: Referred to the Committee on Financial Services, and in addition to the Committees on Energy and Commerce, and International Relations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2006-05-10
text: Referred to the Committee on Financial Services, and in addition to the Committees on Energy and Commerce, and International Relations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2006-05-10
text: Referred to the Committee on Financial Services, and in addition to the Committees on Energy and Commerce, and International Relations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2006-05-10
text: Referred to the Committee on Financial Services, and in addition to the Committees on Energy and Commerce, and International Relations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2006-05-10
text: Introduced in House
action_date: 2006-05-10
text: Introduced in House