Foreign Investment and Economic Security Act of 2017

Bill: 115-hr-2932
Sponsor: Rep. DeLauro, Rosa L. [D-CT-3]
Introduced: 2017-06-16 in the House
Policy area: Foreign Trade and International Finance
Subjects: Administrative law and regulatory procedures
Administrative remedies
Advanced technology and technological innovations
Advisory bodies
Building construction
Business ethics
Competition and antitrust
Competitiveness, trade promotion, trade deficits
Congressional oversight
Consumer affairs
Corporate finance and management
Economic performance and conditions
Executive Office of the President
Foreign and international corporations
Government corporations and government-sponsored enterprises
Government studies and investigations
Industrial facilities
Industrial policy and productivity
Military procurement, research, weapons development
Technology transfer and commercialization
U.S. and foreign investments

Summary:
action_date: 2017-06-16
text: 

Foreign Investment and Economic Security Act of 2017

 
This bill amends the Defense Production Act of 1950 to provide for: (1) national security reviews of transactions involving the construction of a new facility in the United States by any foreign person (currently, national security reviews are conducted only for certain mergers, acquisitions, or takeovers by or with a foreign person); and (2) net U.S. benefit reviews of new construction, mergers, acquisitions, or takeovers by or with a foreign person. 
 
The bill makes net benefit reviews mandatory for transactions that meet specified Clayton Act requirements.
 
 The Committee on Foreign Investment in the United States (CFIUS) shall consider a transaction's effect on: (1) employment, resource processing, utilization of parts and services produced in or imported into the United States, and exports; (2) industrial efficiency, technological development, technology transfers, and product innovation; (3) domestic or foreign competition; (4) compatibility with national industrial and economic policies; and (5) public health, safety, and the environment. 
 
 In the case of a net benefit determination concerning a foreign government-influenced transaction, the CFIUS must consider: 
 
 
the governance and commercial orientation of the foreign person engaging in such transaction; 
 
the extent to which the foreign person is owned, controlled, or influenced by the foreign government; and 
 
adherence to U.S. law and corporate governance standards, engagement of the foreign country with the Securities and Exchange Commission and the Public Company Accounting Oversight Board, and the likelihood of commercial operation. 
 
 
The bill prohibits transactions that the President determines are not of net U.S. benefit and bars judicial review of such determinations.
 
The bill also revises the composition of the CFIUS for the purpose of carrying out net benefit determinations.
 
 The term &quot;foreign government-controlled transaction&quot; is revised to include a person with access to below-market loans or other financing from a foreign government.


Legislative actions:
action_date: 2017-06-23
text: Referred to the Subcommittee on Digital Commerce and Consumer Protection.
action_date: 2017-06-16
text: Referred to the Committee on Financial Services, and in addition to the Committees on Foreign Affairs, and Energy and Commerce, 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: 2017-06-16
text: Referred to the Committee on Financial Services, and in addition to the Committees on Foreign Affairs, and Energy and Commerce, 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: 2017-06-16
text: Referred to the Committee on Financial Services, and in addition to the Committees on Foreign Affairs, and Energy and Commerce, 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: 2017-06-16
text: Referred to the Committee on Financial Services, and in addition to the Committees on Foreign Affairs, and Energy and Commerce, 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: 2017-06-16
text: Introduced in House
action_date: 2017-06-16
text: Introduced in House