[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 556 Enrolled Bill (ENR)]
H.R.556
One Hundred Tenth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Thursday,
the fourth day of January, two thousand and seven
An Act
To ensure national security while promoting foreign investment and the
creation 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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

4c81a3690c79887c4478f07d8b795ceb09b0e28e4477c9b03c4a530b00bec49d

(a) Short Title.--This Act may be cited as the ``Foreign Investment
and National Security Act of 2007''.
(b) Table of Contents.--The table of contents for this Act is as
follows:

099040d256f6a683ec86a91f94c39de39a23867884fe7f38aa3472300e60b556

5f401ad9dfd8689975a814685b5b3f277a2ab8b44a06357500adbdf7615af8c3

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800ce5bdeaa9081ba26c9618e0026c322170b079087204f2ff9bf91667c1b9ee

REVIEW AND INVESTIGATION 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:
``(a) Definitions.--For purposes of this section, the following
definitions shall apply:
``(1) Committee; chairperson.--The terms `Committee' and
`chairperson' mean the Committee on Foreign Investment in the
United States and the chairperson thereof, respectively.
``(2) Control.--The term `control' has the meaning given to
such term in regulations which the Committee shall prescribe.
``(3) Covered transaction.--The term `covered transaction'
means any merger, acquisition, or takeover that is proposed or
pending after August 23, 1988, by or with any foreign person which
could result in foreign control of any person engaged in interstate
commerce in the United States.
``(4) Foreign government-controlled transaction.--The term
`foreign government-controlled transaction' means any covered
transaction that could result in the control of any person engaged
in interstate commerce in the United States by a foreign government
or an entity controlled by or acting on behalf of a foreign
government.
``(5) Clarification.--The term `national security' shall be
construed so as to include those issues relating to `homeland
security', including its application to critical infrastructure.
``(6) Critical infrastructure.--The term `critical
infrastructure' means, subject to rules issued under this section,
systems and assets, whether physical or virtual, so vital to the
United States that the incapacity or destruction of such systems or
assets would have a debilitating impact on national security.
``(7) Critical technologies.--The term `critical technologies'
means critical technology, critical components, or critical
technology items essential to national defense, identified pursuant
to this section, subject to regulations issued at the direction of
the President, in accordance with subsection (h).
``(8) Lead agency.--The term `lead agency' means the agency, or
agencies, designated as the lead agency or agencies pursuant to
subsection (k)(5) for the review of a transaction.
``(b) National Security Reviews and Investigations.--
``(1) National security reviews.--
``(A) In general.--Upon receiving written notification
under subparagraph (C) of any covered transaction, or pursuant
to a unilateral notification initiated under subparagraph (D)
with respect to any covered transaction, the President, acting
through the Committee--
``(i) shall review the covered transaction to determine
the effects of the transaction on the national security of
the United States; and
``(ii) shall consider the factors specified in
subsection (f) for such purpose, as appropriate.
``(B) Control by foreign government.--If the Committee
determines that the covered transaction is a foreign
government-controlled transaction, the Committee shall conduct
an investigation of the transaction under paragraph (2).
``(C) Written notice.--
``(i) In general.--Any party or parties to any covered
transaction may initiate a review of the transaction under
this paragraph by submitting a written notice of the
transaction to the Chairperson of the Committee.
``(ii) Withdrawal of notice.--No covered transaction
for which a notice was submitted under clause (i) may be
withdrawn from review, unless a written request for such
withdrawal is submitted to the Committee by any party to
the transaction and approved by the Committee.
``(iii) Continuing discussions.--A request for
withdrawal under clause (ii) shall not be construed to
preclude any party to the covered transaction from
continuing informal discussions with the Committee or any
member thereof regarding possible resubmission for review
pursuant to this paragraph.
``(D) Unilateral initiation of review.--Subject to
subparagraph (F), the President or the Committee may initiate a
review under subparagraph (A) of--
``(i) any covered transaction;
``(ii) any covered transaction that has previously been
reviewed or investigated 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 submitted to the
Committee; or
``(iii) any covered transaction that has previously
been reviewed or investigated under this section, if--
``(I) any party to the transaction or the entity
resulting from consummation of the transaction
intentionally materially breaches a mitigation
agreement or condition described in subsection
(l)(1)(A);
``(II) such breach is certified to the Committee by
the lead department or agency monitoring and enforcing
such agreement or condition as an intentional material
breach; and
``(III) the Committee determines that there are no
other remedies or enforcement tools available to
address such breach.
``(E) Timing.--Any review under this paragraph shall be
completed before the end of the 30-day period beginning on the
date of the acceptance of written notice under subparagraph (C)
by the chairperson, or beginning on the date of the initiation
of the review in accordance with subparagraph (D), as
applicable.
``(F) Limit on delegation of certain authority.--The
authority of the Committee to initiate a review under
subparagraph (D) may not be delegated to any person, other than
the Deputy Secretary or an appropriate Under Secretary of the
department or agency represented on the Committee.
``(2) National security investigations.--
``(A) In general.--In each case described in subparagraph
(B), the Committee shall immediately conduct an investigation
of the effects of a covered transaction on the national
security of the United States, and take any necessary actions
in connection with the transaction to protect the national
security of the United States.
``(B) Applicability.--Subparagraph (A) shall apply in each
case in which--
``(i) a review of a covered transaction under paragraph
(1) results in a determination that--
``(I) the transaction threatens to impair the
national security of the United States and that threat
has not been mitigated during or prior to the review of
a covered transaction under paragraph (1);
``(II) the transaction is a foreign government-
controlled transaction; or
``(III) the transaction would result in control of
any critical infrastructure of or within the United
States by or on behalf of any foreign person, if the
Committee determines that the transaction could impair
national security, and that such impairment to national
security has not been mitigated by assurances provided
or renewed with the approval of the Committee, as
described in subsection (l), during the review period
under paragraph (1); or
``(ii) the lead agency recommends, and the Committee
concurs, that an investigation be undertaken.
``(C) Timing.--Any investigation under subparagraph (A)
shall be completed before the end of the 45-day period
beginning on the date on which the investigation commenced.
``(D) Exception.--
``(i) In general.--Notwithstanding subparagraph (B)(i),
an investigation of a foreign government-controlled
transaction described in subclause (II) of subparagraph
(B)(i) or a transaction involving critical infrastructure
described in subclause (III) of subparagraph (B)(i) shall
not be required under this paragraph, if the Secretary of
the Treasury and the head of the lead agency jointly
determine, on the basis of the review of the transaction
under paragraph (1), that the transaction will not impair
the national security of the United States.
``(ii) Nondelegation.--The authority of the Secretary
or the head of an agency referred to in clause (i) may not
be delegated to any person, other than the Deputy Secretary
of the Treasury or the deputy head (or the equivalent
thereof) of the lead agency, respectively.
``(E) Guidance on certain transactions with national
security implications.--The Chairperson shall, not later than
180 days after the effective date of the Foreign Investment and
National Security Act of 2007, publish in the Federal Register
guidance on the types of transactions that the Committee has
reviewed and that have presented national security
considerations, including transactions that may constitute
covered transactions that would result in control of critical
infrastructure relating to United States national security by a
foreign government or an entity controlled by or acting on
behalf of a foreign government.
``(3) Certifications to congress.--
``(A) Certified notice at completion of review.--Upon
completion of a review under subsection (b) that concludes
action under this section, the chairperson and the head of the
lead agency shall transmit a certified notice to the members of
Congress specified in subparagraph (C)(iii).
``(B) Certified report at completion of investigation.--As
soon as is practicable after completion of an investigation
under subsection (b) that concludes action under this section,
the chairperson and the head of the lead agency shall transmit
to the members of Congress specified in subparagraph (C)(iii) a
certified written report (consistent with the requirements of
subsection (c)) on the results of the investigation, unless the
matter under investigation has been sent to the President for
decision.
``(C) Certification procedures.--
``(i) In general.--Each certified notice and report
required under subparagraphs (A) and (B), respectively,
shall be submitted to the members of Congress specified in
clause (iii), and shall include--
``(I) a description of the actions taken by the
Committee with respect to the transaction; and
``(II) identification of the determinative factors
considered under subsection (f).
``(ii) Content of certification.--Each certified notice
and report required under subparagraphs (A) and (B),
respectively, shall be signed by the chairperson and the
head of the lead agency, and shall state that, in the
determination of the Committee, there are no unresolved
national security concerns with the transaction that is the
subject of the notice or report.
``(iii) Members of congress.--Each certified notice and
report required under subparagraphs (A) and (B),
respectively, shall be transmitted--
``(I) to the Majority Leader and the Minority
Leader of the Senate;
``(II) to the chair and ranking member of the
Committee on Banking, Housing, and Urban Affairs of the
Senate and of any committee of the Senate having
oversight over the lead agency;
``(III) to the Speaker and the Minority Leader of
the House of Representatives;
``(IV) to the chair and ranking member of the
Committee on Financial Services of the House of
Representatives and of any committee of the House of
Representatives having oversight over the lead agency;
and
``(V) with respect to covered transactions
involving critical infrastructure, to the members of
the Senate from the State in which the principal place
of business of the acquired United States person is
located, and the member from the Congressional District
in which such principal place of business is located.
``(iv) Signatures; limit on delegation.--
``(I) In general.--Each certified notice and report
required under subparagraphs (A) and (B), respectively,
shall be signed by the chairperson and the head of the
lead agency, which signature requirement may only be
delegated in accordance with subclause (II).
``(II) Limitation on delegation of
certifications.--The chairperson and the head of the
lead agency may delegate the signature requirement
under subclause (I)--
``(aa) only to an appropriate employee of the
Department of the Treasury (in the case of the
Secretary of the Treasury) or to an appropriate
employee of the lead agency (in the case of the
lead agency) who was appointed by the President, by
and with the advice and consent of the Senate, with
respect to any notice provided under paragraph (1)
following the completion of a review under this
section; or
``(bb) only to a Deputy Secretary of the
Treasury (in the case of the Secretary of the
Treasury) or a person serving in the Deputy
position or the equivalent thereof at the lead
agency (in the case of the lead agency), with
respect to any report provided under subparagraph
(B) following an investigation under this section.
``(4) Analysis by director of national intelligence.--
``(A) In general.--The Director of National Intelligence
shall expeditiously carry out a thorough analysis of any threat
to the national security of the United States posed by any
covered transaction. The Director of National Intelligence
shall also seek and incorporate the views of all affected or
appropriate intelligence agencies with respect to the
transaction.
``(B) Timing.--The analysis required under subparagraph (A)
shall be provided by the Director of National Intelligence to
the Committee not later than 20 days after the date on which
notice of the transaction is accepted by the Committee under
paragraph (1)(C), but such analysis may be supplemented or
amended, as the Director considers necessary or appropriate, or
upon a request for additional information by the Committee. The
Director may begin the analysis at any time prior to acceptance
of the notice, in accordance with otherwise applicable law.
``(C) Interaction with intelligence community.--The
Director of National Intelligence shall ensure that the
intelligence community remains engaged in the collection,
analysis, and dissemination to the Committee of any additional
relevant information that may become available during the
course of any investigation conducted under subsection (b) with
respect to a transaction.
``(D) Independent role of director.--The Director of
National Intelligence shall be a nonvoting, ex officio member
of the Committee, and shall be provided with all notices
received by the Committee under paragraph (1)(C) regarding
covered transactions, but shall serve no policy role on the
Committee, other than to provide analysis under subparagraphs
(A) and (C) in connection with a covered transaction.
``(5) Submission of additional information.--No provision of
this subsection shall be construed as prohibiting any party to a
covered transaction from submitting additional information
concerning the transaction, including any proposed restructuring of
the transaction or any modifications to any agreements in
connection with the transaction, while any review or investigation
of the transaction is ongoing.
``(6) Notice of results to parties.--The Committee shall notify
the parties to a covered transaction of the results of a review or
investigation under this section, promptly upon completion of all
action under this section.
``(7) Regulations.--Regulations prescribed under this section
shall include standard procedures for--
``(A) submitting any notice of a covered transaction to the
Committee;
``(B) submitting a request to withdraw a covered
transaction from review;
``(C) resubmitting a notice of a covered transaction that
was previously withdrawn from review; and
``(D) providing notice of the results of a review or
investigation to the parties to the covered transaction, upon
completion of all action under this section.''.

913ef4d06daa33289d4f0384bc8fc77efe5c429c507402487d59f9a42762a576

IN THE UNITED STATES.
Section 721 of the Defense Production Act of 1950 (50 U.S.C. App.
2170) is amended by striking subsection (k) and inserting the
following:
``(k) Committee on Foreign Investment in the United States.--
``(1) Establishment.--The Committee on Foreign Investment in
the United States, established pursuant to Executive Order No.
11858, shall be a multi agency committee to carry out this section
and such other assignments as the President may designate.
``(2) Membership.--The Committee shall be comprised of the
following members or the designee of any such member:
``(A) The Secretary of the Treasury.
``(B) The Secretary of Homeland Security.
``(C) The Secretary of Commerce.
``(D) The Secretary of Defense.
``(E) The Secretary of State.
``(F) The Attorney General of the United States.
``(G) The Secretary of Energy.
``(H) The Secretary of Labor (nonvoting, ex officio).
``(I) The Director of National Intelligence (nonvoting, ex
officio).
``(J) The heads of any other executive department, agency,
or office, as the President determines appropriate, generally
or on a case-by-case basis.
``(3) Chairperson.--The Secretary of the Treasury shall serve
as the chairperson of the Committee.
``(4) Assistant secretary for the department of the treasury.--
There shall be established an additional position of Assistant
Secretary of the Treasury, who shall be appointed by the President,
by and with the advice and consent of the Senate. The Assistant
Secretary appointed under this paragraph shall report directly to
the Undersecretary of the Treasury for International Affairs. The
duties of the Assistant Secretary shall include duties related to
the Committee on Foreign Investment in the United States, as
delegated by the Secretary of the Treasury under this section.
``(5) Designation of lead agency.--The Secretary of the
Treasury shall designate, as appropriate, a member or members of
the Committee to be the lead agency or agencies on behalf of the
Committee--
``(A) for each covered transaction, and for negotiating any
mitigation agreements or other conditions necessary to protect
national security; and
``(B) for all matters related to the monitoring of the
completed transaction, to ensure compliance with such
agreements or conditions and with this section.
``(6) Other members.--The chairperson shall consult with the
heads of such other Federal departments, agencies, and independent
establishments in any review or investigation under subsection (a),
as the chairperson determines to be appropriate, on the basis of
the facts and circumstances of the covered transaction under review
or investigation (or the designee of any such department or agency
head).
``(7) Meetings.--The Committee shall meet upon the direction of
the President or upon the call of the chairperson, without regard
to section 552b of title 5, United States Code (if otherwise
applicable).''.

8fc41ea6bf6336a750438e687fac520bb6b5670b3d316393b92e27a7cfe30ad7

Section 721(f) of the Defense Production Act of 1950 (50 U.S.C.
App. 2170(f)) is amended--
(1) in the matter preceding paragraph (1), by striking ``among
other factors'';
(2) in paragraph (4)--
(A) in subparagraph (A) by striking ``or'' at the end;
(B) by redesignating subparagraph (B) as subparagraph (C);
(C) by inserting after subparagraph (A) the following:
``(B) identified by the Secretary of Defense as posing a
potential regional military threat to the interests of the
United States; or''; and
(D) by striking ``and'' at the end;
(3) in paragraph (5), by striking the period at the end and
inserting a semicolon; and
(4) by adding at the end the following:
``(6) the potential national security-related effects on United
States critical infrastructure, including major energy assets;
``(7) the potential national security-related effects on United
States critical technologies;
``(8) whether the covered transaction is a foreign government-
controlled transaction, as determined under subsection (b)(1)(B);
``(9) as appropriate, and particularly with respect to
transactions requiring an investigation under subsection (b)(1)(B),
a review of the current assessment of--
``(A) the adherence of the subject country to
nonproliferation control regimes, including treaties and
multilateral supply guidelines, which shall draw on, but not be
limited to, the annual report on `Adherence to and Compliance
with Arms Control, Nonproliferation and Disarmament Agreements
and Commitments' required by section 403 of the Arms Control
and Disarmament Act;
``(B) the relationship of such country with the United
States, specifically on its record on cooperating in counter-
terrorism efforts, which shall draw on, but not be limited to,
the report of the President to Congress under section 7120 of
the Intelligence Reform and Terrorism Prevention Act of 2004;
and
``(C) the potential for transshipment or diversion of
technologies with military applications, including an analysis
of national export control laws and regulations;
``(10) the long-term projection of United States requirements
for sources of energy and other critical resources and material;
and
``(11) such other factors as the President or the Committee may
determine to be appropriate, generally or in connection with a
specific review or investigation.''.

e8968f39bbeb7cf4384dc05a2da4cbc0841a05c8e8da616bf67e1480df660f49

ENFORCEMENT.
Section 721 of the Defense Production Act of 1950 (50 U.S.C. App.
2170) is amended by adding at the end the following:
``(l) Mitigation, Tracking, and Postconsummation Monitoring and
Enforcement.--
``(1) Mitigation.--
``(A) In general.--The Committee or a lead agency may, on
behalf of the Committee, negotiate, enter into or impose, and
enforce any agreement or condition with any party to the
covered transaction in order to mitigate any threat to the
national security of the United States that arises as a result
of the covered transaction.
``(B) Risk-based analysis required.--Any agreement entered
into or condition imposed under subparagraph (A) shall be based
on a risk-based analysis, conducted by the Committee, of the
threat to national security of the covered transaction.
``(2) Tracking authority for withdrawn notices.--
``(A) In general.--If any written notice of a covered
transaction that was submitted to the Committee under this
section is withdrawn before any review or investigation by the
Committee under subsection (b) is completed, the Committee
shall establish, as appropriate--
``(i) interim protections to address specific concerns
with such transaction that have been raised in connection
with any such review or investigation pending any
resubmission of any written notice under this section with
respect to such transaction and further action by the
President under this section;
``(ii) specific time frames for resubmitting any such
written notice; and
``(iii) a process for tracking any actions that may be
taken by any party to the transaction, in connection with
the transaction, before the notice referred to in clause
(ii) is resubmitted.
``(B) Designation of agency.--The lead agency, other than
any entity of the intelligence community (as defined in the
National Security Act of 1947), shall, on behalf of the
Committee, ensure that the requirements of subparagraph (A)
with respect to any covered transaction that is subject to such
subparagraph are met.
``(3) Negotiation, modification, monitoring, and enforcement.--
``(A) Designation of lead agency.--The lead agency shall
negotiate, modify, monitor, and enforce, on behalf of the
Committee, any agreement entered into or condition imposed
under paragraph (1) with respect to a covered transaction,
based on the expertise with and knowledge of the issues related
to such transaction on the part of the designated department or
agency. Nothing in this paragraph shall prohibit other
departments or agencies in assisting the lead agency in
carrying out the purposes of this paragraph.
``(B) Reporting by designated agency.--
``(i) Modification reports.--The lead agency in
connection with any agreement entered into or condition
imposed with respect to a covered transaction shall--
``(I) provide periodic reports to the Committee on
any material modification to any such agreement or
condition imposed with respect to the transaction; and
``(II) ensure that any material modification to any
such agreement or condition is reported to the Director
of National Intelligence, the Attorney General of the
United States, and any other Federal department or
agency that may have a material interest in such
modification.
``(ii) Compliance.--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 Committee to
adequately assure compliance, without--
``(I) unnecessarily diverting Committee resources
from assessing any new covered transaction for which a
written notice has been filed pursuant to subsection
(b)(1)(C), and if necessary, reaching a mitigation
agreement with or imposing a condition on a party to
such covered transaction or any covered transaction for
which a review has been reopened for any reason; or
``(II) placing unnecessary burdens on a party to a
covered transaction.''.

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Section 721 of the Defense Production Act of 1950 (50 U.S.C. App.
2170) is amended by striking subsections (d) and (e) and inserting the
following:
``(d) Action by the President.--
``(1) In general.--Subject to paragraph (4), the President may
take such action for such time as the President considers
appropriate to suspend or prohibit any covered transaction that
threatens to impair the national security of the United States.
``(2) Announcement by the president.--The President shall
announce the decision on whether or not to take action pursuant to
paragraph (1) not later than 15 days after the date on which an
investigation described in subsection (b) is completed.
``(3) Enforcement.--The President may direct the Attorney
General of the United States to seek appropriate relief, including
divestment relief, in the district courts of the United States, in
order to implement and enforce this subsection.
``(4) Findings of the president.--The President may exercise
the authority conferred by paragraph (1), only if the President
finds that--
``(A) there is credible evidence that leads the President
to believe that the foreign interest exercising control might
take action that threatens to impair the national security; and
``(B) provisions of law, other than this section and the
International Emergency Economic Powers Act, do not, in the
judgment of the President, provide adequate and appropriate
authority for the President to protect the national security in
the matter before the President.
``(5) Factors to be considered.--For purposes of determining
whether to take action under paragraph (1), the President shall
consider, among other factors each of the factors described in
subsection (f), as appropriate.
``(e) Actions and Findings Nonreviewable.--The actions of the
President under paragraph (1) of subsection (d) and the findings of the
President under paragraph (4) of subsection (d) shall not be subject to
judicial review.''.

c84c704d9fae06de992777b0a72df78c2932f2de8f0e38f88b2758b591ca644f

(a) Report on Actions.--Section 721(g) of the Defense Production
Act of 1950 (50 U.S.C. App. 2170(g)) is amended to read as follows:
``(g) Additional Information to Congress; Confidentiality.--
``(1) Briefing requirement on request.--The Committee shall,
upon request from any Member of Congress specified in subsection
(b)(3)(C)(iii), promptly provide briefings on a covered transaction
for which all action has concluded under this section, or on
compliance with a mitigation agreement or condition imposed with
respect to such transaction, on a classified basis, if deemed
necessary by the sensitivity of the information. Briefings under
this paragraph may be provided to the congressional staff of such a
Member of Congress having appropriate security clearance.
``(2) Application of confidentiality provisions.--
``(A) In general.--The disclosure of information under this
subsection shall be consistent with the requirements of
subsection (c). Members of Congress and staff of either House
of Congress or any committee of Congress, shall be subject to
the same limitations on disclosure of information as are
applicable under subsection (c).
``(B) Proprietary information.--Proprietary information
which can be associated with a particular party to a covered
transaction shall be furnished in accordance with subparagraph
(A) only to a committee of Congress, and only when the
committee provides assurances of confidentiality, unless such
party otherwise consents in writing to such disclosure.''.
(b) Annual Report.--Section 721 of the Defense Production Act of
1950 (50 U.S.C. App. 2170) is amended by adding at the end the
following:
``(m) Annual Report to Congress.--
``(1) In general.--The chairperson shall transmit a report to
the chairman and ranking member of the committee of jurisdiction in
the Senate and the House of Representatives, before July 31 of each
year on all of the reviews and investigations of covered
transactions completed under subsection (b) during the 12-month
period covered by the report.
``(2) Contents of report relating to covered transactions.--The
annual report under paragraph (1) shall contain the following
information, with respect to each covered transaction, for the
reporting period:
``(A) A list of all notices filed and all reviews or
investigations completed during the period, with basic
information on each party to the transaction, the nature of the
business activities or products of all pertinent persons, along
with information about any withdrawal from the process, and any
decision or action by the President under this section.
``(B) Specific, cumulative, and, as appropriate, trend
information on the numbers of filings, investigations,
withdrawals, and decisions or actions by the President under
this section.
``(C) Cumulative and, as appropriate, trend information on
the business sectors involved in the filings which have been
made, and the countries from which the investments have
originated.
``(D) Information on whether companies that withdrew
notices to the Committee in accordance with subsection
(b)(1)(C)(ii) have later refiled such notices, or,
alternatively, abandoned the transaction.
``(E) The types of security arrangements and conditions the
Committee has used to mitigate national security concerns about
a transaction, including a discussion of the methods that the
Committee and any lead agency are using to determine compliance
with such arrangements or conditions.
``(F) A detailed discussion of all perceived adverse
effects of covered transactions on the national security or
critical infrastructure of the United States that the Committee
will take into account in its deliberations during the period
before delivery of the next report, to the extent possible.
``(3) Contents of report relating to critical technologies.--
``(A) In general.--In order to assist Congress in its
oversight responsibilities with respect to this section, the
President and such agencies as the President shall designate
shall include in the annual report submitted under paragraph
(1)--
``(i) an evaluation of whether there is credible
evidence of a coordinated strategy by 1 or more countries
or companies to acquire United States companies involved in
research, development, or production of critical
technologies for which the United States is a leading
producer; and
``(ii) an evaluation of whether there are industrial
espionage activities directed or directly assisted by
foreign governments against private United States companies
aimed at obtaining commercial secrets related to critical
technologies.
``(B) Release of unclassified study.--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.''.
(c) Study and Report.--
(1) Study required.--Before the end of the 120-day period
beginning on the date of enactment of this Act and annually
thereafter, the Secretary of the Treasury, in consultation with the
Secretary of State and the Secretary of Commerce, shall conduct a
study on foreign direct investments in the United States,
especially investments in critical infrastructure and industries
affecting national security, by--
(A) foreign governments, entities controlled by or acting
on behalf of a foreign government, or persons of foreign
countries which comply with any boycott of Israel; or
(B) foreign governments, entities controlled by or acting
on behalf of a foreign government, or persons of foreign
countries which do not ban organizations designated by the
Secretary of State as foreign terrorist organizations.
(2) Report.--Before the end of the 30-day period beginning upon
the date of completion of each study under paragraph (1), and
thereafter in each annual report under section 721(m) of the
Defense Production Act of 1950 (as added by this section), the
Secretary of the Treasury shall submit a report to Congress, for
transmittal to all appropriate committees of the Senate and the
House of Representatives, containing the findings and conclusions
of the Secretary with respect to the study described in paragraph
(1), together with an analysis of the effects of such investment on
the national security of the United States and on any efforts to
address those effects.
(d) Investigation by Inspector General.--
(1) In general.--The Inspector General of the Department of the
Treasury shall conduct an independent investigation to determine
all of the facts and circumstances concerning each failure of the
Department of the Treasury to make any report to the Congress that
was required under section 721(k) of the Defense Production Act of
1950, as in effect on the day before the date of enactment of this
Act.
(2) Report to the congress.--Before the end of the 270-day
period beginning on the date of enactment of this Act, the
Inspector General of the Department of the Treasury shall submit a
report on the investigation under paragraph (1) containing the
findings and conclusions of the Inspector General, to the chairman
and ranking member of each committee of the Senate and the House of
Representatives having jurisdiction over any aspect of the report,
including, at a minimum, the Committee on Foreign Relations, the
Committee on Banking, Housing, and Urban Affairs, and the Committee
on Commerce, Science, and Transportation of the Senate, and the
Committee on Foreign Affairs, the Committee on Financial Services,
and the Committee on Energy and Commerce of the House of
Representatives.

1e9efc1e62e59c1cfea1e10a6addce98ee801ca9588165db5f662c3cb467f6b0

Section 721 of the Defense Production Act of 1950 (50 U.S.C. App.
2170) is amended by adding at the end the following:
``(n) Certification of Notices and Assurances.--Each notice, and
any followup information, submitted under this section and regulations
prescribed under this section to the President or the Committee by a
party to a covered transaction, and any information submitted by any
such party in connection with any action for which a report is required
pursuant to paragraph (3)(B) of subsection (l), with respect to the
implementation of any mitigation agreement or condition described in
paragraph (1)(A) of subsection (l), or any material change in
circumstances, shall be accompanied by a written statement by the chief
executive officer or the designee of the person required to submit such
notice or information certifying that, to the best of the knowledge and
belief of that person--
``(1) the notice or information submitted fully complies with
the requirements of this section or such regulation, agreement, or
condition; and
``(2) the notice or information is accurate and complete in all
material respects.''.

08c59f61e7931c6c6496bcf0d1ddad23f6f0c56e23c2add9340667f7e707c7f9

Section 721(h) of the Defense Production Act of 1950 (50 U.S.C.
App. 2170(h)) is amended to read as follows:
``(h) Regulations.--
``(1) In general.--The President shall direct, subject to
notice and comment, the issuance of regulations to carry out this
section.
``(2) Effective date.--Regulations issued under this section
shall become effective not later than 180 days after the effective
date of the Foreign Investment and National Security Act of 2007.
``(3) Content.--Regulations issued under this subsection
shall--
``(A) provide for the imposition of civil penalties for any
violation of this section, including any mitigation agreement
entered into or conditions imposed pursuant to subsection (l);
``(B) to the extent possible--
``(i) minimize paperwork burdens; and
``(ii) coordinate reporting requirements under this
section with reporting requirements under any other
provision of Federal law; and
``(C) provide for an appropriate role for the Secretary of
Labor with respect to mitigation agreements.''.

e39b3e2003fc26107f3be65b8ace35b37b67eef18d6bc0a28fc82c387086d16b

Section 721(i) of the Defense Production Act of 1950 (50 U.S.C.
App. 2170(i)) is amended to read as follows:
``(i) Effect on Other Law.--No provision of this section shall be
construed as altering or affecting any other authority, process,
regulation, investigation, enforcement measure, or review provided by
or established under any other provision of Federal law, including the
International Emergency Economic Powers Act, or any other authority of
the President or the Congress under the Constitution of the United
States.''.

5ca1e1d7c76cfeb941536e6a53b7c8889d39d6822116f6fa50109f08a599b5c6

(a) Title 31.--Section 301(e) of title 31, United States Code, is
amended by striking ``8 Assistant'' and inserting ``9 Assistant''.
(b) Title 5.--Section 5315 of title 5, United States Code, is
amended in the item relating to ``Assistant Secretaries of the
Treasury'', by striking ``(8)'' and inserting ``(9)''.

1c42256209a3730beb9c9134a9ebe77a48d0ce5615334b77e0264952cc994d39

The amendments made by this Act shall apply after the end of the
90-day period beginning on the date of enactment of this Act.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.

ac8b35f7ba79552dec01a7af070a94756f0a2d9b2ea91ad7d1a6317077e77523

National Security Foreign Investment Reform and Strengthened Transparency Act of 2007 — HR. 556

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