[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 556 Referred in Senate (RFS)]

  1st Session
                                H. R. 556


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 1, 2007

Received; read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 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,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Security Foreign Investment 
Reform and Strengthened Transparency Act of 2007''.

SEC. 2. UNITED STATES SECURITY IMPROVEMENT AMENDMENTS; CLARIFICATION OF 
              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 new subsections:
    ``(a) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Committee.--The term `Committee' means the Committee 
        on Foreign Investment in the United States.
            ``(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 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.
    ``(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 on a motion made under subparagraph (D) 
                with respect to any covered transaction, the President, 
                acting through the Committee, shall review the covered 
                transaction to determine the effects of the transaction 
                on the national security of the United States.
                    ``(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 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--
                                    ``(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 
                                consultation with the Vice 
                                Chairpersons, of the Committee.
                            ``(iii) Continuing discussions.--The 
                        approval of a withdrawal request under clause 
                        (ii) shall not be construed as precluding any 
                        party to the covered transaction from 
                        continuing informal discussions with the 
                        Committee or any Committee member regarding 
                        possible resubmission for review pursuant to 
                        this paragraph.
                    ``(D) Unilateral initiation of review.--Subject to 
                subparagraph (F), the President, 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 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 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), and--
                                    ``(I) such breach is certified by 
                                the lead department or agency 
                                monitoring and enforcing such agreement 
                                or condition 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.
                    ``(E) Timing.--Any review under this paragraph 
                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 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 
                or by such member (or by a person holding 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 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); or
                                    ``(II) the transaction is a foreign 
                                government-controlled transaction;
                            ``(ii) a roll call vote pursuant to 
                        paragraph (3)(A) in connection with a review 
                        under paragraph (1) of any covered transaction 
                        results in at least 1 vote by a Committee 
                        member against approving the transaction; or
                            ``(iii) the Director of National 
                        Intelligence identifies particularly complex 
                        intelligence concerns that could threaten to 
                        impair 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 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) Timing.--
                            ``(i) In general.--Any investigation under 
                        subparagraph (A) shall be completed before the 
                        end of the 45-day period beginning on the date 
                        of the investigation commenced.
                            ``(ii) Extensions of time.--The period 
                        established under subparagraph (B) for any 
                        investigation of a covered transaction may be 
                        extended with respect to any particular 
                        investigation by the President or by a rollcall 
                        vote of at least 2/3 of the members of the 
                        Committee involved in the investigation by the 
                        amount of time specified by the President or 
                        the Committee at the time of the extension, not 
                        to exceed 45 days, as necessary to collect and 
                        fully evaluate information relating to--
                                    ``(I) the covered transaction or 
                                parties to the transaction; and
                                    ``(II) any effect of the 
                                transaction that could threaten to 
                                impair the national security of the 
                                United States.
                    ``(C) Exception.--Notwithstanding subparagraph 
                (A)(i)(II), an investigation of a foreign government-
                controlled transaction shall not be required under this 
                paragraph if the Secretary of the Treasury, the 
                Secretary of Homeland Security, and the Secretary of 
                Commerce determine, on the basis of the review of the 
                transaction under paragraph (1), that the transaction 
                will not affect the national security of the United 
                States and no agreement or condition is required, with 
                respect to the transaction, to mitigate 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 
                Security, or of Commerce, respectively).
            ``(3) Approval of chairperson and vice chairpersons 
        required.--
                    ``(A) In general.--A review or investigation under 
                this subsection of a covered transaction shall not be 
                treated as final or complete until the results of such 
                review or investigation are approved by a majority of 
                the members of the Committee in a roll call vote and 
                signed by the Secretary of the Treasury, the Secretary 
                of Homeland Security, and the Secretary of Commerce 
                (and such authority of each such Secretary may not be 
                delegated to any person other than the Deputy Secretary 
                or an appropriate Under Secretary of the Treasury, of 
                Homeland Security, or of Commerce, respectively).
                    ``(B) Additional action required in certain 
                cases.--In the case of any roll call vote pursuant to 
                subparagraph (A) in connection with an investigation 
                under paragraph (2) of any foreign government-
                controlled transaction in which there is at least 1 
                vote by a Committee member against approving the 
                transaction, the investigation shall not be treated as 
                final or complete until the findings and report 
                resulting from such investigation are signed by the 
                President (in addition to the Chairperson and the Vice 
                Chairpersons of the Committee under subparagraph (A)).
                    ``(C) Presidential action required in certain 
                cases.--In the case of any covered transaction in which 
                any party to the transaction is--
                            ``(i) a person of a country the government 
                        of which the Secretary of State has determined, 
                        for purposes of section 6(j) of the Export 
                        Administration Act of 1979 (as continued in 
                        effect pursuant to the International Emergency 
                        Economic Powers Act), section 40 of the Arms 
                        Export Control Act, section 620A of the Foreign 
                        Assistance Act of 1961, or other provision of 
                        law, is a government that has repeatedly 
                        provided support for acts of international 
                        terrorism;
                            ``(ii) a government described in clause 
                        (i); or
                            ``(iii) person controlled, directly or 
                        indirectly, by any such government,
                a review or investigation under this subsection of such 
                covered transaction shall not be treated as final or 
                complete until the results of such review or 
                investigation are approved and signed by the President.
            ``(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 of any covered transaction, including 
                making requests for information to the Director of the 
                Office of Foreign Assets Control within the Department 
                of the Treasury and the Director of the Financial 
                Crimes Enforcement Network. The Director of National 
                Intelligence also shall seek and incorporate the views 
                of all affected or appropriate intelligence agencies.
                    ``(B) Timing.--The Director of National 
                Intelligence shall be provided adequate time to 
                complete the analysis required under subparagraph (A), 
                including any instance described in paragraph 
                (2)(A)(iii).
                    ``(C) Independent role of director.--The Director 
                of National Intelligence shall not be a member of the 
                Committee and shall serve no policy role with the 
                Committee other than to provide analysis under 
                subparagraph (A) 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 on-going.
            ``(6) Regulations.--Regulations prescribed under this 
        section shall include standard procedures for--
                    ``(A) submitting any notice of a proposed or 
                pending covered transaction to the Committee;
                    ``(B) submitting a request to withdraw a proposed 
                or pending covered transaction from review; and
                    ``(C) resubmitting a notice of proposed or pending 
                covered transaction that was previously withdrawn from 
                review.''.

SEC. 3. STATUTORY ESTABLISHMENT OF THE COMMITTEE ON FOREIGN INVESTMENT 
              IN THE UNITED STATES.

    (a) In General.--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 new subsection:
    ``(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.
                    ``(G) The Secretary of Energy.
                    ``(H) The Chairman of the Council of Economic 
                Advisors.
                    ``(I) The United States Trade Representative.
                    ``(J) The Director of the Office of Management and 
                Budget.
                    ``(K) The Director of the National Economic 
                Council.
                    ``(L) The Director of the Office of Science and 
                Technology Policy.
                    ``(M) The President's Assistant for National 
                Security Affairs.
                    ``(N) Any other designee of the President from the 
                Executive Office of the President.
            ``(3) Chairperson; vice chairpersons.--The Secretary of the 
        Treasury shall be the Chairperson of the Committee. The 
        Secretary of Homeland Security and the Secretary of Commerce 
        shall be the Vice Chairpersons of the Committee.
            ``(4) Other members.--Subject to subsection (b)(4)(B), the 
        Chairperson of the Committee shall involve the heads of such 
        other Federal departments, agencies, and independent 
        establishments in any review or investigation under subsection 
        (b) as the Chairperson, after consulting with the Vice 
        Chairpersons, determines to be appropriate on the basis of the 
        facts and circumstances of the transaction under investigation 
        (or the designee of any such department or agency head).
            ``(5) Meetings.--The Committee shall meet upon the 
        direction of the President or upon the call of the Chairperson 
        of the Committee without regard to section 552b of title 5, 
        United States Code (if otherwise applicable).
            ``(6) Collection of evidence.--Subject to subsection (c), 
        the Committee may, for the purpose of carrying out this 
        section--
                    ``(A) sit and act at such times and places, take 
                such testimony, receive such evidence, administer such 
                oaths; and
                    ``(B) require the attendance and testimony of such 
                witnesses and the production of such books, records, 
                correspondence, memoranda, papers, and documents as the 
                Chairperson of the Committee may determine advisable.
            ``(7) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary of the Treasury 
        for each of fiscal years 2008, 2009, 2010, and 2011 expressly 
        and solely for the operations of the Committee that are 
        conducted by the Secretary, the sum of $10,000,000.''.
    (b) Technical and Conforming Amendment.--The first sentence of 
section 721(c) of the Defense Production Act of 1950 (50 U.S.C. App. 
2170(c)) is amended--
            (1) by striking ``material filed with'' and inserting 
        ``material, including proprietary business information, filed 
        with, or testimony presented to,''; and
            (2) by striking ``or documentary material'' the second 
        place such term appears and inserting ``, documentary material, 
        or testimony''.

SEC. 4. ADDITIONAL FACTORS REQUIRED TO BE CONSIDERED.

    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)--
                    (A) by striking ``may'' and inserting ``shall''; 
                and
                    (B) by striking ``among other factors'';
            (2) by striking ``and'' at the end of paragraph (4);
            (3) by striking the period at the end of paragraph (5) and 
        inserting a semicolon; and
            (4) by adding at the end the following new paragraphs:
            ``(6) whether the covered transaction has a security-
        related impact on critical infrastructure in the United States;
            ``(7) the potential effects of the covered transaction on 
        the efforts of the United States to curtail human smuggling 
        (and such term, for purposes of this paragraph, means any act 
        constituting a violation of section 274(a) of the Immigration 
        and Nationality Act) and to curtail drug smuggling with regard 
        to any country which is not described in paragraphs (1) and (2) 
        of section 1003(a) of the Controlled Substances Import and 
        Export Act;
            ``(8) whether the covered transaction is a foreign 
        government-controlled transaction; and
            ``(9) such other factors as the President or the 
        President's designee may determine to be appropriate, generally 
        or in connection with a specific review or investigation.''.

SEC. 5. NONWAIVER OF SOVEREIGN IMMUNITY.

    Section 721(d) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2170(d)) is amended by adding at the end the following new 
sentence: ``The United States shall not be held liable for any losses 
or other expenses incurred by any party to a covered transaction as a 
result of actions taken under this section after a covered transaction 
has been consummated if the party did not submit a written notice of 
the transaction to the Chairperson of the Committee under subsection 
(b)(1)(C) or did not wait until the completion of any review or 
investigation under subsection (b), or the end of the 15-day period 
referred to in this subsection, before consummating the transaction.''.

SEC. 6. MITIGATION, TRACKING, AND POST-CONSUMMATION MONITORING AND 
              ENFORCEMENT.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended by inserting after subsection (k) (as amended by 
section 3 of this Act) the following new subsection:
    ``(l) Mitigation, Tracking, and Postconsummation Monitoring and 
Enforcement.--
            ``(1) Mitigation.--
                    ``(A) In general.--The Committee or any agency 
                designated by the Chairperson and Vice Chairpersons 
                may, on behalf of the Committee, negotiate, enter into 
                or impose, and enforce any agreement or condition with 
                any party to a covered transaction in order to mitigate 
                any threat to the national security of the United 
                States that arises as a result of the 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 timeframes 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 Committee may 
                designate 1 or more appropriate Federal departments or 
                agencies, other than any entity of the intelligence 
                community (as defined in the National Security Act of 
                1947), as a lead agency to carry out, on behalf of the 
                Committee, the requirements of subparagraph (A) with 
                respect to any covered transaction that is subject to 
                such subparagraph.
            ``(3) Negotiation, modification, monitoring, and 
        enforcement.--
                    ``(A) Designation of agency.--The Committee shall 
                designate 1 or more Federal departments or agencies as 
                the lead agency to 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.
                    ``(B) Reporting by designated agency.--
                            ``(i) Implementation reports.--Each Federal 
                        department or agency designated by the 
                        Committee as a lead agency under subparagraph 
                        (A) in connection with any agreement entered 
                        into or condition imposed under paragraph (1) 
                        with respect to a covered transaction shall--
                                    ``(I) report, as appropriate but 
                                not less than once in each 6-month 
                                period, to the Chairperson and Vice 
                                Chairpersons of the Committee on the 
                                implementation of such agreement or 
                                condition; and
                                    ``(II) require, as appropriate, any 
                                party to the covered transaction to 
                                report to the head of such department 
                                or agency (or the designee of such 
                                department or agency head) on the 
                                implementation or any material change 
                                in circumstances.
                            ``(ii) Modification reports.--Any Federal 
                        department or agency designated by the 
                        Committee as a lead agency under subparagraph 
                        (A) in connection with any agreement entered 
                        into or condition imposed with respect to a 
                        covered transaction shall--
                                    ``(I) provide periodic reports to 
                                the Chairperson and Vice Chairpersons 
                                of the Committee on any modification to 
                                any such agreement or condition imposed 
                                with respect to the transaction; and
                                    ``(II) ensure that any significant 
                                modification to any such agreement or 
                                condition is reported to the Director 
                                of National Intelligence and to any 
                                other Federal department or agency that 
                                may have a material interest in such 
                                modification.
                            ``(iii) 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.''.

SEC. 7. INCREASED OVERSIGHT BY THE CONGRESS.

    (a) Report on Actions.--Section 721(g) of the Defense Production 
Act of 1950 (50 U.S.C. App. 2170) is amended to read as follows:
    ``(g) Reports to the Congress.--
            ``(1) Reports on completed committee investigations.--
                    ``(A) In general.--Not later than 5 days after the 
                completion of a Committee investigation of a covered 
                transaction under subsection (b)(2), or, if the 
                President indicates an intent to take any action 
                authorized under subsection (d) with respect to the 
                transaction, after the end of 15-day period referred to 
                in subsection (d), the Chairperson or a Vice 
                Chairperson of the Committee shall submit a written 
                report on the findings or actions of the Committee with 
                respect to such investigation, the determination of 
                whether or not to take action under subsection (d), an 
                explanation of the findings under subsection (e), and 
                the factors considered under subsection (f), with 
                respect to such transaction, to--
                            ``(i) the Majority Leader and the Minority 
                        Leader of the Senate;
                            ``(ii) the Speaker and the Minority Leader 
                        of the House of Representatives;
                            ``(iii) the chairman and ranking member of 
                        each committee of the House of Representatives 
                        and the Senate with jurisdiction over any 
                        aspect of the covered transaction and its 
                        possible effects on national security, 
                        including, at a minimum, the Committee on 
                        Foreign Affairs, the Committee on Financial 
                        Services, and the Committee on Energy and 
                        Commerce of the House of Representatives; and
                            ``(iv) Senators representing States and 
                        Members of Congress representing congressional 
                        districts that would be significantly affected 
                        by the covered transaction.
                    ``(B) Notice and briefing requirement.--If a 
                written request for a briefing on a covered 
                transaction, or on compliance with a mitigation 
                agreement or condition imposed with respect to such 
                transaction, is submitted to the Committee by any 
                Senator or Member of Congress who receives a report on 
                the transaction under subparagraph (A), the Chairperson 
                or a Vice Chairperson (or such other person as the 
                Chairperson or a Vice Chairperson may designate) shall 
                provide 1 classified briefing to each House of the 
                Congress from which any such briefing request 
                originates in a secure facility of appropriate size and 
                location that shall be open only to the Majority Leader 
                and the Minority Leader of the Senate, the Speaker and 
                the Minority Leader of the House of Representatives, 
                (as the case may be) the chairman and ranking member of 
                each committee of the House of Representatives or the 
                Senate (as the case may be) with jurisdiction over any 
                aspect of the covered transaction and its possible 
                effects on national security, including, at a minimum, 
                the Committee on Foreign Affairs, the Committee on 
                Financial Services, and the Committee on Energy and 
                Commerce of the House of Representatives, and 
                appropriate staff members who have security clearance.
            ``(2) Application of other provision.--
                    ``(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 or any committee of the Congress 
                shall be subject to the same limitations on disclosure 
                of information as are applicable under such subsection.
                    ``(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 
                the 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 inserting after subsection (l) 
(as added by section 6 of this Act) the following new subsection:
    ``(m) Annual Report to the Congress.--
            ``(1) In general.--The Chairperson of the Committee shall 
        transmit a report to the chairman and ranking member of each 
        committee of the House of Representatives and the Senate with 
        jurisdiction over any aspect of the report, including, at a 
        minimum, the Committee on Foreign Affairs, the Committee on 
        Financial Services, and the Committee on Energy and Commerce of 
        the House of Representatives, before July 31 of each year on 
        all 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 report under paragraph (1) shall contain the 
        following information with respect to each covered transaction:
                    ``(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 the 
                status of the review or investigation, information on 
                any withdrawal from the process, any rollcall votes by 
                the Committee under this section, any extension of time 
                for any investigation, and any presidential decision or 
                action under this section.
                    ``(B) Specific, cumulative, and, as appropriate, 
                trend information on the numbers of filings, 
                investigations, withdrawals, and presidential decisions 
                or actions 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 re-filed 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 the Committee and any lead 
                departments or agencies designated under subsection (l) 
                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 such report, to the extent possible.
            ``(3) Contents of report relating to critical 
        technologies.--
                    ``(A) In general.--In order to assist the 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) the following:
                            ``(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.
                            ``(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) Critical technologies defined.--For purposes 
                of this paragraph, the term `critical technologies' 
                means technologies identified under title VI of the 
                National Science and Technology Policy, Organization, 
                and Priorities Act of 1976 or other critical 
                technology, critical components, or critical technology 
                items essential to national defense or national 
                security identified pursuant to this section.
                    ``(C) Release of unclassified study.--That portion 
                of the annual report under paragraph (1) that is 
                required by this paragraph may be classified. An 
                unclassified version of that portion of the report 
                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 the 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 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 completion of each study under paragraph (1) or in the 
        next annual report under section 721(m) of the Defense 
        Production Act of 1950 (as added by subsection (b)), the 
        Secretary of the Treasury shall submit a report to the 
        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 before the date of 
        the enactment of this Act).
            (2) Report to the congress.--Before the end of the 270-day 
        period beginning on the date of the enactment of this Act, the 
        Inspector General of the Department of the Treasury shall 
        submit a report to the chairman and ranking member of each 
        committee of the House of Representatives and the Senate with 
        jurisdiction over any aspect of the report, including, at a 
        minimum, the Committee on Foreign Affairs, the Committee on 
        Financial Services, and the Committee on Energy and Commerce of 
        the House of Representatives, on the investigation under 
        paragraph (1) containing the findings and conclusions of the 
        Inspector General.

SEC. 8. CERTIFICATION OF NOTICES AND ASSURANCES.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended by inserting after subsection (m) (as added by section 
7(b) of this Act) the following new subsection:
    ``(n) Certification of Notices and Assurances.--Each notice 
required to be submitted, by a party to a covered transaction, to the 
President or the President's designee under this section and 
regulations prescribed under such section, and any information 
submitted by any such party in connection with any action for which a 
report is required pursuant to paragraph (3)(B)(ii) of subsection (l) 
with respect to the implementation of any mitigation agreement or 
condition described in paragraph (1)(A) of such subsection, 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 person's knowledge and belief--
            ``(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.''.

SEC. 9. REGULATIONS.

    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.--The President shall direct the issuance of 
regulations to carry out this section. Such regulations shall, to the 
extent possible, minimize paperwork burdens and shall to the extent 
possible coordinate reporting requirements under this section with 
reporting requirements under any other provision of Federal law.''.

SEC. 10. EFFECT ON OTHER LAW.

    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.''.

SEC. 11. EFFECTIVE DATE.

    The amendments made by this Act shall apply after the end of the 
90-day period beginning on the date of the enactment of this Act.

            Passed the House of Representatives February 28, 2007.

            Attest:

                                            LORRAINE C. MILLER,

                                                                 Clerk.