[Congressional Record Volume 153, Number 33 (Tuesday, February 27, 2007)]
[House]
[Pages H1970-H1977]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                               AMENDMENTS

  Under clause 8 of rule XVIII, proposed amendments were submitted as 
follows:

                                H.R. 556

                         Offered By: Mr. Blunt

       Amendment No. 1: Strike all after the enacting clause and 
     insert the following:

     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 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.--The President, the 
     Committee, or any member 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).
       ``(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.

       ``(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 findings and the report resulting 
     from 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 of the Treasury, the 
     Deputy Secretary of Homeland

[[Page H1971]]

     Security, or the Deputy Secretary 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)).
       ``(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) 30-day minimum.--The Director of National 
     Intelligence shall be provided no less than 30 days to 
     complete the analysis required under subparagraph (A), except 
     in 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) Resubmittals of notice and requests for additional 
     review or investigation.--
       ``(A) In general.--No provision of this subsection shall be 
     construed as prohibiting any party to a covered transaction 
     from--
       ``(i) 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; or
       ``(ii) requesting a review or investigation of the 
     transaction after any previous review or investigation of the 
     same or a similar transaction has become final if information 
     material to the prior review or investigation and not 
     previously submitted to the Committee becomes known or if any 
     material change in circumstances to the covered transaction 
     has occurred since the review or investigation.
       ``(B) Approval of request.--In the case of a request 
     referred to in subparagraph (A)(ii), the Committee shall 
     determine by consensus whether to grant a request.
       ``(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 2007, 2008, 2009, and 2010, 
     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) whether the covered transaction is a foreign 
     government-controlled transaction; and
       ``(8) 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 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.
       ``(B) Risk-based analysis required.--Any agreement entered 
     into or condition imposed under subparagraph (A) shall be 
     based on a risk-based analysis 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.

[[Page H1972]]

       ``(B) Designation of agency.--The Committee may designate 
     an appropriate Federal department or agency, other than any 
     entity of the intelligence community (as defined in the 
     National Security Act of 1947), as the lead agency to carry 
     out 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 
     a Federal department or agency as the lead agency to 
     negotiate, modify, monitor, and enforce 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.--The 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) provide periodic reports 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.--The 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.''.

     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; and
       ``(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 the 
     Committee on International Relations, the Committee on 
     Financial Services, and the Committee on Energy and Commerce 
     of the House of Representatives.
       ``(B) Notice and briefing requirement.--If a written 
     request for a briefing on a covered 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 the 
     Committee on International Relations, 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) Semi-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) Semi-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 the 
     Committee on International Relations, the Committee on 
     Financial Services, and the Committee on Energy and Commerce 
     of the House of Representatives, before January 31 and July 
     31 of each year on all the reviews and investigations of 
     covered transactions conducted under subsection (b) during 
     the 6-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 conducted 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.
       ``(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 semi-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 
     semi-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) 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

[[Page H1973]]

     report, including the Committee on International Relations, 
     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.
       (d) Study and Report.--
       (1) Study required.--Before the end of the 120-day period 
     beginning on the date of the enactment of this Act, 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 the study under paragraph (1) or in the 
     next semi-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, 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.

     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.''.

                                H.R. 556

                         Offered By: Mr. Blunt

       Amendment No. 2: Strike all after the enacting clause and 
     insert the following:

     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), 
     (b), and (c) 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

[[Page H1974]]

     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.
       ``(c) Confidentiality of Information.--Any information or 
     documentary material, including proprietary business 
     information, filed with, or testimony presented to, the 
     President or the President's designee pursuant to this 
     section shall be exempt from disclosure under section 552 of 
     title 5, United States Code, and no such information, 
     documentary material, or testimony may be made public, except 
     as may be relevant to any administrative or judicial action 
     or proceeding. Nothing in this subsection shall be construed 
     to prevent disclosure to either House of Congress or to any 
     duly authorized committee or subcommittee of the Congress.''.

     SEC. 3. STATUTORY ESTABLISHMENT OF THE COMMITTEE ON FOREIGN 
                   INVESTMENT 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 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.''.

     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) whether the covered transaction is a foreign 
     government-controlled transaction; and

[[Page H1975]]

       ``(8) 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; and
       ``(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.
       ``(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

[[Page H1976]]

     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 condition.
       ``(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.

                                H.R. 556

                 Offered by Mr. Frank of Massachusetts

       Amendment No. 3: Page 20, line 12, insert ``, conducted by 
     the Committee,'' after ``analysis''.
       Page 22, line 17, strike ``provide periodic reports'' and 
     insert ``report, as appropriate but not less than once in 
     each 6-month period,''.
       Page 23, line 23, strike the closing quotation marks and 
     the 2nd period.
       Page 23, after line 23, insert the following new clause:
       ``(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.''.

       Page 25, line 6, insert ``, at a minimum,'' after 
     ``including''.
       Page 25, line 12, insert ``, or on compliance with a 
     mitigation agreement or condition imposed with respect to 
     such transaction,'' after ``covered transaction''.
       Page 26, beginning on line 5, strike ``the Committee on 
     International Relations'' and insert ``, at a minimum, the 
     Committee on Foreign Affairs''.
       Page 27, beginning on line 10, strike ``the Committee on 
     International Relations'' and insert ``, at a minimum, the 
     Committee on Foreign Affairs''.
       Page 28, line 23, insert ``, 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'' before the 
     period.
       Page 30, line 21, insert ``and annually thereafter'' after 
     ``of this Act''.
       Page 31, line 13, strike ``completion of the study'' and 
     insert ``completion of each study''.
       Page 31, line 21, insert ``described in paragraph (1)'' 
     after ``to the study''.
       Page 31, after line 24, insert the following new 
     subsection:
       (d) Investigation by Inspector General.--

[[Page H1977]]

       (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.

                                H.R. 556

                      Offered By: Mr. King of Iowa

       Amendment No. 4: Page 18, after line 20, insert the 
     following new paragraph (and redesignate subsequent 
     paragraphs accordingly):
       ``(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.''.

                                H.R. 556

                         Offered By: Mr. McCaul

       Amendment No. 5: Page 30, line 17, strike the closing 
     quotation marks and the second period.
       Page 30, after line 17, insert the following new paragraph:
       ``(4) Contents of report related to barriers to investment 
     into the united states.--In order to assist the Congress in 
     its oversight role of ensuring the national security of the 
     United States by ensuring a healthy investment climate, the 
     President, and such agencies as the President shall 
     designate, shall include in the annual report submitted under 
     paragraph (1) a detailed discussion of factors, including the 
     effective rate of taxation on entrepreneurs and businesses 
     and other sources of capital in the United States as compared 
     to other countries, that affect the number of filings, 
     changes in the types of business sectors involved in filings, 
     and changes in the number of investments originating from 
     specific countries.''.

                                H.R. 556

                         Offered By: Mr. McCain

       Amendment No. 6: Page 30, line 17, strike the closing 
     quotation marks and the second period.
       Page 30, after line 17, insert the following new paragraph:
       ``(4) Contents of report related to barriers to investment 
     into the united states.--In order to assist the Congress in 
     its oversight role of ensuring the national security of the 
     United States by ensuring a healthy investment climate, the 
     President, and such agencies as the President shall 
     designate, shall include in the annual report submitted under 
     paragraph (1) a detailed discussion of factors, including the 
     amount of burdensome regulation in the United States as 
     compared to other countries, that affect the number of 
     filings, changes in the types of business sectors involved in 
     filings, and changes in the number of investments originating 
     from specific countries.''.

                                H.R. 556

                         Offered By: Mr. McCaul

       Amendment No. 7: Page 30, line 17, strike the closing 
     quotation marks and the second period.
       Page 30, after line 17, insert the following new paragraph:
       ``(4) Contents of report related to barriers to investment 
     into the united states.--In order to assist the Congress in 
     its oversight role of ensuring the national security of the 
     United States by ensuring a healthy investment climate, the 
     President, and such agencies as the President shall 
     designate, shall include in the annual report submitted under 
     paragraph (1) a detailed discussion of factors, including a 
     detailed discussion, including trend information on the 
     number of jobs in the United States related to foreign 
     investment resulting from covered transactions, that affect 
     the number of filings, changes in the types of business 
     sectors involved in filings, and changes in the number of 
     investments originating from specific countries.''.

                                H.R. 556

                   Offered By: Mr. Davis of Kentucky

       Amendment No. 8: Page 11, line 2, strike ``in a rollcall 
     vote''.

                                H.R. 556

                   Offered By: Mr. Davis of Kentucky

       Amendment No. 9: Page 11, beginning on line 7, strike ``or 
     an appropriate Under Secretary'' and insert ``or an 
     appropriate Senate confirmed official''.

                                H.R. 556

                   Offered By: Mr. Davis of Kentucky

       Amendment No. 10: Page 28, line 3, strike ``in a rollcall 
     vote''.

                                H.R. 556

                         Offered By: Mr. Barrow

       Amendment No. 11: Page 14, line 18, strike the closing 
     quotation marks and the 2nd period.
       Page 14, after line 18, insert the following new paragraph:
       ``(7) Notice to the congress.--
       ``(A) Receipt of written notification.--Before the end of 
     the 5-day period beginning on the day the Chairperson of the 
     Committee receives a written notice under paragraph (1)(C) of 
     a proposed covered transaction, the Chairperson shall provide 
     notice of the receipt of such written notice to the Members 
     of Congress referred to in subparagraph (D).
       ``(B) Commencement of investigation.--Not later than 1 day 
     after commencing an investigation under paragraph (2) of a 
     covered transaction, the Chairperson shall provide notice of 
     the investigation and relevant information regarding the 
     covered transaction, including relevant ownership records, to 
     the Members of Congress referred to in subparagraph (D).
       ``(C) Access to investigations.--The Chairperson of the 
     Committee shall--
       ``(i) provide responses in a timely manner to any inquiries 
     made by the Members of Congress referred to in subparagraph 
     (D) regarding an investigation; and
       ``(ii) notify such Members of Congress promptly of the 
     decision of the Committee upon completion of the 
     investigation.
       ``(D) Members of congress.--The Members of Congress 
     referred to in this paragraph are as follows:
       ``(i) The Speaker and Minority Leader of the House of 
     Representatives.
       ``(ii) The Majority and Minority Leader of the Senate.
       ``(iii) The Chairs and Ranking Members of the Committee on 
     Financial Services, the Committee on Homeland Security, the 
     Committee on Armed Services, the Committee on Energy and 
     Commerce, the Committee on Transportation and Infrastructure, 
     and the Permanent Select Committee on Intelligence of the 
     House of Representatives.
       ``(iv) The Chairs and Ranking Members of the Committee on 
     Finance, the Committee on Homeland Security and Governmental 
     Affairs, the Committee on Armed Services, the Committee on 
     Commerce, Science, and Transportation, and the Select 
     Committee on Intelligence of the Senate.
       ``(v) The Senators representing States and the Members of 
     Congress representing districts affected by the proposed 
     covered transaction.''.

                                H.R. 556

                         Offered By: Mr. Barrow

       Amendment No. 12: Page 24, line 26, strike ``and'' after 
     the semicolon.
       Page 25, line 9, strike the period at the end and insert 
     ``; and''.
       Page 25, after line 9, insert the following new clause:
       ``(iv) Senators representing States and Members of Congress 
     representing congressional districts that would be 
     significantly affected by the covered transaction.''.