[Congressional Record Volume 153, Number 35 (Thursday, March 1, 2007)]
[Senate]
[Pages S2510-S2512]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BINGAMAN (for himself and Mr. Lugar):
  S. 740. A bill to establish in the Department of Commerce an Under 
Secretary for United States Direct Investment, and for other purposes; 
to the Committee on Finance.
  Mr. BINGAMAN. Mr. President, I rise today to introduce the Invest USA 
Act of 2007 with my colleague from Indiana, Senator Lugar.
  Our legislation creates a United States Direct Investment 
Administration, USDIA, within the Department of Commerce, to be led by 
an Under Secretary of Commerce for United States Direct Investment. 
This new agency will coordinate efforts to attract more foreign direct 
investment in the United States, thereby making our economy more 
competitive by encouraging multinational businesses to open new 
facilities or expand existing operations here, rather than elsewhere.
  Specifically, our legislation tasks the new agency with five 
principal duties. First, USDIA will collect and analyze data concerning 
direct investment flows into both the United States and other 
countries.
  Second, USDIA will publish an annual direct investment report for 
Congress. This report sets forth the data that USDIA collects and 
analyzes in the course of its work, identifying best practices in 
attracting direct investment at the Federal, State, and regional 
levels, as well as those used by other advanced industrialized 
countries.
  Third, USDIA will publish an annual direct investment agenda to make 
strategic policy recommendations based on the direct investment report. 
It will also act as the lead agency within a broader interagency Direct 
Investment Promotion Committee, which will advocate and implement 
USDIA's strategic policy recommendations. For example, as part of this 
work, it will create and maintain an internet-accessible database of 
direct investment opportunities in the United States.
  Fourth, the legislation requires USDIA to focus on direct investment 
in critical high-technology industries throughout the course of its 
work.
  The United States continues to be the premier place in the world to 
locate a business. However, in an increasingly globalized world, where 
the factors of production can easily migrate from country to country, 
we can no longer passively rely on our inherent competitive advantages 
alone. We must actively publicize them.
  Many countries, particularly those in Europe, have committed 
significant resources to recruiting foreign direct investment. For 
example, in many cases, our competitors maintain offices in the United 
States, where they regularly meet with American business leaders, 
encouraging them to consider locating facilities in their country.
  Currently, the United States lacks any comparable program to entice 
multinational businesses to invest and create jobs here. Instead, we 
relegate direct investment promotion to economic development agencies 
at the State, regional, and local level. Although these local economic 
development agencies make valiant efforts to attract direct investment, 
our lack of a national strategy creates two problems.
  First, too often, these local economic development agencies suffer 
from limited resources, which dwindle even further if the locality is 
suffering from an economic downturn due to a plant closing or for other 
reasons. Second, the dominance of State and local agencies creates the 
impression of an uncoordinated patchwork in the minds of foreign 
business executives. Consequently, State and local economic development 
agencies are too often unable to perform their recruitment missions 
effectively. The Invest USA Act addresses these flaws by creating and 
funding USDIA, which can act as a one-stop shop for multinational 
businesses seeking to establish new operations or expand existing ones.
  Of course, we need to continue to focus on persuading U.S. businesses 
to stay in this country. But we also need to launch a concurrent, 
robust effort to encourage multinational businesses to establish or 
move facilities to our country. The end result is the same: more jobs 
for U.S. workers.
  According to the Organization for International Investment, direct 
investment in the U.S. totaled $128.6 billion in 2005, an increase of 
20 percent from the previous year, and according to the latest 
available Government data, as of December 31, 2004, U.S. subsidiaries 
of foreign multinationals employed approximately 5.1 million American 
workers, or 4.7 percent of the workforce. Moreover, according to the 
latest available Department of Commerce data, average per-worker 
compensation paid by U.S. subsidiaries of foreign multinationals in 
2004 was $63,428, over 32 percent higher than compensation at U.S. 
companies as a whole.
  Senator Lugar and I believe that with a proactive, strategically 
focused effort at the Federal level, we can do even better at 
attracting the best jobs to our country. The Invest USA Act of 2007 
will allow us to do just that.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 740

       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 ``Invest USA Act of 2007''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Administration.--The term ``Administration'' means the 
     United States Direct Investment Administration established 
     under section 4.
       (2) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means the Committee 
     on Finance and the Committee on Commerce, Science, and 
     Transportation of the Senate and the Committee on Energy and 
     Commerce and the Committee on Ways and Means of the House of 
     Representatives.
       (3) Critical high-technology industries.--The term 
     ``critical high-technology industries'' means industries 
     involved in technology--
       (A) the development of which will--
       (i) provide a wide array of economic, environmental, 
     energy, and defense-related returns for the United States; 
     and
       (ii) ensure United States economic, environmental, energy, 
     and defense-related welfare; and
       (B) in which the United States has an abiding interest in 
     creating or maintaining secure domestic sources.
       (4) Department.--The term ``Department'' means the 
     Department of Commerce.
       (5) Under secretary.--The term ``Under Secretary'' means 
     the Under Secretary of Commerce for United States Direct 
     Investment described in section 4(a).
       (6) United states direct investment promotion committee.--
     The term ``United States Direct Investment Promotion 
     Committee'' means the Interagency United States Direct 
     Investment Promotion Committee established under section 7.
       (7) WTO agreement.--The term ``WTO Agreement'' means the 
     Agreement establishing the World Trade Organization entered 
     into on April 15, 1994.

     SEC. 3. RELATION TO CFIUS.

       The provisions of this Act shall not affect the 
     implementation or application of section 721 of the Defense 
     Production Act of 1950 (50 U.S.C. App. 2170) and the 
     activities of the Committee on Foreign Investment in the 
     United States (or any successor committee).

     SEC. 4. ESTABLISHMENT OF UNITED STATES DIRECT INVESTMENT 
                   ADMINISTRATION.

       (a) In General.--There is established in the Department of 
     Commerce a United States Direct Investment Administration, 
     which shall be headed by an Under Secretary of Commerce for 
     United States Direct Investment. The Under Secretary shall be 
     appointed by the President, by and with the advice and 
     consent of the Senate, and shall be compensated at the rate 
     of pay provided for a position at level III of the Executive 
     Schedule under section 5314 of title 5, United States Code.
       (b) Deputy Under Secretary.--There shall be in the 
     Administration a Deputy Under Secretary for United States 
     Direct Investment, who shall be appointed by the

[[Page S2511]]

     President, by and with the advice of the Senate, and shall be 
     compensated at the rate of pay provided for a position at 
     level IV of the Executive Schedule under section 5315 of 
     title 5, United States Code.
       (c) Staff.--The Under Secretary may appoint such additional 
     personnel to serve in the Administration as the Under 
     Secretary determines necessary.
       (d) Duties.--The Under Secretary, in cooperation with the 
     Economics and Statistics Administration and other offices at 
     the Department, shall--
       (1) collect and analyze data related to the flow of direct 
     investment in the United States and throughout the world, as 
     described in section 5;
       (2) submit to the appropriate congressional committees an 
     annual United States Direct Investment Report, as described 
     in section 6;
       (3) develop and publish an annual United States Direct 
     Investment Agenda;
       (4) assume responsibility as the lead agency for advocating 
     and implementing strategic policies that will increase direct 
     investment in the United States; and
       (5) coordinate with the President regarding implementation 
     of section 721 of the Defense Production Act of 1950 (50 
     U.S.C. App. 2170) and the activities of the Committee on 
     Foreign Investment in the United States (or any successor 
     committee).
       (e) Conforming Amendments.--
       (1) Section 5314 of title 5, United States Code, is amended 
     by adding at the end the following: ``Under Secretary of 
     Commerce for United States Direct Investment.''.
       (2) Section 5315 of title 5, United States Code, is amended 
     by adding at the end the following: ``Deputy Under Secretary 
     of Commerce for United States Direct Investment.''.

     SEC. 5. ANNUAL DIRECT INVESTMENT REPORT.

       (a) Annual Direct Investment Report.--Not later than 
     October 1, 2008, and annually thereafter, the Under Secretary 
     shall submit a report on the data identified and the analysis 
     described in subsection (b) for the preceding calendar year 
     (which shall be known as the ``Annual Direct Investment 
     Report''). The Report shall be submitted to the President and 
     the appropriate congressional committees.
       (b) Data Identification.--
       (1) In general.--The data identified and analysis for the 
     Report described in subsection (a) means the data identified 
     and analyzed by the Under Secretary of Commerce, in 
     cooperation with the Economic and Statistics Administration 
     and other offices at the Department and with the assistance 
     of other departments and agencies, including the Office of 
     the United States Trade Representative, for the preceding 
     calendar year regarding the following:
       (A) Policies, programs, and practices at the State and 
     regional level designed to attract direct investment.
       (B) The amount of direct investment attracted in each such 
     State and region.
       (C) Policies, programs, and practices in foreign countries 
     designed to attract direct investment, and the amount of 
     direct investment attracted in each such foreign country.
       (D) A comparison of the levels of direct investment 
     attracted in the United States and in foreign countries, 
     including a matrix of inputs affecting the level of direct 
     investment.
       (E) Specific sectors in the United States and in foreign 
     countries in which direct investments are being made, 
     including the specific amounts invested in each sector, with 
     particular emphasis on critical high-technology industries.
       (F) Trends in direct investment, with particular emphasis 
     on critical high-technology industries.
       (G) The best policy and practices at the Federal, State, 
     and regional levels regarding direct investment policy, with 
     specific reference to programs and policies that have the 
     greatest potential to increase direct investment in the 
     United States and enhance United States competitive advantage 
     relative to foreign countries. Particular emphasis should be 
     given to attracting direct investment in critical high-
     technology industries.
       (H) Policies, programs, and practices in foreign countries 
     designed to attract direct investment that are not in 
     compliance with the WTO Agreement and the agreements annexed 
     to that Agreement.
       (2) Certain factors taken into account in making 
     analysis.--In making any analysis under paragraph (1), the 
     Under Secretary shall take into account--
       (A) the relative impact of policies, programs, and 
     practices of foreign governments on United States commerce;
       (B) the availability of information to document the effect 
     of policies, programs, and practices;
       (C) the extent to which such act, policy, or practice is 
     subject to international agreements to which the United 
     States is a party; and
       (D) the impact trends in direct investment have had on--
       (i) the competitiveness of United States industries in the 
     international economy, with particular emphasis on critical 
     high-technology industries;
       (ii) the value of goods and services exported from and 
     imported to the United States;
       (iii) employment in the United States, in particular high-
     wage employment; and
       (iv) the provision of health care, pensions, and other 
     benefits provided by companies based in the United States.
       (c) Assistance of Other Agencies.--
       (1) Furnishing of information.--The head of each department 
     or agency of the executive branch of the Government, 
     including any independent agency, is authorized and directed 
     to furnish to the Under Secretary, upon request, such data, 
     reports, and other information as is necessary for the Under 
     Secretary to carry out the functions under this Act.
       (2) Restrictions on release or use of information.--Nothing 
     in this subsection shall authorize the release of information 
     to, or the use of information by, the Under Secretary in a 
     manner inconsistent with law or any procedure established 
     pursuant thereto.
       (3) Personnel and services.--The head of any department, 
     agency, or instrumentality of the United States may detail 
     such personnel and may furnish such services, with or without 
     reimbursement, as the Under Secretary may request to assist 
     in carrying out the functions of the Under Secretary.
       (d) Annual Revisions and Updates.--The Under Secretary 
     shall annually revise and update the Report described in 
     subsection (a).

     SEC. 6. ANNUAL DIRECT INVESTMENT AGENDA.

       (a) In General.--Not later than October 1, 2008, and 
     annually thereafter, the Under Secretary shall submit an 
     agenda based on the data and analysis described in section 5 
     for the preceding calendar year, to the President and the 
     appropriate congressional committees. The agenda shall be 
     known as the ``Annual Direct Investment Agenda'' and shall 
     include--
       (1) an evaluation of the research and development program 
     expenditures being made in the United States with particular 
     emphasis to critical high-technology industries considered 
     essential to United States economic security and necessary 
     for long-term United States economic competitiveness in world 
     markets; and
       (2) proposals that identify the policies, programs, and 
     practices in foreign countries and that the United States 
     should pursue that--
       (A) encourage direct investment in the United States that 
     will enhance the country's competitive advantage relative to 
     foreign countries, with particular emphasis on critical high-
     technology industries;
       (B) enhance the viability of the manufacturing sector in 
     the United States;
       (C) increase opportunities for high-wage jobs and promote 
     high levels of employment;
       (D) encourage economic growth; and
       (E) increase opportunities for the provision of health 
     care, pensions, and other benefits provided by companies 
     based in the United States.
       (b) Submission.--To the extent practical, the Under 
     Secretary shall submit the Annual Direct Investment Agenda 
     concurrently with the Annual Direct Investment Report.
       (c) Consultation With Congress on Annual Direct Investment 
     Agenda.--The Under Secretary shall keep the appropriate 
     congressional committees currently informed with respect to 
     the Annual Direct Investment Agenda and implementation of the 
     Agenda. After the submission of the Agenda, the Under 
     Secretary shall also consult periodically with, and take into 
     account the views of, the appropriate congressional 
     committees regarding implementation of the Agenda.

     SEC. 7. UNITED STATES DIRECT INVESTMENT PROMOTION COMMITTEE.

       (a) Establishment.--The President shall establish and the 
     Under Secretary shall assume lead responsibility for an 
     Interagency United States Direct Investment Promotion 
     Committee. The functions of the Committee shall be to--
       (1) coordinate all United States Government activities 
     related to the promotion of direct investment in the United 
     States;
       (2) advocate and implement strategic policies, programs, 
     and practices that will increase direct investment in the 
     United States;
       (3) train United States Government officials to pursue 
     strategic policies, programs, and practices that will 
     increase direct investment in the United States;
       (4) consult with business, labor, State, regional, and 
     local government officials on strategic policies, programs, 
     and practices that will increase direct investment in the 
     United States;
       (5) develop and publish materials that can be used by 
     Federal, State, regional, and local government officials to 
     increase direct investment in the United States;
       (6) create and maintain a database of direct investment 
     opportunities in the United States;
       (7) create and maintain an interactive website that can be 
     used to access direct investment opportunities in different 
     sectors and geographical areas of the United States, with 
     particular emphasis on critical high-technology industries;
       (8) coordinate direct investment marketing activities with 
     State Economic Development Agencies; and
       (9) host regular meetings and discussions with State, 
     regional, and local economic development officials to 
     consider best policy practices to increase direct investment 
     in the United States.
       (b) Members.--The Committee shall be composed of the 
     following:
       (1) The Secretary of Commerce.
       (2) The United States Trade Representative.
       (3) Members of the United States International Trade 
     Commission.
       (4) The Secretary of the Treasury.

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       (5) Members of the National Economic Council.
       (6) The Secretary of Agriculture.
       (7) Such other officials as the President determines to be 
     necessary.

     SEC. 8. DESIGNATION OF ADDITIONAL RENEWAL COMMUNITIES.

       Section 1400E of the Internal Revenue Code of 1986 
     (relating to designation of renewal communities) is amended 
     by adding at the end the following new subsection:
       ``(h) Additional Designations Permitted.--
       ``(1) In general.--In addition to the areas designated 
     under subsection (a), the Under Secretary of Commerce for 
     United States Direct Investment, after consultation with the 
     Secretary of the Treasury, may designate in the aggregate an 
     additional 10 nominated areas as renewal communities under 
     this section, subject to the availability of eligible 
     nominated areas.
       ``(2) Period designations may be made and take effect.--A 
     designation may be made under this subsection after the date 
     of the enactment of this subsection and before the date which 
     is 5 years after such date of enactment. Subject to 
     subparagraphs (B) and (C) of subsection (b)(1), a designation 
     made under this subsection shall remain in effect during the 
     period beginning with such designation and ending on the date 
     which is 8 years after such designation.
       ``(3) Application of rules.--Except as otherwise provided 
     in paragraph (1), the rules of this section shall apply to 
     designations under this subsection.''.
                                 ______