[Congressional Record (Bound Edition), Volume 153 (2007), Part 13]
[Senate]
[Pages 18060-18064]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2001. Mr. WEBB (for himself, Mr. Durbin, Mrs. McCaskill, Mr. 
Tester, Mr. Kennedy, and Mr. Byrd) submitted an amendment intended to 
be proposed by him to the bill H.R. 1585, to authorize appropriations 
for fiscal year 2008 for military activities of the Department of 
Defense, for military construction, and for defense activities of the 
Department of Energy, to prescribe military personnel strengths for 
such fiscal year, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the end of subtitle C of title X, add the following:

     SEC. 1031. MINIMUM PERIODS BETWEEN DEPLOYMENT FOR UNITS AND 
                   MEMBERS OF THE ARMED FORCES FOR OPERATION IRAQI 
                   FREEDOM AND OPERATION ENDURING FREEDOM.

       (a) Minimum Period for Units and Members of the Regular 
     Components.--
       (1) In general.--No unit or member of the Armed Forces 
     specified in paragraph (2) may be deployed for Operation 
     Iraqi Freedom or Operation Enduring Freedom unless the period 
     between the deployment of the unit or member is equal to or 
     longer than the period of such previous deployment.
       (2) Covered units and members.--The units and members of 
     the Armed Forces specified in this paragraph are as follows:
       (A) Units and members of the regular Army.
       (B) Units and members of the regular Marine Corps.
       (C) Units and members of the regular Navy.
       (D) Units and members of the regular Air Force.
       (E) Units and members of the regular Coast Guard.
       (b) Minimum Period for Units and Members of the Reserve 
     Components.--
       (1) In general.--No unit or member of the Armed Forces 
     specified in paragraph (2) may be deployed for Operation 
     Iraqi Freedom or Operation Enduring Freedom if the unit or 
     member has been deployed at any time within the three years 
     preceding the date of the deployment covered by this 
     subsection.
       (2) Covered units and members.--The units and members of 
     the Armed Forces specified in this paragraph are as follows:
       (A) Units and members of the Army Reserve.
       (B) Units and members of the Army National Guard.
       (C) Units and members of the Marine Corps Reserve.
       (D) Units and members of the Navy Reserve.
       (E) Units and members of the Air Force Reserve.
       (F) Units and members of the Air National Guard.
       (G) Units and members of the Coast Guard Reserve.
       (c) Waiver by the President.--The President may waive the 
     limitation in subsection (a) or (b) with respect to the 
     deployment of a unit or member of the Armed Forces specified 
     in such subsection if the President certifies to Congress 
     that the deployment of the unit or member is necessary to 
     meet an operational emergency posing a threat to vital 
     national security interests of the United States.
       (d) Waiver by the Military Chief of Staff.--The chief of 
     staff of the Armed Force concerned may waive the limitation 
     in subsection (a) or (b) with respect to the deployment of a 
     member of the Armed Forces specified the applicable 
     subparagraph under such subsection upon the voluntary request 
     of the member.
                                 ______
                                 
  SA 2002. Mr. REID (for Mr. Dodd (for himself and Mr. Shelby)) 
proposed an amendment to the bill S. 1610, to ensure national security 
while promoting foreign investment and the creation and maintenance of 
jobs, to reform the process by which such investments are examined for 
any effect they may have on national security, to establish the 
Committee on Foreign Investment in the United States, and for other 
purposed; as follows:


[[Page 18061]]

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.
Sec. 2. United States security improvement amendments; clarification of 
              review and investigation process.
Sec. 3. Statutory establishment of the Committee on Foreign Investment 
              in the United States.
Sec. 4. Additional factors for consideration.
Sec. 5. Mitigation, tracking, and postconsummation monitoring and 
              enforcement.
Sec. 6. Action by the President.
Sec. 7. Increased oversight by Congress.
Sec. 8. Certification of notices and assurances.
Sec. 9. Regulations.
Sec. 10. Effect on other law.
Sec. 11. Clerical amendments
Sec. 12. Effective date.

     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:
       ``(a) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Committee; chairperson.--The terms `Committee' and 
     `chairperson' mean the Committee on Foreign Investment in the 
     United States and the chairperson thereof, respectively.
       ``(2) Control.--The term `control' has the meaning given to 
     such term in regulations which the Committee shall prescribe.
       ``(3) Covered transaction.--The term `covered transaction' 
     means any merger, acquisition, or takeover that is proposed 
     or pending after August 23, 1988, by or with any foreign 
     person which could result in foreign control of any person 
     engaged in interstate commerce in the United States.
       ``(4) Foreign government-controlled transaction.--The term 
     `foreign government-controlled transaction' means any covered 
     transaction that could result in the control of any person 
     engaged in interstate commerce in the United States by a 
     foreign government or an entity controlled by or acting on 
     behalf of a foreign government.
       ``(5) Clarification.--The term `national security' shall be 
     construed so as to include those issues relating to `homeland 
     security', including its application to critical 
     infrastructure.
       ``(6) Critical infrastructure.--The term `critical 
     infrastructure' means, subject to rules issued under this 
     section, systems and assets, whether physical or virtual, so 
     vital to the United States that the incapacity or destruction 
     of such systems or assets would have a debilitating impact on 
     national security.
       ``(7) Critical technologies.--The term `critical 
     technologies' means critical technology, critical components, 
     or critical technology items essential to national defense, 
     identified pursuant to this section, subject to regulations 
     issued at the direction of the President, in accordance with 
     subsection (h).
       ``(8) Lead agency.--The term `lead agency' means the 
     agency, or agencies, designated as the lead agency or 
     agencies pursuant to subsection (k)(5) for the review of a 
     transaction.
       ``(b) National Security Reviews and Investigations.--
       ``(1) National security reviews.--
       ``(A) In general.--Upon receiving written notification 
     under subparagraph (C) of any covered transaction, or 
     pursuant to a unilateral notification initiated under 
     subparagraph (D) with respect to any covered transaction, the 
     President, acting through the Committee--
       ``(i) shall review the covered transaction to determine the 
     effects of the transaction on the national security of the 
     United States; and
       ``(ii) shall consider the factors specified in subsection 
     (f) for such purpose, as appropriate.
       ``(B) Control by foreign government.--If the Committee 
     determines that the covered transaction is a foreign 
     government-controlled transaction, the Committee shall 
     conduct an investigation of the transaction under paragraph 
     (2).
       ``(C) Written notice.--
       ``(i) In general.--Any party or parties to any covered 
     transaction may initiate a review of the transaction under 
     this paragraph by submitting a written notice of the 
     transaction to the Chairperson of the Committee.
       ``(ii) Withdrawal of notice.--No covered transaction for 
     which a notice was submitted under clause (i) may be 
     withdrawn from review, unless a written request for such 
     withdrawal is submitted to the Committee by any party to the 
     transaction and approved by the Committee.
       ``(iii) Continuing discussions.--A request for withdrawal 
     under clause (ii) shall not be construed to preclude any 
     party to the covered transaction from continuing informal 
     discussions with the Committee or any member thereof 
     regarding possible resubmission for review pursuant to this 
     paragraph.
       ``(D) Unilateral initiation of review.--Subject to 
     subparagraph (F), the President or the Committee may initiate 
     a review under subparagraph (A) of--
       ``(i) any covered transaction;
       ``(ii) any covered transaction that has previously been 
     reviewed or investigated under this section, if any party to 
     the transaction submitted false or misleading material 
     information to the Committee in connection with the review or 
     investigation or omitted material information, including 
     material documents, from information submitted to the 
     Committee; or
       ``(iii) any covered transaction that has previously been 
     reviewed or investigated under this section, if--

       ``(I) any party to the transaction or the entity resulting 
     from consummation of the transaction intentionally materially 
     breaches a mitigation agreement or condition described in 
     subsection (l)(1)(A);
       ``(II) such breach is certified to the Committee by the 
     lead department or agency monitoring and enforcing such 
     agreement or condition as an intentional material breach; and
       ``(III) the Committee determines that there are no other 
     remedies or enforcement tools available to address such 
     breach.

       ``(E) Timing.--Any review under this paragraph shall be 
     completed before the end of the 30-day period beginning on 
     the date of the acceptance of written notice under 
     subparagraph (C) by the chairperson, or beginning on the date 
     of the initiation of the review in accordance with 
     subparagraph (D), as applicable.
       ``(F) Limit on delegation of certain authority.--The 
     authority of the Committee to initiate a review under 
     subparagraph (D) may not be delegated to any person, other 
     than the Deputy Secretary or an appropriate Under Secretary 
     of the department or agency represented on the Committee.
       ``(2) National security investigations.--
       ``(A) In general.--In each case described in subparagraph 
     (B), the Committee shall immediately conduct an investigation 
     of the effects of a covered transaction on the national 
     security of the United States, and take any necessary actions 
     in connection with the transaction to protect the national 
     security of the United States.
       ``(B) Applicability.--Subparagraph (A) shall apply in each 
     case in which--
       ``(i) a review of a covered transaction under paragraph (1) 
     results in a determination that--

       ``(I) the transaction threatens to impair the national 
     security of the United States and that threat has not been 
     mitigated during or prior to the review of a covered 
     transaction under paragraph (1);
       ``(II) the transaction is a foreign government-controlled 
     transaction; or
       ``(III) the transaction would result in control of any 
     critical infrastructure of or within the United States by or 
     on behalf of any foreign person, if the Committee determines 
     that the transaction could impair national security, and that 
     such impairment to national security has not been mitigated 
     by assurances provided or renewed with the approval of the 
     Committee, as described in subsection (l), during the review 
     period under paragraph (1); or

       ``(ii) the lead agency recommends, and the Committee 
     concurs, that an investigation be undertaken.
       ``(C) Timing.--Any investigation under subparagraph (A) 
     shall be completed before the end of the 45-day period 
     beginning on the date on which the investigation commenced.
       ``(D) Exception.--
       ``(i) In general.--Notwithstanding subparagraph (B)(i), an 
     investigation of a foreign government-controlled transaction 
     described in subclause (II) of subparagraph (B)(i) or a 
     transaction involving critical infrastructure described in 
     subclause (III) of subparagraph (B)(i) shall not be required 
     under this paragraph, if the Secretary of the Treasury and 
     the head of the lead agency jointly determine, on the basis 
     of the review of the transaction under paragraph (1), that 
     the transaction will not impair the national security of the 
     United States.
       ``(ii) Nondelegation.--The authority of the Secretary or 
     the head of an agency referred to in clause (i) may not be 
     delegated to any person, other than the Deputy Secretary of 
     the Treasury or the deputy head (or the equivalent thereof) 
     of the lead agency, respectively.
       ``(E) Guidance on certain transactions with national 
     security implications.--The Chairperson shall, not later than 
     180 days after the effective date of the Foreign Investment 
     and National Security Act of 2007, publish in the Federal 
     Register guidance on the types of transactions that the 
     Committee has reviewed and that have presented national 
     security considerations, including transactions that may 
     constitute covered transactions that would result in control 
     of critical infrastructure relating to United States national 
     security by a foreign government or an entity controlled by 
     or acting on behalf of a foreign government.
       ``(3) Certifications to congress.--
       ``(A) Certified notice at completion of review.--Upon 
     completion of a review under subsection (b) that concludes 
     action under this section, the chairperson and the head of

[[Page 18062]]

     the lead agency shall transmit a certified notice to the 
     members of Congress specified in subparagraph (C)(iii).
       ``(B) Certified report at completion of investigation.--As 
     soon as is practicable after completion of an investigation 
     under subsection (b) that concludes action under this 
     section, the chairperson and the head of the lead agency 
     shall transmit to the members of Congress specified in 
     subparagraph (C)(iii) a certified written report (consistent 
     with the requirements of subsection (c)) on the results of 
     the investigation, unless the matter under investigation has 
     been sent to the President for decision.
       ``(C) Certification procedures.--
       ``(i) In general.--Each certified notice and report 
     required under subparagraphs (A) and (B), respectively, shall 
     be submitted to the members of Congress specified in clause 
     (iii), and shall include--

       ``(I) a description of the actions taken by the Committee 
     with respect to the transaction; and
       ``(II) identification of the determinative factors 
     considered under subsection (f).

       ``(ii) Content of certification.--Each certified notice and 
     report required under subparagraphs (A) and (B), 
     respectively, shall be signed by the chairperson and the head 
     of the lead agency, and shall state that, in the 
     determination of the Committee, there are no unresolved 
     national security concerns with the transaction that is the 
     subject of the notice or report.
       ``(iii) Members of congress.--Each certified notice and 
     report required under subparagraphs (A) and (B), 
     respectively, shall be transmitted--

       ``(I) to the Majority Leader and the Minority Leader of the 
     Senate;
       ``(II) to the chair and ranking member of the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and of any 
     committee of the Senate having oversight over the lead 
     agency;
       ``(III) to the Speaker and the Minority Leader of the House 
     of Representatives;
       ``(IV) to the chair and ranking member of the Committee on 
     Financial Services of the House of Representatives and of any 
     committee of the House of Representatives having oversight 
     over the lead agency; and
       ``(V) with respect to covered transactions involving 
     critical infrastructure, to the members of the Senate from 
     the State in which the principal place of business of the 
     acquired United States person is located, and the member from 
     the Congressional District in which such principal place of 
     business is located.

       ``(iv) Signatures; limit on delegation.--

       ``(I) In general.--Each certified notice and report 
     required under subparagraphs (A) and (B), respectively, shall 
     be signed by the chairperson and the head of the lead agency, 
     which signature requirement may only be delegated in 
     accordance with subclause (II).
       ``(II) Limitation on delegation of certifications.--The 
     chairperson and the head of the lead agency may delegate the 
     signature requirement under subclause (I)--

       ``(aa) only to an appropriate employee of the Department of 
     the Treasury (in the case of the Secretary of the Treasury) 
     or to an appropriate employee of the lead agency (in the case 
     of the lead agency) who was appointed by the President, by 
     and with the advice and consent of the Senate, with respect 
     to any notice provided under paragraph (1) following the 
     completion of a review under this section; or
       ``(bb) only to a Deputy Secretary of the Treasury (in the 
     case of the Secretary of the Treasury) or a person serving in 
     the Deputy position or the equivalent thereof at the lead 
     agency (in the case of the lead agency), with respect to any 
     report provided under subparagraph (B) following an 
     investigation under this section.
       ``(4) Analysis by director of national intelligence.--
       ``(A) In general.--The Director of National Intelligence 
     shall expeditiously carry out a thorough analysis of any 
     threat to the national security of the United States posed by 
     any covered transaction. The Director of National 
     Intelligence shall also seek and incorporate the views of all 
     affected or appropriate intelligence agencies with respect to 
     the transaction.
       ``(B) Timing.--The analysis required under subparagraph (A) 
     shall be provided by the Director of National Intelligence to 
     the Committee not later than 20 days after the date on which 
     notice of the transaction is accepted by the Committee under 
     paragraph (1)(C), but such analysis may be supplemented or 
     amended, as the Director considers necessary or appropriate, 
     or upon a request for additional information by the 
     Committee. The Director may begin the analysis at any time 
     prior to acceptance of the notice, in accordance with 
     otherwise applicable law.
       ``(C) Interaction with intelligence community.--The 
     Director of National Intelligence shall ensure that the 
     intelligence community remains engaged in the collection, 
     analysis, and dissemination to the Committee of any 
     additional relevant information that may become available 
     during the course of any investigation conducted under 
     subsection (b) with respect to a transaction.
       ``(D) Independent role of director.--The Director of 
     National Intelligence shall be a nonvoting, ex officio member 
     of the Committee, and shall be provided with all notices 
     received by the Committee under paragraph (1)(C) regarding 
     covered transactions, but shall serve no policy role on the 
     Committee, other than to provide analysis under subparagraphs 
     (A) and (C) in connection with a covered transaction.
       ``(5) Submission of additional information.--No provision 
     of this subsection shall be construed as prohibiting any 
     party to a covered transaction from submitting additional 
     information concerning the transaction, including any 
     proposed restructuring of the transaction or any 
     modifications to any agreements in connection with the 
     transaction, while any review or investigation of the 
     transaction is ongoing.
       ``(6) Notice of results to parties.--The Committee shall 
     notify the parties to a covered transaction of the results of 
     a review or investigation under this section, promptly upon 
     completion of all action under this section.
       ``(7) Regulations.--Regulations prescribed under this 
     section shall include standard procedures for--
       ``(A) submitting any notice of a covered transaction to the 
     Committee;
       ``(B) submitting a request to withdraw a covered 
     transaction from review;
       ``(C) resubmitting a notice of a covered transaction that 
     was previously withdrawn from review; and
       ``(D) providing notice of the results of a review or 
     investigation to the parties to the covered transaction, upon 
     completion of all action under this section.''.

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

     SEC. 4. ADDITIONAL FACTORS FOR CONSIDERATION.

       Section 721(f) of the Defense Production Act of 1950 (50 
     U.S.C. App. 2170(f)) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``among other factors'';
       (2) in paragraph (4)--
       (A) in subparagraph (A) by striking ``or'' at the end;

[[Page 18063]]

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

     SEC. 5. MITIGATION, TRACKING, AND POSTCONSUMMATION MONITORING 
                   AND ENFORCEMENT.

       Section 721 of the Defense Production Act of 1950 (50 
     U.S.C. App. 2170) is amended by adding at the end the 
     following:
       ``(l) Mitigation, Tracking, and Postconsummation Monitoring 
     and Enforcement.--
       ``(1) Mitigation.--
       ``(A) In general.--The Committee or a lead agency may, on 
     behalf of the Committee, negotiate, enter into or impose, and 
     enforce any agreement or condition with any party to the 
     covered transaction in order to mitigate any threat to the 
     national security of the United States that arises as a 
     result of the covered transaction.
       ``(B) Risk-based analysis required.--Any agreement entered 
     into or condition imposed under subparagraph (A) shall be 
     based on a risk-based analysis, conducted by the Committee, 
     of the threat to national security of the covered 
     transaction.
       ``(2) Tracking authority for withdrawn notices.--
       ``(A) In general.--If any written notice of a covered 
     transaction that was submitted to the Committee under this 
     section is withdrawn before any review or investigation by 
     the Committee under subsection (b) is completed, the 
     Committee shall establish, as appropriate--
       ``(i) interim protections to address specific concerns with 
     such transaction that have been raised in connection with any 
     such review or investigation pending any resubmission of any 
     written notice under this section with respect to such 
     transaction and further action by the President under this 
     section;
       ``(ii) specific time frames for resubmitting any such 
     written notice; and
       ``(iii) a process for tracking any actions that may be 
     taken by any party to the transaction, in connection with the 
     transaction, before the notice referred to in clause (ii) is 
     resubmitted.
       ``(B) Designation of agency.--The lead agency, other than 
     any entity of the intelligence community (as defined in the 
     National Security Act of 1947), shall, on behalf of the 
     Committee, ensure that the requirements of subparagraph (A) 
     with respect to any covered transaction that is subject to 
     such subparagraph are met.
       ``(3) Negotiation, modification, monitoring, and 
     enforcement.--
       ``(A) Designation of lead agency.--The lead agency shall 
     negotiate, modify, monitor, and enforce, on behalf of the 
     Committee, any agreement entered into or condition imposed 
     under paragraph (1) with respect to a covered transaction, 
     based on the expertise with and knowledge of the issues 
     related to such transaction on the part of the designated 
     department or agency. Nothing in this paragraph shall 
     prohibit other departments or agencies in assisting the lead 
     agency in carrying out the purposes of this paragraph.
       ``(B) Reporting by designated agency.--
       ``(i) Modification reports.--The lead agency in connection 
     with any agreement entered into or condition imposed with 
     respect to a covered transaction shall--

       ``(I) provide periodic reports to the Committee on any 
     material modification to any such agreement or condition 
     imposed with respect to the transaction; and
       ``(II) ensure that any material modification to any such 
     agreement or condition is reported to the Director of 
     National Intelligence, the Attorney General of the United 
     States, and any other Federal department or agency that may 
     have a material interest in such modification.

       ``(ii) Compliance.--The Committee shall develop and agree 
     upon methods for evaluating compliance with any agreement 
     entered into or condition imposed with respect to a covered 
     transaction that will allow the Committee to adequately 
     assure compliance, without--

       ``(I) unnecessarily diverting Committee resources from 
     assessing any new covered transaction for which a written 
     notice has been filed pursuant to subsection (b)(1)(C), and 
     if necessary, reaching a mitigation agreement with or 
     imposing a condition on a party to such covered transaction 
     or any covered transaction for which a review has been 
     reopened for any reason; or
       ``(II) placing unnecessary burdens on a party to a covered 
     transaction.''.

     SEC. 6. ACTION BY THE PRESIDENT.

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

     SEC. 7. INCREASED OVERSIGHT BY CONGRESS.

       (a) Report on Actions.--Section 721(g) of the Defense 
     Production Act of 1950 (50 U.S.C. App. 2170(g)) is amended to 
     read as follows:
       ``(g) Additional Information to Congress; 
     Confidentiality.--
       ``(1) Briefing requirement on request.--The Committee 
     shall, upon request from any Member of Congress specified in 
     subsection (b)(3)(C)(iii), promptly provide briefings on a 
     covered transaction for which all action has concluded under 
     this section, or on compliance with a mitigation agreement or 
     condition imposed with respect to such transaction, on a 
     classified basis, if deemed necessary by the sensitivity of 
     the information. Briefings under this paragraph may be 
     provided to the congressional staff of such a Member of 
     Congress having appropriate security clearance.
       ``(2) Application of confidentiality provisions.--
       ``(A) In general.--The disclosure of information under this 
     subsection shall be consistent with the requirements of 
     subsection (c). Members of Congress and staff of either House 
     of Congress or any committee of Congress, shall be subject to 
     the same limitations on disclosure of information as are 
     applicable under subsection (c).
       ``(B) Proprietary information.--Proprietary information 
     which can be associated with a particular party to a covered 
     transaction shall be furnished in accordance with 
     subparagraph (A) only to a committee of Congress, and only 
     when the committee provides assurances of confidentiality, 
     unless such party otherwise consents in writing to such 
     disclosure.''.
       (b) Annual Report.--Section 721 of the Defense Production 
     Act of 1950 (50 U.S.C. App. 2170) is amended by adding at the 
     end the following:
       ``(m) Annual Report to Congress.--

[[Page 18064]]

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

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

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

     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. CLERICAL AMENDMENTS.

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

     SEC. 12. EFFECTIVE DATE.

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

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