[Federal Register Volume 84, Number 185 (Tuesday, September 24, 2019)]
[Proposed Rules]
[Pages 50214-50242]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-20100]



[[Page 50213]]

Vol. 84

Tuesday,

No. 185

September 24, 2019

Part V





 Department of the Treasury





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Office of Investment Security





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31 CFR Part 802





 Provisions Pertaining to Certain Transactions by Foreign Persons 
Involving Real Estate in the United States; Proposed Rule

  Federal Register / Vol. 84 , No. 185 / Tuesday, September 24, 2019 / 
Proposed Rules  

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DEPARTMENT OF THE TREASURY

Office of Investment Security

31 CFR Part 802

RIN 1505-AC63


Provisions Pertaining to Certain Transactions by Foreign Persons 
Involving Real Estate in the United States

AGENCY: Office of Investment Security, Department of the Treasury.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would establish new regulations to 
implement the provisions relating to real estate transactions in 
section 721 of the Defense Production Act of 1950, as amended by the 
Foreign Investment Risk Review Modernization Act of 2018. This proposed 
rule sets forth the scope of, and certain processes and procedures 
relating to, the national security review by the Committee on Foreign 
Investment in the United States of certain transactions involving the 
purchase or lease by, or concession to, a foreign person of certain 
real estate in the United States.

DATES: Written comments must be received by October 17, 2019.
    The Department of the Treasury is considering holding during the 
comment period a teleconference regarding the proposed rule for members 
of the public. Information about any public teleconference, including 
the date, time, and how to attend, will be published on the Department 
of the Treasury website at https://home.treasury.gov/policy-issues/international/the-committee-on-foreign-investment-in-the-united-states-cfius.

ADDRESSES: Written comments on this proposed rule may be submitted 
through one of two methods:
     Electronic Submission: Comments may be submitted 
electronically through the Federal government eRulemaking portal at 
https://www.regulations.gov. Electronic submission of comments allows 
the commenter maximum time to prepare and submit a comment, ensures 
timely receipt, and enables the Department of the Treasury to make the 
comments available to the public. Please note that comments submitted 
through https://www.regulations.gov will be public, and can be viewed 
by members of the public.
     Mail: Send to U.S. Department of the Treasury, Attention: 
Thomas Feddo, Deputy Assistant Secretary for Investment Security, 1500 
Pennsylvania Avenue NW, Washington, DC 20220.
    In general, the Department of the Treasury will post all comments 
to https://www.regulations.gov without change, including any business 
or personal information provided, such as names, addresses, email 
addresses, or telephone numbers. All comments received, including 
attachments and other supporting material, will be part of the public 
record and subject to public disclosure. You should only submit 
information that you wish to make publicly available.

FOR FURTHER INFORMATION CONTACT: For questions about this proposed 
rule, contact: Laura Black, Director of Investment Security Policy and 
International Relations; Meena R. Sharma, Deputy Director of Investment 
Security Policy and International Relations; or James Harris, Senior 
Policy Advisor, at U.S. Department of the Treasury, 1500 Pennsylvania 
Avenue NW, Washington, DC 20220; telephone: (202) 622-3425; email: 
[email protected].

SUPPLEMENTARY INFORMATION: 

I. Background

A. The Statute

    The Foreign Investment Risk Review Modernization Act of 2018 
(FIRRMA), Subtitle A of Title XVII of Public Law 115-232, 132 Stat. 
2173, which amends section 721 (section 721) of the Defense Production 
Act of 1950, as amended (DPA), requires the issuance of regulations 
implementing its provisions. In Executive Order 13456, 73 FR 4677 (Jan. 
23, 2008), the President directs the Secretary of the Treasury to issue 
regulations implementing section 721. This proposed rule is being 
issued pursuant to that authority.
    FIRRMA was passed by Congress as H.R. 5515 and was enacted on 
August 13, 2018. Prior to the enactment of FIRRMA, section 721 
authorized the President, acting through the Committee on Foreign 
Investment in the United States (CFIUS or the Committee), to review 
mergers, acquisitions, and takeovers by or with any foreign person 
which could result in foreign control of any person engaged in 
interstate commerce in the United States, to determine the effects of 
such transactions on the national security of the United States. The 
existing regulations that implement CFIUS's authority with respect to 
such transactions are found at part 800 of title 31 of the Code of 
Federal Regulations (part 800).
    FIRRMA maintains the Committee's jurisdiction over any transaction 
which could result in foreign control of any U.S. business, and 
broadens the authorities of the President and CFIUS under section 721 
to address national security concerns arising from certain investments 
and real estate transactions. Additionally, FIRRMA modernizes CFIUS's 
processes to better enable timely and effective reviews of transactions 
falling under its jurisdiction (which FIRRMA describes as ``covered 
transactions''). In enacting FIRRMA, Congress acknowledged the 
important role of foreign investment in the U.S. economy and reiterated 
its support of the United States' open investment policy, consistent 
with the protection of national security. A brief summary of key 
provisions of FIRRMA, as relevant for this rulemaking, follows.
    FIRRMA expands and clarifies the jurisdiction of the Committee by 
explicitly adding four types of transactions as covered transactions in 
the DPA: (1) The purchase or lease by, or concession to, a foreign 
person of certain real estate in the United States; (2) non-controlling 
``other investments'' that afford a foreign person an equity interest 
in and specified access to information in the possession of, rights in, 
or involvement in the decisionmaking of certain U.S. businesses 
involved in certain critical technologies, critical infrastructure, or 
sensitive personal data (which a separate and concurrent rulemaking on 
part 800 describes as ``covered investments''); (3) any change in a 
foreign person's rights if such change could result in foreign control 
of a U.S. business or a covered investment in certain U.S. businesses; 
and (4) any other transaction, transfer, agreement, or arrangement, the 
structure of which is designed or intended to evade or circumvent the 
application of section 721. With respect to the Committee's expanded 
jurisdiction over certain real estate transactions and covered 
investments, FIRRMA instructs the Committee to specify criteria to 
limit the application of that expansion of jurisdiction to certain 
categories of foreign persons. The proposed rule addresses only the 
provisions that are relevant for real estate transactions. Other 
provisions in FIRRMA requiring implementing regulations are the subject 
of a separate and concurrent rulemaking.
    Prior to FIRRMA, CFIUS could only review an acquisition of real 
estate if it was part of a transaction which could result in control by 
a foreign person of an entity engaged in interstate commerce in the 
United States. FIRRMA expands CFIUS's jurisdiction to include certain 
types of real estate transactions involving the purchase or lease by, 
or a concession to, a foreign person of

[[Page 50215]]

certain private or public real estate located in the United States. 
FIRRMA focuses on two general categories of real estate and provides 
certain exceptions. The first category of real estate is described by 
its relation to airports and maritime ports. The second category of 
real estate is described by its relation to U.S. military installations 
and other facilities or properties of the U.S. Government that are 
sensitive for national security reasons. Importantly, FIRRMA authorizes 
the Committee to prescribe in regulations other criteria to define the 
types of real estate transactions under its jurisdiction, so long as 
those criteria do not expand the categories of real estate beyond those 
described in FIRRMA.
    In addition to expanding the Committee's jurisdiction, FIRRMA 
prescribes certain processes that are applicable to real estate 
transactions under its jurisdiction (described as ``covered real estate 
transactions'' in the proposed rule). FIRRMA allows parties to submit 
an abbreviated filing for any covered real estate transaction through a 
declaration, as an alternative to CFIUS's traditional voluntary notice, 
both of which are discussed below. Declarations will allow parties to 
submit basic information regarding a transaction in an abbreviated form 
that should generally not exceed five pages in length. FIRRMA also sets 
forth an abbreviated timeframe for the Committee to respond to 
submitted declarations.
    Although FIRRMA introduces a mandatory declaration requirement in 
certain circumstances, the statute does not subject real estate 
transactions to the mandatory declaration requirement. This means that 
parties to a covered real estate transaction may decide whether to 
voluntarily file a notice or submit a declaration to CFIUS. FIRRMA also 
codifies certain processes related to the Committee's authority to 
identify non-notified and non-declared transactions.
    FIRRMA permits a party to a transaction to stipulate that a 
transaction is a covered transaction. A party can make a stipulation in 
either a notice or a declaration. If a party makes a stipulation in a 
notice, CFIUS must provide comments on or accept the notice no later 
than 10 business days after the date of the filing.
    Additionally, FIRRMA establishes a 45-day review period for 
transactions filed as notices. In the case of any follow-on 
investigation, which can last up to 45 additional days, FIRRMA allows 
the Secretary of the Treasury to grant one 15-day extension in 
``extraordinary circumstances.'' FIRRMA establishes a 30-day review 
period for transactions submitted as declarations. The notice and 
declarations processes are discussed in further detail below.
    Finally, FIRRMA authorizes the Committee to assess and collect fees 
with respect to covered transactions for which a written notice is 
filed, and the Committee is considering how to implement this 
authority. The proposed rule does not address filing fees. The 
Department of the Treasury will publish a separate proposed rule 
regarding fees at a later date.

B. Structure of FIRRMA Rulemaking and This Proposed Rule

    Consistent with CFIUS processes generally, the proposed rule 
reflects extensive consultation with CFIUS member agencies, as well as 
other relevant agencies. The proposed rule implements the Committee's 
authority in a new part 802 of title 31 of the Code of Federal 
Regulations. The Department of the Treasury determined that the 
technical and procedural aspects of CFIUS's review of transactions 
involving real estate are sufficiently distinct from those related to 
control transactions and covered investments to warrant separate 
rulemaking. Nevertheless, the proposed rule incorporates certain basic 
features and relevant provisions from part 800, which should be 
familiar to parties that have filed with CFIUS in the past.
    The Department of the Treasury recognizes that FIRRMA's expansion 
of the Committee's jurisdiction over certain real estate transactions 
may impact parties who have not traditionally had reason to file with 
CFIUS. The proposed rule seeks to provide clarity to the business and 
investment communities with respect to the types of real estate 
transactions that are covered by the new authority under FIRRMA. The 
Department of the Treasury is considering whether it can make available 
other tools to help the public understand the scope and, in particular, 
the geographic coverage of the Committee's jurisdiction over certain 
real estate transactions by the time the final rule becomes effective. 
The new real estate jurisdiction, as implemented in this proposed rule, 
is generally structured around specific sites--certain airports, 
maritime ports, military installations, and other facilities or 
properties of the U.S. Government--and specific areas in or around 
those sites. Given the level of specificity provided in certain 
provisions of the proposed rule and the evolving national security 
landscape, the Department of the Treasury anticipates that it will 
periodically review, and as necessary, make changes to the regulations, 
consistent with applicable law.
    As noted above, the proposed rule focuses on the Committee's 
expanded jurisdiction over certain real estate transactions. As such, 
the proposed rule would implement one part of the overall scope of 
CFIUS's jurisdiction. There are additional provisions in FIRRMA that 
are the subject of a separate and concurrent rulemaking on part 800. 
Parties should be aware that certain transactions involving real estate 
could potentially be covered transactions under part 800; for example, 
transactions involving certain long-term leases and certain collections 
of assets. A transaction that could result in control of a U.S. 
business by a foreign person remains subject to the regulations under 
part 800 (subject to the concurrent rulemaking), and is not a covered 
real estate transaction under this proposed rule. Additionally, CFIUS's 
new authority over covered investments in certain U.S. businesses, as 
provided by FIRRMA, is also outside the scope of this proposed rule 
(and subject to the concurrent rulemaking). In order to comprehensively 
understand the transactions that could fall within the scope of this 
proposed rule, in contrast to the transactions that could fall within 
the scope of part 800, the public is encouraged to be aware of the 
separate and concurrent rulemaking on part 800.
    Finally, although FIRRMA introduces the term ``close proximity'' in 
the context of real estate transactions, CFIUS has and will continue to 
retain the authority to assess, and if necessary, take action with 
respect to any covered transaction under part 800 that gives rise to 
national security concerns on the basis of proximity to sensitive 
government sites and activities. The Committee's authority under part 
800 is not limited in any way by the proposed rule for part 802.

II. Discussion of Proposed Rule

    The proposed rule is structured similarly to the regulations at 
part 800. Parties familiar with the part 800 regulations should find 
that this proposed rule takes a similar approach in terms of defining 
key terms, describing transactions that are covered and not covered 
under the rule, listing the information requirements for a filing to be 
complete, and setting forth the Committee's procedures, among other 
things. While there are differences between the proposed rule and the 
existing part 800 regulations, as well as the separate and concurrent 
proposed rule replacing part 800, the scope and

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overall approach taken by the Committee to evaluating, concluding 
action on, or taking action on a transaction is consistent with part 
800 and section 721.
    The Committee welcomes public comment on the proposed rule, 
including with respect to the technical details, practical impact, and 
other costs or considerations.

A. Subpart A--General Provisions

    Section 802.101--Scope. Subpart A to the proposed rule begins by 
setting forth the scope of the Committee's authority and standards for 
exercising that authority pursuant to section 721. This is consistent 
with the existing regulations at part 800 and the concurrent rulemaking 
for that part.
    Section 802.102--Risk-based analysis. FIRRMA requires that any 
determination of the Committee to suspend a covered transaction, to 
refer a covered transaction to the President, or to negotiate, enter 
into or impose, or enforce any agreement or condition with respect to a 
covered transaction, be based on a risk-based analysis, conducted by 
the Committee, of the effects on the national security of the United 
States of the covered transaction, which must include an assessment of 
the threat, vulnerabilities, and consequences to national security 
related to the transaction. The proposed rule includes definitions of 
the terms ``threat,'' ``vulnerabilities,'' and ``consequences to 
national security'' used in risk-based analyses undertaken by the 
Committee.
    Section 802.103--Effect on other law. The proposed rule makes clear 
that it does not alter or affect any other federal law or any other 
authority of the President or the Congress under the Constitution.
    Section 802.104--Applicability rule. This section sets forth the 
applicability of the proposed rule based on the effective date, which 
is defined in Sec.  802.213. This section also clarifies that the rule 
would not apply to transactions that have been completed or where the 
material terms of the transaction have been agreed by binding written 
agreement or other binding document prior to the effective date.

B. Subpart B--Definitions

    Subpart B sets forth the defined terms for part 802. More than half 
of the defined terms in the proposed rule are incorporated from the 
existing regulations at part 800 or the concurrent rulemaking for that 
part, with conforming changes to apply in the context of real estate 
transactions. The remainder of the terms are new in part 802.
    As an initial matter, the proposed rule uses the term ``covered 
real estate transaction'' at Sec.  802.212 to describe the types of 
real estate transactions that are subject to CFIUS's jurisdiction. This 
definition implements the authority provided under FIRRMA to prescribe 
additional criteria to define the real estate transactions under 
CFIUS's jurisdiction. In particular, this definition combines important 
elements of the proposed rule including the three transaction types 
specified in FIRRMA (``purchase,'' ``lease,'' and ``concession'') 
through which a ``foreign person'' is afforded certain ``property 
rights'' with respect to ``covered real estate.'' These and several 
other key definitions are discussed below.
    Section 802.201--Airport. The proposed rule defines ``airport'' to 
capture a subset of airports in the United States, specifically the 
major passenger and cargo airports in the United States based on 
volume, as well as ``joint use airports'' where both military and 
civilian aircraft make shared use of the military airfield. The Federal 
Aviation Administration publishes information on the specific airports 
falling within the categories listed in this definition.
    Section 802.204--Close proximity. The proposed rule defines ``close 
proximity'' based on the requirements in FIRRMA. It is defined as a 
specific distance (one mile) from the relevant military installation or 
other facility or property of the U.S. Government that is sensitive for 
reasons relating to national security. Close proximity is the defined 
area measured outward from the boundary of the relevant installation or 
other facility or property. The close proximity definition applies with 
respect to most of the military installations described in the proposed 
rule and in particular, those identified in the list at part 1 and part 
2 of appendix A.
    Section 802.206--Completion date. The proposed rule includes a 
definition for the term ``completion date,'' which is the earliest date 
on which the purchase, lease, or concession is made legally effective, 
or a change in rights that could result in a covered real estate 
transaction occurs.
    Section 802.207--Concession. The proposed rule provides a 
definition of ``concession,'' which is one of the three transaction 
types specified in FIRRMA. The definition is limited to an arrangement 
whereby a U.S. public entity grants a right to use real estate for the 
purpose of developing or operating infrastructure for an airport or 
maritime port. The Department of the Treasury is considering, and in 
particular welcomes comment on, whether other types of concessions 
should be included, such as those relating to certain energy generation 
and oil and gas activities.
    Section 802.209--Control. The proposed rule sets forth the 
definition of control consistent with part 800 and the concurrent 
rulemaking on that part. This term is included in part 802 for the 
purpose of defining a ``foreign person'' in connection with determining 
whether a transaction is a covered real estate transaction.
    Section 802.211--Covered real estate. The definition of ``covered 
real estate'' identifies the types of real estate that may result in a 
covered real estate transaction. The definition ties specific sites 
with the relevant geographic coverage in and around those sites. To 
assist the public in identifying the specific sites that meet the 
definition of ``military installation,'' the proposed rule provides the 
names and locations of the military installations in appendix A. While 
the structure of the proposed rule provides for coverage around other 
facilities or properties of the U.S. Government that are sensitive for 
national security reasons, no such facilities or properties are 
identified at this time in appendix A to the proposed rule. The 
Department of the Treasury is considering whether to move this appendix 
to its website.
    Section 802.211(a)-- This section implements the provision in 
FIRRMA's discussion of real estate transactions that is focused on real 
estate transactions relating to airports and maritime ports. This 
section incorporates language from FIRRMA capturing real estate that is 
an airport or maritime port, real estate that is within an airport or 
maritime port, and real estate that will function as part of an airport 
or maritime port.
    Section 802.211(b)(1) through (b)(4)-- These sections implement the 
provisions of FIRRMA regarding real estate associated with a military 
installation or another facility or property of the U.S. Government 
that is sensitive for reasons related to national security. Section 
802.211(b)(1) focuses on real estate that is in close proximity (one 
mile) of such a U.S. Government site. Section 802.211(b)(2) focuses on 
real estate that is between one and 100 miles from the relevant U.S. 
Government site, which is defined as the ``extended range'' in Sec.  
802.218. Section 802.211(b)(3) focuses on real estate that is within 
certain listed counties identified in appendix A in connection with the 
relevant military installations. Finally, Sec.  802.211(b)(4)

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focuses on off-shore ranges and includes within CFIUS jurisdiction 
those portions of the off-shore ranges that are within 12 nautical 
miles seaward of the coastline of the United States.
    As noted above, the Department of the Treasury is considering 
whether it can make available by the time the final rule becomes 
effective other tools to assist the public in determining the 
geographical locations that are covered in the rule, and in particular, 
this definition. The Department of the Treasury is seeking comments, in 
particular, on the approach taken in this definition.
    Section 802.212--Covered real estate transaction. As discussed 
above, the definition of ``covered real estate transaction'' is central 
to the proposed rule and is constructed using other defined terms. In 
particular, it incorporates the relevant types of transactions--
purchases, leases, and concessions--and requires that the foreign 
person be afforded at least three ``property rights'' (defined in Sec.  
802.233) in covered real estate through the relevant transaction. This 
definition includes, per FIRRMA, transactions that are designed or 
intended to evade or circumvent CFIUS jurisdiction. This definition 
also includes a change in rights that a foreign person has with respect 
to covered real estate and carves out ``excepted real estate 
transactions'' (defined in Sec.  802.217) from CFIUS's purview under 
part 802.
    Section 802.217--Excepted real estate transaction. The proposed 
rule defines exceptions to the general coverage described above, some 
of which are mandated by FIRRMA. The proposed definition of ``excepted 
real estate transaction'' enumerates specific types of transactions 
that are not covered real estate transactions, as well as examples. The 
proposed rule defines certain key terms to clarify the exceptions. In 
particular, the definitions of ``excepted real estate investor,'' 
``housing unit,'' ``urbanized area,'' and ``urban cluster'' (Sec.  
802.216, Sec.  802.224, Sec.  802.239, and Sec.  802.238, respectively) 
are relevant for purposes of the exceptions. These terms are further 
discussed below in Section II.C.
    Section 802.218--Extended range. FIRRMA authorizes the Committee to 
review real estate transactions beyond those in ``close proximity'' to 
particular U.S. Government sites, including those that could reasonably 
provide a foreign person the ability to collect intelligence or could 
otherwise expose national security activities to the risk of foreign 
surveillance. This term applies to a defined subset of the military 
installations that also are subject to the close proximity one-mile 
range (as listed in part 2 of appendix A). The proposed rule defines 
the extended range as the area that extends 99 miles outward from the 
outer boundary of close proximity. Where any portion of the ``extended 
range'' falls offshore, the rule proposes that it will only be 
considered as within the ``extended range'' for up to 12 nautical miles 
from the coastline.
    Section 802.222--Foreign person. The proposed rule defines 
``foreign person'' consistent with part 800. This definition includes 
any entity over which control is exercised or exercisable by a foreign 
national, foreign government, or foreign entity. A subset of foreign 
persons (defined as ``excepted real estate investors'' in Sec.  
802.216) will be excepted from CFIUS's jurisdiction over covered real 
estate transactions, as further discussed below. The proposed rule 
includes a series of examples under this definition.
    Section 802.226--Lease. The proposed rule defines ``lease'' 
consistent with common usage of the term. Under the proposed rule, 
CFIUS will consider leases in terms of their substance rather than 
form, including within the Committee's jurisdiction what is typically 
thought of as a lease, but not transactions that, in substance, are 
merely licenses, permits, or other non-possessory interests. This term 
includes a sublease.
    Section 802.227--Maritime port. The proposed rule defines 
``maritime port'' to capture a subset of maritime ports in the United 
States. The definition covers the top 25 tonnage, container, and dry 
bulk ports as well as strategic seaports. The Department of 
Transportation publishes information on the specific ports falling 
within the categories listed in this definition.
    Section 802.228--Military installation. The proposed rule 
identifies a subset of military installations around which certain real 
estate transactions are covered. The specific military installations 
are listed in appendix A by name and location, and the categories under 
which they fit are described in the proposed rule at Sec.  802.228. As 
noted above, the Department of the Treasury is considering whether to 
move appendix A to its website.
    Section 802.233--Property right. The proposed rule includes as an 
element of a covered real estate transaction that certain ``property 
rights'' be afforded to the foreign person through the purchase, lease, 
or concession of covered real estate. The proposed definition of 
property right includes fundamental rights with respect to real 
property: The right to physically access, exclude, improve or develop, 
and attach structures or objects. In order to constitute a covered real 
estate transaction, a foreign person must be afforded at least three of 
these property rights. The Department of the Treasury is seeking 
comments, in particular, on the impact of this approach.
    Section 802.234--Purchase. The proposed rule defines ``purchase'' 
as the conveyance of an ownership interest in exchange for 
consideration. Consideration can take different forms, as the example 
illustrates.
    Section 802.235--Real estate. The proposed rule defines ``real 
estate'' to include land and any structure attached to land. The 
definition clarifies that the term land is not merely limited to the 
surface area, but also includes subsurface and submerged land.
    Section 802.242--U.S. public entity. The proposed rule defines 
``U.S. public entity'' inclusive of the U.S. Government, a subnational 
government of the United States, and any other body exercising 
governmental functions for the United States, including airport and 
maritime port authorities. Because FIRRMA expressly applies to private 
and public real estate, the definition is used in the proposed rule 
where a public entity is the counterparty in a transaction involving 
covered real estate and has relevance in terms of the notification 
procedures, as discussed below.

C. Excepted Real Estate Transactions

1. Section 802.217(a)--Country Specification for Real Estate 
Transactions
    FIRRMA requires CFIUS to specify criteria to limit the application 
of FIRRMA's expanded jurisdiction over covered real estate transactions 
to certain categories of foreign persons. The proposed rule addresses 
FIRRMA's requirement through three defined terms, ``excepted real 
estate investor,'' ``excepted real estate foreign state,'' and 
``minimum excepted ownership,'' which operate together to exclude from 
CFIUS's jurisdiction covered real estate transactions by certain 
foreign persons who meet certain criteria establishing sufficiently 
close ties to certain foreign states. Sections 802.216, 802.215, and 
802.229 define excepted real estate investor, excepted real estate 
foreign state, and minimum excepted ownership, respectively. The 
definition of excepted real estate transaction at Sec.  802.217(a) 
carves out from coverage under the proposed rule a purchase or lease 
by, or concession to, an excepted real estate investor of covered real 
estate, or a change in rights of an

[[Page 50218]]

excepted real estate investor with respect to covered real estate.
    Section 802.216--Excepted real estate investor. The proposed rule 
sets forth a narrow definition of excepted real estate investor in the 
interest of protecting national security, in light of increasingly 
complex ownership structures, and to prevent foreign persons from 
circumventing CFIUS's jurisdiction. Thus, the criteria specified in 
Sec.  802.216 require that a foreign person have a substantial 
connection (e.g., nationality of ultimate beneficial owners and place 
of incorporation) to one or more particular foreign states in order to 
be deemed an excepted real estate investor. Note that foreign persons 
who have violated, or whose parents or subsidiaries have violated, 
certain U.S. laws, executive orders, regulations, orders, directives, 
or licenses, or who have submitted a material misstatement or omission 
in a CFIUS notice or declaration or violated a material provision of a 
mitigation agreement, among other things, will not be considered 
excepted real estate investors. Additionally, note that a foreign 
person who is an excepted real estate investor at the time of the 
transaction, but, who, for up to three years after the completion date, 
fails to meet certain criteria, is deemed not to be an excepted real 
estate investor and the transaction is thus subject to CFIUS 
jurisdiction as a covered investment. Any member of the Committee may 
file an agency notice of the transaction for up to one year (and the 
Chairperson of the Committee for up to three years in extraordinary 
circumstances).
    Section 802.215--Excepted real estate foreign state. The rule 
proposes that the excepted real estate foreign state definition operate 
as a two-factor conjunctive test. First, the foreign state must be 
included in a defined group of eligible foreign states, which will be 
separately published on the Department of the Treasury website. As this 
is a new concept with potentially significant implications for the 
national security of the United States, CFIUS initially intends to 
designate a limited number of eligible foreign states. CFIUS plans to 
review this group in the future and potentially expand the number of 
eligible foreign states.
    Second, in furtherance of CFIUS's efforts to encourage partner 
countries to implement robust processes to review foreign investment in 
their countries and to increase cooperation with the United States, the 
Secretary of the Treasury, with the agreement of a super-majority of 
Committee member agencies, will also make a determination, as described 
in subpart J, for each eligible foreign state as to whether such 
foreign state has established and is effectively utilizing a robust 
process to assess foreign investments for national security risks and 
to facilitate coordination with the United States on matters relating 
to investment security. In making these determinations, CFIUS will 
consider factors that will be made available on the Department of the 
Treasury website. The Committee is considering delaying the 
effectiveness of this requirement in order to provide the eligible 
foreign states time to enhance their foreign investment review 
processes and bilateral cooperation. Any such determinations 
identifying a foreign state as an excepted real estate foreign state 
will be published in the Federal Register and incorporated into the 
Committee's list of excepted real estate foreign states, which will be 
made available on the Department of the Treasury website.
2. Section 802.217(b)-(g)--Other Excepted Real Estate Transactions
    As noted in the definition of excepted real estate transaction 
above, the proposed rule specifically excepts from its coverage certain 
types of transactions as summarized below.
    Section 802.217(b)--Part 800 transaction. The proposed rule 
clarifies that a covered transaction as defined by part 800 that 
includes the purchase, lease, or concession of covered real estate is 
not a ``covered real estate transaction.'' If a transaction is subject 
to part 800, the parties should analyze whether to notify CFIUS of a 
transaction under part 800. Such a transaction should not be filed 
under part 802, even if it includes real estate. If the transaction is 
not subject to part 800, parties should review part 802 and analyze 
whether to notify CFIUS of the transaction under part 802.
    Sections 802.217(c) and 802.239--Urbanized area. FIRRMA requires 
that real estate in ``urbanized areas,'' as defined by the Census 
Bureau in the most recent U.S. census, be excluded from CFIUS's real 
estate jurisdiction except as otherwise prescribed by the Committee in 
regulations in consultation with the Secretary of Defense. The proposed 
rule was developed through consultation with the Department of Defense, 
including the approach to urbanized areas. The proposed rule includes 
the Census Bureau definition and generally excludes transactions 
involving covered real estate located in urbanized areas. The urbanized 
area exclusion applies to covered real estate everywhere except where 
it is in ``close proximity'' to a military installation or another 
sensitive facility or property of the U.S. Government as listed in 
appendix A, or is, is within, or will function as part of, an airport 
or maritime port.
    Sections 802.217(c) and 802.238--Urban cluster. The proposed rule 
also applies the exception for covered real estate in an urbanized area 
to real estate in an ``urban cluster,'' as that term is defined by the 
Census Bureau. Similar to urbanized areas, the urban cluster exclusion 
applies to covered real estate everywhere except where it is in ``close 
proximity'' or is, is within, or will function as part of, an airport 
or maritime port.
    Sections 802.217(d) and 802.224--Housing unit. FIRRMA requires an 
exception for a real estate purchase, lease, or concession of a single 
``housing unit,'' as defined by the Census Bureau. An important element 
of the Census Bureau definition is that the housing unit is or is 
intended for occupancy as a separate living quarters. This means that 
the resident/occupant lives apart from other residents and has access 
to the outside. An example is an apartment unit in an apartment 
building. The Census Bureau definition is focused on the housing 
structure itself, and does not discuss fixtures or land adjacent to the 
housing unit. Given that many single housing units are conveyed with 
adjoining land, the proposed rule includes within the exception any 
fixtures and adjacent land that is incidental to the intended use of 
the real estate as a housing unit. Fixtures and land will be considered 
incidental if the size and nature of such is common for similar single 
housing units in the locality in which the unit is located. If the 
fixtures and adjacent land are not common for other similar housing 
units in the locality, the exception would apply only to the housing 
unit itself.
    Section 802.217(e)--Retail trade and certain other establishments. 
The proposed rule provides an exception related to real estate 
transactions in the context of airport and maritime port leases and 
concessions, where the terms of the lease or concession restrict use to 
retail trade, accommodation, or food service sector establishments. The 
Department of the Treasury is considering, and in particular welcomes 
comment on, whether there are other categories of real estate 
transactions, outside of the ports context, where the standard terms of 
the underlying arrangement limit use to these types of establishments.
    Section 802.217(f)--Commercial office space. The proposed rule 
provides an exception for purchases, leases, and concessions of 
commercial

[[Page 50219]]

office space, based on the amount of space occupied by the foreign 
person and ratio of the foreign person to the total number of tenants 
in the building. The Department of the Treasury is considering, and in 
particular welcomes comment on, the approach in this exception as well 
as its impact and whether there is other similarly situated real 
estate.
    Section 802.217(g)--American Indian and Alaska Native lands. The 
proposed rule provides an exception for transactions where the covered 
real estate is owned by certain Alaska Native entities or held in trust 
by the United States for American Indians, Indian tribes, Alaska 
Natives and Alaska Native entities.

D. Subpart C--Coverage

    Subpart C of the proposed rule includes provisions and examples 
that describe with particularity the transactions that are, or are not, 
covered real estate transactions (see Sec.  802.301 and Sec.  802.302).
    Subpart C also discusses lending transactions at Sec.  802.303. 
This would include commercial mortgages. While a lending transaction 
generally shall not, by itself, constitute a covered real estate 
transaction, subpart C discusses factors that CFIUS will consider in 
determining whether the lending transaction is a covered real estate 
transaction. Among other factors, the Committee will consider whether a 
default under the lending transaction would afford the foreign person 
the property rights defined in the proposed rule. In determining 
whether to accept a declaration or notice, the Committee also will 
consider the immediacy or occurrence of the default or other condition.
    Finally, the proposed rule discusses the timing rule for contingent 
equity interests at Sec.  802.304. This section sets forth the factors 
that CFIUS will take into account in determining whether the purchase 
of contingent equity interests, rather than the conversion or 
satisfaction of conditions, would potentially be a covered real estate 
transaction. Among other factors, the Committee would consider whether 
the interests and rights that would be conveyed are reasonably 
determined at the time of the purchase of the contingent equity.

E. Subpart D--Declarations

    FIRRMA allows parties to inform the Committee of covered real 
estate transactions by submitting a declaration or filing a notice, 
which the proposed rule implements in Subparts D and E, respectively.
    Declarations differ from notices in three key ways. First, 
declarations are shorter in length, generally not exceeding five pages. 
To facilitate the submission of declarations under the proposed rule, 
CFIUS intends to make available a standard fillable form. Parties will 
be able to use the form to submit declarations to the Committee.
    Second, the timeline for the Committee to take action on 
declarations is shorter than for notices. FIRRMA provides CFIUS up to 
30 days to respond to a declaration. This differs from the timeline for 
notices, which is 45 days for a review and an additional 45 days for an 
investigation, with a possibility of a 15-day extension in 
``extraordinary circumstances.''
    Third, FIRRMA provides CFIUS with several potential responses to a 
declaration, and CFIUS need not make a final determination with respect 
to action under section 721 on the basis of a declaration.
    Section 802.401--Procedures for declarations. The proposed rule 
outlines the process under which parties may submit a declaration. In 
order to submit a declaration, the parties need to provide the 
information required by Sec.  802.402, including certifications. The 
rule does not permit parties to submit a declaration regarding a 
transaction that is also the subject of a notice without written 
approval from the Staff Chairperson. Conversely, parties may not file a 
notice regarding a transaction that is the subject of a declaration 
until such time as the Committee's assessment of the declaration has 
been completed (see Sec.  802.501(j)).
    Section 802.402--Contents of declarations. The proposed rule sets 
forth the information that is required in a declaration, consistent 
with FIRRMA's requirement that CFIUS establish declarations as 
``abbreviated notices that would not generally exceed five pages in 
length.'' As part of a declaration, parties may voluntarily stipulate 
that the transaction is a covered real estate transaction.
    Section 802.403--Beginning of 30-day assessment period. The 
proposed rule requires that the Committee take action on a declaration 
within 30 days of the Committee's receipt of the declaration from the 
Staff Chairperson. The proposed rule explicitly provides that the Staff 
Chairperson may invite parties to a declaration to attend a meeting 
with Committee Staff to discuss and clarify issues pertaining to the 
transaction that is the subject of the declaration.
    Section 802.404--Rejection, disposition, or withdrawal of 
declarations. The proposed rule provides that the Committee may reject 
a declaration if it is incomplete, there is a material change in the 
transaction that has been notified, information comes to light that 
contradicts material information provided by the parties in the 
declaration, or parties to a submitted declaration fail to provide 
information requested by the Committee within two business days of the 
request (unless such timeframe is extended by the Staff Chairperson). 
The proposed rule also establishes procedures for parties to withdraw a 
declaration and makes clear that parties may not submit more than one 
declaration for the same or substantially similar transaction without 
approval from the Staff Chairperson.
    Section 802.405--Committee actions. The proposed rule implements 
FIRRMA's mandate that the Committee take one of four actions in 
response to a declaration: (1) Request that the parties file a notice; 
(2) inform the parties that CFIUS cannot conclude action under section 
721 on the basis of the declaration, and that they may file a notice to 
seek written notification from the Committee that the Committee has 
concluded all action under section 721 with respect to the transaction; 
(3) initiate a unilateral review of the transaction through an agency 
notice; or (4) notify the parties that CFIUS has concluded all action 
under section 721.

F. Subpart E--Notices

    Subpart E implements the process for parties to submit a written 
notice to CFIUS regarding a covered real estate transaction. As noted 
above, a notice differs from a declaration in several respects, notably 
that the proposed rule requires parties to provide a more detailed set 
of information in a notice. Based on that more detailed set of 
information, the Committee must ultimately resolve a written notice by 
either concluding all action under section 721 with respect to the 
transaction (i.e., ``clearing the transaction''), with or without 
mitigation, or sending a report to the President requesting the 
President's decision with respect to the transaction. The proposed rule 
sets forth the required contents of a written notice, the timeframe in 
which the Committee is required to act upon it, and actions that the 
Committee can take upon the submission of a complete notice. For 
members of the public familiar with existing CFIUS regulations, the 
process set forth in this part is substantially similar to the process 
outlined under subpart E of part 800 regarding covered transactions, as 
modified in the concurrent rulemaking regarding that part.

[[Page 50220]]

    Section 802.501--Procedures for notice. The proposed rule outlines 
the process through which parties can file a notice. In order for a 
filed notice to be considered complete, the party or parties filing the 
notice must provide the information specified in Sec.  802.502, 
including certifications. The proposed rule includes a provision 
allowing and encouraging parties to provide a draft notice to the 
Committee for review and consultation. Pursuant to Sec.  802.502, 
parties may include a stipulation that the transaction is a covered 
real estate transaction. If parties include such a stipulation and 
accompanying description of the basis for the stipulation, the 
Committee must provide comments or accept a formal written notice 
within 10 business days after the submission of the draft or formal 
written notice. Parties may not file a notice regarding a transaction 
that is the subject of a declaration until such time as the Committee's 
assessment of the declaration has been completed.
    Section 802.502--Contents of voluntary notice. The proposed rule 
sets forth the information parties must include in a written notice for 
it to be considered complete. The information requirements include the 
submission of information necessary to analyze whether the transaction 
is a covered real estate transaction. As noted, FIRRMA allows parties 
to stipulate that the transaction is a covered real estate transaction. 
In making a stipulation, parties acknowledge that the Committee and the 
President are entitled to rely on such stipulation in determining 
whether the transaction is a covered real estate transaction, and 
parties making a stipulation waive the right to challenge any such 
determination. Neither the Committee nor the President is bound by any 
such stipulation, nor does any such stipulation limit the ability of 
the Committee or the President to act on any authority provided under 
section 721 with respect to any covered real estate transaction.
    Section 802.503--Beginning of 45-day review period. The proposed 
rule implements FIRRMA's 45-day timeframe for CFIUS's review of a real 
estate transaction filed as a notice.
    Section 802.504--Deferral, rejection, or disposition of certain 
voluntary notices. Among other things, the proposed rule provides that 
the Committee may reject a notice filed under part 802 in several 
circumstances, including if the notice is incomplete, there is a 
material change in the transaction that has been notified, information 
comes to light that contradicts material information provided by the 
parties in the notice, or parties to a filed notice fail to provide 
information requested by the Committee within three business days of 
the request (unless such timeframe is extended by the Staff 
Chairperson).
    Sections 802.505 through 802.508--Investigations. The proposed rule 
implements FIRRMA's authority for the Committee to undertake an 
investigation of a covered real estate transaction following the review 
period. An investigation will be undertaken in identified 
circumstances, including upon the Committee's acceptance of a 
recommendation of the lead agency that an investigation be undertaken. 
The investigation period commences no later than the end of the review 
period and must be completed within 45 days, unless extended in 
``extraordinary circumstances.''
    Section 802.509--Withdrawal of notices. The proposed rule allows 
parties to withdraw notices filed with the Committee where the request 
to withdraw the notice is granted by the Committee.

G. Subpart F--Committee Procedures

    Subpart F implements various provisions of the DPA, including the 
Committee's consideration of specified national security factors (Sec.  
802.601), providing a role for the Secretary of Labor with respect to 
mitigation agreements (Sec.  802.602), describing the materiality of 
certain information (Sec.  802.603), and clarifying the tolling of 
deadlines during a lapse in appropriations (Sec.  802.604).

H. Subpart G--Finality of Action

    Subpart G of the proposed rule is similar to the existing 
regulations at part 800 with respect to finality of action. A covered 
real estate transaction that has been notified to CFIUS as a notice or 
declaration, and on which CFIUS has concluded action under section 721 
after determining that there are no unresolved national security 
concerns, qualifies for a ``safe harbor'' as described in Sec.  
802.701. This means that, unless a party to a transaction submitted 
false or misleading material information or omitted material 
information, and subject to compliance with the terms of any mitigation 
agreement entered into with or conditions imposed by CFIUS, the 
transaction can proceed without the possibility of subsequent 
suspension or prohibition under section 721. A covered real estate 
transaction on which CFIUS has not concluded action does not qualify 
for the safe harbor, and CFIUS has the authority to initiate review of 
the transaction on its own, even after the transaction has been 
completed, which CFIUS may choose to do if it believes the transaction 
presents national security considerations.

I. Subpart H--Provision and Handling of Information

    Subpart H discusses various requirements with respect to providing 
information to the Committee as well as the Committee's handling of 
such information, consistent with the existing regulations at part 800. 
Under the DPA, each notifying party is required to certify in writing 
that the information it provides to CFIUS is complete and accurate as 
it relates to itself and the transaction. This requirement pertains 
both to the information in the notice or declaration and to follow-up 
information.
    Section 802.802 discusses confidentiality requirements, which are 
fundamental to the CFIUS process and addressed in the DPA.

J. Subpart I--Penalties and Damages

    Subpart I of the proposed rule implements CFIUS's authority, 
consistent with FIRRMA, to impose penalties for certain actions or 
omissions by parties relating to a real estate transaction. This is 
similar to the existing regulations at part 800 and the concurrent 
rulemaking for that part.
    Section 802.901--Penalties and damages. The proposed rule allows 
for the imposition of civil penalties for material misstatements, 
omissions, or certifications made by a party under part 802 and for 
violations of a material provision of a mitigation agreement or 
material conditions of an order entered into or imposed after the 
effective date. The proposed rule also authorizes the Committee to 
include a liquidated damages clause in a mitigation agreement under 
part 802 and notes the applicability of section 1001 of title 18, 
United States Code, regarding criminal liability for false statements, 
to any information provided to the Committee under section 721.
    Section 802.902--Effect of lack of compliance. The proposed rule 
includes a provision authorizing the Committee to negotiate a 
remediation plan for lack of compliance with a mitigation agreement or 
condition entered into or imposed under section 721(l), require filings 
for future covered transactions for five years, or seek injunctive 
relief, in addition to other available remedies.

III. Rulemaking Requirements

Executive Order 12866

    These regulations are not subject to the general requirements of 
Executive Order 12866, which covers review of regulations by the Office 
of Information

[[Page 50221]]

and Regulatory Affairs in the Office of Management and Budget, because 
they relate to a foreign affairs function of the United States, 
pursuant to section 3(d)(2) of that order.

Paperwork Reduction Act

    The collections of information contained in this notice of proposed 
rulemaking have been submitted to the Office of Management and Budget 
for review in accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507(d)) (PRA).
    Comments on the collection of information should be sent to the 
Office of Management and Budget, Attn: Desk Officer for the Department 
of the Treasury, Office of Information and Regulatory Affairs, 
Washington, DC 20503, or via email to [email protected], with 
copies to Thomas Feddo, Deputy Assistant Secretary for Investment 
Security, U.S. Department of the Treasury, 1500 Pennsylvania Avenue NW, 
Washington, DC 20220. Comments on the collection of information should 
be received by November 25, 2019.
    In accordance with 5 CFR 1320.8(d)(1), the Department of the 
Treasury is soliciting comments from members of the public concerning 
this collection of information to:
    (1) Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
    (2) Evaluate the accuracy of the agency's estimate of the burden of 
the proposed collection of information;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the collection of information on those 
who are to respond, including through the use of appropriate automated 
collection techniques or other forms of information technology.
    The burden of the information collections in this proposed rule is 
estimated as follows:
For Notices
    Estimated total annual reporting and/or recordkeeping burden: 
17,400 hours.
    Estimated average annual burden per respondent: 116 hours.
    Estimated number of respondents: 150 per year.
    Estimated annual frequency of responses: Not applicable.
For Declarations
    Estimated total annual reporting and/or recordkeeping burden: 3,000 
hours.
    Estimated average annual burden per respondent: 15 hours.
    Estimated number of respondents: 200 per year.
    Estimated annual frequency of responses: Not applicable.
    Under the PRA, an agency may not conduct or sponsor, and a person 
is not required to respond to, a collection of information unless it 
displays a valid control number assigned by the Office of Management 
and Budget.

Initial Regulatory Flexibility Analysis

    The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) 
generally requires an agency to prepare a regulatory flexibility 
analysis, unless the agency certifies that the rule will not, once 
implemented, have a significant economic impact on a substantial number 
of small entities. The RFA applies whenever an agency is required to 
publish a general notice of proposed rulemaking under section 553(b) of 
the Administrative Procedure Act (APA) (5 U.S.C. 553), or any other 
law. As set forth below, because regulations issued pursuant to the 
DPA, such as these regulations, are not subject to the APA, or other 
law requiring the publication of a general notice of proposed 
rulemaking, the RFA does not apply.
    The proposed rule implements section 721 of the DPA. Section 709(a) 
of the DPA provides that the regulations issued under it are not 
subject to the rulemaking requirements of the APA. Section 709(b)(1) 
instead provides that any regulation issued under the DPA be published 
in the Federal Register and opportunity for public comment be provided 
for not less than 30 days. Section 709(b)(3) of the DPA also provides 
that all comments received during the public comment period be 
considered and the publication of the final regulation contain written 
responses to such comments. Consistent with the plain text of the DPA, 
legislative history confirms that Congress intended that regulations 
under the DPA be exempt from the notice and comment provisions of the 
APA and instead provided that the agency include a statement that 
interested parties were consulted in the formulation of the final 
regulation. See H.R. Conf. Rep. No. 102-1028, at 42 (1992) and H.R. 
Rep. No. 102-208 pt. 1, at 28 (1991). The limited public participation 
procedures described in the DPA do not require a general notice of 
proposed rulemaking as set forth in the RFA. Further, the mechanisms 
for publication and public participation are sufficiently different to 
distinguish the DPA procedures from a rule that requires a general 
notice of proposed rulemaking. In providing the President with expanded 
authority to suspend or prohibit certain real estate transactions 
involving foreign persons if such a transaction would threaten to 
impair the national security of the United States, Congress could not 
have contemplated that regulations implementing such authority would be 
subject to RFA analysis. For these reasons, the RFA does not apply to 
these regulations.
    Notwithstanding the inapplicability of the RFA, the Committee has 
undertaken an analysis of the proposed rule's potential impact on small 
businesses in the United States. As discussed above, the proposed rule 
expands the jurisdiction of the Committee to review the purchase or 
lease by, or concession to, a foreign person of certain real estate in 
the United States. Accordingly, the proposed rule may impact any U.S. 
business, including a small U.S. business, that engages in a covered 
real estate transaction.
    The Department of the Treasury does not have a source for 
information on the number of small U.S. businesses that would be 
involved in some way in the purchase, lease, or concession of real 
estate to a foreign person that could be covered under this proposed 
rule. While the Committee believes that the proposed rule likely would 
not have a ``significant economic impact on a substantial number of 
small entities'' (5 U.S.C. 605(b)), the Committee does not have 
complete data at this time to make this determination. Accordingly, the 
Department of the Treasury invites the public to provide information 
and comments on the types and number of small entities potentially 
impacted by the proposed rule. If necessary, the Department of the 
Treasury will undertake a final regulatory flexibility analysis in the 
final rule.

List of Subjects in 31 CFR Part 802

    Foreign investments in the United States, Federal buildings and 
facilities, Government property, Investigations, Investments, 
Investment companies, Land sales, National defense, Public lands, Real 
property acquisition, Reporting and Recordkeeping requirements.


0
For the reasons set forth in the preamble, the Department of the 
Treasury proposes to add part 802 to title 31 of the Code of Federal 
Regulations, to read as follows:

[[Page 50222]]

PART 802--REGULATIONS PERTAINING TO CERTAIN TRANSACTIONS BY FOREIGN 
PERSONS INVOLVING REAL ESTATE IN THE UNITED STATES

Subpart A--General
Sec.
802.101 Scope.
802.102 Risk-based analysis.
802.103 Effect on other law.
802.104 Applicability rule.
Subpart B--Definitions
802.201 Airport.
802.202 Business day.
802.203 Certification.
802.204 Close proximity.
802.205 Committee; Chairperson of the Committee; Staff Chairperson.
802.206 Completion date.
802.207 Concession.
802.208 Contingent equity interest.
802.209 Control.
802.210 Conversion.
802.211 Covered real estate.
802.212 Covered real estate transaction.
802.213 Effective date.
802.214 Entity.
802.215 Excepted real estate foreign state.
802.216 Excepted real estate investor.
802.217 Excepted real estate transaction.
802.218 Extended range.
802.219 Foreign entity.
802.220 Foreign government.
802.221 Foreign national.
802.222 Foreign person.
802.223 Hold.
802.224 Housing unit.
802.225 Lead agency.
802.226 Lease.
802.227 Maritime port.
802.228 Military installation.
802.229 Minimum excepted ownership.
802.230 Parent.
802.231 Party to a transaction.
802.232 Person.
802.233 Property right.
802.234 Purchase.
802.235 Real estate.
802.236 Section 721.
802.237 United States.
802.238 Urban cluster.
802.239 Urbanized area.
802.240 U.S. business.
802.241 U.S. national.
802.242 U.S. public entity.
802.243 Voting interest.
Subpart C--Coverage
802.301 Transactions that are covered real estate transactions.
802.302 Transactions that are not covered real estate transactions.
802.303 Lending transactions.
802.304 Timing rule for a contingent equity interest.
Subpart D--Declarations
802.401 Procedures for declarations.
802.402 Contents of declarations.
802.403 Beginning of 30-day assessment period.
802.404 Rejection, disposition, or withdrawal of declarations.
802.405 Committee actions.
Subpart E--Notices
802.501 Procedures for notices.
802.502 Contents of voluntary notices.
802.503 Beginning of 45-day review period.
802.504 Deferral, rejection, or disposition of certain voluntary 
notices.
802.505 Determination of whether to undertake an investigation.
802.506 Determination not to undertake an investigation.
802.507 Commencement of investigation.
802.508 Completion or termination of investigation and report to the 
President.
802.509 Withdrawal of notices.
Subpart F--Committee Procedures
802.601 General.
802.602 Role of the Secretary of Labor.
802.603 Materiality.
802.604 Tolling of deadlines during lapse in appropriations.
Subpart G--Finality of Action
802.701 Finality of actions under section 721.
Subpart H--Provision and Handling of Information
802.801 Obligation of parties to provide information.
802.802 Confidentiality.
Subpart I--Penalties and Damages
802.901 Penalties and damages.
802.902 Effect of lack of compliance.
Subpart J--Foreign National Security Investment Review Regimes
802.1001 Determinations.
802.1002 Effect of determinations.
Appendix A to Part 802--List of Military Installations

    Authority: 50 U.S.C. 4565; E.O. 11858, as amended, 73 FR 4677.

Subpart A--General


Sec.  802.101  Scope.

    (a) Section 721 of title VII of the Defense Production Act of 1950 
(50 U.S.C. 4565), as amended, authorizes the President to suspend or 
prohibit transactions involving real estate that meet specified 
criteria, which are referred to in this part as ``covered real estate 
transactions,'' when, in the President's judgment, there is credible 
evidence that leads the President to believe that the foreign person 
engaging in a covered real estate transaction might take action that 
threatens to impair the national security of the United States, and 
when provisions of law other than section 721 and the International 
Emergency Economic Powers Act (50 U.S.C. 1701-1706), 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. Section 721 also authorizes the Committee to review 
covered real estate transactions and to mitigate any risk to the 
national security of the United States that arises as a result of such 
transactions.
    (b) This part implements regulations pertaining to covered real 
estate transactions as defined in Sec.  802.212 of this part. 
Regulations pertaining to covered transactions are addressed in part 
800 of this title.


Sec.  802.102   Risk-based analysis.

    Any determination of the Committee with respect to a covered real 
estate transaction, to suspend, refer to the President, or to 
negotiate, enter into or impose, or enforce any agreement or condition 
under section 721 shall be based on a risk-based analysis, conducted by 
the Committee, of the effects on the national security of the United 
States of the covered real estate transaction. Any such risk-based 
analysis shall include credible evidence demonstrating the risk and an 
assessment of the threat, vulnerabilities, and consequences to national 
security related to the transaction. For purposes of this part, any 
such analysis of risk shall include and be informed by consideration of 
the following elements:
    (a) The threat, which is a function of the intent and capability of 
a foreign person to take action to impair the national security of the 
United States;
    (b) The vulnerabilities, which are the extent to which the nature 
of the covered real estate presents susceptibility to impairment of 
national security; and
    (c) The consequences to national security, which are the potential 
effects on national security that could reasonably result from the 
exploitation of the vulnerabilities by the threat actor.


Sec.  802.103   Effect on other law.

    Nothing in this part 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 without limitation the International 
Emergency Economic Powers Act, or any other authority of the President 
or the Congress under the Constitution of the United States.


Sec.  802.104   Applicability rule.

    (a) Except as provided in paragraph (b) of this section and 
otherwise in this part, the regulations in this part apply from the 
effective date.
    (b) The regulations in this part do not apply to any transaction 
for which:
    (1) The completion date is prior to the effective date; or
    (2) The parties to the transaction have executed, prior to the 
effective date, a

[[Page 50223]]

binding written agreement or other binding document establishing the 
material terms of the transaction.

Subpart B--Definitions


Sec.  802.201   Airport.

    The term airport means:
    (a) The following, in each case based on the most recent annual 
data reported by the Federal Aviation Administration from the Air 
Carrier Activity Information System:
    (1) Any ``large hub airport,'' as that term is defined in 49 U.S.C. 
40102; or
    (2) Any airport with annual aggregate all-cargo landed weight 
greater than 1.24 billion pounds; or
    (b) Any ``joint use airport,'' as that term is defined in 49 U.S.C. 
47175.


Sec.  802.202   Business day.

    The term business day means Monday through Friday, except the legal 
public holidays specified in 5 U.S.C. 6103, any day declared to be a 
holiday by federal statute or executive order, or any day with respect 
to which the U.S. Office of Personnel Management has announced that 
Federal agencies in the Washington, DC area are closed to the public. 
For purposes of calculating any deadline imposed by this part triggered 
by the submission of a party to a transaction under Sec.  802.501(i), 
any submissions received after 5 p.m. Eastern Time are deemed to be 
submitted on the next business day.

    Note 1 to Sec.  802.202: See Sec.  802.604 regarding the tolling 
of deadlines during a lapse in appropriations.

Sec.  802.203   Certification.

    (a) The term certification means a written statement signed by the 
chief executive officer or other duly authorized designee of a party 
filing a notice, declaration, or information, certifying under the 
penalties provided in the False Statements Accountability Act of 1996, 
as amended (18 U.S.C. 1001) that the notice, declaration, or 
information filed:
    (1) Fully complies with the requirements of section 721, the 
regulations in this part, and any agreement or condition entered into 
with the Committee or any member of the Committee, and
    (2) Is accurate and complete in all material respects, as it 
relates to:
    (i) The transaction, and
    (ii) The party providing the certification, including its parents, 
subsidiaries, and any other related entities described in the notice, 
declaration, or information.
    (b) For purposes of this section, a duly authorized designee is:
    (1) In the case of a partnership, any general partner thereof;
    (2) In the case of a corporation, any officer or director thereof;
    (3) In the case of any entity lacking partners, officers, or 
directors, any individual within the organization exercising executive 
functions similar to those of a general partner of a partnership or an 
officer or director of a corporation; and
    (4) In the case of an individual, such individual or his or her 
legal representative.
    (c) In each case described in paragraphs (b)(1) through (4) of this 
section, such designee must possess actual authority to make the 
certification on behalf of the party filing a notice, declaration, or 
information.

    Note 1 to Sec.  802.203: A sample certification may be found at 
the Committee's section of the Department of the Treasury website, 
currently available at https://home.treasury.gov/policy-issues/international/the-committee-on-foreign-investment-in-the-united-states-cfius.


    Note 2 to Sec.  802.203:  See Sec.  802.402(f) and Sec.  
802.502(l) regarding filing procedures in transactions in which a 
U.S. public entity is a party to the transaction.

Sec.  802.204   Close proximity.

    The term close proximity means, with respect to a military 
installation or another facility or property of the U.S. Government, 
the area that extends outward one mile from the boundary of such 
military installation, facility, or property.


Sec.  802.205   Committee; Chairperson of the Committee; Staff 
Chairperson.

    The term Committee means the Committee on Foreign Investment in the 
United States. The Chairperson of the Committee is the Secretary of the 
Treasury. The Staff Chairperson of the Committee is the Department of 
the Treasury official so designated by the Secretary of the Treasury or 
by the Secretary's designee.


Sec.  802.206   Completion date.

    The term completion date means, with respect to a covered real 
estate transaction, the earliest date upon which the purchase, lease, 
or concession is made legally effective, or a change in rights that 
could result in a covered real estate transaction occurs.

    Note 1 to Sec.  802.206:  See Sec.  802.304 regarding the timing 
rule for a contingent equity interest.

Sec.  802.207   Concession.

    The term concession means an arrangement, other than a purchase or 
lease, whereby a U.S. public entity grants a right to use real estate 
for the purpose of developing or operating infrastructure for an 
airport or maritime port. This term includes assignment of a concession 
by the party who is not the U.S. public entity.


Sec.  802.208   Contingent equity interest.

    The term contingent equity interest means a financial instrument 
that currently does not constitute an equity interest but is 
convertible into, or provides the right to acquire, an equity interest 
upon the occurrence of a contingency or defined event.


Sec.  802.209   Control.

    (a) The term control means the power, direct or indirect, whether 
or not exercised, through the ownership of a majority or a dominant 
minority of the total outstanding voting interest in an entity, board 
representation, proxy voting, a special share, contractual 
arrangements, formal or informal arrangements to act in concert, or 
other means, to determine, direct, or decide important matters 
affecting an entity; in particular, but without limitation, to 
determine, direct, take, reach, or cause decisions regarding the 
following matters, or any other similarly important matters affecting 
an entity:
    (1) The sale, lease, mortgage, pledge, or other transfer of any of 
the tangible or intangible principal assets of the entity, whether or 
not in the ordinary course of business;
    (2) The reorganization, merger, or dissolution of the entity;
    (3) The closing, relocation, or substantial alteration of the 
production, operational, or research and development facilities of the 
entity;
    (4) Major expenditures or investments, issuances of equity or debt, 
or dividend payments by the entity, or approval of the operating budget 
of the entity;
    (5) The selection of new business lines or ventures that the entity 
will pursue;
    (6) The entry into, termination, or non-fulfillment by the entity 
of significant contracts;
    (7) The policies or procedures of the entity governing the 
treatment of non-public technical, financial, or other proprietary 
information of the entity;
    (8) The appointment or dismissal of officers or senior managers or 
in the case of a partnership, the general partner;
    (9) The appointment or dismissal of employees with access to 
critical technology or other sensitive technology or classified U.S. 
Government information; or
    (10) The amendment of the Articles of Incorporation, constituent 
agreement, or

[[Page 50224]]

other organizational documents of the entity with respect to the 
matters described in paragraphs (a)(1) through (9) of this section.
    (b) In examining questions of control in situations where more than 
one foreign person has an ownership interest in an entity, 
consideration will be given to factors such as whether the foreign 
persons are related or have formal or informal arrangements to act in 
concert, whether they are agencies or instrumentalities of the national 
or subnational governments of a single foreign state, and whether a 
given foreign person and another person that has an ownership interest 
in the entity are both controlled by any of the national or subnational 
governments of a single foreign state.
    (c) The following minority shareholder protections shall not in 
themselves be deemed to confer control over an entity:
    (1) The power to prevent the sale or pledge of all or substantially 
all of the assets of an entity or a voluntary filing for bankruptcy or 
liquidation;
    (2) The power to prevent an entity from entering into contracts 
with majority investors or their affiliates;
    (3) The power to prevent an entity from guaranteeing the 
obligations of majority investors or their affiliates;
    (4) The power to purchase an additional interest in an entity to 
prevent the dilution of an investor's pro rata interest in that entity 
in the event that the entity issues additional instruments conveying 
interests in the entity;
    (5) The power to prevent the change of existing legal rights or 
preferences of the particular class of stock held by minority 
investors, as provided in the relevant corporate documents governing 
such shares; and
    (6) The power to prevent the amendment of the Articles of 
Incorporation, constituent agreement, or other organizational documents 
of an entity with respect to the matters described in paragraphs (c)(1) 
through (5) of this section.
    (d) The Committee will consider, on a case-by-case basis, whether 
minority shareholder protections other than those listed in paragraph 
(c) of this section do not confer control over an entity.

    Note 1 to Sec.  802.209: This definition is included herein for 
the purpose of determining whether a foreign person has control of a 
U.S. business that may be involved in a covered real estate 
transaction. For additional information, see the examples provided 
at Sec.  800.208, as relevant.

Sec.  802.210   Conversion.

    The term conversion means the exercise of a right inherent in the 
ownership or holding of a particular financial instrument to exchange 
any such instrument for an equity interest.


Sec.  802.211   Covered real estate.

    The term covered real estate means real estate that:
    (a) Is, is located within, or will function as part of, an airport 
or maritime port; or
    (b) Is located within:
    (1) Close proximity of any military installation described in Sec.  
802.228(b) to (o), or another facility or property of the U.S. 
Government, in each case as identified in the list at part 1 or part 2 
of Appendix A to this part;
    (2) The extended range of any military installation described in 
Sec.  802.228(h), (k), or (m), as identified in the list at part 2 of 
Appendix A to this part;
    (3) Any county or other geographic area identified in connection 
with any military installation described in Sec.  802.228(a), as 
identified in the list at part 3 of Appendix A to this part; or
    (4) Any part of a military installation described in Sec.  
802.228(p), as identified in the list at part 4 of Appendix A to this 
part, that is located within 12 nautical miles seaward of the coastline 
of the United States.


Sec.  802.212   Covered real estate transaction.

    The term covered real estate transaction means:
    (a) Other than an excepted real estate transaction, any purchase or 
lease by, or concession to, a foreign person of covered real estate, 
that affords the foreign person at least three of the property rights 
listed in Sec.  802.233;
    (b) Other than an excepted real estate transaction, a change in the 
rights that a foreign person has with respect to covered real estate in 
which the foreign person has an ownership or leasehold interest or 
concession arrangement if that change could result in the foreign 
person having at least three of the property rights listed in Sec.  
802.233; or
    (c) Any other transaction, transfer, agreement, or arrangement, the 
structure of which is designed or intended to evade or circumvent the 
application of section 721 as it relates to real estate.

    Note 1 to Sec.  802.212:  Any transaction described in (a) 
through (c) of this section that arises pursuant to a bankruptcy 
proceeding or other form of default on debt is a covered real estate 
transaction. See also Sec.  802.303 for the treatment of certain 
lending transactions.

Sec.  802.213   Effective date.

    The term effective date means [EFFECTIVE DATE OF FINAL RULE].


Sec.  802.214   Entity.

    The term entity means any branch, partnership, group or sub-group, 
association, estate, trust, corporation or division of a corporation, 
or organization (whether or not organized under the laws of any State 
or foreign state); assets (whether or not organized as a separate legal 
entity) operated by any one of the foregoing as a business undertaking 
in a particular location or for particular products or services; and 
any government (including a foreign national or subnational government, 
the U.S. Government, a subnational government within the United States, 
and any of their respective departments, agencies, or 
instrumentalities).


Sec.  802.215   Excepted real estate foreign state.

    The term excepted real estate foreign state means each foreign 
state from time to time identified by the Chairperson of the Committee, 
with the agreement of two-thirds of the voting members of the 
Committee, and, beginning on [TWO YEARS AFTER EFFECTIVE DATE OF FINAL 
RULE], with respect to which the Chairperson of the Committee has made 
a determination pursuant to Sec.  802.1001(a).

    Note 1 to Sec.  802.215: The name of each foreign state 
identified by the Chairperson of the Committee as an excepted real 
estate foreign state will be published in a notice in the Federal 
Register and incorporated into the Committee's list of excepted real 
estate foreign states.

Sec.  802.216   Excepted real estate investor.

    (a) The term excepted real estate investor means a foreign person 
who is, as of the completion date and subject to paragraphs (c) and (d) 
of this section:
    (1) A foreign national who is a national of one or more excepted 
real estate foreign states and is not also a national of any foreign 
state that is not an excepted real estate foreign state;
    (2) A foreign government of an excepted real estate foreign state; 
or
    (3) A foreign entity that meets each of the following conditions 
with respect to itself and each of its parents (if any):
    (i) Such entity is organized under the laws of an excepted real 
estate foreign state or in the United States;
    (ii) Such entity has its principal place of business in an excepted 
real estate foreign state or the United States;
    (iii) Each member or observer of the board of directors or similar 
body of such entity is a U.S. national or, if a foreign national, is a 
national of one or more excepted real estate foreign states and is not 
also a national of any foreign state that is not an excepted real 
estate foreign state;

[[Page 50225]]

    (iv) Any foreign person that individually holds, or each foreign 
person that is part of a group of foreign persons that, in the 
aggregate, holds, five percent or more of the outstanding voting 
interest of such entity; holds the right to five percent or more of the 
profits of such entity; holds the right in the event of dissolution to 
five percent or more of the assets of such entity; or could exercise 
control over such entity, is:
    (A) A foreign national who is a national of one or more excepted 
real estate foreign states and is not also a national of any foreign 
state that is not an excepted real estate foreign state;
    (B) A foreign government of an excepted real estate foreign state; 
or
    (C) A foreign entity that is organized under the laws of an 
excepted real estate foreign state and has its principal place of 
business in an excepted real estate foreign state or in the United 
States; and
    (v) The minimum excepted ownership of such entity is held, 
individually or in the aggregate, by one or more persons each of whom 
is:
    (A) Not a foreign person;
    (B) A foreign national who is a national of one or more excepted 
real estate foreign states and is not also a national of any foreign 
state that is not an excepted real estate foreign state;
    (C) A foreign government of an excepted real estate foreign state; 
or
    (D) A foreign entity that is organized under the laws of an 
excepted real estate foreign state and has its principal place of 
business in an excepted real estate foreign state or in the United 
States.
    (b) When more than one person holds an ownership interest in an 
entity, in determining whether the ownership interests of such persons 
should be aggregated for purposes of paragraph (a)(3)(iv) of this 
section, consideration will be given to factors such as whether the 
persons holding the ownership interests are related or have formal or 
informal arrangements to act in concert, whether they are agencies or 
instrumentalities of the national or subnational governments of a 
single foreign state, and whether a given foreign person and another 
foreign person that has an ownership interest in the entity are both 
controlled by any of the national or subnational governments of a 
single foreign state.
    (c) Notwithstanding paragraph (a) of this section, a foreign person 
is not an excepted real estate investor with respect to a transaction 
if:
    (1) In the five years prior to the completion date of the 
transaction the foreign person or any of its parents or subsidiaries:
    (i) Has received written notice from the Committee that it has 
submitted a material misstatement or omission in a notice or 
declaration or made a false certification under this part or parts 800 
or 801 of this title;
    (ii) Has received written notice from the Committee that it has 
violated a material provision of a mitigation agreement entered into 
with, material condition imposed by, or an order issued by, the 
Committee or a lead agency under section 721(l);
    (iii) Has been subject to action by the President under section 
721(d);
    (iv) Has:
    (A) Received a written Finding of Violation or Penalty Notice 
imposing a civil monetary penalty from the Department of the Treasury 
Office of Foreign Assets Control (OFAC); or
    (B) Entered into a settlement agreement with OFAC with respect to 
apparent violations of U.S. sanctions laws administered by OFAC, 
including without limitation the International Emergency Economic 
Powers Act, the Trading With the Enemy Act, the Foreign Narcotics 
Kingpin Designation Act, each as amended, or of any executive order, 
regulation, order, directive, or license issued pursuant thereto;
    (v) Has received a written notice of debarment from the Department 
of State Directorate of Defense Trade Controls, as described in 22 CFR 
parts 127 and 128;
    (vi) Has been a respondent or party in a final order, including a 
settlement order, issued by the Department of Commerce Bureau of 
Industry and Security (BIS) regarding violations of U.S. export control 
laws administered by BIS, including without limitation the Export 
Control Reform Act of 2018 (Title XVII, Subtitle B of Pub. L. 115-232, 
132 Stat. 2208, 50 U.S.C. 4801, et seq.), the Export Administration 
Regulations (15 CFR parts 730-774), or of any executive order, 
regulation, order, directive, or license issued pursuant thereto;
    (vii) Has received a final decision from the Department of Energy 
National Nuclear Security Administration imposing a civil penalty with 
respect to a violation of section 57 b. of the Atomic Energy Act of 
1954, as implemented under 10 CFR part 810; or
    (viii) Has been convicted of a crime under, or has entered into a 
deferred prosecution agreement or non-prosecution agreement with the 
Department of Justice with respect to a violation of, any felony crime 
in any jurisdiction within the United States; or
    (2) The foreign person or any of its parents or subsidiaries is, on 
the date on which the parties to the transaction first execute a 
binding written agreement, or other binding document, establishing the 
material terms of the transaction, listed on either the BIS Unverified 
List or Entity List in 15 CFR part 744.
    (d) Irrespective of whether the foreign person satisfies the 
criteria in paragraphs (a)(1), (2), or (3)(i) through (iii) of this 
section as of the completion date, if at any time during the three-year 
period following the completion date the foreign person no longer meets 
all the criteria set forth in paragraphs (a)(1), (2), or (3)(i) through 
(iii) of this section, the foreign person is not an excepted real 
estate investor with respect to the transaction from the completion 
date onward. This paragraph does not apply when an excepted real estate 
investor no longer meets any of the criteria solely due to a rescission 
of a determination under Sec.  802.1001(b) or if a particular foreign 
state otherwise ceases to be an excepted real estate foreign state.
    (e) A foreign person may waive its status as an excepted real 
estate investor with respect to a transaction at any time by submitting 
a declaration pursuant to Sec.  802.401 or filing a notice pursuant to 
Sec.  802.501 regarding the transaction in which it explicitly waives 
such status. In such case, the foreign person will be deemed not to be 
an excepted real estate investor and the provisions of Subpart D or E, 
as applicable, will apply.

    Note 1 to Sec.  802.216: See Sec.  802.501(c)(2) regarding an 
agency notice where a foreign person is not an excepted real estate 
investor solely due to Sec.  802.216(d).

Sec.  802.217   Excepted real estate transaction.

    The term excepted real estate transaction means the following:
    (a) A purchase or lease by, or concession to, an excepted real 
estate investor of covered real estate, or a change in rights of an 
excepted real estate investor with respect to covered real estate.
    (b) A covered transaction as defined by part 800 of this title that 
includes the purchase, lease, or concession of covered real estate.
    (c) The purchase, lease, or concession of covered real estate that 
is within an urbanized area or urban cluster, except for real estate 
that is subject to paragraph (a) or (b)(1) of Sec.  802.211.
    (d) The purchase, lease, or concession of covered real estate that 
is a single housing unit, including fixtures and adjacent land as long 
as the land is incidental to the use of the real estate as a single 
housing unit.
    (e) The lease by or a concession to a foreign person of covered 
real estate pursuant to paragraph (a) of Sec.  802.211

[[Page 50226]]

that, according to the terms of the concession or lease, may be used 
only as a retail trade, accommodation, or food service sector 
establishment, as described in the North American Industry 
Classification System Manual Sector 44-45 and 72.
    (f) The purchase or lease by, or concession to, a foreign person of 
commercial office space within a multi-unit commercial office building, 
if, upon the completion of the transaction,
    (1) The foreign person and its affiliates do not, in the aggregate, 
hold, lease, or have a concession with respect to commercial office 
space in such building that exceeds 10 percent of the total square 
footage of the commercial office space of such building and
    (2) The foreign person and its affiliates (each counted separately) 
do not represent more than 10 percent of the total number of tenants in 
the building.
    (g) The purchase, lease, or concession of land either:
    (1) Owned by an Alaska Native village, Native group, or Native 
Corporation as those terms are defined in the Alaska Native Claims 
Settlement Act at 43 U.S.C. 1602; or
    (2) Held in trust by the United States for American Indians, Indian 
tribes, Alaska Natives, or any of the entities set forth in paragraph 
(g)(1) of this section.
    (h) Examples:

    (1) Example 1. Corporation A, a foreign person, proposes to 
purchase all of the shares of Corporation X, which is a U.S. 
business. Corporation X is in the business of owning and leasing 
real estate including real estate that is in close proximity to a 
military installation identified in part 1 or part 2 of Appendix A 
to this part. As the sole owner, Corporation A will have control 
over Corporation X. The proposed transaction is not a covered real 
estate transaction but is a covered transaction under part 800 of 
this title.
    (2) Example 2. Same facts as Example 1 of this section, except 
that Corporation X, after the transaction with Corporation A is 
completed, leases a tract of land from another person that is in 
close proximity to a military installation identified in part 1 or 
part 2 of Appendix A to this part. Assuming no other relevant facts, 
the proposed transaction is a covered real estate transaction but 
only with respect to the new lease.
    (3) Example 3. Corporation A, a foreign person, seeks to 
purchase from Corporation X, a U.S. business, an empty warehouse 
located in the United States that is in close proximity to a 
military installation identified in part 1 or part 2 of Appendix A 
to this part. Assuming no other relevant facts, Corporation A has 
not acquired a U.S. business, and the purchase of the covered real 
estate is not a covered transaction subject to part 800 of this 
title.
    (4) Example 4. Same facts as Example 3 of this section, except 
that, in addition to the proposed purchase of Corporation X's empty 
warehouse, Corporation A would acquire the personnel, customer list, 
equipment, and inventory management software used to operate the 
warehouse. Under these facts, Corporation A is acquiring a U.S. 
business, and the proposed transaction is a covered transaction 
subject to part 800 of this title and therefore not a covered real 
estate transaction.
    (5) Example 5. Corporation A, a foreign person, purchases 
covered real estate that is undeveloped. Corporation A, through a 
newly incorporated U.S. subsidiary, intends to use the covered real 
estate to set up a manufacturing facility. Assuming no other 
relevant facts, Corporation A has not acquired a U.S. business, and 
the purchase of the covered real estate is not a covered transaction 
subject to part 800 of this title. Corporation A's purchase of the 
covered real estate is, however, a covered real estate transaction.
    (6) Example 6. A foreign person purchases real estate. The 
nearest military installation is one that is identified in part 2 of 
Appendix A to this part and is 40 miles away (i.e., in the extended 
range) from the real estate. The real estate is located in a 
statistical geographic area with a population of 125,000 
individuals. Assuming no other relevant facts, the real estate 
purchase is not a covered real estate transaction because the real 
estate is located in an urbanized area.
    (7) Example 7. Same facts as Example 6 of this section, except 
that the covered real estate is not located in an urbanized area or 
an urban cluster. Assuming no other relevant facts, the real estate 
transaction is a covered real estate transaction.
    (8) Example 8. A foreign person purchases real estate that is 
0.25 miles from a military installation identified in part 1 of 
Appendix A to this part. The real estate is located in an urbanized 
area. Assuming no other relevant facts, the real estate transaction 
is a covered real estate transaction because it is in close 
proximity to a military installation listed in part 1 of Appendix A 
to this part.
    (9) Example 9. A foreign person purchases a single housing unit 
including the one acre of land surrounding it, within 0.5 miles from 
a military installation. Each home in the neighborhood sits on a 
separate lot, each of which is approximately one acre in size. The 
acre of land surrounding the housing unit is incidental to use of 
the land as a single housing unit, and the real estate transaction 
therefore is not a covered real estate transaction.
    (10) Example 10. Same facts as Example 9 of this section, except 
that the foreign person also purchases an adjacent five-acre 
undeveloped tract of land a year later. Assuming no other relevant 
facts, the purchase of the adjacent tract of land is a covered real 
estate transaction.

    Note 1 to Sec.  802.217:  With respect to paragraph (d) of this 
section, for purposes herein, fixtures and land shall be considered 
incidental if the size and nature of such is common for similar 
single housing units in the locality in which the unit is located.

Sec.  802.218   Extended range.

    The term extended range means, with respect to any military 
installation identified in Sec.  802.228(h), (k), or (m), as listed in 
part 2 of Appendix A to this part, the area that extends 99 miles 
outward from the outer boundary of close proximity to such military 
installation, but, where applicable, no more than 12 nautical miles 
seaward of the coastline of the United States.


Sec.  802.219   Foreign entity.

    (a) The term foreign entity means any branch, partnership, group or 
sub-group, association, estate, trust, corporation or division of a 
corporation, or organization organized under the laws of a foreign 
state if either its principal place of business is outside the United 
States or its equity securities are primarily traded on one or more 
foreign exchanges.
    (b) Notwithstanding paragraph (a) of this section, any branch, 
partnership, group or sub-group, association, estate, trust, 
corporation or division of a corporation, or organization that 
demonstrates that a majority of the equity interest in such entity is 
ultimately owned by U.S. nationals is not a foreign entity.


Sec.  802.220   Foreign government.

    The term foreign government means any government or body exercising 
governmental functions, other than the U.S. Government or a subnational 
government of the United States. The term includes, but is not limited 
to, national and subnational governments, including their respective 
departments, agencies, and instrumentalities.


Sec.  802.221   Foreign national.

    The term foreign national means any individual other than a U.S. 
national.


Sec.  802.222   Foreign person.

    (a) The term foreign person means:
    (1) Any foreign national, foreign government, or foreign entity; or
    (2) Any entity over which control is exercised or exercisable by a 
foreign national, foreign government, or foreign entity.
    (b) Examples:

    (1) Example 1. Corporation A is organized under the laws of a 
foreign state and is engaged in business only outside the United 
States. All of its shares are held by Corporation X, which solely 
controls Corporation A. Corporation X is organized in the United 
States and is wholly owned and controlled by U.S. nationals. 
Assuming no other relevant facts, Corporation A, although organized 
and only operating outside the United States, is not a foreign 
person.
    (2) Example 2. Same facts as in the first sentence of Example 1 
of this section. The

[[Page 50227]]

government of the foreign state under whose laws Corporation A is 
organized exercises control over Corporation A because a law 
establishing Corporation A gives the foreign state the right to 
appoint Corporation A's board members. Corporation A is a foreign 
person.
    (3) Example 3. Corporation A is organized in the United States, 
is engaged in interstate commerce in the United States, and is 
controlled by Corporation X. Corporation X is organized under the 
laws of a foreign state, its principal place of business is located 
outside the United States, and 50 percent of its shares are held by 
foreign nationals and 50 percent of its shares are held by U.S. 
nationals. Both Corporation A and Corporation X are foreign persons.
    (4) Example 4. Corporation A is organized under the laws of a 
foreign state and is owned and controlled by a foreign national. A 
branch of Corporation A engages in interstate commerce in the United 
States. Corporation A (including its branch) is a foreign person.
    (5) Example 5. Corporation A is a corporation organized under 
the laws of a foreign state and its principal place of business is 
located outside the United States. Forty-five percent of the voting 
interest in Corporation A is owned in equal shares by numerous 
unrelated foreign investors, none of whom has control. The foreign 
investors have no formal or informal arrangement to act in concert 
with regard to Corporation A with any other holder of voting 
interest in Corporation A. Corporation A demonstrates that the 
remainder of the voting interest in Corporation A is held by U.S. 
nationals. Assuming no other relevant facts, Corporation A is not a 
foreign person.
    (6) Example 6. Same facts as Example 5 of this section, except 
that one of the foreign investors controls Corporation A. Assuming 
no other relevant facts, Corporation A is not a foreign entity 
pursuant to Sec.  802.219(b), but it is a foreign person because it 
is controlled by a foreign person.


Sec.  802.223  Hold.

    The terms hold(s) and holding mean legal or beneficial ownership, 
whether direct or indirect, whether through fiduciaries, agents, or 
other means.


Sec.  802.224  Housing unit.

    The term housing unit means a single family house, townhome, mobile 
home or trailer, apartment, group of rooms, or single room that is 
occupied as a separate living quarters, or, if vacant, is intended for 
occupancy as a separate living quarters.


Sec.  802.225  Lead agency.

    The term lead agency means the Department of the Treasury and any 
other agency designated by the Chairperson of the Committee to have 
primary responsibility, on behalf of the Committee, for the specific 
activity for which the Chairperson designates it as a lead agency, 
including without limitation all or a portion of an assessment, a 
review, an investigation, or the negotiation or monitoring of a 
mitigation agreement or condition.


Sec.  802.226  Lease.

    (a) The term lease means an arrangement conveying a possessory 
interest in real estate, short of ownership, to a person for a 
specified time and in exchange for consideration. This term includes 
subleases.
    (b) Examples:

    (1) Example 1. Foreign person A enters into an arrangement with 
a neighbor that allows the foreign person to use a private road 
running across the neighbor's land. The road will remain owned by 
the neighbor following the arrangement. The neighbor will also 
retain physical possession of his land despite the foreign person 
having permission to traverse the land while using the road. The 
arrangement does not convey a possessory interest in real estate. 
Assuming no other relevant facts, the foreign person has not entered 
into a lease.
    (2) Example 2. Same facts as Example 1 of this section, except 
that the foreign person's arrangement with the neighbor gives the 
foreign person the exclusive right to occupy a portion of the 
neighbor's land and attach fixtures to the surface, in exchange for 
a fee for a specified period of time. The foreign person can 
unilaterally adjust, remove, and make other changes to the fixtures. 
The foreign person has entered into a lease.

    Note 1 to Sec.  802.226: See Sec.  800.249(a)(5) for certain 
long-term leases and concessions that could be subject to part 800 
of this title.

Sec.  802.227  Maritime port.

    The term maritime port means any:
    (a) Strategic seaport within the National Port Readiness Network, 
as identified by the Department of Transportation Maritime 
Administration; or
    (b) Top 25 tonnage, container, or dry bulk port according to the 
most recent annual report submitted to Congress by the U.S. Department 
of Transportation, Bureau of Transportation Statistics pursuant to 49 
U.S.C. 6314.


Sec.  802.228   Military installation.

    The term military installation means any site that meets the 
following category descriptions, as identified in the list at Appendix 
A to this part:
    (a) Active Air Force ballistic missile fields;
    (b) Air Force bases administering active Air Force ballistic 
missile fields;
    (c) Air Force bases and major annexes thereof containing a unit 
from the Air Force Air Combat Command;
    (d) Air Force bases and major annexes thereof containing an Air 
Force research laboratory or test unit and associated sites;
    (e) Air Force bases and major annexes thereof containing a unit of 
the North American Aerospace Defense Command and its regions;
    (f) Air Force bases and Air Force stations and major annexes 
thereof containing satellite, telemetry, tracking or commanding 
systems;
    (g) Army bases, ammunition plants, centers of excellence and 
research laboratories and major annexes thereof, excluding depots, 
arsenals and airfields that are not collocated with an Army 
installation included in this section;
    (h) Army combat training centers located in the continental United 
States;
    (i) Headquarters of the Office of the Secretary of Defense and 
Defense Advanced Research Projects Agency and major offices and annexes 
thereof;
    (j) Long range radar sites and major annexes thereof in any of the 
following states: Alaska, North Dakota, California, or Massachusetts;
    (k) Major range and test facility base activities as defined in 10 
U.S.C. 196;
    (l) Marine Corps bases and air stations and major annexes thereof, 
excluding detachments, installations, logistics battalions, recruit 
depots, and support facilities;
    (m) Military ranges as defined in 10 U.S.C. 101(e)(1) owned by the 
U.S. Navy or U.S. Air Force, or joint forces training centers that are 
located in any of the following states: Oregon, Nevada, Idaho, 
Wisconsin, Mississippi, North Carolina, or Florida;
    (n) Naval bases and air stations containing squadrons and 
supporting commands of the Submarine Force Atlantic or Submarine Force 
Pacific and major offices thereof;
    (o) Naval surface, air, and undersea warfare centers and research 
laboratories and major annexes thereof; and
    (p) U.S. Navy off-shore range complexes and off-shore operating 
areas.


Sec.  802.229  Minimum excepted ownership.

    The term minimum excepted ownership means:
    (a) With respect to an entity whose equity securities are primarily 
traded on an exchange in an excepted foreign state or the United 
States, a majority of its voting interest, the right to a majority of 
its profits, and the right in the event of dissolution to a majority of 
its assets; and
    (b) With respect to an entity whose equity securities are not 
primarily traded on an exchange in an excepted foreign state or the 
United States, 90 percent or more of its voting interest, the right to 
90 percent and more of its profits, or the right in the event of 
dissolution to 90 percent or more of its assets.

[[Page 50228]]

Sec.  802.230  Parent.

    (a) The term parent means a person who or which directly or 
indirectly:
    (1) Holds or will hold at least 50 percent of the outstanding 
voting interest in an entity; or
    (2) Holds or will hold the right to at least 50 percent of the 
profits of an entity, or has or will have the right in the event of the 
dissolution to at least 50 percent of the assets of that entity.
    (b) Any entity that meets the conditions of paragraph (a)(1) or (2) 
of this section with respect to another entity (i.e., the intermediate 
parent) is also a parent of any other entity of which the intermediate 
parent is a parent.
    (c) Examples:

    (1) Example 1. Corporation P holds 50 percent of the voting 
interest in Corporations R and S. Corporation R holds 40 percent of 
the voting interest in Corporation X; Corporation S holds 50 percent 
of the voting interest in Corporation Y, which in turn holds 50 
percent of the voting interest in Corporation Z. Corporation P is a 
parent of Corporations R, S, Y, and Z, but not of Corporation X. 
Corporation S is a parent of Corporation Y and Z, and Corporation Y 
is a parent of Corporation Z.
    (2) Example 2. Corporation A holds warrants which when exercised 
will entitle it to vote 50 percent of the outstanding shares of 
Corporation B. Corporation A is a parent of Corporation B.


Sec.  802.231  Party to a transaction.

    (a) The term party to a transaction means:
    (1) In the case of a purchase, the person acquiring the ownership 
interest, and the person from which such ownership interest is 
acquired, and the entity whose ownership interest is being acquired, 
without regard to any person providing brokerage or underwriting 
services for the transaction;
    (2) In the case of a lease, the person acquiring the possessory 
interest, and the person from whom such possessory interest is 
acquired;
    (3) In the case of a concession, the person receiving the right to 
use the covered real estate, and the U.S. public entity;
    (4) In the case of a change in rights that a person has with 
respect to covered real estate obtained through a purchase, lease, or 
concession, the person whose rights change as a result of the 
transaction and the person conveying those rights; and
    (5) In the case of a transfer, agreement, arrangement, or any other 
type of transaction, the structure of which is designed or intended to 
evade or circumvent the application of section 721, any person that 
participates in such transfer, agreement, arrangement, or other type of 
transaction.
    (6) In all cases, each party that submitted a declaration or notice 
to the Committee regarding a transaction.
    (b) For purposes of section 721(l), the term party to a transaction 
includes any affiliate of any party described in paragraphs (a)(1) 
through (6) of this section that the Committee, or a lead agency acting 
on behalf of the Committee, determines is relevant to mitigating a risk 
to the national security of the United States.


Sec.  802.232  Person.

    The term person means any individual or entity.


Sec.  802.233  Property right.

    The term property right means, with respect to real estate, any of 
the following rights or abilities, whether or not exercised, whether or 
not shared concurrently with any other person, and whether or not the 
underlying real estate is subject to an easement or other encumbrance:
    (a) To physically access the real estate;
    (b) To exclude others from physical access to the real estate;
    (c) To improve or develop the real estate; or
    (d) To attach fixed or immovable structures or objects to the real 
estate.


Sec.  802.234  Purchase.

    (a) The term purchase means an arrangement conveying an ownership 
interest of real estate to a person in exchange for consideration.
    (b) Example: Person A, a foreign person, acquires covered real 
estate from Person B, a U.S. national, in exchange for land and 
services. Person A was under no obligation to pay money to Person B in 
order to acquire the covered real estate. Person A has purchased the 
covered real estate because the arrangement was predicated on 
consideration in the form of land and services.


Sec.  802.235  Real estate.

    The term real estate means any land, including subsurface and 
submerged, or structure attached to land, including any building or any 
part thereof, that is located in the United States.


 Sec.  802.236  Section 721.

    The term section 721 means section 721 of title VII of the Defense 
Production Act of 1950, 50 U.S.C. 4565, as amended.


Sec.  802.237  United States.

    The term United States or U.S. means the United States of America, 
the States of the United States, the District of Columbia, and any 
commonwealth, territory, dependency, or possession of the United 
States, or any subdivision of the foregoing, and includes the Outer 
Continental Shelf, as defined in the Outer Continental Shelf Lands Act, 
as amended (43 U.S.C. 1331(a)). For purposes of these regulations and 
their examples, an entity organized under the laws of the United States 
of America, one of the States, the District of Columbia, or a 
commonwealth, territory, dependency, or possession of the United States 
is an entity organized ``in the United States.''


Sec.  802.238  Urban cluster.

    The term urban cluster means a statistical geographic area as 
identified in the most recent U.S. Census consisting of a densely 
settled core created from census tracts or blocks and contiguous 
qualifying territory that together have at least 2,500 individuals but 
fewer than 50,000 individuals.

    Note 1 to Sec.  802.238: The Census Bureau maintains an 
interactive map on its website allowing the user to filter by 
various criteria, including urban clusters and urbanized areas 
according to the most recent U.S. Census.

Sec.  802.239  Urbanized area.

    The term urbanized area means a statistical geographic area as 
identified in the most recent U.S. Census consisting of a densely 
settled core created from census tracts or blocks and contiguous 
qualifying territory that together have a minimum population of at 
least 50,000 individuals.

    Note 1 to Sec.  802.239: See note to definition in Sec.  
802.238.

Sec.  802.240  U.S. business.

    The term U.S. business means any entity, irrespective of the 
nationality of the persons that control it, engaged in interstate 
commerce in the United States.

    Note 1 to Sec.  802.240:  See examples to definition in Sec.  
800.252.

Sec.  802.241  U.S. national.

    The term U.S. national means an individual who is a U.S. citizen or 
an individual who, although not a U.S. citizen, owes permanent 
allegiance to the United States.


Sec.  802.242  U.S. public entity.

    The term U.S. public entity means the U.S. Government, a 
subnational government of the United States, or any other body 
exercising governmental functions of the United States, including 
without limitation air and maritime port authorities. The term 
includes, but is not limited to, the respective departments, agencies, 
and

[[Page 50229]]

instrumentalities of the U.S. Government and the subnational 
governments of the United States.


Sec.  802.243  Voting interest.

    The term voting interest means any interest in an entity that 
entitles the owner or holder of that interest to vote for the election 
of directors of the entity (or, with respect to unincorporated 
entities, individuals exercising similar functions) or to vote on other 
matters affecting the entity.

Subpart C--Coverage


Sec.  802.301  Transactions that are covered real estate transactions.

    Transactions that are covered real estate transactions include, 
without limitation:
    (a) A transaction that meets the criteria of Sec.  802.212, 
including where a foreign person (other than an excepted real estate 
investor) enters into a purchase or lease of, or obtains a concession 
to, covered real estate either directly or indirectly. (See the example 
in Sec.  802.301(h)(1).)
    (b) A purchase by a foreign person of less than full ownership of 
covered real estate that nevertheless affords the foreign person at 
least three property rights with respect to the covered real estate. 
(See the example in Sec.  802.301(h)(2).)
    (c) A purchase or lease by, or concession to, a foreign person of 
real estate, a portion of which is covered real estate with respect to 
which the foreign person has at least three property rights. (See the 
example in Sec.  802.301(h)(3).)
    (d) A purchase or lease by, or concession to, a foreign person of a 
portion of covered real estate with respect to which the foreign person 
has at least three property rights. (See the example in Sec.  
802.301(h)(4).)
    (e) A purchase, lease, or assignment of a concession, of covered 
real estate that meets the criteria of Sec.  802.212 by one foreign 
person from another foreign person. (See the examples in Sec.  
802.301(h)(5) and (6).)
    (f) A change in the rights that a foreign person has with respect 
to covered real estate obtained through a purchase, lease, or 
concession, if that change affords a foreign person at least three 
property rights with respect to the covered real estate.
    (g) A transaction the structure of which is designed or intended to 
evade or circumvent the application of this part.
    (h) Examples:

    (1) Example 1. Corporation A, a foreign person, acquires 
Corporation X, a business incorporated in the United States. As a 
result, Corporation X is a foreign person. Subsequently, Corporation 
X purchases real estate that is in close proximity to a military 
installation identified in part 1 or part 2 of Appendix A to this 
part and obtains all of the property rights with respect to such 
real estate. Assuming no other relevant facts, the proposed 
transaction is a covered real estate transaction.
    (2) Example 2. Corporation A, a foreign person, together with 
Corporation B, a U.S. business, purchases real estate that is in 
close proximity to a military installation identified in part 1 or 
part 2 of Appendix A to this part. Neither party has full ownership; 
rather, the title to the real estate is held by the two parties 
jointly. Corporation A is afforded at least three property rights as 
a result of the transaction. Assuming no other relevant facts, the 
proposed transaction is a covered real estate transaction.
    (3) Example 3. Corporation A, a U.S. business, purchases real 
estate. Half of such real estate is covered real estate that is 
located in close proximity to a military installation identified in 
part 1 or part 2 of Appendix A to this part. The other half of the 
real estate purchased by Corporation A is not located in close 
proximity to any such military installation. Assuming no other 
relevant facts, Corporation A's purchase is a covered real estate 
transaction.
    (4) Example 4. Corporation A, a U.S. business, purchases covered 
real estate that is entirely located in close proximity to a 
military installation identified in part 1 or part 2 of Appendix A 
to this part. Corporation B, a foreign person, leases from 
Corporation A, a part of that real estate. Corporation B is entitled 
to at least three property rights with respect to the real estate as 
a result of the transaction. Assuming no other relevant facts, 
Corporation B's lease is a covered real estate transaction.
    (5) Example 5. Corporation A, a foreign person, purchases 
covered real estate and is afforded three property rights with 
respect to the covered real estate. In a subsequent transaction, 
Corporation B, another foreign person, leases the covered real 
estate from Corporation A, and is also afforded three property 
rights. Assuming no other relevant facts, the transaction is a 
covered real estate transaction.
    (6) Example 6. Corporation A, a foreign person, purchases 
covered real estate that is undeveloped. Corporation A's only asset 
in the United States is the covered real estate, and Corporation A 
is not a U.S. business. In a subsequent transaction, Corporation B, 
also a foreign person, purchases 100 percent of the shares of 
Corporation A. Assuming no other relevant facts, the transaction is 
a covered real estate transaction.


Sec.  802.302  Transactions that are not covered real estate 
transactions.

    Transactions that are not covered real estate transactions include, 
without limitation:
    (a) A transaction that meets the definition of excepted real estate 
transaction in Sec.  802.217;
    (b) A transaction that is not a covered transaction under part 800 
of this title where a foreign person acquires an interest in an entity 
that holds covered real estate, and the foreign person does not have 
three or more of the property rights with respect to the covered real 
estate. (See the example in Sec.  802.302(g).)
    (c) An acquisition of securities by a person acting as a securities 
underwriter, in the ordinary course of business and in the process of 
underwriting.
    (d) An acquisition pursuant to a condition in a contract of 
insurance relating to fidelity, surety, or casualty obligations if the 
contract was made by an insurer in the ordinary course of business.
    (e) A purchase or lease by, or concession to, a foreign person of 
covered real estate that does not afford the foreign person at least 
three of the property rights with respect to the covered real estate.
    (f) A change in the rights that a foreign person has with respect 
to covered real estate, if that change could not result in the foreign 
person being afforded at least three of the property rights with 
respect to the covered real estate.
    (g) Example: Corporation A, a U.S. business, purchases covered real 
estate. In a subsequent transaction, Corporation B, a foreign person, 
purchases 10 percent of the shares of Corporation A, which affords 
Corporation B the right to access the covered real estate, but none of 
the other property rights specified in Sec.  802.233. The transaction 
is not a covered real estate transaction because Corporation B has not 
been afforded at least three of the property rights with respect to the 
covered real estate.


Sec.  802.303  Lending transactions.

    (a) The extension of a mortgage, loan, or similar financing 
arrangement by a foreign person to another person for the purpose of 
the purchase, lease, or concession of covered real estate shall not, by 
itself, constitute a covered real estate transaction.
    (1) The Committee will accept notices or declarations concerning a 
mortgage, loan, or similar financing arrangement that does not, by 
itself, constitute a covered real estate transaction only at the time 
that, because of imminent or actual default or other condition, there 
is a significant possibility that the foreign person may purchase or 
lease, or be granted a concession to, the real estate as a result of 
the default or other condition in a manner that would constitute a 
covered real estate transaction.
    (2) Where the Committee accepts a notice or declarations concerning 
a mortgage, loan, or similar financing

[[Page 50230]]

arrangement pursuant to paragraph (a)(1) of this section, and a party 
to the transaction is a foreign person that makes mortgages or loans in 
the ordinary course of business, the Committee will take into account 
whether the foreign person has made any arrangements to transfer the 
ownership and property rights over the covered real estate to U.S. 
persons for purposes of determining whether such mortgage, loan, or 
financing arrangement constitutes a covered real estate transaction.
    (b) Notwithstanding paragraph (a) of this section, a mortgage, 
loan, or similar financing arrangement through which a foreign person 
acquires property rights over covered real estate may constitute a 
covered real estate transaction to the extent that the arrangement 
would constitute a purchase, lease, or concession under this part.
    (c) Example: Corporation A, a foreign bank, makes a secured loan to 
Corporation B in order for Corporation B to purchase a building that 
constitutes covered real estate. The collateral for the loan is the 
building that Corporation B is purchasing. Corporation B defaults on 
the loan. Assuming no other relevant facts, the Committee would accept 
a notice or declaration of the imminent default or default transferring 
ownership of the building to Corporation A, which would constitute a 
covered real estate transaction.


Sec.  802.304  Timing rule for a contingent equity interest.

    (a) For purposes of determining whether to include the rights that 
a holder of contingent equity interest will acquire upon conversion of, 
or exercise of a right provided by, those interests in the Committee's 
analysis of whether a notified transaction is a covered real estate 
transaction, the Committee will consider factors that include:
    (1) The imminence of conversion or satisfaction of contingent 
conditions;
    (2) Whether conversion or satisfaction of contingent conditions 
depends on factors within the control of the acquiring party; and
    (3) Whether the amount of interest and the rights that would be 
acquired upon conversion or satisfaction of contingent conditions can 
be reasonably determined at the time of acquisition.
    (b) When the Committee, applying paragraph (a) of this section, 
determines that the rights that the holder will acquire upon conversion 
or satisfaction of contingent condition will not be included in the 
Committee's analysis of whether a notified transaction is a covered 
real estate transaction, the Committee will disregard the contingent 
equity interest for purposes of that transaction except to the extent 
that they convey immediate rights to the holder with respect to the 
entity that issued the interest.

Subpart D--Declarations


Sec.  802.401  Procedures for declarations.

    (a) A party or parties may submit a voluntary declaration of a 
covered real estate transaction by submitting electronically the 
information set out in Sec.  802.402, including the certifications 
required thereunder, to the Staff Chairperson in accordance with the 
submission instructions on the Committee's section of the Department of 
the Treasury website at https://home.treasury.gov/policy-issues/international/the-committee-on-foreign-investment-in-the-united-states-cfius.
    (b) No communications other than those described in paragraph (a) 
of this section shall constitute the submission of a declaration for 
purposes of section 721.
    (c) Information and other documentary material submitted to the 
Committee pursuant to this section shall be considered to have been 
filed with the President or the President's designee for purposes of 
section 721(c) and Sec.  802.802.
    (d) Persons filing a declaration shall, during the time that the 
matter is pending before the Committee, promptly advise the Staff 
Chairperson of any material changes in plans, facts, or circumstances 
addressed in the declaration, and any material change in information 
provided or required to be provided to the Committee under Sec.  
802.402. Unless the Committee rejects the declaration on the basis of 
such material changes in accordance with Sec.  802.404(a)(2)(i), such 
changes shall become part of the declaration filed by such persons 
under Sec.  802.401, and the certification required under Sec.  
802.403(d) shall apply to such changes.
    (e) Parties to a covered real estate transaction that have filed 
with the Committee a written notice regarding a transaction pursuant to 
Sec.  802.501 may not submit to the Committee a declaration regarding 
the same transaction or a substantially similar transaction without the 
written approval of the Staff Chairperson.


Sec.  802.402  Contents of declarations.

    (a) The party or parties submitting a voluntary declaration of a 
covered real estate transaction pursuant to Sec.  802.401 shall provide 
the information set out in this section, which must be accurate and 
complete with respect to the party or parties filing the voluntary 
declaration and to the transaction. (See also paragraphs (d), (e), and 
(f) of this section regarding U.S. public entities.)
    (b) If fewer than all the parties to a transaction submit a 
declaration, the Committee may, at its discretion, request that the 
parties to the transaction file a written notice of the transaction 
under Sec.  802.501, if the Staff Chairperson determines that the 
information provided by the submitting party or parties in the 
declaration is insufficient for the Committee to assess the 
transaction.
    (c) Subject to paragraph (e) of this section, a declaration 
submitted pursuant to Sec.  802.401 shall describe or provide, as 
applicable:
    (1) The name of the foreign person(s) and the current holder(s) of 
interest in the real estate that are parties to, or, in applicable 
cases, the subject of the transaction, as well as the name, telephone 
number, and email address of the primary point of contact for each 
party.
    (2) The following information regarding the transaction in 
question, including:
    (i) A brief description of the rationale for and nature of the 
transaction, including its structure (e.g., purchase, lease, or 
concession);
    (ii) The total transaction value in U.S. dollars;
    (iii) The actual or expected completion date of the transaction;
    (iv) All sources of financing for the transaction and any real 
estate agents/brokers involved; and
    (v) A copy of the definitive documentation of the transaction, or 
if none exists, the document establishing the material terms of the 
transaction.
    (3) The following information regarding the real estate that is the 
subject of the transaction:
    (i) The location, by address and geographic coordinates in decimal 
degrees to the 4th digit, of the real estate that is the subject of the 
transaction;
    (ii) The name(s) of the relevant airport, maritime port, military 
installation, or any other facility or property of the U.S. Government 
as identified in this part, based on the location of the real estate 
that is the subject of the transaction.
    (iii) A description of the real estate that is the subject of the 
transaction including the approximate size (in acres, feet or other 
appropriate measurement); nature of the real estate (e.g., zoning type 
and the major topographical or other features of the real estate); 
current use of the real estate; plans with respect to the real estate; 
and structures that are or will be on the real estate; and

[[Page 50231]]

    (iv) A description of any licenses, permits, easements, 
encumbrances, or other grants or approvals associated with the real 
estate.
    (4) A statement as to whether the foreign person will have any of 
the following rights or abilities with respect to the real estate as a 
result of the transaction:
    (i) To physically access to the real estate;
    (ii) To exclude others from physical access to the real estate;
    (iii) To improve or develop the real estate; or
    (iv) To attach fixed or immovable structures or objects to the real 
estate.
    (5) The name of the ultimate parent of the foreign person.
    (6) The principal place of business and address of the foreign 
person, ultimate parent and ultimate owner of such parent.
    (7) A complete pre-transaction organizational chart (and post-
transaction, if different) including, without limitation, information 
that identifies the name, principal place of business and place of 
incorporation or other legal organization (for entities), and 
nationality (for individuals), and ownership percentage (expressed in 
terms of both voting and economic interest, if different) for each of 
the following:
    (i) The immediate parent, the ultimate parent, and each 
intermediate parent, if any, of each foreign person that is a party to 
the transaction;
    (ii) Where the ultimate parent is a private company, the ultimate 
owner(s) of such parent; and
    (iii) Where the ultimate parent is a public company, any 
shareholder with an interest of greater than five percent in such 
parent.
    (8) Information regarding all foreign government ownership in the 
foreign person's ownership structure, including nationality and 
percentage of ownership, as well as any rights that a foreign 
government holds, directly or indirectly, with respect to the foreign 
person.
    (9) With respect to the foreign person that is party to the 
transaction and any of its parents, as applicable, a brief summary of 
their respective business activities.
    (10) A statement as to whether a party to the transaction is 
stipulating that the transaction is a covered real estate transaction 
and a description of the basis for the stipulation.
    (11) A statement as to whether any party to the transaction has 
been party to another transaction previously notified or submitted to 
the Committee, and the case number assigned by the Committee regarding 
such transaction(s).
    (12) A statement (including relevant jurisdiction and criminal case 
law number or legal citation) as to whether the holder of the real 
estate, the foreign person, or any parent or subsidiary of the foreign 
person has been convicted in the last ten years of a crime in any 
jurisdiction.
    (d) Each party submitting a declaration shall provide a 
certification of the information contained in the declaration 
consistent with Sec.  802.203. A sample certification may be found on 
the Committee's section of the Department of the Treasury website at 
https://home.treasury.gov/policy-issues/international/the-committee-on-foreign-investment-in-the-united-states-cfius.
    (e) A party that offers a stipulation pursuant to paragraph (c)(10) 
of this section acknowledges that the Committee and the President are 
entitled to rely on such stipulation in determining whether the 
transaction is a covered real estate transaction for the purposes of 
section 721 and all authorities thereunder, and waives the right to 
challenge any such determination. Neither the Committee nor the 
President is bound by any such stipulation, nor does any such 
stipulation limit the ability of the Committee or the President to act 
on any authority provided under section 721 with respect to any covered 
real estate transaction.
    (f) In the case of a transaction where a U.S. public entity is a 
party to the transaction, the other party or parties to the transaction 
shall provide the information set out in this section with respect to 
itself and, to the extent known or reasonably available to it, with 
respect to the U.S. public entity.


Sec.  802.403  Beginning of 30-day assessment period.

    (a) Upon receipt of a declaration submitted pursuant to Sec.  
802.401, the Staff Chairperson shall promptly inspect the declaration 
and shall promptly notify in writing all parties to a transaction that 
have submitted a declaration that:
    (1) The Staff Chairperson has accepted the declaration and 
circulated the declaration to the Committee, and the date on which the 
assessment described in paragraph (b) of this section begins; or
    (2) The Staff Chairperson has determined not to accept the 
declaration and circulate the declaration to the Committee because the 
declaration is incomplete, and an explanation of the material respects 
in which the declaration is incomplete.
    (b) A 30-day period for assessment of a covered real estate 
transaction that is the subject of a declaration shall commence on the 
date on which the declaration is received by the Committee from the 
Staff Chairperson. Such period shall end no later than the thirtieth 
day after it has commenced, or if the thirtieth day is not a business 
day, no later than the next business day after the thirtieth day.
    (c) During the 30-day assessment period, the Staff Chairperson may 
invite the parties to a covered real estate transaction to attend a 
meeting with the Committee staff to discuss and clarify issues 
pertaining to the transaction.
    (d) If the Committee notifies the parties to a transaction that 
have submitted a declaration pursuant to Sec.  802.401 that the 
Committee intends to conclude all action under section 721 with respect 
to that transaction, each party that has submitted additional 
information subsequent to the original declaration shall file a 
certification as described in Sec.  802.203. A sample certification may 
be found on the Committee's section of the Department of the Treasury 
website at https://home.treasury.gov/policy-issues/international/the-committee-on-foreign-investment-in-the-united-states-cfius.
    (e) If a party fails to provide the certification required under 
paragraph (d) of this section, the Committee may, at its discretion, 
take any of the actions under Sec.  802.405.


Sec.  802.404  Rejection, disposition, or withdrawal of declarations.

    (a) The Committee, acting through the Staff Chairperson, may:
    (1) Reject any declaration that does not comply with Sec.  802.402 
and so inform the parties promptly in writing;
    (2) Reject any declaration at any time, and so inform the parties 
promptly in writing, if, after the declaration has been submitted and 
before the Committee has taken one of the actions specified in Sec.  
802.405:
    (i) There is a material change in the covered real estate 
transaction as to which a declaration has been submitted; or
    (ii) Information comes to light that contradicts material 
information provided in the declaration by the party (or parties); or
    (3) Reject any declaration at any time after the declaration has 
been submitted, and so inform the parties promptly in writing, if the 
party (or parties) that submitted the declaration does not provide 
follow-up information requested by the Staff Chairperson within two 
business days of the request, or within a longer time frame if the

[[Page 50232]]

party (or parties) so request in writing and the Staff Chairperson 
grants that request in writing.
    (b) The Staff Chairperson shall notify the parties that submitted a 
declaration when the Committee has found that the transaction that is 
the subject of a declaration is not a covered real estate transaction.
    (c) Parties to a transaction that have submitted a declaration 
pursuant to Sec.  802.401 may request in writing, at any time prior to 
the Committee taking action under Sec.  802.405 that such declaration 
be withdrawn. Such request shall be directed to the Staff Chairperson 
and shall state the reasons why the request is being made and state 
whether the transaction that is the subject of the declaration is being 
fully and permanently abandoned. An official of the Department of the 
Treasury will promptly advise the parties to the transaction in writing 
of the Committee's decision.
    (d) The Committee may not request or recommend that a declaration 
be withdrawn and refiled, except to permit parties to a covered real 
estate transaction to correct material errors or omissions, or describe 
material changes to the transaction, in the declaration submitted with 
respect to that covered real estate transaction.
    (e) A party (or parties) may not submit more than one declaration 
for the same or a substantially similar transaction without approval 
from the Staff Chairperson.

    Note 1 to Sec.  802.404:  See Sec.  802.401(e) regarding the 
prohibition on submitting a declaration regarding the same 
transaction or a substantially similar transaction for which a 
written notice has been filed without the approval of the Staff 
Chairperson.

Sec.  802.405  Committee actions.

    (a) Upon receiving a declaration submitted pursuant to Sec.  
802.401 with respect to a covered real estate transaction, the 
Committee may, at the discretion of the Committee:
    (1) Request that the parties to the transaction file a written 
notice pursuant to subpart E;
    (2) Inform the parties to the transaction that the Committee is not 
able to conclude action under section 721 with respect to the 
transaction on the basis of the declaration and that the parties may 
file a written notice pursuant to subpart E of this part to seek 
written notification from the Committee that the Committee has 
concluded all action under section 721 with respect to the transaction;
    (3) Initiate a unilateral review of the transaction under Sec.  
802.501(c); or
    (4) Notify the parties in writing that the Committee has concluded 
all action under section 721 with respect to the transaction.
    (b) The Committee shall take action under paragraph (a) of this 
section within the time period set forth in Sec.  802.403(b).

Subpart E--Notices


Sec.  802.501  Procedures for notices.

    (a) A party or parties to a proposed or completed real estate 
transaction may file a voluntary notice of the transaction with the 
Committee. Voluntary notice to the Committee is filed by sending an 
electronic copy of the notice that includes, in English, the 
information set out in Sec.  802.502, including the certification 
required under paragraph (h) of that section. For electronic submission 
instructions, see the Committee's section of the Department of the 
Treasury website, currently available at https://home.treasury.gov/policy-issues/international/the-committee-on-foreign-investment-in-the-united-states-cfius.
    (b) If the Committee determines that a covered real estate 
transaction for which no voluntary notice has been filed under 
paragraph (a) of this section may be a covered real estate transaction 
and may raise national security considerations, the Staff Chairperson, 
acting on the recommendation of the Committee, may request the parties 
to the transaction to provide to the Committee the information 
necessary to determine whether the transaction is a covered real estate 
transaction, and if the Committee determines that the transaction is a 
covered real estate transaction, to file a notice under paragraph (a) 
of such covered real estate transaction.
    (c) With respect to any covered real estate transaction:
    (1) Subject to paragraph (c)(2) of this section, any member of the 
Committee, or his designee at or above the Under Secretary or 
equivalent level, may file an agency notice to the Committee through 
the Staff Chairperson regarding a transaction if:
    (i) That member has reason to believe that the transaction is a 
covered real estate transaction and may raise national security 
considerations and:
    (A) The Committee has not informed the parties to such transaction 
in writing that the Committee has concluded all action under section 
721 with respect to such transaction; and
    (B) The President has not announced a decision not to exercise the 
President's authority under section 721(d) with respect to such 
transaction; or
    (ii) The transaction is a covered real estate transaction and:
    (A) The Committee has informed the parties to such transaction in 
writing that the Committee has concluded all action under section 721 
with respect to such transaction, or the President has announced a 
decision not to exercise the President's authority under section 721(d) 
with respect to such transaction; and
    (B) Either:
    (1) A party to such transaction submitted false or misleading 
material information to the Committee in connection with the 
Committee's consideration of such transaction or omitted material 
information, including material documents, from information submitted 
to the Committee; or
    (2) A party to such transaction or the entity resulting from 
consummation of such transaction materially breaches a mitigation 
agreement or condition described in section 721(l)(3)(A), such breach 
is certified to the Committee by the lead department or agency 
monitoring and enforcing such agreement or condition as a material 
breach, and the Committee determines that there are no other adequate 
and appropriate remedies or enforcement tools available to address such 
breach.
    (2)(i) That is an investment where a foreign person is not an 
excepted real estate investor due to the application of Sec.  
802.216(d), any member of the Committee, or his designee at or above 
the Under Secretary or equivalent level, may file an agency notice to 
the Committee through the Staff Chairperson regarding such investment 
if:
    (A) That member has reason to believe that the transaction is a 
covered real estate transaction and may raise national security 
considerations;
    (B) The Committee has not informed the parties to such transaction 
in writing that the Committee has concluded all action under section 
721 with respect to such transaction; and
    (C) The President has not announced a decision not to exercise the 
President's authority under section 721(d) with respect to such 
transaction.
    (ii) No notice filed pursuant to this paragraph (c)(2) shall be 
made with respect to a transaction more than one year after the 
completion date of the transaction, unless the Chairperson of the 
Committee determines, in consultation with other members of the 
Committee, that because the foreign person no longer meets all the 
criteria set forth in Sec.  802.216(a)(1), (2), or (3)(i) through (iii) 
the transaction may threaten to impair the national security of the 
United States, and in no event

[[Page 50233]]

shall an agency notice under this paragraph be made with respect to 
such a transaction more than three years after the completion date of 
the transaction.
    (d) Notices filed under paragraph (c) of this section are deemed 
accepted upon their receipt by the Staff Chairperson. No agency notice 
under paragraph (c)(1) of this section shall be made with respect to a 
real estate transaction more than three years after the completion date 
of the transaction, unless the Chairperson of the Committee, in 
consultation with other members of the Committee, files such an agency 
notice.
    (e) No communications other than those described in paragraphs (a) 
and (c) of this section shall constitute the filing or submitting of a 
notice for purposes of section 721.
    (f) Upon receipt of the electronic copy of a notice filed under 
paragraph (a) of this section, including the certification required by 
Sec.  802.502(h), the Staff Chairperson shall promptly inspect such 
notice for completeness.
    (g) Parties to a real estate transaction are encouraged to consult 
with the Committee in advance of filing a notice and, in appropriate 
cases, to file with the Committee a draft notice or other appropriate 
documents to aid the Committee's understanding of the transaction and 
to provide an opportunity for the Committee to request additional 
information to be included in the notice. Any such pre-notice 
consultation should take place, or any draft notice should be provided, 
at least five business days before the filing of a voluntary notice. 
All information and documentary material made available to the 
Committee pursuant to this paragraph shall be considered to have been 
filed with the President or the President's designee for purposes of 
section 721(c) and Sec.  802.802.
    (h) Information and other documentary material provided by any 
party to the Committee after the filing of a voluntary notice under 
this section shall be part of the notice, and shall be subject to the 
certification requirements of Sec.  802.502(m).
    (i) For any voluntarily submitted draft or formal written notice 
that includes a stipulation pursuant to section Sec.  802.502(j) that a 
transaction is a covered real estate transaction, the Committee shall 
provide comments on a draft or formal written notice or accept a formal 
written notice of a covered transaction not later than the date that is 
10 business days after the date of submission of the draft or formal 
written notice.
    (j) No party to a transaction may file a notice pursuant to 
paragraph (a) of this section if the transaction has been subject to a 
declaration submitted pursuant to subpart D and the Committee has not 
yet taken action with respect to the transaction pursuant to Sec.  
802.405.


Sec.  802.502  Contents of voluntary notices.

    (a) If a party or the parties to a covered real estate transaction 
file a voluntary notice, they shall provide in detail the information 
set out in this section, which must be accurate and complete with 
respect to the party or parties filing the voluntary notice and to the 
transaction. (See also paragraph (l) of this section regarding U.S. 
public entities and paragraph (h) of this section and Sec.  802.203 
regarding certification requirements.)
    (b) A voluntary notice filed pursuant to Sec.  802.501 shall 
describe or provide, as applicable:
    (1) The transaction in question, including:
    (i) A summary setting forth the essentials of the transaction, 
including a statement of the purpose of the transaction, and its scope, 
both within and outside of the United States, as applicable;
    (ii) The nature of the transaction, including whether the 
transaction involves a purchase, lease, or concession of real estate;
    (iii) The name, United States address (if any), website address (if 
any), nationality (for individuals) or place of incorporation or other 
legal organization (for entities), and address of the principal place 
of business of each foreign person that is a party to the transaction;
    (iv) The name, address, website address (if any), principal place 
of business, and place of incorporation or other legal organization of 
the current holder of interest in the real estate that is the subject 
of the transaction;
    (v) In the case that a U.S. public entity is a party to the covered 
real estate transaction, provide the name, telephone number, and email 
address of the primary point of contact within the U.S. public entity;
    (vi) The name, address, and nationality (for individuals) or place 
of incorporation or other legal organization (for entities) of:
    (A) The immediate parent, the ultimate parent, and each 
intermediate parent, if any, of the foreign person that is a party to 
the transaction;
    (B) Where the ultimate parent is a private company, the ultimate 
owner(s) of such parent; and
    (C) Where the ultimate parent is a public company, any shareholder 
with an interest of greater than five percent in such parent;
    (vii) The name, address, website address (if any), and nationality 
(for individuals) or place of incorporation or other legal organization 
(for entities) of the foreign person or foreign persons that will be 
afforded property rights with respect to the real estate that is the 
subject of the covered real estate transaction;
    (viii) The expected date for completion date of the transaction, or 
the date it was completed;
    (ix) A good faith approximation of the fair market value of the 
interest acquired in the covered real estate in U.S. dollars, as of the 
date of the notice;
    (x) The name of any and all financial institutions and real estate 
agents/brokers involved in the transaction, including as advisors, 
underwriters, or a source of financing for the transaction;
    (xi) A copy of the purchase, lease, or concession agreement 
relating to the transaction; and
    (xii) Whether the foreign person will have any of the following 
rights or abilities with respect to the real estate as a result of the 
transaction and any additional information regarding such property 
rights:
    (A) To physically access the real estate;
    (B) To exclude others from physical access to the real estate;
    (C) To improve or develop the real estate; or
    (D) To attach fixed or immovable structures or objects to the real 
estate.
    (2) A detailed description of real estate that is the subject of 
the transaction, including as applicable:
    (i) The location, by address and geographic coordinates in decimal 
degrees to the 4th digit, of the real estate that is the subject of the 
covered real estate transaction;
    (ii) A description of the real estate that is the subject of the 
covered real estate transaction including the approximate size (in 
acres, feet or other appropriate measurement); nature of the real 
estate (e.g., zoning type and the major topographical or other features 
of the real estate); current use of the real estate; and structures 
that are or will be on the real estate;
    (iii) A description of any licenses, permits, easements, 
encumbrances, or other grants or approvals associated with the real 
estate as well as any feasibility studies conducted with respect to the 
real estate; and
    (iv) The name(s) of the relevant airport, maritime port, military 
installation, or any other facility or property of the U.S. Government 
as identified in this part, based on the

[[Page 50234]]

location of the real estate that is the subject of the transaction.
    (3) With respect to the foreign person engaged in the transaction 
and its parents:
    (i) A description of the business or businesses of the foreign 
person and each parent, including any interests in the United States, 
and the CAGE codes, NAICS codes, and DUNS numbers, if any, for such 
businesses;
    (ii) The plans of the foreign person for the real estate with 
respect to:
    (A) Use and development of the real estate;
    (B) Changing the nature of the real estate including building new 
structures or removing or altering current structures, including the 
anticipated dimensions; and
    (C) Assigning, modifying or terminating any licenses, permits, 
easements, encumbrances, or other grants or approvals referred to in 
paragraph (b)(2)(iii) of this section;
    (iii) Whether the foreign person is controlled by or acting on 
behalf of a foreign government, including without limitation as an 
agent or representative, or in some similar capacity, and if so, the 
identity of the foreign government;
    (iv) Whether a foreign government or a person controlled by or 
acting on behalf of a foreign government:
    (A) Has or controls property rights in the covered real estate or 
has or controls ownership interests, including contingent equity 
interest, of the acquiring foreign person or any parent of the 
acquiring foreign person, and if so, the nature and amount of any such 
interests, and with regard to contingent equity interest, the terms and 
timing of conversion;
    (B) Has the right or power to appoint any of the principal officers 
or the members of the board of directors (including other persons who 
perform duties usually associated with such titles) of the foreign 
person that is a party to the transaction or any parent of that foreign 
person;
    (C) Holds any other (contingent interest (for example, such as 
might arise from a lending transaction) in the foreign acquiring party 
and, if so, the rights that are covered by this contingent interest, 
and the manner in which they would be enforced; or
    (D) Has any other affirmative or negative rights or powers with 
respect to control over the foreign party engaged in the transaction, 
and if there are any such rights or powers, their source (for example, 
a ``golden share,'' shareholders agreement, contract, statute, or 
regulation) and the mechanics of their operation;
    (v) Any formal or informal arrangements among foreign persons that 
hold an ownership interest in the foreign person that is a party to the 
transaction or between such foreign person and other foreign persons to 
act in concert on particular matters affecting the real estate that is 
the subject of the transaction, and provide a copy of any documents 
that establish those rights or describe those arrangements;
    (vi) For each member of the board of directors or similar body 
(including external directors and other persons who perform duties 
usually associated with such titles) and officers (including president, 
senior vice president, executive vice president, and other persons who 
perform duties normally associated with such titles) of the acquiring 
foreign person engaged in the transaction and its immediate, 
intermediate, and ultimate parents, and for any individual having an 
ownership interest of five percent or more in the acquiring foreign 
person engaged in the transaction and in the foreign person's ultimate 
parent, the following information:
    (A) A curriculum vitae or similar professional synopsis, provided 
as part of the main notice, and
    (B) The following ``personal identifier information,'' which, for 
privacy reasons, and to ensure limited distribution, shall be set forth 
in a separate document, not in the main notice:
    (1) Full name (last, first, middle name);
    (2) All other names and aliases used;
    (3) Business address;
    (4) Country and city of residence;
    (5) Date of birth, in the format MM/DD/YYYY;
    (6) Place of birth;
    (7) U.S. Social Security number (where applicable);
    (8) National identity number, including nationality, date and place 
of issuance, and expiration date (where applicable);
    (9) U.S. or foreign passport number (if more than one, all must be 
fully disclosed), nationality, date and place of issuance, and 
expiration date and, if a U.S. visa holder, the visa type and number, 
date and place of issuance, and expiration date; and
    (10) Dates and nature of foreign government and foreign military 
service (where applicable), other than military service at a rank below 
the top two non-commissioned ranks of the relevant foreign country; and
    (vii) The following ``business identifier information'' for the 
immediate, intermediate, and ultimate parents of the foreign person 
engaged in the transaction, including their main offices and branches:
    (A) Business name, including all names under which the business is 
known to be or has been doing business;
    (B) Business address;
    (C) Business phone number, website address, and email address; and
    (D) Employer identification number or other domestic tax or 
corporate identification number.
    (c) The voluntary notice shall list any filings with, or reports 
to, agencies of the U.S. Government that have been or will be made with 
respect to the transaction prior to its completion, indicating the 
agencies concerned, the nature of the filing or report, the date on 
which it was filed or the estimated date by which it will be filed, and 
a relevant contact point and/or telephone number within the agency, if 
known.
    (d) In the case of the establishment of a joint venture in which 
one or more of the parties is contributing covered real estate, 
information for the voluntary notice shall be prepared on the 
assumption that the foreign person that is party to the joint venture 
has made a purchase or lease, or been granted a concession to, the 
covered real estate that the other party to the joint venture is 
contributing or transferring to the joint venture. The voluntary notice 
shall describe the name and address of the joint venture and the 
entities that established, or are establishing, the joint venture.
    (e) Persons filing a voluntary notice shall, during the time that 
the matter is pending before the Committee or the President, promptly 
advise the Staff Chairperson of any material changes in plans, facts 
and circumstances addressed in the notice, and information provided or 
required to be provided to the Committee under this section, and shall 
file amendments to the notice to reflect such material changes. Such 
amendments shall become part of the notice filed by such persons under 
Sec.  802.501, and the certifications required under paragraphs (h) and 
(m) of this section shall apply to such amendments.
    (f) Persons filing a voluntary notice shall include:
    (1) A complete pre-transaction organizational chart (and post-
transaction, if different) including, without limitation, information 
that identifies the name, principal place of business and place of 
incorporation or other legal organization (for entities), and 
nationality (for individuals), and ownership percentage (expressed in 
terms of both voting and economic

[[Page 50235]]

interest, if different) for each of the following:
    (i) The immediate parent, the ultimate parent, and each 
intermediate parent, if any, of each foreign person that is a party to 
the transaction;
    (ii) Where the ultimate parent is a private company, the ultimate 
owner(s) of such parent; and
    (iii) Where the ultimate parent is a public company, any 
shareholder with an interest of greater than five percent in such 
parent.
    (2) The opinion of the person regarding whether:
    (i) It is a foreign person;
    (ii) It is controlled by a foreign government; and
    (iii) The transaction has resulted or could result in a foreign 
person being afforded property rights with respect to covered real 
estate, and the reasons for its view.
    (g) Persons filing a voluntary notice shall include information as 
to whether:
    (1) Any party to the transaction is, or has been, a party to a 
mitigation agreement entered into or condition imposed under section 
721, and if so, shall specify the date and purpose of such agreement or 
condition and the U.S. Government signatories; and
    (2) Any party to the transaction (including such party's parents, 
subsidiaries, or entities under common control with the party) has been 
a party to a transaction previously notified to the Committee.
    (h) Each party filing a voluntary notice shall provide a 
certification of the notice consistent with Sec.  802.203. A sample 
certification may be found on the Committee's section of the Department 
of the Treasury website, currently available at https://home.treasury.gov/policy-issues/international/the-committee-on-foreign-investment-in-the-united-states-cfius.
    (i) Persons filing a voluntary notice shall include with the notice 
a list identifying each document provided as part of the notice, 
including all documents provided as attachments or exhibits to the 
narrative response.
    (j) A person filing a voluntary notice may stipulate that the 
transaction is a covered real estate transaction. A stipulation offered 
by any party pursuant to this section must be accompanied by a detailed 
description of the basis for the stipulation. A party that offers such 
a stipulation acknowledges that the Committee and the President are 
entitled to rely on such stipulation in determining whether the 
transaction is a covered real estate transaction for purposes of 
section 721 and all authorities thereunder, and waives the right to 
challenge any such determination. Neither the Committee nor the 
President is bound by any such stipulation, nor does any such 
stipulation limit the ability of the Committee or the President to act 
on any authority provided under section 721 with respect to any covered 
real estate transaction.
    (k) For any voluntarily submitted draft or formal written notice 
that includes a stipulation that the transaction is a covered real 
estate transaction, the Committee shall provide comments on a draft or 
formal written notice or accept a formal written notice of a covered 
real estate transaction not later than the date that is 10 business 
days after the date of submission of the draft or formal written 
notice.
    (l) In the case of a transaction where a U.S. public entity is a 
party to the transaction, the notifying party or parties may be the 
non-U.S. public entity. Each notifying party shall provide the 
information set out in this section with respect to itself and, to the 
extent known or reasonably available to it, with respect to the U.S. 
public entity.
    (m) At the conclusion of a review or investigation, each party that 
has filed additional information subsequent to the original notice 
shall file a final certification. (See Sec.  802.203.) A sample 
certification may be found at the Committee's section of the Department 
of the Treasury website, currently available at https://home.treasury.gov/policy-issues/international/the-committee-on-foreign-investment-in-the-united-states-cfius.


Sec.  802.503  Beginning of 45-day review period.

    (a) The Staff Chairperson of the Committee shall accept a voluntary 
notice the next business day after the Staff Chairperson has:
    (1) Determined that the notice complies with Sec.  802.502; and
    (2) Disseminated the notice to all members of the Committee.
    (b) A 45-day period for review of a transaction shall commence on 
the date on which the voluntary notice has been accepted, agency notice 
has been received by the Staff Chairperson of the Committee, or the 
Chairperson of the Committee has requested a notice pursuant to Sec.  
802.501(b). Such review shall end no later than the forty-fifth day 
after it has commenced, or if the forty-fifth day is not a business 
day, no later than the next business day after the forty-fifth day.
    (c) The Staff Chairperson shall promptly advise in writing all 
parties to a transaction that have filed a voluntary notice of:
    (1) The acceptance of the notice;
    (2) The date on which the review begins; and
    (3) The designation of any lead agency or agencies.
    (d) Within two business days after receipt of an agency notice by 
the Staff Chairperson, the Staff Chairperson shall send written advice 
of such notice to the parties to the transaction that is subject to the 
notice. Such written advice shall identify the date on which the review 
began.
    (e) The Staff Chairperson shall promptly circulate to all Committee 
members any draft pre-filing notice, any agency notice, any complete 
notice, and any subsequent information filed by the parties.


Sec.  802.504  Deferral, rejection, or disposition of certain voluntary 
notices.

    (a) The Committee, acting through the Staff Chairperson, may:
    (1) Reject any voluntary notice that does not comply with Sec.  
802.501 or Sec.  802.502 and so inform the parties promptly in writing;
    (2) Reject any voluntary notice at any time, and so inform the 
parties promptly in writing, if, after the notice has been submitted 
and before action by the Committee or the President has been concluded:
    (i) There is a material change in the transaction as to which 
notification has been made; or
    (ii) Information comes to light that contradicts material 
information provided in the notice by the parties;
    (3) Reject any voluntary notice at any time after the notice has 
been accepted, and so inform the parties promptly in writing, if the 
party or parties that have submitted the voluntary notice do not 
provide follow-up information requested by the Staff Chairperson within 
three business days of the request, or within a longer time frame if 
the parties so request in writing and the Staff Chairperson grants that 
request in writing; or
    (4) Reject any voluntary notice before the conclusion of a review 
or investigation, and so inform the parties promptly in writing, if one 
of the parties submitting the voluntary notice has not submitted the 
final certification required by Sec.  802.502(m).
    (b) Notwithstanding the authority of the Staff Chairperson under 
paragraph (a) of this section to reject an incomplete notice, the Staff 
Chairperson may defer acceptance of the notice, and the beginning of 
the review period specified by Sec.  802.503, to obtain any information 
required under this section that has not been submitted by the 
notifying party or parties or other parties to the

[[Page 50236]]

transaction. Where necessary to obtain such information, the Staff 
Chairperson may inform any non-notifying party or parties that notice 
has been filed with respect to a proposed transaction involving the 
party, and request that certain information required under this 
section, as specified by the Staff Chairperson, be provided to the 
Committee within seven days after receipt of the Staff Chairperson's 
request.
    (c) The Staff Chairperson shall notify the parties when the 
Committee has found that the transaction that is the subject of a 
voluntary notice is not a covered real estate transaction.
    (d) Example: The Staff Chairperson receives a joint notice from 
Corporation A, a foreign person, and Corporation X, a company that is 
selling covered real estate. The joint notice does not contain any 
information described under Sec.  802.502 concerning the nature of the 
real estate. The Staff Chairperson may reject the notice or defer the 
start of the review period until the parties have supplied the omitted 
information.


Sec.  802.505  Determination of whether to undertake an investigation.

    (a) After a review of a notified transaction under Sec.  802.503, 
the Committee shall undertake an investigation of any transaction that 
it has determined to be a covered real estate transaction if:
    (1) A member of the Committee (other than a member designated as ex 
officio under section 721(k)) advises the Staff Chairperson that the 
member believes that the transaction threatens to impair the national 
security of the United States and that the threat has not been 
mitigated; or
    (2) The lead agency recommends, and the Committee concurs, that an 
investigation be undertaken.
    (b) The Committee shall also undertake, after a review of a covered 
real estate transaction under Sec.  802.503, an investigation to 
determine the effects on national security of any covered real estate 
transaction that would result in control by a foreign person of 
critical infrastructure of or within the United States, if the 
Committee determines that the transaction could impair the national 
security and such impairment has not been mitigated.
    (c) The Committee shall undertake an investigation as described in 
paragraph (b) of this section unless the Chairperson of the Committee 
(or the Deputy Secretary of the Treasury) and the head of any lead 
agency (or his or her delegee at the deputy level or equivalent) 
designated by the Chairperson determine on the basis of the review that 
the covered real estate transaction will not impair the national 
security of the United States.


Sec.  802.506  Determination not to undertake an investigation.

    If the Committee determines, during the review period described in 
Sec.  802.503, not to undertake an investigation of a notified covered 
real estate transaction, action under section 721 shall be concluded. 
An official at the Department of the Treasury shall promptly inform the 
parties to a covered real estate transaction in writing of a 
determination of the Committee not to undertake an investigation and to 
conclude action under section 721.


Sec.  802.507  Commencement of investigation.

    (a) If it is determined that an investigation should be undertaken, 
such investigation shall commence no later than the end of the review 
period described in Sec.  802.503.
    (b) An official of the Department of the Treasury shall promptly 
inform the parties to a covered real estate transaction in writing of 
the commencement of an investigation.


Sec.  802.508  Completion or termination of investigation and report to 
the President.

    (a) Subject to paragraph (e) of this section, the Committee shall 
complete an investigation no later than the forty-fifth day after the 
date the investigation commences, or, if the forty-fifth day is not a 
business day, no later than the next business day after the forty-fifth 
day.
    (b) Upon completion or termination of any investigation, the 
Committee shall send a report to the President requesting the 
President's decision if:
    (1) The Committee recommends that the President suspend or prohibit 
the transaction;
    (2) The Committee is unable to reach a decision on whether to 
recommend that the President suspend or prohibit the transaction; or
    (3) The Committee requests that the President make a determination 
with regard to the transaction.
    (c) In circumstances when the Committee sends a report to the 
President requesting the President's decision with respect to a covered 
real estate transaction, such report shall include information relevant 
to sections 721(d)(4)(A) and (B), and shall present the Committee's 
recommendation. If the Committee is unable to reach a decision to 
present a single recommendation to the President, the Chairperson of 
the Committee shall submit a report of the Committee to the President 
setting forth the differing views and presenting the issues for 
decision.
    (d) Upon completion or termination of an investigation, if the 
Committee determines to conclude all deliberative action under section 
721 with regard to a notified covered real estate transaction without 
sending a report to the President, action under section 721 shall be 
concluded. An official at the Department of the Treasury shall promptly 
advise the parties to such a transaction in writing of a determination 
to conclude action.
    (e) In extraordinary circumstances, the Chairperson may, upon a 
written request signed by the head of a lead agency, extend an 
investigation for one 15-day period. A request to extend an 
investigation must describe, with particularity, the extraordinary 
circumstances that warrant the Chairperson extending the investigation. 
The authority of the head of a lead agency to request the extension of 
an investigation may not be delegated to any person other than the 
deputy head (or equivalent thereof) of the lead agency. If the 
Chairperson extends an investigation pursuant to this paragraph with 
respect to a covered real estate transaction, the Committee shall 
promptly notify the parties to the transaction of the extension.
    (f) For purposes of paragraph (e) of this section, ``extraordinary 
circumstances'' means circumstances for which extending an 
investigation is necessary and the appropriate course of action due to 
a force majeure event or to protect the national security of the United 
States.


Sec.  802.509  Withdrawal of notices.

    (a) A party (or parties) to a transaction that has filed notice 
under Sec.  802.501(a) may request in writing, at any time prior to 
conclusion of all action under section 721, that such notice be 
withdrawn. Such request shall be directed to the Staff Chairperson and 
shall state the reasons why the request is being made. Such requests 
will ordinarily be granted, unless otherwise determined by the 
Committee. An official of the Department of the Treasury will promptly 
advise the parties to the transaction in writing of the Committee's 
decision.
    (b) Any request to withdraw an agency notice by the agency that 
filed it shall be in writing and shall be effective only upon approval 
by the Committee. An official of the Department of the Treasury shall 
advise the parties to the transaction in writing of the Committee's 
decision to approve the withdrawal request within two business days of 
the Committee's decision.

[[Page 50237]]

    (c) In any case where a request to withdraw a notice is granted 
under paragraph (a) of this section:
    (1) The Staff Chairperson, in consultation with the Committee, 
shall establish, as appropriate:
    (i) A process for tracking actions that may be taken by any party 
to the covered real estate transaction before notice is refiled under 
Sec.  802.501; and
    (ii) Interim protections to address specific national security 
concerns with the transaction identified during the review or 
investigation of the transaction.
    (2) The Staff Chairperson shall specify a time frame, as 
appropriate, for the parties to resubmit a notice and shall advise the 
parties of that time frame in writing.
    (d) A notice of a transaction that is submitted pursuant to 
paragraph (c)(2) of this section shall be deemed a new notice for 
purposes of the regulations in this part, including Sec.  802.701.

Subpart F--Committee Procedures


Sec.  802.601  General.

    (a) In any assessment, review, or investigation of a covered real 
estate transaction, the Committee should consider the factors specified 
in section 721(f), as applicable, and, as appropriate, require parties 
to provide to the Committee the information necessary to consider such 
factors. The Committee's assessment, review, or investigation (if 
necessary) shall examine, as appropriate, whether:
    (1) The transaction is a covered real estate transaction or subject 
to part 800 of this title;
    (2) There is credible evidence to support a belief that any foreign 
person party to a covered real estate transaction might take action 
that threatens to impair the national security of the United States; 
and
    (3) Provisions of law, other than section 721 and the International 
Emergency Economic Powers Act, provide adequate and appropriate 
authority to protect the national security of the United States.
    (b) During an assessment, review, or investigation, the Staff 
Chairperson may invite the parties to a notified transaction to attend 
a meeting with the Committee staff to discuss and clarify issues 
pertaining to the transaction. During an investigation, a party to the 
transaction under investigation may request a meeting with the 
Committee staff; such a request ordinarily will be granted.
    (c) The Staff Chairperson shall be the point of contact for 
receiving material filed with the Committee, including notices.
    (d) Where more than one lead agency is designated, communications 
on material matters between a party to the transaction and a lead 
agency shall include all lead agencies designated with regard to those 
matters.
    (e) The parties' description of a transaction in a declaration or 
notice does not limit the ability of the Committee to, as appropriate, 
assess, review, or investigate, or exercise any other authorities 
available under section 721 with respect to any covered real estate 
transaction that the Committee identifies as having been notified to 
the Committee based upon the facts set forth in the declaration or 
notice, any additional information provided to the Committee subsequent 
to the original declaration or notice, or any other information 
available to the Committee.


Sec.  802.602   Role of the Secretary of Labor.

    In response to a request from the Chairperson of the Committee, the 
Secretary of Labor shall identify for the Committee any risk mitigation 
provisions proposed to or by the Committee that would violate U.S. 
employment laws or require a party to violate U.S. employment laws. The 
Secretary of Labor shall serve no policy role on the Committee.


Sec.  802.603  Materiality.

    The Committee generally will not consider as material minor 
inaccuracies, omissions, or changes relating to financial or commercial 
factors not having a bearing on national security.


Sec.  802.604  Tolling of deadlines during lapse in appropriations.

    Any deadline or time limitation under subparts D or E imposed on 
the Committee shall be tolled during a lapse in appropriations.

Subpart G--Finality of Action


Sec.  802.701  Finality of actions under section 721.

    (a) All authority available to the President or the Committee under 
section 721(d), including without limitation divestment authority, 
shall remain available at the discretion of the President with respect 
to any covered real estate transaction. Subject to Sec.  
802.501(c)(1)(ii), such authority shall not be exercised if:
    (1) The Committee, through its Staff Chairperson, has advised a 
party (or the parties) in writing that a particular transaction with 
respect to which a voluntary notice or a declaration has been filed is 
not a covered real estate transaction;
    (2) The parties to the transaction have been advised in writing 
pursuant to Sec.  802.405(a)(4), Sec.  802.506 or Sec.  802.508(d) that 
the Committee has concluded all action under section 721 with respect 
to the covered real estate transaction; or
    (3) The President has previously announced, pursuant to section 
721(d), his decision not to exercise his authority under section 721 
with respect to the covered real estate transaction.

Subpart H--Provision and Handling of Information


Sec.  802.801  Obligation of parties to provide information.

    (a) Parties to a transaction that is notified or declared under 
subparts D or E, or a transaction for which no notice or declaration 
has been submitted and for which the Staff Chairperson has requested 
information to assess whether the transaction is a covered real estate 
transaction, shall provide information to the Staff Chairperson that 
will enable the Committee to conduct a full assessment, review, and/or 
investigation of the proposed transaction, and shall promptly advise 
the Staff Chairperson of any material changes in plans or information 
pursuant to Sec.  802.401(d) or Sec.  802.502(e). If deemed necessary 
by the Committee, information may be obtained from parties to a 
transaction or other persons through subpoena or otherwise, pursuant to 
the Defense Production Act Reauthorization of 2003, as amended, Public 
Law 108-195 (50 U.S.C. 4555(a)).
    (b) Documentary materials or information required or requested to 
be filed with the Committee under this part shall be submitted in 
English. Supplementary materials, such as annual reports, written in a 
foreign language, shall be submitted in certified English translation.
    (c) Any information filed with the Committee in connection with any 
action for which a report is required pursuant to section 721(l)(3)(B) 
with respect to the implementation of a mitigation agreement or 
condition described in section 721(l)(1)(A) shall be accompanied by a 
certification that complies with the requirements of section 721(n) and 
Sec.  802.203. A sample certification may be found at the Committee's 
section of the Department of the Treasury website, currently available 
at https://home.treasury.gov/policy-issues/international/the-committee-on-foreign-investment-in-the-united-states-cfius.


Sec.  802.802  Confidentiality.

    (a) Except as provided in paragraph (b) of this section, any 
information or documentary material submitted or filed

[[Page 50238]]

with the Committee pursuant to this part, including information or 
documentary material filed pursuant to Sec.  802.501(f), shall be 
exempt from disclosure under the Freedom of Information Act, as amended 
(5 U.S.C. 552, et seq.), and no such information or documentary 
material may be made public.
    (b) Paragraph (a) of this section shall not prohibit disclosure of 
the following:
    (1) Information relevant to any administrative or judicial action 
or proceeding;
    (2) Information to Congress or to any duly authorized committee or 
subcommittee of Congress;
    (3) Information important to the national security analysis or 
actions of the Committee to any domestic governmental entity, or to any 
foreign governmental entity of a United States ally or partner, under 
the exclusive direction and authorization of the Chairperson, only to 
the extent necessary for national security purposes, and subject to 
appropriate confidentiality and classification requirements; or
    (4) Information that the parties have consented to be disclosed to 
third parties;
    (c) This section shall continue to apply with respect to 
information and documentary material submitted or filed with the 
Committee in any case where:
    (1) Action has concluded under section 721 concerning a notified 
transaction;
    (2) A request to withdraw a notice or a declaration is granted 
under Sec.  802.509 or Sec.  802.404(c), respectively, or where a 
notice or a declaration has been rejected under Sec.  802.504(a) or 
Sec.  802.404(a), respectively;
    (3) The Committee determines that a notified or declared 
transaction is not a covered real estate transaction; or
    (4) Such information or documentary material was filed pursuant to 
subpart D and the parties do not subsequently file a notice pursuant to 
subpart E.
    (d) Nothing in paragraph (a) of this section shall be interpreted 
to prohibit the public disclosure by a party of documentary material or 
information that it has submitted or filed with the Committee. Any such 
documentary material or information so disclosed may subsequently be 
reflected in the public statements of the Chairperson, who is 
authorized to communicate with the public and the Congress on behalf of 
the Committee, or of the Chairperson's designee.
    (e) The provisions of the Defense Production Act Reauthorization of 
2003, as amended (50 U.S.C. 4555(d)) relating to fines and imprisonment 
shall apply with respect to the disclosure of information or 
documentary material filed with the Committee under these regulations.

Subpart I--Penalties and Damages


Sec.  802.901  Penalties and damages.

    (a) Any person who submits a material misstatement or omission in a 
declaration or notice or makes a false certification under Sec.  
802.402, Sec.  802.403, or Sec.  802.502 may be liable to the United 
States for a civil penalty not to exceed $250,000 per violation. The 
amount of the penalty imposed for a violation shall be based on the 
nature of the violation.
    (b) Any person who violates a material provision of a mitigation 
agreement entered into on or after the effective date with, a material 
condition imposed on or after the effective date by, or an order issued 
on or after the effective date by, the United States under section 
721(l) may be liable to the United States for a civil penalty not to 
exceed $250,000 per violation or the value of the transaction, 
whichever is greater. The amount of the penalty imposed for a violation 
shall be based on the nature of the violation.
    (c) A mitigation agreement entered into or amended under section 
721(l) after the effective date may include a provision providing for 
liquidated or actual damages for breaches of the agreement. The 
Committee shall set the amount of any liquidated damages as a 
reasonable assessment of the harm to the national security that could 
result from a breach of the agreement. Any mitigation agreement 
containing a liquidated damages provision shall include a provision 
specifying that the Committee will consider the severity of the breach 
in deciding whether to seek a lesser amount than that stipulated in the 
agreement.
    (d) A determination to impose penalties under paragraph (a) or (b) 
of this section must be made by the Committee. Notice of the penalty, 
including a written explanation of the penalized conduct and the amount 
of the penalty, shall be sent to the penalized party electronically and 
by U.S. mail.
    (e) Upon receiving notice of the imposition of a penalty under 
paragraph (a) or (b) of this section, the penalized party may, within 
15 days of receipt of the notice of the penalty, submit a petition for 
reconsideration to the Staff Chairperson, including a defense, 
justification, or explanation for the penalized conduct. The Committee 
will review the petition and issue a final decision within 15 days of 
receipt of the petition.
    (f) The penalties and damages authorized in paragraphs (a) through 
(c) of this section may be recovered in a civil action brought by the 
United States in federal district court.
    (g) Section 2 of the False Statements Accountability Act of 1996, 
as amended (18 U.S.C. 1001), shall apply to all information provided to 
the Committee under section 721, including by any party to a covered 
real estate transaction.
    (h) The penalties and damages available under this section are 
without prejudice to other penalties, civil or criminal, available 
under law.
    (i) The imposition of a civil monetary penalty or damages pursuant 
to these regulations creates a debt due to the U.S. Government. The 
Department of the Treasury may take action to collect the penalty or 
damages assessed if not paid within the time prescribed by the 
Committee and notified to the applicable party or parties. In addition 
or instead, the matter may be referred to the Department of Justice for 
appropriate action to recover the penalty or damages.


Sec.  802.902   Effect of lack of compliance.

    (a) If, at any time after a mitigation agreement or condition is 
entered into or imposed under section 721(l), the Committee or a lead 
agency in coordination with the Staff Chairperson, as the case may be, 
determines that a party or parties to the agreement or condition are 
not in compliance with the terms of the agreement or condition, the 
Committee or a lead agency in coordination with the Staff Chairperson 
may, in addition to the authority of the Committee to impose penalties 
pursuant to section 721(h) and to unilaterally initiate a review of any 
covered transaction pursuant to section 721(b)(1)(D)(iii):
    (1) Negotiate a plan of action for the party or parties to 
remediate the lack of compliance, with failure to abide by the plan or 
otherwise remediate the lack of compliance serving as the basis for the 
Committee to find a material breach of the agreement or condition;
    (2) Require that the party or parties submit a written notice or 
declaration under clause (i) of section 721(b)(1)(C) with respect to a 
covered real estate transaction initiated after the date of the 
determination of noncompliance and before the date that is five years 
after the date of the determination to the Committee to initiate a 
review of the transaction under section 721(b); or
    (3) Seek injunctive relief.

[[Page 50239]]

Subpart J--Foreign National Security Investment Review Regimes


Sec.  802.1001   Determinations.

    (a) The Chairperson of the Committee, with the agreement of two-
thirds of the voting members of the Committee, may determine at any 
time that a foreign state has made significant progress toward 
establishing and effectively utilizing a robust process to analyze 
foreign investments for national security risks and to facilitate 
coordination with the United States on matters relating to investment 
security.
    (b) The Chairperson of the Committee may rescind a determination 
under paragraph (a) of this section if the Chairperson of the Committee 
determines, with the agreement of two-thirds of the voting members of 
the Committee, that such a rescission is appropriate.
    (c) The Chairperson of the Committee shall publish a notice of any 
determination or rescission of a determination under paragraph (a) or 
(b) of this section, respectively, in the Federal Register.


Sec.  802.1002   Effect of determinations.

    (a) A determination under Sec.  802.1001(a) shall take effect 
immediately upon publication of a notice of such determination under 
Sec.  802.1001(c) and remain in effect unless rescinded pursuant to 
paragraph (b) of this section.
    (b) A rescission of a determination under Sec.  802.1001(b) shall 
take effect on the date specified in the notice published under Sec.  
802.1001(c).
    (c) A determination under Sec.  802.1001(a) does not apply to any 
transaction for which a declaration or notice has been accepted by the 
Staff Chairperson pursuant to Sec.  802.403(a)(1) or Sec.  802.503(a), 
respectively.
    (d) A rescission of a determination under Sec.  802.1001(b) does 
not apply to any transaction for which:
    (1) The completion date is prior to the date upon which the 
rescission of a determination under paragraph (b) of this section 
becomes effective; or
    (2) Before publication of the rescission of determination under 
Sec.  802.1001(c), the parties to the transaction have executed a 
binding written agreement, or other binding document, establishing the 
material terms of the transaction that is ultimately consummated.

Appendix A to Part 802--List of Military Installations

------------------------------------------------------------------------
          Site name                             Location
------------------------------------------------------------------------
                                 Part 1
------------------------------------------------------------------------
Adelphi Laboratory Center....  Adelphi, MD.
Air Force Maui Optical and     Maui, HI.
 Supercomputing Site.
Air Force Office of            Arlington, VA.
 Scientific Research.
Andersen Air Force Base......  Yigo, Guam.
Army Futures Command.........  Austin, TX.
Army Research Lab--Orlando     Orlando, FL.
 Simulations and Training
 Technology Center.
Army Research Lab--Raleigh     Raleigh Durham, NC.
 Durham.
Arnold Air Force Base........  Coffee County and Franklin County, TN.
Beale Air Force Base.........  Yuba City, CA.
Biometric Technology Center    Clarksburg, WV.
 (Biometrics Identity
 Management Activity).
Buckley Air Force Base.......  Aurora, CO.
Camp MacKall.................  Pinebluff, NC.
Cape Cod Air Force Station...  Sandwich, MA.
Cape Newenham Long Range       Cape Newenham, AK.
 Radar Site.
Cavalier Air Force Station...  Cavalier, ND.
Cheyenne Mountain Air Force    Colorado Springs, CO.
 Station.
Clear Air Force Station......  Anderson, AK.
Creech Air Force Base........  Indian Springs, NV.
Davis-Monthan Air Force Base.  Tucson, AZ.
Defense Advanced Research      Arlington, VA.
 Projects Agency.
Eareckson Air Force Station..  Shemya, AK.
Eielson Air Force Base.......  Fairbanks, AK.
Ellington Field Joint Reserve  Houston, TX.
 Base.
Fairchild Air Force Base.....  Spokane, WA.
Fort Benning.................  Columbus, GA.
Fort Belvoir.................  Fairfax County, VA.
Fort Bliss...................  El Paso, TX.
Fort Campbell................  Hopkinsville, KY.
Fort Carson..................  Colorado Springs, CO.
Fort Detrick.................  Frederick, MD.
Fort Drum....................  Watertown, NY.
Fort Gordon..................  Augusta, GA.
Fort Hood....................  Killeen, TX.
Fort Knox....................  Fort Knox, KY.
Fort Leavenworth.............  Leavenworth, KS.
Fort Lee.....................  Petersburg, VA.
Fort Leonard Wood............  Pulaski County, MO.
Fort Meade...................  Anne Arundel County, MD.
Fort Riley...................  Junction City, KS.
Fort Shafter.................  Honolulu, HI.
Fort Sill....................  Lawton, OK.
Fort Stewart.................  Hinesville, GA.
Fort Yukon Long Range Radar    Fort Yukon, AK.
 Site.

[[Page 50240]]

 
Francis E. Warren Air Force    Cheyenne, WY.
 Base.
Guam Tracking Station........  Inarajan, Guam.
Hanscom Air Force Base.......  Lexington, MA.
Holloman Air Force Base......  Alamogordo, NM.
Holston Army Ammunition Plant  Kingsport, TN.
Joint Base Anacostia-Bolling.  Washington, DC.
Joint Base Andrews...........  Camp Springs, MD.
Joint Base Elmendorf-          Anchorage, AK.
 Richardson.
Joint Base Langley-Eustis....  Hampton, VA and Newport News, VA.
Joint Base Lewis-McChord.....  Tacoma, WA.
Joint Base McGuire-Dix-        Lakehurst, NJ.
 Lakehurst.
Joint Base Pearl Harbor-       Honolulu, HI.
 Hickam.
Joint Base San Antonio.......  San Antonio, TX.
Joint Expeditionary Base       Virginia Beach, VA.
 Little Creek-Fort Story.
Kaena Point Satellite          Waianae, HI.
 Tracking Station.
King Salmon Air Force Station  King Salmon, AK.
Kirtland Air Force Base......  Albuquerque, NM.
Kodiak Tracking Stations.....  Kodiak Island, AK.
Los Angeles Air Force Base...  El Segundo, CA.
MacDill Air Force Base.......  Tampa, FL.
Malmstrom Air Force Base.....  Great Falls, MT.
Marine Corps Air Ground        Twentynine Palms, CA.
 Combat Center Twentynine
 Palms.
Marine Corps Air Station       Beaufort, SC.
 Beaufort.
Marine Corps Air Station       Cherry Point, NC.
 Cherry Point.
Marine Corps Air Station       San Diego, CA.
 Miramar.
Marine Corps Air Station New   Jacksonville, NC.
 River.
Marine Corps Air Station Yuma  Yuma, AZ.
Marine Corps Base Camp         Jacksonville, NC.
 Lejeune.
Marine Corps Base Camp         Oceanside, CA.
 Pendleton.
Marine Corps Base Hawaii.....  Kaneohe Bay, HI.
Marine Corps Base Hawaii,      Halawa, HI.
 Camp H.M. Smith.
Marine Corps Base Quantico...  Quantico, VA.
Mark Center..................  Alexandria, VA.
Minot Air Force Base.........  Minot, ND.
Moody Air Force Base.........  Valdosta, GA.
National Capital Region        Herndon, VA.
 Coordination Center.
Naval Air Station Joint        Belle Chasse, LA.
 Reserve Base New Orleans.
Naval Air Station Oceana.....  Virginia Beach, VA.
Naval Air Station Oceana Dam   Virginia Beach, VA.
 Neck Annex.
Naval Air Station Whidbey      Oak Harbor, WA.
 Island.
Naval Base Guam..............  Apra Harbor, Guam.
Naval Base Kitsap Bangor.....  Silverdale, WA.
Naval Base Point Loma........  San Diego, CA.
Naval Base San Diego.........  San Diego, CA.
Naval Base Ventura County--    Port Hueneme, CA.
 Port Hueneme Operating
 Facility.
Naval Research Laboratory....  Washington, DC.
Naval Research Laboratory--    Welcome, MD.
 Blossom Point.
Naval Research Laboratory--    Hancock County, MS.
 Stennis Space Center.
Naval Research Laboratory--    Tilghman, MD.
 Tilghman.
Naval Station Newport........  Newport, RI.
Naval Station Norfolk........  Norfolk, VA.
Naval Submarine Base Kings     Kings Bay, GA.
 Bay.
Naval Submarine Base New       Groton, CT.
 London.
Naval Surface Warfare Center   Bayview, ID.
 Carderock Division--Acoustic
 Research Detachment.
Naval Support Activity Crane.  Crane, IN.
Naval Support Activity         Orlando, FL.
 Orlando.
Naval Support Activity Panama  Panama City, FL.
 City.
Naval Support Activity         Philadelphia, PA.
 Philadelphia.
Naval Support Facility         Bethesda, MD.
 Carderock.
Naval Support Facility         Dahlgren, VA.
 Dahlgren.
Naval Support Facility Indian  Indian Head, MD.
 Head.
Naval Weapons Station Seal     Norco, CA.
 Beach Detachment Norco.
New Boston Air Station.......  New Boston, NH.
Offutt Air Force Base........  Bellevue, NE.
Oliktok Long Range Radar Site  Oliktok, AK.
Orchard Combat Training        Boise, ID.
 Center.
Peason Ridge Training Area...  Leesville, LA.
Pentagon.....................  Arlington, VA.

[[Page 50241]]

 
Peterson Air Force Base......  Colorado Springs, CO.
Picatinny Arsenal............  Morris County, NJ.
Pi[ntilde]on Canyon Maneuver   Tyrone, CO.
 Site.
Pohakuloa Training Area......  Hilo, HI.
Point Barrow Long Range Radar  Point Barrow, AK.
 Site.
Portsmouth Naval Shipyard....  Kittery, ME.
Radford Army Ammunition Plant  Radford, VA.
Redstone Arsenal.............  Huntsville, AL.
Rock Island Arsenal..........  Rock Island, IL.
Rome Research Laboratory.....  Rome, NY.
Schriever Air Force Base.....  Colorado Springs, CO.
Seymour Johnson Air Force      Goldsboro, NC.
 Base.
Shaw Air Force Base..........  Sumter, SC.
Southeast Alaska Acoustic      Ketchikan, AK.
 Measurement Facility.
Tin City Long Range Radar      Tin City, AK.
 Site.
Tinker Air Force Base........  Midwest City, OK.
Travis Air Force Base........  Fairfield, CA.
Tyndall Air Force Base.......  Bay County, FL.
U.S. Army Natick Soldier       Natick, MA.
 Systems Center.
Watervliet Arsenal...........  Watervliet, NY.
Wright-Patterson Air Force     Dayton, OH.
 Base.
------------------------------------------------------------------------
                                 Part 2
------------------------------------------------------------------------
Aberdeen Proving Ground......  Aberdeen, MD.
Camp Shelby..................  Hattiesburg, MS.
Cape Canaveral Air Force       Cape Canaveral, FL.
 Station.
Dare County Range............  Manns Harbor, NC.
Edwards Air Force Base.......  Edwards, CA.
Eglin Air Force Base.........  Valparaiso, FL.
Fallon Range Complex.........  Fallon, NV.
Fort Bragg...................  Fayetteville, NC.
Fort Greely..................  Delta Junction, AK.
Fort Huachuca................  Sierra Vista, AZ.
Fort Irwin...................  San Bernardino County, CA.
Fort Polk....................  Leesville, LA.
Fort Wainwright..............  Fairbanks, AK.
Hardwood Range...............  Necehuenemedah, WI.
Hill Air Force Base..........  Ogden, UT.
Mountain Home Air Force Base.  Mountain Home, ID.
Naval Air Station Meridian...  Meridian, MS.
Naval Air Station Patuxent     Lexington Park, MD.
 River.
Naval Air Weapons Station      Ridgecrest, CA.
 China Lake.
Naval Base Kitsap--Keyport...  Keyport, WA.
Naval Base Ventura County--    Point Mugu, CA.
 Point Mugu Operating
 Facility.
Naval Weapons Systems          Boardman, OR.
 Training Facility Boardman.
Nellis Air Force Base........  Las Vegas, NV.
Nevada Test and Training       Tonopah, NV.
 Range.
Pacific Missile Range          Kekaha, HI.
 Facility.
Patrick Air Force Base.......  Cocoa Beach, FL.
Tropic Regions Test Center...  Wahiawa, HI.
Utah Test and Training Range.  Barro, UT.
Vandenberg Air Force Base....  Lompoc, CA.
West Desert Test Center......  Dugway, UT.
White Sands Missile Range....  White Sands Missile Range, NM.
Yuma Proving Ground..........  Yuma, AZ.
------------------------------------------------------------------------


 
              Site name                                  County                            Township/range
----------------------------------------------------------------------------------------------------------------
                                                     Part 3
----------------------------------------------------------------------------------------------------------------
90th Missile Wing Francis E. Warren    Chase County, NE..........................  All.
 Air Force Base Missile Field          Dundy County, NE..........................  All.
 (Colorado, Nebraska, and Wyoming).    Goshen County, WY.........................  All.
                                       Hitchcock County, NE......................  All.
                                       Laramie County, WY........................  All.
                                       Logan County, CO..........................  All.
                                       Platte County, WY.........................  All.
                                       Weld County, CO...........................  All.
----------------------------------------------------------------------------------------------------------------

[[Page 50242]]

 
341st Missile Wing Malmstrom Air       Cascade County, MT........................  All.
 Force Base Missile Field (Montana).   Chouteau County, MT.......................  All, except lands located
                                                                                    north of Township 22 North
                                                                                    and east of Range 7 East
                                                                                    based on the Bureau of Land
                                                                                    Management's Public Lands
                                                                                    Survey System.
                                       Fergus County, MT.........................  All.
                                       Judith Basin County, MT...................  All.
                                       Lewis and Clark County, MT................  All, except lands located
                                                                                    south of Township 14 North
                                                                                    and west of Range 9 West
                                                                                    based on the Bureau of Land
                                                                                    Management's Public Lands
                                                                                    Survey System.
                                       Pondera County, MT........................  All, except lands located
                                                                                    west of Range 9 West based
                                                                                    on the Bureau of Land
                                                                                    Management's Public Lands
                                                                                    Survey System.
                                       Teton County, MT..........................  All, except lands located
                                                                                    west of Range 9 West based
                                                                                    on the Bureau of Land
                                                                                    Management's Public Lands
                                                                                    Survey System.
                                       Toole County, MT..........................  All.
                                       Wheatland County, MT......................  All.
----------------------------------------------------------------------------------------------------------------
91st Missile Wing Minot Air Force      Bottineau County, ND......................  All.
 Base Missile Field (North Dakota).    Burke County, ND..........................  All.
                                       McHenry County, ND........................  All.
                                       McLean County, ND.........................  All.
                                       Mountrail County, ND......................  All.
                                       Renville County, ND.......................  All.
                                       Ward County, ND...........................  All.
----------------------------------------------------------------------------------------------------------------


 
              Site name                                                Location
----------------------------------------------------------------------------------------------------------------
                                                     Part 4
----------------------------------------------------------------------------------------------------------------
Boston Range Complex................  Offshore Massachusetts, New Hampshire, Maine.
Boston Operating Area...............  Offshore Massachusetts, New Hampshire, Maine.
Charleston Operating Area...........  Offshore North Carolina, South Carolina.
Cherry Point Operating Area.........  Offshore North Carolina, South Carolina.
Corpus Christi Operating Area.......  Offshore Texas.
Eglin Gulf Test and Training Range..  Offshore Florida.
Gulf of Mexico Range Complex........  Offshore Mississippi, Alabama, Florida.
Hawaii Range Complex................  Offshore Hawaii.
Jacksonville Operating Area.........  Offshore Florida, Georgia.
Jacksonville Range Complex..........  Offshore Florida.
Key West Operating Area.............  Offshore Florida.
Key West Range Complex..............  Offshore Florida.
Narragansett Bay Range Complex......  Offshore Connecticut, Massachusetts, New York, Rhode Island.
Narragansett Bay Operating Area.....  Offshore Connecticut, Massachusetts, New York, Rhode Island.
New Orleans Operating Area..........  Offshore Louisiana.
Northern California Range Complex...  Offshore California.
Northwest Training Range Complex....  Offshore Oregon, Washington.
Panama City Operating Area..........  Offshore Florida.
Pensacola Operating Area............  Offshore Alabama, Florida.
Point Mugu Sea Range................  Offshore California.
Southern California Range Complex...  Offshore California.
Virginia Capes Operating Area.......  Offshore Delaware, Maryland, North Carolina, Virginia.
Virginia Capes Range Complex........  Offshore Delaware, Maryland, North Carolina, Virginia.
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    Dated: September 11, 2019.
Thomas Feddo,
Deputy Assistant Secretary for Investment Security.

[FR Doc. 2019-20100 Filed 9-17-19; 4:15 pm]
BILLING CODE 4810-25-P