[Federal Register Volume 88, Number 162 (Wednesday, August 23, 2023)]
[Rules and Regulations]
[Pages 57348-57352]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-17678]


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DEPARTMENT OF THE TREASURY

Office of Investment Security

31 CFR Part 802

[Docket ID TREAS-DO-2023-0006]
RIN 1505-AC82


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: Final rule.

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SUMMARY: This final rule adopts without change the proposed rule 
amending the definition of ``military installation'' and adding eight 
military installations to the appendix in the regulations of the 
Committee on Foreign Investment in the United States that implement the 
provisions relating to real estate transactions pursuant to the Defense 
Production Act of 1950, as amended. This rule also makes technical 
amendments in the form of name changes to five military installations.

DATES: This final rule is effective September 22, 2023.

FOR FURTHER INFORMATION CONTACT: For questions about this rule, 
contact: Meena R. Sharma, Acting Director, Office 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. Proposed Definition of Military Installation and Appendix A

    On May 5, 2023, the U.S. Department of the Treasury (Treasury 
Department) published in the Federal Register a proposed rule (88 FR 
29003) amending the definition of ``military installation'' and adding 
eight military installations to the list at appendix A of the 
regulations in part 802 to title 31 of the Code of Federal Regulations 
(part 802) that implement the provisions relating to real estate 
transactions pursuant to section 721 of the Defense Production Act of 
1950, as amended (section 721). Part 802 sets forth the processes and 
procedures of the Committee on Foreign Investment in the United States 
(CFIUS) for reviewing transactions involving the purchase or lease by, 
or concession to, a foreign person of certain real estate in the United 
States. Appendix A identifies, among other things, the bases, ranges, 
and other installations

[[Page 57349]]

that meet the definition of ``military installation'' at Sec.  802.227. 
The amendments were proposed as a result of the ongoing evaluation of 
military installations by the U.S. Department of Defense (Defense 
Department).

B. Additional Technical Amendments To Update the Names of Certain 
Military Installations

    This final rule also includes technical amendments to update the 
names of five military installations at appendix A: Fort Cavazos 
(formerly Fort Hood); Fort Gregg-Adams (formerly Fort Lee); Fort 
Johnson (formerly Fort Polk); Fort Liberty (formerly Fort Bragg); and 
Fort Moore (formerly Fort Benning). These are name changes to 
installations already on the list at appendix A and reflect decisions 
made by the Defense Department to implement the recommendations of the 
Defense Department Naming Commission. The military installation name 
changes in this final rule are those that have officially been changed 
by the Defense Department as of the publication date of this rule in 
the Federal Register. Additional bases may be renamed in the future, 
and information on the full list of recommended name changes is 
available at https://media.defense.gov/2022/Oct/06/2003092544/-1/-1/1/IMPLEMENTATION-OF-THE-NAMING-COMMISSIONS-RECOMMENDATIONS.PDF and 
https://www.defense.gov/News/News-Stories/Article/Article/3260434/dod-begins-implementing-naming-commission-recommendations/.

C. Additional Guidance

    The Treasury Department, in coordination with the Defense 
Department and the U.S. Department of Commerce's Census Bureau (Census 
Bureau), makes available a web-based tool to help the public understand 
the geographic coverage of part 802. This web-based tool is available 
at https://mtgis-portal.geo.census.gov/arcgis/apps/webappviewer/index.html?id=0bb1d5751d76498181b4b531987ce263 and allows users to 
input an address and determine the distance to certain military 
installations. The tool was developed to assist the public and is 
provided for reference only; it should not be interpreted as guidance 
or an advisory opinion by CFIUS with respect to any particular 
transaction.

II. Summary of Comments

    The public was provided an opportunity to comment on the proposed 
rule, and comments were due by June 5, 2023. During the public comment 
period, the Treasury Department received five comments reflecting a 
range of views. All comments received are available on the public 
rulemaking docket at https://www.regulations.gov and are addressed 
herein.
    The Treasury Department considered each comment submitted on the 
proposed rule. One commenter expressed the view that these provisions 
should be expanded to U.S. developers and realtors to address the 
overdevelopment of U.S. land located in natural disaster zones. The 
rule makes no change in response to this comment as it is outside the 
scope of section 721.
    One commenter expressed the view that the regulations should 
further address risks posed by incompatible development around military 
installations such as from the construction of obstructions, visual and 
other interference from certain land uses, and light emissions, among 
other things. The commenter further expressed a view with respect to 
adding air installations to appendix A and related operational security 
risks. The rule makes no change in response to these comments. The 
Treasury Department and the Defense Department consult on the 
composition of appendix A and part 802 more broadly, taking into 
account the statutory requirements under section 721 and a variety of 
considerations.
    One commenter requested guidance regarding whether legal name 
changes, inherited property, and gifts to relatives would be within the 
definition of a covered real estate transaction under part 802. The 
rule makes no change in response to this comment. Consistent with 
section 721 and as defined in Sec.  802.212(a), a covered real estate 
transaction includes any purchase or lease by, or concession to, a 
foreign person of covered real estate that affords the foreign person 
at least three property rights under Sec.  802.233. Real estate 
acquired by gift or inheritance is distinct from a purchase, lease, or 
concession as those terms are defined in part 802. By contrast, a 
person or entity that amends a property record or document to reflect a 
legal name change may or may not have engaged in a purchase, lease, or 
concession as those terms are defined in part 802--further analysis of 
the underlying reason for the name change would be required. For 
example, a corporate name change may follow an acquisition transaction, 
which, depending on the rights conveyed in that transaction, could be a 
covered real estate transaction (or be subject to CFIUS's jurisdiction 
relating to foreign investment in U.S. businesses which is detailed in 
31 CFR part 800). As a general reminder, the Treasury Department notes 
that pursuant to Sec.  802.212, the definition of a ``covered real 
estate transaction'' includes any 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 
transactions.
    One commenter suggested adding Whiteman Air Force Base in Missouri 
to the list of military installations at appendix A. The rule makes no 
change in response to this comment. As noted in the proposed rule, the 
Defense Department will continue on an ongoing basis to assess its 
military installations and the geographic scope set under the rule to 
ensure appropriate application in light of national security 
considerations.
    One commenter suggested an amendment to Sec.  802.216(c) to exclude 
from the definition of ``excepted real estate transaction'' any 
purchase, lease, or concession of covered real estate by a person owned 
by, controlled by, or subject to the jurisdiction or direction of a 
foreign adversary. The rule makes no change in response to this 
comment. The Treasury Department and the Defense Department consult on 
the definition of ``excepted real estate transaction'' taking into 
account the statutory requirements under section 721 and a variety of 
considerations.
    No additional comments were received. The final rule therefore 
adopts the proposed rule without change other than the technical 
amendments described above.

III. Rulemaking Requirements

Executive Order 12866

    This rule is not subject to the general requirements of Executive 
Order 12866, as amended, which covers review of regulations by the 
Office of Information and Regulatory Affairs in the Office of 
Management and Budget (OMB), because it relates to a foreign affairs 
function of the United States, pursuant to section 3(d)(2) of that 
order. In addition, this rule is not subject to review under section 
6(b) of Executive Order 12866 pursuant to section 1(d) of the June 9, 
2023, Memorandum of Agreement between the Treasury Department and OMB, 
which states that CFIUS regulations are not subject to OMB's standard 
centralized review process under Executive Order 12866.

Regulatory Flexibility Act

    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

[[Page 57350]]

certifies that the rule, once implemented, will not have a significant 
economic impact on a substantial number of small entities. The final 
rule makes amendments to part 802 (see 85 FR 3158), which the Treasury 
Department previously determined would not significantly impact a 
substantial number of small entities. The amendments in this rule do 
not change that analysis or determination.

Congressional Review Act

    This rule has been submitted to the OMB's Office of Information and 
Regulatory Affairs, which has determined that the rule is not a 
``major'' rule under the Congressional Review Act.

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.

    For the reasons set forth in the preamble, the Treasury Department 
amends 31 CFR part 802 as follows:

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

0
1. The authority citation for part 802 continues to read as follows:

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

Subpart B--Definitions


Sec.  802.227  [Amended]

0
2. Amend Sec.  802.227, in paragraph (m), by removing the words 
``Oregon, Nevada, Idaho, Wisconsin, Mississippi, North Carolina, or 
Florida'' and adding in their place ``Arizona, California, Florida, 
Idaho, Iowa, Mississippi, Nevada, North Carolina, North Dakota, Oregon, 
South Dakota, Texas, or Wisconsin''.

0
3. Revise parts 1 and 2 of appendix A to part 802 to read as follows:

Appendix A to Part 802--List of Military Installations and Other U.S. 
Government Sites

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

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Joint Base Anacostia-Bolling.................  Washington, DC.
Joint Base Andrews...........................  Camp Springs, MD.
Joint Base Elmendorf-Richardson..............  Anchorage, AK.
Joint Base Langley-Eustis....................  Hampton, VA and Newport
                                                News, VA.
Joint Base Lewis-McChord.....................  Tacoma, WA.
Joint Base McGuire-Dix-Lakehurst.............  Lakehurst, NJ.
Joint Base Pearl Harbor-Hickam...............  Honolulu, HI.
Joint Base San Antonio.......................  San Antonio, TX.
Joint Expeditionary Base Little Creek-Fort     Virginia Beach, VA.
 Story.
Kaena Point Satellite Tracking Station.......  Waianae, HI.
King Salmon Air Force Station................  King Salmon, AK.
Kirtland Air Force Base......................  Albuquerque, NM.
Kodiak Tracking Station......................  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 Combat Center          Twentynine Palms, CA.
 Twentynine Palms.
Marine Corps Air Station Beaufort............  Beaufort, SC.
Marine Corps Air Station Cherry Point........  Cherry Point, NC.
Marine Corps Air Station Miramar.............  San Diego, CA.
Marine Corps Air Station New River...........  Jacksonville, NC.
Marine Corps Air Station Yuma................  Yuma, AZ.
Marine Corps Base Camp Lejeune...............  Jacksonville, NC.
Marine Corps Base Camp Pendleton.............  Oceanside, CA.
Marine Corps Base Hawaii.....................  Kaneohe Bay, HI.
Marine Corps Base Hawaii, Camp H.M. Smith....  Halawa, HI.
Marine Corps Base Quantico...................  Quantico, VA.
Mark Center..................................  Alexandria, VA.
Minot Air Force Base.........................  Minot, ND.
Moody Air Force Base.........................  Valdosta, GA.
Naval Air Station Joint Reserve Base New       Belle Chasse, LA.
 Orleans.
Naval Air Station Oceana.....................  Virginia Beach, VA.
Naval Air Station Oceana Dam Neck Annex......  Virginia Beach, VA.
Naval Air Station Whidbey Island.............  Oak Harbor, WA.
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        Port Hueneme, CA.
 Operating Facility.
Naval Research Laboratory....................  Washington, DC.
Naval Research Laboratory--Blossom Point.....  Welcome, MD.
Naval Research Laboratory--Stennis Space       Hancock County, MS.
 Center.
Naval Research Laboratory--Tilghman..........  Tilghman, MD.
Naval Station Newport........................  Newport, RI.
Naval Station Norfolk........................  Norfolk, VA.
Naval Submarine Base Kings Bay...............  Kings Bay, GA.
Naval Submarine Base New London..............  Groton, CT.
Naval Surface Warfare Center Carderock         Bayview, ID.
 Division--Acoustic Research Detachment.
Naval Support Activity Crane.................  Crane, IN.
Naval Support Activity Orlando...............  Orlando, FL.
Naval Support Activity Panama City...........  Panama City, FL.
Naval Support Activity Philadelphia..........  Philadelphia, PA.
Naval Support Facility Carderock.............  Bethesda, MD.
Naval Support Facility Dahlgren..............  Dahlgren, VA.
Naval Support Facility Indian Head...........  Indian Head, MD.
Naval Weapons Station Seal Beach Detachment    Norco, CA.
 Norco.
New Boston Air Station.......................  New Boston, NH.
Offutt Air Force Base........................  Bellevue, NE.
Oliktok Long Range Radar Site................  Oliktok, AK.
Orchard Combat Training Center...............  Boise, ID.
Peason Ridge Training Area...................  Leesville, LA.
Pentagon.....................................  Arlington, VA.
Peterson Air Force Base......................  Colorado Springs, CO.
Picatinny Arsenal............................  Morris County, NJ.
Pi[ntilde]on Canyon Maneuver Site............  Tyrone, CO.
Pohakuloa Training Area......................  Hilo, HI.
Point Barrow Long Range Radar Site...........  Point Barrow, AK.
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 Base...............  Goldsboro, NC.

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Shaw Air Force Base..........................  Sumter, SC.
Southeast Alaska Acoustic Measurement          Ketchikan, AK.
 Facility.
Tin City Long Range Radar Site...............  Tin City, AK.
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 Systems Center......  Natick, MA.
Watervliet Arsenal...........................  Watervliet, NY.
Wright-Patterson Air Force Base..............  Dayton, OH.
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                    Part 2
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Aberdeen Proving Ground......................  Aberdeen, MD.
Air Force Plant 42...........................  Palmdale, CA.
Camp Shelby..................................  Hattiesburg, MS.
Cape Canaveral Air Force Station.............  Cape Canaveral, FL.
Dare County Range............................  Manns Harbor, NC.
Dyess Air Force Base.........................  Abilene, TX.
Edwards Air Force Base.......................  Edwards, CA.
Eglin Air Force Base.........................  Valparaiso, FL.
Ellsworth Air Force Base.....................  Box Elder, SD.
Fallon Range Complex.........................  Fallon, NV.
Fort Greely..................................  Delta Junction, AK.
Fort Huachuca................................  Sierra Vista, AZ.
Fort Irwin...................................  San Bernardino County,
                                                CA.
Fort Johnson.................................  Leesville, LA.
Fort Liberty.................................  Fayetteville, NC.
Fort Wainwright..............................  Fairbanks, AK.
Grand Forks Air Force Base...................  Grand Forks, ND.
Hardwood Range...............................  Necehuenemedah, WI.
Hill Air Force Base..........................  Ogden, UT.
Iowa National Guard Joint Force Headquarters.  Des Moines, IA.
Lackland Air Force Base......................  San Antonio, TX.
Laughlin Air Force Base......................  Del Rio, TX.
Luke Air Force Base..........................  Glendale, AZ.
Mountain Home Air Force Base.................  Mountain Home, ID.
Naval Air Station Meridian...................  Meridian, MS.
Naval Air Station Patuxent River.............  Lexington Park, MD.
Naval Air Weapons Station China Lake.........  Ridgecrest, CA.
Naval Base Kitsap--Keyport...................  Keyport, WA.
Naval Base Ventura County--Point Mugu          Point Mugu, CA.
 Operating Facility.
Naval Weapons Systems Training Facility        Boardman, OR.
 Boardman.
Nellis Air Force Base........................  Las Vegas, NV.
Nevada Test and Training Range...............  Tonopah, NV.
Pacific Missile Range Facility...............  Kekaha, HI.
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.
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* * * * *

Paul M. Rosen,
Assistant Secretary for Investment Security.
[FR Doc. 2023-17678 Filed 8-22-23; 8:45 am]
BILLING CODE 4810-AK-P