[110th Congress Public Law 49]
[From the U.S. Government Printing Office]


[DOCID: f:publ049.110]

[[Page 245]]

          FOREIGN INVESTMENT AND NATIONAL SECURITY ACT OF 2007

[[Page 121 STAT. 246]]

Public Law 110-49
110th Congress

                                 An Act


 
 To ensure national security while promoting foreign investment and the 
 creation and maintenance of jobs, to reform the process by which such 
   investments are examined for any effect they may have on national 
security, to establish the Committee on Foreign Investment in the United 
 States, and for other purposes. <<NOTE: July 26, 2007 -  [H.R. 556]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Foreign Investment and 
National Security Act of 2007. 50 USC app. 2061 note.>> assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

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

SEC. 2. UNITED STATES SECURITY IMPROVEMENT AMENDMENTS; CLARIFICATION OF 
            REVIEW AND INVESTIGATION PROCESS.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended by striking subsections (a) and (b) and inserting the 
following:
    ``(a) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Committee; chairperson.--The terms `Committee' and 
        `chairperson' mean the Committee on Foreign Investment in the 
        United States and the chairperson thereof, respectively.
            ``(2) Control.--The term `control' has the meaning given to 
        such term in regulations which the Committee shall prescribe.
            ``(3) Covered transaction.--The term `covered transaction' 
        means any merger, acquisition, or takeover that is proposed or 
        pending after August 23, 1988, by or with any foreign person 
        which could result in foreign control of any person engaged in 
        interstate commerce in the United States.

[[Page 121 STAT. 247]]

            ``(4) Foreign government-controlled transaction.--The term 
        `foreign government-controlled transaction' means any covered 
        transaction that could result in the control of any person 
        engaged in interstate commerce in the United States by a foreign 
        government or an entity controlled by or acting on behalf of a 
        foreign government.
            ``(5) Clarification.--The term `national security' shall be 
        construed so as to include those issues relating to `homeland 
        security', including its application to critical infrastructure.
            ``(6) Critical infrastructure.--The term `critical 
        infrastructure' means, subject to rules issued under this 
        section, systems and assets, whether physical or virtual, so 
        vital to the United States that the incapacity or destruction of 
        such systems or assets would have a debilitating impact on 
        national security.
            ``(7) Critical technologies.--The term `critical 
        technologies' means critical technology, critical components, or 
        critical technology items essential to national defense, 
        identified pursuant to this section, subject to regulations 
        issued at the direction of the President, in accordance with 
        subsection (h).
            ``(8) Lead agency.--The term `lead agency' means the agency, 
        or agencies, designated as the lead agency or agencies pursuant 
        to subsection (k)(5) for the review of a transaction.

    ``(b) National Security Reviews and Investigations.--
            ``(1) National security reviews.--
                    ``(A) <<NOTE: President.>> In general.--Upon 
                receiving written notification under subparagraph (C) of 
                any covered transaction, or pursuant to a unilateral 
                notification initiated under subparagraph (D) with 
                respect to any covered transaction, the President, 
                acting through the Committee--
                          ``(i) shall review the covered transaction to 
                      determine the effects of the transaction on the 
                      national security of the United States; and
                          ``(ii) shall consider the factors specified in 
                      subsection (f) for such purpose, as appropriate.
                    ``(B) Control by foreign government.--If the 
                Committee determines that the covered transaction is a 
                foreign government-controlled transaction, the Committee 
                shall conduct an investigation of the transaction under 
                paragraph (2).
                    ``(C) Written notice.--
                          ``(i) In general.--Any party or parties to any 
                      covered transaction may initiate a review of the 
                      transaction under this paragraph by submitting a 
                      written notice of the transaction to the 
                      Chairperson of the Committee.
                          ``(ii) Withdrawal of notice.--No covered 
                      transaction for which a notice was submitted under 
                      clause (i) may be withdrawn from review, unless a 
                      written request for such withdrawal is submitted 
                      to the Committee by any party to the transaction 
                      and approved by the Committee.
                          ``(iii) Continuing discussions.--A request for 
                      withdrawal under clause (ii) shall not be 
                      construed to preclude any party to the covered 
                      transaction from continuing informal discussions 
                      with the Committee

[[Page 121 STAT. 248]]

                      or any member thereof regarding possible 
                      resubmission for review pursuant to this 
                      paragraph.
                    ``(D) Unilateral initiation of review.--Subject to 
                subparagraph (F), the President or the Committee may 
                initiate a review under subparagraph (A) of--
                          ``(i) any covered transaction;
                          ``(ii) any covered transaction that has 
                      previously been reviewed or investigated under 
                      this section, if any party to the transaction 
                      submitted false or misleading material information 
                      to the Committee in connection with the review or 
                      investigation or omitted material information, 
                      including material documents, from information 
                      submitted to the Committee; or
                          ``(iii) any covered transaction that has 
                      previously been reviewed or investigated under 
                      this section, if--
                                    ``(I) any party to the transaction 
                                or the entity resulting from 
                                consummation of the transaction 
                                intentionally materially breaches a 
                                mitigation agreement or condition 
                                described in subsection (l)(1)(A);
                                    ``(II) such breach is certified to 
                                the Committee by the lead department or 
                                agency monitoring and enforcing such 
                                agreement or condition as an intentional 
                                material breach; and
                                    ``(III) the Committee determines 
                                that there are no other remedies or 
                                enforcement tools available to address 
                                such breach.
                    ``(E) Timing.--Any <<NOTE: Deadline.>>  review under 
                this paragraph shall be completed before the end of the 
                30-day period beginning on the date of the acceptance of 
                written notice under subparagraph (C) by the 
                chairperson, or beginning on the date of the initiation 
                of the review in accordance with subparagraph (D), as 
                applicable.
                    ``(F) Limit on delegation of certain authority.--The 
                authority of the Committee to initiate a review under 
                subparagraph (D) may not be delegated to any person, 
                other than the Deputy Secretary or an appropriate Under 
                Secretary of the department or agency represented on the 
                Committee.
            ``(2) National security investigations.--
                    ``(A) In general.--In each case described in 
                subparagraph (B), the Committee shall immediately 
                conduct an investigation of the effects of a covered 
                transaction on the national security of the United 
                States, and take any necessary actions in connection 
                with the transaction to protect the national security of 
                the United States.
                    ``(B) Applicability.--Subparagraph (A) shall apply 
                in each case in which--
                          ``(i) a review of a covered transaction under 
                      paragraph (1) results in a determination that--
                                    ``(I) the transaction threatens to 
                                impair the national security of the 
                                United States and that threat has not 
                                been mitigated during or prior to the 
                                review of a covered transaction under 
                                paragraph (1);
                                    ``(II) the transaction is a foreign 
                                government-controlled transaction; or

[[Page 121 STAT. 249]]

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

[[Page 121 STAT. 250]]

                lead agency shall transmit to the members of Congress 
                specified in subparagraph (C)(iii) a certified written 
                report (consistent with the requirements of subsection 
                (c)) on the results of the investigation, unless the 
                matter under investigation has been sent to the 
                President for decision.
                    ``(C) Certification procedures.--
                          ``(i) In general.--Each certified notice and 
                      report required under subparagraphs (A) and (B), 
                      respectively, shall be submitted to the members of 
                      Congress specified in clause (iii), and shall 
                      include--
                                    ``(I) a description of the actions 
                                taken by the Committee with respect to 
                                the transaction; and
                                    ``(II) identification of the 
                                determinative factors considered under 
                                subsection (f).
                          ``(ii) Content of certification.--Each 
                      certified notice and report required under 
                      subparagraphs (A) and (B), respectively, shall be 
                      signed by the chairperson and the head of the lead 
                      agency, and shall state that, in the determination 
                      of the Committee, there are no unresolved national 
                      security concerns with the transaction that is the 
                      subject of the notice or report.
                          ``(iii) Members of congress.--Each certified 
                      notice and report required under subparagraphs (A) 
                      and (B), respectively, shall be transmitted--
                                    ``(I) to the Majority Leader and the 
                                Minority Leader of the Senate;
                                    ``(II) to the chair and ranking 
                                member of the Committee on Banking, 
                                Housing, and Urban Affairs of the Senate 
                                and of any committee of the Senate 
                                having oversight over the lead agency;
                                    ``(III) to the Speaker and the 
                                Minority Leader of the House of 
                                Representatives;
                                    ``(IV) to the chair and ranking 
                                member of the Committee on Financial 
                                Services of the House of Representatives 
                                and of any committee of the House of 
                                Representatives having oversight over 
                                the lead agency; and
                                    ``(V) with respect to covered 
                                transactions involving critical 
                                infrastructure, to the members of the 
                                Senate from the State in which the 
                                principal place of business of the 
                                acquired United States person is 
                                located, and the member from the 
                                Congressional District in which such 
                                principal place of business is located.
                          ``(iv) Signatures; limit on delegation.--
                                    ``(I) In general.--Each certified 
                                notice and report required under 
                                subparagraphs (A) and (B), respectively, 
                                shall be signed by the chairperson and 
                                the head of the lead agency, which 
                                signature requirement may only be 
                                delegated in accordance with subclause 
                                (II).
                                    ``(II) Limitation on delegation of 
                                certifications.--The chairperson and the 
                                head of the lead agency may delegate the 
                                signature requirement under subclause 
                                (I)--
                                            ``(aa) only to an 
                                        appropriate employee of the 
                                        Department of the Treasury (in 
                                        the case

[[Page 121 STAT. 251]]

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

[[Page 121 STAT. 252]]

            ``(6) Notice of results to parties.--The Committee shall 
        notify the parties to a covered transaction of the results of a 
        review or investigation under this section, promptly upon 
        completion of all action under this section.
            ``(7) Regulations.--Regulations prescribed under this 
        section shall include standard procedures for--
                    ``(A) submitting any notice of a covered transaction 
                to the Committee;
                    ``(B) submitting a request to withdraw a covered 
                transaction from review;
                    ``(C) resubmitting a notice of a covered transaction 
                that was previously withdrawn from review; and
                    ``(D) providing notice of the results of a review or 
                investigation to the parties to the covered transaction, 
                upon completion of all action under this section.''.

SEC. 3. STATUTORY ESTABLISHMENT OF THE COMMITTEE ON FOREIGN INVESTMENT 
            IN THE UNITED STATES.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended by striking subsection (k) and inserting the following:
    ``(k) Committee on Foreign Investment in the United States.--
            ``(1) Establishment.--The Committee on Foreign Investment in 
        the United States, established pursuant to Executive Order No. 
        11858, shall be a multi agency committee to carry out this 
        section and such other assignments as the President may 
        designate.
            ``(2) Membership.--The Committee shall be comprised of the 
        following members or the designee of any such member:
                    ``(A) The Secretary of the Treasury.
                    ``(B) The Secretary of Homeland Security.
                    ``(C) The Secretary of Commerce.
                    ``(D) The Secretary of Defense.
                    ``(E) The Secretary of State.
                    ``(F) The Attorney General of the United States.
                    ``(G) The Secretary of Energy.
                    ``(H) The Secretary of Labor (nonvoting, ex 
                officio).
                    ``(I) The Director of National Intelligence 
                (nonvoting, ex officio).
                    ``(J) The heads of any other executive department, 
                agency, or office, as the President determines 
                appropriate, generally or on a case-by-case basis.
            ``(3) Chairperson.--The Secretary of the Treasury shall 
        serve as the chairperson of the Committee.
            ``(4) <<NOTE: Establishment. President.>> Assistant 
        secretary for the department of the treasury.--There shall be 
        established an additional position of Assistant Secretary of the 
        Treasury, who shall be appointed by the President, by and with 
        the advice and consent of the Senate. The Assistant Secretary 
        appointed under this paragraph shall report directly to the 
        Undersecretary of the Treasury for International Affairs. The 
        duties of the Assistant Secretary shall include duties related 
        to the Committee on Foreign Investment in the United States, as 
        delegated by the Secretary of the Treasury under this section.
            ``(5) Designation of lead agency.--The Secretary of the 
        Treasury shall designate, as appropriate, a member or members

[[Page 121 STAT. 253]]

        of the Committee to be the lead agency or agencies on behalf of 
        the Committee--
                    ``(A) for each covered transaction, and for 
                negotiating any mitigation agreements or other 
                conditions necessary to protect national security; and
                    ``(B) for all matters related to the monitoring of 
                the completed transaction, to ensure compliance with 
                such agreements or conditions and with this section.
            ``(6) Other members.--The chairperson shall consult with the 
        heads of such other Federal departments, agencies, and 
        independent establishments in any review or investigation under 
        subsection (a), as the chairperson determines to be appropriate, 
        on the basis of the facts and circumstances of the covered 
        transaction under review or investigation (or the designee of 
        any such department or agency head).
            ``(7) Meetings.--The Committee shall meet upon the direction 
        of the President or upon the call of the chairperson, without 
        regard to section 552b of title 5, United States Code (if 
        otherwise applicable).''.

SEC. 4. ADDITIONAL FACTORS FOR CONSIDERATION.

    Section 721(f) of the Defense Production Act of 1950 (50 U.S.C. App. 
2170(f)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``among other factors'';
            (2) in paragraph (4)--
                    (A) in subparagraph (A) by striking ``or'' at the 
                end;
                    (B) by redesignating subparagraph (B) as 
                subparagraph (C);
                    (C) by inserting after subparagraph (A) the 
                following:
                    ``(B) identified by the Secretary of Defense as 
                posing a potential regional military threat to the 
                interests of the United States; or''; and
                    (D) by striking ``and'' at the end;
            (3) in paragraph (5), by striking the period at the end and 
        inserting a semicolon; and
            (4) by adding at the end the following:
            ``(6) the potential national security-related effects on 
        United States critical infrastructure, including major energy 
        assets;
            ``(7) the potential national security-related effects on 
        United States critical technologies;
            ``(8) whether the covered transaction is a foreign 
        government-controlled transaction, as determined under 
        subsection (b)(1)(B);
            ``(9) as appropriate, and particularly with respect to 
        transactions requiring an investigation under subsection 
        (b)(1)(B), a review of the current assessment of--
                    ``(A) the adherence of the subject country to 
                nonproliferation control regimes, including treaties and 
                multilateral supply guidelines, which shall draw on, but 
                not be limited to, the annual report on `Adherence to 
                and Compliance with Arms Control, Nonproliferation and 
                Disarmament Agreements and Commitments' required by 
                section 403 of the Arms Control and Disarmament Act;
                    ``(B) the relationship of such country with the 
                United States, specifically on its record on cooperating 
                in counter-terrorism efforts, which shall draw on, but 
                not be limited

[[Page 121 STAT. 254]]

                to, the report of the President to Congress under 
                section 7120 of the Intelligence Reform and Terrorism 
                Prevention Act of 2004; and
                    ``(C) the potential for transshipment or diversion 
                of technologies with military applications, including an 
                analysis of national export control laws and 
                regulations;
            ``(10) the long-term projection of United States 
        requirements for sources of energy and other critical resources 
        and material; and
            ``(11) such other factors as the President or the Committee 
        may determine to be appropriate, generally or in connection with 
        a specific review or investigation.''.

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

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended by adding at the end the following:
    ``(l) Mitigation, Tracking, and Postconsummation Monitoring and 
Enforcement.--
            ``(1) Mitigation.--
                    ``(A) In general.--The Committee or a lead agency 
                may, on behalf of the Committee, negotiate, enter into 
                or impose, and enforce any agreement or condition with 
                any party to the covered transaction in order to 
                mitigate any threat to the national security of the 
                United States that arises as a result of the covered 
                transaction.
                    ``(B) Risk-based analysis required.--Any agreement 
                entered into or condition imposed under subparagraph (A) 
                shall be based on a risk-based analysis, conducted by 
                the Committee, of the threat to national security of the 
                covered transaction.
            ``(2) Tracking authority for withdrawn notices.--
                    ``(A) In general.--If any written notice of a 
                covered transaction that was submitted to the Committee 
                under this section is withdrawn before any review or 
                investigation by the Committee under subsection (b) is 
                completed, the Committee shall establish, as 
                appropriate--
                          ``(i) interim protections to address specific 
                      concerns with such transaction that have been 
                      raised in connection with any such review or 
                      investigation pending any resubmission of any 
                      written notice under this section with respect to 
                      such transaction and further action by the 
                      President under this section;
                          ``(ii) specific time frames for resubmitting 
                      any such written notice; and
                          ``(iii) a process for tracking any actions 
                      that may be taken by any party to the transaction, 
                      in connection with the transaction, before the 
                      notice referred to in clause (ii) is resubmitted.
                    ``(B) Designation of agency.--The lead agency, other 
                than any entity of the intelligence community (as 
                defined in the National Security Act of 1947), shall, on 
                behalf of the Committee, ensure that the requirements of 
                subparagraph (A) with respect to any covered transaction 
                that is subject to such subparagraph are met.
            ``(3) Negotiation, modification, monitoring, and 
        enforcement.--

[[Page 121 STAT. 255]]

                    ``(A) Designation of lead agency.--The lead agency 
                shall negotiate, modify, monitor, and enforce, on behalf 
                of the Committee, any agreement entered into or 
                condition imposed under paragraph (1) with respect to a 
                covered transaction, based on the expertise with and 
                knowledge of the issues related to such transaction on 
                the part of the designated department or agency. Nothing 
                in this paragraph shall prohibit other departments or 
                agencies in assisting the lead agency in carrying out 
                the purposes of this paragraph.
                    ``(B) Reporting by designated agency.--
                          ``(i) Modification reports.--The lead agency 
                      in connection with any agreement entered into or 
                      condition imposed with respect to a covered 
                      transaction shall--
                                    ``(I) provide periodic reports to 
                                the Committee on any material 
                                modification to any such agreement or 
                                condition imposed with respect to the 
                                transaction; and
                                    ``(II) ensure that any material 
                                modification to any such agreement or 
                                condition is reported to the Director of 
                                National Intelligence, the Attorney 
                                General of the United States, and any 
                                other Federal department or agency that 
                                may have a material interest in such 
                                modification.
                          ``(ii) Compliance.--The Committee shall 
                      develop and agree upon methods for evaluating 
                      compliance with any agreement entered into or 
                      condition imposed with respect to a covered 
                      transaction that will allow the Committee to 
                      adequately assure compliance, with- out--
                                    ``(I) unnecessarily diverting 
                                Committee resources from assessing any 
                                new covered transaction for which a 
                                written notice has been filed pursuant 
                                to subsection (b)(1)(C), and if 
                                necessary, reaching a mitigation 
                                agreement with or imposing a condition 
                                on a party to such covered transaction 
                                or any covered transaction for which a 
                                review has been reopened for any reason; 
                                or
                                    ``(II) placing unnecessary burdens 
                                on a party to a covered transaction.''.

SEC. 6. ACTION BY THE PRESIDENT.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended by striking subsections (d) and (e) and inserting the 
following:
    ``(d) Action by the President.--
            ``(1) In general.--Subject to paragraph (4), the President 
        may take such action for such time as the President considers 
        appropriate to suspend or prohibit any covered transaction that 
        threatens to impair the national security of the United States.
            ``(2) <<NOTE: Deadline.>> Announcement by the president.--
        The President shall announce the decision on whether or not to 
        take action pursuant to paragraph (1) not later than 15 days 
        after the date on which an investigation described in subsection 
        (b) is completed.

[[Page 121 STAT. 256]]

            ``(3) Enforcement.--The President may direct the Attorney 
        General of the United States to seek appropriate relief, 
        including divestment relief, in the district courts of the 
        United States, in order to implement and enforce this 
        subsection.
            ``(4) Findings of the president.--The President may exercise 
        the authority conferred by paragraph (1), only if the President 
        finds that--
                    ``(A) there is credible evidence that leads the 
                President to believe that the foreign interest 
                exercising control might take action that threatens to 
                impair the national security; and
                    ``(B) provisions of law, other than this section and 
                the International Emergency Economic Powers Act, do not, 
                in the judgment of the President, provide adequate and 
                appropriate authority for the President to protect the 
                national security in the matter before the President.
            ``(5) Factors to be considered.--For purposes of determining 
        whether to take action under paragraph (1), the President shall 
        consider, among other factors each of the factors described in 
        subsection (f), as appropriate.

    ``(e) Actions and Findings Nonreviewable.--The actions of the 
President under paragraph (1) of subsection (d) and the findings of the 
President under paragraph (4) of subsection (d) shall not be subject to 
judicial review.''.

SEC. 7. INCREASED OVERSIGHT BY CONGRESS.

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

[[Page 121 STAT. 257]]

    (b) Annual Report.--Section 721 of the Defense Production Act of 
1950 (50 U.S.C. App. 2170) is amended by adding at the end the 
following:
    ``(m) Annual Report to Congress.--
            ``(1) In general.--The chairperson shall transmit a report 
        to the chairman and ranking member of the committee of 
        jurisdiction in the Senate and the House of Representatives, 
        before July 31 of each year on all of the reviews and 
        investigations of covered transactions completed under 
        subsection (b) during the 12-month period covered by the report.
            ``(2) Contents of report relating to covered transactions.--
        The annual report under paragraph (1) shall contain the 
        following information, with respect to each covered transaction, 
        for the reporting period:
                    ``(A) A list of all notices filed and all reviews or 
                investigations completed during the period, with basic 
                information on each party to the transaction, the nature 
                of the business activities or products of all pertinent 
                persons, along with information about any withdrawal 
                from the process, and any decision or action by the 
                President under this section.
                    ``(B) Specific, cumulative, and, as appropriate, 
                trend information on the numbers of filings, 
                investigations, withdrawals, and decisions or actions by 
                the President under this section.
                    ``(C) Cumulative and, as appropriate, trend 
                information on the business sectors involved in the 
                filings which have been made, and the countries from 
                which the investments have originated.
                    ``(D) Information on whether companies that withdrew 
                notices to the Committee in accordance with subsection 
                (b)(1)(C)(ii) have later refiled such notices, or, 
                alternatively, abandoned the transaction.
                    ``(E) The types of security arrangements and 
                conditions the Committee has used to mitigate national 
                security concerns about a transaction, including a 
                discussion of the methods that the Committee and any 
                lead agency are using to determine compliance with such 
                arrangements or conditions.
                    ``(F) A detailed discussion of all perceived adverse 
                effects of covered transactions on the national security 
                or critical infrastructure of the United States that the 
                Committee will take into account in its deliberations 
                during the period before delivery of the next report, to 
                the extent possible.
            ``(3) Contents of report relating to critical 
        technologies.--
                    ``(A) <<NOTE: President.>> In general.--In order to 
                assist Congress in its oversight responsibilities with 
                respect to this section, the President and such agencies 
                as the President shall designate shall include in the 
                annual report submitted under paragraph (1)--
                          ``(i) an evaluation of whether there is 
                      credible evidence of a coordinated strategy by 1 
                      or more countries or companies to acquire United 
                      States companies involved in research, 
                      development, or production of

[[Page 121 STAT. 258]]

                      critical technologies for which the United States 
                      is a leading producer; and
                          ``(ii) an evaluation of whether there are 
                      industrial espionage activities directed or 
                      directly assisted by foreign governments against 
                      private United States companies aimed at obtaining 
                      commercial secrets related to critical 
                      technologies.
                    ``(B) Release of unclassified study.--All 
                appropriate portions of the annual report under 
                paragraph (1) may be classified. An unclassified version 
                of the report, as appropriate, consistent with 
                safeguarding national security and privacy, shall be 
                made available to the public.''.

    (c) <<NOTE: 50 USC app. 2170 note.>> Study and Report.--
            (1) Study required.--Before the end of the 120-day period 
        beginning on the date of enactment of this Act and annually 
        thereafter, the Secretary of the Treasury, in consultation with 
        the Secretary of State and the Secretary of Commerce, shall 
        conduct a study on foreign direct investments in the United 
        States, especially investments in critical infrastructure and 
        industries affecting national security, by--
                    (A) foreign governments, entities controlled by or 
                acting on behalf of a foreign government, or persons of 
                foreign countries which comply with any boycott of 
                Israel; or
                    (B) foreign governments, entities controlled by or 
                acting on behalf of a foreign government, or persons of 
                foreign countries which do not ban organizations 
                designated by the Secretary of State as foreign 
                terrorist organizations.
            (2) Report.--Before the end of the 30-day period beginning 
        upon the date of completion of each study under paragraph (1), 
        and thereafter in each annual report under section 721(m) of the 
        Defense Production Act of 1950 (as added by this section), the 
        Secretary of the Treasury shall submit a report to Congress, for 
        transmittal to all appropriate committees of the Senate and the 
        House of Representatives, containing the findings and 
        conclusions of the Secretary with respect to the study described 
        in paragraph (1), together with an analysis of the effects of 
        such investment on the national security of the United States 
        and on any efforts to address those effects.

    (d) Investigation by Inspector General.--
            (1) In general.--The Inspector General of the Department of 
        the Treasury shall conduct an independent investigation to 
        determine all of the facts and circumstances concerning each 
        failure of the Department of the Treasury to make any report to 
        the Congress that was required under section 721(k) of the 
        Defense Production Act of 1950, as in effect on the day before 
        the date of enactment of this Act.
            (2) Report to the congress.--Before the end of the 270-day 
        period beginning on the date of enactment of this Act, the 
        Inspector General of the Department of the Treasury shall submit 
        a report on the investigation under paragraph (1) containing the 
        findings and conclusions of the Inspector General, to the 
        chairman and ranking member of each committee of the Senate and 
        the House of Representatives having jurisdiction over any aspect 
        of the report, including, at a minimum, the Committee on Foreign 
        Relations, the Committee on Banking, Housing, and Urban Affairs, 
        and the Committee on Commerce, Science, and Transportation of 
        the Senate, and the Committee

[[Page 121 STAT. 259]]

        on Foreign Affairs, the Committee on Financial Services, and the 
        Committee on Energy and Commerce of the House of 
        Representatives.

SEC. 8. CERTIFICATION OF NOTICES AND ASSURANCES.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended by adding at the end the following:
    ``(n) Certification of Notices and Assurances.--Each notice, and any 
followup information, submitted under this section and regulations 
prescribed under this section to the President or the Committee by a 
party to a covered transaction, and any information submitted by any 
such party in connection with any action for which a report is required 
pursuant to paragraph (3)(B) of subsection (l), with respect to the 
implementation of any mitigation agreement or condition described in 
paragraph (1)(A) of subsection (l), or any material change in 
circumstances, shall be accompanied by a written statement by the chief 
executive officer or the designee of the person required to submit such 
notice or information certifying that, to the best of the knowledge and 
belief of that person--
            ``(1) the notice or information submitted fully complies 
        with the requirements of this section or such regulation, 
        agreement, or condition; and
            ``(2) the notice or information is accurate and complete in 
        all material respects.''.

SEC. 9. REGULATIONS.

    Section 721(h) of the Defense Production Act of 1950 (50 U.S.C. App. 
2170(h)) is amended to read as follows:
    ``(h) Regulations.--
            ``(1) <<NOTE: President.>> In general.--The President shall 
        direct, subject to notice and comment, the issuance of 
        regulations to carry out this section.
            ``(2) Effective date.--Regulations issued under this section 
        shall become effective not later than 180 days after the 
        effective date of the Foreign Investment and National Security 
        Act of 2007.
            ``(3) Content.--Regulations issued under this subsection 
        shall--
                    ``(A) provide for the imposition of civil penalties 
                for any violation of this section, including any 
                mitigation agreement entered into or conditions imposed 
                pursuant to subsection (l);
                    ``(B) to the extent possible--
                          ``(i) minimize paperwork burdens; and
                          ``(ii) coordinate reporting requirements under 
                      this section with reporting requirements under any 
                      other provision of Federal law; and
                    ``(C) provide for an appropriate role for the 
                Secretary of Labor with respect to mitigation 
                agreements.''.

SEC. 10. EFFECT ON OTHER LAW.

    Section 721(i) of the Defense Production Act of 1950 (50 U.S.C. App. 
2170(i)) is amended to read as follows:
    ``(i) Effect on Other Law.--No provision of this section shall be 
construed as altering or affecting any other authority, process, 
regulation, investigation, enforcement measure, or review provided by or 
established under any other provision of Federal law, including the 
International Emergency Economic Powers Act, or

[[Page 121 STAT. 260]]

any other authority of the President or the Congress under the 
Constitution of the United States.''.

SEC. 11. CLERICAL AMENDMENTS.

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

SEC. 12. <<NOTE: 5 USC 5315 note.>> EFFECTIVE DATE.

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

    Approved July 26, 2007.

LEGISLATIVE HISTORY--H.R. 556 (S. 1610):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 110-24, Pt. 1 (Comm. Financial Services).
SENATE REPORTS: No. 110-80 accompanying S. 1610 (Comm. on Banking, 
Housing, and Urban Affairs).
CONGRESSIONAL RECORD, Vol. 153 (2007):
            Feb. 28, considered and passed House.
            June 29, considered and passed Senate, amended, in lieu of 
                S. 1610.
            June 10, 11, House considered and concurred in Senate 
                amendment.

                                  <all>