[United States Statutes at Large, Volume 121, 110th Congress, 1st Session]
[From the U.S. Government Publishing Office, www.gpo.gov]

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.
``(4) Foreign government-controlled transaction.--The term
`foreign government-controlled transaction' means any

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121 STAT. 247

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 or any member thereof regarding
possible resubmission for review pursuant to this
paragraph.

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121 STAT. 248

``(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
``(III) the transaction would result
in control of any critical
infrastructure of or within the

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121 STAT. 249

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 lead agency shall transmit to the
members of Congress specified in subparagraph (C)(iii) a
certified written report

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121 STAT. 250

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

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121 STAT. 251

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.
``(6) Notice of results to parties.--The Committee shall
notify the parties to a covered transaction of the results of

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121 STAT. 252

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 of
the Committee to be the lead agency or agencies on behalf of the
Committee--

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121 STAT. 253

``(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 to, the report of the President to
Congress under section

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121 STAT. 254

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.--

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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.

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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.''.

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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

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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 259]]
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 260]]
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. on 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.