Summary
(This measure has not been amended since it was passed by the Senate on June 29, 2007. The summary of that version is repeated here.)
Foreign Investment and National Security Act of 2007 - (Sec. 2) Amends the Defense Production Act of 1950 to revise provisions concerning presidential authority to review certain mergers, acquisitions, and takeovers to direct the President, acting through the Committee on Foreign Investment in the United States (CFIUS), and upon receiving written notification from any parties to a possible merger, acquisition or takeover proposed or pending after August 23, 1988, which could result in foreign control of any person engaged in interstate commerce (covered transaction), to review such covered transaction to determine its effects on national security. Requires CFIUS to investigate a covered transaction which it determines is a foreign government-controlled transaction. Permits any party to a covered transaction to initiate a review by submitting a written notice of the transaction to CFIUS. Authorizes the President or CFIUS to initiate a review of: (1) any covered transaction; (2) any covered transaction that has been previously reviewed or investigated, if any party submitted false or misleading material information; or (3) any covered transaction that has been previously reviewed or investigated, if any party intentionally materially breaches a mitigation agreement or condition imposed on the transaction.
Requires CFIUS to immediately conduct an investigation of the effects of certain covered transactions on national security and to take necessary actions to protect the national security, if a review results in a determination that: (1) the transaction threatens to impair national security and that threat has not been mitigated, or the transaction is a foreign government-controlled transaction; (2) the transaction would result in control of any U.S. critical infrastructure by a foreign person, if CFIUS determines that the transaction could impair national security and that impairment has not been properly mitigated; or (3) the lead agency for each covered transaction recommends, and CFIUS concurs, that an investigation be undertaken. Requires such investigations to be completed within 45 days. Provides that an investigation of a foreign government-controlled transaction or one involving a critical infrastructure will not be required if the Secretary of the Treasury and the head of the lead agency jointly determine that the transaction will not impair national security.
Requires the chairperson of CFIUS: (1) to publish in the Federal Register guidance on the types of transactions that CFIUS has reviewed and that have presented national security considerations; and (2) and head of the lead agency to transmit to specified Members of Congress a certified notice and written report concerning each investigation of a covered transaction.
Requires the Director of National Intelligence to conduct an analysis of any threat to national security posed by a covered transaction.
(Sec. 3) Establishes: (1) CFIUS as a multi-agency statutory committee and revises its membership; and (2) an additional Assistant Secretary of the Treasury to perform CFIUS-related duties. Requires the Secretary to designate a CFIUS member(s) to act as the lead agency or agencies with respect to a covered transaction.
(Sec. 4) Adds several factors to be considered by the President in evaluating a covered transaction, including whether the proposed transaction: (1) has national security-related effects on U.S. critical technologies; and (2) is a foreign government-controlled transaction.
(Sec. 5) Authorizes CFIUS or a lead agency to enter into agreements with parties to a covered transaction to mitigate any threat to national security. Requires the lead agency to negotiate, modify, monitor, and enforce such agreements. Requires designated agencies to provide periodic reports to CFIUS on the implementation of any agreements or conditions.
(Sec. 6) Authorizes the President to suspend or prohibit any covered transaction that threatens to impair national security. (Current law authorizes the President to suspend or prohibit a transaction by or with foreign persons so that their control will not threaten to impair national security.) Requires (under current law, authorizes) the President to consider specified factors (including those added in this Act) when determining whether to suspend or prohibit a covered transaction.
(Sec. 7) Requires: (1) upon request, CFIUS to brief certain Members of Congress of covered transactions for which action has concluded; and (2) CFIUS annual reports to Congress after completed investigations. Requires specific report information with respect to possible foreign acquisition of U.S. companies involved in the research, development, or production of critical technologies, as well as possible industrial espionage activities.
Requires the Secretary to: (1) annually study foreign direct investments in the United States, especially investments in critical infrastructure and industries affecting national security by foreign governments (or their agents) which comply with any boycott of Israel or do not ban terrorist organizations; and (2) report each study's results to Congress. Directs the Inspector General of the Treasury to: (1) conduct an investigation of each failure of the Department of the Treasury to make any report required by CFIUS; and (2) report to the appropriate congressional committees on investigation results.
(Sec. 8) Requires the certification of information submitted by a party to a covered transaction.
Foreign Investment and National Security Act of 2007 - (Sec. 2) Amends the Defense Production Act of 1950 to revise provisions concerning presidential authority to review certain mergers, acquisitions, and takeovers to direct the President, acting through the Committee on Foreign Investment in the United States (CFIUS), and upon receiving written notification from any parties to a possible merger, acquisition or takeover proposed or pending after August 23, 1988, which could result in foreign control of any person engaged in interstate commerce (covered transaction), to review such covered transaction to determine its effects on national security. Requires CFIUS to investigate a covered transaction which it determines is a foreign government-controlled transaction. Permits any party to a covered transaction to initiate a review by submitting a written notice of the transaction to CFIUS. Authorizes the President or CFIUS to initiate a review of: (1) any covered transaction; (2) any covered transaction that has been previously reviewed or investigated, if any party submitted false or misleading material information; or (3) any covered transaction that has been previously reviewed or investigated, if any party intentionally materially breaches a mitigation agreement or condition imposed on the transaction.
Requires CFIUS to immediately conduct an investigation of the effects of certain covered transactions on national security and to take necessary actions to protect the national security, if a review results in a determination that: (1) the transaction threatens to impair national security and that threat has not been mitigated, or the transaction is a foreign government-controlled transaction; (2) the transaction would result in control of any U.S. critical infrastructure by a foreign person, if CFIUS determines that the transaction could impair national security and that impairment has not been properly mitigated; or (3) the lead agency for each covered transaction recommends, and CFIUS concurs, that an investigation be undertaken. Requires such investigations to be completed within 45 days. Provides that an investigation of a foreign government-controlled transaction or one involving a critical infrastructure will not be required if the Secretary of the Treasury and the head of the lead agency jointly determine that the transaction will not impair national security.
Requires the chairperson of CFIUS: (1) to publish in the Federal Register guidance on the types of transactions that CFIUS has reviewed and that have presented national security considerations; and (2) and head of the lead agency to transmit to specified Members of Congress a certified notice and written report concerning each investigation of a covered transaction.
Requires the Director of National Intelligence to conduct an analysis of any threat to national security posed by a covered transaction.
(Sec. 3) Establishes: (1) CFIUS as a multi-agency statutory committee and revises its membership; and (2) an additional Assistant Secretary of the Treasury to perform CFIUS-related duties. Requires the Secretary to designate a CFIUS member(s) to act as the lead agency or agencies with respect to a covered transaction.
(Sec. 4) Adds several factors to be considered by the President in evaluating a covered transaction, including whether the proposed transaction: (1) has national security-related effects on U.S. critical technologies; and (2) is a foreign government-controlled transaction.
(Sec. 5) Authorizes CFIUS or a lead agency to enter into agreements with parties to a covered transaction to mitigate any threat to national security. Requires the lead agency to negotiate, modify, monitor, and enforce such agreements. Requires designated agencies to provide periodic reports to CFIUS on the implementation of any agreements or conditions.
(Sec. 6) Authorizes the President to suspend or prohibit any covered transaction that threatens to impair national security. (Current law authorizes the President to suspend or prohibit a transaction by or with foreign persons so that their control will not threaten to impair national security.) Requires (under current law, authorizes) the President to consider specified factors (including those added in this Act) when determining whether to suspend or prohibit a covered transaction.
(Sec. 7) Requires: (1) upon request, CFIUS to brief certain Members of Congress of covered transactions for which action has concluded; and (2) CFIUS annual reports to Congress after completed investigations. Requires specific report information with respect to possible foreign acquisition of U.S. companies involved in the research, development, or production of critical technologies, as well as possible industrial espionage activities.
Requires the Secretary to: (1) annually study foreign direct investments in the United States, especially investments in critical infrastructure and industries affecting national security by foreign governments (or their agents) which comply with any boycott of Israel or do not ban terrorist organizations; and (2) report each study's results to Congress. Directs the Inspector General of the Treasury to: (1) conduct an investigation of each failure of the Department of the Treasury to make any report required by CFIUS; and (2) report to the appropriate congressional committees on investigation results.
(Sec. 8) Requires the certification of information submitted by a party to a covered transaction.
National Security Foreign Investment Reform and Strengthened Transparency Act of 2007 - (Sec. 2) Amends the Defense Production Act of 1950 to direct the President, acting through the Committee on Foreign Investment in the United States (CFIUS), when receiving written notification of a possible merger, acquisition, or takeover which could result in foreign control of any person engaged in interstate commerce (covered transaction), upon receiving a request from CFIUS, a committee member acting on behalf of CFIUS, or upon the President's own initiative to review such covered transaction to determine its effects on national security. Requires CFIUS to investigate a covered transaction which it determines is a foreign government-controlled transaction. Permits any party to any covered transaction to initiate a review of a covered transaction by submitting a written notice of the transaction to CFIUS.
Directs the President, acting through CFIUS, to conduct an investigation of the effects of certain covered transactions on national security and to take any necessary steps to protect national security, if a review of a covered transaction results in a determination that: (1) the transaction threatens to impair national security and that threat has not been mitigated or the transaction is a foreign government-controlled transaction; (2) a CFIUS roll call vote on any covered transaction results in at least one vote by a Committee member against approving the transaction; or (3) the Director of National Intelligence identifies particularly complex intelligence concerns that could threaten to impair national security of the United States and CFIUS members were not able to develop and agree upon measures to mitigate satisfactorily those threats during the initial review. Provides that, notwithstanding clause (2), an investigation of a foreign government-controlled transaction will not be required under this paragraph if the Secretary of the Treasury, the Secretary of Homeland Security, and the Secretary of Commerce determine, on the basis of the review, that the transaction will not affect the national security of the United States and no agreement or condition is required, with respect to the transaction, to mitigate any threat to the national security.
Requires such investigations to be completed within 45 days (with an extension in limited cases). Requires, for any review or investigation of a covered transaction to be treated as final, approval by a majority roll call vote of CFIUS members and the signatures of of the Secretaries the Treasury, Homeland Security, and Commerce. Requires, in the case of any CFIUS roll call vote in connection with an investigation of any foreign government-controlled transaction in which there is at least one vote by a Committee member against approving the transaction, the investigation shall not be treated as final or complete until the findings and report resulting from such investigation are signed by the President, in addition to the Chairperson and the Vice Chairpersons of CFIUS. Requires that, in the case of a covered transaction in which a party is a person of a country the government of which has repeatedly provided support for acts of international terrorism, no review or investigation will be considered final until the results are approved and signed by the President.
Requires the DNI to conduct an analysis of any threat to national security posed by a covered transaction.
(Sec. 3) Establishes CFIUS as a multi-agency statutory committee and revises the membership of such committee. Authorizes appropriations.
(Sec. 4) Makes the consideration of specified factors in evaluating a covered transaction mandatory (currently, discretionary with the President). Adds to the list of such factors whether the covered transaction: (1) has a security-related impact on U.S. critical infrastructure; (2) has potential effects on U.S. efforts to curtail human smuggling and drug smuggling; (3) is a foreign-government-controlled transaction; and (4) such other factors as the President determines appropriate.
(Sec. 5) Exempts the United States from liability for any losses or other expenses incurred by any party to a covered transaction as a result of any review or investigation after a covered transaction has been consummated if, before consummating the transaction, the party did not submit a written notice of the transaction to the CFIUS, did not wait until the completion of any review or investigation, or until 15 days after an investigation is completed.
(Sec. 6) Authorizes CFIUS to: (1) enter into agreements with parties to a covered transaction to mitigate any threat to national security; and (2) designate one or more lead federal agencies to negotiate, modify, monitor, and enforce such agreements. Requires designated agencies to provide periodic reports to CFIUS on the implementation of any agreements or conditions.
Establishes a method of tracking transactions which are withdrawn from the review or investigation process and a process for setting interim protections to address specific national security concerns relating to such transactions.
Requires CFIUS to develop methods for evaluating compliance with any agreement entered into or condition imposed with respect to a covered transaction.
(Sec. 7) Requires: (1) CFIUS reports to Congress after completed investigations; (2) congressional briefing on a covered transaction, or on compliance with a mitigation agreement or condition, if requested by a Member of Congress; and (3) annual CFIUS reports to appropriate congressional committees on all reviews and investigations conducted. Requires specific report information with respect to possible foreign acquisition of U.S. companies involved in the research, development, or production of critical technologies.
Requires the Secretary of the Treasury to: (1) annually study investments in the United States, especially investments in critical infrastructure and industries affecting national security by foreign governments or their agents which comply with any boycott of Israel or which do not ban foreign terrorist organizations; and (2) report each study's results to Congress.
Directs the Inspector General of the Treasury to: (1) conduct an independent investigation of each failure of the Department of the Treasury to make any report to Congress required by CFIUS; and (2) report to the appropriate congressional committees on investigation results.
(Sec. 8) Requires the certification of information submitted by a party to a covered transaction.
(Sec. 11) Makes the amendments made by this Act effective 90 days after enactment.
(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)
National Security Foreign Investment Reform and Strengthened Transparency Act of 2007 - (Sec. 2) Amends the Defense Production Act of 1950 to direct the President, acting through the Committee on Foreign Investment in the United States (CFIUS), when receiving written notification of a possible merger, acquisition, or takeover which could result in foreign control of any person engaged in interstate commerce (covered transaction), upon receiving a request from CFIUS, a committee member acting on behalf of CFIUS, or upon the President's own initiative to review such covered transaction to determine its effects on national security. Requires CFIUS to investigate a covered transaction which it determines is a foreign government-controlled transaction. Permits any party to any covered transaction to initiate a review of a covered transaction by submitting a written notice of the transaction to CFIUS.
Directs the President, acting through CFIUS, to conduct an investigation of the effects of certain covered transactions on national security and to take any necessary steps to protect national security, if a review of a covered transaction results in a determination that: (1) the transaction threatens to impair national security and that threat has not been mitigated or the transaction is a foreign government-controlled transaction; (2) a CFIUS roll call vote on any covered transaction results in at least one vote by a Committee member against approving the transaction; or (3) the Director of National Intelligence identifies particularly complex intelligence concerns that could threaten to impair national security of the United States and CFIUS members were not able to develop and agree upon measures to mitigate satisfactorily those threats during the initial review. Provides that, notwithstanding clause (2), an investigation of a foreign government-controlled transaction will not be required under this paragraph if the Secretary of the Treasury, the Secretary of Homeland Security, and the Secretary of Commerce determine, on the basis of the review, that the transaction will not affect the national security of the United States and no agreement or condition is required, with respect to the transaction, to mitigate any threat to the national security.
Requires such investigations to be completed within 45 days (with an extension in limited cases). Requires, for any review or investigation of a covered transaction to be treated as final, approval by a majority roll call vote of CFIUS members and the signatures of of the Secretaries the Treasury, Homeland Security, and Commerce. Requires, in the case of any CFIUS roll call vote in connection with an investigation of any foreign government-controlled transaction in which there is at least one vote by a Committee member against approving the transaction, the investigation shall not be treated as final or complete until the findings and report resulting from such investigation are signed by the President, in addition to the Chairperson and the Vice Chairpersons of CFIUS. Requires that, in the case of a covered transaction in which a party is a person of a country the government of which has repeatedly provided support for acts of international terrorism, no review or investigation will be considered final until the results are approved and signed by the President.
Requires the DNI to conduct an analysis of any threat to national security posed by a covered transaction.
(Sec. 3) Establishes CFIUS as a multi-agency statutory committee and revises the membership of such committee. Authorizes appropriations.
(Sec. 4) Makes the consideration of specified factors in evaluating a covered transaction mandatory (currently, discretionary with the President). Adds to the list of such factors whether the covered transaction: (1) has a security-related impact on U.S. critical infrastructure; (2) is a foreign-government-controlled transaction; and (3) such other factors as the President determines appropriate.
(Sec. 5) Exempts the United States from liability for any losses or other expenses incurred by any party to a covered transaction as a result of any review or investigation after a covered transaction has been consummated if, before consummating the transaction, the party did not submit a written notice of the transaction to the CFIUS, did not wait until the completion of any review or investigation, or until 15 days after an investigation is completed.
(Sec. 6) Authorizes CFIUS to: (1) enter into agreements with parties to a covered transaction to mitigate any threat to national security; and (2) designate one or more lead federal agencies to negotiate, modify, monitor, and enforce such agreements. Requires designated agencies to provide periodic reports to CFIUS on the implementation of any agreements or conditions.
Establishes a method of tracking transactions which are withdrawn from the review or investigation process and a process for setting interim protections to address specific national security concerns relating to such transactions.
(Sec. 7) Requires: (1) CFIUS reports to Congress after completed investigations; (2) congressional briefing on a covered transaction, if requested by a Member of Congress; and (3) annual CFIUS reports to appropriate congressional committees on all reviews and investigations conducted. Requires specific report information with respect to possible foreign acquisition of U.S. companies involved in the research, development, or production of critical technologies.
Requires the Secretary of the Treasury to: (1) study investments in the United States, especially investments in critical infrastructure and industries affecting national security by foreign governments or their agents which comply with any boycott of Israel or which do not ban foreign terrorist organizations; and (2) report study results to Congress.
(Sec. 8) Requires the certification of information submitted by a party to a covered transaction.
(Sec. 11) Makes the amendments made by this Act effective 90 days after enactment.
National Security Foreign Investment Reform and Strengthened Transparency Act of 2007 - Amends the Defense Production Act of 1950 (DPA) to direct the President, upon receiving written notification of a possible merger, acquisition, or takeover which could result in foreign control of any person engaged in interstate commerce (covered transaction), or upon a motion of the President, the Committee on Foreign Investment in the United States (CFIUS), or a committee member, to review such covered transaction to determine its effects on national security.
Requires CFIUS to investigate a covered transaction which it determines is a foreign government-controlled transaction.
Directs the President to conduct an investigation of the effects of certain covered transactions on national security and to take any necessary steps to protect national security.
Requires any review or investigation of a covered transaction to be approved by a majority roll call vote of CFIUS members and be signed by the Secretaries of the Treasury, Homeland Security, and Commerce.
Requires the Director of National Intelligence to conduct an analysis of any threat to national security posed by a covered transaction.
Establishes CFIUS as a multi-agency statutory committee and revises the membership of such committee.
Makes the consideration of specified factors in evaluating a covered transaction mandatory (currently, discretionary with the President). Adds to the list of such factors.
Authorizes CFIUS to: (1) enter into agreements with parties to a covered transaction to mitigate any threat to national security; and (2) designate a lead federal agency to negotiate, modify, monitor, and enforce such agreements.
Establishes a method of tracking covered transactions which are withdrawn from the review or investigation process and a process for setting interim protections to address specific national security concerns relating to such transactions.
Requires the Secretary of the Treasury to study investments in the United States, especially investments in critical infrastructure and industries affecting national security by foreign governments or their agents which comply with any boycott of Israel or which do not ban foreign terrorist organizations.
Track this bill on CivicBeacon
Get push notifications when this bill is updated, contact your reps, and take action.
![Rep. Maloney, Carolyn B. [D-NY-14]](https://bioguide.congress.gov/bioguide/photo/M/M000087.jpg)
