WASHINGTON, JULY 12, 2006 - "Open and transparent investment policies contribute toward greater economic growth through foreign investments," stated Rep. Cliff Stearns (R-FL), Chairman of the Commerce, Trade & Consumer Protection Subcommittee. "And, in this post-9/11 world, we must remain vigilant against any national security threat. The Committee on Foreign Investment in the United States (CFIUS) has a good record of serving both purposes, and this legislation reforming CFIUS will make it even more effective."
The Energy & Commerce Committee today approved H.R. 5337, the Reform of National Security Reviews of Foreign Direct Investment Act, which makes changes to CFIUS. During consideration of H.R. 5337, the Committee provided bi-partisan approval to an amendment by Stearns improving the body's review process and restoring the organizational operation and chairmanship as established by Congress.
"This amendment makes the Secretary of Commerce the chair of CFIUS, as Congress originally intended (currently, the CFIUS chair is the Secretary of the Treasury)," explained Stearns. "With Commerce in the chair, CFIUS will be better able to review impending foreign investments, better report its findings to Congress, and better maintain the U.S. market as the most vibrant and open in the world." The Stearns' amendment also eliminates the bill's creation of a CFIUS vice chair, requires CFIUS to act through the chair pursuant to a majority vote of the committee rather than the signature of the chair and vice chair, and adds the Secretary of the Energy to CFIUS.
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