H.R. 556, the
"National Security Foreign Investment Reform and Strengthening
Transparency Act of 2007" strengthens national security and promotes a
policy of openness toward legitimate forms of foreign investment by
reforming the interagency process by which the Federal government
reviews foreign investments in the United States for their national
security implications. By reforming the interagency Committee on
Foreign Investment in the United States (CFIUS) and providing a
statutory basis for CFIUS, H.R. 556 addresses the key failures
identified most recently in the aftermath of the Dubai Ports World
case, while providing necessary clarity to the CFIUS process so that
the United States is able to continue to attract investment from other
countries.
Ensures Senior Level Accountability for CFIUS Decisions
- Requires that the Chairman and Vice Chairmen of CFIUS
approve all transactions, limiting delegation of approval authority to
the Under Secretary level in cases where CFIUS consideration is
completed within the 30-day review period.
- Transactions
that have been subjected to a 30 day review and a second-stage 45 day
investigation must be approved by the President.
Improves CFIUS Accountability to Congress
- Requires an annual report to Congress on all CFIUS transactions and operations.
- Requires
that committees with jurisdiction over any aspect of a transaction be
notified, and briefed upon request, at the completion of any
investigation.
Increases Scrutiny of Foreign Government Transactions
- In cases involving a company that is controlled by a foreign government, requires either:
- that
the Chairman and Vice Chairmen certify that the transaction poses no
national security threat, and this certification may not be delegated
below the Deputy Secretary level;
- or an automatic second-stage 45 day investigation of the transaction.
Improves Coordination within CFIUS
- Requires that CFIUS designate lead agencies in key CFIUS functions.
- Clarifies that, in performing these functions, agencies are acting on behalf of CFIUS.
- Requires agreement from all CFIUS agencies in order to approve any transaction within the 30-day review period.
Creates a System for Creating, Monitoring, and Enforcing Mitigation Agreements
- Requires that any mitigation agreement entered into by CFIUS be monitored for compliance.
- Establishes violations of mitigation agreements as a basis for CFIUS reconsideration of an approval.
Creates a System for Monitoring Transactions that Have Been Withdrawn from CFIUS
- In cases where a transaction has been withdrawn, requires
that CFIUS establish specific timeframes for resubmissions, interim
protections to address any concerns that were identified during the
initial review, a process for tracking actions taken by the companies
with regard to the transaction.
Establishes a Formal Role for Intelligence Assessments for Every Transaction
- Requires that every transaction be subjected to an assessment by the Director of National Intelligence (DNI).
- Ensures that the DNI has adequate time to conduct the required assessment.
- Clarifies that the DNI will have no policymaking role in CFIUS.
Establishes CFIUS in statute
- Creates statutory basis for CFIUS and its membership:
Treasury(chair), Commerce (vice chair), Homeland Security (vice chair),
Defense, State, Energy, Justice, USTR, NEC, National Security Advisor,
CEA, OMB, OSTP.