HR 5337 · 109th Congress 2005–2007, ended

National Security Foreign Investment Reform and Strengthened Transparency Act of 2006

Introduced May 10, 2006 Originated House Sponsor Roy Blunt R-MO

Latest action · Jul 27, 2006 Received in the Senate. Read twice. Placed on Senate Legislative Calendar under General Orders. Calendar No. 538.

Progress

Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.

IntroducedMay 10, 2006
Passed HouseJul 26, 2006
Passed SenateNot reached
To the PresidentNot reached
Became lawNot reached

Summary

National Security Foreign Investment Reform and Strengthened Transparency Act of 2006 - Amends the Defense Production Act of 1950 (DPA) to revise the review and investigation process for foreign investment activities that may affect U.S. national security.

(Sec. 2) Directs 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.

Allows any party to a covered transaction to initiate a review of such transaction by submitting written notice of the transaction to the Chairperson of CFIUS. Establishes a procedure for withdrawing such notice. Requires a transaction review to be completed within 30 days.

Authorizes the President, CFIUS, or any member of CFIUS to initiate a review of any covered transaction or any previously reviewed or investigated covered transaction which involves the submission of false or misleading material information or a breach of a mitigation agreement or condition.

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 such investigation to be completed within 45 days unless extended by the President or by two-thirds roll call vote of CFIUS members.

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, of Homeland Security, and of Commerce.

Requires the Director of National Intelligence 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. Designates the Secretary of the Treasury as the Chairperson of CFIUS and the Secretary of Homeland Security as Vice Chairperson. Grants CFIUS subpoena power to carryout its responsibilities. Authorizes appropriations for the operation of CFIUS for FY2007-FY2010.

(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: (1) whether the covered transaction has a security-related impact on critical U.S. infrastructure; (2) whether the covered transaction is a foreign government-controlled transaction; and (3) such other factors as the President or the President's designee may consider appropriate.

(Sec. 5) Grants immunity to the United States for losses or other expenses incurred by a party to a covered transaction resulting from governmental actions if the party did not notify CFIUS of such transaction or did not wait until the completion of a required review or investigation of the transaction.

(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 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.

(Sec. 7) Revises and expands requirements for CFIUS to report to Congress on investigations of covered transactions. Requires CFIUS to report within five days after it takes final action in an investigation of a covered transaction and to provide classified briefings on covered transactions to Members of Congress, if so requested.

Requires CFIUS to file semiannual reports with Congress on all reviews and investigations of covered transactions within a previous six-month period. Specifies the required content of such reports.

Requires the Inspector General of the Department of the Treasury to conduct an investigation of each failure of the Department of the Treasury to make required reports under DPA and to report to Congress on such investigation.

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 to Congress on such study.

(Sec. 8) Requires any notice and other information required to be submitted by a party to a covered transaction to be accompanied by a written statement of the chief executive officer involved certifying that such notice or information fully complies with DPA requirements and is accurate and complete in all material respects.

Recorded votes 1

Newest first. Open one to see how every member voted.

Roll call	Question	Result	Date
House 404	On Motion to Suspend the Rules and Pass, as Amended	Passed424–0	Jul 26, 2006

Cosponsors 87

Members who signed on, in the order they did. Signatures ran from May 10, 2006 to Jul 17, 2006; 22 are original cosponsors, there from the day it was introduced.

Seat	Cosponsor		Signed on
D-NY	Carolyn B. Maloney	Original	May 10, 2006
R-CT	Christopher Shays	Original	May 10, 2006
R-OH	Deborah Pryce	Original	May 10, 2006
R-AK	Don Young	Original	May 10, 2006
R-IL	Donald A. Manzullo	Original	May 10, 2006
R-TX	Joe Barton	Original	May 10, 2006
R-CA	John T. Doolittle	Original	May 10, 2006
D-NY	Joseph Crowley	Original	May 10, 2006
R-IL	Judy Biggert	Original	May 10, 2006
R-FL	Katherine Harris	Original	May 10, 2006
R-TX	Lamar Smith	Original	May 10, 2006
R-FL	Mark Foley	Original	May 10, 2006
R-MI	Peter Hoekstra	Original	May 10, 2006
R-NY	Peter T. King	Original	May 10, 2006
R-LA	Richard H. Baker	Original	May 10, 2006

Show all 87 cosponsors

Committees 3

Where it was sent and what each committee and subcommittee did with it, in order.

Chamber	Committee	What it did
House	Financial Services Committee	Referred May 10, 2006Markup Jun 14, 2006Reported Jun 22, 2006
	Domestic Monetary Policy and Technology Subcommittee	Referred May 16, 2006Hearings May 17, 2006Discharged May 17, 2006
House	Energy and Commerce Committee	Referred May 10, 2006Markup Jul 12, 2006Reported Jul 18, 2006
	Commerce, Manufacturing, and Trade Subcommittee	Referred Jun 5, 2006Hearings Jul 11, 2006
House	Foreign Affairs Committee	Referred May 10, 2006Discharged Jul 18, 2006

Actions 25

Everything that happened, newest first.

Jul 27, 2006Received in the Senate. Read twice. Placed on Senate Legislative Calendar under General Orders. Calendar No. 538.
Jul 26, 2006Mr. Oxley moved to suspend the rules and pass the bill, as amended.
Jul 26, 2006Considered under suspension of the rules. (consideration: CR H5863-5873)
Jul 26, 2006DEBATE - The House proceeded with forty minutes of debate on H.R. 5337.
Jul 26, 2006At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
Jul 26, 2006Considered as unfinished business. (consideration: CR H5899-5900)
Jul 26, 2006Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 424 - 0 (Roll no. 404). (text: CR H5863-5867)
Jul 26, 2006Motion to reconsider laid on the table Agreed to without objection.
Jul 17, 2006Reported (Amended) by the Committee on Energy and Commerce. H. Rept. 109-523, Part II.
Jul 17, 2006Committee on International Relations discharged.
Jul 17, 2006Placed on the Union Calendar, Calendar No. 329.
Jul 12, 2006Committee Consideration and Mark-up Session Held.
Jul 12, 2006Ordered to be Reported (Amended) by Voice Vote.
Jul 11, 2006Subcommittee Hearings Held.
Jun 22, 2006Reported (Amended) by the Committee on Financial Services. H. Rept. 109-523, Part I.
Jun 22, 2006House Committee on Energy and Commerce Granted an extension for further consideration ending not later than July 17, 2006.
Jun 22, 2006House Committee on International Relations Granted an extension for further consideration ending not later than July 17, 2006.
Jun 14, 2006Ordered to be Reported (Amended) by the Yeas and Nays: 64 - 0.
Jun 14, 2006Committee Consideration and Mark-up Session Held.
Jun 5, 2006Referred to the Subcommittee on Commerce, Trade and Consumer Protection, for a period to be subsequently determined by the Chairman .
May 17, 2006Subcommittee Hearings Held.
May 17, 2006Subcommittee on Domestic and International Monetary Policy, Trade, and Technology Discharged.
May 16, 2006Referred to the Subcommittee on Domestic and International Monetary Policy, Trade, and Technology.
May 10, 2006Introduced in House
May 10, 2006Referred to the Committee on Financial Services, and in addition to the Committees on Energy and Commerce, and International Relations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Research

What has been written about this bill: committee reports, cost estimates, the sponsor’s authority statement, printed hearings and the Congressional Research Service’s work.

Committee reports

Congressional Budget Office cost estimates 4

Jul 14, 2006H.R. 5337, Reform of National Security Reviews of Foreign Direct Investments Act<p>Cost estimate for the bill as ordered reported by the House Committee on Energy and Commerce on July 12, 2006</p>
Jul 14, 2006H.R. 5337, Reform of National Security Reviews of Foreign Direct Investments ActCost estimate for the bill as ordered reported by the House Committee on Energy and Commerce on July 12, 2006
Jun 16, 2006H.R. 5337, National Security Foreign Investment Reform and Strengthened Transparency Act of 2006<p>Cost estimate for the bill as ordered reported by the House Committee on Financial Services on June 14, 2006</p>
Jun 16, 2006H.R. 5337, National Security Foreign Investment Reform and Strengthened Transparency Act of 2006Cost estimate for the bill as ordered reported by the House Committee on Financial Services on June 14, 2006

Printed hearings 4

Hearings whose printed record names this bill, newest first: hearings on it, and wider hearings where it came up.

Number	Hearing	Committee	Held
Serial No. 109-110	CFIUS REFORM: H.R. 5337, THE REFORM OF NATIONAL SECURITY REVIEWS OF FOREIGN DIRECT INVESTMENT ACT60 pages	Energy and Commerce Committee	Jul 11, 2006
Serial No. 109-253	SECURING OUR PORTS: INFORMATION SHARING IS KEY TO EFFECTIVE MARITIME SECURITY68 pages	Oversight and Government Reform Committee	Jul 10, 2006
Serial No. 109-79	THE NEED FOR CFIUS TO ADDRESS HOMELAND SECURITY CONCERNS66 pages	Homeland Security Committee	May 24, 2006
Serial No. 109-93	H.R. 5337, THE REFORM OF NATIONAL SECURITY REVIEWS OF FOREIGN DIRECT INVESTMENTS ACT74 pages	Financial Services Committee	May 17, 2006

Titles 5

Every title it has carried, official and short, at each stage.

Official Title as Introduced: 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.
Short Titles as Introduced: Reform of National Security Reviews of Foreign Direct Investments Act
Short Titles as Reported to House: National Security Foreign Investment Reform and Strengthened Transparency Act of 2006
Short Titles as Passed House: National Security Foreign Investment Reform and Strengthened Transparency Act of 2006
Short Titles as Reported to House for portions of this bill: Reform of National Security Reviews of Foreign Direct Investments Act

Subjects

Assigned by the Library of Congress. Policy area: Foreign Trade and International Finance.

Text 4

Each version as it was printed, newest first.

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Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov; cost estimates are the Congressional Budget Office's, and the hearings are the printed hearings GovInfo publishes, which can appear months after the hearing.