H.R. 556 would ensure national security while promoting foreign investment and the creation and maintenance of jobs, it would reform the process by which such investments are examined for any effect they may have on national security, and it would establish the Committee on Foreign Investment in the United States.

== Detailed Summary ==

<summary>
National Security Foreign Investment Reform and Strengthened Transparency Act of 2007 - (Sec. 2) Amends<b>(This measure has not been amended since it was passed by the Defense Production Act of 1950 to direct the President, acting through the CommitteeSenate on Foreign Investment in the United States (CFIUS), when receiving written notificationJune 29, 2007. The summary 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 determinesthat version 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.repeated here.)</b>

DirectsForeign 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 CFIUS, to conduct an investigation of the effects of certain covered transactionsCommittee on national securityForeign Investment in the United States (CFIUS), and upon receiving written notification from any parties to takea possible merger, acquisition or takeover proposed or pending after August 23, 1988, which could result in foreign control of any necessary stepsperson engaged in interstate commerce (covered transaction), to protect national security, if a review of asuch covered transaction results in a determination that: (1) the transaction threatens to impairdetermine its effects on national security and that threat has not been mitigated or thesecurity. Requires CFIUS to investigate a covered transaction which it determines is a foreign government-controlled transaction; (2) a CFIUS roll call vote ontransaction. Permits any party to a covered transaction results in at least one voteto initiate a review by submitting a Committee member against approvingwritten notice of the transaction; or (3) the Director of National Intelligence identifies particularly complex intelligence concerns that could threatentransaction to impair national security ofCFIUS. Authorizes the United States andPresident or 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 ofinitiate a foreign government-controlledreview of: (1) any covered transaction; (2) any covered transaction will not be required under this paragraphthat has been previously reviewed or investigated, if the Secretary of the Treasury, the Secretary of Homeland Security, and the Secretary of Commerce determine, on the basis of the review,any party submitted false or misleading material information; or (3) any covered transaction that the transaction will not affect the national security of the United States and nohas been previously reviewed or investigated, if any party intentionally materially breaches a mitigation agreement or condition is required, with respect toimposed on the transaction, to mitigate any threat to the national security.transaction.

Requires such investigationsCFIUS to be completed within 45 days (withimmediately conduct an extension in limited cases). Requires, for any review or investigation of the effects of certain covered transactions on national security and to take necessary actions to protect the national security, if a coveredreview results in a determination that: (1) the transaction threatens to be treated as final, approval by a majority roll call vote of CFIUS membersimpair national security and that threat has not been mitigated, or the signatures of oftransaction is a foreign government-controlled transaction; (2) the Secretaries the Treasury, Homeland Security, and Commerce. Requires,transaction would result in the casecontrol of any U.S. critical infrastructure by a foreign person, if CFIUS roll call vote in connection withdetermines 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 anya foreign government-controlled transaction in which there is at leastor one vote byinvolving a Committee member against approving the transaction, the investigation shallcritical infrastructure will not be treated as final or complete untilrequired if the findings and report resulting from such investigation are signed bySecretary of the President, in addition to the ChairpersonTreasury and the Vice Chairpersonshead of CFIUS. Requires that, in the case of a coveredlead agency jointly determine that the 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.not impair national security.

Requires the DNI to conduct an analysischairperson of any threatCFIUS: (1) to publish in the Federal Register guidance on the types of transactions that CFIUS has reviewed and that have presented national security posed byconsiderations; 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.

(Sec. 3) Establishes CFIUS as a multi-agency statutory committee and revisesRequires the membershipDirector of such committee. Authorizes appropriations.National Intelligence to conduct an analysis of any threat to national security posed by a covered transaction.

(Sec. 4) Makes the consideration3) Establishes: (1) CFIUS as a multi-agency statutory committee and revises its membership; and (2) an additional Assistant Secretary of specified factors in evaluating a covered transaction mandatory (currently, discretionary with the President). AddsTreasury to perform CFIUS-related duties. Requires the list of such factors whether the covered transaction: (1) hasSecretary to designate a security-related impact on U.S. critical infrastructure; (2) has potential effects on U.S. effortsCFIUS member(s) to curtail human smuggling and drug smuggling; (3) is a foreign-government-controlled transaction; and (4) such other factorsact as the President determines appropriate.lead agency or agencies with respect to a covered transaction.

(Sec. 5) Exempts4) Adds several factors to be considered by the United States from liability for any losses or other expenses incurred by any party toPresident in evaluating a covered transaction as a result of any review or investigation after a covered transaction has been consummated if, before consummating the transaction, including whether the party did not submitproposed transaction: (1) has national security-related effects on U.S. critical technologies; and (2) is 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.foreign government-controlled transaction.

(Sec. 6)5) Authorizes CFIUS to: (1)or a lead agency to enter into agreements with parties to a covered transaction to mitigate any threat to national security; and (2) designate one or moresecurity. Requires the lead federal agenciesagency 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(Sec. 6) Authorizes the reviewPresident to suspend or investigation process andprohibit any covered transaction that threatens to impair national security. (Current law authorizes the President to suspend or prohibit a process for setting interim protectionstransaction by or with foreign persons so that their control will not threaten to address specificimpair national security concerns relatingsecurity.) Requires (under current law, authorizes) the President to such transactions.consider specified factors (including those added in this Act) when determining whether to suspend or prohibit a covered transaction.

Requires(Sec. 7) Requires: (1) upon request, CFIUS to develop methodsbrief certain Members of Congress of covered transactions for evaluating compliance with any agreement entered into or condition imposedwhich action has concluded; and (2) CFIUS annual reports to Congress after completed investigations. Requires specific report information with respect to a covered transaction.possible foreign acquisition of U.S. companies involved in the research, development, or production of critical technologies, as well as possible industrial espionage activities.

(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.

RequiresRequires the Secretary of the Treasury 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(or their agentsagents) 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 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.
</summary>

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== Status of the Legislation ==

<status>
Latest Major Action: 6/29/2007: Passed/agreed to in Senate. Status: Passed Senate with an amendment7/26/2007: Signed by Unanimous Consent.President.
</status>

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== Points in Favor ==

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== Points Against ==

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