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 ForeignForeign Investment Reform and Strengthened TransparencyNational 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), whenand upon receiving written notification offrom any parties to a possible merger, acquisition,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), 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 anya covered transaction to initiate a review of a covered transaction 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.

Directs the President, acting through CFIUS,Requires CFIUS to immediately conduct an investigation of the effects of certain covered transactions on national security and to take any necessary stepsactions to protect the 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 mitigatedmitigated, or the transaction is a foreign government-controlled transaction; (2) a CFIUS roll call vote on any coveredthe transaction resultswould result in at least one votecontrol of any U.S. critical infrastructure by a Committee member against approving the transaction; or (3) the Director of National Intelligence identifies particularly complex intelligence concernsforeign person, if CFIUS determines that the transaction could threaten to impair national security ofand that impairment has not been properly mitigated; or (3) the United Stateslead agency for each covered transaction recommends, and CFIUS members were not ableconcurs, that an investigation be undertaken. Requires such investigations to develop and agree upon measures to mitigate satisfactorily those threats during the initial review.be completed within 45 days. Provides that, notwithstanding clause (2),that an investigation of a foreign government-controlled transaction or one involving a critical infrastructure will not be required under this paragraph if the Secretary of the Treasury, the Secretary of Homeland Security,Treasury and the Secretaryhead of Commerce determine, on the basis of the review,lead agency jointly determine 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 theimpair national security.

Requires such investigationsthe chairperson of CFIUS: (1) to be completed within 45 days (with an extensionpublish in limited cases). Requires, for any review or investigation of a covered transaction to be treated as final, approval by a majority roll call votethe Federal Register guidance on the types of transactions that CFIUS membershas reviewed and the signatures ofthat have presented national security considerations; and (2) and head of the Secretaries the Treasury, Homeland Security, and Commerce. Requires, in the caselead agency to transmit to specified Members 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 byCongress a Committee member against approving the transaction, the investigation shall not be treated as final or complete until the findingscertified notice and written report resulting from suchconcerning each 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.transaction.

Requires the DNIDirector of National Intelligence to conduct an analysis of any threat to national security posed by a covered transaction.

(Sec. 3) EstablishesEstablishes: (1) CFIUS as a multi-agency statutory committee and revises the membershipits membership; and (2) an additional Assistant Secretary of such committee. Authorizes appropriations.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) MakesAdds several factors to be considered by the consideration of specified factorsPresident in evaluating a covered transaction mandatory (currently, discretionary with the President). Adds to the list of such factorstransaction, including whether the coveredproposed transaction: (1) has anational security-related impacteffects on U.S. critical infrastructure;technologies; and (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.foreign government-controlled transaction.

(Sec. 5) Exempts the United States from liability for any lossesAuthorizes CFIUS or other expenses incurred by any partya lead agency to enter into agreements with parties to a covered transaction as a result ofto mitigate any review or investigation after a covered transaction has been consummated if, before consummatingthreat to national security. Requires the transaction, the party did not submit a written notice of the transactionlead agency to negotiate, modify, monitor, and enforce such agreements. Requires designated agencies to provide periodic reports to CFIUS on the CFIUS, did not wait until the completionimplementation of any review or investigation,agreements or until 15 days after an investigation is completed.conditions.

(Sec. 6) Authorizes CFIUS to: (1) enter into agreements with partiesthe President to asuspend or prohibit any covered transaction that threatens to mitigate any threat toimpair national security; and (2) designate onesecurity. (Current law authorizes the President to suspend or more lead federal agenciesprohibit a transaction by or with foreign persons so that their control will not threaten to negotiate, modify, monitor, and enforce such agreements.impair national security.) Requires designated agencies(under current law, authorizes) the President to provide periodic reportsconsider specified factors (including those added in this Act) when determining whether to CFIUS on the implementation of any agreementssuspend or conditions.prohibit a covered transaction.

Establishes a method(Sec. 7) Requires: (1) upon request, CFIUS to brief certain Members of Congress of trackingcovered transactions for which are withdrawn from the review or investigation processaction has concluded; and a process for setting interim protections(2) CFIUS annual reports to addressCongress after completed investigations. Requires specific national security concerns relatingreport information with respect to such transactions.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 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 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>

<!--Leave in the 'summary' tags if you want the latest summary from the Congressional Research Service automatically to replace the text between the tags once it becomes available. -->

== Status of the Legislation ==

<status>
Latest Major Action: 7/18/2007: Presented to President.
</status>

<!-- Leave in the 'status' tags if you want the latest reported status from THOMAS automatically to replace the text between the tags once it becomes available. -->

== Points in Favor ==

(Log in to edit the wiki and be the first to show why the bill should pass!)
<!-- First editor: Go ahead and take out the sentence in parentheses, and this notice! -->

== Points Against ==

(Log in to edit the wiki and be the first to show why the bill should not pass!)
<!-- First editor: Go ahead and take out the sentence in parentheses, and this notice! -->