,i #aacth ,,congress #b;d ,session ,h4 ,r4 #eeha ,,in ,,the ,,house ,,of ,,representatives ,september #ah1 #bjad ,ms4 ,de,lauro introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to amend the ,defense ,production ,act of #aiej to provide for a net benefit review of certain covered transactions1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,foreign ,investment and ,economic ,security ,act of #bjad4 #b4 ,review of greenfield investments ,section #gba7;a77#c7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 ,app4 #bagj7;a77#c77 is amended-- 7#a7 by striking means any merger and inserting the following3 means-- 7,a7 any merger 2 7#b7 by striking the period and inserting 2 and2 and 7#c7 by adding at the end the following3 7,b7 any construction of a new facility in the ,united ,states by any foreign person4 4 #c4 ,net benefit review 7a7 ,in general ,section #gba of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 ,app4 #bagj7 is amended-- 7#a7 in subsection 7b7-- 7,a7 in the heading for such subsection1 by inserting and net benefit after ,national ,security2 7,b7 in paragraph 7#a7-- 7i7 in the heading for such paragraph1 by inserting and net benefit after ,national security2 7ii7 in subparagraph 7,a71 by striking clauses 7i7 and 7ii7 and inserting the following3 7i7 shall-- 7,i7 review the covered transaction to determine the effects of the transaction on the national security of the ,united ,states2 and 7,,ii7 consider the factors specified in subsection 7f7 for such purpose1 as appropriate2 and 7ii7 shall review the covered transaction to determine whether such transaction is of net benefit to the ,united ,states1 as provided under subsection 7o74 2 and 7iii7 by adding at the end the following3 7,g7 ,mandatory net benefit review for certain covered transactions ,the ,president and the ,committee shall initiate a net benefit review of a covered transaction under subparagraph 7,a77ii7 if such transaction meets the requirements of paragraphs 7#a7 and 7#b7 of section #g;,a7a7 of the ,clayton ,act 7#ae ,u4,s4,c4 #ah;a7a774 2 and 7,c7 in paragraph 7#c77;,a71 by inserting national security before review each place it appears in the heading and text of such subparagraph2 and 7#b7 by adding at the end the following3 7o7 ,performance of net benefit determination 7#a7 ,factors to be considered ,for purposes of carrying out the net benefit determination under subsection 7b77#a77;,a77ii71 the ,president1 acting through the ,committee1 shall consider-- 7,a7 the effect on the level of economic activity in the ,united ,states on-- 7i7 the level and quality of employment2 7ii7 resource processing2 7iii7 the utilization of parts and services produced in the ,united ,states2 7iv7 the utilization of products1 parts1 and services imported into the ,united ,states2 and 7v7 exports from the ,united ,states2 7,b7 the effect of the proposed or pending transaction on productivity1 industrial efficiency1 technological development1 technology transfers1 and product innovation in the ,united ,states2 7,c7 the effect of the proposed or pending transaction on competition within any industry in the ,united ,states or between the ,united ,states and other countries2 7,d7 the compatibility of the proposed or pending transaction with national industrial1 economic1 and cultural policies2 7,e7 the effect on the public health1 safety1 and well-being of ,united ,states consumers2 7,f7 in the case of a covered transaction that is a foreign government-influenced transaction-- 7i7 the governance and commercial orientation of the foreign person engaging in such transaction2 7ii7 how and the extent to which the foreign person engaging in such transaction is owned or controlled by a foreign government or its conduct and operations are influenced by a foreign government1 including considering the stated government policies of the country of origin of the foreign person regarding government support or policies relating to the economic sector involved in such transaction2 7iii7 whether the foreign person engaging in such transaction-- 7,i7 adheres to ,united ,states standards of corporate governance 7including commitments to transparency and disclosure1 independent members of the board of directors1 independent audit committees1 and equitable treatment of shareholders72 7,,ii7 adheres to ,united ,states laws and practices2 and 7,,iii7 is a foreign person of a country whose government has adequately engaged with the ,securities and ,exchange ,commission and the ,public ,company ,accounting ,oversight ,board in order to promote and ensure adequate transparency2 and 7iv7 whether the foreign person engaging in such transaction will likely operate on a commercial basis if such transaction is completed1 including with regard to-- 7,i7 where to export2 7,,ii7 where to process2 7,,iii7 the participation of ,united ,states citizens in its operations in the ,united ,states and elsewhere2 7,,iv7 the impact of the investment on productivity and industrial efficiency in the ,united ,states2 7,v7 support of on-going innovation1 research1 and development in the ,united ,states2 7,,vi7 sourcing patterns2 and 7,,vii7 the appropriate level of capital expenditures to maintain the ,united ,states business in a globally competitive position2 and 7,g7 such other factors as the ,committee determines appropriate4 7#b7 ,determining net benefit ,in making a net benefit determination under subsection 7b77#a77;,a77ii7-- 7,a7 judgments will be made both in measuring the effects of a proposed or pending transaction in relation to the relevant individual factors under paragraph 7#a7 and in measuring the aggregate net effect after offsetting the negative effects1 if any1 against the positive ones2 and 7,b7 a proposed or pending transaction will be determined to be of net benefit to the ,united ,states when the aggregate net effect is positive1 regardless of its extent over the short- and long-term4 7#c7 ,right to appeal2 final determination 7,a7 ,appeal of determination ,if the ,committee makes a determination that the covered transaction will not be of net benefit to the ,united ,states1 the parties to the covered transaction may1 within the #cj-;day period following such determination1 submit additional information to the ,committee to demonstrate that the transaction will be of net benefit to the ,united ,states4 7,b7 ,final determination ,the ,committee shall-- 7i7 make a final determination of whether the covered transaction will be of net benefit to the ,united ,states before the end of the #cj-;day period beginning on the date that additional information is submitted pursuant to subparagraph 7,a72 and 7ii7 if such determination is that the covered transaction will not be of net benefit to the ,united ,states1 refer such determination to the ,president4 7#d7 ,certifications to ,congress ,notwithstanding subsection 7b77#c71 upon a final determination by the ,committee under this subsection1 the chairperson and the head of the lead agency shall make certifications to the ,congress on the net benefit determination that are as close as practicable to the certifications required under subsection 7b77#c7 for the national security review4 7#e7 ,action by ,president after net benefit review 7,a7 ,in general ,if the ,committee refers a determination to the ,president pursuant to paragraph 7#c77;ii71 the ,president shall1 within the #ae-;day period beginning on the date of such referral1 review such determination and announce whether the ,president determines the covered transaction is of net benefit to the ,united ,states4 7,b7 ,factors to be considered ,for purposes of making a determination under subparagraph 7,a71 the ,president shall consider1 among other factors each of the factors described in paragraph 7#a71 as appropriate4 7,c7 ,prohibition of certain transactions ,if the ,president1 pursuant to subparagraph 7,a71 determines that a covered transaction is not of net benefit to the ,united ,states1 such covered transaction is prohibited4 7,d7 ,enforcement ,the ,president shall direct the ,attorney ,general of the ,united ,states to seek appropriate relief1 including divestment relief1 in the district courts of the ,united ,states1 in order to implement and enforce this paragraph4 7,e7 ,determinations nonreviewable ,a determination of the ,president under this paragraph shall not be subject to judicial review4 7#f7 ,committee membership for purposes of a net benefit determination ,for purposes of carrying out the net benefit determination under subsection 7b77#a77;,a77ii7 and this subsection1 the ,committee shall be composed of the following members or the designee of any such member3 7,a7 ,the ,attorney ,general of the ,united ,states4 7,b7 ,the ,secretary of ,commerce4 7,c7 ,the ,secretary of ,labor4 7,d7 ,the ,secretary of the ,treasury4 7,e7 ,the ,united ,states ,trade ,representative4 7,f7 ,if the ,president determines that the covered transaction may affect the agricultural sector1 including food safety1 the ,secretary of ,agriculture4 7,g7 ,if the ,president determines that the covered transaction may affect the public health1 including food safety1 the ,secretary of ,health and ,human ,services4 7#g7 ,foreign government-influenced transaction defined ,for purposes of this subsection1 the term foreign government-influenced transaction means any covered transaction where the foreign person engaging in such transaction is owned1 controlled1 or influenced1 directly or indirectly1 by a foreign government4 4 7b7 ,rulemaking ,not later than the end of the #ahj-;day period beginning on the date of the enactment of this ,act1 the ,president shall issue regulations to carry out section #gba7o7 of the ,defense ,production ,act of #aiej1 as added by subsection 7a74