Sec. 2. Authority of Committee on Foreign Investment in the United States to review certain real estate purchases by foreign entities of concern
733 words·~3 min read·
/bill/118/s/3948/is/section-2·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 721(a)(4) of the Defense Production Act of 1950 ( 50 U.S.C. 4565(a)(4) ) is amended— in subparagraph (A)— in clause (i), by striking ; and and inserting a semicolon; in clause (ii), by striking the period at the end and inserting ; and ; and by adding at the end the following new clause: any transaction described in subparagraph (B)(vi) proposed or pending on or after the date of the enactment of this clause. ; in subparagraph (B), by adding at the end the following new clause:
Subject to subparagraph (C), the purchase or lease by, or a concession to, a foreign entity of concern of private or public real estate in the United States if— the value or fair market value of such purchase, lease, or concession exceeds $1,000,000; the real estate exceeds 100 acres; the aggregate value or fair market value of such purchase, lease, or concession, in combination with the value or fair market value of other purchases or leases by, or concessions to, such foreign entity during the 3-year period preceding the date of such purchase, lease, or concession, exceeds $1,000,000; the aggregate acreage of such purchase, lease, or concession, in combination with the aggregate acreage of other purchases or leases by, or concessions to, such foreign entity during the 3-year period preceding the date of such purchase, lease, or concession, exceeds 100 acres; or the structure of such purchase, lease, or concession is designed or intended to evade or circumvent the application of this clause, as determined by the Committee. ; and in subparagraph (C)(i), by striking subparagraph (B)(ii) and inserting clause
(ii)or
(iv)of subparagraph
(B). Section 721(a) of the Defense Production Act of 1950 ( 50 U.S.C. 4565(a) ) is amended— by redesignating paragraphs
(7)through
(13)as paragraphs
(8)through (14), respectively; and by inserting after paragraph
(6)the following new paragraph: The term foreign entity of concern has the meaning given that term in section 9901 of the William M.
(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2021 ( 15 U.S.C. 4651 ). . Section 721(f) of the Defense Production Act of 1950 ( 50 U.S.C. 4565(f) ) is amended— by redesignating paragraphs
(8)through
(11)as paragraphs
(10)through (13), respectively; and by inserting after paragraph
(7)the following new paragraphs: the potential effects of a proposed or pending transaction on the national security of the United States as a result of the impact of the transaction on the economic security of the United States; the factors described in section 3 of Executive Order 14083 ( 50 U.S.C. 4565 note; relating to consideration of evolving national security risks by the Committee on Foreign Investment in the United States), as in effect on January 1, 2024; . Section 721(b)(1)(C)(v)(IV) of the Defense Production Act of 1950 ( 50 U.S.C. 4565(b)(1)(C)(v)(IV) ) is amended by adding at the end the following: Notwithstanding item (dd), the parties to a real estate transaction described in subsection (a)(4)(B)(vi) shall submit a declaration described in subclause
(I)with respect to the transaction. . Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury, in coordination with Secretary of State and the Secretary of Homeland Security, shall submit to Congress a report that includes an assessment of the feasibility of requiring retroactive mitigation measures or divestment of real estate described in clause
(vi)of section 721(a)(4)(B) of the Defense Production Act of 1950, as added by this section, that is owned by a foreign entity of concern (as defined in paragraph
(7)of section 721(a) of such Act, as amended by this section) that presents a threat to national security (as determined by the Committee on Foreign Investment in the United States). Not later than 180 after the date of the enactment of this Act, the Secretary of the Treasury and the Committee on Foreign Investment in the United States shall submit to Congress a report describing any statutory or regulatory changes necessary to carry out this section and the amendments made by this section. The amendments made by this section shall take effect on the date of the enactment of this Act and apply with respect to any covered transaction the review or investigation of which is initiated under section 721 of the Defense Production Act of 1950 on or after such date of enactment.
Connectionstraces to 3
Traces to 3 documents
Citation graph
cites case law
Sec. 2
Authority of Committee on Foreign Investment in the United States to review certain real estate purchases by foreign entities of concern
Cites 3Cited by 0 across 0 sources