Reciprocity and Fairness in Foreign Investment Act - Permits a foreign person owned or controlled by a foreign government to acquire ownership in either a business, or in real property in the United States, but only to the same extent as that foreign government allows U.S. persons to acquire ownership in comparable enterprises organized under the laws of that foreign country.
Subjects investment and operation of critical infrastructure in the United States by such a foreign person to the same reciprocity requirements.
Directs the Secretary of the Treasury to issue implementing regulations.
Establishes civil penalties for violations of this Act.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4959 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 4959
To impose limitations on investment and certain operations by foreign
entities in the United States.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 14, 2006
Mr. Turner (for himself, Mr. King of Iowa, Mr. McCotter, Mr.
LaTourette, Mr. Ney, Mr. Weldon of Pennsylvania, Mr. Hayworth, Mr.
McHugh, Mr. Wamp, Mr. Rogers of Michigan, Mr. Hobson, Mr. Hunter, and
Mr. Garrett of New Jersey) introduced the following bill; which was
referred to the Committee on Financial Services, and in addition to the
Committees on International Relations and Energy and Commerce, 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
_______________________________________________________________________
A BILL
To impose limitations on investment and certain operations by foreign
entities in the United States.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Reciprocity and Fairness in Foreign
Investment Act''.
SEC. 2. LIMITATIONS ON INVESTMENT AND CERTAIN OPERATIONS BY FOREIGN
ENTITIES.
(a) Limitations.--
(1) On government-owned enterprises.--A foreign person that
is owned or controlled by the government of a foreign country
may--
(A) acquire or hold an equity interest, or other
evidence of ownership, in a corporation, partnership,
or other business entity, that is organized under the
laws of the United States, or
(B) acquire or hold any interest in real property
in the United States,
only to the same extent as that foreign country allows United
States persons to acquire or hold (as the case may be) equity
interests or other evidences of ownership in comparable
business concerns organized under the laws of that foreign
country and to acquire or hold interests in comparable real
property in that foreign country.
(2) Investment in and operation of critical
infrastructure.--A foreign person may acquire or hold a
property interest in, or control operations, management, or
security operations of, critical infrastructure in the United
States only to the same extent as the foreign country of which
that foreign person is a national allows United States persons
to acquire or hold equivalent property interests or other
evidences of ownership in, or to control operations,
management, or security operations of, comparable critical
infrastructure in that country.
(b) Definitions.--In this section:
(1) Critical infrastructure.--(A) The term ``critical
infrastructure'' means systems and assets, whether physical or
virtual, so vital to a country that the incapacity or
destruction of such systems and assets would have a
debilitating impact on the security, economic security, or
public health or safety, of that country. Such term includes--
(i) any airport, air navigation facility, or
facility that is part of an air traffic control system;
(ii) any bridge, any highway, and any railroad
tracks or facilities;
(iii) any port facilities;
(iv) any pipeline that transports oil, natural gas,
or gasoline or other petroleum products; and
(v) any electricity generation, transmission, or
distribution facilities.
(B) The terms ``airport'', ``air navigation facility'', and
``air traffic control system'' have the meanings given those
terms in section 40102 of title 49, United States Code.
(2) Foreign person.--The term ``foreign person'' means a
national of a foreign country.
(3) Government.--The term ``government of a foreign
country'' includes any agency or instrumentality of the
government of a foreign country.
(4) National of a foreign country.--A person is a national
of a foreign country if that person is--
(A) a citizen of that country;
(B) an entity organized under the laws of that
country (whether the entity is controlled by private
persons or government entities);
(C) a unit of government of that country; or
(D) an entity that is organized under the laws of
the United States and is owned or controlled by
individuals, entities, or units of government described
in subparagraphs (A), (B), and (C), or any combination
thereof.
(5) United states.--The term ``United States'' means the
several States, the District of Columbia, and any commonwealth,
territory, or possession of the United States.
(6) United states person.--The term ``United States
person'' means--
(A) any United States citizen;
(B) any entity that is organized under the laws of
the United States and is owned or controlled by United
States citizens, by State or local governments, by the
United States, or by any combination thereof.
SEC. 3. ENFORCEMENT.
(a) Secretary of the Treasury.--The Secretary of the Treasury, in
consultation with the Secretary of Commerce, the Attorney General, and
the heads of such other departments and agencies as the Secretary of
the Treasury considers appropriate, shall issue such regulations as are
necessary to carry out section 2.
(b) Penalties.--
(1) Civil penalties.--
(A) Penalty.--A civil penalty of not more than
$500,000 shall be imposed on any foreign person who
violates section 2 or any regulation issued under
subsection (a) of this section.
(B) Authority of the secretary of the treasury.--
The Secretary of the Treasury has the authority to
impose civil penalties under subparagraph (A).
(2) Other relief.--The Secretary of the Treasury may bring
an action in the appropriate United States district court to
enjoin any violation of section 2 or any regulation issued
under subsection (a) of this section. In addition, the Attorney
General, upon the request of the Secretary of the Treasury,
shall seek appropriate relief, including divestment relief, in
the district courts in order to enforce this Act.
SEC. 4. ANNUAL REPORT.
The Secretary of the Treasury shall, not later than 120 days after
the date of the enactment of this Act and annually thereafter, issue
and make public a report on the laws of each foreign country regarding
permissible investment by foreign persons in enterprises organized
under the laws of the country and in real property in that country, and
permissible control by foreign persons of operations and management of
critical infrastructure in that country.
SEC. 5. EFFECTIVE DATE.
(a) In General.--Subject to subsection (b), this Act shall take
effect 180 days after the date of the enactment of this Act.
(b) Existing Investments.--In order to allow foreign countries the
flexibility to make the necessary changes to their laws so as to allow
foreign investment and control affected by this Act, this Act and the
regulations issued under this Act shall not apply to any equity
interest, other property interest, or control of operations or
management of infrastructure, acquired before the effective date of
this Act until the date that is 1 year after such effective date.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Financial Services, and in addition to the Committees on International Relations, and Energy and Commerce, 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.
Referred to the Committee on Financial Services, and in addition to the Committees on International Relations, and Energy and Commerce, 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.
Referred to the Committee on Financial Services, and in addition to the Committees on International Relations, and Energy and Commerce, 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.
Referred to the Committee on Financial Services, and in addition to the Committees on International Relations, and Energy and Commerce, 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.
Referred to the Subcommittee on Domestic and International Monetary Policy, Trade, and Technology.
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