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1 [1] (February 21, 2020)

handle is hein.crs/govcacz0001 and id is 1 raw text is: F., ' r iE , .,:- i Updated February 21, 2020 Deadlines, Programs, and Regulations Mandated by FIRRMA On August 13, 2018, President Trump signed the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) (Subtitle A, Title XVII, P.L. 115-232). FIRRMA required significant changes to the jurisdiction and processes of the Committee on Foreign Investment in the United States (CFIUS). Among other items, FIRRMA required CFIUS to meet certain deadlines in programs and reporting, and to develop new regulations. In October 2018, the Department of the Treasury published in the Federal Register preliminary rules implementing certain provisions of FIRRMA related to critical technologies through a pilot program, which took effect on November 10. In September 2019, Treasury issued proposed regulations implementing key parts of FIRRMA related to CFIUS's expanded jurisdiction to review certain real estate transactions, and noncontrolling and other investments. Final regulations were published on January 13, 2020, and became effective on February 13, 2020. For more detail on the final rules, see CRS In Focus IF11334, CFIUS: New Foreign Investment Review Regulations. FIRRMA's implementation in 2020 and beyond may raise several questions for the 116th Congress, such as the extent to which modernization of CFIUS and its review of foreign direct investment transactions will safeguard U.S. national security interests, particularly those related to strategic competition for leading edge technology. Under FIRRMA, a number of provisions became effective upon enactment to (1) expand the scope and jurisdiction of CFIUS by defining such terms as covered transactions and critical technologies; (2) refine CFIUS procedures, such as timing for reviews and investigations; and (3) require actions by CFIUS to address national security risks related to mitigation agreements, among other areas. Treasury's interim rules updated and amended existing regulations in order to implement certain provisions immediately. FIRRMA also required CFIUS to take certain actions within prescribed deadlines for various programs, reporting, and other plans. These include the following: Recusal of CFIUS members. Within 90 days of enactment of FIRRMA, CFIUS is required to establish procedures for members of CFIUS to recuse themselves in cases where they may have a conflict of interest, prepare a report on recusal for the Senate Committee on Banking, Housing, and Urban Affairs and House Committee on Financial Services, and brief the committees on the report. Report on Chinese investment. Within two years of enactment and every two years through 2026, the Secretary of Commerce is required to submit to Congress and CFIUS a report on foreign direct investment by Chinese entities. Report on rail investments. Within one year after enactment, the Secretary of Homeland Security, in coordination with CFIUS, is required to submit a report to Congress assessing the national security risks related to investments by state-owned or state-controlled entities in the manufacture or assembly of rolling stock or other assets used in freight rail, public transportation rail systems, or intercity passenger rail systems in the United States. The Secretary of Homeland Security is also required to consult with the Secretary of Transportation and any agency head not represented on CFIUS with significant relevant technical expertise. Assessing CFIUS resources. The President is required to determine for FY2019 and each year thereafter, the extent to which expansion of CFIUS responsibilities requires additional resources; member departments and agencies are required to request additional resources in the budget. Prioritization fee. Not later than 270 days after enactment, the CFIUS chair is required to complete a study of the feasibility and merits of establishing a fee or fee scale to prioritize the timing of a response by CFIUS to a draft or formal written notice during the period before the committee accepts the formal written notice. CFIUS is required to submit a report of the findings to the Senate Banking and House Financial Services Committees. Implementation plans. Not later than 180 days after enactment, CFIUS is required to develop plans to implement FIRRMA and submit a report on the plan to appropriate congressional committees, including a description of the timeline and process for implementation, and any necessary additional staff and resources. Annual resource needs. Not later than 1 year after enactment and annually thereafter for 7 years, each agency and department represented on CFIUS is required to submit to the appropriate congressional committees a detailed spending plan, including estimated expenditures and staffing levels for not less than the following fiscal year. Testimony. Not later than March 3l1 of each year, the chairperson or designee of CFIUS is required to appear before the House Financial Services and Senate Banking Committees to provide testimony on various topics, including anticipated resource needs, adequacy of appropriations, the expeditious nature of reviews and investigations, mitigation agreements, and transactions in which a written notification or a declaration was not provided to CFIUS. The impetus for FIRRMA emerged from concerns that the national security landscape has shifted in recent years, and K~:> gognpo goo g , q 'S a X 11LULANJILiN,

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