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1 [1] (May 2, 2019)

handle is hein.crs/govzob0001 and id is 1 raw text is: , Congressional Research Service _nformng__h egsatvedebate since Madae9b1IRM Updated May 2, 2019 Deadlines, Programs, and Regulations Mandated by FIRRMA Overview 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). Various provisions became effective upon implementation, while interim rules for some provisions became effective on October 11, 2018. Among other items, FIRRMA required the Committee on Foreign Investment in the United States (CFIUS) to meet certain deadlines in programs and reporting and develop new regulations. In addition, in October 2018, the Treasury Department published in the Federal Register preliminary rules implementing certain provisions of FIRRMA through a pilot program, which took effect on November 10. FIRRMA's implementation 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 for their national security implications will safeguard U.S. national security interests, particularly those related to strategic competition for leading edge technology. Deadlines 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 the expansion of responsibilities requires additional resources for CFIUS; 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 31 st 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, the 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. Pilot Program The impetus for FIRRMA emerged from concerns that the national security landscape has shifted in recent years, and so has the nature of the investments that pose the greatest potential risk to national security.... As a result, FIRRMA directed Treasury to develop a pilot program to address concerns related to some provisions and allow time for additional resources to be directed at developing a more permanent regulatory response. The pilot program https:!icrsreports cong --

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