WASHINGTON, D.C. – U.S. Senator Jim Inhofe (R-Okla.) re-introduced his Committee on Foreign Investment in the United States (CFIUS) reform bill (S.1404). Sen. Inhofe’s legislation, which he first introduced in the 109th Congress, is aimed at removing the national security threat posed by foreign acquisitions of American companies by requiring more intensive review of these acquisitions.
“CFIUS has always been controlled by individuals who haven’t put the proper emphasis on national security when reviewing foreign acquisitions of U.S. businesses,” Inhofe said. “This is an enormous national security issue and we must subject these types of foreign acquisitions to additional review. Additionally, I feel that Americans need to pay closer attention to the great work of the U.S.-China Economic Commission, they are certainly in the driver’s seat regarding how best to reform CFIUS.”
Senator Inhofe’s bill proposes the following changes to the current CFIUS review process:
· Elongates the President’s time to consider reviewing a case from 30 to 60 days.
· Inserts Congressional oversight where currently none exists. CFIUS must provide detailed quarterly review reports to Congressional oversight committees.
o The findings of CFIUS must be reported to the Senate Banking Committee and the House Committee on Financial Services, where the Chairman of either Committee may initiate a review.
· Requires cases involving U.S. Economic and Energy Security to undergo full review.
· Creates a ten legislative day layover after the President notifies Congress of his decision to allow a transaction to proceed.
o During this time, if the Chairman of either oversight Committee introduces a resolution of disapproval, the transaction cannot occur for another 30 legislative days. Congress may adopt a resolution of disapproval and stop the transaction.
· Even if withdrawn prior to full review, acquisitions shall be evaluated for national security considerations.