I 118THCONGRESS 1 STSESSION H. R. 4577 To protect U.S. food security, give the Committee on Foreign Investment in the United States greater jurisdiction over land purchases, to impose special guards against foreign adversary purchases of land in the United States near sensitive sites, to expand the definition of sensitive sites, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JULY12, 2023 Mr. G ALLAGHER(for himself, Mr. THOMPSONof California, Mr. NEWHOUSE, Mr. G ARAMENDI, Mr. JOHNSONof South Dakota, Mr. CASE, Ms. S TEFANIK, Mr. COSTA, Mr. LUCAS, Mr. PANETTA, Mr. WITTMAN, Mr. C ROW, Mr. FEENSTRA, Mr. CARBAJAL, Mr. BANKS, Mrs. PELTOLA, and Mrs. H INSON) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committees on Foreign Affairs, and Energy and Commerce, for a period to be subse- quently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To protect U.S. food security, give the Committee on Foreign Investment in the United States greater jurisdiction over land purchases, to impose special guards against foreign adversary purchases of land in the United States near sensitive sites, to expand the definition of sensitive sites, and for other purposes. Be it enacted by the Senate and House of Representa-1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 06:29 Aug 08, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4577.IH H4577 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 4577 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Protecting U.S. Farm-2 land and Sensitive Sites From Foreign Adversaries Act’’. 3 SEC. 2. ADDITIONAL DEFINITIONS. 4 Section 721(a) of the Defense Production Act of 5 1950 (50 U.S.C. 4565(a)) is amended by adding at the 6 end the following: 7 ‘‘(14) E LEVATED RISK REAL ESTATE TRANS -8 ACTION.—The term ‘elevated risk real estate trans-9 action’ means a real estate transaction described 10 under paragraph (4)(B)(ii), in which— 11 ‘‘(A) the transaction is a purchase or lease 12 by, or a concession to, a foreign adversary enti-13 ty; and 14 ‘‘(B) the real estate— 15 ‘‘(i) is located within, or function as a 16 part of, an air or maritime port; 17 ‘‘(ii) is in close proximity to a sen-18 sitive site; 19 ‘‘(iii) could reasonably provide the for-20 eign adversary entity the ability to collect 21 intelligence on activities being conducted at 22 a sensitive site; or 23 ‘‘(iv) could otherwise expose national 24 security activities at a sensitive site. 25 VerDate Sep 11 2014 06:29 Aug 08, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4577.IH H4577 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •HR 4577 IH ‘‘(15) FOREIGN ADVERSARY .—The term ‘for-1 eign adversary’ means— 2 ‘‘(A) the People’s Republic of China, in-3 cluding all Special Administrative Regions; 4 ‘‘(B) the Republic of Cuba; 5 ‘‘(C) the Islamic Republic of Iran; 6 ‘‘(D) the Democratic People’s Republic of 7 Korea; 8 ‘‘(E) the Russian Federation; and 9 ‘‘(F) the Bolivarian Republic of Venezuela 10 during any period of time in which Nichola´s 11 Maduro is President of the Republic. 12 ‘‘(16) F OREIGN ADVERSARY ENTITY .—The 13 term ‘foreign adversary entity’ means— 14 ‘‘(A) a foreign adversary; 15 ‘‘(B) a foreign person subject to the juris-16 diction of, or organized under the laws of, a for-17 eign adversary; and 18 ‘‘(C) a foreign person owned, directed, or 19 controlled by an entity described in subpara-20 graph (A) or (B). 21 ‘‘(17) S ENSITIVE SITE.—The term ‘sensitive 22 site’ means— 23 ‘‘(A) military installations; 24 VerDate Sep 11 2014 06:29 Aug 08, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4577.IH H4577 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •HR 4577 IH ‘‘(B) a military training route, as defined 1 in section 183a(h) of title 10, United States 2 Code; 3 ‘‘(C) airspace designated as special use air-4 space under part 73 of title 14, Code of Federal 5 Regulations (or a successor regulation) and 6 managed by the Department of Defense; 7 ‘‘(D) a controlled firing area, as defined in 8 section 1.1 of title 14, Code of Federal Regula-9 tions (or a successor regulation) under the ju-10 risdiction of the Secretary of Defense; 11 ‘‘(E) a military operations area, as defined 12 in section 1.1 of title 14, Code of Federal Regu-13 lations (or a successor regulation); 14 ‘‘(F) facilities openly owned or operated by 15 the U.S. intelligence community; 16 ‘‘(G) federally-funded research develop-17 ment centers; 18 ‘‘(H) university-affiliated research centers 19 of the Department of Defense; 20 ‘‘(I) science and technology reinvention 21 laboratories, as designated by the Secretary of 22 Defense under section 4121 of title 10, United 23 States Code; 24 VerDate Sep 11 2014 06:29 Aug 08, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4577.IH H4577 pbinns on DSKJLVW7X2PROD with $$_JOB 5 •HR 4577 IH ‘‘(J) airports, as listed on the website of 1 the Federal Aviation Administration; 2 ‘‘(K) maritime ports, as determined by the 3 Secretary of Transportation; 4 ‘‘(L) any electronic or telecommunications 5 facility used to process, store, or transmit infor-6 mation (including fiber optic nodes, data cen-7 ters, cloud computing facilities, satellite ground 8 stations, and wireless transmission equipment) 9 if— 10 ‘‘(i) the facility is part of a backbone 11 or core network that serves a significant 12 portion of the United States telecommuni-13 cations network; 14 ‘‘(ii) the facility is located in close 15 proximity to another sensitive site; 16 ‘‘(iii) the facility is a submarine cable 17 landing station (as defined in section 18 60401(a) of the Infrastructure Investment 19 and Jobs Act (47 U.S.C. 1741(a))); 20 ‘‘(iv) the facility is used to process or 21 store a large volume of sensitive informa-22 tion (such as classified or encrypted com-23 munications) or other data critical to na-24 VerDate Sep 11 2014 06:29 Aug 08, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4577.IH H4577 pbinns on DSKJLVW7X2PROD with $$_JOB 6 •HR 4577 IH tional security, public safety, or economic 1 security; or 2 ‘‘(v) the Chairman of the Federal 3 Communications Commission determines 4 the facility to be critical communications 5 infrastructure; 6 ‘‘(M) electric powerplants, as determined 7 by the Secretary of Homeland Security; and 8 ‘‘(N) any other site, as determined by the 9 Secretary of Defense or the Secretary of Home-10 land Security.’’. 11 SEC. 3. PROTECTING U.S. FOOD SECURITY. 12 (a) A UTHORIZING THECOMMITTEE ONFOREIGNIN-13 VESTMENT IN THE UNITEDSTATESTOCONSIDERFOOD 14 S ECURITY INREVIEWS OFCOVEREDTRANSACTIONS.— 15 Section 721(f) of the Defense Production Act of 1950 (50 16 U.S.C. 4565(f)) is amended— 17 (1) in paragraph (10), by striking ‘‘and’’ at the 18 end; 19 (2) by redesignating paragraph (11) as para-20 graph (12); and 21 (3) by inserting after paragraph (10) the fol-22 lowing: 23 ‘‘(11) the current and long-term projection of 24 the requirements for sources of food, water, and 25 VerDate Sep 11 2014 06:29 Aug 08, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H4577.IH H4577 pbinns on DSKJLVW7X2PROD with $$_JOB 7 •HR 4577 IH other agricultural products in the United States in 1 the aggregate, as well as locally and regionally, and 2 the effects a covered transaction may have on 3 United States food security, including through for-4 eign adversary acquisition of biotechnology related to 5 agriculture; and’’. 6 (b) E XPANDING THE JURISDICTION OF THE COM-7 MITTEE ON FOREIGNINVESTMENT IN THE UNITED 8 S TATESOVERREALESTATETRANSACTIONS.—Section 9 721(a)(4) of the Defense Production Act of 1950 (50 10 U.S.C. 4565(a)(4)) is amended— 11 (1) in subparagraph (B)(ii)— 12 (A) in subclause (II)— 13 (i) by striking ‘‘(II)(aa) is’’ and in-14 serting the following: ‘‘(II) with respect to 15 a purchase or lease by, or a concession to, 16 a person who is not a foreign adversary en-17 tity— 18 ‘‘(aa) is’’; and 19 (ii) by adjusting the margin of item 20 (bb) accordingly; and 21 (iii) in item (bb)(CC), by striking ‘‘; 22 and’’ and inserting a period; and 23 (B) by striking subclause (III); and 24 VerDate Sep 11 2014 06:29 Aug 08, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H4577.IH H4577 pbinns on DSKJLVW7X2PROD with $$_JOB 8 •HR 4577 IH (2) in subparagraph (C), by adding at the end 1 the following: 2 ‘‘(iii) L IMITATION ON COMMITTEE AU -3 THORITY.—The Committee may not, by 4 regulation or otherwise, specify additional 5 criteria that must be met for a transaction 6 to be described under subparagraph 7 (B)(ii).’’. 8 (c) M ANDATORY DECLARATIONS.—Section 9 721(b)(1)(C)(v)(IV) of the Defense Production Act of 10 1950 (50 U.S.C. 4565(b)(1)(C)(v)(IV)) is amended by 11 adding at the end the following: 12 ‘‘(hh) R EQUIRED DECLARA -13 TIONS FOR ELEVATED RISK REAL 14 ESTATE TRANSACTION .—Not-15 withstanding item (dd), the par-16 ties to an elevated risk real estate 17 transaction shall submit a dec-18 laration described in subclause 19 (I) with respect to the trans-20 action.’’. 21 VerDate Sep 11 2014 06:29 Aug 08, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H4577.IH H4577 pbinns on DSKJLVW7X2PROD with $$_JOB 9 •HR 4577 IH SEC. 4. PRESUMPTION OF UNRESOLVABILITY OF ELE-1 VATED RISK REAL ESTATE TRANSACTIONS. 2 (a) P RESUMPTION AT THE REVIEWSTAGE.—Section 3 721(b)(2)(B) of the Defense Production Act of 1950 (50 4 U.S.C. 4565(b)(2)(B)) is amended— 5 (1) in clause (i), by striking ‘‘or’’ at the end; 6 (2) in clause (ii), by striking the period at the 7 end and inserting ‘‘; or’’; and 8 (3) by adding at the end the following: 9 ‘‘(iii) a covered transaction is an ele-10 vated risk real estate transaction, unless 11 the Committee— 12 ‘‘(I) determines, by clear and 13 convincing evidence, that the covered 14 transaction is not a risk to national 15 security; and 16 ‘‘(II) submits a notification to 17 the Committees on Agriculture and 18 Financial Services of the House of 19 Representatives, the Select Committee 20 on the Strategic Competition Between 21 the United States and the Chinese 22 Communist Party of the House of 23 Representatives, and the Committees 24 on Agriculture and Banking, Housing, 25 and Urban Affairs of the Senate con-26 VerDate Sep 11 2014 06:29 Aug 08, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H4577.IH H4577 pbinns on DSKJLVW7X2PROD with $$_JOB 10 •HR 4577 IH taining such determination and the 1 reasons therefore.’’. 2 (b) P RESUMPTION AT THE INVESTIGATIONSTAGE.— 3 Section 721(l)(3) of the Defense Production Act of 1950 4 (50 U.S.C. 4565(l)(3)) is amended by adding at the end 5 the following: 6 ‘‘(E) A PPLICATION TO ELEVATED RISK 7 REAL ESTATE TRANSACTION .—Notwithstanding 8 subparagraph (A), an elevated risk real estate 9 transaction shall be presumed to present a risk 10 to national security that cannot be resolved 11 through any agreement or condition, unless the 12 Committee— 13 ‘‘(i) determines, by clear and con-14 vincing evidence, that the risk to national 15 security of the transaction can be resolved 16 in a manner other than by suspending or 17 prohibiting the transaction; and 18 ‘‘(ii) submits a notification to the 19 Committees on Agriculture and Financial 20 Services of the House of Representatives, 21 the Select Committee on the Strategic 22 Competition Between the United States 23 and the Chinese Communist Party of the 24 House of Representatives, and the Com-25 VerDate Sep 11 2014 06:29 Aug 08, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H4577.IH H4577 pbinns on DSKJLVW7X2PROD with $$_JOB 11 •HR 4577 IH mittees on Agriculture and Banking, Hous-1 ing, and Urban Affairs of the Senate con-2 taining such determination and the reasons 3 therefore.’’. 4 SEC. 5. AGRICULTURE REPRESENTATIVE. 5 Section 721(k)(2) of the Defense Production Act of 6 1950 (50 U.S.C. 4565(k)(2)) is amended— 7 (1) by redesignating subparagraphs (H), (I), 8 and (J) as subparagraphs (I), (J), and (K), respec-9 tively; and 10 (2) by inserting after subparagraph (G) the fol-11 lowing: 12 ‘‘(H) The Secretary of Agriculture, on all 13 transactions related to the purchase of agri-14 culture land, agriculture biotechnology, and any 15 other transaction related to the agriculture in-16 dustry in the United States, as determined by 17 the Secretary of Agriculture.’’. 18 SEC. 6. RULEMAKING. 19 Not later than the end of the 120-day period begin-20 ning on the date of enactment of this Act, the Committee 21 on Foreign Investment in the United States shall issue 22 rules to carry out the amendments made by this Act. 23 Æ VerDate Sep 11 2014 06:29 Aug 08, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6301 E:\BILLS\H4577.IH H4577 pbinns on DSKJLVW7X2PROD with $$_JOB