What This Bill Does
This bill changes rules about foreign investment in American agriculture. It adds the Secretary of Agriculture to a government committee that reviews foreign business deals. It also requires the government to review and potentially block certain purchases of agricultural businesses and farmland by people from specific countries.
Who It Affects
- The Secretary of Agriculture
- Foreign investors and companies
- U.S. businesses engaged in agriculture
- Private farmland owners in the United States
- The President of the United States
- Congress committees dealing with agriculture
Key Provisions
- The Secretary of Agriculture must join the Committee on Foreign Investment in the United States, which reviews foreign business deals (Sec. 2(a)(2)).
- The government must review when a foreign person invests in an unaffiliated U.S. business involved in agriculture or agriculture-related biotechnology (Sec. 2(a)(1)(ii)).
- The government must review when a foreign person buys, leases or obtains a concession for private farmland in the United States (Sec. 2(a)(1)(ii)).
- The President must prohibit transactions if a covered foreign person would gain control of an agricultural business or farmland, unless the President waives the prohibition at least 30 days after reporting to Congress that the waiver is vital to national security (Sec. 2(a)(3)).
- The Secretary of Agriculture must submit a report every 180 days starting 180 days after the bill becomes law about risks that foreign purchases of U.S. agricultural businesses pose to American agriculture (Sec. 2(b)).
What Changes
The government gains new power to block foreign purchases of American agricultural companies and farmland. The Agriculture Secretary joins the foreign investment review committee. Starting 180 days after this becomes law, the Agriculture Secretary must report every 180 days on risks from foreign agricultural purchases.
Important Definitions
- "Agriculture" means the same thing defined in section 3 of the Fair Labor Standards Act of 1938 (Sec. 2(a)(1)(B)).
- "Covered foreign person" means a person who: acts on behalf of or is directed by the government of a prohibited country; is a citizen of a prohibited country; is registered or organized in a prohibited country; has a principal place of business in a prohibited country; or is a subsidiary of one of these entities (Sec. 2(a)(3)).
- "Prohibited country" means the People's Republic of China, the Russian Federation, the Islamic Republic of Iran, or the Democratic People's Republic of Korea (Sec. 2(a)(3)).
I
118TH CONGRESS
1ST SESSION
H. R. 683
To amend the Defense Production Act of 1950 to include the Secretary
of Agriculture on the Committee on Foreign Investment in the United
States and require review of certain agricultural transactions, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 31, 2023
Ms. STEFANIK (for herself, Mr. CRAWFORD, Mr. COSTA, Mr. FITZPATRICK,
Mr. JOHNSON of Louisiana, Mr. VALADAO, Mr. AUSTIN SCOTT of Geor-
gia, Mrs. MILLER-MEEKS, Mr. MOORE of Alabama, Mr. RUTHERFORD,
Mr. BAIRD, Mr. JOHNSON of South Dakota, Mr. MOLINARO, Mr.
NEWHOUSE, Mr. NORMAN, Mr. MILLER of Ohio, Mr. DESJARLAIS, Mr.
LAMALFA, Mr. COLE, and Ms. TENNEY) introduced the following bill;
which was referred to the Committee on Financial Services, and in addi-
tion to the Committees on Foreign Affairs, 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 amend the Defense Production Act of 1950 to include
the Secretary of Agriculture on the Committee on For-
eign Investment in the United States and require review
of certain agricultural transactions, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
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•HR 683 IH
SECTION 1. SHORT TITLE.
1
This Act may be cited as the ‘‘Promoting Agriculture
2
Safeguards and Security Act of 2023’’ or the ‘‘PASS Act
3
of 2023’’.
4
SEC.
2.
REVIEW
OF
AGRICULTURE-RELATED
TRANS-
5
ACTIONS BY CFIUS.
6
(a) IN GENERAL.—Section 721 of the Defense Pro-
7
duction Act of 1950 (50 U.S.C. 4565) is amended—
8
(1) in subsection (a)—
9
(A) in paragraph (4)—
10
(i) in subparagraph (A)—
11
(I) in clause (i), by striking ‘‘;
12
and’’ and inserting a semicolon;
13
(II) in clause (ii), by striking the
14
period at the end and inserting ‘‘;
15
and’’; and
16
(III) by adding at the end the
17
following:
18
‘‘(iii) any transaction described in
19
clause (vi) or (vii) of subparagraph (B)
20
proposed or pending on or after the date of
21
the enactment of this clause.’’;
22
(ii) in subparagraph (B), by adding at
23
the end the following:
24
‘‘(vi) Any other investment, subject to
25
regulations
prescribed
under
subpara-
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•HR 683 IH
graphs (D) and (E), by a foreign person in
1
any unaffiliated United States business
2
that is engaged in agriculture or bio-
3
technology related to agriculture.
4
‘‘(vii) Subject to subparagraphs (C)
5
and (E), the purchase or lease by, or a
6
concession to, a foreign person of private
7
real estate that is—
8
‘‘(I) located in the United States;
9
and
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‘‘(II) used in agriculture.’’;
11
(iii) in subparagraph (C)(i), by strik-
12
ing ‘‘subparagraph (B)(ii)’’ and inserting
13
‘‘clause (ii) or (vii) of subparagraph (B)’’;
14
(iv) in subparagraph (D)—
15
(I) in clause (i), by striking ‘‘sub-
16
paragraph
(B)(iii)’’
and
inserting
17
‘‘clauses (iii) and (vi) of subparagraph
18
(B)’’;
19
(II) in clause (iii)(I), by striking
20
‘‘subparagraph (B)(iii)’’ and inserting
21
‘‘clauses (iii) and (vi) of subparagraph
22
(B)’’;
23
(III) in clause (iv)(I), by striking
24
‘‘subparagraph (B)(iii)’’ each place it
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•HR 683 IH
appears and inserting ‘‘clauses (iii)
1
and (vi) of subparagraph (B)’’; and
2
(IV) in clause (v), by striking
3
‘‘subparagraph (B)(iii)’’ and inserting
4
‘‘clauses (iii) and (vi) of subparagraph
5
(B)’’; and
6
(v) in subparagraph (E), by striking
7
‘‘clauses (ii) and (iii)’’ and inserting
8
‘‘clauses (ii), (iii), (iv), and (vii)’’; and
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(B) by adding at the end the following:
10
‘‘(14) AGRICULTURE.—The term ‘agriculture’
11
has the meaning given such term in section 3 of the
12
Fair Labor Standards Act of 1938 (29 U.S.C.
13
203).’’;
14
(2) in subsection (k)(2)—
15
(A) by redesignating subparagraphs (H),
16
(I), and (J), as subparagraphs (I), (J), and
17
(K), respectively; and
18
(B) by inserting after subparagraph (G)
19
the following new subparagraph:
20
‘‘(H) The Secretary of Agriculture.’’; and
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(3) by adding at the end the following:
22
‘‘(r) PROHIBITION WITH RESPECT
TO AGRICUL-
23
TURAL COMPANIES AND REAL ESTATE.—
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•HR 683 IH
‘‘(1) IN GENERAL.—Notwithstanding any other
1
provision of this section, if the Committee, in con-
2
ducting a review and investigation under this sec-
3
tion, determines that a transaction described in
4
clause (i), (vi), or (vii) of subsection (a)(4)(B) would
5
result in control by a covered foreign person of or
6
investment by a covered foreign person in a United
7
States business engaged in agriculture or private
8
real estate used in agriculture, the President shall
9
prohibit such transaction.
10
‘‘(2) WAIVER.—The President may waive, on a
11
case-by-case basis, the requirement to prohibit a
12
transaction under paragraph (1), not less than 30
13
days after the President determines and reports to
14
the relevant committees of jurisdiction that it is vital
15
to the national security interests of the United
16
States to waive such prohibition.
17
‘‘(3) DEFINED TERMS.—In this subsection:
18
‘‘(A) COVERED
FOREIGN
PERSON.—The
19
term ‘covered foreign person’ means a person
20
that is—
21
‘‘(i) acting on behalf of or otherwise
22
directed by the government of a prohibited
23
country;
24
‘‘(ii) a citizen of a prohibited country;
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•HR 683 IH
‘‘(iii) an entity that—
1
‘‘(I) is registered or organized in
2
a prohibited country; or
3
‘‘(II) has a principal place of
4
business in a prohibited country; or
5
‘‘(iv) a subsidiary of an entity de-
6
scribed in clause (iii).
7
‘‘(B) PROHIBITED
COUNTRY.—The term
8
‘prohibited country’ means any of the following:
9
‘‘(i) The People’s Republic of China.
10
‘‘(ii) The Russian Federation.
11
‘‘(iii) The Islamic Republic of Iran.
12
‘‘(iv) The Democratic People’s Repub-
13
lic of Korea.’’.
14
(b) REPORT REQUIRED.—Not later than 180 days
15
after the date of the enactment of this Act, and every 180
16
days thereafter, the Secretary of Agriculture shall submit
17
to the Committee on Agriculture of the House of Rep-
18
resentatives and the Committee on Agriculture, Nutrition,
19
and Forestry of the Senate a report on the risks that for-
20
eign purchases of United States businesses engaged in ag-
21
riculture (as such term is defined in section 3 of the Fair
22
Labor Standards Act of 1938 (29 U.S.C. 203)) pose to
23
the agricultural sector of the United States.
24
Æ
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