Press Release

ARCURI SUPPORTS LEGISLATION TO STREGTHEN NATIONAL SECURITY

Washington, DC -- As a member of the House Rules Committee, U.S. Representative Michael A. Arcuri (D-Utica) led the debate earlier today on the floor of the House of Representatives in support of legislation to enhance and strengthen the oversight process of foreign investments in the United States.

The legislation, the National Security FIRST Act (H.R. 556), is expected to pass the House with overwhelming bipartisan support, as it did last year.

“Protecting the safety and security of Americans is, without question, our top priority as members of this institution,” said Arcuri, who introduced House Resolution 195 providing for consideration of the legislation. 

“The controversy surrounding the Dubai ports scandal last year echoed far beyond the Washington beltway.  It was clear that the Administration dropped the ball, and that the national security review process for foreign investments had failed.  The National Security FIRST Act takes the next step after passage of the 9-11 Commission recommendations to improve port security, by providing the necessary reforms to the process and keep our infrastructure, our cities, and most importantly our constituents, safe and secure.” 

H.R. 556 would strengthen the interagency Committee on Foreign Investment in the United States (CFIUS) process by which the Federal Government reviews foreign investments in the United States for their national security implications, fixing key failures identified in the aftermath of the Dubai Ports World scandal that occurred last year. This bipartisan legislation was cosponsored by New York Representatives Carolyn B. Maloney (D-Manhattan) and Joseph Crowley (D-Woodside).  It is strongly supported by the Business Roundtable, the U.S. Chamber of Commerce, and the National Association of Manufacturers (NAM).

In July of last year, the House passed a similar bill (H.R. 5337) by a vote of 424 to 0 and the Senate passed its own version (S. 3549). 

A copy of Arcuri’s floor speech is attached below.

U.S. Representative Michael A. Arcuri
In the House of Representatives
Opening Statement on H.Res.195
February 28, 2007

            Mr. Speaker, by direction of the Committee on Rules I call up House Resolution 195 and ask for its immediate consideration. 

            For the purpose of debate only, I yield the customary 30 minutes to the gentleman from Washington, Mr. Hastings.  All time yielded during consideration of the rule is for debate only.  I yield myself such time as I may consume and ask unanimous consent to revise and extend my remarks. 

            Mr. Speaker, House Resolution 195 provides for consideration of H.R. 556, the National Security Foreign Investment Reform and Strengthened Transparency Act of 2007, under an open rule with a preprinting requirement.  The rule provides one hour of general debate equally divided and controlled by the chairman and ranking minority member of the Committee on Financial Services.
           
            The rule waives all points of order against consideration of the bill except for clause 9 and 10 of Rule 21.  The rule makes in order the amendment in the nature of a substitute reported by the Committee on Financial Services as an original bill for the purpose of amendment, which shall be considered for amendment by section with each section considered as read.  The rule provides that any amendment to the committee amendment in the nature of a substitute must be printed in the Congressional Record prior to consideration of the bill.   Each amendment so printed may be offered only by the Member who caused it to be printed or his designee and shall be considered as read.
             
            Finally, the rule provides one motion to recommit with or without instructions.

            Mr. Speaker, foreign investment creates jobs and serves as a vital component of our nation’s economy.  However, we as a nation cannot afford to sacrifice safety and security with a foreign investment review process that jeopardizes American lives. 

            Take for instance our nation’s ports, which employ thousands of Americans and handle a large majority of U.S. - bound cargo.  New Yorkers, and many of my colleagues, take the security of those ports very - very -seriously.  We as a country cannot go half-way on port security – we must take all the necessary steps to ensure the safety and security of our infrastructure, and more importantly, our constituents. 

            We took a giant step in the right direction on port security a few weeks ago when we approved legislation that would require screening of 100% of all U.S. - bound shipping containers over the next five years.  And today, we are taking another step by reforming and strengthening the interagency Committee on Foreign Investment in the United States (CFIUS) process by which the federal government reviews foreign investments in the United States for their national security implications.

            As a freshman member, I am new to this institution, but the controversy surrounding the Dubai ports scandal last year echoed far beyond the Washington beltway.  I, along with many of my constituents, was troubled by the Administration’s approval of a deal to allow a company owned by the government of the United Arab Emirates to manage terminal operations at six major U.S. ports.  It was clear that the Administration dropped the ball, and that the national security review process for foreign investments had failed.

            The National Security FIRST Act would significantly reform the foreign investment review process -- so that we never have another Dubai debacle -- by ensuring that the proper steps are taken to keep our ports, our cities, and our citizens, safe and secure. 

            The National Security FIRST Act also requires the interagency Committee on Foreign Investment in the U.S. to conduct a 30-day review of any national security-related business transaction.  After a 30-day review is conducted, it would be required to conduct a full-scale, 45-day investigation of the effects the business transaction would have on national security, if necessary. 

            In addition, the legislation requires the Committee to file semi-annual reports to Congress – keeping the American people informed and shedding some much-needed sunlight and transparency on foreign investments in U.S. infrastructure that could have potentially devastating consequences. 

            And while the legislation strengthens and reforms the process, it also allows the critical flow of foreign investment in the U.S. economy to continue, which is critical if we are going to successfully compete with the rest of the world in this age of the global economy.
                       
            I reserve the balance of my time.

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