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113th Congress                                                   Report
                                 SENATE
 2d Session                                                     113-252
_______________________________________________________________________

                                     

                                                       Calendar No. 557

 
             GLOBAL INVESTMENT IN AMERICAN JOBS ACT OF 2013

                               __________

                              R E P O R T

                                 of the

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                               H. R. 2052




               September 10, 2014.--Ordered to be printed
       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                    one hundred thirteenth congress
                             second session

             JOHN D. ROCKEFELLER IV, West Virginia, Chairman
 BARBARA BOXER, California            JOHN THUNE, South Dakota
 BILL NELSON, Florida                 ROGER F. WICKER, Mississippi
 MARIA CANTWELL, Washington           ROY BLUNT, Missouri
 MARK PRYOR, Arkansas                 MARCO RUBIO, Florida
 CLAIRE McCASKILL, Missouri           KELLY AYOTTE, New Hampshire
 AMY KLOBUCHAR, Minnesota             DEAN HELLER, Nevada
 MARK BEGICH, Alaska                  DANIEL COATS, Indiana
 RICHARD BLUMENTHAL, Connecticut      TIM SCOTT, South Carolina
 BRIAN SCHATZ, Hawaii                 TED CRUZ, Texas
 ED MARKEY, Massachusetts             DEB FISCHER, Nebraska
 CORY BOOKER, New Jersey              RON JOHNSON, Wisconsin
 JOHN WALSH, Montana
                     Ellen Doneski, Staff Director
                     John Williams, General Counsel
              David Schwietert, Republican Staff Director
              Nick Rossi, Republican Deputy Staff Director
               Rebecca Seidel, Republican General Counsel
                                                       Calendar No. 557
113th Congress                                                   Report
                                 SENATE
 2d Session                                                     113-252

======================================================================




             GLOBAL INVESTMENT IN AMERICAN JOBS ACT OF 2013

                                _______
                                

               September 10, 2014.--Ordered to be printed

                                _______
                                

     Mr. Rockefeller, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                       [To accompany H. R. 2052]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (H.R. 2052) to direct the Secretary 
of Commerce, in coordination with the heads of other relevant 
Federal departments and agencies, to conduct an interagency 
review of and report to Congress on ways to increase the global 
competitiveness of the United States in attracting foreign 
direct investment, having considered the same, reports 
favorably thereon without amendment and recommends that the 
bill do pass.

                          Purpose of the Bill

    The purpose of H.R. 2052, the Global Investment in American 
Jobs Act of 2013, is to encourage foreign direct investment 
(FDI) in the United States by directing the Department of 
Commerce, in conjunction with other Federal agencies and 
departments, to conduct an interagency review of ways to 
increase the country's competitiveness in attracting FDI from 
businesses around the world.

                          Background and Needs

    FDI is investment by a foreign company in an affiliate 
company located in the United States. Such investment is a key 
component of the American economy. The American subsidiaries of 
companies headquartered abroad employ over 5 million American 
workers, including more than 2 million manufacturing workers, 
and produce nearly 18 percent of U.S. exports. However, from 
1999 to 2009, the U.S. share of global investment declined 
substantially as other countries began to attract investment at 
higher rates.
    The Global Investment in American Jobs Act of 2013 would 
aim to increase FDI and regain this lost ground by recognizing 
the intense global competition for FDI and the United States' 
declining share of the world's invested capital. The bill would 
express the Sense of Congress that it is a top priority to 
enhance the Nation's competitiveness, prosperity, and security 
by ensuring the United States remains the premier global 
destination in which to invest, hire, innovate, and 
manufacture. The legislation would also task the Department of 
Commerce with assessing U.S. competitiveness for attracting 
FDI, producing a review of policies at the Federal level that 
are closely linked to the ability to attract FDI, and making 
recommendations to ensure that the laws, regulations, and 
policies of the United States are properly aligned to give 
confidence to investors to create American jobs. The review 
would be conducted in coordination with the Federal Interagency 
Investment Working Group, established by section 2(d) of 
Executive Order 13577, and the heads of other relevant Federal 
departments and agencies.

                         Summary of Provisions

    H.R. 2052 would direct the Secretary of Commerce, in 
coordination with other Federal agencies and departments, to 
conduct an interagency review of ways to increase the country's 
competitiveness in attracting FDI from businesses around the 
world. The legislation would allow opportunity for public 
comment and would require the Department of Commerce to issue a 
report to Congress on its findings and recommendations for 
increasing FDI without weakening labor, consumer, financial, or 
environmental protections.

                          Legislative History

    Representative Lee Terry introduced H.R. 2052 on May 20, 
2013, with Representatives John Barrow, Peter J. Roskam, and 
Janice D. Schakowsky as original cosponsors. Senators Corker, 
Blunt, Hagan, and Klobuchar introduced a Senate companion, S. 
1023, on May 22, 2013. The House Energy and Commerce Committee 
ordered H.R. 2052 to be reported as amended by unanimous 
consent on July 17, 2013, and the full House of Representatives 
passed the bill on September 9, 2013, by a vote of 379 to 32.
    On April 9, 2014, in an open Executive Session, the 
Committee considered the bill and reported H.R. 2052 favorably 
by voice vote.

                            Estimated Costs

    In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

H.R. 2052--Global Investment in American Jobs Act of 2013

    H.R. 2052 would direct the Secretary of Commerce, in 
coordination with other relevant agencies, to review the 
competitiveness of the United States in attracting investment 
by foreign businesses. Within one year of enactment of the 
bill, the Secretary would be required to report to the Congress 
the results of the review as well as recommendations for 
increasing the United States' ability to attract foreign 
investment.
    Based on information from the Department of Commerce, CBO 
estimates that, assuming the availability of appropriated 
funds, implementing H.R. 2052 would cost about $1 million over 
the 2015-2019 period to conduct the review and prepare the 
report. Enacting H.R. 2052 would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply.
    H.R. 2052 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    On July 24, 2013, CBO transmitted a cost estimate for H.R. 
2052 as ordered reported by the House Committee on Energy and 
Commerce on July 17, 2013. The House and Senate versions of the 
legislation are identical and the CBO cost estimates are the 
same.
    The CBO staff contact for this estimate is Susan Willie. 
The estimate was approved by Theresa Gullo, Deputy Assistant 
Direct for Budget Analysis.

                           Regulatory Impact

    In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                       number of persons covered

    H.R. 2052 would direct the Department of Commerce to work 
with other Federal agencies and departments to report on ways 
to increase FDI to the United States, and it would not impact 
any additional entities.

                            economic impact

    This legislation is not expected to have an adverse 
economic impact on the Nation.

                                privacy

    H.R. 2052 would not have a negative impact on the personal 
privacy of individuals.

                               paperwork

    H.R. 2052 would create new reporting requirements for the 
Department of Commerce. Not later than one year after the date 
of enactment, the Secretary of Commerce would be required to 
submit to Congress a report of the findings of the interagency 
review and of recommendations for increasing the global 
competitiveness of the United States in attracting FDI without 
weakening labor, consumer, financial, or environmental 
protections.

                   Congressionally Directed Spending

    In compliance with paragraph 4(b) of rule XLIV of the 
Standing Rules of the Senate, the Committee provides that no 
provisions contained in the bill, as reported, meet the 
definition of congressionally directed spending items under the 
rule.


                      Section-by-Section Analysis


Section 1. Short title

    This section would establish the title of the bill as the 
Global Investment in American Jobs Act of 2013.

Section 2. Findings

    This section would include findings on the urgent nature of 
the need to improve economic growth and create jobs, as well as 
the potential for FDI to play a role in accomplishing these 
goals.

Section 3. Sense of Congress

    This section would provide the Sense of Congress in support 
of the need to attract FDI to enhance the country's economic 
security and global competitiveness.

Section 4. Foreign direct investment review

    Subsection (a) would require the Secretary of Commerce to 
conduct an interagency review of the global competitiveness of 
the United States in attracting FDI. The review would be 
conducted in coordination with the Federal Interagency 
Investment Working Group and the heads of other relevant 
Federal departments and agencies.
    Subsection (b) would mandate that the review include 
several specific facets of FDI. The review would be required to 
include assessments of: (1) the current economic impact of FDI 
in the United States; (2) trends in global cross-border 
investment flows; (3) Federal policies that are closely linked 
to the ability to attract FDI; (4) FDI as compared to direct 
investment by domestic entities; (5) ``greenfield'' FDI, in 
which foreign investors create a new, productive unit, as 
compared to FDI reflecting merger-and-acquisition activity; (6) 
the unique challenges posed by FDI by state-owned enterprises; 
(7) ongoing Federal efforts to facilitate greater levels of 
FDI; (8) innovative State, regional, and local efforts to 
attract FDI; and (9) initiatives by other countries to attract 
FDI in order to identify best practices.
    Subsection (c) would limit the scope of the review to 
exclude any consideration of laws or policies relating to the 
Committee on Foreign Investment in the United States (CFIUS). 
CFIUS is the interagency committee chaired by the Secretary of 
the Treasury that is responsible for assessing the national 
security consequences of transactions that could result in 
control of a U.S. business by a foreign person.
    Subsection (d) would call on the Secretary of Commerce to 
provide opportunity for public comment on the matters covered 
by the review.
    Subsection (e) would require the Secretary of Commerce to 
report to Congress the findings of the review and submit 
recommendations for making the United States more competitive 
in attracting FDI without weakening labor, consumer, financial, 
or environmental protections.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee states that the 
bill as reported would make no change to existing law.