[Senate Report 113-252]
[From the U.S. Government Publishing Office]
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
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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.