Foreign Investment Reorganization Act of 1983

Foreign Investment Reorganization Act of 1983 - Title I: Foreign Investment Commission - Part A: Functions and Authority - Establishes an independent Foreign Investment Commission. Transfers to the Commission all functions relating to monitoring, analyzing, and reporting on the nature, extent, and impact of foreign investment in the United States and U.S. investment abroad: (1) of the Secretaries and Departments of Commerce and the Treasury and the Director and the Office of Management and Budget under the International Investment Survey Act of 1976; and (2) of the Secretary and the Department of Energy under a specified section of the Department of Energy Organization Act.

Transfers to the Commission all functions relating to formulating, developing, and implementing U.S. policy with respect to foreign investment in the United States: (1) of the Committee on Foreign Investment in the United States under section one of Executive Order 11858; and (2) of the United States Trade Representative under Reorganization Plan 3 of 1979.

Transfers to the Commission all functions relating to enforcing prohibitions and restrictions on foreign investment control, and influence in vital national interest sectors of the U.S. economy of the: (1) Secretary and the Department of Defense under the defense industrial security program; (2) Federal Communications Commission under the Communication Act of 1934; and (3) the Nuclear Regulatory Commission under the Atomic Energy Act of 1954.

Transfers to the Commission all functions relating to reviewing, examining, and limiting foreign investment in sensitive national interest sectors of the United States economy of the: (1) Civil Aeronautics Board under the Civil Aeronautics Act of 1938; and (2) the Secretary and the Department of the Interior under the Mineral Leasing Act of 1920, insofar as such functions relate to reciprocity determinations and enforcement as applied to foreign citizens.

Transfers to the Commission all functions relating to encouraging and promoting beneficial and nonsensitive foreign direct investment in new plant and equipment of the International Trade Administration and the Economic Development Administration of the Department of Commerce.

Transfers to the Commission specified agencies (or portions thereof) from the following Departments: (1) the Department of Commerce; (2) the Department of State; (3) the Department of the Treasury; (4) the Department of Energy; (5) the Department of Defense; (6) the Office of the United States Trade Representative; and (7) the Department of the Interior.

Requires the Commission to: (1) monitor, evaluate, analyze, and report on the extent and impact of foreign investment in the U.S. economy; (2) develop and implement U.S. policy with respect to foreign investment; (3) enforce prohibitions on foreign acquisition in vital national interest sectors; (4) review and examine foreign acquisitions in vital national interest sectors; (5) issue advisory opinions; (6) participate in the negotiation of bilateral and multinational agreements relating to international investment; (7) promote beneficial foreign investment in nonsensitive sectors of the economy; (8) monitor the behavior of foreign owned corporations in vital and important national interest sectors; (9) compile complaints and objections from U.S. business enterprises on the lack of reciprocity in other countries to investment in nonsensitive sectors of their economies; and (10) investigate possible violations of this Act.

Makes it unlawful for any foreign person to acquire a significant interest in any business which is engaged, or has been within a specified number of the preceding years, in activities in a vital or sensitive national interest sector of the U.S. economy, subject to certain exceptions. Requires specified information to be furnished to the Commission by prospective buyers. Authorizes the Commission to require the establishment of a voting trust for any foreign person acquiring an interest in sensitive national interest sectors. Requires the Commission, in determining whether or not to permit an exception to the prohibition against foreign investment in sensitive national interest sectors of the economy to consider: (1) any benefits of such acquisition; (2) the possible effects on national security; (3) the foreign policy implications of the acquisition; and (4) the effects of the acquisition on domestic and international competition. Requires the Commission to prepare a statement of the legal and factual basis of each determination.

Grants the Commission investigative and enforcement authority, including: (1) the power to issue subpoenas; and (2) the authority to bring suit in the appropriate court for violations of this Act. Establishes civil and criminal penalties for violations of this Act.

Establishes under the administrative jurisdiction of the Commission, an Advisory Committee on Foreign Investment, to be composed of representatives designated by the heads of specified agencies.

Abolishes the Committee on Foreign Investment in the United States.

Directs the Commission to prepare an annual report to be submitted to the President and Congress on the administrative functions of the Commission for the preceding fiscal year.

Part B: Administrative Provisions - Sets forth relevant administrative provisions concerning the Commission, including the establishment of a working capital fund for the expenses of administrative services.

Part C: Transitional and Savings Provisions - Sets forth provisions relating to: (1) the transfers and allocation of appropriations and personnel; (2) officers and employees; and (3) experts and consultants. Terminates specified agencies which have had all of their functions transferred to the Commission.

Part D: Definitions - Defines a business engaged in activities in a "vital national interest sector of the United States economy" as one conducting activities in any one or more of the following areas: (1) armaments and defense goods and services (2) nuclear energy; (3) nuclear weapons production or facilities operation; and (4) telecommunications. Defines a business engaged in activities in a "sensitive national interest sector of the United States economy" as one engaged in any one or more of the following areas: (1) banking; (2) transportation; (3) power generation and distribution; (4) petroleum and natural gas exploration; (5) mining or mineral extraction; (6) chemicals; (7) pharmaceuticals; (8) advanced technology having possible defense applications; and (9) forestry operations and holdings.

States that a foreign person has acquired a signficant interest: (1) in any corporation whose equity securities are publicly traded; upon acquiring more than five percent of any class of any equity security of the corporation; (2) in any corporation whose equity securities are not publicly traded, upon acquiring more than ten percent of any class of any equity security of the corporation; (3) in any unincorporated business, upon acquiring more than 20 percent of the voting securities; (4) in the assets of a business enterprise, upon acquiring so much of the assets or other property of such enterprise as is sufficient to carry out one or more of the business activities of such enterprise; (5) in any business enterprise, upon acquiring more than 25 percent of the total outstanding debt of such enterprise; (6) in any business enterprise, whenever such foreign person directly or indirectly exercises by means of any agreement control or substantial influence over the conduct of the business; and (7) in any business in a vital national interest sector whenever such foreign person accounts for 25 percent or more of the gross sales, total income, or net profit of the business, or when 50 percent or more of the gross sales, total income, or net profit is derived from a single country.

Part E: Effective Date; Related Provisions - Sets forth provisions relating to the effective date and interim appointments.

Title II: Amendments to the International Investment Survey Act - Amends the International Investment Survey Act of 1976 (the Act) to direct the President to annually publish a report on all foreign direct and portfolio investment, on a country-by-country and industry subsector basis.

Requires each foreign person and foreign affiliate, within 15 days of taking any action which results in an international direct investment, to register such investment with the President. Excludes investment in a residence for personal use or in a U.S. business whose gross sales, total income, and net profit are each less than $5,000,000.

Revises provisions under the Act relating to access to information determined to be necessary to carry out international investment surveys and studies conducted under the Act. Directs the President to furnish access to such information, including statistical data, to researchers, analysts, academicians, students, and to: (1) publish an inventory of such information; (2) establish procedure to gain access to the information; (3) prepare the data in a way which does not specifically identify the name of the person furnishing such information; and (4) make such information available in a manner which is not financially prohibitive to persons requesting it.

Revises the enforcement provisions under the Act. Sets the maximum civil penalty at $1,000,000, for failure to furnish information required or for knowingly furnishing misleading information. Permits imprisonment for up to one year and/or a fine of up to $15,000 as criminal penalties for the above.

Redefines "direct investment" to mean the ownership or control by one person of: (1) five percent or more of the voting securities of an incorporated business, if the equity securities are publicly traded; (2) ten percent or more of the voting securities of an incorporated business, if the equity securities are not publicly traded; or (3) an interest equal to ten percent of the voting securities in an unincorporated business. Provides further that "direct investment" shall mean the holding by one person of 25 percent or more of the outstanding debt of a business.