Regulations Pertaining to Certain Investments in the United States by Foreign Persons and Regulations Pertaining to Certain Transactions by Foreign Persons Involving Real Estate in the United States, 62978-62980 [2021-24597]
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Federal Register / Vol. 86, No. 217 / Monday, November 15, 2021 / Proposed Rules
This proposed rule, if finalized, does
not exceed the $100-million
expenditure in any one year when
adjusted for inflation, and this
rulemaking does not contain such a
mandate. The requirements of title II of
UMRA, therefore, do not apply, and the
Department has not prepared a
statement under the Act.
F. Executive Order 13175 (Indian Tribal
Governments)
The Department has reviewed this
proposed rule in accordance with E.O.
13175 and has determined that it does
not have tribal implications. The
proposed rule does not have substantial
direct effects on one or more Indian
tribes, on the relationship between the
Federal Government and Indian tribes,
or on the distribution of power and
responsibilities between the Federal
Government and Indian tribes.
List of Subjects in 29 CFR Part 29
Apprenticeability criteria, Apprentice
agreements and complaints,
Apprenticeship programs, Program
standards, Registration and
deregistration, Sponsor eligibility, State
apprenticeship agency recognition and
derecognition.
For the reasons stated in the
preamble, the Department proposes to
amend 29 CFR part 29 as follows:
PART 29—LABOR STANDARDS FOR
THE REGISTRATION OF
APPRENTICESHIP PROGRAMS
1. The authority citation for part 29 is
revised to read as follows:
■
Authority: 9 U.S.C. 50; 40 U.S.C. 3145; 5
U.S.C. 301; 5 U.S.C. App. P. 534.
2. Remove the designation of subpart
A and the associated heading.
■ 3. Amend § 29.1 by:
■ a. Revising the section heading; and
■ b. In paragraph (b), removing the word
‘‘subpart’’ and adding the word ‘‘part’’
in its place.
The revision reads as follows:
khammond on DSKJM1Z7X2PROD with PROPOSALS
§ 29.2
*
*
§ 29.14
[Amended]
6. Amend § 29.14 by:
a. In the introductory text, removing
the citation ‘‘part 29 subpart A, and part
30’’ and adding the citation ‘‘this part
and 29 CFR part 30’’ in its place; and
■ b. In paragraphs (e)(1) and (i),
removing the word ‘‘subpart’’ and
adding the word ‘‘part’’ in its place.
■
■
§ § 29.3,
29.6, 29.10, and 29.11 [Amended]
7. In addition to the amendments set
forth above, in 29 CFR part 29, remove
the word ‘‘subpart’’ and add in its place
the word ‘‘part’’ in the following places:
■ a. Section 29.3(b)(1), (g) introductory
text, and (h);
■ b. Section 29.6(b)(2);
■ c. Section 29.10(a)(2); and
■ d. Section 29.11 introductory text.
■
Subpart B—[Removed]
Angela Hanks,
Acting Assistant Secretary for Employment
and Training, Labor.
[FR Doc. 2021–24786 Filed 11–12–21; 8:45 am]
BILLING CODE 4510–FR–P
DEPARTMENT OF THE TREASURY
Office of Investment Security
Purpose and scope.
*
[Amended]
5. Amend § 29.13 by:
a. In paragraph (a)(1), removing the
citation ‘‘29 CFR part 29 subpart A, and
part 30’’ and adding the citation ‘‘this
part and 29 CFR part 30’’ in its place;
■ b. In paragraph (b)(1), removing the
citation ‘‘29 CFR part 29 subpart A’’ and
adding ‘‘this part’’ in its place;
■ c. In paragraphs (c) and (e)
introductory text, removing the word
‘‘subpart’’ and adding the word ‘‘part’’
in its place; and
■ d. In paragraph (e)(4), removing the
citation ‘‘part 29 subpart A’’ and adding
‘‘this part’’ in its place.
■
■
8. Remove subpart B, consisting of
§§ 29.20 through 29.31.
■
*
§ 29.13
■
Subpart A—[Amended]
§ 29.1
c. In the definition of Technical
assistance, removing the word
‘‘subpart’’ and adding the word ‘‘part’’
in its place.
■
*
31 CFR Parts 800 and 802
[Amended]
4. Amend § 29.2 by:
a. In the introductory text, removing
the word ‘‘subpart’’ and adding the
word ‘‘part’’ in its place;
■ b. In the definitions of Apprenticeship
program and Registration agency,
removing the citation ‘‘29 CFR part 29
subpart A, and part 30’’ and adding the
citation ‘‘this part and 29 CFR part 30’’
in its place; and
■
■
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Regulations Pertaining to Certain
Investments in the United States by
Foreign Persons and Regulations
Pertaining to Certain Transactions by
Foreign Persons Involving Real Estate
in the United States
Office of Investment Security,
Department of the Treasury.
ACTION: Proposed rule.
AGENCY:
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This proposed rule would
modify the definitions of ‘‘excepted
foreign state’’ and ‘‘excepted real estate
foreign state’’ by extending by one year
the effective date of one of two criteria
set forth in the definitions in the
regulations implementing certain
provisions of Section 721 of the Defense
Production Act of 1950, as amended.
DATES: Written comments must be
received by December 15, 2021.
ADDRESSES: Written comments on this
proposed rule may be submitted
through one of two methods:
• Electronic Submission: Comments
may be submitted electronically through
the Federal government eRulemaking
portal at https://www.regulations.gov.
Electronic submission of comments
allows the commenter maximum time to
prepare and submit a comment, ensures
timely receipt, and enables the
Department of the Treasury (Treasury
Department) to make the comments
available to the public. Please note that
comments submitted through https://
www.regulations.gov will be public, and
can be viewed by members of the
public.
• Mail: Send to U.S. Department of
the Treasury, Attention: Laura Black,
Director of Investment Security Policy
and International Relations, 1500
Pennsylvania Avenue NW, Washington,
DC 20220.
Please submit comments only and
include your name and company name
(if any), and cite ‘‘Proposed Regulations
Pertaining to Certain Investments in the
United States by Foreign Persons and
Proposed Regulations Pertaining to
Certain Transactions by Foreign Persons
Involving Real Estate in the United
States’’ in all correspondence. In
general, the Treasury Department will
post all comments to https://
www.regulations.gov/ without change,
including any business or personal
information provided, such as names,
addresses, email addresses, or telephone
numbers. All comments received,
including attachments and other
supporting material, will be part of the
public record and subject to public
disclosure. You should only submit
information that you wish to make
publicly available.
FOR FURTHER INFORMATION CONTACT:
Laura Black, Director of Investment
Security Policy and International
Relations, or Richard Rowe, Senior
Policy Advisor, at U.S. Department of
the Treasury, 1500 Pennsylvania
Avenue NW, Washington, DC 20220;
telephone: (202) 622–3425; email:
CFIUS.FIRRMA@treasury.gov.
SUPPLEMENTARY INFORMATION:
SUMMARY:
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Federal Register / Vol. 86, No. 217 / Monday, November 15, 2021 / Proposed Rules
I. Background
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A. The Statute
On August 13, 2018, the Foreign
Investment Risk Review Modernization
Act of 2018 (FIRRMA), Subtitle A of
Title XVII of Public Law 115–232, 132
Stat. 2173, was enacted. FIRRMA
amends section 721 (as amended,
section 721) of the Defense Production
Act of 1950, as amended, which
delineates the authorities and
jurisdiction of the Committee on
Foreign Investment in the United States
(CFIUS or the Committee). Executive
Order 13456, 73 FR 4677 (Jan. 23, 2008),
directs the Secretary of the Treasury to
issue regulations under section 721.
This proposed rule is being issued
pursuant to that authority.
FIRRMA maintains the Committee’s
jurisdiction over any transaction which
could result in foreign control of any
U.S. business and broadens the
authorities of the President and CFIUS
under section 721 to review and take
action to address national security
concerns arising from certain
noncontrolling investments and real
estate transactions involving foreign
persons. FIRRMA requires CFIUS to
specify criteria to limit the application
of FIRRMA’s expanded jurisdiction over
these noncontrolling investments and
real estate transactions to certain
categories of foreign persons.
B. Definitions of Excepted Foreign State
and Excepted Real Estate Foreign
State—Sections 800.218 and 802.214
On January 17, 2020, the Treasury
Department published a final rule at 85
FR 3112 (Part 800 Rule) that amended
31 CFR part 800 to implement CFIUS’s
jurisdiction over certain non-controlling
investments (which this rule describes
as ‘‘covered investments’’), as well as
certain other provisions of FIRRMA.
The Treasury Department also
published a final rule at 85 FR 3158
(Part 802 Rule) that established new
regulations at part 802 of title 31 of the
Code of Federal Regulations relating to
CFIUS’s authorities and the process and
procedures to review transactions
involving the purchase or lease by, or
concession to, a foreign person of
certain real estate in the United States.
The Part 800 Rule and the Part 802 Rule
each took effect on February 13, 2020,
and each address FIRRMA’s
requirement to limit the application of
FIRRMA’s expanded jurisdiction.
The ‘‘excepted foreign state’’
definition in the Part 800 Rule operates
together with other relevant terms to
exclude from CFIUS’s jurisdiction
covered investments by certain foreign
persons who meet certain criteria
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62979
establishing sufficiently close ties to
certain foreign states. Section 800.218
defines excepted foreign state by a twocriteria conjunctive test, with delayed
effectiveness for the second criterion.
The first criterion is that the Committee
identify a foreign state as an eligible
foreign state. The second criterion is
that, by the end of the two-year delayed
effectiveness period (i.e., by February
13, 2022), the Committee make a
determination under § 800.1001(a) for
each eligible foreign state as to whether
such foreign state ‘‘has established and
is effectively utilizing a robust process’’
to analyze foreign investments for
national security risks and to facilitate
coordination with the United States on
matters relating to investment security.
The ‘‘excepted real estate foreign
state’’ definition in the Part 802 Rule
operates together with other relevant
terms to exclude from CFIUS’s
jurisdiction certain real estate
transactions by certain foreign persons
who meet certain criteria establishing
sufficiently close ties to certain foreign
states. The Part 802 Rule applies a twocriteria conjunctive test in the definition
of excepted real estate foreign state that
is analogous to the test in the Part 800
Rule, except that the second criterion is
a determination under § 802.1001(a) that
the foreign state must have ‘‘made
significant progress’’ in establishing and
effectively utilizing the robust process
and coordination that is described in
§ 800.1001.
On January 17, 2020, the Committee
identified Australia, Canada, and the
United Kingdom of Great Britain and
Northern Ireland as eligible excepted
foreign states under the Part 800 Rule
and as eligible excepted real estate
foreign states under the Part 802 Rule.
Thus, as of February 13, 2020, when the
Part 800 Rule and the Part 802 Rule
became effective, each of the three
identified eligible foreign states was
deemed to be an excepted foreign state
and excepted real estate foreign state,
without regard in each case to the
second criterion, which is a
determination under §§ 800.1001 and
802.1001. In order to remain an
excepted foreign state and excepted real
estate foreign state after February 12,
2022, each foreign state must remain
eligible under §§ 800.218(a) and
802.214(a), respectively, and the
Committee must make the
determinations required under
§§ 800.1001(a) and 802.1001(a),
respectively, regarding the foreign state.
2023. The proposed rule therefore
would have the effect of extending the
delayed effectiveness period for the
second criterion in each of the Part 800
and Part 802 Rules without making any
change to the two-criteria conjunctive
test in either the definition of excepted
foreign state or the definition of
excepted real estate foreign state. The
proposed rule would make no change to
any country’s status as an excepted
foreign state or excepted real estate
foreign state. Under the proposed rule,
the Committee may make a
determination under § 800.1001 or
§ 802.1001 for an eligible foreign state,
including Australia, Canada, the United
Kingdom of Great Britain and Northern
Ireland and any other state that the
Committee identifies as eligible, at any
time before the revised February 13,
2023, date.
As stated in the preambles to the Part
800 Rule and the Part 802 Rule, the twoyear period of delayed effectiveness for
the second criterion in the definitions of
excepted foreign state and excepted real
estate foreign state was intended, in
part, to provide the initial eligible
foreign states time to ensure that their
national security-based foreign
investment review processes and
bilateral cooperation with the United
States on national security-based
investment reviews meet the
requirement under §§ 800.1001 and
802.1001. Extending the time period
before which such requirements become
applicable is desirable given certain
ongoing changes to foreign investment
review regimes.
II. Proposed Change
The proposed rule would change the
date in each of §§ 800.218 and 802.214
from February 13, 2022, to February 13,
Regulatory Flexibility Act
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III. Rulemaking Requirements
Executive Order 12866
These regulations are not subject to
the general requirements of Executive
Order 12866, which covers review of
regulations by the Office of Information
and Regulatory Affairs in the Office of
Management and Budget (OMB),
because they relate to a foreign affairs
function of the United States, pursuant
to section 3(d)(2) of that order. In
addition, these regulations are not
subject to review under section 6(b) of
Executive Order 12866 pursuant to
section 7(c) of the April 11, 2018,
Memorandum of Agreement between
the Treasury Department and OMB,
which states that CFIUS regulations are
not subject to OMB’s standard
centralized review process under
Executive Order 12866.
The Regulatory Flexibility Act (5
U.S.C. 601 et seq., RFA) generally
requires an agency to prepare a
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Federal Register / Vol. 86, No. 217 / Monday, November 15, 2021 / Proposed Rules
regulatory flexibility analysis unless the
agency certifies that the rule will not,
once implemented, have a significant
economic impact on a substantial
number of small entities. The proposed
rule would extend the delayed
effectiveness period for the second
criterion in each of the Part 800 and Part
802 Rules without making any change to
the two-criteria conjunctive test in
either the definition of excepted foreign
state or excepted real estate foreign
state. The proposed rule therefore
would not change the circumstances of
any investor. Both before and after the
proposed rule’s effectiveness, any
investor with sufficiently close ties to an
eligible foreign state may be excepted
from certain aspects of CFIUS’s
jurisdiction, including if engaging in a
transaction with a small business. Such
exception would be expected to lessen
the burden on any such small business.
The proposed rule therefore would not
impose any additional burden on
potential filers, including small
businesses. Considering the foregoing,
the Secretary of the Treasury certifies,
pursuant to 5 U.S.C. 605(b), that this
proposed rule will not have a significant
economic impact on a substantial
number of small entities.
3. The authority citation for part 802
continues to read:
■
Authority: 50 U.S.C. 4565; E.O. 11858, as
amended, 73 FR 4677.
Subpart B—Definitions
§ 802.214
[Amended]
4. Amend § 802.214 introductory text
by removing the year ‘‘2022’’ wherever
it appears and adding in its place
‘‘2023’’.
■
Larry McDonald,
Acting Assistant Secretary for International
Markets.
[FR Doc. 2021–24597 Filed 11–10–21; 4:15 pm]
BILLING CODE 4810–25–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
Safety Zone; Tchefuncte River,
Madisonville, LA; Correction
Foreign investments in the United
States, Investments.
AGENCY:
31 CFR Part 802
Investments, Real estate transactions
in the United States.
For the reasons set forth in the
preamble, the Treasury Department
proposes to amend 31 CFR parts 800
and 802 as follows:
PART 800—REGULATIONS
PERTAINING TO CERTAIN
INVESTMENTS IN THE UNITED
STATES BY FOREIGN PERSONS
1. The authority citation for part 800
continues to read:
■
Authority: 50 U.S.C. 4565; E.O. 11858, as
amended, 73 FR 4677.
Subpart B—Definitions
[Amended]
2. Amend § 800.218 introductory text
by removing the year ‘‘2022’’ wherever
it appears and adding in its place
‘‘2023’’.
■
VerDate Sep<11>2014
17:19 Nov 12, 2021
The
document published on November 10,
2021, at 86 FR 62500, contains an
incorrect public comment period end
date which closes on December 10,
2021, after the date of the event. The
comment period should have been 15
instead of 30 days with an end date of
November 22, 2021.
SUPPLEMENTARY INFORMATION:
Correction
In the Federal Register of November
10, 2021, in FR Doc. 2021–24588,
beginning on page 62500, the following
corrections are made:
1. On page 62500, in the third
column, in the DATES section, remove
the text, ‘‘December 10, 2021’’ and add
in its place the text ‘‘November 22,
2021’’.
Dated: November 10, 2021.
M.T. Cunningham,
Chief, Office of Regulations and
Administrative Law.
[FR Doc. 2021–24946 Filed 11–12–21; 8:45 am]
[Docket Number USCG–2021–0808]
31 CFR Part 800
§ 800.218
document, call or email Lieutenant
Commander William A. Stewart,
Waterways Management Division Chief,
U.S. Coast Guard; telephone 504–365–
2246, email William.A.Stewart@
uscg.mil.
BILLING CODE 9110–04–P
RIN 1625–AA08
List of Subjects
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PART 802—REGULATIONS
PERTAINING TO CERTAIN
TRANSACTIONS BY FOREIGN
PERSONS INVOLVING REAL ESTATE
IN THE UNITED STATES
Jkt 256001
Coast Guard, Department of
Homeland Security (DHS).
ACTION: Notice of proposed rulemaking;
correction.
The Coast Guard published a
notice of proposed rulemaking (NPRM)
in the Federal Register on November 10,
2021, titled ‘‘Safety Zone; Tchefuncte
River, Madisonville, LA.’’ The
document contained incorrect public
comment period which closes after the
date of the event. The comment period
should have been 15 instead of 30 days.
DATES: The NPRM published on
November 10, 2021, at 86 FR 62500, is
corrected as of November 15, 2021.
ADDRESSES: You may submit comments
identified by docket number USCG–
2021–0808 using the Federal Decision
Making Portal at https://
www.regulations.gov. See the ‘‘Public
Participation and Request for
Comments’’ portion of the
SUPPLEMENTARY INFORMATION section in
the NPRM published on November 10,
2021, at 86 FR 62500, for further
instructions on submitting comments.
FOR FURTHER INFORMATION CONTACT: If
you have questions about this
SUMMARY:
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DEPARTMENT OF THE INTERIOR
Fish and Wildlife Service
50 CFR Part 17
[Docket No. FWS–R4–ES–2018–0035;
FXES11130400000–212–FF04E00000]
RIN 1018–BB98
Endangered and Threatened Wildlife
and Plants; Replacement of the
Regulations for the Nonessential
Experimental Population of Red
Wolves in Northeastern North Carolina
Fish and Wildlife Service,
Interior.
ACTION: Proposed rule; withdrawal.
AGENCY:
We, the U.S. Fish and
Wildlife Service (Service), withdraw the
proposed rule to replace the existing
regulations governing the North
Carolina nonessential experimental
population designation of the red wolf
(Canis rufus) under section 10(j) of the
Endangered Species Act (Act), as
amended. Based on recent court
decisions involving the North Carolina
nonessential experimental population
designation of the red wolf (NC NEP),
having considered the public comments
submitted in response to the proposed
SUMMARY:
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]]>Agencies
[Federal Register Volume 86, Number 217 (Monday, November 15, 2021)]
[Proposed Rules]
[Pages 62978-62980]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-24597]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of Investment Security
31 CFR Parts 800 and 802
Regulations Pertaining to Certain Investments in the United
States by Foreign Persons and Regulations Pertaining to Certain
Transactions by Foreign Persons Involving Real Estate in the United
States
AGENCY: Office of Investment Security, Department of the Treasury.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would modify the definitions of ``excepted
foreign state'' and ``excepted real estate foreign state'' by extending
by one year the effective date of one of two criteria set forth in the
definitions in the regulations implementing certain provisions of
Section 721 of the Defense Production Act of 1950, as amended.
DATES: Written comments must be received by December 15, 2021.
ADDRESSES: Written comments on this proposed rule may be submitted
through one of two methods:
Electronic Submission: Comments may be submitted
electronically through the Federal government eRulemaking portal at
https://www.regulations.gov. Electronic submission of comments allows
the commenter maximum time to prepare and submit a comment, ensures
timely receipt, and enables the Department of the Treasury (Treasury
Department) to make the comments available to the public. Please note
that comments submitted through https://www.regulations.gov will be
public, and can be viewed by members of the public.
Mail: Send to U.S. Department of the Treasury, Attention:
Laura Black, Director of Investment Security Policy and International
Relations, 1500 Pennsylvania Avenue NW, Washington, DC 20220.
Please submit comments only and include your name and company name
(if any), and cite ``Proposed Regulations Pertaining to Certain
Investments in the United States by Foreign Persons and Proposed
Regulations Pertaining to Certain Transactions by Foreign Persons
Involving Real Estate in the United States'' in all correspondence. In
general, the Treasury Department will post all comments to https://www.regulations.gov/ without change, including any business or personal
information provided, such as names, addresses, email addresses, or
telephone numbers. All comments received, including attachments and
other supporting material, will be part of the public record and
subject to public disclosure. You should only submit information that
you wish to make publicly available.
FOR FURTHER INFORMATION CONTACT: Laura Black, Director of Investment
Security Policy and International Relations, or Richard Rowe, Senior
Policy Advisor, at U.S. Department of the Treasury, 1500 Pennsylvania
Avenue NW, Washington, DC 20220; telephone: (202) 622-3425; email:
[email protected].
SUPPLEMENTARY INFORMATION:
[[Page 62979]]
I. Background
A. The Statute
On August 13, 2018, the Foreign Investment Risk Review
Modernization Act of 2018 (FIRRMA), Subtitle A of Title XVII of Public
Law 115-232, 132 Stat. 2173, was enacted. FIRRMA amends section 721 (as
amended, section 721) of the Defense Production Act of 1950, as
amended, which delineates the authorities and jurisdiction of the
Committee on Foreign Investment in the United States (CFIUS or the
Committee). Executive Order 13456, 73 FR 4677 (Jan. 23, 2008), directs
the Secretary of the Treasury to issue regulations under section 721.
This proposed rule is being issued pursuant to that authority.
FIRRMA maintains the Committee's jurisdiction over any transaction
which could result in foreign control of any U.S. business and broadens
the authorities of the President and CFIUS under section 721 to review
and take action to address national security concerns arising from
certain noncontrolling investments and real estate transactions
involving foreign persons. FIRRMA requires CFIUS to specify criteria to
limit the application of FIRRMA's expanded jurisdiction over these
noncontrolling investments and real estate transactions to certain
categories of foreign persons.
B. Definitions of Excepted Foreign State and Excepted Real Estate
Foreign State--Sections 800.218 and 802.214
On January 17, 2020, the Treasury Department published a final rule
at 85 FR 3112 (Part 800 Rule) that amended 31 CFR part 800 to implement
CFIUS's jurisdiction over certain non-controlling investments (which
this rule describes as ``covered investments''), as well as certain
other provisions of FIRRMA. The Treasury Department also published a
final rule at 85 FR 3158 (Part 802 Rule) that established new
regulations at part 802 of title 31 of the Code of Federal Regulations
relating to CFIUS's authorities and the process and procedures to
review transactions involving the purchase or lease by, or concession
to, a foreign person of certain real estate in the United States. The
Part 800 Rule and the Part 802 Rule each took effect on February 13,
2020, and each address FIRRMA's requirement to limit the application of
FIRRMA's expanded jurisdiction.
The ``excepted foreign state'' definition in the Part 800 Rule
operates together with other relevant terms to exclude from CFIUS's
jurisdiction covered investments by certain foreign persons who meet
certain criteria establishing sufficiently close ties to certain
foreign states. Section 800.218 defines excepted foreign state by a
two-criteria conjunctive test, with delayed effectiveness for the
second criterion. The first criterion is that the Committee identify a
foreign state as an eligible foreign state. The second criterion is
that, by the end of the two-year delayed effectiveness period (i.e., by
February 13, 2022), the Committee make a determination under Sec.
800.1001(a) for each eligible foreign state as to whether such foreign
state ``has established and is effectively utilizing a robust process''
to analyze foreign investments for national security risks and to
facilitate coordination with the United States on matters relating to
investment security.
The ``excepted real estate foreign state'' definition in the Part
802 Rule operates together with other relevant terms to exclude from
CFIUS's jurisdiction certain real estate transactions by certain
foreign persons who meet certain criteria establishing sufficiently
close ties to certain foreign states. The Part 802 Rule applies a two-
criteria conjunctive test in the definition of excepted real estate
foreign state that is analogous to the test in the Part 800 Rule,
except that the second criterion is a determination under Sec.
802.1001(a) that the foreign state must have ``made significant
progress'' in establishing and effectively utilizing the robust process
and coordination that is described in Sec. 800.1001.
On January 17, 2020, the Committee identified Australia, Canada,
and the United Kingdom of Great Britain and Northern Ireland as
eligible excepted foreign states under the Part 800 Rule and as
eligible excepted real estate foreign states under the Part 802 Rule.
Thus, as of February 13, 2020, when the Part 800 Rule and the Part 802
Rule became effective, each of the three identified eligible foreign
states was deemed to be an excepted foreign state and excepted real
estate foreign state, without regard in each case to the second
criterion, which is a determination under Sec. Sec. 800.1001 and
802.1001. In order to remain an excepted foreign state and excepted
real estate foreign state after February 12, 2022, each foreign state
must remain eligible under Sec. Sec. 800.218(a) and 802.214(a),
respectively, and the Committee must make the determinations required
under Sec. Sec. 800.1001(a) and 802.1001(a), respectively, regarding
the foreign state.
II. Proposed Change
The proposed rule would change the date in each of Sec. Sec.
800.218 and 802.214 from February 13, 2022, to February 13, 2023. The
proposed rule therefore would have the effect of extending the delayed
effectiveness period for the second criterion in each of the Part 800
and Part 802 Rules without making any change to the two-criteria
conjunctive test in either the definition of excepted foreign state or
the definition of excepted real estate foreign state. The proposed rule
would make no change to any country's status as an excepted foreign
state or excepted real estate foreign state. Under the proposed rule,
the Committee may make a determination under Sec. 800.1001 or Sec.
802.1001 for an eligible foreign state, including Australia, Canada,
the United Kingdom of Great Britain and Northern Ireland and any other
state that the Committee identifies as eligible, at any time before the
revised February 13, 2023, date.
As stated in the preambles to the Part 800 Rule and the Part 802
Rule, the two-year period of delayed effectiveness for the second
criterion in the definitions of excepted foreign state and excepted
real estate foreign state was intended, in part, to provide the initial
eligible foreign states time to ensure that their national security-
based foreign investment review processes and bilateral cooperation
with the United States on national security-based investment reviews
meet the requirement under Sec. Sec. 800.1001 and 802.1001. Extending
the time period before which such requirements become applicable is
desirable given certain ongoing changes to foreign investment review
regimes.
III. Rulemaking Requirements
Executive Order 12866
These regulations are not subject to the general requirements of
Executive Order 12866, which covers review of regulations by the Office
of Information and Regulatory Affairs in the Office of Management and
Budget (OMB), because they relate to a foreign affairs function of the
United States, pursuant to section 3(d)(2) of that order. In addition,
these regulations are not subject to review under section 6(b) of
Executive Order 12866 pursuant to section 7(c) of the April 11, 2018,
Memorandum of Agreement between the Treasury Department and OMB, which
states that CFIUS regulations are not subject to OMB's standard
centralized review process under Executive Order 12866.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq., RFA)
generally requires an agency to prepare a
[[Page 62980]]
regulatory flexibility analysis unless the agency certifies that the
rule will not, once implemented, have a significant economic impact on
a substantial number of small entities. The proposed rule would extend
the delayed effectiveness period for the second criterion in each of
the Part 800 and Part 802 Rules without making any change to the two-
criteria conjunctive test in either the definition of excepted foreign
state or excepted real estate foreign state. The proposed rule
therefore would not change the circumstances of any investor. Both
before and after the proposed rule's effectiveness, any investor with
sufficiently close ties to an eligible foreign state may be excepted
from certain aspects of CFIUS's jurisdiction, including if engaging in
a transaction with a small business. Such exception would be expected
to lessen the burden on any such small business. The proposed rule
therefore would not impose any additional burden on potential filers,
including small businesses. Considering the foregoing, the Secretary of
the Treasury certifies, pursuant to 5 U.S.C. 605(b), that this proposed
rule will not have a significant economic impact on a substantial
number of small entities.
List of Subjects
31 CFR Part 800
Foreign investments in the United States, Investments.
31 CFR Part 802
Investments, Real estate transactions in the United States.
For the reasons set forth in the preamble, the Treasury Department
proposes to amend 31 CFR parts 800 and 802 as follows:
PART 800--REGULATIONS PERTAINING TO CERTAIN INVESTMENTS IN THE
UNITED STATES BY FOREIGN PERSONS
0
1. The authority citation for part 800 continues to read:
Authority: 50 U.S.C. 4565; E.O. 11858, as amended, 73 FR 4677.
Subpart B--Definitions
Sec. 800.218 [Amended]
0
2. Amend Sec. 800.218 introductory text by removing the year ``2022''
wherever it appears and adding in its place ``2023''.
PART 802--REGULATIONS PERTAINING TO CERTAIN TRANSACTIONS BY FOREIGN
PERSONS INVOLVING REAL ESTATE IN THE UNITED STATES
0
3. The authority citation for part 802 continues to read:
Authority: 50 U.S.C. 4565; E.O. 11858, as amended, 73 FR 4677.
Subpart B--Definitions
Sec. 802.214 [Amended]
0
4. Amend Sec. 802.214 introductory text by removing the year ``2022''
wherever it appears and adding in its place ``2023''.
Larry McDonald,
Acting Assistant Secretary for International Markets.
[FR Doc. 2021-24597 Filed 11-10-21; 4:15 pm]
BILLING CODE 4810-25-P
