PASS Act

Bill Summary: Promoting Agriculture Safeguards and Security Act (PASS Act)

Bill Number: S. 903 | Session: 119 | Jurisdiction: United States

Overview

The Promoting Agriculture Safeguards and Security Act (PASS Act) is designed to protect U.S. national security by restricting the acquisition of American agricultural land and agricultural businesses by "covered foreign persons." It expands the authority of the Committee on Foreign Investment in the United States (CFIUS) to review and prohibit transactions that could compromise national security, particularly those involving foreign adversaries.

Key Provisions

1. Expansion of CFIUS Authority

The bill amends the Defense Production Act of 1950 to formally incorporate "Agriculture" into the scope of CFIUS reviews. This allows the committee to scrutinize transactions involving:
* Agricultural land.
* Agricultural biotechnology.
* General businesses within the U.S. agriculture industry.

2. Mandatory Prohibitions

The Act mandates that the President must prohibit a transaction if CFIUS determines that a "covered foreign person" is attempting to:
* Purchase or lease agricultural land located in close proximity to U.S. military installations or other sensitive government facilities.
* Gain control of a United States business engaged in agriculture.

Note on Waivers: The President may waive this prohibition on a case-by-case basis if it is determined and reported to Congress that the waiver is in the national interest of the United States.

3. Defined Terms

• Covered Foreign Person: Individuals or entities acting as agents, representatives, or under the control of a government of a "covered country." This does not include U.S. citizens or lawful permanent residents.
• Covered Countries: Specifically identifies the People’s Republic of China, the Russian Federation, the Islamic Republic of Iran, and the Democratic People’s Republic of Korea.
• Reportable Agricultural Land Transaction: Transactions involving the acquisition of agricultural land by foreign persons (excluding certain "excepted investors") that are reported to the Secretary of Agriculture.

4. Inter-Agency Cooperation

The Secretary of Agriculture is added as a member/representative to the CFIUS process specifically for transactions related to agricultural land and biotechnology.

Affected Parties

• Foreign Investors: Specifically those from designated "covered countries" who seek to invest in U.S. farmland or ag-tech.
• U.S. Agricultural Businesses: Companies and landowners may be subject to stricter vetting processes for foreign sales or leases.
• Government Agencies: The Department of Agriculture and the CFIUS committee will take on increased oversight and reporting responsibilities.

Timeline and Implementation

• Spending Plans: Relevant agencies must submit their most recent spending plans to the CFIUS chairperson within 60 days of the Act's enactment.
• Regulations: The President must issue regulations to implement the Act within one year of enactment.
• Effective Date: The provisions take effect 30 days after the final regulations are issued. These rules will apply to transactions that are proposed, pending, or completed after that date.