Provisions Pertaining to Certain Transactions by Foreign Persons Involving Real Estate in the United States
| Court | Investment Security Office |
| Citation | 88 FR 57348 |
| Published date | 23 August 2023 |
| Record Number | 2023-17678 |
| Section | Rules and Regulations |
Federal Register, Volume 88 Issue 162 (Wednesday, August 23, 2023)
[Federal Register Volume 88, Number 162 (Wednesday, August 23, 2023)]
[Rules and Regulations]
[Pages 57348-57352]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-17678]
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DEPARTMENT OF THE TREASURY
Office of Investment Security
31 CFR Part 802
[Docket ID TREAS-DO-2023-0006]
RIN 1505-AC82
Provisions Pertaining to Certain Transactions by Foreign Persons
Involving Real Estate in the United States
AGENCY: Office of Investment Security, Department of the Treasury.
ACTION: Final rule.
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SUMMARY: This final rule adopts without change the proposed rule
amending the definition of ``military installation'' and adding eight
military installations to the appendix in the regulations of the
Committee on Foreign Investment in the United States that implement the
provisions relating to real estate transactions pursuant to the Defense
Production Act of 1950, as amended. This rule also makes technical
amendments in the form of name changes to five military installations.
DATES: This final rule is effective September 22, 2023.
FOR FURTHER INFORMATION CONTACT: For questions about this rule,
contact: Meena R. Sharma, Acting Director, Office of Investment
Security Policy and International Relations, or James Harris, 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:
I. Background
A. Proposed Definition of Military Installation and Appendix A
On May 5, 2023, the U.S. Department of the Treasury (Treasury
Department) published in the Federal Register a proposed rule (88 FR
29003) amending the definition of ``military installation'' and adding
eight military installations to the list at appendix A of the
regulations in part 802 to title 31 of the Code of Federal Regulations
(part 802) that implement the provisions relating to real estate
transactions pursuant to section 721 of the Defense Production Act of
1950, as amended (section 721). Part 802 sets forth the processes and
procedures of the Committee on Foreign Investment in the United States
(CFIUS) for reviewing transactions involving the purchase or lease by,
or concession to, a foreign person of certain real estate in the United
States. Appendix A identifies, among other things, the bases, ranges,
and other installations
[[Page 57349]]
that meet the definition of ``military installation'' at Sec. 802.227.
The amendments were proposed as a result of the ongoing evaluation of
military installations by the U.S. Department of Defense (Defense
Department).
B. Additional Technical Amendments To Update the Names of Certain
Military Installations
This final rule also includes technical amendments to update the
names of five military installations at appendix A: Fort Cavazos
(formerly Fort Hood); Fort Gregg-Adams (formerly Fort Lee); Fort
Johnson (formerly Fort Polk); Fort Liberty (formerly Fort Bragg); and
Fort Moore (formerly Fort Benning). These are name changes to
installations already on the list at appendix A and reflect decisions
made by the Defense Department to implement the recommendations of the
Defense Department Naming Commission. The military installation name
changes in this final rule are those that have officially been changed
by the Defense Department as of the publication date of this rule in
the Federal Register. Additional bases may be renamed in the future,
and information on the full list of recommended name changes is
available at https://media.defense.gov/2022/Oct/06/2003092544/-1/-1/1/IMPLEMENTATION-OF-THE-NAMING-COMMISSIONS-RECOMMENDATIONS.PDF and
https://www.defense.gov/News/News-Stories/Article/Article/3260434/dod-begins-implementing-naming-commission-recommendations/.
C. Additional Guidance
The Treasury Department, in coordination with the Defense
Department and the U.S. Department of Commerce's Census Bureau (Census
Bureau), makes available a web-based tool to help the public understand
the geographic coverage of part 802. This web-based tool is available
at https://mtgis-portal.geo.census.gov/arcgis/apps/webappviewer/index.html?id=0bb1d5751d76498181b4b531987ce263 and allows users to
input an address and determine the distance to certain military
installations. The tool was developed to assist the public and is
provided for reference only; it should not be interpreted as guidance
or an advisory opinion by CFIUS with respect to any particular
transaction.
II. Summary of Comments
The public was provided an opportunity to comment on the proposed
rule, and comments were due by June 5, 2023. During the public comment
period, the Treasury Department received five comments reflecting a
range of views. All comments received are available on the public
rulemaking docket at https://www.regulations.gov and are addressed
herein.
The Treasury Department considered each comment submitted on the
proposed rule. One commenter expressed the view that these provisions
should be expanded to U.S. developers and realtors to address the
overdevelopment of U.S. land located in natural disaster zones. The
rule makes no change in response to this comment as it is outside the
scope of section 721.
One commenter expressed the view that the regulations should
further address risks posed by incompatible development around military
installations such as from the construction of obstructions, visual and
other interference from certain land uses, and light emissions, among
other things. The commenter further expressed a view with respect to
adding air installations to appendix A and related operational security
risks. The rule makes no change in response to these comments. The
Treasury Department and the Defense Department consult on the
composition of appendix A and part 802 more broadly, taking into
account the statutory requirements under section 721 and a variety of
considerations.
One commenter requested guidance regarding whether legal name
changes, inherited property, and gifts to relatives would be within the
definition of a covered real estate transaction under part 802. The
rule makes no change in response to this comment. Consistent with
section 721 and as defined in Sec. 802.212(a), a covered real estate
transaction includes any purchase or lease by, or concession to, a
foreign person of covered real estate that affords the foreign person
at least three property rights under Sec. 802.233. Real estate
acquired by gift or inheritance is distinct from a purchase, lease, or
concession as those terms are defined in part 802. By contrast, a
person or entity that amends a property record or document to reflect a
legal name change may or may not have engaged in a purchase, lease, or
concession as those terms are defined in part 802--further analysis of
the underlying reason for the name change would be required. For
example, a corporate name change may follow an acquisition transaction,
which, depending on the rights conveyed in that transaction, could be a
covered real estate transaction (or be subject to CFIUS's jurisdiction
relating to foreign investment in U.S. businesses which is detailed in
31 CFR part 800). As a general reminder, the Treasury Department notes
that pursuant to Sec. 802.212, the definition of a ``covered real
estate transaction'' includes any transaction, transfer, agreement, or
arrangement, the structure of which is designed or intended to evade or
circumvent the application of section 721 as it relates to real estate
transactions.
One commenter suggested adding Whiteman Air Force Base in Missouri
to the list of military installations at appendix A. The rule makes no
change in response to this comment. As noted in the proposed rule, the
Defense Department will continue on an ongoing basis to assess its
military installations and the geographic scope set under the rule to
ensure appropriate application in light of national security
considerations.
One commenter suggested an amendment to Sec. 802.216(c) to exclude
from the definition of ``excepted real estate transaction'' any
purchase, lease, or concession of covered real estate by a person owned
by, controlled by, or subject to the jurisdiction or direction of a
foreign adversary. The rule makes no change in response to this
comment. The Treasury Department and the Defense Department consult on
the definition of ``excepted real estate transaction'' taking into
account the statutory requirements under section 721 and a variety of
considerations.
No additional comments were received. The final rule therefore
adopts the proposed rule without change other than the technical
amendments described above.
III. Rulemaking Requirements
Executive Order 12866
This rule is not subject to the general requirements of Executive
Order 12866, as amended, which covers review of regulations by the
Office of Information and Regulatory Affairs in the Office of
Management and Budget (OMB), because it relates to a foreign affairs
function of the United States, pursuant to section 3(d)(2) of that
order. In addition, this rule is not subject to review under section
6(b) of Executive Order 12866 pursuant to section 1(d) of the June 9,
2023, 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 (RFA) (5 U.S.C. 601 et seq.)
generally requires an agency to prepare a regulatory flexibility
analysis, unless the agency
[[Page 57350]]
certifies that the rule, once implemented, will not have a significant
economic impact on a substantial number of small entities. The final
rule makes amendments to part 802 (see 85 FR 3158), which the Treasury
Department previously determined would not significantly impact a
substantial number of small entities. The amendments in this rule do
not change that analysis or determination.
Congressional Review Act
This rule has been submitted to the OMB's Office of Information and
Regulatory Affairs, which has determined that the rule is not a
``major'' rule under the Congressional Review Act.
List of Subjects in 31 CFR Part 802
Foreign investments in the United States, Federal buildings and
facilities, Government property, Investigations, Investments,
Investment companies, Land sales, National defense, Public lands, Real
property acquisition, Reporting and recordkeeping requirements.
For the reasons set forth in the preamble, the Treasury Department
amends 31 CFR part 802 as follows:
PART 802--REGULATIONS PERTAINING TO CERTAIN TRANSACTIONS BY FOREIGN
PERSONS INVOLVING REAL ESTATE IN THE UNITED STATES
0
1. The authority citation for part 802 continues to read as follows:
Authority: 50 U.S.C. 4565; E.O. 11858, as amended, 73 FR 4677.
Subpart B--Definitions
Sec. 802.227 [Amended]
0
2. Amend Sec. 802.227, in paragraph (m), by removing the words
``Oregon, Nevada, Idaho, Wisconsin, Mississippi, North Carolina, or
Florida'' and adding in their place ``Arizona, California, Florida,
Idaho, Iowa, Mississippi, Nevada, North Carolina, North Dakota, Oregon,
South Dakota, Texas, or Wisconsin''.
0
3. Revise parts 1 and 2 of appendix A to part 802 to read as follows:
Appendix A to Part 802--List of Military Installations and Other U.S.
Government Sites
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Site name Location
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Part 1
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Adelphi Laboratory Center.................... Adelphi, MD.
Air Force Maui Optical and Supercomputing Maui, HI.
Site.
Air Force Office of Scientific Research...... Arlington, VA.
Andersen Air Force Base...................... Yigo, Guam.
Army Futures Command......................... Austin, TX.
Army Research Lab--Orlando Simulations and Orlando, FL.
Training Technology Center.
Army Research Lab--Raleigh Durham............ Raleigh Durham, NC.
Arnold Air Force Base........................ Coffee County and
Franklin County, TN.
Beale Air Force Base......................... Yuba City, CA.
Biometric Technology Center (Biometrics Clarksburg, WV.
Identity Management Activity).
Buckley Air Force Base....................... Aurora, CO.
Camp MacKall................................. Pinebluff, NC.
Cape Cod Air Force Station................... Sandwich, MA.
Cape Newenham Long Range Radar Site.......... Cape Newenham, AK.
Cavalier Air Force Station................... Cavalier, ND.
Cheyenne Mountain Air Force Station.......... Colorado Springs, CO.
Clear Air Force Station...................... Anderson, AK.
Creech Air Force Base........................ Indian Springs, NV.
Davis-Monthan Air Force Base................. Tucson, AZ.
Defense Advanced Research Projects Agency.... Arlington, VA.
Eareckson Air Force Station.................. Shemya, AK.
Eielson Air Force Base....................... Fairbanks, AK.
Ellington Field Joint Reserve Base........... Houston, TX.
Fairchild Air Force Base..................... Spokane, WA.
Fort Belvoir................................. Fairfax County, VA.
Fort Bliss................................... El Paso, TX.
Fort Campbell................................ Hopkinsville, KY.
Fort Carson.................................. Colorado Springs, CO.
Fort Cavazos................................. Killeen, TX.
Fort Detrick................................. Frederick, MD.
Fort Drum.................................... Watertown, NY.
Fort Gordon.................................. Augusta, GA.
Fort Gregg-Adams............................. Petersburg, VA.
Fort Knox.................................... Fort Knox, KY.
Fort Leavenworth............................. Leavenworth, KS.
Fort Leonard Wood............................ Pulaski County, MO.
Fort Meade................................... Anne Arundel County, MD.
Fort Moore................................... Columbus, GA.
Fort Riley................................... Junction City, KS.
Fort Shafter................................. Honolulu, HI.
Fort Sill.................................... Lawton, OK.
Fort Stewart................................. Hinesville, GA.
Fort Yukon Long Range Radar Site............. Fort Yukon, AK.
Francis E. Warren Air Force Base............. Cheyenne, WY.
Guam Tracking Station........................ Inarajan, Guam.
Hanscom Air Force Base....................... Lexington, MA.
Holloman Air Force Base...................... Alamogordo, NM.
Holston Army Ammunition Plant................ Kingsport, TN.
[[Page 57351]]
Joint Base Anacostia-Bolling................. Washington, DC.
Joint Base Andrews........................... Camp Springs, MD.
Joint Base Elmendorf-Richardson.............. Anchorage, AK.
Joint Base Langley-Eustis.................... Hampton, VA and Newport
News, VA.
Joint Base Lewis-McChord..................... Tacoma, WA.
Joint Base McGuire-Dix-Lakehurst............. Lakehurst, NJ.
Joint Base Pearl Harbor-Hickam............... Honolulu, HI.
Joint Base San Antonio....................... San Antonio, TX.
Joint Expeditionary Base Little Creek-Fort Virginia Beach, VA.
Story.
Kaena Point Satellite Tracking Station....... Waianae, HI.
King Salmon Air Force Station................ King Salmon, AK.
Kirtland Air Force Base...................... Albuquerque, NM.
Kodiak Tracking Station...................... Kodiak Island, AK.
Los Angeles Air Force Base................... El Segundo, CA.
MacDill Air Force Base....................... Tampa, FL.
Malmstrom Air Force Base..................... Great Falls, MT.
Marine Corps Air Ground Combat Center Twentynine Palms, CA.
Twentynine Palms.
Marine Corps Air Station Beaufort............ Beaufort, SC.
Marine Corps Air Station Cherry Point........ Cherry Point, NC.
Marine Corps Air Station Miramar............. San Diego, CA.
Marine Corps Air Station New River........... Jacksonville, NC.
Marine Corps Air Station Yuma................ Yuma, AZ.
Marine Corps Base Camp Lejeune............... Jacksonville, NC.
Marine Corps Base Camp Pendleton............. Oceanside, CA.
Marine Corps Base Hawaii..................... Kaneohe Bay, HI.
Marine Corps Base Hawaii, Camp H.M. Smith.... Halawa, HI.
Marine Corps Base Quantico................... Quantico, VA.
Mark Center.................................. Alexandria, VA.
Minot Air Force Base......................... Minot, ND.
Moody Air Force Base......................... Valdosta, GA.
Naval Air Station Joint Reserve Base New Belle Chasse, LA.
Orleans.
Naval Air Station Oceana..................... Virginia Beach, VA.
Naval Air Station Oceana Dam Neck Annex...... Virginia Beach, VA.
Naval Air Station Whidbey Island............. Oak Harbor, WA.
Naval Base Guam.............................. Apra Harbor, Guam.
Naval Base Kitsap Bangor..................... Silverdale, WA.
Naval Base Point Loma........................ San Diego, CA.
Naval Base San Diego......................... San Diego, CA.
Naval Base Ventura County--Port Hueneme Port Hueneme, CA.
Operating Facility.
Naval Research Laboratory.................... Washington, DC.
Naval Research Laboratory--Blossom Point..... Welcome, MD.
Naval Research Laboratory--Stennis Space Hancock County, MS.
Center.
Naval Research Laboratory--Tilghman.......... Tilghman, MD.
Naval Station Newport........................ Newport, RI.
Naval Station Norfolk........................ Norfolk, VA.
Naval Submarine Base Kings Bay............... Kings Bay, GA.
Naval Submarine Base New London.............. Groton, CT.
Naval Surface Warfare Center Carderock Bayview, ID.
Division--Acoustic Research Detachment.
Naval Support Activity Crane................. Crane, IN.
Naval Support Activity Orlando............... Orlando, FL.
Naval Support Activity Panama City........... Panama City, FL.
Naval Support Activity Philadelphia.......... Philadelphia, PA.
Naval Support Facility Carderock............. Bethesda, MD.
Naval Support Facility Dahlgren.............. Dahlgren, VA.
Naval Support Facility Indian Head........... Indian Head, MD.
Naval Weapons Station Seal Beach Detachment Norco, CA.
Norco.
New Boston Air Station....................... New Boston, NH.
Offutt Air Force Base........................ Bellevue, NE.
Oliktok Long Range Radar Site................ Oliktok, AK.
Orchard Combat Training Center............... Boise, ID.
Peason Ridge Training Area................... Leesville, LA.
Pentagon..................................... Arlington, VA.
Peterson Air Force Base...................... Colorado Springs, CO.
Picatinny Arsenal............................ Morris County, NJ.
Pi[ntilde]on Canyon Maneuver Site............ Tyrone, CO.
Pohakuloa Training Area...................... Hilo, HI.
Point Barrow Long Range Radar Site........... Point Barrow, AK.
Portsmouth Naval Shipyard.................... Kittery, ME.
Radford Army Ammunition Plant................ Radford, VA.
Redstone Arsenal............................. Huntsville, AL.
Rock Island Arsenal.......................... Rock Island, IL.
Rome Research Laboratory..................... Rome, NY.
Schriever Air Force Base..................... Colorado Springs, CO.
Seymour Johnson Air Force Base............... Goldsboro, NC.
[[Page 57352]]
Shaw Air Force Base.......................... Sumter, SC.
Southeast Alaska Acoustic Measurement Ketchikan, AK.
Facility.
Tin City Long Range Radar Site............... Tin City, AK.
Tinker Air Force Base........................ Midwest City, OK.
Travis Air Force Base........................ Fairfield, CA.
Tyndall Air Force Base....................... Bay County, FL.
U.S. Army Natick Soldier Systems Center...... Natick, MA.
Watervliet Arsenal........................... Watervliet, NY.
Wright-Patterson Air Force Base.............. Dayton, OH.
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Part 2
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Aberdeen Proving Ground...................... Aberdeen, MD.
Air Force Plant 42........................... Palmdale, CA.
Camp Shelby.................................. Hattiesburg, MS.
Cape Canaveral Air Force Station............. Cape Canaveral, FL.
Dare County Range............................ Manns Harbor, NC.
Dyess Air Force Base......................... Abilene, TX.
Edwards Air Force Base....................... Edwards, CA.
Eglin Air Force Base......................... Valparaiso, FL.
Ellsworth Air Force Base..................... Box Elder, SD.
Fallon Range Complex......................... Fallon, NV.
Fort Greely.................................. Delta Junction, AK.
Fort Huachuca................................ Sierra Vista, AZ.
Fort Irwin................................... San Bernardino County,
CA.
Fort Johnson................................. Leesville, LA.
Fort Liberty................................. Fayetteville, NC.
Fort Wainwright.............................. Fairbanks, AK.
Grand Forks Air Force Base................... Grand Forks, ND.
Hardwood Range............................... Necehuenemedah, WI.
Hill Air Force Base.......................... Ogden, UT.
Iowa National Guard Joint Force Headquarters. Des Moines, IA.
Lackland Air Force Base...................... San Antonio, TX.
Laughlin Air Force Base...................... Del Rio, TX.
Luke Air Force Base.......................... Glendale, AZ.
Mountain Home Air Force Base................. Mountain Home, ID.
Naval Air Station Meridian................... Meridian, MS.
Naval Air Station Patuxent River............. Lexington Park, MD.
Naval Air Weapons Station China Lake......... Ridgecrest, CA.
Naval Base Kitsap--Keyport................... Keyport, WA.
Naval Base Ventura County--Point Mugu Point Mugu, CA.
Operating Facility.
Naval Weapons Systems Training Facility Boardman, OR.
Boardman.
Nellis Air Force Base........................ Las Vegas, NV.
Nevada Test and Training Range............... Tonopah, NV.
Pacific Missile Range Facility............... Kekaha, HI.
Patrick Air Force Base....................... Cocoa Beach, FL.
Tropic Regions Test Center................... Wahiawa, HI.
Utah Test and Training Range................. Barro, UT.
Vandenberg Air Force Base.................... Lompoc, CA.
West Desert Test Center...................... Dugway, UT.
White Sands Missile Range.................... White Sands Missile
Range, NM.
Yuma Proving Ground.......................... Yuma, AZ.
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* * * * *
Paul M. Rosen,
Assistant Secretary for Investment Security.
[FR Doc. 2023-17678 Filed 8-22-23; 8:45 am]
BILLING CODE 4810-AK-P
