[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2335 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 2335

To clarify the role of the Director of National Intelligence, amend the 
    Defense Production Act of 1950 to clarify the notification and 
          investigation requirements, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 28, 2006

   Mr. Bayh introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To clarify the role of the Director of National Intelligence, amend the 
    Defense Production Act of 1950 to clarify the notification and 
          investigation requirements, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Smart and Secure Foreign Investment 
Act''.

SEC. 2. DIRECTOR OF NATIONAL INTELLIGENCE.

    Section 102A(a) of the National Security Act of 1947 (50 U.S.C 403-
1(a)) is amended by adding at the end the following:
    ``(3) The Director of National Intelligence shall--
            ``(A) assist the President in conducting investigations 
        under section 721(b) of the Defense Production Act of 1950 (50 
        U.S.C. App. 2170(b);
            ``(B) serve as a member of the Committee on Foreign 
        Investment in the United States (or any successor committee); 
        and
            ``(C) certify to the President and the Committee that there 
        are no national security implications in connection with a 
        proposed merger, acquisition, or takeover described in section 
        721(b) of the Defense Production Act of 1950 before the 
        proposed merger, acquisition, or takeover is reviewed by the 
        Committee.''.

SEC. 3. DEFENSE PRODUCTION ACT.

    (a) In General.--Section 721 of the Defense Production Act of 1950 
(50 U.S.C. App. 2170) is amended--
            (1) by redesignating subsections (g) through (k) as 
        subsections (i) and (m), respectively; and
            (2) by inserting after subsection (f) the following:
    ``(g) Notification and Investigation.--
            ``(1) Notification.--
                    ``(A) In general.--Any entity described in 
                subparagraph (B) shall notify the President at least 60 
                days before a proposed merger, acquisition, or takeover 
                described in subparagraph (B)(ii).
                    ``(B) Entity described.--An entity described in 
                this subparagraph is an entity that--
                            ``(i) is controlled by, or acting on behalf 
                        of, a foreign government; and
                            ``(ii) seeks to engage in a merger, 
                        acquisition, or takeover of a United States 
                        entity or any other entity that has energy 
                        assets valued at $1,000,000,000 or more or that 
                        operates a critical infrastructure, if that 
                        merger, acquisition, or takeover could result 
                        in control of a person engaged in interstate 
                        commerce in the United States that could affect 
                        the national security of the United States.
            ``(2) Investigation.--A mandatory investigation under 
        subsection (b) shall be required in the case of a merger, 
        acquisition, or takeover described in paragraph (1)(B)(ii) by 
        an entity described in paragraph (1)(B).
    ``(h) President's Designee Defined.--In this section, the term 
`President's designee' means the Secretary of Commerce, the Secretary 
of Defense, the Secretary of Homeland Security, the Secretary of State, 
the Secretary of the Treasury, the Attorney General, the Director of 
National Intelligence, and appropriate employees of the Executive 
Office of the President.''.
    (b) Notification.--Section 721(i) of the Defense Production Act of 
1950 (50 U.S. C. App. 2170(i)), as redesignated by subsection (a)(1), 
is amended--
            (1) by striking ``The President'' and inserting the 
        following: ``(1) Report on action.--The President''; and
            (2) by adding at the end the following:
            ``(2) Report on notification.--The President shall 
        immediately transmit to the Secretary of the Senate and the 
        Clerk of the House of Representatives and to appropriate State 
        officials written notification as soon as the President 
        receives a notification under subsection (b) or (g).
            ``(3) Public hearings.--The President shall hold public 
        hearings on any proposed merger, acquisition, or takeover 
        described in subsection (b) or (g)(1).''.
    (c) Factors To Be Considered.--Section 721(f) of the Defense 
Production Act of 1950 (50 U.S.C. App. 2170(f)) is amended--
            (1) by striking ``and'' at end of paragraph (4);
            (2) by striking the period at the end of paragraph (5) and 
        inserting ``;''; and
            (3) by adding at the end the following:
            ``(6) the robust and expanding defense capabilities of the 
        country in which the acquiring entity is located; and
            ``(7) the nature of the bilateral relationship of the 
        United states with the country in which the acquiring entity is 
        located.''.
                                 <all>