[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2367 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 2367

  To provide a cause of action for United States port operators with 
respect to the potential change of ownership of a terminal operator to 
               a foreign entity, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 3, 2006

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

_______________________________________________________________________

                                 A BILL


 
  To provide a cause of action for United States port operators with 
respect to the potential change of ownership of a terminal operator to 
               a foreign entity, 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 ``Local Port Security Act of 2006''.

SEC. 2. FEDERAL CAUSE OF ACTION ESTABLISHED.

    The owner of a United States port may file an action seeking 
relief, including nullification of any contractual obligation with any 
terminal operator within the port, in any appropriate United States 
district court if a merger, acquisition, or takeover transaction would 
result in a change in the ownership of the terminal operator, and the 
new owner would be a foreign controlled entity. Such relief may be 
granted upon a showing by the owner of the port of a demonstrated 
increase in the security risk to the port or the port community as a 
result of such change in ownership.

SEC. 3. REVIEW BY SECRETARY OF HOMELAND SECURITY.

    The Secretary of Homeland Security shall review any proposed change 
in the ownership of a terminal operator within a United States port to 
a foreign controlled entity to determine the existence of any potential 
security concerns raised by such change, and shall transmit the 
findings of such review to the owner of the United States port and to 
the President, or the President's designee, for purposes of any 
investigation under section 721(b) of the Defense Production Act of 
1950 (50 U.S.C. App. 2170(b)).

SEC. 4. RULE OF CONSTRUCTION.

    Nothing in this Act may be construed to affect or otherwise alter 
the requirements of section 721 of the Defense Production Act of 1950 
(50 U.S.C. App. 2170), or any rule, regulation, or order issued 
thereunder.

SEC. 5. DEFINITIONS.

    As used in this Act--
            (1) the term ``United States port'' means all piers, 
        wharves, docks, and similar structures, adjacent to any waters 
        subject to the jurisdiction of the United States, to which a 
        vessel may be secured, including areas of land, water, or land 
        and water under and in immediate proximity to such structures, 
        buildings, on or contiguous to such structures, and the 
        equipment and materials on such structures or in such 
        buildings; and
            (2) the term ``marine terminal operator''--
                    (A) means the operator of the wharves, bulkheads, 
                quays, piers, docks, and other berthing locations, and 
                adjacent storage or adjacent areas and structures 
                associated with the primary movement of cargo or 
                materials from vessel to shore or shore to vessel, 
                including structures which are devoted to receiving, 
                handling, holding, consolidating, and loading or 
                delivery of waterborne shipments or passengers, 
                including areas devoted to the maintenance of the 
                terminal or equipment; and
                    (B) does not include the operator of any production 
                or manufacturing areas, or any storage facility 
                directly associated with any such production or 
                manufacturing area;
            (3) the term ``port community'' means the land adjacent to 
        and within 10 miles of a United States port on which persons 
        reside or work who could suffer injury or death in the event of 
        a terrorist attack on or at the port; and
            (4) the term ``foreign controlled entity'' means any entity 
        in which a foreign entity owns a majority interest, or 
        otherwise controls or manages the entity.
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