II 109th CONGRESS 2d Session S. 2367 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.

1.

Short title

This Act may be cited as the Local Port Security Act of 2006.

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.

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)).

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.

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.