II 109th CONGRESS 2d Session S. 2374 IN THE SENATE OF THE UNITED STATES March 6, 2006 Mr. Coleman introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To amend the Homeland Security Act of 2002 to limit foreign control of investments in certain United States critical infrastructure.

1.

Short title

This Act may be cited as the Foreign Investment Transparency and Security Act of 2006.

2.

Limits on foreign control of investments in certain United States critical infrastructure

(a)

In general

Title II of the Homeland Security Act of 2002 (6 U.S.C. 201 et seq.) is amended by adding at the end the following: E

Limits on foreign control of investments in certain United States critical infrastructure

241.

Definitions

As used in this subtitle— (1)the term foreign government controlled entity means any entity in which a foreign government owns a majority interest, or otherwise controls or manages the entity; and (2)the term general business corporation means any entity that qualifies for treatment for Federal taxation purposes under subchapter C or subchapter S of the Internal Revenue Code of 1986, established or organized under the laws of any State.

242.

Limitation on foreign investments

(a)

In general

A foreign government controlled entity may acquire, own, or otherwise control or manage any critical infrastructure of the United States only through the establishment or operation of a foreign owned general business corporation that meets the requirements of subsection (b). (b)

Requirements

For purposes of this section, a general business corporation shall have— (1)a board of directors, the majority of which is comprised of United States citizens; and (2)a chief security officer who is a United States citizen, responsible for safety and security issues related to the critical infrastructure. (c)

Rule of construction

Nothing in this subtitle may be construed to restrict or otherwise alter the authority of the President or the Committee on Foreign Investment in the United States (or any successor thereto) as the designee of the President, under section 721 of the Defense Production Act of 1950.

243.

Regulations required

Not later than 6 months after the date of enactment of this subtitle, the Secretary of the Treasury, in coordination with the Secretary, shall promulgate final regulations to carry out this subtitle.

244.

Effective date

(a)

In general

Section 242 shall apply beginning on the date that is 6 months after the date of enactment of this subtitle. (b)

Existing entities

A foreign government controlled entity that owns or otherwise controls or manages any critical infrastructure of the United States on the effective date of this subtitle shall comply with the requirements of this subtitle not later than 180 days after that effective date.

. (b)

Conforming amendment

The table of contents under section 1(b) of the Homeland Security Act of 2002 (6 U.S.C. 101) is amended by inserting after the item relating to section 237 the following: Subtitle E—Limits on foreign control of investments in certain United States critical infrastructure Sec. 241. Definitions. Sec. 242. Limitation on foreign investments. Sec. 243. Regulations required. Sec. 244. Effective date. .