[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2410 Introduced in Senate (IS)]
109th CONGRESS
2d Session
S. 2410
To amend the Homeland Security Act of 2002 to limit foreign control of
investments in certain United States critical infrastructure.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 14, 2006
Mr. Coleman (for himself, Mr. Levin, and Mr. Graham) 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.
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 ``Foreign Investment Transparency and
Security Act of 2006''.
SEC. 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:
``Subtitle E--Limits on Foreign Control of Investments in Certain
United States Critical Infrastructure
``SEC. 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.
``SEC. 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--
``(1) have a board of directors, the majority of which is
comprised of United States citizens;
``(2) have a chief security officer who is a United States
citizen, responsible for safety and security issues related to
the critical infrastructure; and
``(3) maintain all records related to operations,
personnel, and security of the United States general business
corporation in the United States.
``(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.
``SEC. 243. REGULATIONS REQUIRED.
``Not later than 6 months after the date of enactment of this
subtitle, the Secretary, in coordination with the Secretary of the
Treasury, shall promulgate final regulations to carry out this
subtitle.
``SEC. 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.''.
SEC. 3. MARITIME SECURITY.
(a) Findings.--Congress finds that--
(1) existing scanning processes for maritime containers are
insufficient;
(2) it should be the goal of the United States to scan 100
percent of inbound maritime containers; and
(3) the maritime container inspection system employed in
Hong Kong shows promise in enhancing the maritime security
capabilities of the United States.
(b) Amendments to Homeland Security Act.--
(1) In general.--Subtitle A of title IV of the Homeland
Security Act (6 U.S.C. 201 et seq.) is amended by adding at the
end the following:
``SEC. 404. REPORT ON SCANNING OF MARITIME CONTAINERS.
``(a) Report to Congress.--Not later than 90 days after the date of
enactment of this section, the Secretary shall submit a report to
Congress detailing the processes and policies for implementation of a
scanning system for 100 percent of the inbound maritime containers
described in subsection (a).
``(b) Definition of Container.--The term `container' has the
meaning given the term in the International Convention for Safe
Containers, with annexes, done at Geneva December 2, 1972 (29 UST
3707).''.
(2) 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
403 the following:
``Sec. 404. Report on scanning of maritime containers.''.
<all>