[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2442 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 2442

To require the President or the Committee on Foreign Investment in the 
  United States to submit to Congress draft investigation reports on 
    national security related investigations, to address mandatory 
       investigations by such committee, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               March 16 (legislative day, March 15), 2006

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

_______________________________________________________________________

                                 A BILL


 
To require the President or the Committee on Foreign Investment in the 
  United States to submit to Congress draft investigation reports on 
    national security related investigations, to address mandatory 
       investigations by such committee, 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 ``Safe Foreign Investments Act of 
2006''.

SEC. 2. NOTICE TO CONGRESS AND CERTIFICATION OF RECOMMENDATIONS.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended by adding at the end the following:
    ``(l) Notice to Congress.--Not later than 7 days before the date of 
completion of any investigation under this section, and before any 
final determination becomes effective, the President or the President's 
designee shall submit to the Committee on Homeland Security and 
Governmental Affairs of the Senate and the Committee on Homeland 
Security of the House of Representatives a draft report of its 
findings.
    ``(m) Certifications.--In any case in which the President's 
designee makes an investigation under this section, each member of 
CFIUS shall certify in writing that member's recommendations or submit 
a certified dissent, as appropriate, to the President and to Congress 
at the conclusion of such investigation.''.

SEC. 3. MANDATORY INVESTIGATIONS.

    Section 721(b) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2170(b)) is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively and indenting 
        appropriately;
            (2) by striking ``The President or'' and inserting the 
        following:
            ``(1) Investigations involving foreign governments.--The 
        President or''; and
            (3) by striking ``in the United States that could affect 
        the national security of the United States. Such 
        investigation'' and inserting the following: ``in the United 
        States.
            ``(2) Investigations involving other foreign persons.--An 
        investigation described in paragraph (1) shall be required with 
        respect to an entity controlled by or acting on behalf of a 
        foreign person other than a foreign government only in any case 
        in which the subject merger, acquisition, or takeover of the 
        person engaged in interstate commerce in the United States 
        involves critical infrastructure, and could affect the national 
        security of the United States.
            ``(3) Timing.--Investigations under this subsection''.

SEC. 4. PRESIDENTIAL FINDINGS.

    Section 721(e)(1) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2170(e)(1)) is amended by striking ``, and'' and inserting the 
following: ``, or might fail to take action necessary to prevent 
impairment of the national security; and''.

SEC. 5. DESIGNATION OF CFIUS.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended by adding at the end the following:
    ``(n) President's Designee.--For purposes of this section, the 
President's designee shall be the Committee on Foreign Investment in 
the United States (or `CFIUS'), established by order of the President 
in Executive Order 11858, May 7, 1975, or any successor thereto. 
Notwithstanding any other rule, regulation, or order, for purposes of 
any investigation under this section, CFIUS shall be chaired by the 
Secretary of Homeland Security.''.

SEC. 6. TECHNICAL CORRECTIONS.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended--
            (1) in subsection (d), by striking ``subsection (d)'' and 
        inserting ``subsection (e)''; and
            (2) in subsection (e), by striking ``subsection (c)'' and 
        inserting ``subsection (d)''.
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