II 109th CONGRESS 2d Session S. 2442 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.

1.

Short title

This Act may be cited as the Safe Foreign Investments Act of 2006.

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. .

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 .

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.

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. .

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).