[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3549 Reported in Senate (RS)]







                                                       Calendar No. 474
109th CONGRESS
  2d Session
                                S. 3549

                          [Report No. 109-264]

 To amend the Defense Production Act of 1950, to strengthen Government 
  review and oversight of foreign investment in the United States, to 
provide for enhanced Congressional oversight with respect thereto, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 21, 2006

Mr. Shelby, from the Committee on Banking, Housing, and Urban Affairs, 
 reported the following original bill; which was read twice and placed 
                            on the calendar

_______________________________________________________________________

                                 A BILL


 
 To amend the Defense Production Act of 1950, to strengthen Government 
  review and oversight of foreign investment in the United States, to 
provide for enhanced Congressional oversight with respect thereto, 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 ``Foreign Investment and National 
Security Act of 2006''.

SEC. 2. AMENDMENTS TO THE DEFENSE PRODUCTION ACT OF 1950.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended to read as follows:

``SEC. 721. REVIEW AND INVESTIGATION OF TRANSACTIONS INVOLVING FOREIGN 
              PERSONS AND GOVERNMENTS.

    ``(a) Review of Transactions Involving Foreign Persons and 
Governments.--
            ``(1)  Reviews required.--
                    ``(A) In general.--CFIUS shall review any 
                transaction proposed or pending on or after the date of 
                enactment of this section by, with, or on behalf of a 
                foreign person or foreign government which could result 
                in foreign control of a person engaged in interstate 
                commerce in the United States, for which a review is 
                requested, in the manner prescribed by regulations 
                promulgated under this section.
                    ``(B) Purposes.--The purpose of such review shall 
                be to determine the effect on national security of such 
                transaction, whether an investigation of such 
                transaction is required under subsection (b), or both.
            ``(2) Timing of reviews.--
                    ``(A) In general.--A review of a proposed or 
                pending transaction described in paragraph (1) shall be 
                completed not later than 30 days after the date of 
                receipt by CFIUS of written notification of the 
                proposed or pending transaction, as prescribed by 
                regulations promulgated under this section.
                    ``(B) Extensions upon request.--Upon written 
                request by the Secretary, Deputy Secretary, or Under 
                Secretary, or the equivalent thereof, of one or more of 
                the agencies that make up CFIUS (including any agency 
                described in subsection (c)(4)(I)) for additional time 
                to review a case, the 30-day period described in 
                subparagraph (A) shall be extended by not longer than 
                an additional 30 days, if the Secretary, Deputy 
                Secretary, or Under Secretary, or the equivalent 
                thereof, concludes that there is credible evidence to 
                believe that if permitted to proceed with the 
                transaction, the foreign acquiring entity may take 
                action that threatens to impair the national security.
    ``(b) Investigations of Certain Transactions.--
            ``(1) In general.--CFIUS shall undertake an investigation 
        to determine the effects on national security of any 
        transaction described in subsection (a)(1) proposed or pending 
        on or after the date of enactment of this section--
                    ``(A) which would--
                            ``(i) result in control of any person 
                        engaged in interstate commerce in the United 
                        States by a foreign government, or a person 
                        acting by, with, or on behalf of a foreign 
                        government; or
                            ``(ii) result in control of any critical 
                        infrastructure of or within the United States 
                        by, with, or on behalf of any foreign person, 
                        if CFIUS determines that any possible 
                        impairment to national security has not been 
                        mitigated by additional assurances, as 
                        described in subsection (i), during the review 
                        period under subsection (a); and
                    ``(B) if the review by CFIUS under subsection (a) 
                produces sufficient information to indicate the 
                possibility of an impairment to national security, 
                after consideration of the factors listed in subsection 
                (g).
            ``(2) Timing of investigations.--An investigation required 
        to be undertaken under this subsection--
                    ``(A) shall commence at such time as CFIUS 
                determines under subsection (a) that such investigation 
                is required, as prescribed by regulations promulgated 
                pursuant to this section; and
                    ``(B) shall be completed not later than 45 days 
                after the date of its commencement.
            ``(3) Resubmitted filings.--An investigation of a 
        transaction under this subsection which is interrupted because 
        the notification or filing is withdrawn by the applicant, and 
        which is subsequently resubmitted, shall require up to a 45-day 
        investigation from the date on which CFIUS receives the new 
        submission. The investigation shall include a review of the 
        rationale for the withdrawal and resubmission of the proposed 
        transaction to CFIUS.
            ``(4) Completion of investigations required.--An 
        investigation of a transaction under this subsection shall be 
        completed, even if the notification or filing of the pending 
        transaction is withdrawn or rescinded, and CFIUS shall continue 
        to monitor such withdrawn or rescinded transaction, except that 
        no completed investigation or continued monitoring shall be 
        required for any pending transaction that is terminated by 
        agreement of the parties to the transaction.
            ``(5) Mandatory notification related to certain 
        transactions affecting national security.--
                    ``(A) Chairperson and vice chairperson.--The 
                chairperson and vice chairperson of CFIUS shall jointly 
                agree to issue rules that require each person 
                controlled by or acting on behalf of a foreign 
                government to notify the chairperson of CFIUS in 
                writing of any proposed transaction involving such 
                person of United States critical infrastructure 
                relating to United States national security.
                    ``(B) Regulations.--The Secretary of the Treasury 
                shall promulgate regulations for the implementation of 
                this paragraph, including the imposition of appropriate 
                penalties for failure to comply with this paragraph.
    ``(c) Committee on Foreign Investment in the United States.--
            ``(1) Establishment.--There is established the Committee on 
        Foreign Investment in the United States, which shall serve as 
        the President's designee for all purposes under this section.
            ``(2) Chairperson.--The Secretary of the Treasury shall 
        serve as the chairperson of CFIUS.
            ``(3) Vice chairperson.--The Secretary of Defense shall 
        serve as the vice chairperson of CFIUS.
            ``(4) Membership.--The members of CFIUS shall include--
                    ``(A) the Secretary of the Treasury;
                    ``(B) the Secretary of State;
                    ``(C) the Secretary of Defense;
                    ``(D) the Secretary of Commerce;
                    ``(E) the Secretary of Homeland Security;
                    ``(F) the Attorney General of the United States;
                    ``(G) the Director of the Office of Management and 
                Budget;
                    ``(H) the Director of National Intelligence; and
                    ``(I) the heads of those other executive 
                departments or agencies as the President determines 
                appropriate, on a case-by-case basis.
            ``(5) Referral to appropriate members of cfius.--Upon 
        receipt of notification of a proposed or pending transaction 
        under this section, the chairperson of CFIUS shall assign the 
        appropriate member of CFIUS to lead the review and 
        investigation of such proposed or pending transaction under 
        this section.
            ``(6) Intelligence reviews.--The Director of National 
        Intelligence shall--
                    ``(A) direct the intelligence community, to collect 
                and analyze information related to any proposed or 
                pending transaction pursuant to this section, and to 
                prepare a report of its findings, which the Director 
                shall make available to members of CFIUS not later than 
                15 days after the date of the commencement by CFIUS of 
                a 30-day (or longer) review of any such transaction 
                under subsection (a), and before the commencement of 
                any investigation under subsection (b); and
                    ``(B) ensure that the intelligence community 
                remains engaged in the collection, analysis, and 
                dissemination to CFIUS of any additional relevant 
                information that may become available during the course 
                of any investigation conducted under subsection (b) 
                with respect to a transaction.
            ``(7) Assessments and classifications of foreign countries 
        for use in reviews and investigations.--
                    ``(A) In general.--Not later than 120 days after 
                the date of enactment of the Foreign Investment and 
                National Security Act of 2006, the chairperson and vice 
                chairperson of CFIUS, in consultation with the 
                Secretary of State, the Secretary of Commerce, the 
                Secretary of Energy, the Chairman of the Nuclear 
                Regulatory Commission, and the Director of National 
                Intelligence, shall develop and implement a system for 
                assessing and classifying individual countries, 
                including--
                            ``(i) an assessment of the adherence of the 
                        country to nonproliferation control regimes, 
                        including treaties and multilateral supply 
                        guidelines, which shall draw on, but not be 
                        limited to, the annual report on Adherence to 
                        and Compliance with Arms Control, 
                        Nonproliferation and Disarmament Agreements and 
                        Commitments required by section 403 of the Arms 
                        Control and Disarmament Act;
                            ``(ii) an assessment of the relationship of 
                        such country with the United States, 
                        specifically on its record on cooperating in 
                        counter-terrorism efforts, which shall draw on, 
                        but not be limited to, the report of the 
                        President to Congress under section 7120 of the 
                        Intelligence Reform and Terrorism Prevention 
                        Act of 2004; and
                            ``(iii) an assessment of the potential for 
                        transshipment or diversion of technologies with 
                        military applications, including an analysis of 
                        national export control laws and regulations.
                    ``(B) Confidentiality.--The assessment and 
                classification system required by subparagraph (A) and 
                any information or documentary material maintained or 
                developed thereunder--
                            ``(i) shall be used solely by those 
                        agencies involved in reviewing and 
                        investigating acquisitions, mergers, and 
                        takeovers pursuant to this section;
                            ``(ii) may not be made available to the 
                        public; and
                            ``(iii) shall be exempt from disclosure 
                        under section 552 of title 5, United States 
                        Code.
            ``(8) Staff of cfius.--Employees of the Department of the 
        Treasury who serve as staff for CFIUS shall report directly to 
        the Deputy Secretary of the Treasury, and shall perform no 
        official functions other than as CFIUS staff.
    ``(d) Action by the President.--
            ``(1) In general.--Subject to subsection (e), the President 
        may take such action for such time as the President considers 
        appropriate to suspend or prohibit any transaction which would 
        result in control of any critical infrastructure or person 
        engaged in interstate commerce in the United States, proposed 
        or pending on or after the date of enactment of this section, 
        by or with a foreign person or government, so that such control 
        will not threaten to impair the national security.
            ``(2) Announcement by the president.--The President shall 
        announce the decision on whether or not to take action pursuant 
        to this subsection not later than 15 days after an 
        investigation described in subsection (b) is completed.
            ``(3) Enforcement.--The President may direct the Attorney 
        General to seek appropriate relief, including divestment 
        relief, in the district courts of the United States in order to 
        implement and enforce this subsection.
    ``(e) Findings of the President.--The President may exercise the 
authority conferred by subsection (d) only if the President finds 
that--
            ``(1) there is credible evidence that leads the President 
        to believe that the foreign interest exercising control might 
        take action that threatens to impair the national security; and
            ``(2) provisions of law, other than this section and the 
        International Emergency Economic Powers Act, do not, in the 
        judgment of the President, provide adequate and appropriate 
        authority for the President to protect the national security in 
        the matter before the President.
    ``(f) Actions and Findings Nonreviewable.--The actions of the 
President under subsection (d) and the findings of the President under 
subsection (e) shall not be subject to judicial review.
    ``(g) Factors To Be Considered.--For purposes of determining 
whether to take action under subsection (d) and for purposes of reviews 
and investigations under this section, the President and CFIUS, 
respectively, shall consider, among other factors--
            ``(1) potential effects on United States critical 
        infrastructure, including major energy assets;
            ``(2) potential effects on United States critical 
        technologies;
            ``(3) domestic production needed for projected national 
        defense requirements;
            ``(4) the capability and capacity of domestic industries to 
        meet national defense requirements, including the availability 
        of human resources, products, technology, materials, and other 
        supplies and services;
            ``(5) the control of domestic industries and commercial 
        activity by foreign citizens as it affects the capability and 
        capacity of the United States to meet the requirements of 
        national security;
            ``(6) the potential effects of the proposed or pending 
        transaction on sales of military goods, equipment, or 
        technology to any country--
                    ``(A) identified by the Secretary of State--
                            ``(i) under section 6(j) of the Export 
                        Administration Act of 1979, as a country that 
                        supports terrorism;
                            ``(ii) under section 6(l) of the Export 
                        Administration Act of 1979, as a country of 
                        concern regarding missile proliferation; or
                            ``(iii) under section 6(m) of the Export 
                        Administration Act of 1979, as a country of 
                        concern regarding the proliferation of chemical 
                        and biological weapons;
                    ``(B) identified by the Secretary of Defense as 
                posing a potential regional military threat to the 
                interests of the United States; or
                    ``(C) listed under section 309(c) of the Nuclear 
                Non-Proliferation Act of 1978, on the `Nuclear Non-
                Proliferation-Special Country List' (15 C.F.R. Part 
                778, Supplement No. 4) or any successor list;
            ``(7) the potential effects of the proposed or pending 
        transaction on United States international technological 
        leadership in areas affecting United States national security;
            ``(8) the long term projection of United States 
        requirements for sources of energy and other critical resources 
        and materials; and
            ``(9) the ranking developed under subsection (c)(7) of the 
        country in which the foreign persons acquiring United States 
        entities are based.
    ``(h) Confidentiality of Information.--
            ``(1) In general.--Any information or documentary material 
        filed with CFIUS pursuant to this section shall be exempt from 
        disclosure under section 552 of title 5, United States Code, 
        and no such information or documentary material may be made 
        public, except as may be relevant to any administrative or 
        judicial action or proceeding.
            ``(2) Notification to governor.--Notwithstanding paragraph 
        (1), CFIUS shall notify the Governor of any State regarding a 
        transaction involving critical infrastructure in that State for 
        the purpose of discussing any security concerns that arise or 
        may arise from that transaction. Information or documentary 
        material made available to a Governor under this paragraph may 
        not be made public, including under any law of a State 
        pertaining to freedom of information or otherwise, but the 
        exception in paragraph (3) for disclosures to either House of 
        Congress or Congressional Committees shall not apply to 
        Governors who receive information under this paragraph.
            ``(3) Disclosure.--Nothing in this subsection shall be 
        construed to prevent disclosure to either House of Congress or 
        to any duly authorized committee or subcommittee of Congress.
    ``(i) Additional Assurances.--
            ``(1) In general.--This subsection shall govern the 
        provision of any assurances to one or more agencies of the 
        United States in connection with the review or investigation 
        of, or any Presidential decision concerning, any transaction 
        under this section.
            ``(2) Condition to determination.--Any such assurances 
        shall be deemed to be a continuing covenant of the persons on 
        whose behalf such review is sought (and of all persons 
        controlling such person), the observance of which shall be a 
        condition of the determination of CFIUS, the President, or 
        both, on whether to take any action with respect to such 
        transaction.
            ``(3) Contract with the united states.--Such assurances 
        shall be embodied in an agreement executed by the foreign 
        person or foreign government on whose behalf a review of a 
        transaction is sought under this section and the chairperson or 
        vice chairperson of CFIUS, on behalf of the United States.
            ``(4) Monitoring of agreement.--Compliance with assurances 
        provided under this subsection shall be monitored, and may be 
        investigated, in the same manner as a violation of a civil 
        statute, by the agency designated by the chairperson of CFIUS, 
        in consultation with the vice chairperson and the Attorney 
        General of the United States.
            ``(5) Grant of jurisdiction; remedies.--The United States 
        District Court for the District of Columbia shall have 
        jurisdiction to enforce an agreement referred to in this 
        subsection upon application by the Attorney General. Available 
        remedies shall include divestiture, injunctive relief, 
        enforcing the terms of such agreement, and monetary damages, as 
        appropriate.
    ``(j) Notice and Reports to Congress.--
            ``(1) Notice regarding reviews.--
                    ``(A) Notice at initiation of review.--CFIUS shall 
                transmit written notice of a proposed or pending 
                transaction subject to this section to the members of 
                Congress specified in paragraph (3)(C), not later than 
                10 days after the date of receipt of a notice of such 
                proposed or pending transaction, including the 
                identities of all parties involved and any foreign 
                government ownership or control of any such party.
                    ``(B) Certification at completion of review.--Upon 
                completion of a review under subsection (a), the 
                chairperson and vice chairperson of CFIUS and the head 
                of the lead agency assigned under subsection (c)(5), 
                shall transmit a certified notice to the members of 
                Congress specified in paragraph (3)(C).
            ``(2) Notice regarding investigations.--
                    ``(A) Notice at initiation of investigations.--Upon 
                commencement of an investigation under subsection (b), 
                CFIUS shall notify in writing the members of Congress 
                specified in paragraph (3)(C).
                    ``(B) Certification at completion of 
                investigations.--As soon as practicable after 
                completion of an investigation under subsection (b), 
                the chairperson and vice chairperson of CFIUS and the 
                head of the lead agency assigned under subsection 
                (c)(5), shall transmit to the members of Congress 
                specified in paragraph (3)(C) a certified written 
                report (consistent with the requirements of subsection 
                (h)) on the results of the investigation, unless the 
                matter under investigation has been sent to the 
                President for decision.
            ``(3) Certifications.--
                    ``(A) In general.--Each certified notice and report 
                required by this subsection shall be submitted to the 
                members of Congress specified in subparagraph (C), and 
                shall include--
                            ``(i) information on whether or not an 
                        investigation occurred under subsection (b) and 
                        has been completed;
                            ``(ii) a description of the actions taken 
                        by CFIUS with respect to the transaction, 
                        including the details of any legally binding 
                        assurances provided by the foreign entity that 
                        were negotiated as a condition for approval; 
                        and
                            ``(iii) identification of the determinative 
                        factors considered under subsection (g).
                    ``(B) Content of certification.--Each notice 
                required to be certified by this subsection shall be 
                signed by the chairperson and vice chairperson of CFIUS 
                and the head of the lead agency assigned under 
                subsection (c)(5), and shall contain a specific 
                attestation of each such person that, in the 
                determination of CFIUS, the transaction that is the 
                subject of the notice does not impair the national 
                security.
                    ``(C) Members of congress.--The notices and reports 
                required by this subsection shall be transmitted to--
                            ``(i) the Majority Leader and the Minority 
                        Leader of the Senate;
                            ``(ii) the chair and ranking member of the 
                        Committee on Banking, Housing, and Urban 
                        Affairs of the Senate and of any committee of 
                        the Senate having oversight over the agency 
                        assigned to lead a review or investigation 
                        under subsection (c)(5);
                            ``(iii) the Speaker and the Minority Leader 
                        of the House of Representatives; and
                            ``(iv) the chair and ranking member of the 
                        Committee on Financial Services of the House of 
                        Representatives and of any committee of the 
                        House of Representatives having oversight over 
                        the agency assigned to lead a review or 
                        investigation under subsection (c)(5).
                    ``(D) Transmittal to other members of congress.--
                The Majority Leader or the Minority Leader, in the case 
                of the Senate, and the Speaker or the Minority Leader, 
                in the case of the House of Representatives, may 
                provide the notices and reports required by this 
                paragraph regarding a proposed or pending transaction 
                involving critical infrastructure--
                            ``(i) in the case of the Senate, to members 
                        of the Senate from the State in which such 
                        critical infrastructure is located; and
                            ``(ii) in the case of the House of 
                        Representatives, to a member from a 
                        Congressional District in which such critical 
                        infrastructure is located.
                    ``(E) Limitation on delegation of certifications.--
                Notices and reports required to be certified under this 
                subsection shall be signed by the chairperson and vice 
                chairperson of CFIUS, and such certification 
                requirement may not be delegated.
            ``(4) Annual reports.--
                    ``(A) Report required.--The Secretary of the 
                Treasury, on behalf of and after consultation with the 
                members of CFIUS, shall submit to the Committee on 
                Banking, Housing, and Urban Affairs of the Senate and 
                the Committee on Financial Services of the House of 
                Representatives, on or before March 15 of each year, a 
                written report on the policy of the United States with 
                respect to the preservation of the Nation's defense 
                production and critical infrastructure. The Secretary 
                shall appear before both committees to provide 
                testimony on such reports.
                    ``(B) Contents of report.--Each report submitted 
                under subparagraph (A) shall contain--
                            ``(i) an analysis of each transaction 
                        involving a foreign person or foreign 
                        government affecting national security that has 
                        occurred during the preceding year to which the 
                        report relates, including the nature of the 
                        acquisitions and the effect or potential impact 
                        of such acquisitions on the United States 
                        defense industrial base and critical 
                        infrastructure;
                            ``(ii) a similar updated analysis for any 
                        transaction that occurred during the 4 years 
                        immediately preceding the year dealt with in 
                        the report in clause (i), including a separate 
                        section discussing the impact of transactions 
                        involving foreign governments or persons acting 
                        on behalf of or in concert with foreign 
                        governments;
                            ``(iii) a detailed discussion of all 
                        perceived risks to national security or United 
                        States critical infrastructure that CFIUS will 
                        take into account in its deliberations during 
                        the year in which the report is delivered to 
                        the committees;
                            ``(iv) a table showing on a cumulative 
                        basis, by sector, product, and country of 
                        foreign ownership, the number of acquisitions 
                        reviewed, investigated, or both, by CFIUS, to 
                        provide a census of production potentially 
                        relevant to the Nation's defense industrial 
                        base owned or controlled by foreign persons or 
                        foreign governments;
                            ``(v) a summary of any cases before CFIUS, 
                        during the year to which the report relates, in 
                        which there were disagreements among the 
                        members of CFIUS;
                            ``(vi) an evaluation of whether there is 
                        credible evidence of a coordinated strategy by 
                        1 or more countries or companies to acquire 
                        critical infrastructure of or within the United 
                        States or United States companies involved in 
                        research, development, or production of 
                        critical technologies for which the United 
                        States is a leading producer;
                            ``(vii) an evaluation of whether there are 
                        industrial espionage activities directed or 
                        directly assisted by foreign governments 
                        against private United States companies aimed 
                        at obtaining commercial secrets related to 
                        critical technologies or critical 
                        infrastructure; and
                            ``(viii) such other matters as are 
                        necessary to give a complete disclosure and 
                        analysis of the work of CFIUS during the year 
                        to which the report relates.
                    ``(C) Classified reports.--The evaluations required 
                by clauses (v) and (vi) of subparagraph (B) may be 
                classified. If they are submitted in classified form, 
                an unclassified version of such evaluations shall be 
                made available to the public.
                    ``(D) Other information withheld from public 
                reports.--
                            ``(i) Proprietary information.--The 
                        chairperson of CFIUS, in consultation with the 
                        vice chairperson of CFIUS, may withhold from 
                        public release other such information as the 
                        chairperson determines is proprietary 
                        information.
                            ``(ii) Rule of construction.--Nothing in 
                        this subparagraph shall prohibit such 
                        information from being provided to relevant 
                        Committees of Congress.
            ``(5) Appearances before congress.--The chairperson and 
        vice chairperson of CFIUS, and the heads of such additional 
        CFIUS member agencies specified in a written request by the 
        Chairman of the Committee on Banking, Housing, and Urban 
        Affairs of the Senate shall annually appear before the 
        Committee on Banking, Housing, and Urban Affairs and the 
        Committee on Financial Services of the House of Representatives 
        to provide testimony on the activities of CFIUS.
    ``(k) Regulations.--
            ``(1) In general.--The Secretary shall issue regulations to 
        carry out this section. Such regulations shall, to the extent 
        possible, minimize paperwork burdens and shall, to the extent 
        possible, coordinate reporting requirements under this section 
        with reporting requirements under any other provision of 
        Federal law.
            ``(2) Regulations relating to definitions.--Not later than 
        30 days after the date of enactment of the Foreign Investment 
        and National Security Act of 2006, the Secretary of the 
        Treasury and the Secretary of Defense shall jointly agree to 
        and issue rules concerning the manner in which the definition 
        of the term `critical infrastructure' in subsection (m)(2) 
        shall be applied to particular acquisitions, mergers, and 
        takeovers, for purposes of the mandatory investigation 
        requirement of subsection (b)(1)(A), except that, until such 
        rules are issued in final form and become effective, such 
        definition shall be applied without regard to any such rules 
        (whether proposed or otherwise).
    ``(l) Effect on Other Law.--Nothing in this section shall be 
construed to alter or affect any existing power, process, regulation, 
investigation, enforcement measure, or review provided by any other 
provision of law, including the International Emergency Economic Powers 
Act, or of the President or Congress.
    ``(m) Definitions.--As used in this section--
            ``(1) the term `critical infrastructure' means, subject to 
        rules issued under subsection (k)(2), any systems and assets, 
        whether physical or cyber-based, so vital to the United States 
        that the degradation or destruction of such systems or assets 
        would have a debilitating impact on national security, 
        including national economic security and national public health 
        or safety;
            ``(2) the term `critical technologies' means technologies 
        identified under title VI of the National Science and 
        Technology Policy, Organization, and Priorities Act of 1976, or 
        other critical technology, critical components, or critical 
        technology items essential to national defense identified 
        pursuant to this section;
            ``(3) the terms `Committee on Foreign Investment in the 
        United States' and `CFIUS' mean the committee established under 
        subsection (c);
            ``(4) the term `foreign government' means any government or 
        body exercising governmental functions, other than the 
        Government of the United States or of a State or political 
        subdivision thereof. The term includes national, State, 
        provincial, and municipal governments, including their 
        respective departments, agencies, government-owned enterprises, 
        and other agencies and instrumentalities;
            ``(5) the term `foreign person' means any non-United States 
        national, any organization owned or controlled by such a 
        person, and any entity organized under the laws of a country 
        other than the United States, and any entity owned or 
        controlled by such entity;
            ``(6) the term `intelligence community' has the same 
        meaning as in section 3 of the National Security Act of 1947 
        (50 U.S.C. 401a); and
            ``(7) the term `transaction' means a proposed or pending 
        merger, acquisition, or takeover''.
                                                       Calendar No. 474

109th CONGRESS

  2d Session

                                S. 3549

                          [Report No. 109-264]

_______________________________________________________________________

                                 A BILL

 To amend the Defense Production Act of 1950, to strengthen Government 
  review and oversight of foreign investment in the United States, to 
provide for enhanced Congressional oversight with respect thereto, and 
                          for other purposes.

_______________________________________________________________________

                             June 21, 2006

                 Read twice and placed on the calendar