II 110th CONGRESS 1st Session S. 1404 IN THE SENATE OF THE UNITED STATES May 15, 2007 Mr. Inhofe introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To provide for Congressional authority with respect to certain acquisitions, mergers, and takeovers under the Defense Production Act of 1950.

1.

Short title

This Act may be cited as the Foreign Investment Security Act of 2007.

2.

Congressional Authority Under Defense Production Act

Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 2170) is amended— (1)in subsection (a)— (A)by striking 30 and inserting 60; and (B)by adding at the end the following: The findings and recommendations of any such investigation shall be sent immediately to the President and to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives for review.; (2)in subsection (b)— (A)by inserting before the first period , or in such instance at the request of the chairman and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate or the Committee on Financial Services of the House of Representatives; (B)in paragraph (2), by inserting before the period , and the findings and recommendations of such investigation shall be sent immediately to the President and to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives for review; and (C)by striking 30 and inserting 60; (3)in subsection (f)— (A)by striking designee may and inserting designee shall; (B)in paragraph (4), by striking and at the end; (C)in paragraph (5), by striking the period at the end and inserting ; and; and (D)by adding at the end the following: (6)the long-term projections of United States requirements for sources of energy and other critical resources and materials and for economic security. ; (4)in subsection (g)— (A)by striking The President and inserting the following: (1)

In general

The President ; and (B)by adding at the end the following: (2)

Quarterly submissions

The Secretary of the Treasury shall transmit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives, on a quarterly basis, a detailed summary and analysis of each merger, acquisition, or takeover that is being reviewed, was reviewed during the preceding 90-day period, or is likely to be reviewed in the coming quarter by the President or the President's designee under subsection (a) or (b). Each such summary and analysis shall be submitted in unclassified form, with classified annexes as the Secretary determines are required to protect company proprietary information and other sensitive information. Each such summary and analysis shall include an appendix detailing dissenting views. ; and (5)by adding at the end the following new subsections: (l)

Congressional authority

(1)

In general

If the President does not suspend or prohibit an acquisition, merger, or takeover under subsection (d), the acquisition, merger, or takeover may not be consummated until 10 legislative days after the President notifies the Congress of the decision not to suspend or prohibit. If a joint resolution objecting to the proposed transaction is introduced in either House of Congress by the chairman of one of the appropriate congressional committees during such 10-legislative-day period, the transaction may not be consummated until 30 legislative days after the date on which such resolution is introduced. (2)

Disapproval upon passage of resolution

If a joint resolution introduced under paragraph (1) is enacted into law, the transaction may not be consummated. (3)

Considerations

The Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives shall review any findings and recommendations submitted under subsection (a) or (b), and any joint resolution under paragraph (1) of this subsection shall be based on the factors outlined in subsection (f). (4)

Senate procedure

Any joint resolution under paragraph (1) shall be considered in the Senate in accordance with the provisions of section 601(b) of the International Security Assistance and Arms Export Control Act of 1976 (Public Law 94–329, 90 Stat. 765). (5)

House consideration

For the purpose of expediting the consideration and enactment of a joint resolution under paragraph (1), a motion to proceed to the consideration of any such joint resolution shall be treated as highly privileged in the House of Representatives. (m)

Thorough review

The President, or the President's designee, shall ensure that an acquisition, merger, or takeover that is completed prior to a review or investigation under this section shall be fully reviewed for national security considerations, even in the event that a request for such review is withdrawn. .