[Congressional Record Volume 152, Number 27 (Monday, March 6, 2006)]
[Senate]
[Page S1796]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. COLEMAN:
  S. 2374. A bill to amend the Homeland Security Act of 2002 to limit 
foreign control of investments in certain United States critical 
infrastructure; to the Committee on Banking, Housing, and Urban 
Affairs.
  Mr. COLEMAN. Mr. President, I ask unanimous consent that the text of 
my legislation, the Foreign Investment Transparency and Security Act of 
2006, be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2374

       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 have--
       ``(1) a board of directors, the majority of which is 
     comprised of United States citizens; and
       ``(2) a chief security officer who is a United States 
     citizen, responsible for safety and security issues related 
     to the critical infrastructure.
       ``(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 of the Treasury, in coordination 
     with the Secretary, 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.''.

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