II
109th CONGRESS
2d Session
S. 2410
IN THE SENATE OF THE UNITED STATES
March 14, 2006
Mr. Coleman (for himself, Mr. Levin, and Mr. Graham) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs
A BILL
To amend the Homeland Security Act of 2002 to limit foreign control of investments in certain United States critical infrastructure.
Short title
This Act may be cited as
the Foreign Investment Transparency
and Security Act of 2006
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Limits on foreign control of investments in certain United States critical infrastructure
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:
Limits on foreign control of investments in certain United States critical infrastructure
Definitions
As used in this subtitle—
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
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.
Limitation on foreign investments
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).
Requirements
For purposes of this section, a general business corporation shall—
have a board of directors, the majority of which is comprised of United States citizens;
have a chief security officer who is a United States citizen, responsible for safety and security issues related to the critical infrastructure; and
maintain all records related to operations, personnel, and security of the United States general business corporation in the United States.
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.
Regulations required
Not later than 6 months after the date of enactment of this subtitle, the Secretary, in coordination with the Secretary of the Treasury, shall promulgate final regulations to carry out this subtitle.
Effective date
In general
Section 242 shall apply beginning on the date that is 6 months after the date of enactment of this subtitle.
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.
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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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Maritime security
Findings
Congress finds that—
existing scanning processes for maritime containers are insufficient;
it should be the goal of the United States to scan 100 percent of inbound maritime containers; and
the maritime container inspection system employed in Hong Kong shows promise in enhancing the maritime security capabilities of the United States.
Amendments to Homeland Security Act
In general
Subtitle A of title IV of the Homeland Security Act (6 U.S.C. 201 et seq.) is amended by adding at the end the following:
Report on Scanning of maritime containers
Report to Congress
Not later than 90 days after the date of enactment of this section, the Secretary shall submit a report to Congress detailing the processes and policies for implementation of a scanning system for 100 percent of the inbound maritime containers described in subsection (a).
Definition of Container
The term container has the meaning given the term in the International Convention for Safe Containers, with annexes, done at Geneva December 2, 1972 (29 UST 3707).
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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 403 the following:
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