109th CONGRESS
2d Session
S. 2374
To amend the Homeland Security Act of 2002 to limit foreign control
of investments in certain United States critical infrastructure.
IN THE SENATE OF THE UNITED STATES
March 6, 2006
Mr. COLEMAN 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.
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.'.
END
