109th CONGRESS
2d Session
H. R. 4814
To amend section 721 of the Defense Production Act of 1950 to suspend
all proposed mergers, acquisitions, or takeovers by foreign persons until
certain determinations are made.
IN THE HOUSE OF REPRESENTATIVES
February 28, 2006
Mr. GARRETT of New Jersey introduced the following bill; which was referred
to the Committee on Financial Services, and in addition to the Committees
on Energy and Commerce and International Relations, for a period to be subsequently
determined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To amend section 721 of the Defense Production Act of 1950 to suspend
all proposed mergers, acquisitions, or takeovers by foreign persons until
certain determinations are made.
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 `Safe and Accountable Foreign Enterprises Proving
Other Requirements To Secure (SAFE PORTS) Act'.
SEC. 2. MODIFICATION OF PROCEDURES FOR PROPOSED MERGERS, ACQUISITIONS,
OR TAKEOVERS BY FOREIGN PERSONS.
(a) Suspension of Mergers, Acquisitions, and Takeovers- Section 721(a) of
the Defense Production Act of 1950 (50 U.S.C. App. 2170(a) is amended--
`(a) Investigations- The President' and inserting
`(1) IN GENERAL- The President'; and
(2) by adding at the end the following:
`(2) REQUIRED DETERMINATIONS- No proposed or pending merger, acquisition,
or takeover to which paragraph (1) applies may become effective unless
approved by the President or the President's designee, and no such merger,
acquisition, or takeover may be so approved unless the President has determined
that--
`(A) there is no credible evidence that leads the President to believe
that the foreign interest that would exercise control of persons engaged
in interstate commerce in the United States might take action that would
threaten to impair the national security of the United States; and
`(B) provisions of law other than this section and the International
Emergency Economic Powers Act (50 U.S.C. 1701-1706) provide adequate
and appropriate authority for the President to protect the national
security with respect to the proposed merger, acquisition, or takeover.
`(3) REQUIRED INVESTIGATION- If the President is unable to make the determination
required under paragraph (2) with respect to a merger, acquisition, or
takeover, then an investigation shall be made under subsection (b) with
respect to that merger, acquisition, or takeover.
`(4) JUDICIAL REVIEW- Any determination of the President under paragraph
(2) is not subject to judicial review.'.
(b) Conforming Amendments- Section 721 of the Defense Production Act of
1950 is amended--
(1) in subsection (d), by striking `Subject to subsection (d), the' and
inserting `The';
(2) by striking subsection (e) and redesignating subsections (f) through
(k) as subsections (e) through (j), respectively; and
(3) in subsection (f), as redesignated--
(A) in the heading, by striking `Report' and inserting `Reports';
(B) by striking `The President' and inserting--
`(1) REPORTS OF ACTIONS TAKEN- The President';
(C) by striking `findings made under subsection (e) and the factors
considered under subsection (f)' and inserting `the factors considered
under subsection (e)'; and
(D) by adding at the end the following:
`(A) REPORTS- Not later than the 30 days after the end of each calendar
quarter, the President shall transmit to the Congress a report on the
actions taken under subsection (a) during that calendar quarter on all
proposed mergers, acquisitions, and takeovers.
`(B) DEFINITION- In this paragraph, the term `calendar quarter' means
the 3-month period beginning on January 1, April 1, July 1, and October
1 of each year.'.
END
