A bill to add the heads of certain Federal intelligence agencies to the Committee on Foreign Investment in the United States, to require enhanced notification to Congress and for other purposes.

Summary: U.S. National Security Protection Act of 2006 - Revises the structure of the Committee on Foreign Investment in the United States (CFIUS) to: (1) add the Director of National Intelligence and the Director of Central Intelligence as members; (2) designate the Secretaries of Homeland Security and of Defense as vice chairs; and (3) require the President to establish a Subcommittee on Intelligence.

Amends the Defense Production Act of 1950 to charge the Subcommittee with the tasks of providing review and comment both before and after investigations authorized or required under the Act to determine the national security effects of mergers, acquisitions, and takeovers ("takeovers," for purposes of this Act) involving foreign persons or foreign government-controlled entities that could result in foreign control of persons engaged in interstate commerce.

Includes ownership, control, or operation of critical infrastructure as interstate commerce activity that could affect national security.

Requires certification by the President or by the chair of CFIUS (when CFIUS is acting as the President's designee) of a final determination not to proceed with an investigation by the President of a takeover action.

Requires persons controlled by or acting on behalf of a foreign government or person to notify the President (or the President's designee) in writing of any proposed takeover of critical infrastructure, providing information necessary to assess national security effects. Requires notice to Congress within 15 days of such notification and at the commencement of an investigation.

Requires the President to report quarterly to Congress on all takeovers that were subject to investigation or review during the quarter.

Makes CFIUS the President's designee for purposes of the takeover investigation provisions.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``U.S. National Security Protection 
Act of 2006''.

SEC. 2. DEFINITIONS.

    As used in this Act--
            (1) the term ``Committee on Foreign Investment in the 
        United States'' or ``CFIUS'' means the committee established by 
        the President under Executive Order 11858, May 7, 1975, and any 
        successor thereto; and
            (2) the term ``intelligence community'' has the same 
        meaning as in section 3(4) of the National Security Act of 1947 
        (50 U.S.C. 401a(4)).

SEC. 3. COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED STATES.

    (a) CFIUS Membership.--
            (1) Directors of national intelligence and central 
        intelligence.--Notwithstanding any other provision of law, the 
        Director of National Intelligence and the Director of Central 
        Intelligence shall be members of the Committee on Foreign 
        Investment in the United States.
            (2) Vice chairs.--The Secretary of Homeland Security and 
        the Secretary of Defense shall serve as vice chairs of the 
        Committee on Foreign Investment in the United States.
    (b) Subcommittee on Intelligence.--Not later than 30 days after the 
date of enactment of this Act, the President shall establish within the 
Committee on Foreign Investment in the United States a Subcommittee on 
Intelligence, which shall be--
            (1) chaired by the Director of National Intelligence; and
            (2) comprised of the head of each member of the 
        intelligence community.

SEC. 4. SUBCOMMITTEE REVIEW OF CFIUS INVESTIGATIONS.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended by adding at the end the following:
    ``(l) Intelligence Subcommittee Reviews of Investigations.--
            ``(1) Pre-investigation review and comment.--The 
        Subcommittee on Intelligence of the Committee on Foreign 
        Investment in the United States shall--
                    ``(A) review information relating to a proposed 
                merger, acquisition, or takeover, during the 15-day 
                period following the date of receipt of such 
                information, and before the commencement of any 
                investigation under subsection (a) or (b); and
                    ``(B) provide written comments on any determination 
                by the President or CFIUS not to conduct an 
                investigation under subsection (a).
            ``(2) Post-investigation review and comment.--The 
        Subcommittee on Intelligence of the Committee on Foreign 
        Investment in the United States shall--
                    ``(A) review each investigation conducted by the 
                President or CFIUS under subsections (a) and (b); and
                    ``(B) provide written comments on the results of 
                each such investigation.''.

SEC. 5. TREATMENT OF CRITICAL INFRASTRUCTURE AS AFFECTING NATIONAL 
              SECURITY.

    Section 721(b) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2170(b)) is amended by inserting after ``commerce in the United 
States'' the following: ``, including any person that owns, controls, 
or operates any critical infrastructure, as defined in section 1016(e) 
of the USA PATRIOT Act (42 U.S.C. 5195c(e)),''.

SEC. 6. CERTIFICATION OF NATIONAL SECURITY DETERMINATIONS.

    ``(m) Presidential or Chair Certification of Threat 
Determinations.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, a final determination that an investigation under 
        subsection (a) is not required with respect to a merger, 
        acquisition, or takeover may be made only--
                    ``(A) by the President, in any case in which the 
                President is acting on the President's own behalf under 
                subsection (a); or
                    ``(B) by the Secretary of the Treasury, with the 
                concurrence of the Secretary of Homeland Security and 
                the Secretary of Defense, in their respective 
                capacities as chair and vice chairs of CFIUS, in any 
                case in which CFIUS is acting as the President's 
                designee under subsection (a).
            ``(2) Certifications required.--
                    ``(A) Presidential determinations.--In any instance 
                in which the President is acting on his or her own 
                behalf under subsection (a), the President shall 
                certify in writing to a final determination that an 
                investigation under subsection (a) is not required with 
                respect to a merger, acquisition, or takeover, and such 
                certification requirement may not be delegated to any 
                person.
                    ``(B) CFIUS determinations.--In any instance in 
                which CFIUS is acting as the President's designee under 
                subsection (a), the Secretary of the Treasury, the 
                Secretary of Homeland Security, and the Secretary of 
                Defense shall each certify in writing to a final 
                determination that an investigation under subsection 
                (a) is not required with respect to a merger, 
                acquisition, or takeover, and such certification 
                requirement may not be delegated to any person.
            ``(3) Nonconcurrence.--If there is not concurrence among 
        the chair and vice chairs of CFIUS for purposes of paragraph 
        (1)(B), the President shall make the final determination that 
        an investigation under subsection (a) is not required with 
        respect to a merger, acquisition, or takeover, and the 
        President shall certify such determination in writing.''.

SEC. 7. MANDATORY SUBMISSION OF INFORMATION.

    Section 721(c) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2170(c)) is amended--
            (1) in the subsection heading, by striking 
        ``Confidentiality of'' and inserting ``Submission of'';
            (2) by striking ``Any information or documentary material 
        filed'' and inserting the following:
            ``(1) Required submissions.--Each person controlled by or 
        acting on behalf of a foreign government or foreign person 
        shall--
                    ``(A) notify the President or the President's 
                designee in writing of any proposed merger, 
                acquisition, or takeover of any United States critical 
                infrastructure (as defined in section 1016(e) of the 
                USA PATRIOT Act (42 U.S.C. 5195c(e))); and
                    ``(B) provide such information to the President or 
                the President's designee with respect to such proposed 
                transaction as may be necessary for purposes of this 
                section.
            ``(2) Confidentiality of information.--Any information or 
        documentary material filed, either voluntarily or under 
        paragraph (1),''.

SEC. 8. NOTICES OF REVIEWS AND INVESTIGATIONS AND QUARTERLY REPORTS 
              REQUIRED.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended by adding at the end the following:
    ``(n) Notices of Reviews and Investigations and Quarterly Reports 
to Congress.--
            ``(1) Notices to congress.--The President or the 
        President's designee shall notify the appropriate committees of 
        Congress--
                    ``(A) not later than 15 days after the date of 
                receipt of written notification of a proposed or 
                pending merger, acquisition, or takeover described in 
                subsection (a) or (b); and
                    ``(B) at the commencement of each investigation 
                under subsection (a) or (b).
            ``(2) Quarterly reports to congress.--
                    ``(A) In general.--The President shall, on a 
                quarterly basis, submit to Congress a report on all 
                mergers, acquisitions, and takeovers that were the 
                subject of investigation or review under this section 
                during the quarter, including any comments submitted 
                under subsection (l)(2).
                    ``(B) Form.--Each report required under 
                subparagraph (A) may be submitted in unclassified form, 
                and may contain a classified annex.''.

SEC. 9. CFIUS AS PRESIDENT'S DESIGNEE UNDER DEFENSE PRODUCTION ACT.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170) is amended by adding at the end the following:
    ``(o) Designee.--Notwithstanding any other provision of law, the 
President's designee for purposes of this section shall be the 
Committee on Foreign Investment in the United States, established by 
order of the President in Executive Order 11858, May 7, 1975 (in this 
section referred to as `CFIUS'), or any successor thereto.''.