SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Port Security Act of 2006''.

SEC. 2. PROHIBITION ON LEASES OF REAL PROPERTY AND FACILITIES AT UNITED 
              STATES PORTS BY FOREIGN GOVERNMENT-OWNED ENTITIES.

    (a) In General.--Section 271(d) of the Defense Production Act of 
1950 (50 U.S.C. App. 2170(d)) is amended--
            (1) by striking ``Subject to subsection (d)'' and inserting 
        the following:
            ``(1) In general.--Subject to subsection (e)''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Prohibition on leases of real property and facilities 
        at united states ports by foreign government-owned entities.--
        The President shall prohibit any merger, acquisition, or 
        takeover described in subsection (a)(1) that will result in any 
        entity that is owned or controlled by a foreign government 
        leasing, operating, managing, or owning real property or 
        facilities at a United States port.''.
    (b) Report Required.--
            (1) In general.--Not later than 30 days after the date of 
        the enactment of this Act, the President shall submit to 
        Congress a report on the leasing, operating, managing, or 
        owning real property or facilities at United States ports by 
        entities that are owned or controlled by foreign governments.
            (2) Content.--The report required under paragraph (1) shall 
        include--
                    (A) a list of all entities that are owned or 
                controlled by foreign governments that are leasing, 
                operating, managing, or owning real property or 
                facilities at United States ports;
                    (B) an assessment of the national security threat 
                posed by such activities; and
                    (C) recommendations for any legislation in response 
                to such threat.

SEC. 3. INCREASED TRANSPARENCY OF MANDATORY INVESTIGATIONS.

    Section 271(b) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2170(b)) is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (2) by striking ``The President'' and inserting the 
        following:
            ``(1) In general.--The President'';
            (3) by adding at the end the following new paragraphs:
            ``(2) Notification to congress.--Not later than one day 
        after commencing an investigation under paragraph (1), the 
        President shall provide notice of the investigation and 
        relevant information regarding the proposed merger, 
        acquisition, or takeover, including relevant ownership records 
        to--
                    ``(A) the Majority Leader and Minority Leader of 
                the Senate;
                    ``(B) the Speaker and Minority Leader of the House 
                of Representatives;
                    ``(C) the Chairmen and Ranking Members of the 
                Committee on Finance, the Committee on Homeland 
                Security and Government Affairs, the Committee on 
                Banking, Housing, and Urban Affairs, the Committee on 
                Armed Services, and the Select Committee on 
                Intelligence of the Senate;
                    ``(D) the Chairmen and Ranking Members of the 
                Committee on Ways and Means, the Committee on Homeland 
                Security, the Committee on Financial Services, the 
                Committee on Armed Services, and the Permanent Select 
                Committee on Intelligence of the House of 
                Representatives; and
                    ``(E) the Members of Congress representing the 
                States and districts affected by the proposed 
                transaction.
            ``(3) Notification to public officials of investigations of 
        proposed transactions affecting united states ports.--In the 
        case of an investigation under paragraph (1) of a proposed 
        merger, acquisition, or takeover that will result in any entity 
        that is owned or controlled by a foreign government leasing, 
        operating, managing, or owning real property or facilities at a 
        United States port, the President shall, not later than one day 
        after commencing an investigation under paragraph (1), notify 
        the Governors and heads of relevant government agencies of the 
        States in which such ports are located and provide to such 
        Governors and relevant agency heads information regarding the 
        proposed merger, acquisition, or takeover, including relevant 
        ownership records.
            ``(4) Public comments.--
                    ``(A) Solicitation of public comments.--Not later 
                than 7 days after commencing an investigation under 
                paragraph (1), the President shall publish in the 
                Federal Register a description of the proposed merger, 
                acquisition, or takeover, including a solicitation for 
                public comments on such proposed merger, acquisition, 
                or takeover.
                    ``(B) Summary of public comments.--Not later than 
                10 days prior to the completion of an investigation 
                under paragraph (1), the President shall publish in the 
                Federal Register a summary of the public comments 
                received pursuant to subparagraph (A).''.

SEC. 4. TECHNICAL CORRECTION.

    Section 271(e) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2170(e)) is amended by striking ``subsection (c)'' and inserting 
``subsection (d)''.

SEC. 5. EFFECTIVE DATE.

    The amendments made by this Act shall apply to any merger, 
acquisition, or takeover considered on or after October 1, 2005 under 
section 271 of the Defense Production Act of 1950 (50 U.S.C. App. 
2170).
Port Security Act of 2006 - Amends the Defense Production Act of 1950 to prohibit a merger, acquisition, or takeover that will result in a foreign government-owned entity leasing, operating, managing, or owning real property or facilities at a U.S. port. Requires the President to: (1) report to Congress on the leasing, operating, managing, or owning of real property or facilities at U.S. ports by entities that are foreign government-owned; (2) provide notice to Congress and relevant public officials of the required mandatory investigation into whether a proposed merger, acquisition, or takeover could affect U.S. national security; and (3) provide for public comment with respect to such transactions.
To ensure the security of United States ports, and for other purposes.