A bill to amend the Homeland Security Act of 2002 to limit foreign control of investments in certain United States critical infrastructure.

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--
            ``(1) have a board of directors, the majority of which is 
        comprised of United States citizens;
            ``(2) have a chief security officer who is a United States 
        citizen, responsible for safety and security issues related to 
        the critical infrastructure; and
            ``(3) maintain all records related to operations, 
        personnel, and security of the United States general business 
        corporation in the United States.
    ``(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, in coordination with the Secretary of the 
Treasury, 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.''.

SEC. 3. MARITIME SECURITY.

    (a) Findings.--Congress finds that--
            (1) existing scanning processes for maritime containers are 
        insufficient;
            (2) it should be the goal of the United States to scan 100 
        percent of inbound maritime containers; and
            (3) the maritime container inspection system employed in 
        Hong Kong shows promise in enhancing the maritime security 
        capabilities of the United States.
    (b) Amendments to Homeland Security Act.--
            (1) 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:

``SEC. 404. REPORT ON SCANNING OF MARITIME CONTAINERS.

    ``(a) 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).
    ``(b) 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).''.
            (2) 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:

        ``Sec. 404. Report on scanning of maritime containers.''.

Summary: Foreign Investment Transparency and Security Act of 2006 - Amends the Homeland Security Act of 2002 to provide that 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 specified requirements. Requires a majority of the board of directors of such a corporation and its chief security officer to be US citizens. Directs the Secretary of Homeland Security to report to Congress on the processes and policies for implementation of a scanning system for 100 of all inbound maritime containers.