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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2374 Introduced in Senate (IS)]

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.''.
                                 <all>
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