II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Foreign Investment 

5 Transparency and Security Act of 2006’’. 


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•S 2374 IS

1 SEC. 2. LIMITS ON FOREIGN CONTROL OF INVESTMENTS IN 

2 CERTAIN UNITED STATES CRITICAL INFRA3 STRUCTURE. 

4 (a) IN GENERAL.—Title II of the Homeland Security 

5 Act of 2002 (6 U.S.C. 201 et seq.) is amended by adding 

6 at the end the following: 

7 ‘‘Subtitle E—Limits on Foreign 

8 Control of Investments in Cer9 tain United States Critical In10 frastructure 

11 ‘‘SEC. 241. DEFINITIONS. 

12 ‘‘As used in this subtitle— 

13 ‘‘(1) the term ‘foreign government controlled 

14 entity’ means any entity in which a foreign govern15 ment owns a majority interest, or otherwise controls 

16 or manages the entity; and 

17 ‘‘(2) the term ‘general business corporation’ 

18 means any entity that qualifies for treatment for 

19 Federal taxation purposes under subchapter C or 

20 subchapter S of the Internal Revenue Code of 1986, 

21 established or organized under the laws of any 

22 State. 

23 ‘‘SEC. 242. LIMITATION ON FOREIGN INVESTMENTS. 

24 ‘‘(a) IN GENERAL.—A foreign government controlled 

25 entity may acquire, own, or otherwise control or manage 

26 any critical infrastructure of the United States only 


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•S 2374 IS

1 through the establishment or operation of a foreign owned 

2 general business corporation that meets the requirements 

3 of subsection (b). 

4 ‘‘(b) REQUIREMENTS.—For purposes of this section, 

5 a general business corporation shall have— 

6 ‘‘(1) a board of directors, the majority of which 

7 is comprised of United States citizens; and 

8 ‘‘(2) a chief security officer who is a United 

9 States citizen, responsible for safety and security 

10 issues related to the critical infrastructure. 

11 ‘‘(c) RULE OF CONSTRUCTION.—Nothing in this sub12 title may be construed to restrict or otherwise alter the 

13 authority of the President or the Committee on Foreign 

14 Investment in the United States (or any successor thereto) 

15 as the designee of the President, under section 721 of the 

16 Defense Production Act of 1950. 

17 ‘‘SEC. 243. REGULATIONS REQUIRED. 

18 ‘‘Not later than 6 months after the date of enactment 

19 of this subtitle, the Secretary of the Treasury, in coordina20 tion with the Secretary, shall promulgate final regulations 

21 to carry out this subtitle. 

22 ‘‘SEC. 244. EFFECTIVE DATE. 

23 ‘‘(a) IN GENERAL.—Section 242 shall apply begin24 ning on the date that is 6 months after the date of enact25 ment of this subtitle. 


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1 ‘‘(b) EXISTING ENTITIES.—A foreign government 

2 controlled entity that owns or otherwise controls or man3 ages any critical infrastructure of the United States on 

4 the effective date of this subtitle shall comply with the re5 quirements of this subtitle not later than 180 days after 

6 that effective date.’’. 

7 (b) CONFORMING AMENDMENT.—The table of con8 tents under section 1(b) of the Homeland Security Act of 

9 2002 (6 U.S.C. 101) is amended by inserting after the 

10 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.’’. 

Æ 


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