I 

109TH CONGRESS 

2D SESSION H. R. 4814 

To amend section 721 of the Defense Production Act of 1950 to suspend 

all proposed mergers, acquisitions, or takeovers by foreign persons until 

certain determinations are made. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 28, 2006 

Mr. GARRETT of New Jersey introduced the following bill; which was referred 

to the Committee on Financial Services, and in addition to the Committees on Energy and Commerce and International Relations, for a period 

to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

A BILL 

To amend section 721 of the Defense Production Act of 

1950 to suspend all proposed mergers, acquisitions, or 

takeovers by foreign persons until certain determinations 

are made. 

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 ‘‘Safe and Accountable 

5 Foreign Enterprises Proving Other Requirements To Se6 cure (SAFE PORTS) Act’’. 


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1 SEC. 2. MODIFICATION OF PROCEDURES FOR PROPOSED 

2 MERGERS, ACQUISITIONS, OR TAKEOVERS BY 

3 FOREIGN PERSONS. 

4 (a) SUSPENSION OF MERGERS, ACQUISITIONS, AND

5 TAKEOVERS.—Section 721(a) of the Defense Production 

6 Act of 1950 (50 U.S.C. App. 2170(a) is amended— 

7 (1) by striking— 

8 ‘‘(a) INVESTIGATIONS.—The President’’ and insert9 ing 

10 ‘‘(a) INVESTIGATIONS.— 

11 ‘‘(1) IN GENERAL.—The President’’; and 

12 (2) by adding at the end the following: 

13 ‘‘(2) REQUIRED DETERMINATIONS.—No pro14 posed or pending merger, acquisition, or takeover to 

15 which paragraph (1) applies may become effective 

16 unless approved by the President or the President’s 

17 designee, and no such merger, acquisition, or take18 over may be so approved unless the President has 

19 determined that— 

20 ‘‘(A) there is no credible evidence that 

21 leads the President to believe that the foreign 

22 interest that would exercise control of persons 

23 engaged in interstate commerce in the United 

24 States might take action that would threaten to 

25 impair the national security of the United 

26 States; and 


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1 ‘‘(B) provisions of law other than this sec2 tion and the International Emergency Economic 

3 Powers Act (50 U.S.C. 1701–1706) provide 

4 adequate and appropriate authority for the 

5 President to protect the national security with 

6 respect to the proposed merger, acquisition, or 

7 takeover. 

8 ‘‘(3) REQUIRED INVESTIGATION.—If the Presi9 dent is unable to make the determination required 

10 under paragraph (2) with respect to a merger, ac11 quisition, or takeover, then an investigation shall be 

12 made under subsection (b) with respect to that 

13 merger, acquisition, or takeover. 

14 ‘‘(4) JUDICIAL REVIEW.—Any determination of 

15 the President under paragraph (2) is not subject to 

16 judicial review.’’. 

17 (b) CONFORMING AMENDMENTS.—Section 721 of the 

18 Defense Production Act of 1950 is amended— 

19 (1) in subsection (d), by striking ‘‘Subject to 

20 subsection (d), the’’ and inserting ‘‘The’’; 

21 (2) by striking subsection (e) and redesignating 

22 subsections (f) through (k) as subsections (e) 

23 through (j), respectively; and 

24 (3) in subsection (f), as redesignated— 


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1 (A) in the heading, by striking ‘‘REPORT’’ 

2 and inserting ‘‘REPORTS’’; 

3 (B) by striking ‘‘The President’’ and in4 serting— 

5 ‘‘(1) REPORTS OF ACTIONS TAKEN.—The Presi6 dent’’; 

7 (C) by striking ‘‘findings made under sub8 section (e) and the factors considered under 

9 subsection (f)’’ and inserting ‘‘the factors con10 sidered under subsection (e)’’; and 

11 (D) by adding at the end the following: 

12 ‘‘(2) QUARTERLY REPORTS.— 

13 ‘‘(A) REPORTS.—Not later than the 30 

14 days after the end of each calendar quarter, the 

15 President shall transmit to the Congress a re16 port on the actions taken under subsection (a) 

17 during that calendar quarter on all proposed 

18 mergers, acquisitions, and takeovers. 

19 ‘‘(B) DEFINITION.—In this paragraph, the 

20 term ‘calendar quarter’ means the 3-month pe21 riod beginning on January 1, April 1, July 1, 

22 and October 1 of each year.’’. 

Æ 


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