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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4813 Introduced in House (IH)]

109th CONGRESS
  2d Session
                                H. R. 4813

    To amend the Defense Production Act of 1950 to improve national 
 security and clarify congressional intent with respect to the review 
 process for certain mergers and acquisitions, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           February 28, 2006

Mr. Foley (for himself, Mr. Thompson of Mississippi, Mr. Brown of Ohio, 
 Mrs. Bono, Mr. McCotter, Mr. Ruppersberger, Mr. Fossella, Mr. Berry, 
 Mr. Sam Johnson of Texas, Mr. Michaud, Mr. Wu, Mr. Tiberi, Mr. Shays, 
Mr. Feeney, Mr. Davis of Tennessee, Mr. LoBiondo, Mr. Wolf, Mr. Ryan of 
 Wisconsin, Mr. Wamp, Mr. Wexler, Mr. DeFazio, Mr. Terry, Mr. Holden, 
 Mr. Simmons, Mr. Sanders, Mr. Ross, Mrs. Emerson, Mr. Brown of South 
    Carolina, Mr. McGovern, Ms. Harris, and Mr. Davis of Kentucky) 
 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 the Defense Production Act of 1950 to improve national 
 security and clarify congressional intent with respect to the review 
 process for certain mergers and acquisitions, and for other purposes.

    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 ``United States Security Improvement 
Act of 2006''.

SEC. 2. AMENDMENTS TO DEFENSE PRODUCTION ACT OF 1950 RELATING TO 
              MANDATORY INVESTIGATIONS.

    Section 721(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, and moving the left 
        margin of such provisions 4 ems to the right;
            (2) by striking ``Mandatory Investigations.--The 
        President'' and inserting ``Mandatory Investigations.--
            ``(1) In general.--The President'';
            (3) by striking ``that could affect the national security 
        of the United States'' at the end of the 1st sentence;
            (4) by inserting after the 1st sentence the following new 
        paragraph:
            ``(2) Purpose of investigation.--The purpose of a mandatory 
        investigation under this section shall be to determine whether 
        the merger, acquisition, or takeover referred to in paragraph 
        (1) could affect the national security of the United States.'';
            (5) by striking ``Such investigation shall--'' and 
        inserting the following:
            ``(3) Timing of investigation.--Subject to paragraph (4), a 
        mandatory investigation under this section shall--''; and
            (6) by adding at the end the following new paragraph:
            ``(4) Notice and wait requirements.--
                    ``(A) Notice to the congress.--
                            ``(i) In general.--Within 5 days after 
                        initiating a mandatory investigation under 
                        paragraph (1), the President or the President's 
                        designee shall transmit a notice of the 
                        transaction being investigated to each House of 
                        the Congress.
                            ``(ii) Distribution.--Any notice received 
                        under clause (i) shall be promptly transmitted 
                        to the appropriate committees of the House of 
                        Representatives and the Senate, including the 
                        Permanent Select Committee on Intelligence, the 
                        Committee on Homeland Security, and the 
                        Committee on Financial Services of the House of 
                        Representatives and the Select Committee on 
                        Intelligence, the Committee on Homeland 
                        Security and Governmental Affairs, and the 
                        Committee on Banking, Housing, and Urban 
                        Affairs of the Senate.
                            ``(iii) Contents of notice.--The notice 
                        shall include such details of the transaction 
                        as will enable committees of the House of 
                        Representatives and the Senate to deliberate on 
                        the transaction.
                    ``(B) Delayed period for action.-- The President 
                shall not make a determination to take action or not 
                take action under subsection (d) with respect to a 
                transaction for which notice to the Congress is 
                required under subparagraph (A), other than to suspend 
                the proposed transaction pending the outcome of the 
                investigation, until 14 days after such notice is 
                transmitted to the Congress in accordance with such 
                subparagraph.
                    ``(C) Consideration of congressional response.--Any 
                comments on the transaction provided by any committee 
                of the House of Representatives or the Senate to which 
                a notice was transmitted under subparagraph (A) shall 
                be considered and taken into account by the President 
                in making any determination under this section.''.
                                 <all>
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