I 

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. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘United States Security 

3 Improvement Act of 2006’’. 

4 SEC. 2. AMENDMENTS TO DEFENSE PRODUCTION ACT OF 

5 1950 RELATING TO MANDATORY INVESTIGA6 TIONS. 

7 Section 721(b) of the Defense Production Act of 

8 1950 (50 U.S.C. App. 2170(b)) is amended— 

9 (1) by redesignating paragraphs (1) and (2) as 

10 subparagraphs (A) and (B), respectively, and mov11 ing the left margin of such provisions 4 ems to the 

12 right; 

13 (2) by striking ‘‘MANDATORY INVESTIGA14 TIONS.—The President’’ and inserting ‘‘MANDATORY

15 INVESTIGATIONS.— 

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

17 (3) by striking ‘‘that could affect the national 

18 security of the United States’’ at the end of the 1st 

19 sentence; 

20 (4) by inserting after the 1st sentence the fol21 lowing new paragraph: 

22 ‘‘(2) PURPOSE OF INVESTIGATION.—The pur23 pose of a mandatory investigation under this section 

24 shall be to determine whether the merger, acquisi25 tion, or takeover referred to in paragraph (1) could 

26 affect the national security of the United States.’’; 


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1 (5) by striking ‘‘Such investigation shall—’’ 

2 and inserting the following: 

3 ‘‘(3) TIMING OF INVESTIGATION.—Subject to 

4 paragraph (4), a mandatory investigation under this 

5 section shall—’’; and 

6 (6) by adding at the end the following new 

7 paragraph: 

8 ‘‘(4) NOTICE AND WAIT REQUIREMENTS.— 

9 ‘‘(A) NOTICE TO THE CONGRESS.— 

10 ‘‘(i) IN GENERAL.—Within 5 days 

11 after initiating a mandatory investigation 

12 under paragraph (1), the President or the 

13 President’s designee shall transmit a notice 

14 of the transaction being investigated to 

15 each House of the Congress. 

16 ‘‘(ii) DISTRIBUTION.—Any notice re17 ceived under clause (i) shall be promptly 

18 transmitted to the appropriate committees 

19 of the House of Representatives and the 

20 Senate, including the Permanent Select 

21 Committee on Intelligence, the Committee 

22 on Homeland Security, and the Committee 

23 on Financial Services of the House of Rep24 resentatives and the Select Committee on 

25 Intelligence, the Committee on Homeland 


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1 Security and Governmental Affairs, and 

2 the Committee on Banking, Housing, and 

3 Urban Affairs of the Senate. 

4 ‘‘(iii) CONTENTS OF NOTICE.—The 

5 notice shall include such details of the 

6 transaction as will enable committees of 

7 the House of Representatives and the Sen8 ate to deliberate on the transaction. 

9 ‘‘(B) DELAYED PERIOD FOR ACTION.— 

10 The President shall not make a determination 

11 to take action or not take action under sub12 section (d) with respect to a transaction for 

13 which notice to the Congress is required under 

14 subparagraph (A), other than to suspend the 

15 proposed transaction pending the outcome of 

16 the investigation, until 14 days after such no17 tice is transmitted to the Congress in accord18 ance with such subparagraph. 

19 ‘‘(C) CONSIDERATION OF CONGRESSIONAL

20 RESPONSE.—Any comments on the transaction 

21 provided by any committee of the House of 

22 Representatives or the Senate to which a notice 

23 was transmitted under subparagraph (A) shall 

24 be considered and taken into account by the 


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1 President in making any determination under 

2 this section.’’. 

Æ 


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