I 

109TH CONGRESS 

2D SESSION H. R. 4842 

To ensure the security of United States ports, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 1, 2006 

Ms. WASSERMAN SCHULTZ (for herself, Mr. POE, Mr. CLYBURN, Mr. 

PALLONE, Mr. NADLER, and Mr. MCNULTY) 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 ensure the security of United States ports, 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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Port Security Act of 

5 2006’’. 


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1 SEC. 2. PROHIBITION ON LEASES OF REAL PROPERTY AND 

2 FACILITIES AT UNITED STATES PORTS BY 

3 FOREIGN GOVERNMENT-OWNED ENTITIES. 

4 (a) IN GENERAL.—Section 271(d) of the Defense 

5 Production Act of 1950 (50 U.S.C. App. 2170(d)) is 

6 amended— 

7 (1) by striking ‘‘Subject to subsection (d)’’ and 

8 inserting the following: 

9 ‘‘(1) IN GENERAL.—Subject to subsection (e)’’; 

10 and 

11 (2) by adding at the end the following new 

12 paragraph: 

13 ‘‘(2) PROHIBITION ON LEASES OF REAL PROP14 ERTY AND FACILITIES AT UNITED STATES PORTS BY

15 FOREIGN GOVERNMENT-OWNED ENTITIES.—The 

16 President shall prohibit any merger, acquisition, or 

17 takeover described in subsection (a)(1) that will re18 sult in any entity that is owned or controlled by a 

19 foreign government leasing, operating, managing, or 

20 owning real property or facilities at a United States 

21 port.’’. 

22 (b) REPORT REQUIRED.— 

23 (1) IN GENERAL.—Not later than 30 days after 

24 the date of the enactment of this Act, the President 

25 shall submit to Congress a report on the leasing, op26 erating, managing, or owning real property or faciliVerDate Aug 31 2005 02:18 Mar 03, 2006 Jkt 049196 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4842.IH H4842

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1 ties at United States ports by entities that are 

2 owned or controlled by foreign governments. 

3 (2) CONTENT.—The report required under 

4 paragraph (1) shall include— 

5 (A) a list of all entities that are owned or 

6 controlled by foreign governments that are leas7 ing, operating, managing, or owning real prop8 erty or facilities at United States ports; 

9 (B) an assessment of the national security 

10 threat posed by such activities; and 

11 (C) recommendations for any legislation in 

12 response to such threat. 

13 SEC. 3. INCREASED TRANSPARENCY OF MANDATORY IN14 VESTIGATIONS. 

15 Section 271(b) of the Defense Production Act of 

16 1950 (50 U.S.C. App. 2170(b)) is amended— 

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

18 subparagraphs (A) and (B), respectively; 

19 (2) by striking ‘‘The President’’ and inserting 

20 the following: 

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

22 (3) by adding at the end the following new 

23 paragraphs: 

24 ‘‘(2) NOTIFICATION TO CONGRESS.—Not later 

25 than one day after commencing an investigation 


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1 under paragraph (1), the President shall provide no2 tice of the investigation and relevant information re3 garding the proposed merger, acquisition, or take4 over, including relevant ownership records to— 

5 ‘‘(A) the Majority Leader and Minority 

6 Leader of the Senate; 

7 ‘‘(B) the Speaker and Minority Leader of 

8 the House of Representatives; 

9 ‘‘(C) the Chairmen and Ranking Members 

10 of the Committee on Finance, the Committee 

11 on Homeland Security and Government Affairs, 

12 the Committee on Banking, Housing, and 

13 Urban Affairs, the Committee on Armed Serv14 ices, and the Select Committee on Intelligence 

15 of the Senate; 

16 ‘‘(D) the Chairmen and Ranking Members 

17 of the Committee on Ways and Means, the 

18 Committee on Homeland Security, the Com19 mittee on Financial Services, the Committee on 

20 Armed Services, and the Permanent Select 

21 Committee on Intelligence of the House of Rep22 resentatives; and 

23 ‘‘(E) the Members of Congress rep24 resenting the States and districts affected by 

25 the proposed transaction. 


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1 ‘‘(3) NOTIFICATION TO PUBLIC OFFICIALS OF

2 INVESTIGATIONS OF PROPOSED TRANSACTIONS AF3 FECTING UNITED STATES PORTS.—In the case of an 

4 investigation under paragraph (1) of a proposed 

5 merger, acquisition, or takeover that will result in 

6 any entity that is owned or controlled by a foreign 

7 government leasing, operating, managing, or owning 

8 real property or facilities at a United States port, 

9 the President shall, not later than one day after 

10 commencing an investigation under paragraph (1), 

11 notify the Governors and heads of relevant govern12 ment agencies of the States in which such ports are 

13 located and provide to such Governors and relevant 

14 agency heads information regarding the proposed 

15 merger, acquisition, or takeover, including relevant 

16 ownership records. 

17 ‘‘(4) PUBLIC COMMENTS.— 

18 ‘‘(A) SOLICITATION OF PUBLIC COM19 MENTS.—Not later than 7 days after com20 mencing an investigation under paragraph (1), 

21 the President shall publish in the Federal Reg22 ister a description of the proposed merger, ac23 quisition, or takeover, including a solicitation 

24 for public comments on such proposed merger, 

25 acquisition, or takeover. 


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1 ‘‘(B) SUMMARY OF PUBLIC COMMENTS.— 

2 Not later than 10 days prior to the completion 

3 of an investigation under paragraph (1), the 

4 President shall publish in the Federal Register 

5 a summary of the public comments received 

6 pursuant to subparagraph (A).’’. 

7 SEC. 4. TECHNICAL CORRECTION. 

8 Section 271(e) of the Defense Production Act of 1950 

9 (50 U.S.C. App. 2170(e)) is amended by striking ‘‘sub10 section (c)’’ and inserting ‘‘subsection (d)’’. 

11 SEC. 5. EFFECTIVE DATE. 

12 The amendments made by this Act shall apply to any 

13 merger, acquisition, or takeover considered on or after Oc14 tober 1, 2005 under section 271 of the Defense Produc15 tion Act of 1950 (50 U.S.C. App. 2170). 

Æ 


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