II 

110TH CONGRESS 

1ST SESSION S. 1404 

To provide for Congressional authority with respect to certain acquisitions, 

mergers, and takeovers under the Defense Production Act of 1950. 

IN THE SENATE OF THE UNITED STATES 

MAY 15, 2007 

Mr. INHOFE introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To provide for Congressional authority with respect to certain acquisitions, mergers, and takeovers under the Defense Production Act of 1950. 

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 Security Act of 2007’’. 

6 SEC. 2. CONGRESSIONAL AUTHORITY UNDER DEFENSE 

7 PRODUCTION ACT. 

8 Section 721 of the Defense Production Act of 1950 

9 (50 U.S.C. App. 2170) is amended— 

10 (1) in subsection (a)— 

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1 (A) by striking ‘‘30’’ and inserting ‘‘60’’; 

2 and 

3 (B) by adding at the end the following: 

4 ‘‘The findings and recommendations of any 

5 such investigation shall be sent immediately to 

6 the President and to the Committee on Bank7 ing, Housing, and Urban Affairs of the Senate 

8 and the Committee on Financial Services of the 

9 House of Representatives for review.’’; 

10 (2) in subsection (b)— 

11 (A) by inserting before the first period ‘‘, 

12 or in such instance at the request of the chair13 man and ranking member of the Committee on 

14 Banking, Housing, and Urban Affairs of the 

15 Senate or the Committee on Financial Services 

16 of the House of Representatives’’; 

17 (B) in paragraph (2), by inserting before 

18 the period ‘‘, and the findings and recommenda19 tions of such investigation shall be sent imme20 diately to the President and to the Committee 

21 on Banking, Housing, and Urban Affairs of the 

22 Senate and the Committee on Financial Serv23 ices of the House of Representatives for re24 view’’; and 

25 (C) by striking ‘‘30’’ and inserting ‘‘60’’; 

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1 (3) in subsection (f)— 

2 (A) by striking ‘‘designee may’’ and insert3 ing ‘‘designee shall’’; 

4 (B) in paragraph (4), by striking ‘‘and’’ at 

5 the end; 

6 (C) in paragraph (5), by striking the pe7 riod at the end and inserting ‘‘; and’’; and 

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

9 ‘‘(6) the long-term projections of United States 

10 requirements for sources of energy and other critical 

11 resources and materials and for economic security.’’; 

12 (4) in subsection (g)— 

13 (A) by striking ‘‘The President’’ and in14 serting the following: 

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

16 (B) by adding at the end the following: 

17 ‘‘(2) QUARTERLY SUBMISSIONS.—The Secretary 

18 of the Treasury shall transmit to the Committee on 

19 Banking, Housing, and Urban Affairs of the Senate 

20 and the Committee on Financial Services of the 

21 House of Representatives, on a quarterly basis, a de22 tailed summary and analysis of each merger, acqui23 sition, or takeover that is being reviewed, was re24 viewed during the preceding 90-day period, or is 

25 likely to be reviewed in the coming quarter by the 

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1 President or the President’s designee under sub2 section (a) or (b). Each such summary and analysis 

3 shall be submitted in unclassified form, with classi4 fied annexes as the Secretary determines are re5 quired to protect company proprietary information 

6 and other sensitive information. Each such summary 

7 and analysis shall include an appendix detailing dis8 senting views.’’; and 

9 (5) by adding at the end the following new sub10 sections: 

11 ‘‘(l) CONGRESSIONAL AUTHORITY.— 

12 ‘‘(1) IN GENERAL.—If the President does not 

13 suspend or prohibit an acquisition, merger, or take14 over under subsection (d), the acquisition, merger, 

15 or takeover may not be consummated until 10 legis16 lative days after the President notifies the Congress 

17 of the decision not to suspend or prohibit. If a joint 

18 resolution objecting to the proposed transaction is 

19 introduced in either House of Congress by the chair20 man of one of the appropriate congressional commit21 tees during such 10-legislative-day period, the trans22 action may not be consummated until 30 legislative 

23 days after the date on which such resolution is intro24 duced. 

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1 ‘‘(2) DISAPPROVAL UPON PASSAGE OF RESOLU2 TION.—If a joint resolution introduced under para3 graph (1) is enacted into law, the transaction may 

4 not be consummated. 

5 ‘‘(3) CONSIDERATIONS.—The Committee on 

6 Banking, Housing, and Urban Affairs of the Senate 

7 and the Committee on Financial Services of the 

8 House of Representatives shall review any findings 

9 and recommendations submitted under subsection 

10 (a) or (b), and any joint resolution under paragraph 

11 (1) of this subsection shall be based on the factors 

12 outlined in subsection (f). 

13 ‘‘(4) SENATE PROCEDURE.—Any joint resolu14 tion under paragraph (1) shall be considered in the 

15 Senate in accordance with the provisions of section 

16 601(b) of the International Security Assistance and 

17 Arms Export Control Act of 1976 (Public Law 94– 

18 329, 90 Stat. 765). 

19 ‘‘(5) HOUSE CONSIDERATION.—For the purpose 

20 of expediting the consideration and enactment of a 

21 joint resolution under paragraph (1), a motion to 

22 proceed to the consideration of any such joint resolu23 tion shall be treated as highly privileged in the 

24 House of Representatives. 

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1 ‘‘(m) THOROUGH REVIEW.—The President, or the 

2 President’s designee, shall ensure that an acquisition, 

3 merger, or takeover that is completed prior to a review 

4 or investigation under this section shall be fully reviewed 

5 for national security considerations, even in the event that 

6 a request for such review is withdrawn.’’. 

Æ 

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