cant company who is also employed by a foreign per-
son. 
(7) Any other factor that indicates or dem-
onstrates a capability on the part of foreign persons 
to control or influence the operations or manage-
ment of the corporation. 
(8) Acquisition by the corporation of ownership 
of 10 percent or more of any foreign interest. 
(d) NATIONAL DEFENSE CRITICAL INFRASTRUC-
TURE LIST.— 
(1) IN GENERAL.—For purposes of this section, 
the Secretary of Defense, in consultation with the 
Secretary of Homeland Security, shall prepare and 
maintain a list, to be known as the ‘‘national defense 
critical infrastructure list’’, of critical infrastructure 
in the United States. The list shall include both mili-
tary installations and non-military installations. 
(2) SUBMISSION TO CONGRESSIONAL COMMIT-
TEES.—Whenever the national defense critical infra-
structure list is revised, the Secretary of Defense 
shall, not later than 15 days after the date of the 
revision, submit notice of the revision in writing to 
the following: 
(A) The Committee on Armed Services of 
the Senate. 
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(B) The Committee on Armed Services of 
the House of Representatives. 
(3) CRITICAL INFRASTRUCTURE DEFINED.—In 
this section, the term ‘‘critical infrastructure’’ means 
any system or asset, whether physical or virtual, 
that is so vital to the United States that the inca-
pacity or destruction of such system or asset would 
have a debilitating effect on national security, on na-
tional economic security, on national public health or 
safety, or on any combination of those matters. 
(e) CITIZEN OF THE UNITED STATES DEFINED.— 
In this section: 
(1) CITIZEN
OF
THE
UNITED
STATES.—The 
term ‘‘citizen of the United States’’ includes— 
(A) a person that is a citizen of the United 
States under section 2 of the Shipping Act, 
1916 (46 U.S.C. App. 802); and 
(B) a United States citizen trust. 
(2) UNITED STATES CITIZEN TRUST.— 
(A) Subject to subparagraph (C), the term 
‘‘United States citizen trust’’ means a trust 
that is qualified under this paragraph. 
(B) A trust is qualified under this para-
graph with respect to critical infrastructure 
only if— 
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(i) each of the trustees is a citizen of 
the United States; and 
(ii) the trust submits to the Secretary 
of Defense an affidavit of each trustee 
stating that the trustee is not aware of any 
reason involving a beneficiary of the trust 
that is not a citizen of the United States, 
or involving any other person that is not a 
citizen of the United States, as a result of 
which the beneficiary or other person 
would hold more than 25 percent of the 
aggregate power to influence or limit the 
exercise of the authority of the trustee with 
respect to matters involving any ownership 
or operation of the critical infrastructure 
that may adversely affect the interests of 
the United States. 
(C) If any person that is not a citizen of 
the United States has authority to direct or 
participate in directing a trustee for a trust in 
matters involving any ownership or operation of 
the critical infrastructure that may adversely 
affect the interests of the United States or in 
removing a trustee for a trust without cause, ei-
ther directly or indirectly through the control of 
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another person, the trust is not qualified under 
this paragraph unless the trust instrument pro-
vides that persons who are not citizens of the 
United States may not hold more than 25 per-
cent of the aggregate authority to so direct or 
remove a trustee. 
(D) This paragraph shall not be considered 
to prohibit a person who is not a citizen of the 
United States from holding more than 25 per-
cent of the beneficial interest in a trust. 
(f) EFFECTIVE DATES.— 
(1) IN GENERAL.—Subsection (a) shall take ef-
fect on the date on which the national defense crit-
ical infrastructure list is submitted to Congress pur-
suant to paragraph (2) and shall apply to any cor-
poration covered by that subsection as of that date 
or thereafter. 
(2) NATIONAL
DEFENSE
CRITICAL
INFRA-
STRUCTURE LIST.—The national defense critical in-
frastructure list required by subsection (c) shall be 
established, and the initial list under that subsection 
shall be submitted in writing to the Congress, not 
later than three months after the date of the enact-
ment of this Act. 
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(g) SPECIAL RULE
FOR CERTAIN PORT TERMI-
NALS.— 
(1) SPECIAL RULE.—The port terminals speci-
fied in paragraph (2) are deemed to be on the na-
tional defense critical infrastructure list, and the 
provisions of subsection (a) apply with respect to 
those terminals effective as of February 28, 2006. 
(2) SPECIFIED
PORT
TERMINALS.—The port 
terminals specified in this paragraph are the fol-
lowing: 
(A) The terminals that as of February 28, 
2006, were operated by the United Kingdom 
company, Peninsular and Oriental Steam Navi-
gation Company (P & O), at the following 
United States ports: 
(i) Baltimore, Maryland. 
(ii) Philadelphia, Pennsylvania. 
(iii) Miami, Florida. 
(iv) New Orleans, Louisiana. 
(v) Houston, Texas. 
(vi) Newark and Elizabeth, New Jer-
sey. 
(B) Any terminal at a port in the United 
States other than a port listed in subparagraph 
(A) that as of February 28, 2006, was operated 
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in part, or with the contribution of, the com-
pany named in subparagraph (A). 
SEC. 3. ENHANCED AUTHORITY TO REVIEW CERTAIN FOR-
EIGN MERGERS, ACQUISITIONS, AND TAKE-
OVERS. 
(a) CONFIDENTIALITY
OF
INFORMATION.—Sub-
section (c) of section 721 of the Defense Production Act 
of 1950 (50 U.S.C. App. 2170(c)) is amended— 
(1) by inserting ‘‘during the process of inves-
tigation’’ after ‘‘prevent disclosure’’; and 
(2) by inserting ‘‘of any information considered 
during the process of investigation’’ before the pe-
riod at the end. 
(b) FINDINGS OF THE PRESIDENT.—Subsection (e) 
of such section (50 U.S.C. App. 2170(e)) is amended— 
(1) in the matter preceding paragraph (1)— 
(A) by striking ‘‘may’’ and inserting 
‘‘shall’’; 
(B) by striking ‘‘subsection (c)’’ and in-
serting ‘‘subsection (d)’’; and 
(C) by striking ‘‘only’’; and 
(2) by striking paragraph (1) and inserting the 
following: 
‘‘(1) there is either— 
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‘‘(A) credible evidence that leads the Presi-
dent to believe that the foreign interest exer-
cising control might take action that threatens 
to impair the national security; or 
‘‘(B) a reasonable expectation that the for-
eign interest exercising control would use such 
control— 
‘‘(i) to adversely affect the ability of 
domestic industries to meet existing pro-
duction requirements for defense or home-
land security; 
‘‘(ii) to acquire advanced technology 
illicitly; or 
‘‘(iii) to increase its ability to affect 
United States critical infrastructure; and’’. 
(c) FACTORS TO BE CONSIDERED.—Subsection (f) of 
such section (50 U.S.C. App. 2170(f)) is amended— 
(1) in the matter preceding paragraph (1)— 
(A) by striking ‘‘may’’ and inserting 
‘‘shall’’; and 
(B) by striking ‘‘factors—’’ and inserting 
‘‘factors the following:’’; 
(2) by capitalizing the first letter of the first 
word of paragraphs (1), (2), (3), (4), and (5); 
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(3) at the end of paragraphs (1), (2), and (3), 
by striking the comma and inserting a period; 
(4) at the end of paragraph (4), by striking ‘‘; 
and’’ and inserting a period; 
(5) by redesignating paragraph (5) as para-
graph (8); and 
(6) by inserting after paragraph (4) the fol-
lowing new paragraphs: 
‘‘(5) Domestic production needed to meet the 
needs of homeland security. 
‘‘(6) The potential effects of the proposed or 
pending transaction on control of critical infrastruc-
ture, such as energy, telecommunications, transpor-
tation, or information. 
‘‘(7) The potential effects of the proposed or 
pending transaction on secure United States access 
to strategic natural resources, including energy sup-
plies and critical minerals.’’. 
(d) NOTIFICATION TO GOVERNMENT.— 
(1) REQUIRED NOTICE OF PROPOSED OR PEND-
ING TRANSACTIONS.—Such section is further amend-
ed— 
(A) by redesignating subsections (g), (h), 
(i), (j), and (k) as subsections (h), (i), (j), (k), 
and (l), respectively; and 
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(B) by inserting after subsection (f) the 
following new subsection: 
‘‘(g) NOTIFICATION TO GOVERNMENT.— 
‘‘(1) REQUIRED NOTICE.—The President shall 
provide for the regulations issued pursuant to this 
section to require that, in any case in which there 
is a proposed or pending merger, acquisition, or 
takeover that is or may be subject to an investiga-
tion under subsection (a), the President or the 
President’s designee shall be provided written notifi-
cation of the proposed or pending merger, acquisi-
tion, or takeover, as referred to in the second sen-
tence of subsection (a), and that such written notifi-
cation shall be provided in sufficient time for the re-
view process under this section to be completed be-
fore the proposed or pending merger, acquisition, or 
takeover is finalized. 
‘‘(2) PUBLICATION
IN
FEDERAL
REGISTER.— 
Any notification pursuant to paragraph (1) shall be 
published in the Federal Register within five days of 
such notification.’’. 
(2) INTERIM
RULES.—The President or the 
President’s designee may prescribe interim rules 
necessary to carry out the responsibilities under sub-
section (g) of section 721 of the Defense Production 
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Act of 1950 as added by paragraph (1)(B). Any oth-
erwise applicable notice-and-comment requirement of 
section 553 of title 5, United States Code, shall not 
apply to such interim rules. Interim rules prescribed 
under the authority of this subsection that are not 
earlier superceded by final rules shall expire as spec-
ified in such interim rules, but not later than the 
end of the one-year period beginning on the the date 
of the enactment of this Act. 
(e) ANNUAL REPORT.—Subsection (l) of such sec-
tion, as redesignated by subsection (d)(1), is amended— 
(1) in the subsection heading, by striking 
‘‘QUADRENNIAL REPORT.—’’ and inserting ‘‘AN-
NUAL REPORT.—’’; and 
(2) in paragraph (1), by striking ‘‘not later 
than 1 year’’ and all that follows through ‘‘every 4 
years thereafter’’ and inserting ‘‘not later than No-
vember 1 each year’’. 
(f) TECHNICAL AMENDMENTS.—Such section is fur-
ther amended— 
(1) in subsections (a) and (d), by striking ‘‘the 
date of enactment of this section’’ and inserting 
‘‘August 23, 1988’’; 
(2) in subsection (d), by striking ‘‘subsection 
(d)’’ and inserting ‘‘subsection (e)’’; and 
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(3) in the last sentence of subsection (h), as re-
designated by subsection (d)(1), by striking ‘‘of this 
Act’’. 
(g) EFFECTIVE DATES.— 
(1) APPLICABILITY TO NEW INVESTIGATIONS.— 
The amendments made by this section shall apply 
with respect to any investigation under section 721 
of the Defense Production Act of 1950 (50 U.S.C. 
App. 2170) that is commenced after the date of the 
enactment of this Act. 
(2) TIME LIMIT FOR REQUIRED NEW REGULA-
TIONS.—Regulations required by subsection (g) of 
such section, as added by the amendment made by 
subsection (d)(1)(B), shall be prescribed not later 
than the end of the one-year period beginning on the 
date of the enactment of this Act. 
SEC. 4. MANDATORY INSPECTION OF CARGO. 
(a) MANDATORY INSPECTIONS.—No cargo trans-
ported by a commercial motor vehicle may enter the 
United States from Canada or Mexico, and no cargo trans-
ported by vessel may be unloaded in the United States, 
unless an appropriate officer or employee of the Direc-
torate of Border and Transportation Security or other ap-
propriate officer or employee of the United States has in-
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spected the cargo to ensure that it complies with the laws 
of the United States. 
(b) DEFINITIONS.—In this section: 
(1) CARGO.—The term ‘‘cargo’’ means prop-
erty, or mail, or both. 
(2) COMMERCIAL MOTOR VEHICLE.—The term 
‘‘commercial motor vehicle’’ means a commercial 
motor vehicle as defined in section 31101(1) of title 
49, United States Code, that is used principally to 
transport cargo. 
(3) UNITED
STATES; 
VESSEL.—The terms 
‘‘United States’’ and ‘‘vessel’’ have the meanings 
given those terms in section 401 of the Tariff Act 
of 1930 (19 U.S.C. 1401). 
(c) EFFECTIVE DATE.—This section shall take effect 
6 months after the date of the enactment of this Act. 
Æ 
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