I 
109TH CONGRESS 
2D SESSION 
H. R. 4881 
To promote the national defense by establishing requirements for the owner-
ship, management, and operation of critical infrastructure in the United 
States, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 7, 2006 
Mr. HUNTER (for himself, Mr. SAXTON, Mr. SKELTON, Mr. DAVIS of Ken-
tucky, Mrs. JO ANN DAVIS of Virginia, Mr. JONES of North Carolina, 
Mr. LOBIONDO, Mr. MILLER of Florida, Mr. SMITH of New Jersey, Mr. 
POE, Mr. BACHUS, Mr. HEFLEY, Mr. NEY, Mr. TURNER, and Mr. DUN-
CAN) introduced the following bill; which was referred to the Committee 
on Financial Services, and in addition to the Committees on Armed Serv-
ices, Energy and Commerce, International Relations, and Homeland Se-
curity, 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 promote the national defense by establishing requirements 
for the ownership, management, and operation of critical 
infrastructure in the United States, and for other pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘National Defense Crit-
ical Infrastructure Protection Act of 2006’’. 
SEC. 2. CITIZENSHIP AND OTHER REQUIREMENTS FOR 
OWNERSHIP, MANAGEMENT, AND OPERATION 
OF UNITED STATES CRITICAL INFRASTRUC-
TURE. 
(a) LIMITATION ON CORPORATE OWNERSHIP AND 
MANAGEMENT AND OPERATION.—A corporation may not 
own, or be authorized (by contract or otherwise) to man-
age or operate, any system or asset that is included on 
the national defense critical infrastructure list unless the 
corporation meets the critical infrastructure national secu-
rity management requirements. 
(b) CRITICAL INFRASTRUCTURE NATIONAL SECU-
RITY
MANAGEMENT
REQUIREMENTS.—A corporation 
meets the critical infrastructure national security manage-
ment requirements for purposes of subsection (a) only if 
each of the following applies to the corporation: 
(1) The corporation is organized under the laws 
of the United States. 
(2) The corporation has a board of directors the 
majority of whom are citizens of the United States. 
(3) The corporation has a chief executive officer 
and chairman of the board of directors who are citi-
zens of the United States. 
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(4) A majority of the voting shares of the cor-
poration, and a majority of nonvoting shares of the 
corporation, are owned by citizens of the United 
States. 
(5) More than 50 percent of the members of 
the board of directors of the corporation have been 
approved by the Secretary of Defense, in consulta-
tion with the Secretary of Homeland Security, for 
membership on the board. 
(6) Not less than 20 percent of the members of 
the board of directors are independent directors. 
(7) All of the independent directors have been 
approved by the Secretary of Defense, in consulta-
tion with the Secretary of Homeland Security, for 
membership on the board. 
(8) The board of directors has a government se-
curity committee, all of whose members are ap-
proved by the Secretary of Defense, in consultation 
with the Secretary of Homeland Security, for mem-
bership on the committee. 
(9) The board of directors has a compensation 
committee that— 
(A) is comprised of citizens of the United 
States; and 
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(B) includes the independent directors ap-
proved under paragraph (7). 
(10) The corporation has agreed to allow, and 
has instituted procedures to authorize, the Secretary 
of Defense, in consultation with the Secretary of 
Homeland Security, to annually inspect the proce-
dures of the corporation for handling classified infor-
mation and, based on such an annual inspection, the 
procedures of the corporation for handling classified 
information have been approved by the Secretary of 
Defense. 
In the case of a corporation that as of the effective date 
of subsection (a) owns, or is authorized by contract (or 
otherwise) to manage or operate, a system or asset that 
is included on the national defense critical infrastructure 
list, the provisions of paragraph (4) of this subsection take 
effect with respect to that corporation as of the date that 
is five years after the date of the enactment of this Act. 
(c) NOTIFICATION REQUIREMENTS.—Any corpora-
tion that has met the requirements of subsection (b) and 
that owns, or manages or operates, a system or asset on 
the national defense critical infrastructure list shall 
promptly submit notice to the Secretary in the event any 
of the following occurs: 
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(1) Acquisition of ownership or beneficial own-
ership, direct or indirect, of five percent or more of 
the corporation’s voting securities by a foreign per-
son. 
(2) Acquisition of ownership or beneficial own-
ership, direct or indirect, of 25 percent or more of 
any class of the corporation’s nonvoting securities by 
a foreign person. 
(3) Authority or ability of a foreign person to 
have power, direct or indirect, to control the election, 
appointment, or tenure of directors, officers, or exec-
utive personnel of the corporation and the power to 
control other decisions or activities of the corpora-
tion. 
(4) Total revenues or net income in excess of 
five percent from a single foreign person or in excess 
of 30 percent from foreign persons in the aggregate 
in any fiscal year of the corporation. 
(5) Ten percent or more of any class of the cor-
poration’s voting securities held in ‘‘nominee 
shares’’, ‘‘street names’’, or in some other method 
that does not disclose the beneficial owner of equi-
table title. 
(6) Interlocking directors with foreign persons 
and any officer or management official of the appli-
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