I 
109TH CONGRESS 
2D SESSION 
H. R. 4814 
To amend section 721 of the Defense Production Act of 1950 to suspend 
all proposed mergers, acquisitions, or takeovers by foreign persons until 
certain determinations are made. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 28, 2006 
Mr. GARRETT of New Jersey introduced the following bill; which was referred 
to the Committee on Financial Services, and in addition to the Commit-
tees on Energy and Commerce and International Relations, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To amend section 721 of the Defense Production Act of 
1950 to suspend all proposed mergers, acquisitions, or 
takeovers by foreign persons until certain determinations 
are made. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Safe and Accountable 
Foreign Enterprises Proving Other Requirements To Se-
cure (SAFE PORTS) Act’’. 
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SEC. 2. MODIFICATION OF PROCEDURES FOR PROPOSED 
MERGERS, ACQUISITIONS, OR TAKEOVERS BY 
FOREIGN PERSONS. 
(a) SUSPENSION OF MERGERS, ACQUISITIONS, AND 
TAKEOVERS.—Section 721(a) of the Defense Production 
Act of 1950 (50 U.S.C. App. 2170(a) is amended— 
(1) by striking— 
‘‘(a) INVESTIGATIONS.—The President’’ and insert-
ing 
‘‘(a) INVESTIGATIONS.— 
‘‘(1) IN GENERAL.—The President’’; and 
(2) by adding at the end the following: 
‘‘(2) REQUIRED
DETERMINATIONS.—No pro-
posed or pending merger, acquisition, or takeover to 
which paragraph (1) applies may become effective 
unless approved by the President or the President’s 
designee, and no such merger, acquisition, or take-
over may be so approved unless the President has 
determined that— 
‘‘(A) there is no credible evidence that 
leads the President to believe that the foreign 
interest that would exercise control of persons 
engaged in interstate commerce in the United 
States might take action that would threaten to 
impair the national security of the United 
States; and 
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‘‘(B) provisions of law other than this sec-
tion and the International Emergency Economic 
Powers Act (50 U.S.C. 1701–1706) provide 
adequate and appropriate authority for the 
President to protect the national security with 
respect to the proposed merger, acquisition, or 
takeover. 
‘‘(3) REQUIRED INVESTIGATION.—If the Presi-
dent is unable to make the determination required 
under paragraph (2) with respect to a merger, ac-
quisition, or takeover, then an investigation shall be 
made under subsection (b) with respect to that 
merger, acquisition, or takeover. 
‘‘(4) JUDICIAL REVIEW.—Any determination of 
the President under paragraph (2) is not subject to 
judicial review.’’. 
(b) CONFORMING AMENDMENTS.—Section 721 of the 
Defense Production Act of 1950 is amended— 
(1) in subsection (d), by striking ‘‘Subject to 
subsection (d), the’’ and inserting ‘‘The’’; 
(2) by striking subsection (e) and redesignating 
subsections (f) through (k) as subsections (e) 
through (j), respectively; and 
(3) in subsection (f), as redesignated— 
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(A) in the heading, by striking ‘‘REPORT’’ 
and inserting ‘‘REPORTS’’; 
(B) by striking ‘‘The President’’ and in-
serting— 
‘‘(1) REPORTS OF ACTIONS TAKEN.—The Presi-
dent’’; 
(C) by striking ‘‘findings made under sub-
section (e) and the factors considered under 
subsection (f)’’ and inserting ‘‘the factors con-
sidered under subsection (e)’’; and 
(D) by adding at the end the following: 
‘‘(2) QUARTERLY REPORTS.— 
‘‘(A) REPORTS.—Not later than the 30 
days after the end of each calendar quarter, the 
President shall transmit to the Congress a re-
port on the actions taken under subsection (a) 
during that calendar quarter on all proposed 
mergers, acquisitions, and takeovers. 
‘‘(B) DEFINITION.—In this paragraph, the 
term ‘calendar quarter’ means the 3-month pe-
riod beginning on January 1, April 1, July 1, 
and October 1 of each year.’’. 
Æ 
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