spect to the merger, acquisition, or takeover, as the 
case may be. 
‘‘(2) ACTION
PURSUANT
TO
JOINT
RESOLU-
TION.—If, not later than 45 days after the date on 
which the Congress receives the report referred to in 
paragraph (1), a joint resolution described in para-
graph (3) is enacted into law, then the President 
shall take such action under subsection (d) of this 
section as is necessary to prohibit the merger, acqui-
sition, or takeover which is the subject of the inves-
tigation, including, if the merger, acquisition, or 
takeover, as the case may be, has been completed, 
directing the Attorney General to seek divestment or 
other appropriate relief in the district courts of the 
United States. 
‘‘(3) JOINT
RESOLUTION
DESCRIBED.—For 
purposes of paragraph (2), the term ‘joint resolu-
tion’ means a joint resolution of the Congress, the 
sole matter after the resolving clause of which is as 
follows: ‘That the Congress disapproves the decision 
of the President contained in the report transmitted 
to the Congress pursuant to section 721(g)(1) of the 
Defense 
Production 
Act 
of 
1950 
on 
lllllllll.’, with the blank space being 
filled with the appropriate date. 
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‘‘(4) COMPUTATION
OF
REVIEW
PERIOD.—In 
computing the 45-day period referred to in para-
graph (2), there shall be excluded any day described 
in section 154(b) of the Trade Act of 1974 (19 
U.S.C. 2194(b)).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) apply with respect to investigations com-
menced under section 721(b)(1)(A)(ii) of the Defense Pro-
duction Act of 1950 (as added by section 3(a)(1)(D) of 
this Act) on or after the date of the enactment of this 
Act. 
SEC. 5. ANNUAL REPORT. 
(a) AMENDMENTS.—Subsection (h) of section 721 of 
the Defense Production Act of 1950 (50 U.S.C. App. 
2170(g)), as redesignated by section 2(a)(1) of this Act, 
is amended— 
(1) in the heading, by striking ‘‘REPORT’’ and 
inserting ‘‘REPORTS’’; 
(2) by striking ‘‘The President’’ and inserting 
the following: 
‘‘(1) REPORT ON PRESIDENTIAL ACTION.—The 
President’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) ANNUAL REPORT.— 
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‘‘(A) IN GENERAL.—The President or the 
President’s designee shall transmit to the ap-
propriate congressional committees an annual 
report that contains— 
‘‘(i) a description of each written noti-
fication of a proposed or pending merger, 
acquisition, or takeover received pursuant 
to this section during the preceding year, 
including, with respect to each such writ-
ten notification involving a merger, acquisi-
tion, or takeover described in subsection 
(b)(1)(A)(ii), an analysis of the corporate 
structure of the entity controlled by or act-
ing on behalf of a foreign government, in-
cluding whether or not the entity is a pub-
licly-traded corporation, and an identifica-
tion of the majority shareholder or share-
holders; and 
‘‘(ii) a description of the determina-
tion to undertake or not undertake an in-
vestigation of the merger, acquisition, or 
takeover referred to in clause (i) and the 
reasons therefor. 
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‘‘(B) DEFINITION.—In this paragraph, the 
term ‘appropriate congressional committees’ 
means— 
‘‘(i) the Committee on Homeland Se-
curity and the Permanent Select Com-
mittee on Intelligence of the House of Rep-
resentatives; and 
‘‘(ii) the Committee on Homeland Se-
curity and Governmental Affairs and the 
Select Committee on Intelligence of the 
Senate.’’. 
(b) EFFECTIVE DATE.—The report required to be 
transmitted to Congress under section 721(h)(2) of the 
Defense Production Act of 1950 (as added by subsection 
(a) of this section) shall be transmitted beginning in 2007 
and each subsequent calendar year. 
SEC. 6. TECHNICAL AMENDMENTS. 
Section 721 of the Defense Production Act of 1950 
(50 U.S.C. App. 2170), as amended by this Act, is further 
amended— 
(1) in subsection (d), by striking ‘‘Subject to 
subsection (d)’’ and inserting ‘‘Subject to subsection 
(e)’’; 
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(2) in subsection (e), by striking ‘‘the authority 
conferred by subsection (c)’’ and inserting ‘‘the au-
thority conferred by subsection (d)’’; and 
(3) in subsection (h)(1) (as redesignated by sec-
tion 2(a)(1) and further amended by section 3(a)(2) 
of this Act), by striking ‘‘subsection (c) of this Act’’ 
and inserting ‘‘subsection (c) of this section’’. 
SEC. 7. VERIFICATION OF SECURITY MEASURES UNDER 
THE 
CUSTOMS-TRADE 
PARTNERSHIP 
AGAINST 
TERRORISM 
(C–TPAT) 
PROGRAM 
AND THE FREE AND SECURE TRADE (FAST) 
PROGRAM. 
(a) GENERAL VERIFICATION.—Not later than one 
year after the date of the enactment of this Act, and on 
a biannual basis thereafter, the Commissioner of the Bu-
reau of Customs and Border Protection of the Department 
of Homeland Security shall verify on-site the security 
measures of each individual and entity that is partici-
pating in the Customs-Trade Partnership Against Ter-
rorism (C–TPAT) program and the Free And Secure 
Trade (FAST) program. 
(b) POLICIES FOR NONCOMPLIANCE WITH C–TPAT 
PROGRAM REQUIREMENTS.—The Commissioner shall es-
tablish policies for non-compliance with the requirements 
of the C–TPAT program by individuals and entities par-
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ticipating in the program, including probation or expulsion 
from the program, as appropriate. 
Æ 
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