To amend the Defense Production Act of 1950 to require notification to Congress after receipt of written notification of proposed or pending mergers, acquisitions, or takeovers subject to investigation under such Act, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protect America First Act of 2006''.

SEC. 2. AMENDMENTS TO THE DEFENSE PRODUCTION ACT OF 1950.

    (a) Notification to Congress.--Section 721(c) of the Defense 
Production Act of 1950 (50 U.S.C. App. 2170(c)) is amended--
            (1) in the heading, by inserting ``Notification 
        Requirements;'' before ``Confidentiality'';
            (2) by inserting after the heading the following new 
        paragraph:
            ``(1) Notification to congress.--
                    ``(A) Receipt of written notification.--Not later 
                than five days after receipt of written notification of 
                a proposed or pending merger, acquisition, or takeover 
                that may be subject to an investigation under 
                subsection (a) or is subject to an investigation under 
                subsection (b), the President or the President's 
                designee shall provide notice of the receipt of such 
                written notification to the Members of Congress 
                specified in subparagraph (D).
                    ``(B) Commencement of investigation.--Not later 
                than one day after commencing an investigation under 
                subsection (a) or (b), the President or the President's 
                designee shall provide notice of the investigation and 
                relevant information regarding the proposed or pending 
                merger, acquisition, or takeover, including relevant 
                ownership records, to the Members of Congress specified 
                in subparagraph (D).
                    ``(C) Access to investigation.--The President or 
                the President's designee shall--
                            ``(i) provide responses in a timely manner 
                        to any inquiries made by the Members of 
                        Congress specified in subparagraph (D) 
                        regarding an investigation carried out under 
                        subsection (a) or (b); and
                            ``(ii) notify such Members of Congress 
                        promptly of the decision of the President or 
                        the President's designee upon completion of the 
                        investigation.
                    ``(D) Members of congress.--The Members of Congress 
                referred to in this paragraph are the following:
                            ``(i) The Speaker and Minority Leader of 
                        the House of Representatives.
                            ``(ii) The Majority and Minority Leader of 
                        the Senate.
                            ``(iii) The Chairmen and Ranking Members of 
                        the Committee on Financial Services, the 
                        Committee on Homeland Security, the Committee 
                        on Armed Services, the Committee on Energy and 
                        Commerce, the Committee on Transportation and 
                        Infrastructure, and the Permanent Select 
                        Committee on Intelligence of the House of 
                        Representatives.
                            ``(iv) The Chairmen and Ranking Members of 
                        the Committee on Finance, the Committee on 
                        Homeland Security and Governmental Affairs, the 
                        Committee on Armed Services, the Committee on 
                        Commerce, Science, and Transportation, and the 
                        Select Committee on Intelligence of the Senate.
                            ``(v) The Senators representing States and 
                        the Members of Congress representing districts 
                        affected by the proposed transaction.'';
            (3) by striking ``Any information'' and inserting the 
        following new paragraph:
            ``(2) Confidentiality of information.--Any information''; 
        and
            (4) by striking ``Nothing in this subsection'' and 
        inserting ``Nothing in this paragraph''.
    (b) Technical Amendments.--Section 721 of the Defense Production 
Act of 1950 (50 U.S.C. App. 2170) is amended--
            (1) in subsection (d), by striking ``subsection (d)'' and 
        inserting ``subsection (e)'';
            (2) in subsection (e), by striking ``subsection (c)'' and 
        inserting ``subsection (d)''; and
            (3) in subsection (g), by striking ``of this Act'' and 
        inserting ``of this section''.
    (c) Effective Date.--The requirements of section 721(c)(1) of the 
Defense Production Act of 1950, as added by subsection (a) of this 
section, apply with respect to any written notification of a proposed 
or pending merger, acquisition, or takeover that may be subject to an 
investigation under section 721(a) of such Act or is subject to an 
investigation under section 721(b) of such Act that is received on or 
after the date of the enactment of this Act.

SEC. 3. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the Committee on Foreign Investment in the United 
        States (CFIUS), established under Executive Order 11858 (40 
        Fed. Reg. 20263), should be transferred from the Department of 
        the Treasury to the Department of Homeland Security; and
            (2) the Secretary of Homeland Security should serve as the 
        Chairman of CFIUS.

Summary: Protect America First Act of 2006 - Amends the Defense Production Act of 1950 to direct the President, no later than five days after receipt of written notification of a proposed or pending corporate merger, acquisition, or takeover by an individual controlled or acting on behalf of a foreign government and which may be subject to an investigation for national security purposes, to notify congressional leadership of the receipt of such notification. Requires the President, no later than one day after commencing such an investigation, to provide such leadership notification of the investigation and relevant information regarding the proposed or pending merger, acquisition, or takeover.

Expresses the sense of Congress that: (1) the Committee on Foreign Investment in the United States (CFIUS) should be transferred from the Department of the Treasury to the Department of Homeland Security (DHS); and (2) the Secretary of Homeland Security should serve as CFIUS Chairman.