Foreign Investment and National Security Act of 2006

Bill: 109-s-3549
Sponsor: Sen. Shelby, Richard C. [R-AL]
Introduced: 2006-06-21 in the Senate
Policy area: Foreign Trade and International Finance
Subjects: Administrative procedure
Armed Forces and National Security
Arms control
Arms control agreements
Arms sales
Civil Rights and Liberties, Minority Issues
Civil actions and liability
Commerce
Congress
Congress and foreign policy
Congressional hearings
Congressional oversight
Corporate mergers
Defense industries
Delegation of powers
Department of the Treasury
Dubai Ports World aftermath legislation
Energy
Energy industries
Energy supplies
Executive reorganization
Export controls
Federal-state relations
Foreign corporations
Foreign investments
Freedom of information
Government Operations and Politics
Government ownership
Governmental investigations
Infrastructure
Infrastructure (Economics)
International Affairs
International competitiveness
Law
Nuclear nonproliferation
Science, Technology, Communications
Technology transfer

Summary:
action_date: 2006-06-21
text: 
Foreign Investment and National Security Act of 2006 - Amends the Defense Production Act to revise provisions concerning presidential authority to review any mergers, acquisitions, or takeovers (transactions) that could result in foreign control of persons engaged in interstate commerce in the United States. Codifies the Committee on Foreign Investment in the United States (CFIUS) as a multi-agency committee, with the Secretary of the Treasury as the chairperson and the Secretary of Defense as the vice chairperson. Directs CFIUS to review any such transaction to determine its effect on national security, and to investigate whether the transaction could result in foreign control of any critical U.S. infrastructure with possible impairment to national security.
 
 Requires CFIUS to provide assessments and classifications of foreign countries for use with its reviews and investigations. Authorizes the President, after a CFIUS review or investigation, to take appropriate action, including suspending or prohibiting a transaction.
 
Requires: (1) notification of certain members of Congress of a proposed or pending transaction that has come under review or investigation; and (2) an annual report from the Secretary of the Treasury to the congressional finance committees with respect to the preservation of the nation's defense production and critical infrastructure.

action_date: 2006-06-21
text: 

(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)

 
Foreign Investment and National Security Act of 2006 - Amends the Defense Production Act of 1950 to revise provisions concerning presidential authority to review any mergers, acquisitions, or takeovers (transactions) that could result in foreign control of persons engaged in interstate commerce in the United States. Codifies the Committee on Foreign Investment in the United States (CFIUS) as a multi-agency committee, with the Secretary of the Treasury as the chairperson and the Secretary of Defense as the vice chairperson. Directs the Committee on Foreign Investment in the United States (CFIUS) to review any proposed or pending transaction to determine its effect on national security. Requires such reviews to be completed within 30 days, with one additional 30-day extension. Directs CFIUS, as part of such review, to investigate whether the transaction would result in foreign control of any critical U.S. infrastructure with possible impairment to national security. Requires CFIUS monitoring of withdrawn transactions.
 
Requires CFIUS to provide assessments and classifications of foreign countries, including their adherence to nonproliferation agreements, treaties, etc., for use with CFIUS reviews and investigations. Authorizes the President, after a CFIUS review or investigation, to take appropriate action, including suspending or prohibiting a transaction which would result in the control of any critical infrastructure or person engaged in interstate commerce in the United States by or with a foreign person or government, so that such control will not threaten to impair the national security. Permits the President to take such actions only upon finding credible evidence that the national security is threatened and other provisions of law do not protect the national interest. Outlines factors to be considered by the President before taking action, including: (1) potential effects on U.S. critical infrastructure or critical technologies; (2) domestic production needed for national defense; and (3) control of domestic industries and commercial activity by foreign persons. 
 
 Provides for the confidentiality of information.
 
Requires notification, by CFIUS, to certain members of Congress of a proposed or pending transaction that has come under review or investigation.
 
Requires an annual report from the Secretary of the Treasury to the congressional finance committees with respect to the preservation of the nation's defense production and critical infrastructure.

action_date: 2006-07-26
text: 
Foreign Investment and National Security Act of 2006 - Amends the Defense Production Act of 1950 to revise provisions concerning presidential authority to review any mergers, acquisitions, or takeovers (transactions) that could result in foreign control of persons engaged in interstate commerce in the United States. Codifies the Committee on Foreign Investment in the United States (CFIUS) as a multi-agency committee, with the Secretary of the Treasury as the chairperson and the Secretary of Defense as the vice chairperson. Directs the Committee on Foreign Investment in the United States (CFIUS) to review any proposed or pending transaction to determine its effect on national security. Requires such reviews to be completed within 30 days, with one additional 30-day extension. Directs CFIUS, as part of such review, to investigate whether the transaction would result in foreign control of any critical U.S. infrastructure with possible impairment to national security. Requires CFIUS monitoring of withdrawn transactions.
 
Requires CFIUS to provide assessments of foreign countries, including their adherence to nonproliferation agreements, treaties, etc., for use with CFIUS reviews and investigations. Authorizes the President, after a CFIUS review or investigation, to take appropriate action, including suspending or prohibiting a transaction which would result in the control of any critical infrastructure or person engaged in interstate commerce in the United States by or with a foreign person or government, so that such control will not threaten to impair the national security. Permits the President to take such actions only upon finding credible evidence that the national security is threatened and other provisions of law do not protect the national interest. Outlines factors to be considered by the President before taking action, including: (1) potential effects on U.S. critical infrastructure or critical technologies; (2) domestic production needed for national defense; and (3) control of domestic industries and commercial activity by foreign persons. 
 
 Provides for the confidentiality of information.
 
Requires notification, by CFIUS, to certain members of Congress of a proposed or pending transaction that has come under review or investigation.
 
Requires an annual report from the Secretary of the Treasury to the congressional finance committees with respect to the preservation of the nation's defense production and critical infrastructure.


Legislative actions:
action_date: 2006-08-01
text: Referred to the Subcommittee on Commerce, Trade and Consumer Protection, for a period to be subsequently determined by the Chairman .
action_date: 2006-07-26
text: Referred to the Committee on Financial Services, and in addition to the Committees on International Relations, and Energy and Commerce, 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.
action_date: 2006-07-26
text: Referred to the Committee on Financial Services, and in addition to the Committees on International Relations, and Energy and Commerce, 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.
action_date: 2006-07-26
text: Referred to the Committee on Financial Services, and in addition to the Committees on International Relations, and Energy and Commerce, 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.
action_date: 2006-07-26
text: Referred to the Committee on Financial Services, and in addition to the Committees on International Relations, and Energy and Commerce, 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.
action_date: 2006-07-26
text: Message on Senate action sent to the House.
action_date: 2006-07-26
text: Received in the House.
action_date: 2006-07-26
text: Passed Senate with an amendment by Unanimous Consent. (text: CR S8318-8321)
action_date: 2006-07-26
text: Passed/agreed to in Senate: Passed Senate with an amendment by Unanimous Consent.(text: CR S8318-8321)
action_date: 2006-07-26
text: Measure laid before Senate by unanimous consent. (consideration: CR S8317-8321)
action_date: 2006-06-21
text: Placed on Senate Legislative Calendar under General Orders. Calendar No. 474.
action_date: 2006-06-21
text: Committee on Banking, Housing, and Urban Affairs. Original measure reported to Senate by Senator Shelby. With written report No. 109-264.
action_date: 2006-06-21
text: Committee on Banking, Housing, and Urban Affairs. Original measure reported to Senate by Senator Shelby. With written report No. 109-264.
action_date: 2006-06-21
text: Introduced in Senate
action_date: 2006-03-30
text: Committee on Banking, Housing, and Urban Affairs ordered to be reported an original measure.