Foreign Investment Security Improvement Act of 2006

Foreign Investment Security Improvement Act of 2006 - Directs the President (or the President's designee) to investigate, under the Defense Production Act of 1950, the acquisition by Dubai Ports World (DP World), an entity owned or controlled by the Emirate of Dubai, of the Peninsular and Oriental (P&O) Steam Navigation Company, a national of the United Kingdom. Requires such investigation to be completed within 45 days after enactment of this Act.

Directs the President to suspend any decision, under provisions of the Defense Production Act of 1950 permitting the President to stop the acquisition because it will impair national security, with respect to such acquisition made before the completion of the investigation, including any decision made before enactment of this Act.

Specifies requirements for the investigation.

Requires the President to: (1) report to Congress within 15 days after completion of the investigation; and (2) provide certain Members of Congress a detailed briefing on the contents of the report.

Requires the President to take action necessary to prohibit the acquisition if the President does not stop the acquisition under the provisions of the Defense Production Act of 1950 permitting the President to stop the acquisition because it will impair national security if a joint resolution of disapproval is enacted into law within 30 days after Congress receives a report from the President that an acquisition will not be stopped. Requires, if such acquisition has been already been completed, the President to direct the Attorney General to seek divestment or other appropriate relief in US district courts.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2333 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 2333

To require an investigation under the Defense Production Act of 1950 of 
  the acquisition by Dubai Ports World of the Peninsular and Oriental 
           Steam Navigation Company, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 27, 2006

 Mr. Schumer (for himself, Mr. Coleman, Mr. Menendez, Ms. Snowe, Mrs. 
Clinton, Mr. Coburn, Mr. Reed, Ms. Collins, Mr. Lautenberg, Mr. Durbin, 
 Mrs. Boxer, Mr. Santorum, and Ms. Mikulski) introduced the following 
 bill; which was read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To require an investigation under the Defense Production Act of 1950 of 
  the acquisition by Dubai Ports World of the Peninsular and Oriental 
           Steam Navigation Company, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Foreign Investment Security 
Improvement Act of 2006''.

SEC. 2. INVESTIGATION UNDER DEFENSE PRODUCTION ACT OF 1950.

    (a) Investigation.--
            (1) In general.--Notwithstanding any other provision of 
        law, the President or the President's designee shall conduct an 
        investigation, under section 721(b) of the Defense Production 
        Act of 1950 (50 U.S.C. App. 2170(b)), of the acquisition by 
        Dubai Ports World, an entity owned or controlled by the Emirate 
        of Dubai, of the Peninsular and Oriental Steam Navigation 
        Company, a company that is a national of the United Kingdom, 
        with respect to which written notification was submitted to the 
        Committee on Foreign Investment in the United States on 
        December 15, 2005. Such investigation shall be completed not 
        later than 45 days after the date of the enactment of this Act.
            (2) Suspension of existing decision.--The President shall 
        suspend any decision by the President or the President's 
        designee pursuant to section 721 of the Defense Production Act 
        of 1950 (50 U.S.C. App. 2170) with respect to the acquisition 
        described in paragraph (1) that was made before the completion 
        of the investigation described in paragraph (1), including any 
        such decision made before the date of the enactment of this 
        Act.
    (b) Requirements for Investigation.--The investigation under 
subsection (a) shall include--
            (1) a review of foreign port assessments conducted under 
        section 70108 of title 46, United States Code, of ports at 
        which Dubai Ports World carries out operations;
            (2) background checks of appropriate officers and security 
        personnel of Dubai Ports World;
            (3) an evaluation of the impact on port security in the 
        United States by reason of control by Dubai Ports World of 
        operations at the United States ports affected by the 
        acquisition described in subsection (a); and
            (4) an evaluation of the impact on the national security of 
        the United States by reason of control by Dubai Ports World of 
        operations at the United States ports affected by the 
        acquisition described in subsection (a), to be carried out in 
        consultation with the Commandant of the Coast Guard, the 
        Commissioner of the Bureau of Customs and Border Protection, 
        the heads of other relevant Federal agencies, and relevant 
        State and local officials responsible for port security at such 
        United States ports.
    (c) Report.--Not later than 15 days after the date on which the 
investigation conducted pursuant to this section is completed, the 
President shall submit to Congress a report that--
            (1) contains the findings of the investigation, including--
                    (A) an analysis of the national security concerns 
                reviewed under the investigation; and
                    (B) a description of any assurances provided to the 
                Federal Government by the applicant and the effect of 
                such assurances on the national security of the United 
                States; and
            (2) contains the determination of the President of whether 
        or not the President will take action under section 721(d) of 
        the Defense Production Act of 1950 (50 U.S.C. App. 2170(d)) 
        pursuant to the investigation.
    (d) Congressional Briefing.--
            (1) In general.--Not later than the date on which the 
        report described in subsection (c) is submitted to Congress 
        pursuant to such subsection, the President or the President's 
        designee shall provide to the Members of Congress specified in 
        paragraph (2) a detailed briefing on the contents of the 
        report.
            (2) Members of congress.--The Members of Congress specified 
        in this paragraph are the following:
                    (A) The majority leader and minority leader of the 
                Senate.
                    (B) The Speaker and minority leader of the House of 
                Representatives.
                    (C) The Chairman and Ranking Member of the 
                Committee on Banking, Housing, and Urban Affairs, the 
                Committee on Finance, and the Committee on Homeland 
                Security and Governmental Affairs of the Senate.
                    (D) The Chairman and Ranking Member of the 
                Committee on Financial Services, the Committee on 
                Homeland Security, and the Committee on Ways and Means 
                of the House of Representatives.
                    (E) Each Member of Congress who represents a State 
                or district in which a United States port affected by 
                the acquisition described in subsection (a) is located.

SEC. 3. CONGRESSIONAL ACTION.

    (a) In General.--If the determination of the President contained in 
the report submitted to Congress pursuant to section 2(c) of this Act 
is that the President will not take action under section 721(d) of the 
Defense Production Act of 1950 (50 U.S.C. App. 2170(d)) and not later 
than 30 days after the date on which Congress receives the report, a 
joint resolution described in subsection (b) is enacted into law, then 
the President shall take such action under section 721(d) of the 
Defense Production Act of 1950 as is necessary to prohibit the 
acquisition described in section 2(a), including, if such acquisition 
has been completed, directing the Attorney General to seek divestment 
or other appropriate relief in the district courts of the United 
States.
    (b) Joint Resolution Described.--For purposes of subsection (a), 
the term ``joint resolution'' means a joint resolution of the Congress, 
the sole matter after the resolving clause of which is as follows: 
``That the Congress disapproves the determination of the President 
contained in the report submitted to Congress pursuant to section 2(c) 
of the Foreign Investment Security Improvement Act of 2006 on 
______.'', with the blank space being filled with the appropriate date.
    (c) Computation of Review Period.--In computing the 30-day period 
referred to in subsection (a), there shall be excluded any day 
described in section 154(b) of the Trade Act of 1974 (19 U.S.C. 
2194(b)).
                                 <all>