text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Foreign Investment Transparency and 
  Security Act of 2006''.
  
  SEC. 2. LIMITS ON FOREIGN CONTROL OF INVESTMENTS IN CERTAIN UNITED 
                STATES CRITICAL INFRASTRUCTURE.
  
      (a) In General.--Title II of the Homeland Security Act of 2002 (6 
  U.S.C. 201 et seq.) is amended by adding at the end the following:
  
     ``Subtitle E--Limits on Foreign Control of Investments in Certain 
                   United States Critical Infrastructure
  
  ``SEC. 241. DEFINITIONS.
  
      ``As used in this subtitle--
              ``(1) the term `foreign government controlled entity' means 
          any entity in which a foreign government owns a majority 
          interest, or otherwise controls or manages the entity; and
              ``(2) the term `general business corporation' means any 
          entity that qualifies for treatment for Federal taxation 
          purposes under subchapter C or subchapter S of the Internal 
          Revenue Code of 1986, established or organized under the laws 
          of any State.
  
  ``SEC. 242. LIMITATION ON FOREIGN INVESTMENTS.
  
      ``(a) In General.--A foreign government controlled entity may 
  acquire, own, or otherwise control or manage any critical 
  infrastructure of the United States only through the establishment or 
  operation of a foreign owned general business corporation that meets 
  the requirements of subsection (b).
      ``(b) Requirements.--For purposes of this section, a general 
  business corporation shall--
              ``(1) have a board of directors, the majority of which is 
          comprised of United States citizens;
              ``(2) have a chief security officer who is a United States 
          citizen, responsible for safety and security issues related to 
          the critical infrastructure; and
              ``(3) maintain all records related to operations, 
          personnel, and security of the United States general business 
          corporation in the United States.
      ``(c) Rule of Construction.--Nothing in this subtitle may be 
  construed to restrict or otherwise alter the authority of the President 
  or the Committee on Foreign Investment in the United States (or any 
  successor thereto) as the designee of the President, under section 721 
  of the Defense Production Act of 1950.
  
  ``SEC. 243. REGULATIONS REQUIRED.
  
      ``Not later than 6 months after the date of enactment of this 
  subtitle, the Secretary, in coordination with the Secretary of the 
  Treasury, shall promulgate final regulations to carry out this 
  subtitle.
  
  ``SEC. 244. EFFECTIVE DATE.
  
      ``(a) In General.--Section 242 shall apply beginning on the date 
  that is 6 months after the date of enactment of this subtitle.
      ``(b) Existing Entities.--A foreign government controlled entity 
  that owns or otherwise controls or manages any critical infrastructure 
  of the United States on the effective date of this subtitle shall 
  comply with the requirements of this subtitle not later than 180 days 
  after that effective date.''.
      (b) Conforming Amendment.--The table of contents under section 1(b) 
  of the Homeland Security Act of 2002 (6 U.S.C. 101) is amended by 
  inserting after the item relating to section 237 the following:
  
     ``Subtitle E--Limits on Foreign Control of Investments in Certain 
                   United States Critical Infrastructure
  
          ``Sec. 241. Definitions.
          ``Sec. 242. Limitation on foreign investments.
          ``Sec. 243. Regulations required.
          ``Sec. 244. Effective date.''.
  
  SEC. 3. MARITIME SECURITY.
  
      (a) Findings.--Congress finds that--
              (1) existing scanning processes for maritime containers are 
          insufficient;
              (2) it should be the goal of the United States to scan 100 
          percent of inbound maritime containers; and
              (3) the maritime container inspection system employed in 
          Hong Kong shows promise in enhancing the maritime security 
          capabilities of the United States.
      (b) Amendments to Homeland Security Act.--
              (1) In general.--Subtitle A of title IV of the Homeland 
          Security Act (6 U.S.C. 201 et seq.) is amended by adding at the 
          end the following:
  
  ``SEC. 404. REPORT ON SCANNING OF MARITIME CONTAINERS.
  
      ``(a) Report to Congress.--Not later than 90 days after the date of 
  enactment of this section, the Secretary shall submit a report to 
  Congress detailing the processes and policies for implementation of a 
  scanning system for 100 percent of the inbound maritime containers 
  described in subsection (a).
      ``(b) Definition of Container.--The term `container' has the 
  meaning given the term in the International Convention for Safe 
  Containers, with annexes, done at Geneva December 2, 1972 (29 UST 
  3707).''.
              (2) Conforming amendment.--The table of contents under 
          section 1(b) of the Homeland Security Act of 2002 (6 U.S.C. 
          101) is amended by inserting after the item relating to section 
          403 the following:
  
          ``Sec. 404. Report on scanning of maritime containers.''.
target: Foreign Investment Transparency and Security Act of 2006 - Amends the Homeland Security Act of 2002 to provide that a foreign government controlled entity may acquire, own, or otherwise control or manage any critical infrastructure of the United States only through the establishment or operation of a foreign owned general business corporation that meets specified requirements.
  
  Requires a majority of the board of directors of such a corporation and its chief security officer to be U.S. citizens.
  
  
  
  Directs the Secretary of Homeland Security to report to Congress on the processes and policies for implementation of a scanning system for 100% of all inbound maritime containers.
feat_title: A bill to amend the Homeland Security Act of 2002 to limit foreign control of investments in certain United States critical infrastructure.