National Security Foreign Investment Reform and Strengthened Transparency Act of 2006

National Security Foreign Investment Reform and Strengthened Transparency Act of 2006 - Amends the Defense Production Act of 1950 (DPA) to revise the review and investigation process for foreign investment activities that may affect U.S. national security.

(Sec. 2) Directs the President, upon receiving written notification of a possible merger, acquisition, or takeover which could result in foreign control of any person engaged in interstate commerce (covered transaction), or upon a motion of the President, the Committee on Foreign Investment in the United States (CFIUS), or a committee member, to review such covered transaction to determine its effects on national security.

Requires CFIUS to investigate a covered transaction which it determines is a foreign government-controlled transaction.

Allows any party to a covered transaction to initiate a review of such transaction by submitting written notice of the transaction to the Chairperson of CFIUS. Establishes a procedure for withdrawing such notice. Requires a transaction review to be completed within 30 days.

Authorizes the President, CFIUS, or any member of CFIUS to initiate a review of any covered transaction or any previously reviewed or investigated covered transaction which involves the submission of false or misleading material information or a breach of a mitigation agreement or condition.

Directs the President to conduct an investigation of the effects of certain covered transactions on national security and to take any necessary steps to protect national security. Requires such investigation to be completed within 45 days unless extended by the President or by two-thirds roll call vote of CFIUS members.

Requires any review or investigation of a covered transaction to be approved by a majority roll call vote of CFIUS members and be signed by the Secretaries of the Treasury, of Homeland Security, and of Commerce.

Requires the Director of National Intelligence to conduct an analysis of any threat to national security posed by a covered transaction.

(Sec. 3) Establishes CFIUS as a multi-agency statutory committee and revises the membership of such committee. Designates the Secretary of the Treasury as the Chairperson of CFIUS and the Secretary of Homeland Security as Vice Chairperson. Grants CFIUS subpoena power to carryout its responsibilities. Authorizes appropriations for the operation of CFIUS for FY2007-FY2010.

(Sec. 4) Makes the consideration of specified factors in evaluating a covered transaction mandatory (currently, discretionary with the President). Adds to the list of such factors: (1) whether the covered transaction has a security-related impact on critical U.S. infrastructure; (2) whether the covered transaction is a foreign government-controlled transaction; and (3) such other factors as the President or the President's designee may consider appropriate.

(Sec. 5) Grants immunity to the United States for losses or other expenses incurred by a party to a covered transaction resulting from governmental actions if the party did not notify CFIUS of such transaction or did not wait until the completion of a required review or investigation of the transaction.

(Sec. 6) Authorizes CFIUS to: (1) enter into agreements with parties to a covered transaction to mitigate any threat to national security; and (2) designate a lead federal agency to negotiate, modify, monitor, and enforce such agreements.

Establishes a method of tracking covered transactions which are withdrawn from the review or investigation process and a process for setting interim protections to address specific national security concerns relating to such transactions.

(Sec. 7) Revises and expands requirements for CFIUS to report to Congress on investigations of covered transactions. Requires CFIUS to report within five days after it takes final action in an investigation of a covered transaction and to provide classified briefings on covered transactions to Members of Congress, if so requested.

Requires CFIUS to file semiannual reports with Congress on all reviews and investigations of covered transactions within a previous six-month period. Specifies the required content of such reports.

Requires the Inspector General of the Department of the Treasury to conduct an investigation of each failure of the Department of the Treasury to make required reports under DPA and to report to Congress on such investigation.

Requires the Secretary of the Treasury to: (1) study investments in the United States, especially investments in critical infrastructure and industries affecting national security by foreign governments or their agents which comply with any boycott of Israel or which do not ban foreign terrorist organizations; and (2) report to Congress on such study.

(Sec. 8) Requires any notice and other information required to be submitted by a party to a covered transaction to be accompanied by a written statement of the chief executive officer involved certifying that such notice or information fully complies with DPA requirements and is accurate and complete in all material respects.