Technology Preservation Act of 1991

Technology Preservation Act of 1991 - Amends the Defense Production Act of 1950 to authorize the President to conduct a review to determine whether an investigation should be conducted to determine the effects on national security of certain mergers, acquisitions, and takeovers by foreign persons which could result in foreign control of persons or activities engaged in interstate commerce in the United States. (Currently, there is no review process prior to such investigation.)

Requires notice to be provided to the President (or his designee) by the parties to a takeover or other business combination of a U.S. person that may impair national security.

Designates as an interagency committee to act as the President's designee the Committee on Foreign Investment in the United States, chaired by the Secretary of Commerce. Requires the President or his designee to report annually to the Congress on concluded Committee investigations and on resulting presidential actions.

Directs the Secretary of Energy to: (1) review, consult, and coordinate with the Secretary of Defense and the Committee policies, procedures, and regulations issued under the Atomic Energy Act of 1954 governing foreign ownership, control, or influence and mergers, acquisitions, takeovers, or other business combinations, by foreign persons engaged in interstate commerce in the United States; (2) provide information to the Committee on whether a proposed takeover or other business combination of a person engaged in U.S. interstate commerce is likely to increase the risks of proliferation of special nuclear fuels and associated nuclear weapons technologies and thereby threaten to impair national security; and (3) provide information to the Committee on whether such action is likely to increase the risk of proliferation of nuclear weapons, nuclear weapons technology or technical data, or special nuclear materials and thereby threaten national security.

Directs the Secretaries of Commerce and Defense to collect and analyze such takeover proposals, identify the plans of the acquiring foreign persons with respect to the transfer of technology, and make recommendations to the Committee concerning the need to conduct an investigation. Requires the Secretaries to: (1) submit to each member of the Committee a report concerning the impact of the takeover being reviewed, as well as information and views submitted by Federal agencies concerning such matter; and (2) if the Committee does investigate, report to each member concerning results and recommendations to be made to the President. Authorizes the Committee, with the concurrence of the President, to direct parties to a takeover or other business combination to delay the final transaction until the review or investigation of such action can be completed.

States that when notice has been provided to the President or the Committee concerning a proposed takeover or other business combination, the Assistant to the President for Science and Technology shall be informed. Directs the Assistant to conduct an examination to determine whether the U.S. firm being acquired is involved with technology essential to the national security and, if so, to recommend that the Committee conduct an investigation. Requires the Secretary of Commerce to identify appropriate assurances to be solicited from the foreign person involved to ensure that national security is not impaired during any such investigation. Requires the Secretaries of Commerce and Defense to conduct reviews to determine if such assurances are being implemented and complied with in an acceptable manner.

Authorizes the President: (1) when an investigation has revealed that a takeover or other business combination would impair the national security, to take appropriate action to nullify the takeover and to restore the parties to the positions held before the takeover occurred; (2) to suspend or prohibit any such takeover or other business combination; (3) to impose a requirement that a foreign person provide assurances relating to the operation of such U.S. person so that such control will not threaten to impair the national security; and (4) to direct the Attorney General to seek appropriate relief in U.S. district courts to implement this Act.

Adds to the factors required (currently, authorized) to be considered by the President or his designee in determining the impact on national security of a proposed takeover: (1) the capability or capacity of foreign-owned or controlled firms within the United States to meet national security requirements and how such firms might respond to national security needs in time of international crisis; and (2) the capability and capacity of foreign sources of goods and services critical to the national security and the reliability of continued supplies of such articles in time of international crisis or conflict.

Exempts certain mergers and other business combinations from the provisions of the Defense Production Act of 1950.

Requires the President to report to the Congress the results of a study identifying the extent to which foreign investment is a factor in the overall capacity and technological capabilities of U.S.-owned suppliers to prime contractors with the Departments of Defense or Energy to provide materials and components needed for the manufacture of defense weapons.

Directs the President and the Comptroller General to report independently to the Congress on studies undertaken to determine whether projected trends in the reduction of U.S. armed forces and defense weapons systems structures and domestic takeovers and other business combinations within the defense technological industry sectors could result in potential threats to the national security of the United States.