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 (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.)

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. Authorizes the President or the Committee, as part of its review and investigation, to seek assurances from the foreign person involved that the plans and intentions for the future operation of the U.S. person will not impair national security. Directs the Chairman of the Committee to inform the congressional representatives of the U.S. person subject to a review and investigation under these provisions. Requires the Committee to conduct an ongoing review of all Federal programs, including research and development programs and Federal contracts currently being offered, and, if requested, provide information and assistance to U.S. firms concerning such programs and contracts for which such firms may be eligible.

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 investigation results and recommendations to be made to the President. Requires an investigation to be initiated if any member of the Committee so recommends.

Requires the Secretaries, in connection with any takeover, to identify any critical technology involved, and, if there is a critical technology involved, to conduct an investigation and solicit appropriate assurances from the foreign person involved that national security is not impaired. Requires the Secretaries to conduct annual reviews to determine whether such assurances are being implemented and complied with and report the results to the Congress. Requires the President to inform the Speaker of the House and the Majority Leader of the Senate whenever an investigation of a takeover is conducted and no action is taken to require the foreign firm involved to provide assurances that national security is not impaired by such action.

Authorizes the President, when an investigation has revealed that a takeover would impair national security, to take appropriate action to nullify the takeover and to restore the parties to the positions held before the takeover occurred.

Authorizes the President to suspend or prohibit any takeover by a foreign person in the United States if the President believes that national security might be impaired by the impact such takeover could have on the industrial and technology base of the United States.

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 concentration of foreign direct investment in the industry in question and the impact of additional investment in such industry; (2) the U.S. and world market position of the U.S. person engaged in interstate commerce and the foreign person involved in the transaction; (3) the effects on critical technologies included under the most recent plan submitted to the Congress; and (4) whether the U.S. person engaged in interstate commerce in the United States has received Government grants or contracts during the last ten years, and the dollar amount of such funding.

Exempts the provisions concerning presidential reviews of takeovers for national security purposes from termination under a specified provision of the Defense Production Act of 1950.

Requires the President to report to the Congress the results of a study to identify trends in foreign direct investment in the United States.