II 

116TH CONGRESS 

1ST SESSION S. 602 

To address state-sponsored cyber activities against the United States, and 

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 28, 2019 

Mr. GARDNER (for himself and Mr. COONS) introduced the following bill; 

which was read twice and referred to the Committee on Foreign Relations 

A BILL 

To address state-sponsored cyber activities against the 

United States, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Cyber Deterrence and 

5 Response Act of 2019’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 

8 (1) On February 13, 2018, the Director of Na9 tional Intelligence stated in his testimony before the 

10 Select Committee on Intelligence of the Senate that 


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1 ‘‘Russia, China, Iran, and North Korea will pose the 

2 greatest cyber threats to the United States during 

3 the next year’’ through the use of cyber operations 

4 as low-cost tools of statecraft, and assessed that 

5 these countries would ‘‘work to use cyber operations 

6 to achieve strategic objectives unless they face clear 

7 repercussions for their cyber operations’’. 

8 (2) The 2017 Worldwide Threat Assessment of 

9 the United States Intelligence Community stated 

10 that ‘‘The potential for surprise in the cyber realm 

11 will increase in the next year and beyond as billions 

12 more digital devices are connected, with relatively 

13 little built-in security, and both nation states and 

14 malign actors become more emboldened and better 

15 equipped in the use of increasingly widespread cyber 

16 toolkits. The risk is growing that some adversaries 

17 will conduct cyber attacks, such as data deletion or 

18 localized and temporary disruptions of critical infra19 structure, against the United States in a crisis short 

20 of war.’’. 

21 (3) On March 29, 2017, President Donald J. 

22 Trump considered it necessary to continue the na23 tional emergency declared in Executive Order 13694 

24 (50 U.S.C. 1701 note; relating to blocking the prop25 erty of certain persons engaging in significant maliVerDate Sep 11 2014 00:16 Mar 07, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S602.IS S602

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1 cious cyber-enabled activities) as ‘‘Significant mali2 cious cyber-enabled activities originating from, or di3 rected by persons located, in whole or in substantial 

4 part, outside the United States, continue to pose an 

5 unusual and extraordinary threat to the national se6 curity, foreign policy, and economy of the United 

7 States.’’. 

8 (4) On January 5, 2017, former Director of 

9 National Intelligence, James Clapper, former Under 

10 Secretary of Defense for Intelligence, Marcel Lettre, 

11 and the Commander of the United States Cyber 

12 Command, Admiral Michael Rogers, submitted joint 

13 testimony to the Committee on Armed Services of 

14 the Senate that stated that ‘‘as of late 2016 more 

15 than 30 nations are developing offensive cyber at16 tack capabilities’’ and that ‘‘Protecting critical infra17 structure, such as crucial energy, financial, manu18 facturing, transportation, communication, and health 

19 systems, will become an increasingly complex na20 tional security challenge.’’. 

21 (5) There is significant evidence that hackers 

22 affiliated with foreign governments have conducted 

23 cyber operations targeting companies and critical in24 frastructure sectors in the United States as the DeVerDate Sep 11 2014 00:16 Mar 07, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S602.IS S602

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1 partment of Justice and the Department of the 

2 Treasury have announced that— 

3 (A) on March 15, 2018, 5 Russian entities 

4 and 19 Russian individuals were designated 

5 under the Countering America’s Adversaries 

6 Through Sanctions Act (Public Law 115–44; 

7 131 Stat. 886), as well as pursuant to Execu8 tive Order 13694, for interference in the United 

9 States elections in 2016 and other malicious 

10 cyber-enabled activities; 

11 (B) on March 24, 2016, 7 Iranians work12 ing for entities affiliated with Iran’s Revolu13 tionary Guard Corps were indicted for con14 ducting distributed denial of service attacks 

15 against the financial sector in the United States 

16 from 2012 to 2013; and 

17 (C) on May 19, 2014, 5 Chinese military 

18 hackers were charged for hacking United States 

19 companies in the nuclear power, metals, and 

20 solar products industries, and engaging in eco21 nomic espionage. 

22 (6) In May 2017, North Korea released the 

23 WannaCry pseudo-ransomware, which posed a sig24 nificant risk to the economy, national security, and 

25 the citizens of the United States and the world, as 


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1 it resulted in the infection of more than 300,000 

2 computer systems in more than 150 countries, in3 cluding in the healthcare sector of the United King4 dom, demonstrating the global reach and cost of 

5 cyber-enabled malicious activity. 

6 (7) In June 2017, Russia carried out the most 

7 destructive cyber-enabled operation in history, re8 leasing the NotPetya malware that caused billions of 

9 dollars’ worth of damage within Ukraine and across 

10 Europe, Asia, and the Americas. 

11 (8) In May 2018, the Department of State, 

12 pursuant to section 3(b) of Executive Order 13800 

13 (6 U.S.C. 1501 note prec.; relating to strengthening 

14 the cybersecurity of Federal networks and critical in15 frastructure), prepared recommendations to the 

16 President on deterring adversaries and better pro17 tecting the people of the United States from cyber 

18 threats, which stated ‘‘With respect to activities 

19 below the threshold of the use of force, the United 

20 States should, working with likeminded partners 

21 when possible, adopt an approach of imposing swift, 

22 costly, and transparent consequences on foreign gov23 ernments responsible for significant malicious cyber 

24 activities aimed at harming U.S. national interests.’’. 


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1 SEC. 3. ACTIONS TO ADDRESS STATE-SPONSORED CYBER 

2 ACTIVITIES AGAINST THE UNITED STATES. 

3 (a) DESIGNATION AS A CRITICAL CYBER THREAT

4 ACTOR.— 

5 (1) IN GENERAL.—The President, acting 

6 through the Secretary of State, and in coordination 

7 with the heads of other relevant Federal agencies, 

8 shall designate as a critical cyber threat actor— 

9 (A) each foreign person and each agency 

10 or instrumentality of a foreign state that the 

11 President determines to be knowingly respon12 sible for or complicit in, or to have engaged in, 

13 directly or indirectly, state-sponsored cyber ac14 tivities that are reasonably likely to result in, or 

15 have contributed to, a significant threat to the 

16 national security, foreign policy, economic 

17 health, or financial stability of the United 

18 States and that have the purpose or effect of— 

19 (i) causing a significant disruption to 

20 the availability of a computer or network 

21 of computers; 

22 (ii) harming, or otherwise significantly 

23 compromising the provision of service by, a 

24 computer or network of computers that 

25 support one or more entities in a critical 

26 infrastructure sector; 


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1 (iii) significantly compromising the 

2 provision of services by one or more enti3 ties in a critical infrastructure sector; 

4 (iv) causing a significant misappro5 priation of funds or economic resources, 

6 trade secrets, personal identifiers, or finan7 cial information for commercial or competi8 tive advantage or private financial gain; 

9 (v) destabilizing the financial sector of 

10 the United States by tampering with, alter11 ing, or causing a misappropriation of data; 

12 or 

13 (vi) interfering with or undermining 

14 election processes or institutions by tam15 pering with, altering, or causing a mis16 appropriation of data; 

17 (B) each foreign person that the President 

18 has determined to have knowingly, significantly, 

19 and materially assisted, sponsored, or provided 

20 financial, material, or technological support for, 

21 or goods or services to or in support of, any ac22 tivities described in subparagraph (A) by a for23 eign person or agency or instrumentality of a 

24 foreign state designated as a critical cyber 

25 threat actor under subparagraph (A); and 


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1 (C) each agency or instrumentality of a 

2 foreign state that the President has determined 

3 to have significantly and materially assisted, 

4 sponsored, or provided financial, material, or 

5 technological support for, or goods or services 

6 to or in support of, any activities described in 

7 subparagraph (A) by a foreign person or agency 

8 or instrumentality of a foreign state designated 

9 as a critical cyber threat actor under subpara10 graph (A). 

11 (2) TRANSMISSION TO CONGRESS.—Not later 

12 than 7 days after designating a foreign person or 

13 agency or instrumentality of a foreign state as a 

14 critical cyber threat actor under paragraph (1), the 

15 President shall transmit to the appropriate congres16 sional committees in classified or unclassified form a 

17 report identifying the designee. 

18 (b) NON-TRAVEL-RELATED SANCTIONS.— 

19 (1) IN GENERAL.—The President shall impose 

20 one or more of the sanctions described in paragraph 

21 (2) with respect to each foreign person and each 

22 agency or instrumentality of a foreign state des23 ignated as a critical cyber threat actor under sub24 section (a). 


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1 (2) SANCTIONS DESCRIBED.—The sanctions de2 scribed in this paragraph to be imposed on a foreign 

3 person and agency or instrumentality of a foreign 

4 state designated as a critical cyber threat actor 

5 under subsection (a) are the following: 

6 (A) With respect to an agency or instru7 mentality of a foreign state, the President may 

8 provide for the withdrawal, limitation, or sus9 pension of non-humanitarian development as10 sistance from the United States to the foreign 

11 state under chapter 1 of part I of the Foreign 

12 Assistance Act of 1961 (22 U.S.C. 2151 et 

13 seq.). 

14 (B) With respect to an agency or instru15 mentality of a foreign state, the President may 

16 provide for the withdrawal, limitation, or sus17 pension of security assistance from the United 

18 States to the foreign state under part II of the 

19 Foreign Assistance Act of 1961 (22 U.S.C. 

20 2301 et seq.). 

21 (C) The President may direct the United 

22 States executive director to each international 

23 financial institution to use the voice and vote of 

24 the United States to oppose any loan from the 

25 international financial institution that would 


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1 benefit the foreign person or agency or instru2 mentality of a foreign state. 

3 (D) The President may direct the Overseas 

4 Private Investment Corporation, the United 

5 States International Development Finance Cor6 poration, or any other Federal agency not to 

7 approve the issuance of any (or to issue a speci8 fied number of) guarantees, insurance, exten9 sions of credit, or participations in the exten10 sion of credit that would benefit the foreign 

11 person or agency or instrumentality of a foreign 

12 state. 

13 (E) With respect to a foreign person, the 

14 President may, pursuant to such regulations or 

15 guidelines as the President may prescribe, pro16 hibit any United States person from investing 

17 in or purchasing significant amounts of equity 

18 or debt instruments of that would benefit the 

19 foreign person. 

20 (F) The President may, pursuant to proce21 dures the President shall prescribe, which shall 

22 include the opportunity to appeal actions under 

23 this subparagraph, prohibit any Federal agency 

24 from procuring, or entering into any contract 

25 for the procurement of, any goods, technology, 


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1 or services, or classes of goods, technology, or 

2 services, from the foreign person or agency or 

3 instrumentality of a foreign state. 

4 (G) The President may order the heads of 

5 the appropriate Federal agencies to not issue 

6 any (or to issue a specified number of) specific 

7 licenses, and to not grant any other specific au8 thority (or to grant a specified number of au9 thorities), to export any goods or technology to 

10 the foreign person or agency or instrumentality 

11 of a foreign state under— 

12 (i) the Export Control Reform Act of 

13 2018 (50 U.S.C. 4801 et seq.); 

14 (ii) the Arms Export Control Act (22 

15 U.S.C. 2751 et seq.); 

16 (iii) the Atomic Energy Act of 1954 

17 (42 U.S.C. 2011 et seq.); or 

18 (iv) any other statute that requires 

19 the prior review and approval of the 

20 United States Government as a condition 

21 for the export or reexport of goods or serv22 ices. 

23 (H) With respect to a foreign person, the 

24 President may exercise all of the powers grant25 ed to the President under the International 


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1 Emergency Economic Powers Act (50 U.S.C. 

2 1701 et seq.) (except that the requirements of 

3 section 202 of such Act (50 U.S.C. 1701) shall 

4 not apply) to the extent necessary to block and 

5 prohibit all transactions in property and inter6 ests in property of the foreign person if such 

7 property and interests in property are in the 

8 United States, come within the United States, 

9 or are or come within the possession or control 

10 of a United States person. 

11 (I) With respect to a foreign person, the 

12 President may, pursuant to such regulations as 

13 the President may prescribe, prohibit any trans14 fers of credit or payments between one or more 

15 financial institutions or by, through, or to any 

16 financial institution, to the extent that such 

17 transfers or payments are subject to the juris18 diction of the United States and involve any in19 terest of the foreign person. 

20 (c) TRAVEL-RELATED SANCTIONS.— 

21 (1) ALIENS INELIGIBLE FOR VISAS, ADMISSION, 

22 OR PAROLE.—An alien who is designated as a crit23 ical cyber threat actor under subsection (a) is— 

24 (A) inadmissible to the United States; 


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1 (B) ineligible to receive a visa or other doc2 umentation to enter the United States; and 

3 (C) otherwise ineligible to be admitted or 

4 paroled into the United States or to receive any 

5 other benefit under the Immigration and Na6 tionality Act (8 U.S.C. 1101 et seq.). 

7 (2) CURRENT VISAS REVOKED.— 

8 (A) IN GENERAL.—The issuing consular 

9 officer, the Secretary of State, or the Secretary 

10 of Homeland Security (or a designee of either 

11 such Secretary) shall revoke any visa or other 

12 entry documentation issued to a foreign person 

13 who is a designated as a critical cyber threat 

14 actor under subsection (a) regardless of when 

15 issued. 

16 (B) EFFECT.—A revocation under sub17 paragraph (A) with respect to a foreign person 

18 shall take effect immediately and shall auto19 matically cancel any other valid visa or entry 

20 documentation that is in the possession of the 

21 foreign person. 

22 (d) ADDITIONAL SANCTIONS WITH RESPECT TO

23 FOREIGN STATES.— 

24 (1) IN GENERAL.—The President may impose 

25 any of the sanctions described in paragraph (2) with 


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1 respect to the government of a foreign state that the 

2 President has determined aided, abetted, or directed 

3 a foreign person or agency or instrumentality of a 

4 foreign state that is designated as a critical cyber 

5 threat actor under subsection (a). 

6 (2) SANCTIONS DESCRIBED.—The sanctions de7 scribed in this paragraph with respect to the govern8 ment of a foreign state are the following: 

9 (A) The President may provide for the 

10 withdrawal, limitation, or suspension of non-hu11 manitarian or non-trade-related development 

12 assistance from the United States to the foreign 

13 state under chapter 1 of part I of the Foreign 

14 Assistance Act of 1961 (22 U.S.C. 2151 et 

15 seq.). 

16 (B) The President may provide for the 

17 withdrawal, limitation, or suspension of security 

18 assistance from the United States to the foreign 

19 state under part II of the Foreign Assistance 

20 Act of 1961 (22 U.S.C. 2301 et seq.). 

21 (C) The President may direct the United 

22 States executive director to each international 

23 financial institution to use the voice and vote of 

24 the United States to oppose the extension by 


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1 such institution of any loan or financial assist2 ance to the government of the foreign state. 

3 (D) No item on the United States Muni4 tions List under section 38(a)(1) of the Arms 

5 Export Control Act (22 U.S.C. 2778(a)(1)) or 

6 the Commerce Control List set forth in Supple7 ment No. 1 to part 774 of the Export Adminis8 tration Regulations under subchapter C of 

9 chapter VII of title 15, Code of Federal Regula10 tions (or any successor list established pursuant 

11 to section 1754(a)(1) of the Export Control Re12 form Act of 2018 (50 U.S.C. 4813(a)(1))), may 

13 be exported to the government of the foreign 

14 state. 

15 (e) IMPLEMENTATION.—The President may exercise 

16 all authorities provided under sections 203 and 205 of the 

17 International Emergency Economic Powers Act (50 

18 U.S.C. 1702 and 1704) to carry out this section. 

19 (f) PENALTIES.—The penalties provided for in sub20 sections (b) and (c) of section 206 of the International 

21 Emergency Economic Powers Act (50 U.S.C. 1705) shall 

22 apply to a person that violates, attempts to violate, con23 spires to violate, or causes a violation of subsection 

24 (b)(2)(H) or regulations prescribed under subsection 

25 (b)(2)(H) to the same extent that such penalties apply to 


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1 a person that commits an unlawful act described in sub2 section (a) of such section 206. 

3 (g) COORDINATION.—To the extent practicable— 

4 (1) actions taken by the President pursuant to 

5 this section should be coordinated with allies and 

6 partners of the United States; and 

7 (2) the Secretary of State should work with al8 lies and partners of the United States, on a vol9 untary basis, to lead an international diplomatic ini10 tiative to— 

11 (A) deter critical cyber threat actors and 

12 state-sponsored cyber activities; and 

13 (B) provide mutual support to such allies 

14 and partners participating in such initiative to 

15 respond to such state-sponsored cyber activities. 

16 (h) EXEMPTIONS, WAIVERS, AND REMOVALS OF

17 SANCTIONS AND DESIGNATIONS.— 

18 (1) MANDATORY EXEMPTIONS.—The following 

19 activities shall be exempt from sanctions under sub20 sections (b), (c), and (d): 

21 (A) Activities subject to the reporting re22 quirements of title V of the National Security 

23 Act of 1947 (50 U.S.C. 3091 et seq.) or to any 

24 authorized intelligence activities of the United 

25 States. 


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1 (B) Any transaction necessary to comply 

2 with the Agreement regarding the Head3 quarters of the United Nations, signed at Lake 

4 Success June 26, 1947, and entered into force 

5 November 21, 1947, between the United Na6 tions and the United States, the Convention on 

7 Consular Relations, done at Vienna April 24, 

8 1963, and entered into force March 19, 1967, 

9 or other applicable international obligations. 

10 (2) WAIVER.—The President may waive the im11 position of sanctions described in this section for a 

12 period of not more than one year, and may renew 

13 such waiver for additional periods of not more than 

14 one year, if the President submits to the appropriate 

15 congressional committees a written determination 

16 that such waiver meets one or more of the following 

17 requirements: 

18 (A) Such waiver is in the national interests 

19 of the United States. 

20 (B) Such waiver will further the enforce21 ment of this section or is for an important law 

22 enforcement purpose. 

23 (C) Such waiver is for an important hu24 manitarian purpose. 


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1 (3) REMOVALS OF SANCTIONS AND DESIGNA2 TIONS.—The President may prescribe rules and reg3 ulations for the removal of sanctions under sub4 sections (b), (c), and (d) and the removal of designa5 tions under subsection (a) if the President deter6 mines that a foreign person, agency or instrumen7 tality of a foreign state, or government of a foreign 

8 state subject to such sanctions or designation, as the 

9 case may be, has verifiably ceased its participation 

10 in any of the conduct with respect to which such for11 eign person, agency or instrumentality of a foreign 

12 state, or government of a foreign state was subject 

13 to such sanctions or designation, as the case may be, 

14 under this section, and has given assurances that 

15 such foreign person, agency or instrumentality of a 

16 foreign state, or government of a foreign state, as 

17 the case may be, will no longer participate in such 

18 conduct. 

19 (4) EXCEPTION TO COMPLY WITH UNITED NA20 TIONS HEADQUARTERS AGREEMENT.—Sanctions 

21 under subsection (c) shall not apply to a foreign per22 son if admitting such foreign person into the United 

23 States is necessary to permit the United States to 

24 comply with the Agreement regarding the Head25 quarters of the United Nations, signed at Lake SucVerDate Sep 11 2014 00:16 Mar 07, 2019 Jkt 089200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\S602.IS S602

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1 cess June 26, 1947, and entered into force Novem2 ber 21, 1947, between the United Nations and the 

3 United States, or other applicable international obli4 gations. 

5 (i) RULE OF CONSTRUCTION.—Nothing in this sec6 tion may be construed to limit the authority of the Presi7 dent under the International Emergency Economic Powers 

8 Act (50 U.S.C. 1701 et seq.) or any other provision of 

9 law to impose sanctions to address critical cyber threat 

10 actors and malicious state-sponsored cyber activities. 

11 (j) DEFINITIONS.—In this section: 

12 (1) ADMITTED; ALIEN.—The terms ‘‘admitted’’ 

13 and ‘‘alien’’ have the meanings given those terms in 

14 section 101 of the Immigration and Nationality Act 

15 (8 U.S.C. 1101). 

16 (2) AGENCY OR INSTRUMENTALITY OF A FOR17 EIGN STATE.—The term ‘‘agency or instrumentality 

18 of a foreign state’’ has the meaning given that term 

19 in section 1603(b) of title 28, United States Code. 

20 (3) APPROPRIATE CONGRESSIONAL COMMIT21 TEES.—The term ‘‘appropriate congressional com22 mittees’’ means— 

23 (A) the Committee on Foreign Relations, 

24 the Committee on Banking, Housing, and 

25 Urban Affairs, the Committee on the Judiciary, 


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1 and the Committee on Homeland Security and 

2 Governmental Affairs of the Senate; and 

3 (B) the Committee on Foreign Affairs, the 

4 Committee on Financial Services, the Com5 mittee on the Judiciary, the Committee on 

6 Oversight and Reform, and the Committee on 

7 Homeland Security of the House of Representa8 tives. 

9 (4) CRITICAL INFRASTRUCTURE SECTOR.—The 

10 term ‘‘critical infrastructure sector’’ means any of 

11 the designated critical infrastructure sectors identi12 fied in the Presidential Policy Directive entitled 

13 ‘‘Critical Infrastructure Security and Resilience’’, 

14 numbered 21, and dated February 12, 2013. 

15 (5) FOREIGN PERSON.—The term ‘‘foreign per16 son’’ means a person that is not a United States 

17 person. 

18 (6) FOREIGN STATE.—The term ‘‘foreign state’’ 

19 has the meaning given that term in section 1603(a) 

20 of title 28, United States Code. 

21 (7) KNOWINGLY.—The term ‘‘knowingly’’, with 

22 respect to conduct, a circumstance, or a result, 

23 means that a person has actual knowledge, or should 

24 have known, of the conduct, the circumstance, or the 

25 result. 


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1 (8) MISAPPROPRIATION.—The term ‘‘misappro2 priation’’ means taking or obtaining by improper 

3 means, without permission or consent, or under false 

4 pretenses. 

5 (9) STATE-SPONSORED CYBER ACTIVITIES.— 

6 The term ‘‘state-sponsored cyber activities’’ means 

7 any malicious cyber-enabled activities that— 

8 (A) are carried out by a government of a 

9 foreign state or an agency or instrumentality of 

10 a foreign state; or 

11 (B) are carried out by a foreign person 

12 that is aided, abetted, or directed by a govern13 ment of a foreign state or an agency or instru14 mentality of a foreign state. 

15 (10) UNITED STATES PERSON.—The term 

16 ‘‘United States person’’ means— 

17 (A) a United States citizen or an alien law18 fully admitted for permanent residence to the 

19 United States; or 

20 (B) an entity organized under the laws of 

21 the United States or of any jurisdiction within 

22 the United States, including a foreign branch of 

23 such an entity. 


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1 SEC. 4. SENSE OF CONGRESS ON IMPLEMENTATION OF CY2 BERSECURITY COOPERATION BETWEEN THE 

3 UNITED STATES AND NATIONS IN THE INDO4 PACIFIC REGION. 

5 It is the sense of Congress that the President is en6 couraged to fully implement robust cybersecurity coopera7 tion between the United States and nations in the Indo8 Pacific region as described in section 215 of the Asia Re9 assurance Initiative Act of 2018 (Public Law 115–409). 

Æ 


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