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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 473 Reported in Senate (RS)]

<DOC>

                                                       Calendar No. 190
118th CONGRESS
  1st Session
                                 S. 473

                          [Report No. 118-87]

                     To provide for drone security.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           February 16, 2023

     Mr. Scott of Florida (for himself, Mr. Warner, Mr. Rubio, Mr. 
  Blumenthal, Mrs. Blackburn, Mr. Murphy, Mr. Hawley, and Mr. Romney) 
introduced the following bill; which was read twice and referred to the 
        Committee on Homeland Security and Governmental Affairs

                            August 22, 2023

 Reported under authority of the order of the Senate of July 27, 2023, 
                    by Mr. Peters, without amendment

_______________________________________________________________________

                                 A BILL

 
                     To provide for drone security.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Security Drone Act of 
2023''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Covered foreign entity.--The term ``covered foreign 
        entity'' means an entity included on a list developed and 
        maintained by the Federal Acquisition Security Council and 
        published in the System for Award Management (SAM). This list 
        will include entities in the following categories:
                    (A) An entity included on the Consolidated 
                Screening List.
                    (B) Any entity that is subject to extrajudicial 
                direction from a foreign government, as determined by 
                the Secretary of Homeland Security.
                    (C) Any entity the Secretary of Homeland Security, 
                in coordination with the Attorney General, Director of 
                National Intelligence, and the Secretary of Defense, 
                determines poses a national security risk.
                    (D) Any entity domiciled in the People's Republic 
                of China or subject to influence or control by the 
                Government of the People's Republic of China or the 
                Communist Party of the People's Republic of China, as 
                determined by the Secretary of Homeland Security.
                    (E) Any subsidiary or affiliate of an entity 
                described in subparagraphs (A) through (D).
            (2) Covered unmanned aircraft system.--The term ``covered 
        unmanned aircraft system'' has the meaning given the term 
        ``unmanned aircraft system'' in section 44801 of title 49, 
        United States Code.
            (3) Intelligence; intelligence community.--The terms 
        ``intelligence'' and ``intelligence community'' have the 
        meanings given those terms in section 3 of the National 
        Security Act of 1947 (50 U.S.C. 3003).

SEC. 3. PROHIBITION ON PROCUREMENT OF COVERED UNMANNED AIRCRAFT SYSTEMS 
              FROM COVERED FOREIGN ENTITIES.

    (a) In General.--Except as provided under subsections (b) through 
(f), the head of an executive agency may not procure any covered 
unmanned aircraft system that is manufactured or assembled by a covered 
foreign entity, which includes associated elements related to the 
collection and transmission of sensitive information (consisting of 
communication links and the components that control the unmanned 
aircraft) that enable the operator to operate the aircraft in the 
National Airspace System. The Federal Acquisition Security Council, in 
coordination with the Secretary of Transportation, shall develop and 
update a list of associated elements.
    (b) Exemption.--The Secretary of Homeland Security, the Secretary 
of Defense, the Director of National Intelligence, and the Attorney 
General are exempt from the restriction under subsection (a) if the 
procurement is required in the national interest of the United States 
and--
            (1) is for the sole purposes of research, evaluation, 
        training, testing, or analysis for electronic warfare, 
        information warfare operations, cybersecurity, or development 
        of unmanned aircraft system or counter-unmanned aircraft system 
        technology;
            (2) is for the sole purposes of conducting counterterrorism 
        or counterintelligence activities, protective missions, or 
        Federal criminal or national security investigations, including 
        forensic examinations, or for electronic warfare, information 
        warfare operations, cybersecurity, or development of an 
        unmanned aircraft system or counter-unmanned aircraft system 
        technology; or
            (3) is an unmanned aircraft system that, as procured or as 
        modified after procurement but before operational use, can no 
        longer transfer to, or download data from, a covered foreign 
        entity and otherwise poses no national security cybersecurity 
        risks as determined by the exempting official.
    (c) Department of Transportation and Federal Aviation 
Administration Exemption.--The Secretary of Transportation is exempt 
from the restriction under subsection (a) if the operation or 
procurement is deemed to support the safe, secure, or efficient 
operation of the National Airspace System or maintenance of public 
safety, including activities carried out under the Federal Aviation 
Administration's Alliance for System Safety of UAS through Research 
Excellence (ASSURE) Center of Excellence (COE) and any other activity 
deemed to support the safe, secure, or efficient operation of the 
National Airspace System or maintenance of public safety, as determined 
by the Secretary or the Secretary's designee.
    (d) National Transportation Safety Board Exemption.--The National 
Transportation Safety Board, in consultation with the Secretary of 
Homeland Security, is exempt from the restriction under subsection (a) 
if the operation or procurement is necessary for the sole purpose of 
conducting safety investigations.
    (e) National Oceanic and Atmospheric Administration Exemption.--The 
Administrator of the National Oceanic and Atmospheric Administration 
(NOAA), in consultation with the Secretary of Homeland Security, is 
exempt from the restriction under subsection (a) if the procurement is 
necessary for the purpose of meeting NOAA's science or management 
objectives or operational mission.
    (f) Waiver.--The head of an executive agency may waive the 
prohibition under subsection (a) on a case-by-case basis--
            (1) with the approval of the Director of the Office of 
        Management and Budget, after consultation with the Federal 
        Acquisition Security Council; and
            (2) upon notification to--
                    (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    (B) the Committee on Oversight and Reform in the 
                House of Representatives; and
                    (C) other appropriate congressional committees of 
                jurisdiction.

SEC. 4. PROHIBITION ON OPERATION OF COVERED UNMANNED AIRCRAFT SYSTEMS 
              FROM COVERED FOREIGN ENTITIES.

    (a) Prohibition.--
            (1) In general.--Beginning on the date that is two years 
        after the date of the enactment of this Act, no Federal 
        department or agency may operate a covered unmanned aircraft 
        system manufactured or assembled by a covered foreign entity.
            (2) Applicability to contracted services.--The prohibition 
        under paragraph (1) applies to any covered unmanned aircraft 
        systems that are being used by any executive agency through the 
        method of contracting for the services of covered unmanned 
        aircraft systems.
    (b) Exemption.--The Secretary of Homeland Security, the Secretary 
of Defense, the Director of National Intelligence, and the Attorney 
General are exempt from the restriction under subsection (a) if the 
operation is required in the national interest of the United States 
and--
            (1) is for the sole purposes of research, evaluation, 
        training, testing, or analysis for electronic warfare, 
        information warfare operations, cybersecurity, or development 
        of unmanned aircraft system or counter-unmanned aircraft system 
        technology;
            (2) is for the sole purposes of conducting counterterrorism 
        or counterintelligence activities, protective missions, or 
        Federal criminal or national security investigations, including 
        forensic examinations, or for electronic warfare, information 
        warfare operations, cybersecurity, or development of an 
        unmanned aircraft system or counter-unmanned aircraft system 
        technology; or
            (3) is an unmanned aircraft system that, as procured or as 
        modified after procurement but before operational use, can no 
        longer transfer to, or download data from, a covered foreign 
        entity and otherwise poses no national security cybersecurity 
        risks as determined by the exempting official.
    (c) Department of Transportation and Federal Aviation 
Administration Exemption.--The Secretary of Transportation is exempt 
from the restriction under subsection (a) if the operation is deemed to 
support the safe, secure, or efficient operation of the National 
Airspace System or maintenance of public safety, including activities 
carried out under the Federal Aviation Administration's Alliance for 
System Safety of UAS through Research Excellence (ASSURE) Center of 
Excellence (COE) and any other activity deemed to support the safe, 
secure, or efficient operation of the National Airspace System or 
maintenance of public safety, as determined by the Secretary or the 
Secretary's designee.
    (d) National Transportation Safety Board Exemption.--The National 
Transportation Safety Board, in consultation with the Secretary of 
Homeland Security, is exempt from the restriction under subsection (a) 
if the operation is necessary for the sole purpose of conducting safety 
investigations.
    (e) National Oceanic and Atmospheric Administration Exemption.--The 
Administrator of the National Oceanic and Atmospheric Administration 
(NOAA), in consultation with the Secretary of Homeland Security, is 
exempt from the restriction under subsection (a) if the procurement is 
necessary for the purpose of meeting NOAA's science or management 
objectives or operational mission.
    (f) Waiver.--The head of an executive agency may waive the 
prohibition under subsection (a) on a case-by-case basis--
            (1) with the approval of the Director of the Office of 
        Management and Budget, after consultation with the Federal 
        Acquisition Security Council; and
            (2) upon notification to--
                    (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    (B) the Committee on Oversight and Reform in the 
                House of Representatives; and
                    (C) other appropriate congressional committees of 
                jurisdiction.
    (g) Regulations and Guidance.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Homeland Security, 
in consultation with the Attorney General and the Secretary of 
Transportation, shall prescribe regulations or guidance to implement 
this section.

SEC. 5. PROHIBITION ON USE OF FEDERAL FUNDS FOR PROCUREMENT AND 
              OPERATION OF COVERED UNMANNED AIRCRAFT SYSTEMS FROM 
              COVERED FOREIGN ENTITIES.

    (a) In General.--Beginning on the date that is two years after the 
date of the enactment of this Act, except as provided in subsection 
(b), no Federal funds awarded through a contract, grant, or cooperative 
agreement, or otherwise made available may be used--
            (1) to procure a covered unmanned aircraft system that is 
        manufactured or assembled by a covered foreign entity; or
            (2) in connection with the operation of such a drone or 
        unmanned aircraft system.
    (b) Exemption.--The Secretary of Homeland Security, the Secretary 
of Defense, the Director of National Intelligence, and the Attorney 
General are exempt from the restriction under subsection (a) if the 
procurement or operation is required in the national interest of the 
United States and--
            (1) is for the sole purposes of research, evaluation, 
        training, testing, or analysis for electronic warfare, 
        information warfare operations, cybersecurity, or development 
        of unmanned aircraft system or counter-unmanned aircraft system 
        technology;
            (2) is for the sole purposes of conducting counterterrorism 
        or counterintelligence activities, protective missions, or 
        Federal criminal or national security investigations, including 
        forensic examinations, or for electronic warfare, information 
        warfare operations, cybersecurity, or development of an 
        unmanned aircraft system or counter-unmanned aircraft system 
        technology; or
            (3) is an unmanned aircraft system that, as procured or as 
        modified after procurement but before operational use, can no 
        longer transfer to, or download data from, a covered foreign 
        entity and otherwise poses no national security cybersecurity 
        risks as determined by the exempting official.
    (c) Department of Transportation and Federal Aviation 
Administration Exemption.--The Secretary of Transportation is exempt 
from the restriction under subsection (a) if the operation or 
procurement is deemed to support the safe, secure, or efficient 
operation of the National Airspace System or maintenance of public 
safety, including activities carried out under the Federal Aviation 
Administration's Alliance for System Safety of UAS through Research 
Excellence (ASSURE) Center of Excellence (COE) and any other activity 
deemed to support the safe, secure, or efficient operation of the 
National Airspace System or maintenance of public safety, as determined 
by the Secretary or the Secretary's designee.
    (d) National Oceanic and Atmospheric Administration Exemption.--The 
Administrator of the National Oceanic and Atmospheric Administration 
(NOAA), in consultation with the Secretary of Homeland Security, is 
exempt from the restriction under subsection (a) if the operation or 
procurement is necessary for the purpose of meeting NOAA's science or 
management objectives or operational mission.
    (e) Waiver.--The head of an executive agency may waive the 
prohibition under subsection (a) on a case-by-case basis--
            (1) with the approval of the Director of the Office of 
        Management and Budget, after consultation with the Federal 
        Acquisition Security Council; and
            (2) upon notification to--
                    (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    (B) the Committee on Oversight and Reform in the 
                House of Representatives; and
                    (C) other appropriate congressional committees of 
                jurisdiction.
    (f) Regulations.--Not later than 180 days after the date of the 
enactment of this Act, the Federal Acquisition Regulatory Council shall 
prescribe regulations or guidance, as necessary, to implement the 
requirements of this section pertaining to Federal contracts.

SEC. 6. PROHIBITION ON USE OF GOVERNMENT-ISSUED PURCHASE CARDS TO 
              PURCHASE COVERED UNMANNED AIRCRAFT SYSTEMS FROM COVERED 
              FOREIGN ENTITIES.

    Effective immediately, Government-issued Purchase Cards may not be 
used to procure any covered unmanned aircraft system from a covered 
foreign entity.

SEC. 7. MANAGEMENT OF EXISTING INVENTORIES OF COVERED UNMANNED AIRCRAFT 
              SYSTEMS FROM COVERED FOREIGN ENTITIES.

    (a) In General.--All executive agencies must account for existing 
inventories of covered unmanned aircraft systems manufactured or 
assembled by a covered foreign entity in their personal property 
accounting systems, within one year of the date of enactment of this 
Act, regardless of the original procurement cost, or the purpose of 
procurement due to the special monitoring and accounting measures 
necessary to track the items' capabilities.
    (b) Classified Tracking.--Due to the sensitive nature of missions 
and operations conducted by the United States Government, inventory 
data related to covered unmanned aircraft systems manufactured or 
assembled by a covered foreign entity may be tracked at a classified 
level, as determined by the Secretary of Homeland Security or the 
Secretary's designee.
    (c) Exceptions.--The Department of Defense, the Department of 
Homeland Security, the Department of Justice, the Department of 
Transportation, and the National Oceanic and Atmospheric Administration 
may exclude from the full inventory process, covered unmanned aircraft 
systems that are deemed expendable due to mission risk such as recovery 
issues, or that are one-time-use covered unmanned aircraft due to 
requirements and low cost.

SEC. 8. COMPTROLLER GENERAL REPORT.

    Not later than 275 days after the date of the enactment of this 
Act, the Comptroller General of the United States shall submit to 
Congress a report on the amount of commercial off-the-shelf drones and 
covered unmanned aircraft systems procured by Federal departments and 
agencies from covered foreign entities.

SEC. 9. GOVERNMENT-WIDE POLICY FOR PROCUREMENT OF UNMANNED AIRCRAFT 
              SYSTEMS.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Director of the Office of Management and 
Budget, in coordination with the Department of Homeland Security, 
Department of Transportation, the Department of Justice, and other 
Departments as determined by the Director of the Office of Management 
and Budget, and in consultation with the National Institute of 
Standards and Technology, shall establish a government-wide policy for 
the procurement of an unmanned aircraft system--
            (1) for non-Department of Defense and non-intelligence 
        community operations; and
            (2) through grants and cooperative agreements entered into 
        with non-Federal entities.
    (b) Information Security.--The policy developed under subsection 
(a) shall include the following specifications, which to the extent 
practicable, shall be based on industry standards and technical 
guidance from the National Institute of Standards and Technology, to 
address the risks associated with processing, storing, and transmitting 
Federal information in an unmanned aircraft system:
            (1) Protections to ensure controlled access to an unmanned 
        aircraft system.
            (2) Protecting software, firmware, and hardware by ensuring 
        changes to an unmanned aircraft system are properly managed, 
        including by ensuring an unmanned aircraft system can be 
        updated using a secure, controlled, and configurable mechanism.
            (3) Cryptographically securing sensitive collected, stored, 
        and transmitted data, including proper handling of privacy data 
        and other controlled unclassified information.
            (4) Appropriate safeguards necessary to protect sensitive 
        information, including during and after use of an unmanned 
        aircraft system.
            (5) Appropriate data security to ensure that data is not 
        transmitted to or stored in non-approved locations.
            (6) The ability to opt out of the uploading, downloading, 
        or transmitting of data that is not required by law or 
        regulation and an ability to choose with whom and where 
        information is shared when it is required.
    (c) Requirement.--The policy developed under subsection (a) shall 
reflect an appropriate risk-based approach to information security 
related to use of an unmanned aircraft system.
    (d) Revision of Acquisition Regulations.--Not later than 180 days 
after the date on which the policy required under subsection (a) is 
issued--
            (1) the Federal Acquisition Regulatory Council shall revise 
        the Federal Acquisition Regulation, as necessary, to implement 
        the policy; and
            (2) any Federal department or agency or other Federal 
        entity not subject to, or not subject solely to, the Federal 
        Acquisition Regulation shall revise applicable policy, 
        guidance, or regulations, as necessary, to implement the 
        policy.
    (e) Exemption.--In developing the policy required under subsection 
(a), the Director of the Office of Management and Budget shall--
            (1) incorporate policies to implement the exemptions 
        contained in this Act; and
            (2) incorporate an exemption to the policy in the case of a 
        head of the procuring department or agency determining, in 
        writing, that no product that complies with the information 
        security requirements described in subsection (b) is capable of 
        fulfilling mission critical performance requirements, and such 
        determination--
                    (A) may not be delegated below the level of the 
                Deputy Secretary, or Administrator, of the procuring 
                department or agency;
                    (B) shall specify--
                            (i) the quantity of end items to which the 
                        waiver applies and the procurement value of 
                        those items; and
                            (ii) the time period over which the waiver 
                        applies, which shall not exceed three years;
                    (C) shall be reported to the Office of Management 
                and Budget following issuance of such a determination; 
                and
                    (D) not later than 30 days after the date on which 
                the determination is made, shall be provided to the 
                Committee on Homeland Security and Governmental Affairs 
                of the Senate and the Committee on Oversight and Reform 
                of the House of Representatives.

SEC. 10. STATE, LOCAL, AND TERRITORIAL LAW ENFORCEMENT AND EMERGENCY 
              SERVICE EXEMPTION.

    (a) Rule of Construction.--Nothing in this Act shall prevent a 
State, local, or territorial law enforcement or emergency service 
agency from procuring or operating a covered unmanned aircraft system 
purchased with non-Federal dollars.
    (b) Continuity of Arrangements.--The Federal Government may 
continue entering into contracts, grants, and cooperative agreements or 
other Federal funding instruments with State, local, or territorial law 
enforcement or emergency service agencies under which a covered 
unmanned aircraft system will be purchased or operated if the agency 
has received approval or waiver to purchase or operate a covered 
unmanned aircraft system pursuant to section 5.

SEC. 11. STUDY.

    (a) Study on the Supply Chain for Unmanned Aircraft Systems and 
Components.--
            (1) Report required.--Not later than one year after the 
        date of the enactment of this Act, the Under Secretary of 
        Defense for Acquisition and Sustainment shall provide to the 
        appropriate congressional committees a report on the supply 
        chain for covered unmanned aircraft systems, including a 
        discussion of current and projected future demand for covered 
        unmanned aircraft systems.
            (2) Elements.--The report under paragraph (1) shall include 
        the following:
                    (A) A description of the current and future global 
                and domestic market for covered unmanned aircraft 
                systems that are not widely commercially available 
                except from a covered foreign entity.
                    (B) A description of the sustainability, 
                availability, cost, and quality of secure sources of 
                covered unmanned aircraft systems domestically and from 
                sources in allied and partner countries.
                    (C) The plan of the Secretary of Defense to address 
                any gaps or deficiencies identified in subparagraph 
                (B), including through the use of funds available under 
                the Defense Production Act of 1950 (50 U.S.C. 4501 et 
                seq.) and partnerships with the National Aeronautics 
                and Space Administration and other interested persons.
                    (D) Such other information as the Under Secretary 
                of Defense for Acquisition and Sustainment determines 
                to be appropriate.
            (3) Appropriate congressional committees defined.--In this 
        section the term ``appropriate congressional committees'' 
        means:
                    (A) The Committees on Armed Services of the Senate 
                and the House of Representatives.
                    (B) The Committee on Homeland Security and 
                Governmental Affairs of the Senate and the Committee on 
                Oversight and Reform of the House of Representatives.
                    (C) The Committee on Commerce, Science, and 
                Transportation of the Senate and the Committee on 
                Science, Space, and Technology of the House of 
                Representatives.
                    (D) The Select Committee on Intelligence of the 
                Senate and the Permanent Select Committee on 
                Intelligence of the House of Representatives.
                    (E) The Committee on Transportation and 
                Infrastructure of the House of Representatives.
                    (F) The Committee on Homeland Security of the House 
                of Representatives.

SEC. 12. EXCEPTIONS.

    (a) Exception for Wildfire Management Operations and Search and 
Rescue Operations.--The appropriate Federal agencies, in consultation 
with the Secretary of Homeland Security, are exempt from the 
procurement and operation restrictions under sections 3, 4, and 5 to 
the extent the procurement or operation is necessary for the purpose of 
supporting the full range of wildfire management operations or search 
and rescue operations.
    (b) Exception for Intelligence Activities.--The elements of the 
intelligence community, in consultation with the Director of National 
Intelligence, are exempt from the procurement and operation 
restrictions under sections 3, 4, and 5 to the extent the procurement 
or operation is necessary for the purpose of supporting intelligence 
activities.
    (c) Exception for Tribal Law Enforcement or Emergency Service 
Agency.--Tribal law enforcement or Tribal emergency service agencies, 
in consultation with the Secretary of Homeland Security, are exempt 
from the procurement, operation, and purchase restrictions under 
sections 3, 4, and 5 to the extent the procurement or operation is 
necessary for the purpose of supporting the full range of law 
enforcement operations or search and rescue operations on Indian lands.

SEC. 13. SUNSET.

    Sections 3, 4, and 5 shall cease to have effect on the date that is 
five years after the date of the enactment of this Act.
                                                       Calendar No. 190

118th CONGRESS

  1st Session

                                 S. 473

                          [Report No. 118-87]

_______________________________________________________________________

                                 A BILL

                     To provide for drone security.

_______________________________________________________________________

                            August 22, 2023

 Reported under authority of the order of the Senate of July 27, 2023, 
                           without amendment
```