```

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8742 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                                H. R. 8742

 To establish the Office of Information and Communications Technology 
    and Services within the Bureau of Industry and Security of the 
            Department of Commerce, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 13, 2024

 Ms. Slotkin introduced the following bill; which was referred to the 
 Committee on Foreign Affairs, and in addition to the Permanent Select 
 Committee on Intelligence, for a period to be subsequently determined 
 by the Speaker, in each case for consideration of such provisions as 
        fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
 To establish the Office of Information and Communications Technology 
    and Services within the Bureau of Industry and Security of the 
            Department of Commerce, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Information and 
Communication Technology and Services National Security Review Act'' or 
the ``ICTS National Security Review Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. The Office of Information and Communications Technology and 
                            Services.
Sec. 3. Transaction review process.
Sec. 4. Regulating person or jurisdiction of concern-connected covered 
                            ICTS transactions.
Sec. 5. Risk assessment.
Sec. 6. Other authorities.
Sec. 7. Enforcement.
Sec. 8. Judicial review.
Sec. 9. Penalties.
Sec. 10. Relationship to other laws.
Sec. 11. Definitions.

SEC. 2. THE OFFICE OF INFORMATION AND COMMUNICATIONS TECHNOLOGY AND 
              SERVICES.

    (a) Establishment.--There is established within the Bureau of 
Industry and Security of the Department of Commerce an Office of 
Information and Communications Technology and Services (in this 
section, referred to as the ``Office'').
    (b) Executive Director.--The head of the Office shall be an 
Executive Director who reports to the Under Secretary for Industry and 
Security and shall be designated by the Secretary.
    (c) Continuation in Office of the Executive Director.--An 
individual serving as the Executive Director before the date of the 
enactment of this Act may serve as the Executive Director on and after 
that date without the need for designation under subsection (b).
    (d) Duties.--The Office shall--
            (1) identify and prevent through mitigation or prohibition 
        the undue or unacceptable risk posed by certain ICTS 
        transactions; and
            (2) educate industry and other partners on relevant risks 
        and communicate decisions.
    (e) Special Hiring Authority.--The Executive Director may appoint, 
without regard to the provisions of sections 3309 through 3318 of title 
5, United States Code, candidates directly to positions in the 
competitive service (as defined in section 2102 of that title).

SEC. 3. TRANSACTION REVIEW PROCESS.

    (a) ICTS Transaction Review Process.--The Secretary, acting through 
the Office of Information and Communications Technology and Services, 
shall review ICTS transactions according to the following procedures:
            (1) Review.--The Secretary may review any ICTS transaction 
        that the Secretary suspects poses an undue or unacceptable 
        risk.
            (2) Investigative authority.--In reviewing an ICTS 
        transaction described in paragraph (1) the Secretary may do the 
        following:
                    (A) Require any person subject to the jurisdiction 
                of the United States to furnish under oath, in the form 
                of a report or otherwise, at any time as may be 
                required by the Secretary, complete information 
                relative to any such transaction.
                    (B) Require that any such report take a particular 
                form as directed in a request, regulation, or other 
                guidance provided by the Secretary, which may be 
                required before, during, or after any such transaction.
                    (C) Through any agency, conduct investigations, 
                hold hearings, administer oaths, examine witnesses, 
                receive evidence, take depositions, and require by 
                subpoena the attendance and testimony of witnesses and 
                the production of any book, contract, letter, paper, 
                and other hard copy or document relating to any matter 
                under investigation, regardless of whether any such 
                report has been required or filed.
    (b) Mitigation of Risk.--
            (1) In general.--If the Secretary finds that a covered ICTS 
        transaction poses an undue or unacceptable risk under 
        subsection (a), the Secretary shall mitigate the undue or 
        unacceptable risk described in paragraph (2) or prohibit such 
        transaction.
            (2) Mitigation of risk authority.--The Secretary may choose 
        to mitigate any undue or unacceptable risk posed by a covered 
        ICTS transaction reviewed under subsection (a). To mitigate the 
        undue or unacceptable risk, the Secretary may do any of the 
        following with regard to any party to a covered ICTS 
        transaction:
                    (A) Negotiate, enter into or impose, and enforce 
                any agreement or condition with any such party.
                    (B) Require adherence to certain cybersecurity 
                standards and other mitigation requirements determined 
                to be necessary by the Secretary.
                    (C) Require the exclusion (in whole or in part) of 
                certain components, including physical parts or 
                hardware, software, digital services, and digital 
                components, of any ICTS or any sub-component of ICTS 
                from any such transaction.
                    (D) Anything else the Secretary determines to be 
                appropriate or necessary to mitigate the undue or 
                unacceptable risks.
            (3) Prohibition of transaction.--If the Secretary 
        determines that the undue or unacceptable risk posed by a 
        covered ICTS transaction cannot be effectively mitigated for 
        any reason as determined by the Secretary, the Secretary--
                    (A) may prohibit the covered ICTS transaction;
                    (B) shall notify any party subject to the covered 
                ICTS transaction review of the prohibition; and
                    (C) may publish any such prohibition in the Federal 
                Register.

SEC. 4. REGULATING PERSON OR JURISDICTION OF CONCERN-CONNECTED COVERED 
              ICTS TRANSACTIONS.

    (a) Authorization To Issue Rules for Certain Classes of Covered 
ICTS Transactions.--The Secretary may determine that, for certain 
classes of covered ICTS transactions, an ICTS transaction review 
described under section 3 may not effectively address undue or 
unacceptable risks and may promulgate regulations that do the 
following:
            (1) Identify particular covered ICTS transactions and 
        person or jurisdiction of concern which warrant particular 
        scrutiny for undue or unacceptable risk.
            (2) Establish mitigation measures to address undue or 
        unacceptable risk, to include prohibitions related to entities 
        of concern or for classes of covered ICTS transactions.
            (3) Establish criteria by which particular covered ICTS 
        transactions or particular classes of participants in the 
        covered ICTS transaction supply chain may be recognized as 
        categorically included in or as categorically excluded from 
        mitigation measures or prohibitions.
            (4) Establish particular classes of covered ICTS 
        transactions or parties to transactions that must abide by 
        certain prohibitions or mitigation measures.
            (5) Establish procedures to authorize or license 
        transactions otherwise prohibited pursuant to a regulation 
        promulgated under this section.
            (6) Any other rule the Secretary determines to be 
        appropriate.
    (b) Other Review by Secretary Permitted.--The promulgation of any 
regulation under subsection (a) does not preclude the Secretary from 
initiating a review of any covered ICTS transaction, including a 
covered ICTS transaction that belongs to an identified category under 
this section.

SEC. 5. RISK ASSESSMENT.

    (a) DNI Risk Assessment.--Not later than 180 days after the date of 
the enactment of this Act, and annually thereafter, the Director of 
National Intelligence shall submit to the Secretary a risk assessment 
that relates to threats posed by persons or jurisdictions of concern to 
the United States by the supply chain of covered ICTS transactions 
that--
            (1) includes specific criteria to evaluate any undue or 
        unacceptable risk to the national security of the United 
        States; and
            (2) identifies any person or jurisdiction of concern, 
        participants in such supply chain, and covered ICTS 
        transactions or classes of covered ICTS transactions posing the 
        highest risks to the national security of the United States.
    (b) Submission of Risk Assessment.--Not later than 90 days after 
the date on which the risk assessment is submitted to the Secretary, 
the Director of National Intelligence shall submit the risk assessment 
to the relevant congressional committees in unclassified format.
    (c) Classified Annex.--The risk assessment submitted under 
subsection (b)--
            (1) may include a classified annex; and
            (2) shall only include specific participants in such supply 
        chain that pose risk to the national security of the United 
        States in the classified annex.

SEC. 6. OTHER AUTHORITIES.

    (a) Regulations.--Any regulation the Secretary promulgated under 
Executive Order 13873 (84 Fed. Reg. 22689; relating to securing the 
information and communications technology and services supply chain) 
and Executive Order 14034 (86 Fed. Reg. 31423; relating to protecting 
Americans' sensitive data from foreign adversaries) before the date of 
the enactment of this Act shall continue in effect on and after the 
date of the enactment of this Act. In carrying out the requirements of 
this Act, the Secretary may amend regulations or promulgate new 
regulations and procedures as the Secretary considers appropriate.
    (b) Guidance.--The Secretary may issue guidance and establish 
procedures to carry out this Act.
    (c) Technical Advisory Committee.--Not later than 180 days after 
the date of the enactment of this Act, the Secretary shall establish an 
ICTS technical advisory committee to report to the Executive Director 
of the Office of Information and Communications Technology and 
Services.
    (d) Membership.--The ICTS advisory committee shall include the 
following:
            (1) Industry academic experts on covered ICTS transaction 
        supply chains.
            (2) Representatives of private sector companies, industry 
        associations, and academia.
            (3) A designated Federal officer to administer the advisory 
        committee and report to the Executive Director.
    (e) Confidentiality and Disclosure of Information.--Any information 
or document not otherwise publicly or commercially available that has 
been submitted to the Secretary under this Act shall not be released 
publicly excepted to the extent required by Federal law.

SEC. 7. ENFORCEMENT.

    (a) Investigations.--
            (1) In general.--The Secretary may conduct an investigation 
        of any violation of an authorization, order, mitigation 
        measure, regulation, or prohibition issued under this Act.
            (2) Actions by designees.--In conducting an investigation 
        described in paragraph (1), designated officers or employees of 
        the Secretary may, to the extent necessary or appropriate to 
        enforce this Act, exercise such authority as is conferred upon 
        them by any other Federal law, subject to policies and 
        procedures approved by the Attorney General.
    (b) Permitted Activities.--An officer or employee authorized to 
conduct investigations under subsection (a) by the Secretary may do any 
of the following:
            (1) Inspect, search, detain, seize, or impose a temporary 
        denial order with respect to any item, in any form, or 
        conveyance on which it is believed that there are items that 
        have been, are being, or are about to be imported into the 
        United States in violation of this Act or any other applicable 
        Federal law.
            (2) Require, inspect, and obtain any book, record, and any 
        other information from any person subject to the provisions of 
        this Act or other applicable Federal law.
            (3) Administer an oath or affirmation and, by subpoena, 
        require any person to appear and testify or to appear and 
        produce books, records, and other writings.
            (4) Obtain a court order and issue legal process to the 
        extent authorized under chapters 119, 121, and 206 of title 18, 
        United States Code, or any other applicable Federal law.
    (c) Enforcement of Subpoenas.--In the case of contumacy by, or 
refusal to obey a subpoena issued to, any person under subsection 
(b)(3), a district court of the United States, after notice to such 
person and a hearing, shall have jurisdiction to issue an order 
requiring such person to appear and give testimony or to appear and 
produce books, records, and other writings, regardless of format, that 
are the subject of the subpoena. Any failure to obey such order of the 
court may be punished by such court as a contempt thereof.
    (d) Actions by the Attorney General.--The Attorney General may 
bring an action in an appropriate district court of the United States 
for appropriate relief, including declaratory and injunctive, or 
divestment relief, against any person who violates this Act or any 
regulation, order, direction, mitigation measure, prohibition, or other 
authorization or directive issued under this Act.

SEC. 8. JUDICIAL REVIEW.

    (a) Right of Action.--A claim or petition challenging this Act or 
any action, finding, or determination under this Act may be filed only 
in the United States Court of Appeals for the District of Columbia 
Circuit.
    (b) Exclusive Jurisdiction.--The United States Court of Appeals for 
the District of Columbia Circuit shall have exclusive jurisdiction over 
claims or petitions arising under this Act against the United States, 
any agency, or any component or official of an agency, subject to 
review by the Supreme Court of the United States under section 1254 of 
title 28, United States Code.
    (c) In Camera and Ex Parte Review.--The following information may 
be included in the administrative record and shall be submitted only to 
the court ex parte and in camera:
            (1) Sensitive security information, as defined in section 
        1520.5 of title 49, Code of Federal Regulations.
            (2) Records or information compiled for law enforcement 
        purposes, as described in section 552(b)(7) of title 5, United 
        States Code.
            (3) Classified information, meaning any information or 
        material that has been determined by the United States 
        Government pursuant to an Executive order, statute, or 
        regulation, to require protection against unauthorized 
        disclosure for reasons of national security and any restricted 
        data, as defined in section 11 of the Atomic Energy Act of 1954 
        (42 U.S.C. 2014).
            (4) Information subject to privilege or protections under 
        any other provision of law, including subchapter II of title 
        31, United States Code.
    (d) Information Under Seal.--Any information that is part of the 
administrative record filed ex parte and in camera under subsection 
(b), or cited by the court in any decision, shall be treated by the 
court consistent with the provisions of this section. In no event shall 
such information be released to the claimant or petitioner or as part 
of the public record.
    (e) Return.--After the expiration of the time to seek further 
review, or the conclusion of further proceedings, the court shall 
return the administrative record, including any and all copies, to the 
United States.
    (f) Exclusive Remedy.--A determination by the court under this 
section shall be the exclusive judicial remedy for any claim or 
petition for review challenging this Act or any action, finding, or 
determination under this Act against the United States, any agency, or 
any component or official of any such agency.
    (g) Rule of Construction.--Nothing in this section shall be 
construed as limiting, superseding, or preventing the invocation of, 
any privileges or defenses that are otherwise available at law or in 
equity to protect against the disclosure of information.
    (h) Statute of Limitations.--A challenge to any determination under 
this Act may only be brought not later than 180 days after the date of 
such a determination.

SEC. 9. PENALTIES.

    (a) Unlawful Acts.--It shall be unlawful for a person to violate, 
attempt to violate, conspire to violate, or cause a violation of any 
regulation, order, direction, prohibition, or other authorization or 
directive issued under this Act.
    (b) Criminal Penalties.--A person who willfully commits, willfully 
attempts to commit, or willfully conspires to commit, or aids and abets 
in the commission of a violation of subsection (a) shall be fined not 
more than $1,000,000 for each violation, imprisoned for not more than 
20 years, or both.
    (c) Civil Penalties.--The Secretary may impose the following civil 
penalties on a person for each violation by that person of a rule 
promulgated under this section:
            (1) A fine that is the greater of--
                    (A) $300,000; or
                    (B) an amount that is twice the value of the action 
                that is the basis of the violation with respect to 
                which the penalty is imposed.
            (2) Revocation of any mitigation measure or authorization 
        issued under this Act to the person.
            (3) A prohibition or other restriction on the ability of 
        the person to engage in any transaction or class of 
        transactions covered by this Act.
    (d) Procedures.--Any civil penalty imposed under subsection (c) may 
be imposed only pursuant to a rule promulgated under this section.
    (e) Standards for Levels of Civil Penalty.--The Secretary may, by 
rule, provide standards for establishing levels of civil penalty under 
subsection (c) based upon factors, including--
            (1) the seriousness of the violation;
            (2) the culpability of the violator, including any pattern 
        of reckless behavior; and
            (3) any mitigating factors, such as the record of 
        cooperation of the violator with the Federal Government in 
        disclosing the violation.

SEC. 10. RELATIONSHIP TO OTHER LAWS.

    (a) Rule of Construction Relating to Other Law.--Nothing in this 
Act shall be construed to alter or affect any other authority, process, 
regulation, investigation, enforcement measure, or review provided by 
or established under any other provision of Federal law.
    (b) Administrative Procedure Exceptions.--Except with respect to a 
civil penalty imposed pursuant to section 9(c), any function exercised 
under this Act is not subject to sections 551, 553 through 559, and 701 
through 706 of title 5, United States Code.
    (c) Paperwork Reduction Act Exception.--The requirements of chapter 
35 of title 44, United States Code (commonly referred to as the 
``Paperwork Reduction Act''), shall not apply to any action by the 
Secretary to implement this Act.
    (d) Defense Production Act.--Nothing in this Act shall prevent or 
preclude the President or the Committee on Foreign Investment in the 
United States from exercising any authority under section 721 of the 
Defense Production Act of 1950 (50 U.S.C. 4565 et seq.) as would be 
available in the absence of this Act.
    (e) Rule of Construction for the OICTS.--Nothing in this Act may be 
construed as altering any of the authority of the Office of Information 
and Communications Technology and Services under Executive Order 13873 
(84 Fed. Reg. 22689; relating to securing the information and 
communications technology and services supply chain) and Executive 
Order 14034 (86 Fed. Reg. 31423; relating to protecting Americans' 
sensitive data from foreign adversaries).

SEC. 11. DEFINITIONS.

    In this Act:
            (1) Agency.--The term ``agency'' has the meaning given that 
        term in section 551 of title 5, United States Code.
            (2) Covered icts transaction.--The term ``covered ICTS 
        transaction'' means an ICTS transaction that--
                    (A) is conducted by any person subject to the 
                jurisdiction of the United States or involves property 
                subject to the jurisdiction of the United States; and
                    (B) involves ICTS designed, developed, 
                manufactured, or supplied by a person owned by, 
                controlled by, or subject to the jurisdiction or 
                direction of a person or jurisdiction of concern.
            (3) Critical infrastructure.--The term ``critical 
        infrastructure'' means systems and assets, whether physical or 
        virtual, so vital to the United States that the incapacity or 
        destruction of such systems and assets would have a 
        debilitating impact on national security, national economic 
        security, national public health or safety, or any combination 
        of those matters.
            (4) ICTS transaction.--The term ``ICTS transaction'' means 
        any acquisition, importation, transfer, installation, dealing 
        in, or use of ICTS, including any ongoing activity, such as a 
        managed service, data transmission, software update, repair, or 
        the platforming or data hosting of an application for consumer 
        download, and any class of ICTS transactions (including the 
        acquisition, importation, transfer, installation, dealing in, 
        or use, including any ongoing activity, of any category of 
        technology product or services, or group of technology products 
        or services as identified by the Secretary).
            (5) Information and communications technology and services; 
        icts.--The terms ``information and communications technology or 
        services'' and ``ICTS'' mean any hardware, software, or other 
        product or service, including cloud-computing services, 
        primarily intended to fulfill or enable the function of 
        information or data processing, storage, retrieval, or 
        communication by electronic means (including electromagnetic, 
        magnetic, and photonic), including transmission, storage, or 
        display.
            (6) Office.--The term ``Office'' means the Office of 
        Information and Communications Technology and Services 
        established under section 2.
            (7) Person or jurisdiction of concern.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``person or jurisdiction of concern'' 
                means any foreign person or any foreign region, 
                country, or government that is engaged in any long-term 
                pattern or serious instances of activity adverse to the 
                national security of the United States, the security of 
                critical infrastructure of the United States, or the 
                safety and security of United States persons and 
                includes the following:
                            (i) The Russian Federation.
                            (ii) The People's Republic of China, 
                        including the Hong Kong Special Administrative 
                        Region and the Macau Special Administrative 
                        Region.
                            (iii) The Republic of Cuba.
                            (iv) The Islamic Republic of Iran.
                            (v) The Democratic People's Republic of 
                        Korea.
                            (vi) Venezuelan politician Nicolas Maduro.
                    (B) Updates to the list.--The Secretary, in 
                consultation with the Director of National 
                Intelligence, shall periodically review the list under 
                subparagraph (A) and may update by adding to, 
                subtracting from, supplementing, or otherwise amending 
                the list through publication of a notice in the Federal 
                Register and any such update shall apply with respect 
                to any ICTS transaction that is initiated, pending, or 
                completed on or after the date of the notice.
            (8) Relevant committees of congress.--The term ``relevant 
        committees of Congress'' means--
                    (A) the Committee on Commerce, Science, and 
                Transportation, the Committee on Banking, Housing, and 
                Urban Affairs, the Committee on Armed Services, and the 
                Select Committee on Intelligence of the Senate; and
                    (B) the Committee on Energy and Commerce, the 
                Committee on Foreign Affairs, the Committee on Armed 
                Services, and the Permanent Select Committee on 
                Intelligence of the House of Representatives.
            (9) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
            (10) Undue or unacceptable risk.--The term ``undue or 
        unacceptable risk'' means any of the following:
                    (A) The undue risk of sabotage to or subversion of 
                the design, integrity, manufacturing, production, 
                distribution, installation, operation, or maintenance 
                of ICTS in the United States.
                    (B) The undue risk of catastrophic effects on the 
                security or resiliency of United States critical 
                infrastructure or the digital economy of the United 
                States.
                    (C) The unacceptable risk to the national security 
                of the United States or the security and safety of 
                United States persons.
            (11) United states person.--The term ``United States 
        person'' any United States citizen, national, or lawful 
        permanent resident, and any corporation, partnership, or other 
        organization organized under the laws of the United States.
                                 <all>
```