I 

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. 

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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Information and Communication Technology and Serv6 ices National Security Review Act’’ or the ‘‘ICTS National 

7 Security Review Act’’. 


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1 (b) TABLE OF CONTENTS.—The table of contents for 

2 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. 

3 SEC. 2. THE OFFICE OF INFORMATION AND COMMUNICA4 TIONS TECHNOLOGY AND SERVICES. 

5 (a) ESTABLISHMENT.—There is established within 

6 the Bureau of Industry and Security of the Department 

7 of Commerce an Office of Information and Communica8 tions Technology and Services (in this section, referred to 

9 as the ‘‘Office’’). 

10 (b) EXECUTIVE DIRECTOR.—The head of the Office 

11 shall be an Executive Director who reports to the Under 

12 Secretary for Industry and Security and shall be des13 ignated by the Secretary. 

14 (c) CONTINUATION IN OFFICE OF THE EXECUTIVE

15 DIRECTOR.—An individual serving as the Executive Direc16 tor before the date of the enactment of this Act may serve 

17 as the Executive Director on and after that date without 

18 the need for designation under subsection (b). 

19 (d) DUTIES.—The Office shall— 


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1 (1) identify and prevent through mitigation or 

2 prohibition the undue or unacceptable risk posed by 

3 certain ICTS transactions; and 

4 (2) educate industry and other partners on rel5 evant risks and communicate decisions. 

6 (e) SPECIAL HIRING AUTHORITY.—The Executive 

7 Director may appoint, without regard to the provisions of 

8 sections 3309 through 3318 of title 5, United States Code, 

9 candidates directly to positions in the competitive service 

10 (as defined in section 2102 of that title). 

11 SEC. 3. TRANSACTION REVIEW PROCESS. 

12 (a) ICTS TRANSACTION REVIEW PROCESS.—The 

13 Secretary, acting through the Office of Information and 

14 Communications Technology and Services, shall review 

15 ICTS transactions according to the following procedures: 

16 (1) REVIEW.—The Secretary may review any 

17 ICTS transaction that the Secretary suspects poses 

18 an undue or unacceptable risk. 

19 (2) INVESTIGATIVE AUTHORITY.—In reviewing 

20 an ICTS transaction described in paragraph (1) the 

21 Secretary may do the following: 

22 (A) Require any person subject to the ju23 risdiction of the United States to furnish under 

24 oath, in the form of a report or otherwise, at 

25 any time as may be required by the Secretary, 


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1 complete information relative to any such trans2 action. 

3 (B) Require that any such report take a 

4 particular form as directed in a request, regula5 tion, or other guidance provided by the Sec6 retary, which may be required before, during, or 

7 after any such transaction. 

8 (C) Through any agency, conduct inves9 tigations, hold hearings, administer oaths, ex10 amine witnesses, receive evidence, take deposi11 tions, and require by subpoena the attendance 

12 and testimony of witnesses and the production 

13 of any book, contract, letter, paper, and other 

14 hard copy or document relating to any matter 

15 under investigation, regardless of whether any 

16 such report has been required or filed. 

17 (b) MITIGATION OF RISK.— 

18 (1) IN GENERAL.—If the Secretary finds that a 

19 covered ICTS transaction poses an undue or unac20 ceptable risk under subsection (a), the Secretary 

21 shall mitigate the undue or unacceptable risk de22 scribed in paragraph (2) or prohibit such trans23 action. 

24 (2) MITIGATION OF RISK AUTHORITY.—The 

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1 acceptable risk posed by a covered ICTS transaction 

2 reviewed under subsection (a). To mitigate the 

3 undue or unacceptable risk, the Secretary may do 

4 any of the following with regard to any party to a 

5 covered ICTS transaction: 

6 (A) Negotiate, enter into or impose, and 

7 enforce any agreement or condition with any 

8 such party. 

9 (B) Require adherence to certain cyberse10 curity standards and other mitigation require11 ments determined to be necessary by the Sec12 retary. 

13 (C) Require the exclusion (in whole or in 

14 part) of certain components, including physical 

15 parts or hardware, software, digital services, 

16 and digital components, of any ICTS or any 

17 sub-component of ICTS from any such trans18 action. 

19 (D) Anything else the Secretary deter20 mines to be appropriate or necessary to miti21 gate the undue or unacceptable risks. 

22 (3) PROHIBITION OF TRANSACTION.—If the 

23 Secretary determines that the undue or unacceptable 

24 risk posed by a covered ICTS transaction cannot be 


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1 effectively mitigated for any reason as determined by 

2 the Secretary, the Secretary— 

3 (A) may prohibit the covered ICTS trans4 action; 

5 (B) shall notify any party subject to the 

6 covered ICTS transaction review of the prohibi7 tion; and 

8 (C) may publish any such prohibition in 

9 the Federal Register. 

10 SEC. 4. REGULATING PERSON OR JURISDICTION OF CON11 CERN-CONNECTED COVERED ICTS TRANS12 ACTIONS. 

13 (a) AUTHORIZATION TO ISSUE RULES FOR CERTAIN

14 CLASSES OF COVERED ICTS TRANSACTIONS.—The Sec15 retary may determine that, for certain classes of covered 

16 ICTS transactions, an ICTS transaction review described 

17 under section 3 may not effectively address undue or unac18 ceptable risks and may promulgate regulations that do the 

19 following: 

20 (1) Identify particular covered ICTS trans21 actions and person or jurisdiction of concern which 

22 warrant particular scrutiny for undue or unaccept23 able risk. 

24 (2) Establish mitigation measures to address 

25 undue or unacceptable risk, to include prohibitions 


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1 related to entities of concern or for classes of cov2 ered ICTS transactions. 

3 (3) Establish criteria by which particular cov4 ered ICTS transactions or particular classes of par5 ticipants in the covered ICTS transaction supply 

6 chain may be recognized as categorically included in 

7 or as categorically excluded from mitigation meas8 ures or prohibitions. 

9 (4) Establish particular classes of covered ICTS 

10 transactions or parties to transactions that must 

11 abide by certain prohibitions or mitigation measures. 

12 (5) Establish procedures to authorize or license 

13 transactions otherwise prohibited pursuant to a reg14 ulation promulgated under this section. 

15 (6) Any other rule the Secretary determines to 

16 be appropriate. 

17 (b) OTHER REVIEW BY SECRETARY PERMITTED.— 

18 The promulgation of any regulation under subsection (a) 

19 does not preclude the Secretary from initiating a review 

20 of any covered ICTS transaction, including a covered 

21 ICTS transaction that belongs to an identified category 

22 under this section. 

23 SEC. 5. RISK ASSESSMENT. 

24 (a) DNI RISK ASSESSMENT.—Not later than 180 

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1 ally thereafter, the Director of National Intelligence shall 

2 submit to the Secretary a risk assessment that relates to 

3 threats posed by persons or jurisdictions of concern to the 

4 United States by the supply chain of covered ICTS trans5 actions that— 

6 (1) includes specific criteria to evaluate any 

7 undue or unacceptable risk to the national security 

8 of the United States; and 

9 (2) identifies any person or jurisdiction of con10 cern, participants in such supply chain, and covered 

11 ICTS transactions or classes of covered ICTS trans12 actions posing the highest risks to the national secu13 rity of the United States. 

14 (b) SUBMISSION OF RISK ASSESSMENT.—Not later 

15 than 90 days after the date on which the risk assessment 

16 is submitted to the Secretary, the Director of National In17 telligence shall submit the risk assessment to the relevant 

18 congressional committees in unclassified format. 

19 (c) CLASSIFIED ANNEX.—The risk assessment sub20 mitted under subsection (b)— 

21 (1) may include a classified annex; and 

22 (2) shall only include specific participants in 

23 such supply chain that pose risk to the national se24 curity of the United States in the classified annex. 


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1 SEC. 6. OTHER AUTHORITIES. 

2 (a) REGULATIONS.—Any regulation the Secretary 

3 promulgated under Executive Order 13873 (84 Fed. Reg. 

4 22689; relating to securing the information and commu5 nications technology and services supply chain) and Exec6 utive Order 14034 (86 Fed. Reg. 31423; relating to pro7 tecting Americans’ sensitive data from foreign adver8 saries) before the date of the enactment of this Act shall 

9 continue in effect on and after the date of the enactment 

10 of this Act. In carrying out the requirements of this Act, 

11 the Secretary may amend regulations or promulgate new 

12 regulations and procedures as the Secretary considers ap13 propriate. 

14 (b) GUIDANCE.—The Secretary may issue guidance 

15 and establish procedures to carry out this Act. 

16 (c) TECHNICAL ADVISORY COMMITTEE.—Not later 

17 than 180 days after the date of the enactment of this Act, 

18 the Secretary shall establish an ICTS technical advisory 

19 committee to report to the Executive Director of the Office 

20 of Information and Communications Technology and Serv21 ices. 

22 (d) MEMBERSHIP.—The ICTS advisory committee 

23 shall include the following: 

24 (1) Industry academic experts on covered ICTS 

25 transaction supply chains. 


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1 (2) Representatives of private sector companies, 

2 industry associations, and academia. 

3 (3) A designated Federal officer to administer 

4 the advisory committee and report to the Executive 

5 Director. 

6 (e) CONFIDENTIALITY AND DISCLOSURE OF INFOR7 MATION.—Any information or document not otherwise 

8 publicly or commercially available that has been submitted 

9 to the Secretary under this Act shall not be released pub10 licly excepted to the extent required by Federal law. 

11 SEC. 7. ENFORCEMENT. 

12 (a) INVESTIGATIONS.— 

13 (1) IN GENERAL.—The Secretary may conduct 

14 an investigation of any violation of an authorization, 

15 order, mitigation measure, regulation, or prohibition 

16 issued under this Act. 

17 (2) ACTIONS BY DESIGNEES.—In conducting an 

18 investigation described in paragraph (1), designated 

19 officers or employees of the Secretary may, to the 

20 extent necessary or appropriate to enforce this Act, 

21 exercise such authority as is conferred upon them by 

22 any other Federal law, subject to policies and proce23 dures approved by the Attorney General. 


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1 (b) PERMITTED ACTIVITIES.—An officer or employee 

2 authorized to conduct investigations under subsection (a) 

3 by the Secretary may do any of the following: 

4 (1) Inspect, search, detain, seize, or impose a 

5 temporary denial order with respect to any item, in 

6 any form, or conveyance on which it is believed that 

7 there are items that have been, are being, or are 

8 about to be imported into the United States in viola9 tion of this Act or any other applicable Federal law. 

10 (2) Require, inspect, and obtain any book, 

11 record, and any other information from any person 

12 subject to the provisions of this Act or other applica13 ble Federal law. 

14 (3) Administer an oath or affirmation and, by 

15 subpoena, require any person to appear and testify 

16 or to appear and produce books, records, and other 

17 writings. 

18 (4) Obtain a court order and issue legal process 

19 to the extent authorized under chapters 119, 121, 

20 and 206 of title 18, United States Code, or any 

21 other applicable Federal law. 

22 (c) ENFORCEMENT OF SUBPOENAS.—In the case of 

23 contumacy by, or refusal to obey a subpoena issued to, 

24 any person under subsection (b)(3), a district court of the 

25 United States, after notice to such person and a hearing, 


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1 shall have jurisdiction to issue an order requiring such 

2 person to appear and give testimony or to appear and 

3 produce books, records, and other writings, regardless of 

4 format, that are the subject of the subpoena. Any failure 

5 to obey such order of the court may be punished by such 

6 court as a contempt thereof. 

7 (d) ACTIONS BY THE ATTORNEY GENERAL.—The At8 torney General may bring an action in an appropriate dis9 trict court of the United States for appropriate relief, in10 cluding declaratory and injunctive, or divestment relief, 

11 against any person who violates this Act or any regulation, 

12 order, direction, mitigation measure, prohibition, or other 

13 authorization or directive issued under this Act. 

14 SEC. 8. JUDICIAL REVIEW. 

15 (a) RIGHT OF ACTION.—A claim or petition chal16 lenging this Act or any action, finding, or determination 

17 under this Act may be filed only in the United States 

18 Court of Appeals for the District of Columbia Circuit. 

19 (b) EXCLUSIVE JURISDICTION.—The United States 

20 Court of Appeals for the District of Columbia Circuit shall 

21 have exclusive jurisdiction over claims or petitions arising 

22 under this Act against the United States, any agency, or 

23 any component or official of an agency, subject to review 

24 by the Supreme Court of the United States under section 

25 1254 of title 28, United States Code. 


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1 (c) IN CAMERA AND EX PARTE REVIEW.—The fol2 lowing information may be included in the administrative 

3 record and shall be submitted only to the court ex parte 

4 and in camera: 

5 (1) Sensitive security information, as defined in 

6 section 1520.5 of title 49, Code of Federal Regula7 tions. 

8 (2) Records or information compiled for law en9 forcement purposes, as described in section 

10 552(b)(7) of title 5, United States Code. 

11 (3) Classified information, meaning any infor12 mation or material that has been determined by the 

13 United States Government pursuant to an Executive 

14 order, statute, or regulation, to require protection 

15 against unauthorized disclosure for reasons of na16 tional security and any restricted data, as defined in 

17 section 11 of the Atomic Energy Act of 1954 (42 

18 U.S.C. 2014). 

19 (4) Information subject to privilege or protec20 tions under any other provision of law, including 

21 subchapter II of title 31, United States Code. 

22 (d) INFORMATION UNDER SEAL.—Any information 

23 that is part of the administrative record filed ex parte and 

24 in camera under subsection (b), or cited by the court in 

25 any decision, shall be treated by the court consistent with 


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1 the provisions of this section. In no event shall such infor2 mation be released to the claimant or petitioner or as part 

3 of the public record. 

4 (e) RETURN.—After the expiration of the time to 

5 seek further review, or the conclusion of further pro6 ceedings, the court shall return the administrative record, 

7 including any and all copies, to the United States. 

8 (f) EXCLUSIVE REMEDY.—A determination by the 

9 court under this section shall be the exclusive judicial rem10 edy for any claim or petition for review challenging this 

11 Act or any action, finding, or determination under this 

12 Act against the United States, any agency, or any compo13 nent or official of any such agency. 

14 (g) RULE OF CONSTRUCTION.—Nothing in this sec15 tion shall be construed as limiting, superseding, or pre16 venting the invocation of, any privileges or defenses that 

17 are otherwise available at law or in equity to protect 

18 against the disclosure of information. 

19 (h) STATUTE OF LIMITATIONS.—A challenge to any 

20 determination under this Act may only be brought not 

21 later than 180 days after the date of such a determination. 

22 SEC. 9. PENALTIES. 

23 (a) UNLAWFUL ACTS.—It shall be unlawful for a per24 son to violate, attempt to violate, conspire to violate, or 

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1 bition, or other authorization or directive issued under this 

2 Act. 

3 (b) CRIMINAL PENALTIES.—A person who willfully 

4 commits, willfully attempts to commit, or willfully con5 spires to commit, or aids and abets in the commission of 

6 a violation of subsection (a) shall be fined not more than 

7 $1,000,000 for each violation, imprisoned for not more 

8 than 20 years, or both. 

9 (c) CIVIL PENALTIES.—The Secretary may impose 

10 the following civil penalties on a person for each violation 

11 by that person of a rule promulgated under this section: 

12 (1) A fine that is the greater of— 

13 (A) $300,000; or 

14 (B) an amount that is twice the value of 

15 the action that is the basis of the violation with 

16 respect to which the penalty is imposed. 

17 (2) Revocation of any mitigation measure or 

18 authorization issued under this Act to the person. 

19 (3) A prohibition or other restriction on the 

20 ability of the person to engage in any transaction or 

21 class of transactions covered by this Act. 

22 (d) PROCEDURES.—Any civil penalty imposed under 

23 subsection (c) may be imposed only pursuant to a rule pro24 mulgated under this section. 


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1 (e) STANDARDS FOR LEVELS OF CIVIL PENALTY.— 

2 The Secretary may, by rule, provide standards for estab3 lishing levels of civil penalty under subsection (c) based 

4 upon factors, including— 

5 (1) the seriousness of the violation; 

6 (2) the culpability of the violator, including any 

7 pattern of reckless behavior; and 

8 (3) any mitigating factors, such as the record 

9 of cooperation of the violator with the Federal Gov10 ernment in disclosing the violation. 

11 SEC. 10. RELATIONSHIP TO OTHER LAWS. 

12 (a) RULE OF CONSTRUCTION RELATING TO OTHER

13 LAW.—Nothing in this Act shall be construed to alter or 

14 affect any other authority, process, regulation, investiga15 tion, enforcement measure, or review provided by or estab16 lished under any other provision of Federal law. 

17 (b) ADMINISTRATIVE PROCEDURE EXCEPTIONS.— 

18 Except with respect to a civil penalty imposed pursuant 

19 to section 9(c), any function exercised under this Act is 

20 not subject to sections 551, 553 through 559, and 701 

21 through 706 of title 5, United States Code. 

22 (c) PAPERWORK REDUCTION ACT EXCEPTION.—The 

23 requirements of chapter 35 of title 44, United States Code 

24 (commonly referred to as the ‘‘Paperwork Reduction 


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1 Act’’), shall not apply to any action by the Secretary to 

2 implement this Act. 

3 (d) DEFENSE PRODUCTION ACT.—Nothing in this 

4 Act shall prevent or preclude the President or the Com5 mittee on Foreign Investment in the United States from 

6 exercising any authority under section 721 of the Defense 

7 Production Act of 1950 (50 U.S.C. 4565 et seq.) as would 

8 be available in the absence of this Act. 

9 (e) RULE OF CONSTRUCTION FOR THE OICTS.— 

10 Nothing in this Act may be construed as altering any of 

11 the authority of the Office of Information and Commu12 nications Technology and Services under Executive Order 

13 13873 (84 Fed. Reg. 22689; relating to securing the infor14 mation and communications technology and services sup15 ply chain) and Executive Order 14034 (86 Fed. Reg. 

16 31423; relating to protecting Americans’ sensitive data 

17 from foreign adversaries). 

18 SEC. 11. DEFINITIONS. 

19 In this Act: 

20 (1) AGENCY.—The term ‘‘agency’’ has the 

21 meaning given that term in section 551 of title 5, 

22 United States Code. 

23 (2) COVERED ICTS TRANSACTION.—The term 

24 ‘‘covered ICTS transaction’’ means an ICTS trans25 action that— 


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1 (A) is conducted by any person subject to 

2 the jurisdiction of the United States or involves 

3 property subject to the jurisdiction of the 

4 United States; and 

5 (B) involves ICTS designed, developed, 

6 manufactured, or supplied by a person owned 

7 by, controlled by, or subject to the jurisdiction 

8 or direction of a person or jurisdiction of con9 cern. 

10 (3) CRITICAL INFRASTRUCTURE.—The term 

11 ‘‘critical infrastructure’’ means systems and assets, 

12 whether physical or virtual, so vital to the United 

13 States that the incapacity or destruction of such sys14 tems and assets would have a debilitating impact on 

15 national security, national economic security, na16 tional public health or safety, or any combination of 

17 those matters. 

18 (4) ICTS TRANSACTION.—The term ‘‘ICTS 

19 transaction’’ means any acquisition, importation, 

20 transfer, installation, dealing in, or use of ICTS, in21 cluding any ongoing activity, such as a managed 

22 service, data transmission, software update, repair, 

23 or the platforming or data hosting of an application 

24 for consumer download, and any class of ICTS 

25 transactions (including the acquisition, importation, 


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1 transfer, installation, dealing in, or use, including 

2 any ongoing activity, of any category of technology 

3 product or services, or group of technology products 

4 or services as identified by the Secretary). 

5 (5) INFORMATION AND COMMUNICATIONS

6 TECHNOLOGY AND SERVICES; ICTS.—The terms ‘‘in7 formation and communications technology or serv8 ices’’ and ‘‘ICTS’’ mean any hardware, software, or 

9 other product or service, including cloud-computing 

10 services, primarily intended to fulfill or enable the 

11 function of information or data processing, storage, 

12 retrieval, or communication by electronic means (in13 cluding electromagnetic, magnetic, and photonic), in14 cluding transmission, storage, or display. 

15 (6) OFFICE.—The term ‘‘Office’’ means the Of16 fice of Information and Communications Technology 

17 and Services established under section 2. 

18 (7) PERSON OR JURISDICTION OF CONCERN.— 

19 (A) IN GENERAL.—Except as provided in 

20 subparagraph (B), the term ‘‘person or jurisdic21 tion of concern’’ means any foreign person or 

22 any foreign region, country, or government that 

23 is engaged in any long-term pattern or serious 

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1 ical infrastructure of the United States, or the 

2 safety and security of United States persons 

3 and includes the following: 

4 (i) The Russian Federation. 

5 (ii) The People’s Republic of China, 

6 including the Hong Kong Special Adminis7 trative Region and the Macau Special Ad8 ministrative Region. 

9 (iii) The Republic of Cuba. 

10 (iv) The Islamic Republic of Iran. 

11 (v) The Democratic People’s Republic 

12 of Korea. 

13 (vi) Venezuelan politician Nicola ́s 

14 Maduro. 

15 (B) UPDATES TO THE LIST.—The Sec16 retary, in consultation with the Director of Na17 tional Intelligence, shall periodically review the 

18 list under subparagraph (A) and may update by 

19 adding to, subtracting from, supplementing, or 

20 otherwise amending the list through publication 

21 of a notice in the Federal Register and any 

22 such update shall apply with respect to any 

23 ICTS transaction that is initiated, pending, or 

24 completed on or after the date of the notice. 


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1 (8) RELEVANT COMMITTEES OF CONGRESS.— 

2 The term ‘‘relevant committees of Congress’’ 

3 means— 

4 (A) the Committee on Commerce, Science, 

5 and Transportation, the Committee on Bank6 ing, Housing, and Urban Affairs, the Com7 mittee on Armed Services, and the Select Com8 mittee on Intelligence of the Senate; and 

9 (B) the Committee on Energy and Com10 merce, the Committee on Foreign Affairs, the 

11 Committee on Armed Services, and the Perma12 nent Select Committee on Intelligence of the 

13 House of Representatives. 

14 (9) SECRETARY.—The term ‘‘Secretary’’ means 

15 the Secretary of Commerce. 

16 (10) UNDUE OR UNACCEPTABLE RISK.—The 

17 term ‘‘undue or unacceptable risk’’ means any of the 

18 following: 

19 (A) The undue risk of sabotage to or sub20 version of the design, integrity, manufacturing, 

21 production, distribution, installation, operation, 

22 or maintenance of ICTS in the United States. 

23 (B) The undue risk of catastrophic effects 

24 on the security or resiliency of United States 


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1 critical infrastructure or the digital economy of 

2 the United States. 

3 (C) The unacceptable risk to the national 

4 security of the United States or the security 

5 and safety of United States persons. 

6 (11) UNITED STATES PERSON.—The term 

7 ‘‘United States person’’ any United States citizen, 

8 national, or lawful permanent resident, and any cor9 poration, partnership, or other organization orga10 nized under the laws of the United States. 

Æ 


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