I 

117TH CONGRESS 

2D SESSION H. R. 7138 

To establish procedures to include certain foreign persons that pose a threat 

to the security of supply chains of Internet of Things devices on the 

Department of Commerce’s Entity List, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 17, 2022 

Mr. OBERNOLTE (for himself and Ms. JACOBS of California) introduced the 

following bill; which was referred to the Committee on Foreign Affairs, 

and in addition to the Committee on Oversight and Reform, 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 procedures to include certain foreign persons 

that pose a threat to the security of supply chains of 

Internet of Things devices on the Department of Commerce’s Entity List, 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 ‘‘Protecting Against 

5 Compromised Internet of Things Technology Act’’. 


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1 SEC. 2. RECOMMENDATIONS TO INCLUDE COVERED FOR2 EIGN PERSONS ON THE ENTITY LIST. 

3 (a) IN GENERAL.—Not later than 90 days after the 

4 date of the enactment of this Act, the Secretary of Com5 merce, acting through the Bureau of Industry and Secu6 rity, shall submit to the End-User Review Committee— 

7 (1) a list of covered foreign persons, if any, that 

8 the Secretary determines pose a threat to the secu9 rity of supply chains of Internet of Things devices; 

10 and 

11 (2) a recommendation of whether or not to in12 clude each such covered foreign person on the Entity 

13 List or make other modifications to the Entity List 

14 as appropriate. 

15 (b) UPDATES OF LIST.—The Secretary of Commerce 

16 shall submit to the End-User Review Committee an up17 dated list and corresponding recommendations under 

18 paragraph (1)— 

19 (1) not later than 180 days after the date of 

20 the enactment of this Act, and every 180 days there21 after; and 

22 (2) as new information becomes available. 

23 SEC. 3. CONSIDERATION AND VOTE TO INCLUDE COVERED 

24 FOREIGN PERSONS ON THE ENTITY LIST. 

25 Not later than 90 days after receiving a list of cov26 ered foreign persons and corresponding recommendations 


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1 required by section 2, the End-User Review Committee 

2 shall convene a meeting— 

3 (1) to consider such list of covered foreign per4 sons and corresponding recommendations; and 

5 (2) to hold a vote with respect to including each 

6 such covered foreign person on the Entity List or 

7 make other modifications to the Entity List as ap8 propriate. 

9 SEC. 4. FEDERAL FINANCIAL ASSISTANCE PROHIBITION. 

10 In the event that any company is on the list described 

11 under section 3— 

12 (1) that company may not receive any Federal 

13 financial assistance; and 

14 (2) the Federal Government may not enter into 

15 any contract with such company for any Internet of 

16 Things device. 

17 SEC. 5. DEFINITIONS. 

18 In this Act: 

19 (1) COVERED FOREIGN PERSON.—The term 

20 ‘‘covered foreign person’’— 

21 (A) means a foreign person that produces 

22 an Internet of Things device; and 

23 (B) includes a parent company, subsidiary, 

24 or relevant senior officer or other official of 

25 such foreign person. 


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1 (2) END-USER REVIEW COMMITTEE.—The term 

2 ‘‘End-User Review Committee’’ means the End-User 

3 Review Committee described in Supplement No. 9 to 

4 part 748 of the Export Administration Regulations. 

5 (3) ENTITY LIST.—The term ‘‘Entity List’’ 

6 means the list maintained by the Bureau of Industry 

7 and Security of the Department of Commerce and 

8 set forth in Supplement No. 4 to part 744 of title 

9 15, Code of Federal Regulations. 

10 (4) EXPORT ADMINISTRATION REGULATIONS.— 

11 The term ‘‘Export Administration Regulations’’ 

12 means subchapter C of chapter VII of title 15, Code 

13 of Federal Regulations. 

14 (5) FEDERAL FINANCIAL ASSISTANCE.—The 

15 term ‘‘Federal financial assistance’’ means any form 

16 of loan, grant, guarantee, insurance, payment, re17 bate, subsidy, or any other form of direct or indirect 

18 Federal assistance (including general or special rev19 enue sharing or formula grants made to States) ap20 proved by any Federal officer or agency. 

21 (6) FOREIGN PERSON.—The term ‘‘foreign per22 son’’ means a person that is not a United States 

23 person. 

24 (7) INTERNET OF THINGS DEVICE.—The term 

25 ‘‘Internet of Things device’’ means a device deVerDate Sep 11 2014 01:30 Mar 22, 2022 Jkt 029200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H7138.IH H7138

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1 scribed in section 2(4) of the Internet of Things Cy2 bersecurity Improvement Act of 2020 (15 U.S.C. 

3 278g–3a note). 

4 (8) UNITED STATES PERSON.—The term 

5 ‘‘United States person’’ means— 

6 (A) a United States citizen or an alien law7 fully admitted for permanent residence to the 

8 United States; or 

9 (B) an entity organized under the laws of 

10 the United States or of any jurisdiction within 

11 the United States, including a foreign branch of 

12 such an entity. 

Æ 


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