Protecting Against Compromised Internet of Things Technology Act

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. Short title This Act may be cited as the Protecting Against Compromised Internet of Things Technology Act 2. Recommendations to include covered foreign persons on the Entity List (a) In general Not later than 90 days after the date of the enactment of this Act, the Secretary of Commerce, acting through the Bureau of Industry and Security, shall submit to the End-User Review Committee— (1) a list of covered foreign persons, if any, that the Secretary determines pose a threat to the security of supply chains of Internet of Things devices; and (2) a recommendation of whether or not to include each such covered foreign person on the Entity List or make other modifications to the Entity List as appropriate. (b) Updates of list The Secretary of Commerce shall submit to the End-User Review Committee an updated list and corresponding recommendations under paragraph (1)— (1) not later than 180 days after the date of the enactment of this Act, and every 180 days thereafter; and (2) as new information becomes available. 3. Consideration and vote to include covered foreign persons on the Entity List Not later than 90 days after receiving a list of covered foreign persons and corresponding recommendations required by section 2, the End-User Review Committee shall convene a meeting— (1) to consider such list of covered foreign persons and corresponding recommendations; and (2) to hold a vote with respect to including each such covered foreign person on the Entity List or make other modifications to the Entity List as appropriate. 4. Federal financial assistance prohibition In the event that any company is on the list described under section 3— (1) that company may not receive any Federal financial assistance; and (2) the Federal Government may not enter into any contract with such company for any Internet of Things device. 5. Definitions In this Act: (1) Covered foreign person The term covered foreign person (A) means a foreign person that produces an Internet of Things device; and (B) includes a parent company, subsidiary, or relevant senior officer or other official of such foreign person. (2) End-User Review Committee The term End-User Review Committee (3) Entity List The term Entity List (4) Export Administration Regulations The term Export Administration Regulations (5) Federal financial assistance The term Federal financial assistance (6) Foreign person The term foreign person (7) Internet of Things device The term Internet of Things device (8) United States person The term United States person (A) a United States citizen or an alien lawfully admitted for permanent residence to the United States; or (B) an entity organized under the laws of the United States or of any jurisdiction within the United States, including a foreign branch of such an entity.

Summary: Protecting Against Compromised Internet of Things Technology Act This bill requires the Bureau of Industry and Security within the Department of Commerce to identify foreign persons that pose a threat to supply chain security for Internet of Things devices (i.e., any object or device that is connected to the internet and is not a laptop, cell phone, or other conventional technology device) for inclusion on the Entity List. This list identifies entities reasonably believed to be involved in, or to pose a significant risk of being or becoming involved in, activities contrary to the national security or foreign policy interests of the United States. The bureau must periodically submit a list of any foreign persons identified as threats to Internet of Things device supply chains to the interagency committee that makes decisions regarding additions to, removals from, or other modifications to the Entity List. After receiving the bureau's list, the committee must vote on whether to add such foreign persons to the Entity List. A company added to the Entity List through this process may not receive any federal financial assistance, and the federal government may not contract with such a company for Internet of Things devices.