Countering Limitless Overtaking of User Data Act

To require the Secretary of Commerce to submit a report to Congress on data servicing operations owned by Chinese entities, and for other purposes. 1. Short title This Act may be cited as the Countering Limitless Overtaking of User Data Act CLOUD Act 2. Data servicing operations owned by Chinese entities report (a) Report required Not later than 180 days after the date of the enactment of this Act, the Secretary of Commerce, in coordination with the Director of National Intelligence, the Federal Trade Commission, and the Federal Communications Commission, shall submit to the appropriate committees of Congress a report on the following: (1) Whether any data servicing operation or service owned by a Chinese entity is operating in the United States, the laws and regulations that might apply to such operation or service, and any data servicing operation that are offered or provided to United States persons by the entity. (2) Whether any Chinese entity that provides products or services for a data servicing operation is engaged in a joint venture or servicing arrangement with a United States entity and the nature of such operations. (3) Whether consumers of data servicing operations have access to prominently identified information regarding the ownership of such operations. (4) Whether United States entities can operate freely in the People’s Republic of China and what, if any, restrictions apply to the services and operations of such entities. (5) Each country in which a Chinese entity provides equipment or services for the provision of data servicing operations in a third-country market and whether the market share of Chinese entities in those markets may limit, in any way, the ability of United States entities to operate independently of such operations or without the use of such services. (6) Any support the Government of the People’s Republic of China provides to Chinese entities that provide equipment or services for the provision of data servicing operations that may act as a subsidy for such operations or services. (b) Definitions In this section: (1) Appropriate Committees of Congress The term appropriate committees of Congress (A) the Financial Services Committee, the Foreign Affairs Committee, and the Permanent Select Committee on Intelligence, and the Energy and Commerce Committee of the House of Representatives; and (B) the Finance Committee, Foreign Relations Committee, the Select Committee on Intelligence, and the Committee on Commerce, Science, and Transportation of the Senate. (2) Chinese entity The term Chinese entity (3) Data servicing operation The term data servicing operation (4) United States entity The term United States entity (5) United States person The term United States person (A) a citizen of the United States 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 any jurisdiction within the United States, including a foreign branch of such entity.

Summary: Countering Limitless Overtaking of User Data Act or the CLOUD Act This bill requires the Department of Commerce to report on data servicing operations owned by Chinese entities. The report must address, for example, whether these Chinese entities may be subsidized by China.