2463 
SEC. 4701. DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS 
(In Thousands of Dollars) 
Program 
FY 2021 
Request 
House 
Authorized 
Plutonium Modernization 
Los Alamos Plutonium Modernization 
Los Alamos Plutonium Operations .....................................
610,599 
610,599 
21–D–512 Plutonium Pit Production Project, LANL ........
226,000 
226,000 
Subtotal, Los Alamos Plutonium Modernization ............................
836,599 
836,599 
Savannah River Plutonium Modernization 
Savannah River Plutonium Operations ...............................
200,000 
200,000 
21–D–511 Savannah River Plutonium Processing Facility, 
SRS ..................................................................................
241,896 
241,896 
Subtotal, Savannah River Plutonium Modernization ..................
441,896 
441,896 
Enterprise Plutonium Support ...................................................
90,782 
90,782 
Total, Plutonium Modernization ..........................................................
1,369,277 
1,369,277 
High Explosives and Energetics .........................................................
67,370 
67,370 
Total, Primary Capability Modernization .........................................
1,436,647 
1,436,647 
Secondary Capability Modernization ..........................................................
457,004 
457,004 
Tritium and Domestic Uranium Enrichment .............................................
457,112 
457,112 
Non-Nuclear Capability Modernization ......................................................
107,137 
107,137 
Total, Production Modernization .........................................................
2,457,900 
2,457,900 
Stockpile Research, Technology, and Engineering 
Assessment Science ....................................................................................
773,111 
773,111 
Engineering and Integrated Assessments ..................................................
337,404 
337,404 
Inertial Confinement Fusion ......................................................................
554,725 
554,725 
Advanced Simulation and Computing ........................................................
732,014 
732,014 
Weapon Technology and Manufacturing Maturation .................................
297,965 
297,965 
Academic Programs ....................................................................................
86,912 
86,912 
Total, Stockpile Research, Technology, and Engineering ..........
2,782,131 
2,782,131 
Infrastructure and Operations 
Operations of facilities ................................................................................
1,014,000 
1,014,000 
Safety and environmental operations .........................................................
165,354 
165,354 
Maintenance and repair of facilities ...........................................................
792,000 
792,000 
Recapitalization: 
Infrastructure and safety ....................................................................
670,000 
670,000 
Capability based investments ..............................................................
149,117 
149,117 
Planning for Programmatic Construction (Pre-CD–1) ......................
84,787 
84,787 
Total, Recapitalization .............................................................................
903,904 
903,904 
Construction: 
21–D–510 HE Synthesis, Formulation, and Production, PX ...........
31,000 
31,000 
19–D–670 138kV Power Transmission System Replacement, NNSS 
59,000 
59,000 
18–D–690 Lithium Processing Facility, Y–12 ...................................
109,405 
109,405 
18–D–620 Exascale Computing Facility Modernization Project, 
LLNL ..............................................................................................
29,200 
29,200 
18–D–650 Tritium Finishing Facility, SRS ......................................
27,000 
27,000 
17–D–640, U1a Complex Enhancements Project, NNSS ..................
160,600 
160,600 
15–D–612 Emergency Operations Center, LLNL .............................
27,000 
27,000 
15–D–611 Emergency Operations Center, SNL ................................
36,000 
36,000 
15–D–302, TA–55 Reinvestments Project, Phase 3, LANL .............
30,000 
30,000 
15–D–301, HE Science & Engineering Facility, PX .........................
43,000 
43,000 
07–D–220-04 Transuranic Liquid Waste Facility, LANL ................
36,687 
36,687 
06–D–141 Uranium processing facility Y–12, Oak Ridge, TN .........
750,000 
750,000 
04–D–125 Chemistry and Metallurgy Research Replacement 
Project, LANL ................................................................................
169,427 
169,427 
Total, Construction ....................................................................................
1,508,319 
1,508,319 
Total, Infrastructure and operations ..................................................
4,383,577 
4,383,577 
Secure transportation asset 
Operations and equipment ..........................................................................
266,390 
266,390 
Program direction .......................................................................................
123,684 
123,684 
Total, Secure transportation asset .......................................................
390,074 
390,074 
Defense Nuclear Security 
Operations and maintenance ......................................................................
815,895 
815,895 
Construction: 
17–D–710 West end protected area reduction project, Y–12 ............
11,000 
11,000 
Total, Defense nuclear security ............................................................
826,895 
826,895 
Information technology and cybersecurity .........................................................
375,511 
375,511
2464 
SEC. 4701. DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS 
(In Thousands of Dollars) 
Program 
FY 2021 
Request 
House 
Authorized 
Legacy contractor pensions ................................................................................
101,668 
101,668 
Total, Weapons Activities ........................................................................
15,602,000 
15,602,000 
Defense Nuclear Nonproliferation 
Defense Nuclear Nonproliferation Programs 
Global material security 
International nuclear security .............................................................
66,391 
66,391 
Domestic radiological security ............................................................
101,000 
131,000 
Container breach in Seattle, WA ................................................
[30,000] 
International radiological security ......................................................
73,340 
73,340 
Nuclear smuggling detection and deterrence ......................................
159,749 
159,749 
Total, Global material security .............................................................
400,480 
430,480 
Material management and minimization 
HEU reactor conversion .....................................................................
170,000 
170,000 
Nuclear material removal ...................................................................
40,000 
40,000 
Material disposition ............................................................................
190,711 
190,711 
Total, Material management & minimization ..................................
400,711 
400,711 
Nonproliferation and arms control .............................................................
138,708 
138,708 
National Technical Nuclear Forensics R&D ..............................................
40,000 
40,000 
Defense nuclear nonproliferation R&D 
Proliferation Detection .......................................................................
235,220 
265,220 
Nuclear verification and detection, next-gen technologies ..........
[30,000] 
Nuclear Detonation Detection ............................................................
236,531 
236,531 
Nonproliferation Stewardship Program ..............................................
59,900 
59,900 
LEU Research and Development .......................................................
20,000 
LEU R&D for Naval Pressurized Water Reactors .....................
[20,000] 
Total, Defense nuclear nonproliferation R&D ................................
531,651 
581,651 
Nonproliferation Construction: 
18–D–150 Surplus Plutonium Disposition Project, SRS ...................
148,589 
148,589 
Total, Nonproliferation construction ..................................................
148,589 
148,589 
Total, Defense Nuclear Nonproliferation Programs .....................
1,660,139 
1,740,139 
Legacy contractor pensions ................................................................................
14,348 
14,348 
Nuclear counterterrorism and incident response program .................................
377,513 
377,513 
Use of Prior Year Balances ...............................................................................
–21,000 
–21,000 
Total, Defense Nuclear Nonproliferation ..........................................
2,031,000 
2,111,000 
Naval Reactors 
Naval reactors development ...............................................................................
590,306 
590,306 
Columbia-Class reactor systems development ....................................................
64,700 
64,700 
S8G Prototype refueling ....................................................................................
135,000 
135,000 
Naval reactors operations and infrastructure ....................................................
506,294 
506,294 
Construction: 
21–D–530 KL Steam and Condensate Upgrades ......................................
4,000 
4,000 
14–D–901 Spent fuel handling recapitalization project, NRF ..................
330,000 
330,000 
Total, Construction ....................................................................................
334,000 
334,000 
Program direction ..............................................................................................
53,700 
53,700 
Total, Naval Reactors ................................................................................
1,684,000 
1,684,000 
Federal Salaries And Expenses 
Program direction ..............................................................................................
454,000 
454,000 
Total, Office Of The Administrator ......................................................
454,000 
454,000 
Defense Environmental Cleanup 
Closure sites: 
Closure sites administration .......................................................................
4,987 
4,987 
Richland: 
River corridor and other cleanup operations ..............................................
54,949 
235,949 
Program restoration ............................................................................
[181,000]
2465 
SEC. 4701. DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS 
(In Thousands of Dollars) 
Program 
FY 2021 
Request 
House 
Authorized 
Central plateau remediation .......................................................................
498,335 
658,335 
Program restoration ............................................................................
[160,000] 
Richland community and regulatory support .............................................
2,500 
10,100 
Program restoration ............................................................................
[7,600] 
Total, Hanford site .....................................................................................
555,784 
904,384 
Office of River Protection: 
Waste Treatment Immobilization Plant Commissioning ............................
50,000 
50,000 
Rad liquid tank waste stabilization and disposition ...................................
597,757 
597,757 
Tank farm activities ...................................................................................
180,000 
Program restoration ............................................................................
[180,000] 
Construction: 
18–D–16 Waste treatment and immobilization plant—LBL/Direct 
feed LAW ........................................................................................
609,924 
779,924 
Program restoration ....................................................................
[170,000] 
Total, Construction ....................................................................................
609,924 
779,924 
Total, Office of River Protection ..........................................................
1,257,681 
1,607,681 
Idaho National Laboratory: 
Idaho cleanup and waste disposition ..........................................................
257,554 
257,554 
Idaho community and regulatory support ..................................................
2,400 
2,400 
Total, Idaho National Laboratory ........................................................
259,954 
259,954 
NNSA sites and Nevada off-sites 
Lawrence Livermore National Laboratory .................................................
1,764 
1,764 
Nuclear facility D & D 
Separations Process Research Unit ....................................................
15,000 
15,000 
Nevada ................................................................................................
60,737 
60,737 
Sandia National Laboratories .............................................................
4,860 
4,860 
Los Alamos National Laboratory .......................................................
120,000 
165,000 
Program increase ........................................................................
[45,000] 
Total, NNSA sites and Nevada off-sites ..............................................
202,361 
247,361 
Oak Ridge Reservation: 
OR Nuclear facility D & D .........................................................................
109,077 
109,077 
Total, OR Nuclear facility D & D ..........................................................
109,077 
109,077 
U233 Disposition Program ........................................................................
45,000 
45,000 
OR cleanup and disposition ........................................................................
58,000 
58,000 
Construction: 
17–D–401 On-site waste disposal facility ...................................
22,380 
22,380 
14–D–403 Outfall 200 Mercury Treatment Facility ..................
20,500 
20,500 
Total, Construction ....................................................................................
42,880 
42,880 
Total, OR cleanup and waste disposition ..........................................
145,880 
145,880 
OR community & regulatory support .........................................................
4,930 
4,930 
OR technology development and deployment .............................................
3,000 
3,000 
Total, Oak Ridge Reservation ................................................................
262,887 
262,887 
Savannah River Sites: 
Savannah River risk management operations 
Savannah River risk management operations ....................................
455,122 
495,122 
H-Canyon not placed into stand-by condition ............................
[40,000] 
Total, risk management operations .....................................................
455,122 
495,122 
SR community and regulatory support ......................................................
4,989 
11,489 
Secure payment in lieu of taxes funding ............................................
[6,500] 
Radioactive liquid tank waste stabilization and disposition .......................
970,332 
970,332 
Construction: 
20-D–402 Advanced Manufacturing Collaborative Facility 
(AMC) .....................................................................................
25,000 
25,000 
18–D–402 Saltstone Disposal Unit #8/9 ...................................
65,500 
65,500 
17–D–402 Saltstone Disposal Unit #7 ......................................
10,716 
10,716 
Total, Construction ....................................................................................
101,216 
101,216 
Total, Savannah River site ......................................................................
1,531,659 
1,578,159 
Waste Isolation Pilot Plant 
Waste Isolation Pilot Plant ........................................................................
323,260 
323,260 
Construction: 
15–D–412 Utility Saft ........................................................................
50,000 
50,000
2466 
SEC. 4701. DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS 
(In Thousands of Dollars) 
Program 
FY 2021 
Request 
House 
Authorized 
21–D–401 Hoisting Capability Project ..............................................
10,000 
10,000 
Total, Construction ....................................................................................
60,000 
60,000 
Total, Waste Isolation Pilot Plant ........................................................
383,260 
383,260 
Program direction ..............................................................................................
275,285 
275,285 
Program support ................................................................................................
12,979 
12,979 
Technology development .....................................................................................
25,000 
25,000 
Safeguards and Security 
Safeguards and Security .............................................................................
320,771 
320,771 
Total, Safeguards and Security .............................................................
320,771 
320,771 
Prior year balances credited ...............................................................................
–109,000 
–109,000 
Total, Defense Environmental Cleanup .............................................
4,983,608 
5,773,708 
Other Defense Activities 
Environment, health, safety and security 
Environment, health, safety and security ...................................................
134,320 
134,320 
Program direction .......................................................................................
75,368 
75,368 
Total, Environment, Health, safety and security ...........................
209,688 
209,688 
Independent enterprise assessments 
Independent enterprise assessments ...........................................................
26,949 
26,949 
Program direction .......................................................................................
54,635 
54,635 
Total, Independent enterprise assessments .....................................
81,584 
81,584 
Specialized security activities .............................................................................
258,411 
258,411 
Office of Legacy Management 
Legacy management ...................................................................................
293,873 
138,435 
Rejection of proposed transfer ............................................................
[–155,438] 
Program direction .......................................................................................
23,120 
23,120 
Total, Office of Legacy Management ...................................................
316,993 
161,555 
Defense related administrative support .............................................................
183,789 
183,789 
Office of hearings and appeals ...........................................................................
4,262 
4,262 
Subtotal, Other defense activities ........................................................
1,054,727 
899,289 
Total, Other Defense Activities .............................................................
1,054,727 
899,289 
DIVISION E—NATIONAL ARTIFI-
CIAL INTELLIGENCE INITIA-
TIVE ACT OF 2020 
SEC. 5001. SHORT TITLE. 
This division may be cited as the ‘‘National Artificial 
Intelligence Initiative Act of 2020’’. 
SEC. 5002. FINDINGS. 
Congress finds the following:
2467 
(1) Artificial intelligence is a tool that has the 
potential to change and possibly transform every 
sector of the United States economy and society. 
(2) The Federal Government should continue to 
play an important role advancing research, develop-
ment, standards, and education activities in artificial 
intelligence through coordination and collaboration 
between government, academia, and the private sec-
tor to leverage the intellectual, physical, and digital 
resources of each stakeholder. 
(3) The Federal Government lacks clear under-
standing of the capabilities of artificial intelligence 
and its potential to affect various social and eco-
nomic sectors, including ethical concerns, national 
security implications, and workforce impacts. 
(4) Researchers from academia, Federal labora-
tories, and much of the private sector have limited 
access to many high-quality datasets, computing re-
sources, or real-world testing environments to design 
and deploy safe and trustworthy artificial intel-
ligence systems. 
(5) There is a lack of standards and 
benchmarking for artificial intelligence systems that 
academia and the public and private sectors can use
2468 
to evaluate the performance of these systems before 
and after deployment. 
(6) Artificial intelligence is increasingly becom-
ing a highly interdisciplinary field with expertise re-
quired from a diverse range of scientific and other 
scholarly disciplines that traditionally work inde-
pendently and continue to face cultural and institu-
tional barriers to large scale collaboration. 
(7) Current Federal investments and funding 
mechanisms are largely insufficient to incentivize 
and support the large-scale interdisciplinary and 
public-private collaborations that will be required to 
advance trustworthy artificial intelligence systems in 
the United States. 
(8) The United States education pipeline for ar-
tificial intelligence fields faces significant challenges. 
Not only does the artificial intelligence research field 
lack the gender and racial diversity of the American 
population as a whole, but it is failing to both retain 
researchers and adequately support educators to 
meet the demands of the next generation of students 
studying artificial intelligence. 
(9) In order to help drive forward advances in 
trustworthy artificial intelligence across all sectors 
and to the benefit of all Americans, the Federal
2469 
Government must provide sufficient resources and 
use its convening power to facilitate the growth of 
artificial intelligence human capital, research, and 
innovation capacity in academia and other nonprofit 
research organizations, companies of all sizes and 
across all sectors, and within the Federal Govern-
ment. 
SEC. 5003. DEFINITIONS. 
In this division: 
(1) ADVISORY COMMITTEE.—The term ‘‘Advi-
sory Committee’’ means the National Artificial Intel-
ligence Advisory Committee established under sec-
tion 5104(a). 
(2) AGENCY HEAD.—The term ‘‘agency head’’ 
means the head of any Executive agency (as defined 
in section 105 of title 5, United States Code). 
(3) ARTIFICIAL INTELLIGENCE.—The term ‘‘ar-
tificial intelligence’’ means a machine-based system 
that can, for a given set of human-defined objectives, 
make predictions, recommendations or decisions in-
fluencing real or virtual environments. Artificial in-
telligence systems use machine and human-based in-
puts to— 
(A) perceive real and virtual environments;
2470 
(B) abstract such perceptions into models 
through analysis in an automated manner; and 
(C) use model inference to formulate op-
tions for information or action. 
(4) INITIATIVE.—The term ‘‘Initiative’’ means 
the National Artificial Intelligence Initiative estab-
lished under section 5101(a). 
(5) INITIATIVE OFFICE.—The term ‘‘Initiative 
Office’’ means the National Artificial Intelligence 
Initiative Office established under section 5102(a). 
(6) INSTITUTE.—The term ‘‘Institute’’ means 
an Artificial Intelligence Research Institute de-
scribed in section 5201(b)(1). 
(7) 
INTERAGENCY
COMMITTEE.—The 
term 
‘‘Interagency Committee’’ means the interagency 
committee established under section 5103(a). 
(8) K–12 EDUCATION.—The term ‘‘K–12 edu-
cation’’ means elementary school and secondary edu-
cation, as such terms are defined in section 8101 of 
the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7801). 
(9) MACHINE LEARNING.—The term ‘‘machine 
learning’’ means an application of artificial intel-
ligence that is characterized by providing systems 
the ability to automatically learn and improve on the
2471 
basis of data or experience, without being explicitly 
programmed. 
TITLE I—NATIONAL ARTIFICIAL 
INTELLIGENCE INITIATIVE 
SEC. 5101. NATIONAL ARTIFICIAL INTELLIGENCE INITIA-
TIVE. 
(a) ESTABLISHMENT; PURPOSES.—The President 
shall establish and implement an initiative to be known 
as the ‘‘National Artificial Intelligence Initiative’’. The 
purposes of the Initiative shall be to— 
(1) ensure continued United States leadership 
in artificial intelligence research and development; 
(2) lead the world in the development and use 
of trustworthy artificial intelligence systems in the 
public and private sectors; 
(3) maximize the benefits of artificial intel-
ligence systems for all American people; and 
(4) prepare the present and future United 
States workforce for the integration of artificial in-
telligence systems across all sectors of the economy 
and society. 
(b) INITIATIVE ACTIVITIES.—In carrying out the Ini-
tiative, the President, acting through the Initiative Office, 
the Interagency Committee, and agency heads as the
2472 
President considers appropriate, shall carry out activities 
that include the following: 
(1) Sustained, consistent, and coordinated sup-
port for artificial intelligence research and develop-
ment 
through 
grants, 
cooperative 
agreements, 
testbeds, and access to data and computing re-
sources. 
(2) Support for the development of voluntary 
standards, best practices, and benchmarks for the 
development and use of trustworthy artificial intel-
ligence systems. 
(3) Support for educational programs at all lev-
els, in both formal and informal learning environ-
ments, to prepare the American workforce and the 
general public to be able to use and interact with ar-
tificial intelligence systems, as well as adapt to the 
potentially transformative impact of artificial intel-
ligence on society and the economy. 
(4) Support for interdisciplinary research, edu-
cation, and training programs for students and re-
searchers that promote learning in the methods and 
systems used in artificial intelligence and foster 
interdisciplinary 
perspectives 
and 
collaborations 
among subject matter experts in relevant fields, in-
cluding computer science, mathematics, statistics,
2473 
engineering, social sciences, psychology, behavioral 
science, ethics, security, legal scholarship, and other 
disciplines that will be necessary to advance artificial 
intelligence research and development responsibly. 
(5) Support for partnerships to leverage knowl-
edge, computing resources, access to open datasets, 
and other resources from industry, government, non-
profit organizations, Federal laboratories, State pro-
grams, and institutions of higher education to ad-
vance activities under the Initiative. 
(6) Interagency planning and coordination of 
Federal artificial intelligence research, development, 
demonstration, standards engagement, and other ac-
tivities under the Initiative. 
(7) Establish the public sector infrastructure 
and artificial intelligence capabilities necessary to re-
spond to pressing national challenges, including eco-
nomic and public health emergencies such as 
pandemics. 
(8) Outreach to diverse stakeholders, including 
citizen groups and industry, to ensure public input 
is taken into account in the activities of the Initia-
tive. 
(9) Leveraging existing Federal investments to 
advance objectives of the Initiative.
2474 
(10) Support for a network of interdisciplinary 
artificial intelligence research institutes, as described 
in section 5201(b)(7)(B). 
(11) Support opportunities for international co-
operation with strategic allies, as appropriate, on the 
research and development, assessment, and re-
sources for trustworthy artificial intelligence systems 
and the development of voluntary consensus stand-
ards for those systems. 
SEC. 5102. NATIONAL ARTIFICIAL INTELLIGENCE INITIA-
TIVE OFFICE. 
(a) IN GENERAL.—The Director of the Office of 
Science and Technology Policy shall establish or designate, 
and appoint a director of, an office to be known as the 
‘‘National Artificial Intelligence Initiative Office’’ to carry 
out the responsibilities described in subsection (b) with re-
spect to the Initiative. The Initiative Office shall have suf-
ficient staff to carry out such responsibilities, including 
staff detailed from the Federal departments and agencies 
described in section 5103(c). 
(b) RESPONSIBILITIES.—The Director of the Initia-
tive Office shall— 
(1) provide technical and administrative support 
to the Interagency Committee and the Advisory 
Committee;
2475 
(2) serve as the point of contact on Federal ar-
tificial intelligence activities carried out under the 
Initiative for Federal departments and agencies, in-
dustry, academia, nonprofit organizations, profes-
sional societies, State governments, and such other 
persons as the Initiative Office considers appropriate 
to exchange technical and programmatic informa-
tion; 
(3) conduct regular public outreach to diverse 
stakeholders, including through the convening of 
conferences and educational events, the publication 
of information about significant Initiative activities 
on a publicly available website, and the dissemina-
tion of findings and recommendations of the Advi-
sory Committee, as appropriate; and 
(4) promote access to and early adoption of the 
technologies, innovations, lessons learned, and exper-
tise derived from Initiative activities to agency mis-
sions and systems across the Federal Government, 
and to industry, including startup companies. 
(c) FUNDING ESTIMATE.—The Director of the Office 
of Science and Technology Policy shall develop an estimate 
of the funds necessary to carry out the activities of the 
Initiative Coordination Office, including an estimate of 
how much each participating Federal department and
2476 
agency described in section 5103(c) will contribute to such 
funds, and submit such estimate to Congress not later 
than 90 days after the enactment of this Act. The Director 
shall update this estimate each year based on participating 
agency investments in artificial intelligence. 
SEC. 5103. COORDINATION BY INTERAGENCY COMMITTEE. 
(a) INTERAGENCY COMMITTEE.—The Director of the 
Office of Science and Technology Policy, acting through 
the National Science and Technology Council, shall estab-
lish or designate an Interagency Committee to coordinate 
Federal programs and activities in support of the Initia-
tive. 
(b) CO-CHAIRS.—The Interagency Committee shall 
be co-chaired by the Director of the Office of Science and 
Technology Policy and, on an annual rotating basis, a rep-
resentative from the National Institute of Standards and 
Technology, the National Science Foundation, or the De-
partment of Energy, as selected by the Director of the 
Office of Science and Technology Policy. 
(c) AGENCY PARTICIPATION.—The Committee shall 
include representatives from— 
(1) the National Institute of Standards and 
Technology; 
(2) the National Science Foundation; 
(3) the Department of Energy;
2477 
(4) the National Aeronautics and Space Admin-
istration; 
(5) the Department of Defense; 
(6) the Defense Advanced Research Projects 
Agency; 
(7) the Department of Commerce; 
(8) the Office of the Director of National Intel-
ligence; 
(9) the Office of Management and Budget; 
(10) the Office of Science and Technology Pol-
icy; 
(11) the Department of Health and Human 
Services; 
(12) the Department of Education; 
(13) the Department of Labor; 
(14) the Department of the Treasury; 
(15) the General Services Administration; 
(16) the Department of Transportation; 
(17) the Department of State; 
(18) the Privacy and Civil Liberties Oversight 
Board; 
(19) the Department of Veterans Affairs; 
(20) the National Oceanic and Atmospheric Ad-
ministration; and
2478 
(21) any other Federal agency as considered 
appropriate by the Director of the Office of Science 
and Technology Policy. 
(d) RESPONSIBILITIES.—The Interagency Committee 
shall— 
(1) provide for interagency coordination of Fed-
eral artificial intelligence research, development, and 
demonstration activities, development of voluntary 
consensus standards and guidelines for research, de-
velopment, testing, and adoption of ethically devel-
oped, safe, and trustworthy artificial intelligence sys-
tems, and education and training activities and pro-
grams of Federal departments and agencies under-
taken pursuant to the Initiative; 
(2) not later than 2 years after the date of the 
enactment of this Act, develop a strategic plan for 
artificial intelligence (to be updated not less than 
every 3 years) that— 
(A) 
establishes 
goals, 
priorities, 
and 
metrics for guiding and evaluating the Initia-
tive’s activities; and 
(B) describes how the agencies carrying 
out the Initiative will— 
(i) determine and prioritize areas of 
artificial intelligence research, develop-
2479 
ment, and demonstration requiring Federal 
Government leadership and investment; 
(ii) support long-term funding for 
interdisciplinary artificial intelligence re-
search, development, demonstration, edu-
cation and public outreach activities; 
(iii) support research and other activi-
ties on ethical, legal, environmental, safety, 
security, and other appropriate societal 
issues related to artificial intelligence; 
(iv) provide or facilitate the avail-
ability of curated, standardized, secure, 
representative, and privacy-protected data 
sets for artificial intelligence research and 
development; 
(v) provide or facilitate the necessary 
computing, networking, and data facilities 
for artificial intelligence research and de-
velopment; 
(vi) support and coordinate Federal 
education and workforce activities related 
to artificial intelligence; 
(vii) reduce barriers to transferring 
artificial intelligence systems from the lab-
2480 
oratory into application for the benefit of 
society and United States competitiveness; 
(viii) support and coordinate the net-
work of artificial intelligence research insti-
tutes described in section 5201(b)(7)(B); 
(ix) in consultation with the Council 
of Economic Advisers, measure and track 
the contributions of artificial intelligence to 
United States economic growth and other 
societal indicators; 
(x) leverage the resources of the Ini-
tiative to respond to pressing national 
challenges, including economic and public 
health emergencies such as pandemics; and 
(xi) protect the privacy rights and 
civil liberties of individuals; 
(3) propose an annually coordinated interagency 
budget for the Initiative to the Office of Manage-
ment and Budget that is intended to ensure that the 
balance of funding across the Initiative is sufficient 
to meet the goals and priorities established for the 
Initiative; and 
(4) in carrying out this section, take into con-
sideration the recommendations of the Advisory 
Committee, existing reports on related topics, and
2481 
the views of academic, State, industry, and other ap-
propriate groups. 
(e) ANNUAL REPORT.—For each fiscal year begin-
ning with fiscal year 2022, not later than 90 days after 
submission of the President’s annual budget request for 
such fiscal year, the Interagency Committee shall prepare 
and submit to the Committee on Science, Space, and 
Technology of the House of Representatives and the Com-
mittee on Commerce, Science, and Transportation of the 
Senate a report that includes— 
(1) a summarized budget in support of the Ini-
tiative for such fiscal year and the preceding fiscal 
year, including a disaggregation of spending for each 
Federal agency participating in the Initiative and for 
the development and acquisition of any research fa-
cilities and instrumentation; and 
(2) an assessment of how Federal agencies are 
implementing the plan described in subsection 
(d)(2), and a description of those efforts. 
SEC. 5104. NATIONAL ARTIFICIAL INTELLIGENCE ADVI-
SORY COMMITTEE. 
(a) IN GENERAL.—The Secretary of Energy shall, in 
consultation with the Director of the Office of Science and 
Technology Policy, establish an advisory committee to be
2482 
known as the ‘‘National Artificial Intelligence Advisory 
Committee’’. 
(b) QUALIFICATIONS.—The Advisory Committee 
shall consist of members, appointed by the Secretary of 
Energy, who are representing broad and interdisciplinary 
expertise and perspectives, including from academic insti-
tutions, companies across diverse sectors, nonprofit and 
civil society entities, and Federal laboratories, that are 
qualified to provide advice and information on science and 
technology research, development, ethics, standards, edu-
cation, technology transfer, commercial application, secu-
rity, and economic competitiveness related to artificial in-
telligence. 
(c) MEMBERSHIP CONSIDERATION.—In selecting the 
members of the Advisory Committee, the Secretary of En-
ergy may seek and give consideration to recommendations 
from the Congress, industry, nonprofit organizations, the 
scientific community (including the National Academy of 
Sciences, scientific professional societies, and academic in-
stitutions), the defense community, and other appropriate 
organizations. 
(d) DUTIES.—The Advisory Committee shall advise 
the President and the Initiative Office on matters related 
to the Initiative, including recommendations related to—
2483 
(1) the current state of United States competi-
tiveness and leadership in artificial intelligence, in-
cluding the scope and scale of United States invest-
ments in artificial intelligence research and develop-
ment in the international context; 
(2) the progress made in implementing the Ini-
tiative, including a review of the degree to which the 
Initiative has achieved the goals under the metrics 
established by the Interagency Committee under sec-
tion 5103(d)(2); 
(3) the state of the science around artificial in-
telligence, including progress towards artificial gen-
eral intelligence; 
(4) the workforce of the United States, includ-
ing matters relating to the potential for using artifi-
cial intelligence for rapid retraining of workers, due 
to the possible effect of technological displacement 
and to increase the labor force participation of tradi-
tionally underrepresented populations, including mi-
norities, low-income populations, and persons with 
disabilities; 
(5) how to leverage the resources of the initia-
tive to streamline operations in various areas of gov-
ernment operations, including health care, cyberse-
curity, infrastructure, and disaster recovery;
2484 
(6) the need to update the Initiative; 
(7) the balance of activities and funding across 
the Initiative; 
(8) whether the strategic plan developed or up-
dated by the Interagency Committee established 
under section 5103(d)(2) is helping to maintain 
United States leadership in artificial intelligence; 
(9) the management, coordination, and activi-
ties of the Initiative; 
(10) whether ethical, legal, safety, security, and 
other appropriate societal issues are adequately ad-
dressed by the Initiative; 
(11) opportunities for international cooperation 
with strategic allies on artificial intelligence research 
activities and standards development; and 
(12) how artificial intelligence can enhance op-
portunities for diverse geographic regions of the 
United States, including urban and rural commu-
nities. 
(e) REPORTS.—Not later than 1 year after the date 
of the enactment of this Act, and not less frequently than 
once every 3 years thereafter, the Advisory Committee 
shall submit to the President, the Committee on Science, 
Space, and Technology of the House of Representatives, 
and the Committee on Commerce, Science, and Transpor-
2485 
tation of the Senate, a report on the Advisory Committee’s 
findings and recommendations under subsection (d). 
(f) TRAVEL EXPENSES
OF NON-FEDERAL MEM-
BERS.—Non-Federal members of the Advisory Committee, 
while attending meetings of the Advisory Committee or 
while otherwise serving at the request of the head of the 
Advisory Committee away from their homes or regular 
places of business, may be allowed travel expenses, includ-
ing per diem in lieu of subsistence, as authorized by sec-
tion 5703 of title 5, United States Code, for individuals 
in the Government serving without pay. Nothing in this 
subsection shall be construed to prohibit members of the 
Advisory Committee who are officers or employees of the 
United States from being allowed travel expenses, includ-
ing per diem in lieu of subsistence, in accordance with ex-
isting law. 
(g) FACA EXEMPTION.—The Secretary of Energy 
shall charter the Advisory Committee in accordance with 
the Federal Advisory Committee Act (5 U.S.C. App.), ex-
cept that the Advisory Committee shall be exempt from 
section 14 of such Act. 
SEC. 
5105. 
NATIONAL 
ACADEMIES 
ARTIFICIAL 
INTEL-
LIGENCE IMPACT STUDY ON WORKFORCE. 
(a) IN GENERAL.—Not later than 90 days after the 
date of the enactment of this Act, the National Science
2486 
Foundation shall enter into a contract with the National 
Research Council of the National Academies of Sciences, 
Engineering, and Medicine to conduct a study of the cur-
rent and future impact of artificial intelligence on the 
workforce of the United States across sectors. 
(b) CONTENTS.—The study shall address— 
(1) workforce impacts across sectors caused by 
the increased adoption of artificial intelligence, auto-
mation, and other related trends; 
(2) workforce needs and employment opportuni-
ties generated by the increased adoption of artificial 
intelligence across sectors; 
(3) opportunities for artificial intelligence to in-
crease the labor force participation of traditionally 
underrepresented populations, including minorities, 
low-income populations, and persons with disabil-
ities; 
(4) research gaps and data needed to better un-
derstand and track both workforce impacts and 
workforce needs and opportunities generated by 
adoption of artificial intelligence systems across sec-
tors; and 
(5) recommendations to address the challenges 
and opportunities described in paragraphs (1), (2), 
(3), and (4).
2487 
(c) STAKEHOLDERS.—In conducting the study, the 
National Academies of Sciences, Engineering, and Medi-
cine shall seek input from a wide range of stakeholders 
in the public and private sectors. 
(d) REPORT TO CONGRESS.—The contract entered 
into under subsection (a) shall require the National Acad-
emies of Sciences, Engineering, and Medicine, not later 
than 2 years after the date of the enactment of this Act, 
to— 
(1) submit to the Committee on Science, Space, 
and Technology of the House of Representatives and 
the Committee on Commerce, Science, and Trans-
portation of the Senate a report containing the find-
ings and recommendations of the study conducted 
under subsection (a); and 
(2) make a copy of such report available on a 
publicly accessible website. 
SEC. 5106. GAO REPORT ON COMPUTATIONAL NEEDS. 
(a) IN GENERAL.—Not later than 1 year after the 
date of the enactment of this Act, the Comptroller General 
of the United States shall conduct a study of artificial in-
telligence computer hardware and computing required in 
order to maintain United States leadership in artificial in-
telligence research and development. The Comptroller 
General shall—
2488 
(1) assess the composition of civilian computing 
resources supported by the Federal Government at 
universities and Federal Laboratories, including pro-
grams with laboratory computing, high performance 
computing, cloud computing, quantum computing, 
edge computing, and other computing resources; 
(2) evaluate projected needs for computing con-
sumption and performance required by the public 
and private sector for the training, auditing, valida-
tion, testing, and use of artificial intelligence over 
the next 5 years; and 
(3) offer recommendations to meet these pro-
jected needs. 
SEC. 5107. NATIONAL AI RESEARCH RESOURCE TASK 
FORCE. 
(a) ESTABLISHMENT OF TASK FORCE.— 
(1) ESTABLISHMENT.— 
(A) IN
GENERAL.—The Director of the 
National Science Foundation, in coordination 
with the Office of Science and Technology Pol-
icy, shall establish a task force— 
(i) to investigate the feasibility and 
advisability of establishing and sustaining 
a national artificial intelligence research 
resource; and
2489 
(ii) to propose a roadmap detailing 
how such resource should be established 
and sustained. 
(B) DESIGNATION.—The task force estab-
lished by subparagraph (A) shall be known as 
the ‘‘National Artificial Intelligence Research 
Resource Task Force’’ (in this section referred 
to as the ‘‘Task Force’’). 
(2) MEMBERSHIP.— 
(A) COMPOSITION.—The Task Force shall 
be composed of 12 members selected by the co- 
chairpersons of the Task Force from among 
technical experts in artificial intelligence or re-
lated subjects, of whom— 
(i) 4 shall be representatives from the 
Interagency Committee established in sec-
tion 5103, including the co-chairpersons of 
the Task Force; 
(ii) 4 shall be representatives from in-
stitutions of higher education (as such 
term is defined in section 101 of the High-
er Education Act of 1965 (20 U.S.C. 
1001)); and 
(iii) 4 shall be representatives from 
private organizations.
2490 
(B) APPOINTMENT.—Not later than 120 
days after enactment of this Act, the co-chair-
persons of the Task Force shall appoint mem-
bers to the Task Force pursuant to subpara-
graph (A). 
(C) TERM OF APPOINTMENT.—Members of 
the Task Force shall be appointed for the life 
of the Task Force. 
(D) VACANCY.—Any vacancy occurring in 
the membership of the Task Force shall be 
filled in the same manner in which the original 
appointment was made. 
(E) CO-CHAIRPERSONS.—The Director of 
the Office of Science and Technology Policy and 
the Director of the National Sciences Founda-
tion, or their designees, shall be the co-chair-
persons of the Task Force. If the role of the 
Director of the National Science Foundation is 
vacant, the Chair of the National Science Board 
shall act as a co-chairperson of the Task Force. 
(F) EXPENSES FOR NON-FEDERAL MEM-
BERS.—Non-Federal Members of the Task 
Force shall be allowed travel expenses, includ-
ing per diem in lieu of subsistence, at rates au-
thorized for employees under subchapter I of
2491 
chapter 57 of title 5, United States Code, while 
away from their homes or regular places of 
business in the performance of services for the 
Task Force. 
(b) ROADMAP AND IMPLEMENTATION PLAN.— 
(1) IN GENERAL.—The Task Force shall de-
velop a coordinated roadmap and implementation 
plan for creating and sustaining a National Artificial 
Intelligence Research Resource. 
(2) CONTENTS.—The roadmap and plan re-
quired by paragraph (1) shall include the following: 
(A) 
Goals 
for 
establishment 
and 
sustainment of a national artificial intelligence 
research resource and metrics for success. 
(B) A plan for ownership and administra-
tion of the National Artificial Intelligence Re-
search Resource, including— 
(i) an appropriate agency or organiza-
tion responsible for the implementation, 
deployment, and administration of the Re-
source; and 
(ii) a governance structure for the re-
source, including oversight and decision- 
making authorities.
2492 
(C) A model for governance and oversight 
to establish strategic direction, make pro-
grammatic decisions, and manage the allocation 
of resources. 
(D) Capabilities required to create and 
maintain a shared computing infrastructure to 
facilitate access to computing resources for re-
searchers 
across 
the 
country, 
including 
scalability, secured access control, resident data 
engineering and curation expertise, provision of 
curated, data sets, compute resources, edu-
cational tools and services, and a user interface 
portal. 
(E) An assessment of, and recommend so-
lutions to, barriers to the dissemination and use 
of high-quality government data sets as part of 
the national artificial intelligence research re-
source. 
(F) An assessment of security require-
ments associated with the national artificial in-
telligence research resource and its research 
and recommend a framework for the manage-
ment of access controls. 
(G) An assessment of privacy and civil lib-
erties requirements associated with the national
2493 
artificial intelligence research resource and its 
research. 
(H) A plan for sustaining the resources, 
including through Federal funding and partner-
ships with the private sector. 
(I) The parameters for the establishment 
and sustainment of the national artificial intel-
ligence resource, including agency roles and re-
sponsibilities and milestones to implement the 
resource. 
(c) CONSULTATIONS.—In conducting its duties re-
quired under subsection (b), the Task Force shall consult 
with the following: 
(1) The National Science Foundation. 
(2) The Office of Science and Technology Pol-
icy. 
(3) The National Academies of Sciences, Engi-
neering, and Medicine. 
(4) The National Institute of Standards and 
Technology. 
(5) The Defense Advanced Research Projects 
Agency. 
(6) 
The 
Intelligence 
Advanced 
Research 
Projects Activity. 
(7) The Department of Energy.
2494 
(8) The Department of Defense. 
(9) The General Services Administration. 
(10) Private industry. 
(11) Institutions of higher education. 
(12) Such other persons as the Task Force con-
siders appropriate. 
(d) STAFF.—Staff of the Task Force shall comprise 
detailees with expertise in artificial intelligence, or related 
fields from the Office of Science and Technology Policy, 
the National Science Foundation, or any other agency the 
co-chairs deem appropriate, with the consent of the head 
of the agency. The co-chairs shall also be authorized to 
hire staff from outside the Federal government for the du-
ration of the task force. 
(e) TASK FORCE REPORTS.— 
(1) INITIAL
REPORT.—Not later than 12 
months after the date on which all of the appoint-
ments have been made under subsection (a)(2)(B), 
the Task Force shall submit to Congress and the 
President an interim report containing the findings, 
conclusions, and recommendations of the Task 
Force. The report shall include specific recommenda-
tions regarding steps the Task Force believes nec-
essary for the establishment and sustainment of a 
national artificial intelligence research resource.
2495 
(2) FINAL REPORT.—Taking into account the 
findings of the Government Accountability Office re-
port required in section 106 of this Act, not later 
than 6 months after the submittal of the interim re-
port under paragraph (1), the Task Force shall sub-
mit to Congress and the President a final report 
containing the findings, conclusions, and rec-
ommendations of the Task Force, including the spe-
cific recommendations required by subsection (b). 
(f) TERMINATION.— 
(1) IN GENERAL.—The Task Force shall termi-
nate 90 days after the date on which it submits the 
final report under subsection (e)(2). 
(2) RECORDS.—Upon termination of the Task 
Force, all of its records shall become the records of 
the National Archives and Records Administration. 
(g) DEFINITIONS.—In this section: 
(1) NATIONAL ARTIFICIAL INTELLIGENCE RE-
SEARCH
RESOURCE
AND
RESOURCE.—The terms 
‘‘National Artificial Intelligence Research Resource’’ 
and ‘‘Resource’’ mean a system that provides re-
searchers and students across scientific fields and 
disciplines with access to compute resources, co-lo-
cated with publicly-available, artificial intelligence- 
ready government and non-government data sets and
2496 
a research environment with appropriate educational 
tools and user support. 
(2) 
OWNERSHIP.—The 
term 
‘‘ownership’’ 
means responsibility and accountability for the im-
plementation, deployment, and ongoing development 
of the National Artificial Intelligence Research Re-
source, and for providing staff support to that ef-
fort. 
SEC. 5108. SENSE OF CONGRESS. 
It is the sense of Congress that— 
(1) artificial intelligence systems have the po-
tential to transform every sector of the United 
States economy, boosting productivity, enhancing 
scientific research, and increasing U.S. competitive-
ness; and 
(2) the United States Government should use 
this Initiative to enable the benefits of trustworthy 
artificial intelligence while preventing the creation 
and use of artificial intelligence systems that behave 
in ways that cause harm, including— 
(A) high-risk systems that lack sufficient 
robustness to prevent adversarial attacks; 
(B) high-risk systems that harm the pri-
vacy or security of users or the general public;
2497 
(C) artificial general intelligence systems 
that may become self-aware or uncontrollable; 
and 
(D) artificial intelligence systems that may 
perpetuate societal biases against protected 
classes of persons, including on the basis of sex, 
race, age, disability, color, creed, national ori-
gin, or religion, or otherwise automate discrimi-
natory decision-making. 
SEC. 5109. RULE OF CONSTRUCTION REGARDING ETHICAL 
ARTIFICIAL INTELLIGENCE. 
For purposes of this division, the term ‘‘ethical’’ 
(when used in the context of artificial intelligence) shall 
be deemed to include efforts to minimize or eliminate dis-
criminatory algorithmic bias, particularly as it pertains to 
protected classes of persons, including on the basis of sex, 
race, age, disability, color, creed, national origin, or reli-
gion. 
TITLE II—NATIONAL ARTIFICIAL 
INTELLIGENCE RESEARCH IN-
STITUTES 
SEC. 
5201. 
NATIONAL 
ARTIFICIAL 
INTELLIGENCE 
RE-
SEARCH INSTITUTES. 
(a) IN GENERAL.—As part of the Initiative, the Di-
rector of the National Science Foundation shall establish
2498 
a program to award financial assistance for the planning, 
establishment, and support of Institutes (as described in 
subsection (b)(2)) in accordance with this section. 
(b) FINANCIAL ASSISTANCE TO ESTABLISH
AND 
SUPPORT
NATIONAL
ARTIFICIAL
INTELLIGENCE
RE-
SEARCH INSTITUTES.— 
(1) IN
GENERAL.—Under the Initiative, the 
Secretary of Energy, the Secretary of Commerce, 
the Director of the National Science Foundation, 
and every other agency head may award financial 
assistance to an eligible entity, or consortia thereof, 
as determined by an agency head, to establish and 
support an Institute. 
(2) ARTIFICIAL INTELLIGENCE INSTITUTES.— 
An Institute described in this subsection is an artifi-
cial intelligence research institute that— 
(A) is focused on— 
(i) a particular economic or social sec-
tor, including health, education, manufac-
turing, agriculture, security, energy, and 
environment, and includes a component 
that addresses the ethical, societal, safety, 
and security implications relevant to the 
application of artificial intelligence in that 
sector; or
2499 
(ii) a cross-cutting challenge for artifi-
cial intelligence systems, including trust-
worthiness, or foundational science; 
(B) requires partnership among public and 
private organizations, including, as appropriate, 
Federal agencies, research universities, commu-
nity colleges, nonprofit research organizations, 
Federal laboratories, State, local, and tribal 
governments, and industry (or consortia there-
of); 
(C) has the potential to create an innova-
tion ecosystem, or enhance existing ecosystems, 
to translate Institute research into applications 
and products, as appropriate to the topic of 
each Institute; 
(D) supports interdisciplinary research and 
development across multiple institutions and or-
ganizations involved in artificial intelligence re-
search and related disciplines, including phys-
ics, engineering, mathematical sciences, com-
puter and information science, robotics, biologi-
cal and cognitive sciences, material science, so-
cial and behavioral sciences, cybersecurity, and 
technology ethics;
2500 
(E) supports interdisciplinary education 
activities, including curriculum development, re-
search experiences, and faculty professional de-
velopment across two-year, undergraduates, 
masters, and doctoral level programs; and 
(F) supports workforce development in ar-
tificial intelligence related disciplines in the 
United States, including broadening participa-
tion of underrepresented communities. 
(3) USE
OF
FUNDS.—Financial assistance 
awarded under paragraph (1) may be used by an In-
stitute for— 
(A) managing and making available to re-
searchers accessible, curated, standardized, se-
cure, and privacy protected data sets from the 
public and private sectors for the purposes of 
training and testing artificial intelligence sys-
tems and for research using artificial intel-
ligence systems, pursuant to section 5301(b) 
and 5301(c); 
(B) developing and managing testbeds for 
artificial intelligence systems, including sector- 
specific test beds, designed to enable users to 
evaluate artificial intelligence systems prior to 
deployment;
2501 
(C) conducting research and education ac-
tivities involving artificial intelligence systems 
to solve challenges with social, economic, health, 
scientific, and national security implications; 
(D) providing or brokering access to com-
puting resources, networking, and data facilities 
for artificial intelligence research and develop-
ment relevant to the Institute’s research goals; 
(E) providing technical assistance to users, 
including software engineering support, for arti-
ficial intelligence research and development rel-
evant to the Institute’s research goals; 
(F) engaging in outreach and engagement 
to broaden participation in artificial intelligence 
research and workforce; and 
(G) such other activities that an agency 
head, whose agency’s missions contribute to or 
are affected by artificial intelligence, considers 
consistent with the purposes described in sec-
tion 5101(a). 
(4) DURATION.— 
(A) INITIAL PERIODS.—An award of finan-
cial assistance under paragraph (1) shall be 
awarded for an initial period of 5 years.
2502 
(B) EXTENSION.—An established Institute 
may apply for, and the agency head may grant, 
extended funding for periods of 5 years on a 
merit-reviewed basis using the merit review cri-
teria of the sponsoring agency. 
(5) APPLICATION
FOR
FINANCIAL
ASSIST-
ANCE.— 
(A) IN GENERAL.—A person or group of 
persons seeking financial assistance under para-
graph (1) shall submit to an agency head an 
application at such time, in such manner, and 
containing such information as the agency head 
may require. 
(B) REQUIREMENTS.—An application sub-
mitted under subparagraph (A) for an Institute 
shall, at a minimum, include the following: 
(i) A plan for the Institute to in-
clude— 
(I) the proposed goals and activi-
ties of the Institute; 
(II) how the Institute will form 
partnerships with other research insti-
tutions, industry, and nonprofits to le-
verage expertise in artificial intel-
ligence and access to data, including
2503 
non-governmental data and computing 
resources; 
(III) how the institute will sup-
port long-term and short-term edu-
cation and workforce development in 
artificial intelligence, including broad-
ening 
participation 
of 
underrep-
resented communities; and 
(IV) a plan for how the Institute 
will transition from planning into op-
erations. 
(ii) A description of the anticipated 
sources and nature of any non-Federal 
contributions, including privately held data 
sets, computing resources, and other types 
of in-kind support. 
(iii) A description of the anticipated 
long-term impact of such Institute. 
(6) COMPETITIVE, MERIT REVIEW.—In award-
ing financial assistance under paragraph (1), the 
agency head shall— 
(A) use a competitive, merit review process 
that includes peer review by a diverse group of 
individuals with relevant expertise from both 
the private and public sectors; and
2504 
(B) ensure the focus areas of the Institute 
do not substantially duplicate the efforts of any 
other Institute. 
(7) COLLABORATION.— 
(A) IN GENERAL.—In awarding financial 
assistance under paragraph (1), an agency head 
may collaborate with Federal departments and 
agencies whose missions contribute to or are af-
fected by artificial intelligence systems, includ-
ing the agencies outlined in section 5103(c). 
(B) COORDINATING
NETWORK.—The Di-
rector of the National Science Foundation shall 
establish a network of Institutes receiving fi-
nancial assistance under this subsection, to be 
known as the ‘‘Artificial Intelligence Leadership 
Network’’, to coordinate cross-cutting research 
and other activities carried out by the Insti-
tutes. 
(C) FUNDING.—The head of an agency 
may request, accept, and provide funds from 
other Federal departments and agencies, State, 
United States territory, local, or tribal govern-
ment agencies, private sector for-profit entities, 
and nonprofit entities, to be available to the ex-
tent provided by appropriations Acts, to support
2505 
an Institute’s activities. The head of an agency 
may not give any special consideration to any 
agency or entity in return for a donation. 
TITLE III—DEPARTMENT OF 
COMMERCE 
SEC. 5301. NATIONAL INSTITUTE OF STANDARDS AND 
TECHNOLOGY ACTIVITIES. 
(a) IN GENERAL.—As part of the Initiative, the Di-
rector of the National Institute of Standards and Tech-
nology shall— 
(1) support measurement research and develop-
ment of best practices and voluntary standards for 
trustworthy artificial intelligence systems, including 
for— 
(A) privacy and security, including for 
datasets used to train or test artificial intel-
ligence systems and software and hardware 
used in artificial intelligence systems; 
(B) advanced computer chips and hard-
ware designed for artificial intelligence systems; 
(C) data management and techniques to 
increase the usability of data, including strate-
gies to systematically clean, label, and stand-
ardize data into forms useful for training artifi-
2506 
cial intelligence systems and the use of com-
mon, open licenses; 
(D) safety and robustness of artificial in-
telligence 
systems, 
including 
assurance, 
verification, validation, security, control, and 
the ability for artificial intelligence systems to 
withstand unexpected inputs and adversarial at-
tacks; 
(E) auditing mechanisms and benchmarks 
for accuracy, transparency, verifiability, and 
safety assurance for artificial intelligence sys-
tems; 
(F) applications of machine learning and 
artificial intelligence systems to improve other 
scientific fields and engineering; 
(G) model documentation, including per-
formance metrics and constraints, measures of 
fairness, training and testing processes, and re-
sults; 
(H) system documentation, including con-
nections and dependences within and between 
systems, and complications that may arise from 
such connections; and
2507 
(I) all other areas deemed by the Director 
to be critical to the development and deploy-
ment of trustworthy artificial intelligence; 
(2) produce curated, standardized, representa-
tive, secure, and privacy protected data sets for arti-
ficial intelligence research, development, and use, 
prioritizing data for high-value, high-risk research; 
(3) support one or more institutes as described 
in section 5201(a) for the purpose of advancing the 
field of artificial intelligence; 
(4) support and strategically engage in the de-
velopment of voluntary consensus standards, includ-
ing international standards, through open, trans-
parent, and consensus-based processes; 
(5) taking into account the findings from the 
National Academies study in section 5105, develop 
taxonomies and lexica to describe artificial intel-
ligence tasks, knowledge, skills, abilities, com-
petencies, and work roles to guide career develop-
ment, education, and training activities in industry, 
academia, nonprofit organizations, and the Federal 
government, identify workforce gaps in the public 
and private sector, and create criteria and measure-
ment for credentials in artificial intelligence-related 
careers; and
2508 
(6) enter into and perform such contracts, in-
cluding cooperative research and development ar-
rangements and grants and cooperative agreements 
or other transactions, as may be necessary in the 
conduct of the work of the National Institute of 
Standards and Technology and on such terms as the 
Director considers appropriate, in furtherance of the 
purposes of this division. 
(b) RISK MANAGEMENT FRAMEWORK.—Not later 
than 2 years after the date of the enactment of this Act, 
the Director shall work to develop, and periodically up-
date, in collaboration with other public and private sector 
organizations, including the National Science Foundation 
and the Department of Energy, a voluntary risk manage-
ment framework for the trustworthiness of artificial intel-
ligence systems. The framework shall— 
(1) identify and provide standards, guidelines, 
best practices, methodologies, procedures, and proc-
esses for assessing the trustworthiness of, and miti-
gating risks to, artificial intelligence systems; 
(2) establish common definitions and character-
izations for aspects and levels of trustworthiness, in-
cluding explainability, transparency, safety, privacy, 
security, robustness, fairness, bias, ethics, validation, 
verification, interpretability, and other properties re-
2509 
lated to artificial intelligence systems that are com-
mon across all sectors; 
(3) provide guidance and implementation steps 
for risk management of artificial intelligence sys-
tems; 
(4) provide sector-specific case studies of imple-
mentation of the framework; 
(5) align with voluntary consensus standards, 
including international standards, to the fullest ex-
tent possible; 
(6) incorporate voluntary consensus standards 
and industry best practices; and 
(7) not prescribe or otherwise require— 
(A) the use of specific solutions; or 
(B) the use of specific information or com-
munications technology products or services. 
(c) DATA SHARING
AND DOCUMENTATION BEST 
PRACTICES.—Not later than 1 year after the date of en-
actment of this Act, the Director shall, in collaboration 
with other public and private sector organizations, develop 
guidance to facilitate the creation of voluntary data shar-
ing arrangements between industry, federally funded re-
search centers, and Federal agencies for the purpose of 
advancing artificial intelligence research and technologies, 
including—
2510 
(1) options for partnership models between gov-
ernment entities, industry, universities, and non-
profits that incentivize each party to share the data 
they collected; and 
(2) best practices for datasets used to train ar-
tificial intelligence systems, including— 
(A) standards for metadata that describe 
the properties of datasets, including— 
(i) the origins of the data; 
(ii) the intent behind the creation of 
the data; 
(iii) authorized uses of the data; 
(iv) descriptive characteristics of the 
data, including what populations are in-
cluded and excluded from the datasets; and 
(v) any other properties as determined 
by the Director; and 
(B) standards for privacy and security of 
datasets with human characteristics. 
(d) STAKEHOLDER OUTREACH.—In carrying out the 
activities under this subsection, the Director shall— 
(1) solicit input from university researchers, 
private sector experts, relevant Federal agencies, 
Federal laboratories, State and local governments, 
civil society groups, and other relevant stakeholders;
2511 
(2) solicit input from experts in relevant fields 
of social science, technology ethics, and law; and 
(3) provide opportunity for public comment on 
guidelines and best practices developed as part of 
the Initiative, as appropriate. 
(e) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the National Institute 
of Standards and Technology to carry out this section 
$64,000,000 for fiscal year 2021. 
SEC. 5302. NATIONAL OCEANIC AND ATMOSPHERIC ADMIN-
ISTRATION ARTIFICIAL INTELLIGENCE CEN-
TER. 
(a) IN GENERAL.—The Administrator of the Na-
tional Oceanic and Atmospheric Administration (hereafter 
referred to as ‘‘the Administrator’’) shall establish, a Cen-
ter for Artificial Intelligence (hereafter referred to as ‘‘the 
Center’’). 
(b) CENTER GOALS.—The goals of the Center shall 
be to— 
(1) coordinate and facilitate the scientific and 
technological efforts across the National Oceanic and 
Atmospheric Administration; and 
(2) expand external partnerships, and build 
workforce proficiency to effectively transition artifi-
cial intelligence applications to operations.
2512 
(c) CENTER PRIORITIES.—Through the Center, the 
Administrator shall implement a comprehensive program 
to improve the use of artificial intelligence systems across 
the agency in support of the mission of the National Oce-
anic and Atmospheric Administration. The priorities of 
the Center shall be to— 
(1) coordinate and facilitate artificial intel-
ligence research and innovation, tools, systems, and 
capabilities across the National Oceanic and Atmos-
pheric Administration; 
(2) establish data standards and develop and 
maintain a central repository for agency-wide artifi-
cial intelligence applications; 
(3) accelerate the transition of artificial intel-
ligence research to applications in support of the 
mission of the National Oceanic and Atmospheric 
Administration; 
(4) develop and conduct training for the work-
force of the National Oceanic and Atmospheric Ad-
ministration related to artificial intelligence research 
and application of artificial intelligence for such 
agency; 
(5) facilitate partnerships between the National 
Oceanic and Atmospheric Administration and other 
public sector organizations, private sector organiza-
2513 
tions, and institutions of higher education for re-
search, personnel exchange, and workforce develop-
ment with respect to artificial intelligence systems; 
and 
(6) make data of the National Oceanic and At-
mospheric Administration accessible, available, and 
ready for artificial intelligence applications. 
(d) STAKEHOLDER ENGAGEMENT.—In carrying out 
the activities authorized in this section, the Administrator 
shall— 
(1) collaborate with a diverse set of stake-
holders including private sector entities and institu-
tions of higher education; 
(2) leverage the collective body of research on 
artificial intelligence and machine learning; and 
(3) engage with relevant Federal agencies, re-
search communities, and potential users of informa-
tion produced under this section. 
(e) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Administrator to 
carry out this section $10,000,000 for fiscal year 2021.
2514 
TITLE IV—NATIONAL SCIENCE 
FOUNDATION ARTIFICIAL IN-
TELLIGENCE ACTIVITIES 
SEC. 5401. ARTIFICIAL INTELLIGENCE RESEARCH AND 
EDUCATION. 
(a) IN GENERAL.—As part of the Initiative, the Di-
rector of the National Science Foundation shall fund re-
search and education activities in artificial intelligence sys-
tems and related fields, including competitive awards or 
grants to institutions of higher education or eligible non-
profit organizations (or consortia thereof). 
(b) USES OF FUNDS.—In carrying out the activities 
under subsection (a), the Director of the National Science 
Foundation shall— 
(1) support research, including interdisciplinary 
research on artificial intelligence systems and related 
areas; 
(2) support collaborations among researchers 
across disciplines, including between social scientists 
and computer and data scientists, to advance re-
search critical to the development and deployment of 
trustworthy artificial intelligence systems, including 
support for interdisciplinary research relating ad-
vances in artificial intelligence to changes in the fu-
ture workplace, in a social and economic context;
2515 
(3) use the existing programs of the National 
Science Foundation, in collaboration with other Fed-
eral departments and agencies, as appropriate to— 
(A) improve the teaching and learning of 
artificial intelligence systems at all levels of 
education; and 
(B) increase participation in artificial intel-
ligence related fields, including by individuals 
identified in sections 33 and 34 of the Science 
and Engineering Equal Opportunity Act (42 
U.S.C. 1885a and 1885b); 
(4) engage with institutions of higher edu-
cation, research communities, industry, Federal lab-
oratories, nonprofit organizations, State and local 
governments, and potential users of information pro-
duced under this section, including through the con-
vening of workshops and conferences, to leverage the 
collective body of knowledge across disciplines rel-
evant to artificial intelligence, facilitate new collabo-
rations and partnerships, and identify emerging re-
search needs; 
(5) support partnerships among institutions of 
higher education and industry that facilitate collabo-
rative research, personnel exchanges, and workforce
2516 
development with respect to artificial intelligence 
systems; 
(6) ensure adequate access to research and edu-
cation infrastructure with respect to artificial intel-
ligence systems, including through the development 
of new computing resources and partnership with 
the private sector for the provision of cloud-based 
computing services; 
(7) conduct prize competitions, as appropriate, 
pursuant to section 24 of the Stevenson-Wydler 
Technology Innovation Act of 1980 (15 U.S.C. 
3719); 
(8) coordinate research efforts funded through 
existing programs across the directorates of the Na-
tional Science Foundation; 
(9) provide guidance on data sharing by grant-
ees to public and private sector organizations con-
sistent with the standards and guidelines developed 
under section 5301(c); and 
(10) evaluate opportunities for international 
collaboration with strategic allies on artificial intel-
ligence research and development. 
(c) 
ARTIFICIAL
INTELLIGENCE
RESEARCH 
GRANTS.—
2517 
(1) IN
GENERAL.—The Director shall award 
grants for research on artificial intelligence systems. 
Research areas may include— 
(A) artificial intelligence systems, including 
machine learning, computer vision, robotics, 
and hardware for accelerating artificial intel-
ligence systems; 
(B) artificial intelligence-enabled systems; 
(C) fields and research areas that will con-
tribute to the advancement of artificial intel-
ligence systems, including information theory, 
causal and statistical inference, data mining, in-
formation extraction, human-robot interaction, 
and intelligent interfaces; 
(D) fields and research areas that increase 
understanding of human characteristics relevant 
to artificial intelligence systems, including com-
putational neuroscience, reasoning and rep-
resentation, speech and language, multi-agent 
systems, intelligent interfaces, human-artificial 
intelligence cooperation, and artificial intel-
ligence-augmented human problem solving; 
(E) fields and research areas that increase 
understanding of learning, adaptability, and re-
silience beyond the human cognitive model, in-
2518 
cluding topics in developmental biology, zoology, 
botany, 
morphological 
computation, 
and 
organismal systems; 
(F) fields and research areas that will con-
tribute to the development and deployment of 
trustworthy artificial intelligence systems, in-
cluding— 
(i) algorithmic explainability; 
(ii) methods to assess, characterize, 
and reduce bias in datasets and artificial 
intelligence systems; and 
(iii) safety and robustness of artificial 
intelligence systems, including assurance, 
verification, validation, security, and con-
trol; 
(G) privacy and security, including for 
datasets used for the training and inference of 
artificial intelligence systems, and software and 
hardware used in artificial intelligence systems; 
(H) fields and research areas that address 
the application of artificial intelligence systems 
to scientific discovery and societal challenges, 
including economic and public health emer-
gencies;
2519 
(I) societal, ethical, safety, education, 
workforce, and security implications of artificial 
intelligence systems, including social impact of 
artificial 
intelligence 
systems 
on 
different 
groups within society, especially historically 
marginalized groups; and 
(J) qualitative and quantitative forecasting 
of future capabilities, applications, and impacts. 
(2) ENGINEERING SUPPORT.—In soliciting pro-
posals for funding under this section, the Director 
shall permit applicants to include in their proposed 
budgets funding for software engineering support to 
assist with the proposed research. 
(3) ETHICS.— 
(A) SENSE OF CONGRESS.—It is the sense 
of Congress that— 
(i) a number of emerging areas of re-
search, including artificial intelligence, 
have potential ethical, social, safety, and 
security implications that might be appar-
ent as early as the basic research stage; 
(ii) the incorporation of ethical, social, 
safety, and security considerations into the 
research design and review process for
2520 
Federal awards may help mitigate poten-
tial harms before they happen; 
(iii) the National Science Founda-
tion’s intent to enter into an agreement 
with the National Academies of Sciences, 
Engineering, and Medicine to conduct a 
study and make recommendations with re-
spect to governance of research in emerg-
ing technologies is a positive step toward 
accomplishing this goal; and 
(iv) the National Science Foundation 
should continue to work with stakeholders 
to understand and adopt policies that pro-
mote best practices for governance of re-
search in emerging technologies at every 
stage of research. 
(B) ETHICS STATEMENTS.— 
(i) IN GENERAL.—Not later than 18 
months after the date of enactment of this 
Act, the Director shall amend grant pro-
posal instructions to include a requirement 
for an ethics statement to be included as 
part of any proposal for funding prior to 
making the award. Such statement shall be 
considered by the Director in the review of
2521 
proposals, taking into consideration any 
relevant input from the peer-reviewers for 
the proposal, and shall factor into award 
decisions as deemed necessary by the Di-
rector. 
(ii) 
CONTENTS.—Such 
statements 
may include, as appropriate— 
(I) the potential societal benefits 
of the research; 
(II) any foreseeable or quantifi-
able risks to society, including how 
the research could enable products, 
technologies, or other outcomes that 
could intentionally or unintentionally 
cause significant societal harm; and 
(III) how technical or social solu-
tions can mitigate such risks and, as 
appropriate, a plan to implement such 
mitigation measures. 
(iii) GUIDANCE.—The Director shall 
issue clear guidance on what constitutes a 
foreseeable or quantifiable risk described in 
clause (ii)(II), and to the extent practical 
harmonize this policy with existing ethical
2522 
policies or related requirements for human 
subjects. 
(iv) ANNUAL REPORTS.—The Director 
shall encourage grantees to update their 
ethics statements as appropriate as part of 
the annual reports required by all grantees 
under the grant terms and conditions. 
(d) EDUCATION.— 
(1) IN GENERAL.—The Director of the National 
Science Foundation shall award grants for education 
programs at the K–12, community college, under-
graduate, graduate, postdoctoral, adult learning, and 
retraining stages of education that— 
(A) support the development of a diverse 
workforce pipeline for science and technology 
with respect to artificial intelligence systems; 
(B) increase awareness of ethical, social, 
safety, and security implications of artificial in-
telligence systems; and 
(C) promote the widespread understanding 
of artificial intelligence principles and methods 
to create an educated workforce and general 
public able to use products enabled by artificial 
intelligence systems and adapt to future societal
2523 
and economic changes caused by artificial intel-
ligence systems. 
(2) USE
OF
FUNDS.—Grants awarded under 
this section for education activities referred to in 
paragraph (1) may be used for— 
(A) collaborative interdisciplinary research, 
development, testing, and dissemination of K– 
12, undergraduate, and community college cur-
riculum development, dissemination, and other 
educational tools and methods in artificial intel-
ligence related fields; 
(B) curriculum development in the field of 
technology ethics; 
(C) support for informal education activi-
ties for K–12 students to engage with artificial 
intelligence systems, including mentorship pro-
grams for underrepresented populations; 
(D) efforts to achieve equitable access to 
K–12 artificial intelligence education for popu-
lations and geographic areas traditionally 
underrepresented in the artificial intelligence 
field; 
(E) training and professional development 
programs, including innovative pre-service and
2524 
in-service programs, in artificial intelligence and 
related fields for K–12 teachers; 
(F) efforts to improve the retention rate 
for researchers focusing on artificial intelligence 
systems at institutions of higher learning and 
other nonprofit research institutions; 
(G) outreach programs to educate the gen-
eral public about the uses of artificial intel-
ligence and its societal implications; 
(H) assessments of activities conducted 
under this subsection; and 
(I) any other relevant activities the Direc-
tor determines will accomplish the aim de-
scribed in paragraph (1). 
(3) ARTIFICIAL INTELLIGENCE TRAINEESHIPS 
AND FELLOWSHIPS.— 
(A) 
ARTIFICIAL
INTELLIGENCE 
TRAINEESHIPS.— 
(i) IN GENERAL.—The Director of the 
National Science Foundation shall award 
grants to institutions of higher education 
to establish traineeship programs for grad-
uate students who pursue artificial intel-
ligence-related research leading to a mas-
ters or doctorate degree by providing fund-
2525 
ing and other assistance, and by providing 
graduate students opportunities for re-
search experiences in government or indus-
try related to the students’ artificial intel-
ligence studies. 
(ii) USE OF FUNDS.—An institution 
of higher education shall use grant funds 
provided under clause (i) for the purposes 
of— 
(I) providing traineeships to stu-
dents who are pursuing research in 
artificial intelligence leading to a mas-
ters or doctorate degree; 
(II) paying tuition and fees for 
students receiving traineeships who 
are citizens, nationals, or lawfully ad-
mitted permanent resident aliens of 
the United States; 
(III) 
creating 
and 
requiring 
courses or training programs in tech-
nology ethics for students receiving 
traineeships; 
(IV) creating opportunities for 
research in technology ethics for stu-
dents receiving traineeships;
2526 
(V) establishing scientific intern-
ship programs for students receiving 
traineeships in artificial intelligence at 
for-profit institutions, nonprofit re-
search institutions, or government lab-
oratories; and 
(VI) other costs associated with 
the administration of the program. 
(B) ARTIFICIAL
INTELLIGENCE
FELLOW-
SHIPS.—The Director of the National Science 
Foundation shall award fellowships to masters 
and doctoral students and postdoctoral re-
searchers at institutions of higher education 
who are pursuing degrees or research in artifi-
cial intelligence and related fields, including in 
the field of technology ethics. In making such 
awards, the Director shall— 
(i) ensure recipients of artificial intel-
ligence fellowships are citizens, nationals, 
or lawfully admitted permanent resident 
aliens of the United States; and 
(ii) 
conduct 
outreach, 
including 
through formal solicitations, to solicit pro-
posals from students and postdoctoral re-
searchers seeking to carry out research in
2527 
aspects of technology ethics with relevance 
to artificial intelligence systems. 
(C) FACULTY
RECRUITMENT
FELLOW-
SHIPS.— 
(i) IN GENERAL.—The Director of the 
National Science Foundation shall estab-
lish a program to award grants to institu-
tions of higher education to recruit and re-
tain tenure-track or tenured faculty in ar-
tificial intelligence and related fields. 
(ii) USE OF FUNDS.—An institution 
of higher education shall use grant funds 
provided under clause (i) for the purposes 
of— 
(I) recruiting new tenure-track or 
tenured faculty members to that con-
duct research and teaching in artifi-
cial intelligence and related fields and 
research areas, including technology 
ethics; and 
(II) paying salary and benefits 
for the academic year of newly re-
cruited tenure-track or tenured fac-
ulty members for a duration of up to 
3 years.
2528 
(D) FACULTY TECHNOLOGY ETHICS FEL-
LOWSHIPS.— 
(i) IN GENERAL.—The Director of the 
National Science Foundation shall estab-
lish a program to award fellowships to ten-
ure-track and tenured faculty in social and 
behavioral sciences, ethics, law, and related 
fields to develop new research projects and 
partnerships in technology ethics, in col-
laboration with faculty conducting empir-
ical research in artificial intelligence and 
related fields. 
(ii) PURPOSES.—The purposes of such 
fellowships are to enable researchers in so-
cial and behavioral sciences, ethics, law, 
and related fields to establish new research 
and education partnerships with research-
ers in artificial intelligence and related 
fields; learn new techniques and acquire 
systematic knowledge in artificial intel-
ligence and related fields; shift their re-
search to focus on technology ethics; and 
mentor and advise graduate students and 
postdocs pursuing research in technology 
ethics.
2529 
(iii) USES OF FUNDS.—A fellowship 
may include salary and benefits for up to 
one academic year and additional expenses 
to support coursework or equivalent train-
ing in artificial intelligence systems. 
(E) UPDATE TO ROBERT NOYCE TEACHER 
SCHOLARSHIP
PROGRAM.—Section 10(i)(5) of 
the National Science Foundation Authorization 
Act of 2002 (42 U.S.C. 1862n–1(i)(5)) is 
amended by inserting ‘‘and artificial intel-
ligence’’ after ‘‘computer science’’. 
(4) UPDATE
TO
ADVANCED
TECHNOLOGICAL 
EDUCATION PROGRAM.— 
(A) IN GENERAL.—Section 3(b) of the Sci-
entific and Advanced-Technology Act of 1992 
(42 U.S.C. 1862(i)) is amended by striking 
‘‘10’’ and inserting ‘‘12’’. 
(B) ARTIFICIAL
INTELLIGENCE
CENTERS 
OF
EXCELLENCE.—The Director of the Na-
tional Science Foundation shall establish na-
tional centers of scientific and technical edu-
cation to advance education and workforce de-
velopment in areas related to artificial intel-
ligence pursuant to Section 3 of the Scientific 
and Advanced-Technology Act of 1992 (42
2530 
U.S.C. 1862(i)). Activities of such centers may 
include— 
(i) the development, dissemination, 
and evaluation of curriculum and other 
educational tools and methods in artificial 
intelligence related fields and research 
areas, including technology ethics; 
(ii) the development and evaluation of 
artificial intelligence related certifications 
for 2-year programs; and 
(iii) interdisciplinary science and engi-
neering 
research 
in 
employment-based 
adult learning and career retraining re-
lated to artificial intelligence fields. 
(e) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the National Science 
Foundation to carry out this section $868,000,000 for fis-
cal year 2021.
2531 
TITLE V—DEPARTMENT OF EN-
ERGY 
ARTIFICIAL 
INTEL-
LIGENCE 
RESEARCH 
PRO-
GRAM 
SEC. 5501. DEPARTMENT OF ENERGY ARTIFICIAL INTEL-
LIGENCE RESEARCH PROGRAM. 
(a) IN GENERAL.—The Secretary shall carry out a 
cross-cutting research and development program to ad-
vance artificial intelligence tools, systems, capabilities, and 
workforce needs and to improve the reliability of artificial 
intelligence methods and solutions relevant to the mission 
of the Department. In carrying out this program, the Sec-
retary shall coordinate across all relevant offices and pro-
grams at the Department, including the Office of Science, 
the Office of Energy Efficiency and Renewable Energy, 
the Office of Nuclear Energy, the Office of Fossil Energy, 
the Office of Electricity, the Office of Cybersecurity, En-
ergy Security, and Emergency Response, the Advanced 
Research Projects Agency-Energy, and any other relevant 
office determined by the Secretary. 
(b) RESEARCH AREAS.—In carrying out the program 
under subsection (a), the Secretary shall award financial 
assistance to eligible entities to carry out research projects 
on topics including—
2532 
(1) the application of artificial intelligence sys-
tems to improve large-scale simulations of natural 
and other phenomena; 
(2) the study of applied mathematics, computer 
science, and statistics, including foundations of 
methods and systems of artificial intelligence, causal 
and statistical inference, and the development of al-
gorithms for artificial intelligence systems; 
(3) the analysis of existing large-scale datasets 
from science and engineering experiments and sim-
ulations, including energy simulations and other pri-
orities at the Department as determined by the Sec-
retary using artificial intelligence tools and tech-
niques; 
(4) the development of operation and control 
systems that enhance automated, intelligent deci-
sionmaking capabilities; 
(5) the development of advanced computing 
hardware and computer architecture tailored to arti-
ficial intelligence systems, including the codesign of 
networks and computational hardware; 
(6) the development of standardized datasets 
for emerging artificial intelligence research fields 
and applications, including methods for addressing 
data scarcity; and
2533 
(7) the development of trustworthy artificial in-
telligence systems, including— 
(A) algorithmic explainability; 
(B) analytical methods for identifying and 
mitigating bias in artificial intelligence systems; 
and 
(C) safety and robustness, including assur-
ance, verification, validation, security, and con-
trol. 
(c) TECHNOLOGY TRANSFER.—In carrying out the 
program under subsection (a), the Secretary shall support 
technology transfer of artificial intelligence systems for the 
benefit of society and United States economic competitive-
ness. 
(d) FACILITY USE AND UPGRADES.—In carrying out 
the program under subsection (a), the Secretary shall— 
(1) make available high-performance computing 
infrastructure at national laboratories; 
(2) make any upgrades necessary to enhance 
the use of existing computing facilities for artificial 
intelligence systems, including upgrades to hard-
ware; 
(3) establish new computing capabilities nec-
essary to manage data and conduct high perform-
2534 
ance computing that enables the use of artificial in-
telligence systems; and 
(4) maintain and improve, as needed, net-
working infrastructure, data input and output mech-
anisms, and data analysis, storage, and service capa-
bilities. 
(e) ETHICS.— 
(1) IN GENERAL.—Not later than 18 months 
after the date of enactment of this Act, the Sec-
retary shall amend grant proposal instructions to in-
clude a requirement for an ethics statement to be in-
cluded as part of any proposal for funding prior to 
making the award. Such statement shall be consid-
ered by the Secretary in the review of proposals, tak-
ing into consideration any relevant input from the 
peer-reviewers for the proposal, and shall factor into 
award decisions as deemed necessary by the Sec-
retary. Such statements may include, as appro-
priate— 
(A) the potential societal benefits of the re-
search; 
(B) any foreseeable or quantifiable risks to 
society, including how the research could enable 
products, technologies, or other outcomes that
2535 
could intentionally or unintentionally cause sig-
nificant societal harm; and 
(C) how technical or social solutions can 
mitigate such risks and, as appropriate, a plan 
to implement such mitigation measures. 
(2) GUIDANCE.—The Secretary shall issue clear 
guidance on what constitutes risks as described in 
section (1)(B), and to the extent practical harmonize 
this policy with existing ethical policies or related re-
quirements for human subjects. 
(3) ANNUAL
REPORTS.—The Secretary shall 
encourage awardees to update their ethics state-
ments as appropriate as part of the annual reports 
required by all awardees under the grant terms and 
conditions. 
(f) RISK MANAGEMENT.—The Secretary shall review 
agency policies for risk management in artificial intel-
ligence related projects and issue as necessary policies and 
principles that are consistent with the framework devel-
oped under section 5301(b). 
(g) DATA PRIVACY AND SHARING.—The Secretary 
shall review agency policies for data sharing with other 
public and private sector organizations and issue as nec-
essary policies and principles that are consistent with the 
standards and guidelines submitted under section 5301(c).
2536 
In addition, the Secretary shall establish a streamlined 
mechanism for approving research projects or partner-
ships that require sharing sensitive public or private data 
with the Department. 
(h) PARTNERSHIPS WITH OTHER FEDERAL AGEN-
CIES.—The Secretary may request, accept, and provide 
funds from other Federal departments and agencies, 
State, United States territory, local, or Tribal government 
agencies, private sector for-profit entities, and nonprofit 
entities, to be available to the extent provided by appro-
priations Acts, to support a research project or partner-
ship carried out under this section. The Secretary may not 
give any special consideration to any agency or entity in 
return for a donation. 
(i) STAKEHOLDER ENGAGEMENT.—In carrying out 
the activities authorized in this section, the Secretary 
shall— 
(1) collaborate with a range of stakeholders in-
cluding small businesses, institutes of higher edu-
cation, industry, and the National Laboratories; 
(2) leverage the collective body of knowledge 
from existing artificial intelligence and machine 
learning research; and
2537 
(3) engage with other Federal agencies, re-
search communities, and potential users of informa-
tion produced under this section. 
(j) DEFINITIONS.—In this section: 
(1) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(2) DEPARTMENT.—The term ‘‘Department’’ 
means the Department of Energy. 
(3) NATIONAL LABORATORY.—The term ‘‘na-
tional laboratory’’ has the meaning given such term 
in section 2 of the Energy Policy Act of 2005 (42 
U.S.C. 15801). 
(4) ELIGIBLE
ENTITIES.—The term ‘‘eligible 
entities’’ means— 
(A) an institution of higher education; 
(B) a National Laboratory; 
(C) a Federal research agency; 
(D) a State research agency; 
(E) a nonprofit research organization; 
(F) a private sector entity; or 
(G) a consortium of 2 or more entities de-
scribed in subparagraph (A) through (F). 
(k) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Department to 
carry out this section $200,000,000 for fiscal year 2021.
2538 
SEC. 5502. DEPARTMENT OF ENERGY VETERANS’ HEALTH 
INITIATIVE. 
(a) DEFINITIONS.—In this section: 
(1) DEPARTMENT.—The term ‘‘Department’’ 
means the Department of Energy. 
(2) NATIONAL LABORATORY.—The term ‘‘Na-
tional Laboratory’’ has the meaning given that term 
in section 2 of the Energy Policy Act of 2005 (42 
U.S.C. 15801). 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(b) PURPOSES.—The purposes of this section are to 
advance Department of Energy expertise in artificial intel-
ligence and high-performance computing in order to im-
prove health outcomes for veteran populations by— 
(1) supporting basic research through the appli-
cation of artificial intelligence, high-performance 
computing, modeling and simulation, machine learn-
ing, and large-scale data analytics to identify and 
solve outcome-defined challenges in the health 
sciences; 
(2) maximizing the impact of the Department 
of Veterans Affairs’ health and genomics data 
housed at the National Laboratories, as well as data 
from other sources, on science, innovation, and 
health care outcomes through the use and advance-
2539 
ment of artificial intelligence and high-performance 
computing capabilities of the Department of Energy; 
(3) promoting collaborative research through 
the establishment of partnerships to improve data 
sharing between Federal agencies, National Labora-
tories, institutions of higher education, and non-
profit institutions; 
(4) establishing multiple scientific computing 
user facilities to house and provision available data 
to foster transformational outcomes; and 
(5) driving the development of technology to im-
prove artificial intelligence, high-performance com-
puting, and networking relevant to mission applica-
tions of the Department of Energy, including mod-
eling, simulation, machine learning, and advanced 
data analytics. 
(c) DEPARTMENT OF ENERGY VETERANS HEALTH 
RESEARCH AND DEVELOPMENT.— 
(1) IN GENERAL.—The Secretary shall establish 
and carry out a research program in artificial intel-
ligence and high-performance computing, focused on 
the development of tools to solve big data challenges 
associated with veteran’s healthcare, and to support 
the efforts of the Department of Veterans Affairs to 
identify potential health risks and challenges uti-
2540 
lizing data on long-term healthcare, health risks, 
and genomic data collected from veteran popu-
lations. The Secretary shall carry out this program 
through a competitive, merit-reviewed process, and 
consider applications from National Laboratories, in-
stitutions of higher education, multi-institutional col-
laborations, and other appropriate entities. 
(2) PROGRAM COMPONENTS.—In carrying out 
the program established under paragraph (1), the 
Secretary may— 
(A) conduct basic research in modeling and 
simulation, machine learning, large-scale data 
analytics, and predictive analysis in order to de-
velop novel or optimized algorithms for pre-
diction of disease treatment and recovery; 
(B) develop methods to accommodate large 
data sets with variable quality and scale, and to 
provide insight and models for complex systems; 
(C) develop new approaches and maximize 
the use of algorithms developed through artifi-
cial intelligence, machine learning, data ana-
lytics, natural language processing, modeling 
and simulation, and develop new algorithms 
suitable for high-performance computing sys-
tems and large biomedical data sets;
2541 
(D) advance existing and construct new 
data enclaves capable of securely storing data 
sets provided by the Department of Veterans 
Affairs, Department of Defense, and other 
sources; and 
(E) promote collaboration and data shar-
ing between National Laboratories, research en-
tities, and user facilities of the Department by 
providing the necessary access and secure data 
transfer capabilities. 
(3) COORDINATION.—In carrying out the pro-
gram required under paragraph (1), the Secretary is 
authorized to— 
(A) enter into memoranda of under-
standing in order to carry out reimbursable 
agreements with the Department of Veterans 
Affairs and other entities in order to maximize 
the effectiveness of Department of Energy re-
search and development to improve veterans’ 
healthcare; 
(B) consult with the Department of Vet-
erans Affairs and other Federal agencies as ap-
propriate; and 
(C) ensure that data storage meets all pri-
vacy and security requirements established by
2542 
the Department of Veterans Affairs, and that 
access to data is provided in accordance with 
relevant Department of Veterans Affairs data 
access policies, including informed consent. 
(4) REPORT.—Not later than 2 years after the 
date of the enactment of this Act, the Secretary 
shall submit to the Committee on Science, Space, 
and Technology and the Committee on Veterans’ Af-
fairs of the House of Representatives, and the Com-
mittee on Energy and Natural Resources and the 
Committee on Veterans’ Affairs of the Senate, a re-
port detailing the effectiveness of— 
(A) the interagency coordination between 
each Federal agency involved in the research 
program carried out under this subsection; 
(B) collaborative research achievements of 
the program; and 
(C) potential opportunities to expand the 
technical capabilities of the Department. 
(5) FUNDING.—There are authorized to be ap-
propriated to the Secretary of Veterans Affairs to 
carry out this section $5,400,000 for fiscal year 
2021. 
(d) INTERAGENCY COLLABORATION.—
2543 
(1) IN GENERAL.—The Secretary is authorized 
to carry out research, development, and demonstra-
tion activities to develop tools to apply to big data 
that enable Federal agencies, institutions of higher 
education, nonprofit research organizations, and in-
dustry to better leverage the capabilities of the De-
partment to solve complex, big data challenges. The 
Secretary shall carry out these activities through a 
competitive, merit-reviewed process, and consider ap-
plications from National Laboratories, institutions of 
higher education, multi-institutional collaborations, 
and other appropriate entities. 
(2) ACTIVITIES.—In carrying out the research, 
development, and demonstration activities authorized 
under paragraph (1), the Secretary may— 
(A) utilize all available mechanisms to pre-
vent duplication and coordinate research efforts 
across the Department; 
(B) establish multiple user facilities to 
serve as data enclaves capable of securely stor-
ing data sets created by Federal agencies, insti-
tutions of higher education, nonprofit organiza-
tions, or industry at National Laboratories; and 
(C) promote collaboration and data sharing 
between National Laboratories, research enti-
2544 
ties, and user facilities of the Department by 
providing the necessary access and secure data 
transfer capabilities. 
(3) REPORT.—Not later than 2 years after the 
date of the enactment of this Act, the Secretary 
shall submit to the Committee on Science, Space, 
and Technology of the House of Representatives and 
the Committee on Energy and Natural Resources of 
the Senate a report evaluating the effectiveness of 
the activities authorized under paragraph (1). 
(4) FUNDING.—There are authorized to be ap-
propriated to the Secretary of Energy to carry out 
paragraph (1) $15,000,000 for fiscal year 2021. 
DIVISION F—CORPORATE 
TRANSPARENCY ACT OF 2019 
SEC. 6001. SHORT TITLE. 
This division may be cited as the ‘‘Corporate Trans-
parency Act of 2019’’. 
SEC. 6002. FINDINGS. 
Congress finds the following: 
(1) Nearly 2,000,000 corporations and limited 
liability companies are being formed under the laws 
of the States each year.
2545 
(2) Very few States require information about 
the beneficial owners of the corporations and limited 
liability companies formed under their laws. 
(3) A person forming a corporation or limited 
liability company within the United States typically 
provides less information at the time of incorpora-
tion than is needed to obtain a bank account or driv-
er’s license and typically does not name a single ben-
eficial owner. 
(4) Criminals have exploited State formation 
procedures to conceal their identities when forming 
corporations or limited liability companies in the 
United States, and have then used the newly created 
entities to commit crimes affecting interstate and 
international commerce such as terrorism, prolifera-
tion financing, drug and human trafficking, money 
laundering, tax evasion, counterfeiting, piracy, secu-
rities fraud, financial fraud, and acts of foreign cor-
ruption. 
(5) Law enforcement efforts to investigate cor-
porations and limited liability companies suspected 
of committing crimes have been impeded by the lack 
of available beneficial ownership information, as doc-
umented in reports and testimony by officials from 
the Department of Justice, the Department of
2546 
Homeland Security, the Department of the Treas-
ury, and the Government Accountability Office, and 
others. 
(6) In July 2006, the leading international 
antimoney laundering standard-setting body, the Fi-
nancial Action Task Force on Money Laundering (in 
this section referred to as the ‘‘FATF’’), of which 
the United States is a member, issued a report that 
criticizes the United States for failing to comply 
with a FATF standard on the need to collect bene-
ficial ownership information and urged the United 
States to correct this deficiency by July 2008. In 
December 2016, FATF issued another evaluation of 
the United States, which found that little progress 
has been made over the last ten years to address 
this problem. It identified the ‘‘lack of timely access 
to adequate, accurate and current beneficial owner-
ship information’’ as a fundamental gap in United 
States efforts to combat money laundering and ter-
rorist finance. 
(7) In response to the 2006 FATF report, the 
United States has urged the States to obtain bene-
ficial ownership information for the corporations and 
limited liability companies formed under the laws of 
such States.
2547 
(8) In contrast to practices in the United 
States, all 28 countries in the European Union are 
required to have corporate registries that include 
beneficial ownership information. 
(9) To reduce the vulnerability of the United 
States to wrongdoing by United States corporations 
and limited liability companies with hidden owners, 
to protect interstate and international commerce 
from criminals misusing United States corporations 
and limited liability companies, to strengthen law en-
forcement investigations of suspect corporations and 
limited liability companies, to set a clear, universal 
standard for State incorporation practices, and to 
bring the United States into compliance with inter-
national anti-money laundering standards, Federal 
legislation is needed to require the collection of bene-
ficial ownership information for the corporations and 
limited liability companies formed under the laws of 
such States. 
SEC. 6003. TRANSPARENT INCORPORATION PRACTICES. 
(a) IN GENERAL.— 
(1) AMENDMENT
TO
THE
BANK
SECRECY 
ACT.—Chapter 53 of title 31, United States Code, is 
amended by inserting after section 5332 the fol-
lowing new section:
2548 
‘‘§ 5333 Transparent incorporation practices 
‘‘(a) REPORTING REQUIREMENTS.— 
‘‘(1) BENEFICIAL OWNERSHIP REPORTING.— 
‘‘(A) IN
GENERAL.—Each applicant to 
form a corporation or limited liability company 
under the laws of a State or Indian Tribe shall 
file a report with FinCEN containing a list of 
the beneficial owners of the corporation or lim-
ited liability company that— 
‘‘(i) except as provided in paragraphs 
(3) and (4), and subject to paragraph (2), 
identifies each beneficial owner by— 
‘‘(I) full legal name; 
‘‘(II) date of birth; 
‘‘(III) current residential or busi-
ness street address; and 
‘‘(IV) a unique identifying num-
ber from a non-expired passport 
issued by the United States, a non-ex-
pired personal identification card, or a 
non-expired driver’s license issued by 
a State; and 
‘‘(ii) if the applicant is not a bene-
ficial owner, also provides the identification 
information described in clause (i) relating 
to such applicant.
2549 
‘‘(B) UPDATED INFORMATION.—Each cor-
poration or limited liability company formed 
under the laws of a State or Indian Tribe 
shall— 
‘‘(i) submit to FinCEN an annual fil-
ing containing a list of— 
‘‘(I) the current beneficial owners 
of the corporation or limited liability 
company and the information de-
scribed in subparagraph (A) for each 
such beneficial owner; and 
‘‘(II) any changes in the bene-
ficial owners of the corporation or lim-
ited liability company during the pre-
vious year; and 
‘‘(ii) pursuant to any rule issued by 
the Secretary of the Treasury under sub-
paragraph (C), update the list of the bene-
ficial owners of the corporation or limited 
liability company within the time period 
prescribed by such rule. 
‘‘(C) RULEMAKING ON UPDATING INFOR-
MATION.—Not later than 9 months after the 
completion of the study required under section 
4(a)(1) of the Corporate Transparency Act of
2550 
2019, the Secretary of the Treasury shall con-
sider the findings of such study and, if the Sec-
retary determines it to be necessary or appro-
priate, issue a rule requiring corporations and 
limited liability companies to update the list of 
the beneficial owners of the corporation or lim-
ited liability company within a specified amount 
of time after the date of any change in the list 
of beneficial owners or the information required 
to be provided relating to each beneficial owner. 
‘‘(D) STATE
NOTIFICATION.—Each State 
in which a corporation or limited liability com-
pany is being formed shall notify each applicant 
of the requirements listed in subparagraphs (A) 
and (B). 
‘‘(2) CERTAIN BENEFICIAL OWNERS.—If an ap-
plicant to form a corporation or limited liability com-
pany or a beneficial owner, or similar agent of a cor-
poration or limited liability company who is required 
to provide identification information under this sub-
section, does not have a nonexpired passport issued 
by the United States, a nonexpired personal identi-
fication card, or a non-expired driver’s license issued 
by a State, each such person shall provide to 
FinCEN the full legal name, current residential or
2551 
business street address, a unique identifying number 
from a non-expired passport issued by a foreign gov-
ernment, and a legible and credible copy of the 
pages of a non-expired passport issued by the gov-
ernment of a foreign country bearing a photograph, 
date of birth, and unique identifying information for 
each beneficial owner, and each application described 
in paragraph (1)(A) and each update described in 
paragraph (1)(B) shall include a written certification 
by a person residing in the State or Indian country 
under the jurisdiction of the Indian Tribe forming 
the entity that the applicant, corporation, or limited 
liability company— 
‘‘(A) has obtained for each such beneficial 
owner, a current residential or business street 
address and a legible and credible copy of the 
pages of a non-expired passport issued by the 
government of a foreign country bearing a pho-
tograph, date of birth, and unique identifying 
information for the person; 
‘‘(B) has verified the full legal name, ad-
dress, and identity of each such person; 
‘‘(C) will provide the information described 
in 
subparagraph 
(A) 
and 
the 
proof 
of
2552 
verification described in subparagraph (B) upon 
request of FinCEN; and 
‘‘(D) will retain the information and proof 
of verification under this paragraph until the 
end of the 5-year period beginning on the date 
that the corporation or limited liability company 
terminates under the laws of the State or In-
dian Tribe. 
‘‘(3) EXEMPT ENTITIES.— 
‘‘(A) IN GENERAL.—With respect to an ap-
plicant to form a corporation or limited liability 
company under the laws of a State or Indian 
Tribe, if such entity is described in subpara-
graph (C) or (D) of subsection (d)(4) and will 
be exempt from the beneficial ownership disclo-
sure requirements under this subsection, such 
applicant, or a prospective officer, director, or 
similar agent of the applicant, shall file a writ-
ten certification with FinCEN— 
‘‘(i) identifying the specific provision 
of subsection (d)(4) under which the entity 
proposed to be formed would be exempt 
from the beneficial ownership disclosure re-
quirements under paragraphs (1) and (2);
2553 
‘‘(ii) stating that the entity proposed 
to be formed meets the requirements for 
an entity described under such provision of 
subsection (d)(4); and 
‘‘(iii) providing identification informa-
tion for the applicant or prospective offi-
cer, director, or similar agent making the 
certification in the same manner as pro-
vided under paragraph (1) or (2). 
‘‘(B) EXISTING
CORPORATIONS
OR
LIM-
ITED LIABILITY COMPANIES.—On and after the 
date that is 2 years after the final regulations 
are issued to carry out this section, a corpora-
tion or limited liability company formed under 
the laws of the State or Indian Tribe before 
such date shall be subject to the requirements 
of this subsection unless an officer, director, or 
similar agent of the entity submits to FinCEN 
a written certification— 
‘‘(i) identifying the specific provision 
of subsection (d)(4) under which the entity 
is exempt from the requirements under 
paragraphs (1) and (2);
2554 
‘‘(ii) stating that the entity meets the 
requirements for an entity described under 
such provision of subsection (d)(4); and 
‘‘(iii) providing identification informa-
tion for the officer, director, or similar 
agent making the certification in the same 
manner as provided under paragraph (1) 
or (2). 
‘‘(C) EXEMPT ENTITIES HAVING OWNER-
SHIP INTEREST.—If an entity described in sub-
paragraph (C) or (D) of subsection (d)(4) has 
or will have an ownership interest in a corpora-
tion or limited liability company formed or to be 
formed under the laws of a State or Indian 
Tribe, the applicant, corporation, or limited li-
ability company in which the entity has or will 
have the ownership interest shall provide the in-
formation required under this subsection relat-
ing to the entity, except that the entity shall 
not be required to provide information regard-
ing any natural person who has an ownership 
interest in, exercises substantial control over, or 
receives substantial economic benefits from the 
entity. 
‘‘(4) FINCEN ID NUMBERS.—
2555 
‘‘(A) ISSUANCE OF FINCEN ID NUMBER.— 
‘‘(i) IN
GENERAL.—FinCEN shall 
issue a FinCEN ID number to any indi-
vidual who requests such a number and 
provides FinCEN with the information de-
scribed under subclauses (I) through (IV) 
of paragraph (1)(A)(i). 
‘‘(ii) UPDATING OF INFORMATION.— 
An individual with a FinCEN ID number 
shall submit an annual filing with FinCEN 
updating any information described under 
subclauses (I) through (IV) of paragraph 
(1)(A)(i). 
‘‘(B) USE OF FINCEN ID NUMBER IN RE-
PORTING
REQUIREMENTS.—Any 
person 
re-
quired to report the information described 
under paragraph (1)(A)(i) with respect to an 
individual may instead report the FinCEN ID 
number of the individual. 
‘‘(C) TREATMENT OF INFORMATION SUB-
MITTED FOR FINCEN ID NUMBER.—For pur-
poses of this section, any information submitted 
under subparagraph (A) shall be deemed to be 
beneficial ownership information.
2556 
‘‘(5) RETENTION AND DISCLOSURE OF BENE-
FICIAL OWNERSHIP INFORMATION BY FINCEN.— 
‘‘(A) RETENTION OF INFORMATION.—Ben-
eficial ownership information relating to each 
corporation or limited liability company formed 
under the laws of the State or Indian Tribe 
shall be maintained by FinCEN until the end of 
the 5-year period (or such other period of time 
as the Secretary of the Treasury may, by rule, 
determine) beginning on the date that the cor-
poration or limited liability company termi-
nates. 
‘‘(B) DISCLOSURE
OF
INFORMATION.— 
Beneficial ownership information reported to 
FinCEN pursuant to this section shall be pro-
vided by FinCEN only upon receipt of— 
‘‘(i) subject to subparagraph (C), a 
request, through appropriate protocols, by 
a local, Tribal, State, or Federal law en-
forcement agency; 
‘‘(ii) a request made by a Federal 
agency on behalf of a law enforcement 
agency of another country under an inter-
national treaty, agreement, or convention,
2557 
or an order under section 3512 of title 18 
or section 1782 of title 28; or 
‘‘(iii) a request made by a financial 
institution, with customer consent, as part 
of the institution’s compliance with due 
diligence requirements imposed under the 
Bank Secrecy Act, the USA PATRIOT 
Act, or other applicable Federal, State, or 
Tribal law. 
‘‘(C) APPROPRIATE PROTOCOLS.— 
‘‘(i) PRIVACY.—The protocols de-
scribed in subparagraph (B)(i) shall— 
‘‘(I) protect the privacy of any 
beneficial ownership information pro-
vided by FinCEN to a local, Tribal, 
State, or Federal law enforcement 
agency; 
‘‘(II) ensure that a local, Tribal, 
State, or Federal law enforcement 
agency requesting beneficial ownership 
information has an existing investiga-
tory basis for requesting such infor-
mation; 
‘‘(III) ensure that access to bene-
ficial ownership information is limited
2558 
to authorized users at a local, Tribal, 
State, or Federal law enforcement 
agency who have undergone appro-
priate training, and refresher training 
no less than every 2 years, and that 
the identity of such authorized users 
is verified through appropriate mecha-
nisms, such as two-factor authentica-
tion; 
‘‘(IV) include an audit trail of re-
quests for beneficial ownership infor-
mation by a local, Tribal, State, or 
Federal law enforcement agency, in-
cluding, as necessary, information 
concerning queries made by author-
ized users at a local, Tribal, State, or 
Federal law enforcement agency; 
‘‘(V) require that every local, 
Tribal, State, or Federal law enforce-
ment agency that receives beneficial 
ownership information from FinCEN 
conducts an annual audit to verify 
that the beneficial ownership informa-
tion received from FinCEN has been
2559 
accessed and used appropriately, and 
consistent with this paragraph; and 
‘‘(VI) require FinCEN to con-
duct an annual audit of every local, 
Tribal, State, or Federal law enforce-
ment agency that has received bene-
ficial ownership information to ensure 
that such agency has requested bene-
ficial ownership information, and has 
used any beneficial ownership infor-
mation received from FinCEN, appro-
priately, and consistent with this 
paragraph. 
‘‘(ii) LIMITATION ON USE.—Beneficial 
ownership information provided to a local, 
Tribal, State, or Federal law enforcement 
agency under this paragraph may only be 
used for law enforcement, national secu-
rity, or intelligence purposes. 
‘‘(D) 
ACCESS
PROCEDURES.—FinCEN 
shall establish stringent procedures for the pro-
tection and proper use of beneficial ownership 
information disclosed pursuant to subparagraph 
(B), including procedures to ensure such infor-
2560 
mation is not being inappropriately accessed or 
misused by law enforcement agencies. 
‘‘(E) REPORT
TO
CONGRESS.—FinCEN 
shall issue an annual report to Congress stat-
ing— 
‘‘(i) the number of times law enforce-
ment agencies and financial institutions 
have accessed beneficial ownership infor-
mation pursuant to subparagraph (B); 
‘‘(ii) the number of times beneficial 
ownership 
information 
reported 
to 
FinCEN pursuant to this section was inap-
propriately accessed, and by whom; and 
‘‘(iii) the number of times beneficial 
ownership information was disclosed under 
subparagraph (B) pursuant to a subpoena. 
‘‘(F) DISCLOSURE
OF
NON-PII
DATA.— 
Notwithstanding subparagraph (B), FinCEN 
may issue guidance and otherwise make mate-
rials available to financial institutions and the 
public using beneficial ownership information 
reported pursuant to this section if such infor-
mation is aggregated in a manner that removes 
all personally identifiable information. For pur-
poses of this subparagraph, ‘personally identifi-
2561 
able information’ includes information that 
would allow for the identification of a particular 
corporation or limited liability company. 
‘‘(b) NO BEARER SHARE CORPORATIONS OR LIM-
ITED LIABILITY COMPANIES.—A corporation or limited li-
ability company formed under the laws of a State or In-
dian Tribe may not issue a certificate in bearer form evi-
dencing either a whole or fractional interest in the cor-
poration or limited liability company. 
‘‘(c) PENALTIES.— 
‘‘(1) IN GENERAL.—It shall be unlawful for any 
person to affect interstate or foreign commerce by— 
‘‘(A) knowingly providing, or attempting to 
provide, false or fraudulent beneficial ownership 
information, including a false or fraudulent 
identifying photograph, to FinCEN in accord-
ance with this section; 
‘‘(B) willfully failing to provide complete or 
updated beneficial ownership information to 
FinCEN in accordance with this section; or 
‘‘(C) knowingly disclosing the existence of 
a subpoena or other request for beneficial own-
ership information reported pursuant to this 
section, except—
2562 
‘‘(i) to the extent necessary to fulfill 
the authorized request; or 
‘‘(ii) as authorized by the entity that 
issued the subpoena, or other request. 
‘‘(2) CIVIL
AND
CRIMINAL
PENALTIES.—Any 
person who violates paragraph (1)— 
‘‘(A) shall be liable to the United States 
for a civil penalty of not more than $10,000; 
and 
‘‘(B) may be fined under title 18, United 
States Code, imprisoned for not more than 3 
years, or both. 
‘‘(3) LIMITATION.—Any person who negligently 
violates paragraph (1) shall not be subject to civil or 
criminal penalties under paragraph (2). 
‘‘(4) WAIVER.—The Secretary of the Treasury 
may waive the penalty for violating paragraph (1) if 
the Secretary determines that the violation was due 
to reasonable cause and was not due to willful ne-
glect. 
‘‘(5) CRIMINAL PENALTY FOR THE MISUSE OR 
UNAUTHORIZED DISCLOSURE OF BENEFICIAL OWN-
ERSHIP INFORMATION.—The criminal penalties pro-
vided for under section 5322 shall apply to a viola-
tion of this section to the same extent as such crimi-
2563 
nal penalties apply to a violation described in section 
5322, if the violation of this section consists of the 
misuse or unauthorized disclosure of beneficial own-
ership information. 
‘‘(d) DEFINITIONS.—For the purposes of this section: 
‘‘(1) APPLICANT.—The term ‘applicant’ means 
any natural person who files an application to form 
a corporation or limited liability company under the 
laws of a State or Indian Tribe. 
‘‘(2) BANK SECRECY ACT.—The term ‘Bank Se-
crecy Act’ means— 
‘‘(A) section 21 of the Federal Deposit In-
surance Act; 
‘‘(B) chapter 2 of title I of Public Law 91– 
508; and 
‘‘(C) this subchapter. 
‘‘(3) BENEFICIAL OWNER.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘beneficial owner’ 
means a natural person who, directly or indi-
rectly, through any contract, arrangement, un-
derstanding, relationship, or otherwise— 
‘‘(i) exercises substantial control over 
a corporation or limited liability company;
2564 
‘‘(ii) owns 25 percent or more of the 
equity interests of a corporation or limited 
liability company; or 
‘‘(iii) receives substantial economic 
benefits from the assets of a corporation or 
limited liability company. 
‘‘(B) EXCEPTIONS.—The term ‘beneficial 
owner’ shall not include— 
‘‘(i) a minor child, as defined in the 
State or Indian Tribe in which the entity 
is formed; 
‘‘(ii) a person acting as a nominee, 
intermediary, custodian, or agent on behalf 
of another person; 
‘‘(iii) a person acting solely as an em-
ployee of a corporation or limited liability 
company and whose control over or eco-
nomic benefits from the corporation or lim-
ited liability company derives solely from 
the employment status of the person; 
‘‘(iv) a person whose only interest in 
a corporation or limited liability company 
is through a right of inheritance; or 
‘‘(v) a creditor of a corporation or 
limited liability company, unless the cred-
2565 
itor also meets the requirements of sub-
paragraph (A). 
‘‘(C) SUBSTANTIAL
ECONOMIC
BENEFITS 
DEFINED.— 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph (A)(ii), a natural person re-
ceives substantial economic benefits from 
the assets of a corporation or limited liabil-
ity company if the person has an entitle-
ment to more than a specified percentage 
of the funds or assets of the corporation or 
limited liability company, which the Sec-
retary of the Treasury shall, by rule, estab-
lish. 
‘‘(ii) RULEMAKING CRITERIA.—In es-
tablishing the percentage under clause (i), 
the Secretary of the Treasury shall seek 
to— 
‘‘(I) provide clarity to corpora-
tions and limited liability companies 
with respect to the identification and 
disclosure of a natural person who re-
ceives substantial economic benefits 
from the assets of a corporation or 
limited liability company; and
2566 
‘‘(II) identify those natural per-
sons who, as a result of the substan-
tial economic benefits they receive 
from the assets of a corporation or 
limited liability company, exercise a 
dominant influence over such corpora-
tion or limited liability company. 
‘‘(4) CORPORATION; LIMITED LIABILITY COM-
PANY.—The terms ‘corporation’ and ‘limited liability 
company’— 
‘‘(A) have the meanings given such terms 
under the laws of the applicable State or Indian 
Tribe; 
‘‘(B) include any non-United States entity 
eligible for registration or registered to do busi-
ness as a corporation or limited liability com-
pany under the laws of the applicable State or 
Indian Tribe; 
‘‘(C) do not include any entity that is— 
‘‘(i) a business concern that is an 
issuer of a class of securities registered 
under section 12 of the Securities Ex-
change Act of 1934 (15 U.S.C. 781) or 
that is required to file reports under sec-
tion 15(d) of that Act (15 U.S.C. 78o(d));
2567 
‘‘(ii) a business concern constituted, 
sponsored, or chartered by a State or In-
dian Tribe, a political subdivision of a 
State or Indian Tribe, under an interstate 
compact between two or more States, by a 
department or agency of the United 
States, or under the laws of the United 
States; 
‘‘(iii) a bank, as defined under— 
‘‘(I) section 2(a) of the Invest-
ment Company Act of 1940 (15 
U.S.C. 80a–2(a)); or 
‘‘(II) section 202(a) of the In-
vestment Advisers Act of 1940 (15 
U.S.C. 80b–2(a)); 
‘‘(iv) a credit union (as defined in sec-
tion 101 of the Federal Credit Union Act 
(12 U.S.C. 1752)); 
‘‘(v) a bank holding company (as de-
fined in section 2 of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1841)) 
or a savings and loan holding company (as 
defined in section 10(a) of the Home Own-
ers’ Loan Act (12 U.S.C. 1467a(a));
2568 
‘‘(vi) a broker or dealer (as defined in 
section 3 of the Securities Exchange Act of 
1934 (15 U.S.C. 78c)) that is registered 
under section 15 of the Securities Ex-
change Act of 1934 (15 U.S.C. 78o); 
‘‘(vii) an exchange or clearing agency 
(as defined in section 3 of the Securities 
Exchange Act of 1934 (15 U.S.C. 78c)) 
that is registered under section 6 or 17A 
of the Securities Exchange Act of 1934 
(15 U.S.C. 78f and 78q–1); 
‘‘(viii) an investment company (as de-
fined in section 3 of the Investment Com-
pany Act of 1940 (15 U.S.C. 80a–3)) or 
an investment adviser (as defined in sec-
tion 202(11) of the Investment Advisers 
Act of 1940 (15 U.S.C. 80b–2(11))), if the 
company or adviser is registered with the 
Securities and Exchange Commission, has 
filed an application for registration which 
has not been denied, under the Investment 
Company Act of 1940 (15 U.S.C. 80a–1 et 
seq.) or the Investment Adviser Act of 
1940 (15 U.S.C. 80b–1 et seq.), or is an 
investment adviser described under section
2569 
203(l) of the Investment Advisers Act of 
1940 (15 U.S.C. 80b–3(l)); 
‘‘(ix) an insurance company (as de-
fined in section 2 of the Investment Com-
pany Act of 1940 (15 U.S.C. 80a–2)); 
‘‘(x) a registered entity (as defined in 
section 1a of the Commodity Exchange Act 
(7 U.S.C. 1a)), or a futures commission 
merchant, introducing broker, commodity 
pool operator, or commodity trading advi-
sor (as defined in section 1a of the Com-
modity Exchange Act (7 U.S.C. 1a)) that 
is registered with the Commodity Futures 
Trading Commission; 
‘‘(xi) a public accounting firm reg-
istered in accordance with section 102 of 
the Sarbanes-Oxley Act (15 U.S.C. 7212) 
or an entity controlling, controlled by, or 
under common control of such a firm; 
‘‘(xii) a public utility that provides 
telecommunications 
service, 
electrical 
power, natural gas, or water and sewer 
services, within the United States; 
‘‘(xiii) a church, charity, nonprofit en-
tity, or other organization that is described
2570 
in section 501(c), 527, or 4947(a)(1) of 
the Internal Revenue Code of 1986, that 
has not been denied tax exempt status, and 
that has filed the most recently due annual 
information return with the Internal Rev-
enue Service, if required to file such a re-
turn; 
‘‘(xiv) a financial market utility des-
ignated by the Financial Stability Over-
sight Council under section 804 of the 
Dodd-Frank Wall Street Reform and Con-
sumer Protection Act; 
‘‘(xv) an insurance producer (as de-
fined in section 334 of the Gramm-Leach- 
Bliley Act); 
‘‘(xvi) any pooled investment vehicle 
that is operated or advised by a person de-
scribed in clause (iii), (iv), (v), (vi), (viii), 
(ix), or (xi); 
‘‘(xvii) any business concern that— 
‘‘(I) employs more than 20 em-
ployees on a full-time basis in the 
United States; 
‘‘(II) files income tax returns in 
the United States demonstrating more
2571 
than $5,000,000 in gross receipts or 
sales; and 
‘‘(III) has an operating presence 
at a physical office within the United 
States; or 
‘‘(xviii) any corporation or limited li-
ability company formed and owned by an 
entity described in this clause or in clause 
(i), (ii), (iii), (iv), (v), (vi), (vii), (viii), (ix), 
(x), (xi), (xii), (xiii), (xiv), (xv), or (xvi); 
and 
‘‘(D) do not include any individual busi-
ness concern or class of business concerns 
which the Secretary of the Treasury and the 
Attorney General of the United States have 
jointly determined, by rule of otherwise, to be 
exempt from the requirements of subsection (a), 
if the Secretary and the Attorney General joint-
ly determine that requiring beneficial ownership 
information from the business concern would 
not serve the public interest and would not as-
sist law enforcement efforts to detect, prevent, 
or prosecute terrorism, money laundering, tax 
evasion, or other misconduct.
2572 
‘‘(5) FINCEN.—The term ‘FinCEN’ means the 
Financial Crimes Enforcement Network of the De-
partment of the Treasury. 
‘‘(6) INDIAN
COUNTRY.—The term ‘Indian 
country’ has the meaning given that term in section 
1151 of title 18. 
‘‘(7) INDIAN TRIBE.—The term ‘Indian Tribe’ 
has the meaning given that term under section 102 
of the Federally Recognized Indian Tribe List Act of 
1994. 
‘‘(8) PERSONAL
IDENTIFICATION
CARD.—The 
term ‘personal identification card’ means an identi-
fication document issued by a State, Indian Tribe, 
or local government to an individual solely for the 
purpose of identification of that individual. 
‘‘(9) STATE.—The term ‘State’ means any 
State, commonwealth, territory, or possession of the 
United States, the District of Columbia, the Com-
monwealth of Puerto Rico, the Commonwealth of the 
Northern Mariana Islands, American Samoa, Guam, 
or the United States Virgin Islands.’’. 
(2) RULEMAKING.— 
(A) IN GENERAL.—Not later than 1 year 
after the date of enactment of this Act, the Sec-
retary of the Treasury shall issue regulations to
2573 
carry out this division and the amendments 
made by this division, including, to the extent 
necessary, to clarify the definitions in section 
5333(d) of title 31, United States Code. 
(B) REVISION OF FINAL RULE.—Not later 
than 1 year after the date of enactment of this 
Act, the Secretary of the Treasury shall revise 
the final rule titled ‘‘Customer Due Diligence 
Requirements for Financial Institutions’’ (May 
11, 2016; 81 Fed. Reg. 29397) to— 
(i) bring the rule into conformance 
with this division and the amendments 
made by this division; 
(ii) account for financial institutions’ 
access to comprehensive beneficial owner-
ship information filed by corporations and 
limited liability companies, under threat of 
civil and criminal penalties, under this divi-
sion and the amendments made by this di-
vision; and 
(iii) reduce any burdens on financial 
institutions that are, in light of the enact-
ment of this division and the amendments 
made by this division, unnecessary or du-
plicative.
2574 
(3) CONFORMING
AMENDMENTS.—Title 31, 
United States Code, is amended— 
(A) in section 5321(a)— 
(i) in paragraph (1), by striking ‘‘sec-
tions 5314 and 5315’’ each place it ap-
pears and inserting ‘‘sections 5314, 5315, 
and 5333’’; and 
(ii) in paragraph (6), by inserting 
‘‘(except 
section 
5333)’’ 
after 
‘‘sub-
chapter’’ each place it appears; and 
(B) in section 5322, by striking ‘‘section 
5315 or 5324’’ each place it appears and insert-
ing ‘‘section 5315, 5324, or 5333’’. 
(4) TABLE OF CONTENTS.—The table of con-
tents of chapter 53 of title 31, United States Code, 
is amended by inserting after the item relating to 
section 5332 the following: 
‘‘5333. Transparent incorporation practices.’’. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated $20,000,000 for each of fis-
cal years 2021 and 2022 to the Financial Crimes Enforce-
ment Network to carry out this division and the amend-
ments made by this division. 
(c) FEDERAL CONTRACTORS.—Not later than the 
first day of the first full fiscal year beginning at least 1 
year after the date of the enactment of this Act, the Ad-
2575 
ministrator for Federal Procurement Policy shall revise 
the Federal Acquisition Regulation maintained under sec-
tion 1303(a)(1) of title 41, United States Code, to require 
any contractor or subcontractor who is subject to the re-
quirement to disclose beneficial ownership information 
under section 5333 of title 31, United States Code, to pro-
vide the information required to be disclosed under such 
section to the Federal Government as part of any bid or 
proposal for a contract with a value threshold in excess 
of the simplified acquisition threshold under section 134 
of title 41, United States Code. 
SEC. 6004. STUDIES AND REPORTS. 
(a) UPDATING OF BENEFICIAL OWNERSHIP INFOR-
MATION.— 
(1) STUDY.—The Secretary of the Treasury, in 
consultation with the Attorney General of the United 
States, shall conduct a study to evaluate— 
(A) the necessity of a requirement for cor-
porations and limited liability companies to up-
date the list of their beneficial owners within a 
specified amount of time after the date of any 
change in the list of beneficial owners or the in-
formation required to be provided relating to 
each beneficial owner, taking into account the 
annual 
filings 
required 
under 
section
2576 
5333(a)(1)(B)(i) of title 31, United States 
Code, and the information contained in such 
annual filings; and 
(B) the burden that a requirement to up-
date the list of beneficial owners within a speci-
fied period of time after a change in such list 
of beneficial owners would impose on corpora-
tions and limited liability companies. 
(2) REPORT.—Not later than 1 year after the 
date of enactment of this Act, the Secretary of the 
Treasury shall submit a report on the study required 
under paragraph (1) to the Committee on Financial 
Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs 
of the Senate. 
(3) PUBLIC COMMENT.—The Secretary of the 
Treasury shall seek and consider public input, com-
ments, and data in order to conduct the study re-
quired under subparagraph paragraph (1). 
(b) OTHER LEGAL ENTITIES.—Not later than 2 
years after the date of enactment of this Act, the Comp-
troller General of the United States shall conduct a study 
and submit to the Congress a report— 
(1) identifying each State or Indian Tribe that 
has procedures that enable persons to form or reg-
2577 
ister under the laws of the State or Indian Tribe 
partnerships, trusts, or other legal entities, and the 
nature of those procedures; 
(2) identifying each State or Indian Tribe that 
requires persons seeking to form or register partner-
ships, trusts, or other legal entities under the laws 
of the State or Indian Tribe to provide information 
about the beneficial owners (as that term is defined 
in section 5333(d)(1) of title 31, United States 
Code, as added by this division) or beneficiaries of 
such entities, and the nature of the required infor-
mation; 
(3) evaluating whether the lack of available 
beneficial ownership information for partnerships, 
trusts, or other legal entities— 
(A) raises concerns about the involvement 
of such entities in terrorism, money laundering, 
tax evasion, securities fraud, or other mis-
conduct; 
(B) has impeded investigations into enti-
ties suspected of such misconduct; and 
(C) increases the costs to financial institu-
tions of complying with due diligence require-
ments imposed under the Bank Secrecy Act, the
2578 
USA PATRIOT Act, or other applicable Fed-
eral, State, or Tribal law; and 
(4) evaluating whether the failure of the United 
States to require beneficial ownership information 
for partnerships and trusts formed or registered in 
the United States has elicited international criticism 
and what steps, if any, the United States has taken 
or is planning to take in response. 
(c) EFFECTIVENESS
OF
INCORPORATION
PRAC-
TICES.—Not later than 5 years after the date of enact-
ment of this Act, the Comptroller General of the United 
States shall conduct a study and submit to the Congress 
a report assessing the effectiveness of incorporation prac-
tices implemented under this division and the amendments 
made by this division in— 
(1) providing law enforcement agencies with 
prompt access to reliable, useful, and complete bene-
ficial ownership information; and 
(2) strengthening the capability of law enforce-
ment agencies to combat incorporation abuses, civil 
and criminal misconduct, and detect, prevent, or 
punish terrorism, money laundering, tax evasion, or 
other misconduct. 
(d) ANNUAL REPORT ON BENEFICIAL OWNERSHIP 
INFORMATION.—
2579 
(1) REPORT.—The Secretary of the Treasury 
shall issue an annual report to the Committee on Fi-
nancial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban Af-
fairs of the Senate with respect to the beneficial 
ownership information collected pursuant to section 
5333 of title 31, United States Code, that con-
tains— 
(A) aggregate data on the number of bene-
ficial owners per reporting corporation or lim-
ited liability company; 
(B) the industries or type of business of 
each reporting corporation or limited liability 
company; and 
(C) the locations of the beneficial owners. 
(2) PRIVACY.—In issuing reports under para-
graph (1), the Secretary shall not reveal the identi-
ties of beneficial owners or names of the reporting 
corporations or limited liability companies. 
SEC. 6005. DEFINITIONS. 
In this division, the terms ‘‘Bank Secrecy Act’’, ‘‘ben-
eficial owner’’, ‘‘corporation’’, and ‘‘limited liability com-
pany’’ have the meaning given those terms, respectively, 
under section 5333(d) of title 31, United States Code.
2580 
DIVISION G—COUNTER ACT OF 
2019 
SEC. 7001. SHORT TITLE. 
This division may be cited as the ‘‘Coordinating Over-
sight, Upgrading and Innovating Technology, and Exam-
iner Reform Act of 2019’’ or the ‘‘COUNTER Act of 
2019’’. 
SEC. 7002. BANK SECRECY ACT DEFINITION. 
Section 5312(a) of title 31, United States Code, is 
amended by adding at the end the following: 
‘‘(7) BANK SECRECY ACT.—The term ‘Bank Se-
crecy Act’ means— 
‘‘(A) section 21 of the Federal Deposit In-
surance Act; 
‘‘(B) chapter 2 of title I of Public Law 91– 
508; and 
‘‘(C) this subchapter.’’. 
TITLE I—STRENGTHENING 
TREASURY 
SEC. 7101. IMPROVING THE DEFINITION AND PURPOSE OF 
THE BANK SECRECY ACT. 
Section 5311 of title 31, United States Code, is 
amended—
2581 
(1) by inserting ‘‘to protect our national secu-
rity, to safeguard the integrity of the international 
financial system, and’’ before ‘‘to require’’; and 
(2) by inserting ‘‘to law enforcement and’’ be-
fore ‘‘in criminal’’. 
SEC. 7102. SPECIAL HIRING AUTHORITY. 
(a) IN GENERAL.—Section 310 of title 31, United 
States Code, is amended— 
(1) by redesignating subsection (d) as sub-
section (g); and 
(2) by inserting after subsection (c) the fol-
lowing: 
‘‘(d) SPECIAL HIRING AUTHORITY.— 
‘‘(1) IN
GENERAL.—The Secretary of the 
Treasury may appoint, without regard to the provi-
sions of sections 3309 through 3318 of title 5, can-
didates directly to positions in the competitive serv-
ice (as defined in section 2102 of that title) in 
FinCEN. 
‘‘(2) PRIMARY
RESPONSIBILITIES.—The pri-
mary responsibility of candidates appointed pursuant 
to paragraph (1) shall be to provide substantive sup-
port in support of the duties described in subpara-
graphs (A), (B), (E), and (F) of subsection (b)(2).’’.
2582 
(b) REPORT.—Not later than 360 days after the date 
of enactment of this Act, and every year thereafter for 
7 years, the Director of the Financial Crimes Enforcement 
Network shall submit a report to the Committee on Finan-
cial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of 
the Senate that includes— 
(1) the number of new employees hired since 
the preceding report through the authorities de-
scribed under section 310(d) of title 31, United 
States Code, along with position titles and associ-
ated pay grades for such hires; and 
(2) a copy of any Federal Government survey of 
staff perspectives at the Office of Terrorism and Fi-
nancial Intelligence, including findings regarding the 
Office and the Financial Crimes Enforcement Net-
work from the most recently administered Federal 
Employee Viewpoint Survey. 
SEC. 7103. CIVIL LIBERTIES AND PRIVACY OFFICER. 
(a) APPOINTMENT OF OFFICERS.—Not later than the 
end of the 3-month period beginning on the date of enact-
ment of this Act, a Civil Liberties and Privacy Officer 
shall be appointed, from among individuals who are attor-
neys with expertise in data privacy laws—
2583 
(1) within each Federal functional regulator, by 
the head of the Federal functional regulator; 
(2) within the Financial Crimes Enforcement 
Network, by the Secretary of the Treasury; and 
(3) within the Internal Revenue Service Small 
Business and Self-Employed Tax Center, by the Sec-
retary of the Treasury. 
(b) DUTIES.—Each Civil Liberties and Privacy Offi-
cer shall, with respect to the applicable regulator, Net-
work, or Center within which the Officer is located— 
(1) be consulted each time Bank Secrecy Act or 
anti-money laundering regulations affecting civil lib-
erties or privacy are developed or reviewed; 
(2) be consulted on information-sharing pro-
grams, including those that provide access to person-
ally identifiable information; 
(3) ensure coordination and clarity between 
anti-money laundering, civil liberties, and privacy 
regulations; 
(4) contribute to the evaluation and regulation 
of new technologies that may strengthen data pri-
vacy and the protection of personally identifiable in-
formation collected by each Federal functional regu-
lator; and 
(5) develop metrics of program success.
2584 
(c) DEFINITIONS.—For purposes of this section: 
(1) BANK SECRECY ACT.—The term ‘‘Bank Se-
crecy Act’’ has the meaning given that term under 
section 5312 of title 31, United States Code. 
(2) FEDERAL FUNCTIONAL REGULATOR.—The 
term ‘‘Federal functional regulator’’ means the 
Board of Governors of the Federal Reserve System, 
the Comptroller of the Currency, the Federal De-
posit Insurance Corporation, the National Credit 
Union Administration, the Securities and Exchange 
Commission, and the Commodity Futures Trading 
Commission. 
SEC. 7104. CIVIL LIBERTIES AND PRIVACY COUNCIL. 
(a) ESTABLISHMENT.—There is established the Civil 
Liberties and Privacy Council (hereinafter in this section 
referred to as the ‘‘Council’’), which shall consist of the 
Civil Liberties and Privacy Officers appointed pursuant to 
section 7103. 
(b) CHAIR.—The Director of the Financial Crimes 
Enforcement Network shall serve as the Chair of the 
Council. 
(c) DUTY.—The members of the Council shall coordi-
nate on activities related to their duties as Civil Liberties 
Privacy Officers, but may not supplant the individual 
agency determinations on civil liberties and privacy.
2585 
(d) MEETINGS.—The meetings of the Council— 
(1) shall be at the call of the Chair, but in no 
case may the Council meet less than quarterly; 
(2) may include open and partially closed ses-
sions, as determined necessary by the Council; and 
(3) shall include participation by public and pri-
vate entities, law enforcement agencies, and a rep-
resentative of State bank supervisors (as defined 
under section 3 of the Federal Deposit Insurance 
Act (12 U.S.C. 1813)). 
(e) REPORT.—The Chair of the Council shall issue 
an annual report to the Congress on the program and pol-
icy activities, including the success of programs as meas-
ured by metrics of program success developed pursuant 
to section 7103(b)(5), of the Council during the previous 
year and any legislative recommendations that the Council 
may have. 
(f) NONAPPLICABILITY OF FACA.—The Federal Ad-
visory Committee Act (5 U.S.C. App.) shall not apply to 
the Council. 
SEC. 7105. INTERNATIONAL COORDINATION. 
(a) IN GENERAL.—The Secretary of the Treasury 
shall work with the Secretary’s foreign counterparts, in-
cluding through the Financial Action Task Force, the 
International Monetary Fund, the World Bank, the
2586 
Egmont Group of Financial Intelligence Units, the 
Organisation for Economic Co-operation and Develop-
ment, and the United Nations, to promote stronger anti- 
money laundering frameworks and enforcement of anti- 
money laundering laws. 
(b) COOPERATION GOAL.—In carrying out subsection 
(a), the Secretary of the Treasury may work directly with 
foreign counterparts and other organizations where the 
goal of cooperation can best be met. 
(c) INTERNATIONAL MONETARY FUND.— 
(1) SUPPORT FOR CAPACITY OF THE INTER-
NATIONAL
MONETARY
FUND
TO
PREVENT
MONEY 
LAUNDERING
AND
FINANCING
OF
TERRORISM.— 
Title XVI of the International Financial Institutions 
Act (22 U.S.C. 262p et seq.) is amended by adding 
at the end the following: 
‘‘SEC. 1629. SUPPORT FOR CAPACITY OF THE INTER-
NATIONAL MONETARY FUND TO PREVENT 
MONEY LAUNDERING AND FINANCING OF 
TERRORISM. 
‘‘The Secretary of the Treasury shall instruct the 
United States Executive Director at the International 
Monetary Fund to support the increased use of the admin-
istrative budget of the Fund for technical assistance that
2587 
strengthens the capacity of Fund members to prevent 
money laundering and the financing of terrorism.’’. 
(2) NATIONAL ADVISORY COUNCIL REPORT TO 
CONGRESS.—The Chairman of the National Advisory 
Council on International Monetary and Financial 
Policies shall include in the report required by sec-
tion 1701 of the International Financial Institutions 
Act (22 U.S.C. 262r) a description of— 
(A) the activities of the International Mon-
etary Fund in the most recently completed fis-
cal year to provide technical assistance that 
strengthens the capacity of Fund members to 
prevent money laundering and the financing of 
terrorism, and the effectiveness of the assist-
ance; and 
(B) the efficacy of efforts by the United 
States to support such technical assistance 
through the use of the Fund’s administrative 
budget, and the level of such support. 
(3) SUNSET.—Effective on the date that is the 
end of the 4-year period beginning on the date of en-
actment of this Act, section 1629 of the Inter-
national Financial Institutions Act, as added by 
paragraph (1), is repealed.
2588 
SEC. 7106. TREASURY ATTACHE´ S PROGRAM. 
(a) IN GENERAL.—Title 31, United States Code, is 
amended by inserting after section 315 the following: 
‘‘§ 316. Treasury Attache´s Program 
‘‘(a) IN GENERAL.—There is established the Treas-
ury Attache´s Program, under which the Secretary of the 
Treasury shall appoint employees of the Department of 
the Treasury, after nomination by the Director of the Fi-
nancial Crimes Enforcement Network (‘FinCEN’), as a 
Treasury attache´, who shall— 
‘‘(1) be knowledgeable about the Bank Secrecy 
Act and anti-money laundering issues; 
‘‘(2) be co-located in a United States embassy; 
‘‘(3) perform outreach with respect to Bank Se-
crecy Act and anti-money laundering issues; 
‘‘(4) establish and maintain relationships with 
foreign counterparts, including employees of min-
istries of finance, central banks, and other relevant 
official entities; 
‘‘(5) conduct outreach to local and foreign fi-
nancial institutions and other commercial actors, in-
cluding— 
‘‘(A) 
information 
exchanges 
through 
FinCEN and FinCEN programs; and 
‘‘(B) soliciting buy-in and cooperation for 
the implementation of—
2589 
‘‘(i) United States and multilateral 
sanctions; and 
‘‘(ii) international standards on anti- 
money laundering and the countering of 
the financing of terrorism; and 
‘‘(6) perform such other actions as the Sec-
retary determines appropriate. 
‘‘(b) NUMBER OF ATTACHE´S.—The number of Treas-
ury attache´s appointed under this section at any one time 
shall be not fewer than 6 more employees than the number 
of employees of the Department of the Treasury serving 
as Treasury attache´s on March 1, 2020. 
‘‘(c) COMPENSATION.—Each Treasury attache´ ap-
pointed under this section and located at a United States 
embassy shall receive compensation at the higher of— 
‘‘(1) the rate of compensation provided to a 
Foreign Service officer at a comparable career level 
serving at the same embassy; or 
‘‘(2) the rate of compensation the Treasury 
attache´ would otherwise have received, absent the 
application of this subsection. 
‘‘(d) BANK SECRECY ACT DEFINED.—In this section, 
the term ‘Bank Secrecy Act’ has the meaning given that 
term under section 5312.’’.
2590 
(b) CLERICAL AMENDMENT.—The table of contents 
for chapter 3 of title 31, United States Code, is amended 
by inserting after the item relating to section 315 the fol-
lowing: 
‘‘316. Treasury Attache´s Program.’’. 
SEC. 7107. INCREASING TECHNICAL ASSISTANCE FOR 
INTERNATIONAL COOPERATION. 
(a) IN GENERAL.—There is authorized to be appro-
priated for each of fiscal years 2021 through 2025 to the 
Secretary of the Treasury for purposes of providing tech-
nical assistance that promotes compliance with inter-
national standards and best practices, including in par-
ticular those aimed at the establishment of effective anti- 
money laundering and countering the financing of ter-
rorism regimes, in an amount equal to twice the amount 
authorized for such purpose for fiscal year 2020. 
(b) ACTIVITY AND EVALUATION REPORT.—Not later 
than 360 days after enactment of this Act, and every year 
thereafter for 5 years, the Secretary of the Treasury shall 
issue a report to the Congress on the assistance (as de-
scribed under subsection (a)) of the Office of Technical 
Assistance of the Department of the Treasury con-
taining— 
(1) a narrative detailing the strategic goals of 
the Office in the previous year, with an explanation
2591 
of how technical assistance provided in the previous 
year advances the goals; 
(2) a description of technical assistance pro-
vided by the Office in the previous year, including 
the objectives and delivery methods of the assist-
ance; 
(3) a list of beneficiaries and providers (other 
than Office staff) of the technical assistance; 
(4) a description of how technical assistance 
provided by the Office complements, duplicates, or 
otherwise affects or is affected by technical assist-
ance provided by the international financial institu-
tions (as defined under section 1701(c) of the Inter-
national Financial Institutions Act); and 
(5) a copy of any Federal Government survey of 
staff perspectives at the Office of Technical Assist-
ance, including any findings regarding the Office 
from the most recently administered Federal Em-
ployee Viewpoint Survey. 
SEC. 7108. FINCEN DOMESTIC LIAISONS. 
Section 310 of title 31, United States Code, as 
amended by section 7102, is further amended by inserting 
after subsection (d) the following: 
‘‘(e) FINCEN DOMESTIC LIAISONS.—
2592 
‘‘(1) IN GENERAL.—The Director of FinCEN 
shall appoint at least 6 senior FinCEN employees as 
FinCEN Domestic Liaisons, who shall— 
‘‘(A) each be assigned to focus on a spe-
cific region of the United States; 
‘‘(B) be located at an office in such region 
(or co-located at an office of the Board of Gov-
ernors of the Federal Reserve System in such 
region); and 
‘‘(C) perform outreach to BSA officers at 
financial institutions (including non-bank finan-
cial institutions) and persons who are not finan-
cial institutions, especially with respect to ac-
tions taken by FinCEN that require specific ac-
tions by, or have specific effects on, such insti-
tutions or persons, as determined by the Direc-
tor. 
‘‘(2) DEFINITIONS.—In this subsection: 
‘‘(A) BSA OFFICER.—The term ‘BSA offi-
cer’ means an employee of a financial institu-
tion whose primary job responsibility involves 
compliance with the Bank Secrecy Act, as such 
term is defined under section 5312.
2593 
‘‘(B) FINANCIAL INSTITUTION.—The term 
‘financial institution’ has the meaning given 
that term under section 5312.’’. 
SEC. 7109. FINCEN EXCHANGE. 
Section 310 of title 31, United States Code, as 
amended by section 7108, is further amended by inserting 
after subsection (e) the following: 
‘‘(f) FINCEN EXCHANGE.— 
‘‘(1) 
ESTABLISHMENT.—The 
FinCEN 
Ex-
change is hereby established within FinCEN, which 
shall consist of the FinCEN Exchange program of 
FinCEN in existence on the day before the date of 
enactment of this paragraph. 
‘‘(2) PURPOSE.—The FinCEN Exchange shall 
facilitate a voluntary public-private information 
sharing partnership among law enforcement, finan-
cial institutions, and FinCEN to— 
‘‘(A) effectively and efficiently combat 
money laundering, terrorism financing, orga-
nized crime, and other financial crimes; 
‘‘(B) protect the financial system from il-
licit use; and 
‘‘(C) promote national security. 
‘‘(3) REPORT.—
2594 
‘‘(A) IN GENERAL.—Not later than 1 year 
after the date of enactment of this subsection, 
and annually thereafter for the next 5 years, 
the Secretary of the Treasury shall submit to 
the Committee on Financial Services of the 
House of Representatives and the Committee 
on Banking, Housing, and Urban Affairs of the 
Senate a report containing— 
‘‘(i) an analysis of the efforts under-
taken by the FinCEN Exchange and the 
results of such efforts; 
‘‘(ii) an analysis of the extent and ef-
fectiveness of the FinCEN Exchange, in-
cluding any benefits realized by law en-
forcement from partnership with financial 
institutions; and 
‘‘(iii) any legislative, administrative, 
or other recommendations the Secretary 
may have to strengthen FinCEN Exchange 
efforts. 
‘‘(B) CLASSIFIED
ANNEX.—Each report 
under subparagraph (A) may include a classi-
fied annex. 
‘‘(4) INFORMATION SHARING REQUIREMENT.— 
Information shared pursuant to this subsection shall
2595 
be shared in compliance with all other applicable 
Federal laws and regulations. 
‘‘(5) RULE OF CONSTRUCTION.—Nothing under 
this subsection may be construed to create new in-
formation sharing authorities related to the Bank 
Secrecy Act (as such term is defined under section 
5312 of title 31, United States Code). 
‘‘(6) FINANCIAL
INSTITUTION
DEFINED.—In 
this subsection, the term ‘financial institution’ has 
the meaning given that term under section 5312.’’. 
SEC. 7110. STUDY AND STRATEGY ON TRADE-BASED MONEY 
LAUNDERING. 
(a) STUDY.—The Secretary of the Treasury shall 
carry out a study, in consultation with appropriate private 
sector stakeholders and Federal departments and agen-
cies, on trade-based money laundering. 
(b) REPORT.—Not later than the end of the 1-year 
period beginning on the date of the enactment of this Act, 
the Secretary shall issue a report to the Congress con-
taining— 
(1) all findings and determinations made in car-
rying out the study required under subsection (a); 
and 
(2) proposed strategies to combat trade-based 
money laundering.
2596 
(c) CLASSIFIED ANNEX.—The report required under 
this section may include a classified annex. 
(d) CONTRACTING AUTHORITY.—The Secretary may 
contract with a private third-party to carry out the study 
required under this section. The authority of the Secretary 
to enter into contracts under this subsection shall be in 
effect for each fiscal year only to the extent and in the 
amounts as are provided in advance in appropriations 
Acts. 
SEC. 7111. STUDY AND STRATEGY ON DE-RISKING. 
(a) REVIEW.—The Secretary of the Treasury, in con-
sultation with appropriate private sector stakeholders, ex-
aminers, the Federal functional regulators (as defined 
under section 7103), State bank supervisors, and other 
relevant stakeholders, shall undertake a formal review 
of— 
(1) any adverse consequences of financial insti-
tutions de-risking entire categories of relationships, 
including charities, embassy accounts, money serv-
ices 
businesses 
(as 
defined 
under 
section 
1010.100(ff) of title 31, Code of Federal Regula-
tions) and their agents, countries, international and 
domestic regions, and respondent banks; 
(2) the reasons why financial institutions are 
engaging in de-risking;
2597 
(3) the association with and effects of de-risk-
ing on money laundering and financial crime actors 
and activities; 
(4) the most appropriate ways to promote fi-
nancial inclusion, particularly with respect to devel-
oping countries, while maintaining compliance with 
the Bank Secrecy Act, including an assessment of 
policy options to— 
(A) more effectively tailor Federal actions 
and penalties to the size of foreign financial in-
stitutions and any capacity limitations of for-
eign governments; and 
(B) reduce compliance costs that may lead 
to the adverse consequences described in para-
graph (1); 
(5) formal and informal feedback provided by 
examiners that may have led to de-risking; 
(6) the relationship between resources dedicated 
to compliance and overall sophistication of compli-
ance efforts at entities that may be experiencing de- 
risking versus those that have not experienced de- 
risking; and 
(7) any best practices from the private sector 
that facilitate correspondent bank relationships.
2598 
(b) DE-RISKING STRATEGY.—The Secretary shall de-
velop a strategy to reduce de-risking and adverse con-
sequences related to de-risking. 
(c) REPORT.—Not later than the end of the 1-year 
period beginning on the date of the enactment of this Act, 
the Secretary, in consultation with the Federal functional 
regulators, State bank supervisors, and other relevant 
stakeholders, shall issue a report to the Congress con-
taining— 
(1) all findings and determinations made in car-
rying out the study required under subsection (a); 
and 
(2) the strategy developed pursuant to sub-
section (b). 
(d) DEFINITIONS.—In this section: 
(1) 
DE-RISKING.—The 
term 
‘‘de-risking’’ 
means the wholesale closing of accounts or limiting 
of financial services for a category of customer due 
to unsubstantiated risk as it relates to compliance 
with the Bank Secrecy Act. 
(2) BSA TERMS.—The terms ‘‘Bank Secrecy 
Act’’ and ‘‘financial institution’’ have the meaning 
given those terms, respectively, under section 5312 
off title 31, United States Code.
2599 
(3) STATE
BANK
SUPERVISOR.—The term 
‘‘State bank supervisor’’ has the meaning given that 
term under section 3 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1813). 
SEC. 7112. AML EXAMINATION AUTHORITY DELEGATION 
STUDY. 
(a) STUDY.—The Secretary of the Treasury, in con-
sultation with State bank supervisors (as defined under 
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 
1813)) and other relevant stakeholders, shall carry out a 
study on the Secretary’s delegation of examination author-
ity under the Bank Secrecy Act, including— 
(1) an evaluation of the efficacy of the delega-
tion, especially with respect to the mission of the 
Bank Secrecy Act; 
(2) whether the delegated agencies have appro-
priate resources to perform their delegated respon-
sibilities; and 
(3) whether the examiners in delegated agencies 
have sufficient training and support to perform their 
responsibilities. 
(b) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Secretary of the Treasury 
shall submit to the Committee on Financial Services of 
the House of Representatives and the Committee on
2600 
Banking, Housing, and Urban Affairs of the Senate a re-
port containing— 
(1) all findings and determinations made in car-
rying out the study required under subsection (a); 
and 
(2) recommendations to improve the efficacy of 
delegation authority, including the potential for de- 
delegation of any or all such authority where it may 
be appropriate. 
(c) BANK
SECRECY
ACT
DEFINED.—The term 
‘‘Bank Secrecy Act’’ has the meaning given that term 
under section 5312 of title 31, United States Code. 
SEC. 7113. STUDY AND STRATEGY ON CHINESE MONEY 
LAUNDERING. 
(a) STUDY.—The Secretary of the Treasury shall 
carry out a study on the extent and effect of Chinese 
money laundering activities in the United States, including 
territories and possessions of the United States, and 
worldwide. 
(b) STRATEGY TO COMBAT CHINESE MONEY LAUN-
DERING.—Upon the completion of the study required 
under subsection (a), the Secretary shall, in consultation 
with such other Federal departments and agencies as the 
Secretary determines appropriate, develop a strategy to 
combat Chinese money laundering activities.
2601 
(c) REPORT.—Not later than the end of the 1-year 
period beginning on the date of enactment of this Act, the 
Secretary of the Treasury shall issue a report to Congress 
containing— 
(1) all findings and determinations made in car-
rying out the study required under subsection (a); 
and 
(2) the strategy developed under subsection (b). 
TITLE II—IMPROVING AML/CFT 
OVERSIGHT 
SEC. 7201. PILOT PROGRAM ON SHARING OF SUSPICIOUS 
ACTIVITY REPORTS WITHIN A FINANCIAL 
GROUP. 
(a) IN GENERAL.— 
(1) SHARING WITH FOREIGN BRANCHES AND 
AFFILIATES.—Section 5318(g) of title 31, United 
States Code, is amended by adding at the end the 
following: 
‘‘(5) PILOT PROGRAM ON SHARING WITH FOR-
EIGN BRANCHES, SUBSIDIARIES, AND AFFILIATES.— 
‘‘(A) IN GENERAL.—The Secretary of the 
Treasury shall issue rules establishing the pilot 
program described under subparagraph (B), 
subject to such controls and restrictions as the 
Director of the Financial Crimes Enforcement
2602 
Network determines appropriate, including con-
trols and restrictions regarding participation by 
financial institutions and jurisdictions in the 
pilot program. In prescribing such rules, the 
Secretary shall ensure that the sharing of infor-
mation described under such subparagraph (B) 
is subject to appropriate standards and require-
ments regarding data security and the confiden-
tiality of personally identifiable information. 
‘‘(B) PILOT
PROGRAM
DESCRIBED.—The 
pilot program required under this paragraph 
shall— 
‘‘(i) permit a financial institution with 
a reporting obligation under this sub-
section to share reports (and information 
on such reports) under this subsection with 
the institution’s foreign branches, subsidi-
aries, and affiliates for the purpose of com-
bating illicit finance risks, notwithstanding 
any other provision of law except subpara-
graphs (A) and (C); 
‘‘(ii) terminate on the date that is 5 
years after the date of enactment of this 
paragraph, except that the Secretary may 
extend the pilot program for up to 2 years
2603 
upon submitting a report to the Committee 
on Financial Services of the House of Rep-
resentatives and the Committee on Bank-
ing, Housing, and Urban Affairs of the 
Senate that includes— 
‘‘(I) a certification that the ex-
tension is in the national interest of 
the United States, with a detailed ex-
planation of the reasons therefor; 
‘‘(II) an evaluation of the useful-
ness of the pilot program, including a 
detailed analysis of any illicit activity 
identified or prevented as a result of 
the program; and 
‘‘(III) a detailed legislative pro-
posal providing for a long-term exten-
sion of the pilot program activities, in-
cluding expected budgetary resources 
for the activities, if the Secretary de-
termines that a long-term extension is 
appropriate. 
‘‘(C) PROHIBITION
INVOLVING
CERTAIN 
JURISDICTIONS.—In issuing the regulations re-
quired under subparagraph (A), the Secretary 
may not permit a financial institution to share
2604 
information on reports under this subsection 
with a foreign branch, subsidiary, or affiliate lo-
cated in— 
‘‘(i) the People’s Republic of China; 
‘‘(ii) the Russian Federation; or 
‘‘(iii) a jurisdiction that— 
‘‘(I) 
is 
subject 
to 
counter-
measures imposed by the Federal 
Government; 
‘‘(II) is a state sponsor of ter-
rorism; or 
‘‘(III) the Secretary has deter-
mined cannot reasonably protect the 
privacy and confidentiality of such in-
formation or would otherwise use such 
information in a manner that is not 
consistent with the national interest of 
the United States. 
‘‘(D) IMPLEMENTATION
UPDATES.—Not 
later than 360 days after the date rules are 
issued under subparagraph (A), and annually 
thereafter for 3 years, the Secretary, or the 
Secretary’s designee, shall brief the Committee 
on Financial Services of the House of Rep-
2605 
resentatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate on— 
‘‘(i) the degree of any information 
sharing permitted under the pilot program, 
and a description of criteria used by the 
Secretary to evaluate the appropriateness 
of the information sharing; 
‘‘(ii) the effectiveness of the pilot pro-
gram in identifying or preventing the viola-
tion of a United States law or regulation, 
and mechanisms that may improve such ef-
fectiveness; and 
‘‘(iii) any recommendations to amend 
the design of the pilot program. 
‘‘(E) RULE OF CONSTRUCTION.—Nothing 
in this paragraph shall be construed as limiting 
the Secretary’s authority under provisions of 
law other than this paragraph to establish other 
permissible purposes or methods for a financial 
institution sharing reports (and information on 
such reports) under this subsection with the in-
stitution’s foreign headquarters or with other 
branches of the same institution. 
‘‘(F) NOTICE OF USE OF OTHER AUTHOR-
ITY.—If the Secretary, pursuant to any author-
2606 
ity other than that provided under this para-
graph, permits a financial institution to share 
information on reports under this subsection 
with a foreign branch, subsidiary, or affiliate lo-
cated in a foreign jurisdiction, the Secretary 
shall notify the Committee on Financial Serv-
ices of the House of Representatives and the 
Committee on Banking, Housing, and Urban 
Affairs of such permission and the applicable 
foreign jurisdiction. 
‘‘(6) TREATMENT OF FOREIGN JURISDICTION- 
ORIGINATED REPORTS.—A report received by a fi-
nancial institution from a foreign affiliate with re-
spect to a suspicious transaction relevant to a pos-
sible violation of law or regulation shall be subject 
to the same confidentiality requirements provided 
under this subsection for a report of a suspicious 
transaction described under paragraph (1).’’. 
(2) 
NOTIFICATION
PROHIBITIONS.—Section 
5318(g)(2)(A) of title 31, United States Code, is 
amended— 
(A) in clause (i), by inserting after ‘‘trans-
action has been reported’’ the following: ‘‘or 
otherwise reveal any information that would re-
2607 
veal that the transaction has been reported’’; 
and 
(B) in clause (ii), by inserting after ‘‘trans-
action has been reported,’’ the following: ‘‘or 
otherwise reveal any information that would re-
veal that the transaction has been reported,’’. 
(b) RULEMAKING.—Not later than the end of the 
360-day period beginning on the date of enactment of this 
Act, the Secretary of the Treasury shall issue regulations 
to carry out the amendments made by this section. 
SEC. 7202. SHARING OF COMPLIANCE RESOURCES. 
(a) IN GENERAL.—Section 5318 of title 31, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(o) SHARING OF COMPLIANCE RESOURCES.— 
‘‘(1) SHARING PERMITTED.—Two or more fi-
nancial institutions may enter into collaborative ar-
rangements in order to more efficiently comply with 
the requirements of this subchapter. 
‘‘(2) OUTREACH.—The Secretary of the Treas-
ury and the appropriate supervising agencies shall 
carry out an outreach program to provide financial 
institutions with information, including best prac-
tices, with respect to the sharing of resources de-
scribed under paragraph (1).’’.
2608 
(b) RULE
OF
CONSTRUCTION.—The amendment 
made by subsection (a) may not be construed to require 
financial institutions to share resources. 
SEC. 7203. GAO STUDY ON FEEDBACK LOOPS. 
(a) STUDY.—The Comptroller General of the United 
States shall carry out a study on— 
(1) best practices within the United States Gov-
ernment for providing feedback (‘‘feedback loop’’) to 
relevant parties (including regulated private entities) 
on the usage and usefulness of personally identifi-
able information (‘‘PII’’), sensitive-but-unclassified 
(‘‘SBU’’) data, or similar information provided by 
such parties to Government users of such informa-
tion and data (including law enforcement or regu-
lators); and 
(2) any practices or standards inside or outside 
the United States for providing feedback through 
sensitive information and public-private partnership 
information sharing efforts, specifically related to ef-
forts to combat money laundering and other forms 
of illicit finance. 
(b) REPORT.—Not later than the end of the 18- 
month period beginning on the date of the enactment of 
this Act, the Comptroller General shall issue a report to 
the Committee on Banking, Housing, and Urban Affairs
2609 
of the Senate and the Committee on Financial Services 
of the House of Representatives containing— 
(1) all findings and determinations made in car-
rying out the study required under subsection (a); 
(2) with respect to each of paragraphs (1) and 
(2) of subsection (a), any best practices or signifi-
cant concerns identified by the Comptroller General, 
and their applicability to public-private partnerships 
and feedback loops with respect to United States ef-
forts to combat money laundering and other forms 
of illicit finance; and 
(3) recommendations to reduce or eliminate any 
unnecessary Government collection of the informa-
tion described under subsection (a)(1). 
SEC. 7204. FINCEN STUDY ON BSA VALUE. 
(a) STUDY.—The Director of the Financial Crimes 
Enforcement Network shall carry out a study on Bank Se-
crecy Act value. 
(b) REPORT.—Not later than the end of the 30-day 
period beginning on the date the study under subsection 
(a) is completed, the Director shall issue a report to the 
Committee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate containing all findings and
2610 
determinations made in carrying out the study required 
under this section. 
(c) CLASSIFIED ANNEX.—The report required under 
this section may include a classified annex, if the Director 
determines it appropriate. 
(d) BANK SECRECY ACT DEFINED.—For purposes of 
this section, the term ‘‘Bank Secrecy Act’’ has the mean-
ing given that term under section 5312 of title 31, United 
States Code. 
SEC. 7205. SHARING OF THREAT PATTERN AND TREND IN-
FORMATION. 
Section 5318(g) of title 31, United States Code, as 
amended by section 7201(a)(1), is further amended by 
adding at the end the following: 
‘‘(7) SHARING
OF
THREAT
PATTERN
AND 
TREND INFORMATION.— 
‘‘(A) SAR ACTIVITY REVIEW.—The Direc-
tor of the Financial Crimes Enforcement Net-
work shall restart publication of the ‘SAR Ac-
tivity Review – Trends, Tips & Issues’, on not 
less than a semi-annual basis, to provide mean-
ingful information about the preparation, use, 
and value of reports filed under this subsection 
by financial institutions, as well as other re-
2611 
ports filed by financial institutions under the 
Bank Secrecy Act. 
‘‘(B) INCLUSION OF TYPOLOGIES.—In each 
publication described under subparagraph (A), 
the Director shall provide financial institutions 
with typologies, including data that can be 
adapted in algorithms (including for artificial 
intelligence and machine learning programs) 
where appropriate, on emerging money laun-
dering and counter terror financing threat pat-
terns and trends. 
‘‘(C) TYPOLOGY DEFINED.—For purposes 
of this paragraph, the term ‘typology’ means 
the various techniques used to launder money 
or finance terrorism.’’. 
SEC. 7206. MODERNIZATION AND UPGRADING WHISTLE-
BLOWER PROTECTIONS. 
(a) REWARDS.—Section 5323(d) of title 31, United 
States Code, is amended to read as follows: 
‘‘(d) SOURCE OF REWARDS.—For the purposes of 
paying a reward under this section, the Secretary may, 
subject to amounts made available in advance by appro-
priation Acts, use criminal fine, civil penalty, or forfeiture 
amounts recovered based on the original information with 
respect to which the reward is being paid.’’.
2612 
(b) WHISTLEBLOWER INCENTIVES.—Chapter 53 of 
title 31, United States Code, is amended— 
(1) by inserting after section 5323 the fol-
lowing: 
‘‘§ 5323A. Whistleblower incentives 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) COVERED JUDICIAL OR ADMINISTRATIVE 
ACTION.—The term ‘covered judicial or administra-
tive action’ means any judicial or administrative ac-
tion brought by FinCEN under the Bank Secrecy 
Act that results in monetary sanctions exceeding 
$1,000,000. 
‘‘(2) FINCEN.—The term ‘FinCEN’ means the 
Financial Crimes Enforcement Network. 
‘‘(3) MONETARY SANCTIONS.—The term ‘mone-
tary sanctions’, when used with respect to any judi-
cial or administrative action, means— 
‘‘(A) any monies, including penalties, 
disgorgement, and interest, ordered to be paid; 
and 
‘‘(B) 
any 
monies 
deposited 
into 
a 
disgorgement fund as a result of such action or 
any settlement of such action. 
‘‘(4) 
ORIGINAL
INFORMATION.—The 
term 
‘original information’ means information that—
2613 
‘‘(A) is derived from the independent 
knowledge or analysis of a whistleblower; 
‘‘(B) is not known to FinCEN from any 
other source, unless the whistleblower is the 
original source of the information; and 
‘‘(C) is not exclusively derived from an al-
legation made in a judicial or administrative 
hearing, in a governmental report, hearing, 
audit, or investigation, or from the news media, 
unless the whistleblower is a source of the infor-
mation. 
‘‘(5) RELATED ACTION.—The term ‘related ac-
tion’, when used with respect to any judicial or ad-
ministrative action brought by FinCEN, means any 
judicial or administrative action that is based upon 
original information provided by a whistleblower that 
led to the successful enforcement of the action. 
‘‘(6) SECRETARY.—The term ‘Secretary’ means 
the Secretary of the Treasury. 
‘‘(7) WHISTLEBLOWER.—The term ‘whistle-
blower’ means any individual who provides, or 2 or 
more individuals acting jointly who provide, informa-
tion relating to a violation of laws enforced by 
FinCEN, in a manner established, by rule or regula-
tion, by FinCEN.
2614 
‘‘(b) AWARDS.— 
‘‘(1) IN GENERAL.—In any covered judicial or 
administrative action, or related action, the Sec-
retary, under such rules as the Secretary may issue 
and subject to subsection (c), shall pay an award or 
awards to 1 or more whistleblowers who voluntarily 
provided original information to FinCEN that led to 
the successful enforcement of the covered judicial or 
administrative action, or related action, in an aggre-
gate amount equal to not more than 30 percent, in 
total, of what has been collected of the monetary 
sanctions imposed in the action. 
‘‘(2) SOURCE OF AWARDS.—For the purposes of 
paying any award under paragraph (1), the Sec-
retary may, subject to amounts made available in 
advance by appropriation Acts, use monetary sanc-
tion amounts recovered based on the original infor-
mation with respect to which the award is being 
paid. 
‘‘(c) DETERMINATION OF AMOUNT OF AWARD; DE-
NIAL OF AWARD.— 
‘‘(1) 
DETERMINATION
OF
AMOUNT
OF 
AWARD.—
2615 
‘‘(A) DISCRETION.—The determination of 
the amount of an award made under subsection 
(b) shall be in the discretion of the Secretary. 
‘‘(B) CRITERIA.—In responding to a dis-
closure and determining the amount of an 
award made, FinCEN staff shall meet with the 
whistleblower to discuss evidence disclosed and 
rebuttals to the disclosure, and shall take into 
consideration— 
‘‘(i) the significance of the informa-
tion provided by the whistleblower to the 
success of the covered judicial or adminis-
trative action; 
‘‘(ii) the degree of assistance provided 
by the whistleblower and any legal rep-
resentative of the whistleblower in a cov-
ered judicial or administrative action; 
‘‘(iii) the mission of FinCEN in deter-
ring violations of the law by making 
awards to whistleblowers who provide in-
formation that lead to the successful en-
forcement of such laws; and 
‘‘(iv) such additional relevant factors 
as the Secretary may establish by rule.
2616 
‘‘(2) DENIAL
OF
AWARD.—No award under 
subsection (b) shall be made— 
‘‘(A) to any whistleblower who is, or was at 
the time the whistleblower acquired the original 
information submitted to FinCEN, a member, 
officer, or employee of— 
‘‘(i) an appropriate regulatory agency; 
‘‘(ii) the Department of Justice; 
‘‘(iii) a self-regulatory organization; or 
‘‘(iv) a law enforcement organization; 
‘‘(B) to any whistleblower who is convicted 
of a criminal violation, or who the Secretary 
has a reasonable basis to believe committed a 
criminal violation, related to the judicial or ad-
ministrative action for which the whistleblower 
otherwise could receive an award under this sec-
tion; 
‘‘(C) to any whistleblower who gains the 
information through the performance of an 
audit of financial statements required under the 
Bank Secrecy Act and for whom such submis-
sion would be contrary to its requirements; or 
‘‘(D) to any whistleblower who fails to sub-
mit information to FinCEN in such form as the 
Secretary may, by rule, require.
2617 
‘‘(3) STATEMENT OF REASONS.—For any deci-
sion granting or denying an award, the Secretary 
shall provide to the whistleblower a statement of rea-
sons that includes findings of fact and conclusions of 
law for all material issues. 
‘‘(d) REPRESENTATION.— 
‘‘(1) 
PERMITTED
REPRESENTATION.—Any 
whistleblower who makes a claim for an award under 
subsection (b) may be represented by counsel. 
‘‘(2) REQUIRED REPRESENTATION.— 
‘‘(A) IN
GENERAL.—Any whistleblower 
who anonymously makes a claim for an award 
under subsection (b) shall be represented by 
counsel if the whistleblower anonymously sub-
mits the information upon which the claim is 
based. 
‘‘(B) DISCLOSURE OF IDENTITY.—Prior to 
the payment of an award, a whistleblower shall 
disclose their identity and provide such other 
information as the Secretary may require, di-
rectly or through counsel for the whistleblower. 
‘‘(e) APPEALS.—Any determination made under this 
section, including whether, to whom, or in what amount 
to make awards, shall be in the discretion of the Secretary. 
Any such determination, except the determination of the
2618 
amount of an award if the award was made in accordance 
with subsection (b), may be appealed to the appropriate 
court of appeals of the United States not more than 30 
days after the determination is issued by the Secretary. 
The court shall review the determination made by the Sec-
retary in accordance with section 706 of title 5. 
‘‘(f) EMPLOYEE PROTECTIONS.—The Secretary of 
the Treasury shall issue regulations protecting a whistle-
blower from retaliation, which shall be as close as prac-
ticable to the employee protections provided for under sec-
tion 1057 of the Consumer Financial Protection Act of 
2010.’’; and 
(2) in the table of contents for such chapter, by 
inserting after the item relating to section 5323 the 
following new item: 
‘‘5323A. Whistleblower incentives.’’. 
SEC. 7207. CERTAIN VIOLATORS BARRED FROM SERVING 
ON BOARDS OF UNITED STATES FINANCIAL 
INSTITUTIONS. 
Section 5321 of title 31, United States Code, is 
amended by adding at the end the following: 
‘‘(f) CERTAIN VIOLATORS BARRED FROM SERVING 
ON BOARDS OF UNITED STATES FINANCIAL INSTITU-
TIONS.— 
‘‘(1) IN
GENERAL.—An individual found to 
have committed an egregious violation of a provision
2619 
of (or rule issued under) the Bank Secrecy Act shall 
be barred from serving on the board of directors of 
a United States financial institution for a 10-year 
period beginning on the date of such finding. 
‘‘(2) EGREGIOUS
VIOLATION
DEFINED.—With 
respect to an individual, the term ‘egregious viola-
tion’ means— 
‘‘(A) a felony criminal violation for which 
the individual was convicted; and 
‘‘(B) a civil violation where the individual 
willfully committed such violation and the viola-
tion facilitated money laundering or the financ-
ing of terrorism.’’. 
SEC. 7208. ADDITIONAL DAMAGES FOR REPEAT BANK SE-
CRECY ACT VIOLATORS. 
(a) IN GENERAL.—Section 5321 of title 31, United 
States Code, as amended by section 7208, is further 
amended by adding at the end the following: 
‘‘(g) ADDITIONAL DAMAGES
FOR REPEAT VIOLA-
TORS.—In addition to any other fines permitted by this 
section and section 5322, with respect to a person who 
has previously been convicted of a criminal provision of 
(or rule issued under) the Bank Secrecy Act or who has 
admitted, as part of a deferred- or non-prosecution agree-
ment, to having previously committed a violation of a
2620 
criminal provision of (or rule issued under) the Bank Se-
crecy Act, the Secretary may impose an additional civil 
penalty against such person for each additional such viola-
tion in an amount equal to up three times the profit 
gained or loss avoided by such person as a result of the 
violation.’’. 
(b) PROSPECTIVE APPLICATION OF AMENDMENT.— 
For purposes of determining whether a person has com-
mitted a previous violation under section 5321(g) of title 
31, United States Code, such determination shall only in-
clude violations occurring after the date of enactment of 
this Act. 
SEC. 7209. JUSTICE ANNUAL REPORT ON DEFERRED AND 
NON-PROSECUTION AGREEMENTS. 
(a) ANNUAL REPORT.—The Attorney General shall 
issue an annual report, every year for the 5 years begin-
ning on the date of enactment of this Act, to the Commit-
tees on Financial Services and the Judiciary of the House 
of Representatives and the Committees on Banking, Hous-
ing, and Urban Affairs and the Judiciary of the Senate 
containing— 
(1) a list of deferred prosecution agreements 
and non-prosecution agreements that the Attorney 
General has entered into during the previous year
2621 
with any person with respect to a violation or sus-
pected violation of the Bank Secrecy Act; 
(2) the justification for entering into each such 
agreement; 
(3) the list of factors that were taken into ac-
count in determining that the Attorney General 
should enter into each such agreement; and 
(4) the extent of coordination the Attorney 
General conducted with the Financial Crimes En-
forcement Network prior to entering into each such 
agreement. 
(b) CLASSIFIED ANNEX.—Each report under sub-
section (a) may include a classified annex. 
(c) BANK SECRECY ACT DEFINED.—For purposes of 
this section, the term ‘‘Bank Secrecy Act’’ has the mean-
ing given that term under section 5312 of title 31, United 
States Code. 
SEC. 7210. RETURN OF PROFITS AND BONUSES. 
(a) IN GENERAL.—Section 5322 of title 31, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(e) RETURN OF PROFITS AND BONUSES.—A person 
convicted of violating a provision of (or rule issued under) 
the Bank Secrecy Act shall—
2622 
‘‘(1) in addition to any other fine under this 
section, be fined in an amount equal to the profit 
gained by such person by reason of such violation, 
as determined by the court; and 
‘‘(2) if such person is an individual who was a 
partner, director, officer, or employee of a financial 
institution at the time the violation occurred, repay 
to such financial institution any bonus paid to such 
individual during the Federal fiscal year in which 
the violation occurred or the Federal fiscal year 
after which the violation occurred.’’. 
(b) RULE
OF
CONSTRUCTION.—The amendment 
made by subsection (a) may not be construed to prohibit 
a financial institution from requiring the repayment of a 
bonus paid to a partner, director, officer, or employee if 
the financial institution determines that the partner, di-
rector, officer, or employee engaged in unethical, but non- 
criminal, activities. 
SEC. 7211. APPLICATION OF BANK SECRECY ACT TO DEAL-
ERS IN ANTIQUITIES. 
(a) IN GENERAL.—Section 5312(a)(2) of title 31, 
United States Code, is amended— 
(1) in subparagraph (Y), by striking ‘‘or’’ at 
the end;
2623 
(2) by redesignating subparagraph (Z) as sub-
paragraph (AA); and 
(3) by inserting after subsection (Y) the fol-
lowing: 
‘‘(Z) a person trading or acting as an 
intermediary in the trade of antiquities, includ-
ing an advisor, consultant or any other person 
who engages as a business in the solicitation of 
the sale of antiquities; or’’. 
(b) STUDY ON THE FACILITATION OF MONEY LAUN-
DERING AND TERROR FINANCE THROUGH THE TRADE OF 
WORKS OF ART OR ANTIQUITIES.— 
(1) STUDY.—The Secretary of the Treasury, in 
coordination with Federal Bureau of Investigation, 
the Attorney General, and Homeland Security Inves-
tigations, shall perform a study on the facilitation of 
money laundering and terror finance through the 
trade of works of art or antiquities, including an 
analysis of— 
(A) the extent to which the facilitation of 
money laundering and terror finance through 
the trade of works of art or antiquities may 
enter or affect the financial system of the 
United States, including any qualitative data or 
statistics;
2624 
(B) whether thresholds and definitions 
should apply in determining which entities to 
regulate; 
(C) an evaluation of which markets, by 
size, entity type, domestic or international geo-
graphical locations, or otherwise, should be sub-
ject to regulations, but only to the extent such 
markets are not already required to report on 
the trade of works of art or antiquities to the 
Federal Government; 
(D) an evaluation of whether certain ex-
emptions should apply; and 
(E) any other points of study or analysis 
the Secretary determines necessary or appro-
priate. 
(2) REPORT.—Not later than the end of the 
180-day period beginning on the date of the enact-
ment of this Act, the Secretary of the Treasury shall 
issue a report to the Committee on Financial Serv-
ices of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs of 
the Senate containing all findings and determina-
tions made in carrying out the study required under 
paragraph (1).
2625 
(c) RULEMAKING.—Not later than the end of the 
180-day period beginning on the date the Secretary issues 
the report required under subsection (b)(2), the Secretary 
shall issue regulations to carry out the amendments made 
by subsection (a). 
SEC. 7212. GEOGRAPHIC TARGETING ORDER. 
The Secretary of the Treasury shall issue a geo-
graphic targeting order, similar to the order issued by the 
Financial Crimes Enforcement Network on November 15, 
2018, that— 
(1) applies to commercial real estate to the 
same extent, with the exception of having the same 
thresholds, as the order issued by FinCEN on No-
vember 15, 2018, applies to residential real estate; 
and 
(2) establishes a specific threshold for commer-
cial real estate. 
SEC. 7213. STUDY AND REVISIONS TO CURRENCY TRANS-
ACTION REPORTS AND SUSPICIOUS ACTIVITY 
REPORTS. 
(a) CURRENCY TRANSACTION REPORTS.— 
(1) CTR INDEXED FOR INFLATION.— 
(A) IN GENERAL.—Every 5 years after the 
date of enactment of this Act, the Secretary of 
the Treasury shall revise regulations issued
2626 
with respect to section 5313 of title 31, United 
States Code, to update each $10,000 threshold 
amount in such regulation to reflect the change 
in the Consumer Price Index for All Urban 
Consumers published by the Department of 
Labor, rounded to the nearest $100. For pur-
poses of calculating the change described in the 
previous sentence, the Secretary shall use 
$10,000 as the base amount and the date of en-
actment of this Act as the base date. 
(B) EXCEPTION.—Notwithstanding sub-
paragraph (A), the Secretary may make appro-
priate adjustments to the threshold amounts 
described under subparagraph (A) in high-risk 
areas (e.g., High Intensity Financial Crime 
Areas or HIFCAs), if the Secretary has demon-
strable evidence that shows a threshold raise 
would increase serious crimes, such as traf-
ficking, or endanger national security. 
(2) GAO CTR STUDY.— 
(A) STUDY.—The Comptroller General of 
the United States shall carry out a study of 
currency transaction reports. Such study shall 
include—
2627 
(i) a review (carried out in consulta-
tion with the Secretary of the Treasury, 
the Financial Crimes Enforcement Net-
work, the United States Attorney General, 
the State Attorneys General, and State, 
Tribal, and local law enforcement) of the 
effectiveness of the current currency trans-
action reporting regime; 
(ii) an analysis of the importance of 
currency transaction reports to law en-
forcement; and 
(iii) an analysis of the effects of rais-
ing the currency transaction report thresh-
old. 
(B) REPORT.—Not later than the end of 
the 1-year period beginning on the date of en-
actment of this Act, the Comptroller General 
shall issue a report to the Secretary of the 
Treasury and the Congress containing— 
(i) all findings and determinations 
made in carrying out the study required 
under subparagraph (A); and 
(ii) recommendations for improving 
the current currency transaction reporting 
regime.
2628 
(b) MODIFIED SARS STUDY AND DESIGN.— 
(1) STUDY.—The Director of the Financial 
Crimes Enforcement Network shall carry out a 
study, in consultation with industry stakeholders (in-
cluding 
money 
services 
businesses, 
community 
banks, and credit unions), the Federal functional 
regulators, State bank supervisors, and law enforce-
ment, of the design of a modified suspicious activity 
report form for certain customers and activities. 
Such study shall include— 
(A) an examination of appropriate optimal 
SARs thresholds to determine the level at which 
a modified SARs form could be employed; 
(B) an evaluation of which customers or 
transactions would be appropriate for a modi-
fied SAR, including— 
(i) seasoned business customers; 
(ii) financial technology (Fintech) 
firms; 
(iii) structuring transactions; and 
(iv) any other customer or transaction 
that may be appropriate for a modified 
SAR; and 
(C) an analysis of the most effective meth-
ods to reduce the regulatory burden imposed on
2629 
financial institutions in complying with the 
Bank Secrecy Act, including an analysis of the 
effect of— 
(i) modifying thresholds; 
(ii) shortening forms; 
(iii) combining Bank Secrecy Act 
forms; 
(iv) filing reports in periodic batches; 
and 
(v) any other method that may reduce 
the regulatory burden. 
(2) STUDY CONSIDERATIONS.—In carrying out 
the study required under paragraph (1), the Direc-
tor shall seek to balance law enforcement priorities, 
regulatory burdens experienced by financial institu-
tions, and the requirement for reports to have a 
‘‘high degree of usefulness to law enforcement’’ 
under the Bank Secrecy Act. 
(3) REPORT.—Not later than the end of the 1- 
year period beginning on the date of enactment of 
this Act, the Director shall issue a report to Con-
gress containing— 
(A) all findings and determinations made 
in carrying out the study required under sub-
section (a); and
2630 
(B) sample designs of modified SARs 
forms based on the study results. 
(4) CONTRACTING AUTHORITY.—The Director 
may contract with a private third-party to carry out 
the study required under this subsection. The au-
thority of the Director to enter into contracts under 
this paragraph shall be in effect for each fiscal year 
only to the extent and in the amounts as are pro-
vided in advance in appropriations Acts. 
(c) DEFINITIONS.—For purposes of this section: 
(1) BANK SECRECY ACT.—The term ‘‘Bank Se-
crecy Act’’ has the meaning given that term under 
section 5312 of title 31, United States Code. 
(2) FEDERAL FUNCTIONAL REGULATOR.—The 
term ‘‘Federal functional regulator’’ has the mean-
ing given that term under section 7103. 
(3) REGULATORY BURDEN.—The term ‘‘regu-
latory burden’’ means the man-hours to complete fil-
ings, cost of data collection and analysis, and other 
considerations of chapter 35 of title 44, United 
States Code (commonly referred to as the Paper-
work Reduction Act). 
(4) SAR; SUSPICIOUS ACTIVITY REPORT.—The 
term ‘‘SAR’’ and ‘‘suspicious activity report’’ mean
2631 
a report of a suspicious transaction under section 
5318(g) of title 31, United States Code. 
(5) SEASONED
BUSINESS
CUSTOMER.—The 
term ‘‘seasoned business customer’’, shall have such 
meaning as the Secretary of the Treasury shall pre-
scribe, which shall include any person that— 
(A) is incorporated or organized under the 
laws of the United States or any State, or is 
registered as, licensed by, or otherwise eligible 
to do business within the United States, a 
State, or political subdivision of a State; 
(B) has maintained an account with a fi-
nancial institution for a length of time as deter-
mined by the Secretary; and 
(C) meet such other requirements as the 
Secretary may determine necessary or appro-
priate. 
(6) STATE
BANK
SUPERVISOR.—The term 
‘‘State bank supervisor’’ has the meaning given that 
term under section 3 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1813).
2632 
SEC. 7214. STREAMLINING REQUIREMENTS FOR CURRENCY 
TRANSACTION REPORTS AND SUSPICIOUS 
ACTIVITY REPORTS. 
(a) REVIEW.—The Secretary of the Treasury (in con-
sultation with Federal law enforcement agencies, the Di-
rector of National Intelligence, the Federal functional reg-
ulators, State bank supervisors, and other relevant stake-
holders) shall undertake a formal review of the current 
financial institution reporting requirements under the 
Bank Secrecy Act and its implementing regulations and 
propose changes to further reduce regulatory burdens, and 
ensure that the information provided is of a ‘‘high degree 
of usefulness’’ to law enforcement, as set forth under sec-
tion 5311 of title 31, United States Code. 
(b) CONTENTS.—The review required under sub-
section (a) shall include a study of— 
(1) whether the timeframe for filing a sus-
picious activity report should be increased from 30 
days; 
(2) whether or not currency transaction report 
and suspicious activity report thresholds should be 
tied to inflation or otherwise periodically be ad-
justed; 
(3) whether the circumstances under which a fi-
nancial institution determines whether to file a ‘‘con-
tinuing suspicious activity report’’, or the processes
2633 
followed by a financial institution in determining 
whether to file a ‘‘continuing suspicious activity re-
port’’ (or both) can be narrowed; 
(4) analyzing the fields designated as ‘‘critical’’ 
on the suspicious activity report form and whether 
the number of fields should be reduced; 
(5) the increased use of exemption provisions to 
reduce currency transaction reports that are of little 
or no value to law enforcement efforts; 
(6) the current financial institution reporting 
requirements under the Bank Secrecy Act and its 
implementing regulations and guidance; and 
(7) such other items as the Secretary deter-
mines appropriate. 
(c) REPORT.—Not later than the end of the 1-year 
period beginning on the date of the enactment of this Act, 
the Secretary of the Treasury, in consultation with law 
enforcement and persons subject to Bank Secrecy Act re-
quirements, shall issue a report to the Congress containing 
all findings and determinations made in carrying out the 
review required under subsection (a). 
(d) DEFINITIONS.—For purposes of this section: 
(1) FEDERAL FUNCTIONAL REGULATOR.—The 
term ‘‘Federal functional regulator’’ has the mean-
ing given that term under section 7103.
2634 
(2) STATE
BANK
SUPERVISOR.—The term 
‘‘State bank supervisor’’ has the meaning given that 
term under section 3 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1813). 
(3) OTHER TERMS.—The terms ‘‘Bank Secrecy 
Act’’ and ‘‘financial institution’’ have the meaning 
given those terms, respectively, under section 5312 
of title 31, United States Code. 
TITLE III—MODERNIZING THE 
AML SYSTEM 
SEC. 7301. ENCOURAGING INNOVATION IN BSA COMPLI-
ANCE. 
Section 5318 of title 31, United States Code, as 
amended by section 7202, is further amended by adding 
at the end the following: 
‘‘(p) ENCOURAGING INNOVATION IN COMPLIANCE.— 
‘‘(1) IN GENERAL.—The Federal functional reg-
ulators shall encourage financial institutions to con-
sider, evaluate, and, where appropriate, responsibly 
implement innovative approaches to meet the re-
quirements of this subchapter, including through the 
use of innovation pilot programs. 
‘‘(2) EXEMPTIVE RELIEF.—The Secretary, pur-
suant to subsection (a), may provide exemptions 
from the requirements of this subchapter if the Sec-
2635 
retary determines such exemptions are necessary to 
facilitate the testing and potential use of new tech-
nologies and other innovations. 
‘‘(3) RULE
OF
CONSTRUCTION.—This sub-
section may not be construed to require financial in-
stitutions to consider, evaluate, or implement innova-
tive approaches to meet the requirements of the 
Bank Secrecy Act. 
‘‘(4) FEDERAL
FUNCTIONAL
REGULATOR
DE-
FINED.—In this subsection, the term ‘Federal func-
tional regulator’ means the Board of Governors of 
the Federal Reserve System, the Comptroller of the 
Currency, the Federal Deposit Insurance Corpora-
tion, the National Credit Union Administration, the 
Securities and Exchange Commission, and the Com-
modity Futures Trading Commission.’’. 
SEC. 7302. INNOVATION LABS. 
(a) IN GENERAL.—Subchapter II of chapter 53 of 
title 31, United States Code, is amended by adding at the 
end the following: 
‘‘§ 5333. Innovation Labs 
‘‘(a) ESTABLISHMENT.—There is established within 
the Department of the Treasury and each Federal func-
tional regulator an Innovation Lab.
2636 
‘‘(b) DIRECTOR.—The head of each Innovation Lab 
shall be a Director, to be appointed by the Secretary of 
the Treasury or the head of the Federal functional regu-
lator, as applicable. 
‘‘(c) DUTIES.—The duties of the Innovation Lab 
shall be— 
‘‘(1) to provide outreach to law enforcement 
agencies, State bank supervisors, financial institu-
tions, and other persons (including vendors and 
technology companies) with respect to innovation 
and new technologies that may be used to comply 
with the requirements of the Bank Secrecy Act; 
‘‘(2) to support the implementation of respon-
sible innovation and new technology, in a manner 
that complies with the requirements of the Bank Se-
crecy Act; 
‘‘(3) to explore opportunities for public-private 
partnerships; and 
‘‘(4) to develop metrics of success. 
‘‘(d) FINCEN LAB.—The Innovation Lab established 
under subsection (a) within the Department of the Treas-
ury shall be a lab within the Financial Crimes Enforce-
ment Network. 
‘‘(e) DEFINITIONS.—In this section: