1772 
‘‘(B) access to associated impact state-
ments, including system of record notices, pri-
vacy impact assessments, and civil liberties im-
pact assessments; 
‘‘(C) access to associated information and 
materials documenting— 
‘‘(i) the processes for data collection 
related to such technologies, for obtaining 
consent related to the use of such tech-
nologies, or for the disclosure of the use of 
such technologies; 
‘‘(ii) the algorithms and models of 
such technologies; 
‘‘(iii) the data resources used, or to be 
used, in the training of such technologies, 
including a comprehensive listing of any 
data assets or public data assets (or any 
combination thereof) used, or to be used, 
in the training of such technologies; 
‘‘(iv) data governance processes and 
procedures, including acquisition, protec-
tion, retention, sharing, and access, related 
to data resources associated with such 
technologies; and
1773 
‘‘(v) processes for training and test-
ing, evaluating, validating, and modifying 
such technologies; and 
‘‘(D) access to all other associated infor-
mation and materials.’’; 
(2) in subsection (d)(1), by inserting ‘‘(includ-
ing as described under subsection (a)(3))’’ after ‘‘of-
ficer’’; and 
(3) by adding at the end the following: 
‘‘(i) DEFINITIONS.—In this section: 
‘‘(1) ARTIFICIAL
INTELLIGENCE.—The term 
‘artificial intelligence’ has the meaning given that 
term in section 238(g) of the John S. McCain Na-
tional Defense Authorization Act for Fiscal Year 
2019 (Public Law 115–232; 10 U.S.C. 2358 note). 
‘‘(2) COVERED ARTIFICIAL INTELLIGENCE-EN-
ABLED TECHNOLOGY.—The term ‘covered artificial 
intelligence-enabled technology’ means an artificial 
intelligence-enabled technology (including a classified 
technology)— 
‘‘(A) in use by the applicable department, 
agency, or element, to protect the Nation from 
terrorism; or 
‘‘(B) that the applicable department, agen-
cy, or element plans to evaluate, develop, ac-
1774 
quire, retain, or repurpose to protect the Nation 
from terrorism. 
‘‘(3) DATA ASSET: PUBLIC DATA ASSET.—The 
terms ‘data asset’ and ‘public data asset’ have the 
meaning given those terms in section 3502 of title 
44, United States Code.’’. 
(b) SELF-ASSESSMENT BY PRIVACY AND CIVIL LIB-
ERTIES OVERSIGHT BOARD.—Not later than one year 
after the date of the enactment of this Act, the Privacy 
and Civil Liberties Oversight Board under section 1061 
of the Intelligence Reform and Terrorism Prevention Act 
of 2004 (42 U.S.C. 2000ee) shall provide to the appro-
priate committees (as described in subsection (e) of such 
section) a self-assessment of any change in authorities, re-
sources, or organizational structure that may be necessary 
to carry out the functions described in subsection (d) of 
such section related to artificial intelligence-enabled tech-
nologies. 
(c) DEFINITION.—In this section, the term ‘‘artificial 
intelligence’’ has the meaning given that term in section 
238(g) of the John S. McCain National Defense Author-
ization Act for Fiscal Year 2019 (Public Law 115–232; 
10 U.S.C. 2358 note). 
(d) EFFECTIVE DATE.—Subsections (a) and (b), and 
the amendments made by such subsections, shall take ef-
1775 
fect on the date that is one year after the date of the en-
actment of this Act. 
SEC. 40103. DEFENSE PRIORITIES EFFECTIVENESS STUDY. 
The Comptroller General of the United States shall 
study the effectiveness of the Defense Priorities and Allo-
cations System (as described in part 700 of title 15, Code 
of Federal Regulations) at assuring the timely availability 
of industrial resources, including semiconductor and other 
microelectronics products, to meet national defense and 
emergency preparedness program requirements. 
SEC. 40104. INFLATION STUDY. 
The Comptroller General shall, not later than 1 year 
after the date of the enactment of this Act, conduct a 
study and submit to the Congress a report that analyzes— 
(1) the impacts of this Act and the amendments 
made by this Act on inflation; and 
(2) how all amounts appropriated pursuant to 
this Act are spent. 
SEC. 40105. GAO REPORT ON INFLATION. 
Not later than 18 months after the date of the enact-
ment of this Act, the Comptroller General shall submit 
to Congress a report that includes the following: 
(1) An analysis of the effects of this Act on in-
flation for the year after the date of the enactment 
of this Act.
1776 
(2) A projection for how this Act will affect in-
flation during the second year following such date of 
enactment and for every year thereafter for the next 
8 years. 
SEC. 40106. AMERICAN SECURITY DRONE ACT. 
(a) SHORT TITLE.—This section may be cited as the 
‘‘American Security Drone Act of 2022’’. 
(b) DEFINITIONS.—In this section: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the congressional defense committees 
as defined in section 101(a) of title 10, United 
States Code; 
(B) the Committee on Science, Space, and 
Technology, and the Committee on Transpor-
tation and Infrastructure of the House of Rep-
resentatives; and 
(C) the Committee on Commerce, Science, 
and Transportation of the Senate. 
(2) COVERED
FOREIGN
ENTITY.—The term 
‘‘covered foreign entity’’ means an entity included on 
a list developed and maintained by the Federal Ac-
quisition Security Council that includes entities in 
the following categories:
1777 
(A) An entity included on the Consolidated 
Screening List. 
(B) 
Any 
entity 
that 
is 
subject 
to 
extrajudicial direction from a foreign govern-
ment, as determined by the Secretary of Home-
land Security. 
(C) Any entity the Secretary of Homeland 
Security, in coordination with the Director of 
National Intelligence and the Secretary of De-
fense, determines poses a national security risk. 
(D) Any entity domiciled in the People’s 
Republic of China or subject to influence or 
control by the Government of the People’s Re-
public of China or the Communist Party of the 
People’s Republic of China, as determined by 
the Secretary of Homeland Security. 
(E) Any subsidiary or affiliate of an entity 
described in subparagraphs (A) through (D). 
(3) EXECUTIVE AGENCY.—The term ‘‘executive 
agency’’ has the meaning given that term in section 
133 of title 41, United States Code. 
(4) UNMANNED AIRCRAFT SYSTEM; UAS.—Ex-
cept as otherwise provided, the terms ‘‘unmanned 
aircraft system’’ and ‘‘UAS’’ mean an unmanned 
aircraft and associated elements (consisting of com-
1778 
munication links and the components that control 
the unmanned aircraft) that are required for the op-
erator to operate safely and efficiently in the na-
tional airspace system. 
(c) PROHIBITION ON PROCUREMENT OF UNMANNED 
AIRCRAFT SYSTEMS FROM COVERED FOREIGN ENTI-
TIES.— 
(1) IN GENERAL.—Except as provided under 
paragraphs (2) and (3), the head of an executive 
agency may not procure any unmanned aircraft sys-
tem that is manufactured, assembled, designed, or 
patented by a covered foreign entity that are re-
quired for the operator to operate safely and effi-
ciently in the national airspace system. The Federal 
Acquisition Security Council, in coordination with 
the Secretary of Transportation, shall develop and 
update a list of associated elements. 
(2) EXEMPTION.—The Secretary of Homeland 
Security, the Secretary of Defense, and the Attorney 
General are exempt from the restriction under para-
graph (1) if the operation or procurement— 
(A) is for the sole purposes of research, 
evaluation, training, testing, or analysis for— 
(i) electronic warfare; 
(ii) information warfare operations;
1779 
(iii) development of UAS or counter- 
UAS technology; 
(iv) counterterrorism or counterintel-
ligence activities; or 
(v) Federal criminal investigations, in-
cluding forensic examinations; and 
(B) is required in the national interest of 
the United States. 
(3) WAIVER.—The head of an executive agency 
may waive the prohibition under paragraph (1)— 
(A) with the approval of the Secretary of 
Homeland Security or the Secretary of Defense; 
and 
(B) upon notification to Congress. 
(d) PROHIBITION
ON OPERATION
OF UNMANNED 
AIRCRAFT SYSTEMS FROM COVERED FOREIGN ENTI-
TIES.— 
(1) PROHIBITION.— 
(A) IN GENERAL.—Beginning on the date 
that is 2 years after the date of the enactment 
of this Act, an executive agency may not oper-
ate an unmanned aircraft system manufac-
tured, assembled, designed, or patented by a 
covered foreign entity.
1780 
(B) 
APPLICABILITY
TO
CONTRACTED 
SERVICES.—The prohibition under subpara-
graph (A) applies to any unmanned aircraft 
systems that are being used by any executive 
agency through the method of contracting for 
the services of unmanned aircraft systems. 
(2) EXEMPTION.—The Secretary of Homeland 
Security, the Secretary of Defense, and the Attorney 
General are exempt from the restriction under para-
graph (1) if the operation or procurement— 
(A) is for the sole purposes of research, 
evaluation, training, testing, or analysis for— 
(i) electronic warfare; 
(ii) information warfare operations; 
(iii) development of UAS or counter- 
UAS technology; 
(iv) counterterrorism or counterintel-
ligence activities; or 
(v) Federal criminal investigations, in-
cluding forensic examinations; and 
(B) is required in the national interest of 
the United States. 
(3) WAIVER.—The head of an executive agency 
may waive the prohibition under paragraph (1) on a 
case-by-case basis—
1781 
(A) with the approval of the Secretary of 
Homeland Security or the Secretary of Defense; 
and 
(B) upon notification to Congress. 
(4) REGULATIONS AND GUIDANCE.—Not later 
than 180 days after the date of the enactment of 
this Act, the Secretary of Homeland Security shall 
prescribe regulations or guidance to implement this 
subsection. 
(e) PROHIBITION ON USE OF FEDERAL FUNDS FOR 
PURCHASES AND OPERATION OF UNMANNED AIRCRAFT 
SYSTEMS FROM COVERED FOREIGN ENTITIES.— 
(1) IN GENERAL.—Beginning on the date that 
is 2 years after the date of the enactment of this 
Act, except as provided in paragraphs (2) and (3), 
Federal funds awarded through a contract, grant, or 
cooperative agreement entered into on or after such 
effective date, or otherwise made available, may not 
be used— 
(A) to purchase a unmanned aircraft sys-
tem, or a system to counter unmanned aircraft 
systems, that is manufactured, assembled, de-
signed, or patented by a covered foreign entity; 
or
1782 
(B) in connection with the operation of 
such a drone or unmanned aircraft system. 
(2) EXEMPTION.—An executive agency is ex-
empt from the restriction under paragraph (1) if the 
operation or procurement is for the sole purposes of 
research, evaluation, training, testing, or analysis, as 
determined by the Secretary of Homeland Security, 
the Secretary of Defense, or the Attorney General, 
for— 
(A) electronic warfare; 
(B) information warfare operations; 
(C) development of UAS or counter-UAS 
technology; 
(D) counterterrorism or counterintelligence 
activities; 
(E) Federal criminal investigations, includ-
ing forensic examinations; or 
(F) the safe integration of UAS in the na-
tional airspace (as determined in consultation 
with the Secretary of Transportation); and 
(G) is required in the national interest of 
the United States. 
(3) WAIVER.—The head of an executive agency 
may waive the prohibition under paragraph (1) on a 
case-by-case basis—
1783 
(A) with the approval of the Secretary of 
Homeland Security or the Secretary of Defense; 
and 
(B) upon notification to Congress. 
(4) REGULATIONS.—Not later than 180 days 
after the date of the enactment of this Act, the Fed-
eral Acquisition Regulatory Council shall prescribe 
regulations or guidance, as necessary, to implement 
the requirements of this subsection relating to Fed-
eral contracts. 
(f) PROHIBITION ON USE OF GOVERNMENT-ISSUED 
PURCHASE CARDS TO PURCHASE UNMANNED AIRCRAFT 
SYSTEMS FROM COVERED FOREIGN ENTITIES.—Effective 
immediately, Government-issued Purchase Cards may not 
be used to procure any unmanned aircraft system from 
a covered foreign entity. 
(g) MANAGEMENT OF EXISTING INVENTORIES OF 
UNMANNED AIRCRAFT SYSTEMS FROM COVERED FOR-
EIGN ENTITIES.— 
(1) IN
GENERAL.—Effective immediately, all 
executive agencies must account for existing inven-
tories of unmanned aircraft systems manufactured, 
assembled, designed, or patented by a covered for-
eign entity in their personal property accounting sys-
tems, regardless of the original procurement cost, or
1784 
the purpose of procurement due to the special moni-
toring and accounting measures necessary to track 
the items’ capabilities. 
(2) CLASSIFIED TRACKING.—Due to the sen-
sitive nature of missions and operations conducted 
by the United States Government, inventory data re-
lated to unmanned aircraft systems manufactured, 
assembled, designed, or patented by a covered for-
eign entity may be tracked at a classified level. 
(3) EXCEPTIONS.—The Department of Defense 
and Department of Homeland Security may exclude 
from the full inventory process, unmanned aircraft 
systems that are deemed expendable due to mission 
risk such as recovery issues or that are one-time-use 
unmanned aircraft system due to requirements and 
low cost. 
(h) COMPTROLLER GENERAL REPORT.—Not later 
than 275 days after the date of the enactment of this Act, 
the Comptroller General of the United States shall submit 
to Congress a report on the amount of commercial off- 
the-shelf drones and unmanned aircraft systems procured 
by Federal departments and agencies from covered foreign 
entities. 
(i) GOVERNMENT-WIDE POLICY FOR PROCUREMENT 
OF UNMANNED AIRCRAFT SYSTEMS.—
1785 
(1) IN
GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, the Di-
rector of the Office of Management and Budget, in 
coordination with the Department of Homeland Se-
curity, Department of Transportation, the Depart-
ment of Justice, and other Departments as deter-
mined by the Director of the Office of Management 
and Budget, and in consultation with the National 
Institute of Standards and Technology, shall estab-
lish a government-wide policy for the procurement of 
UAS— 
(A) for non-Department of Defense and 
non-intelligence community operations; and 
(B) through grants and cooperative agree-
ments entered into with non-Federal entities. 
(2) INFORMATION SECURITY.—The policy devel-
oped under paragraph (1) shall include the following 
specifications, which to the extent practicable, shall 
be based on industry standards and technical guid-
ance from the National Institute of Standards and 
Technology, to address the risks associated with 
processing, storing and transmitting Federal infor-
mation in a UAS: 
(A) Protections to ensure controlled access 
of UAS.
1786 
(B) Protecting software, firmware, and 
hardware by ensuring changes to UAS are 
properly managed, including by ensuring UAS 
can be updated using a secure, controlled, and 
configurable mechanism. 
(C) Cryptographically securing sensitive 
collected, stored, and transmitted data, includ-
ing proper handling of privacy data and other 
controlled unclassified information. 
(D) Appropriate safeguards necessary to 
protect sensitive information, including during 
and after use of UAS. 
(E) Appropriate data security to ensure 
that data is not transmitted to or stored in non- 
approved locations. 
(F) The ability to opt out of the uploading, 
downloading, or transmitting of data that is not 
required by law or regulation and an ability to 
choose with whom and where information is 
shared when it is required. 
(3) 
REQUIREMENT.—The 
policy 
developed 
under paragraph (1) shall reflect an appropriate 
risk-based approach to information security related 
to use of UAS.
1787 
(4) REVISION OF ACQUISITION REGULATIONS.— 
Not later than 180 days after the date on which the 
policy required under paragraph (1) is issued— 
(A) the Federal Acquisition Regulatory 
Council shall revise the Federal Acquisition 
Regulation, as necessary, to implement the pol-
icy; and 
(B) any executive agency or other Federal 
entity not subject to, or not subject solely to, 
the Federal Acquisition Regulation shall revise 
applicable policy, guidance, or regulations, as 
necessary, to implement the policy. 
(5) EXEMPTION.—In developing the policy re-
quired under paragraph (1), the Director of the Of-
fice of Management and Budget shall incorporate an 
exemption to the policy for the following reasons: 
(A) In the case of procurement for the 
purposes of training, testing or analysis for— 
(i) electronic warfare; or 
(ii) information warfare operations. 
(B) In the case of researching UAS tech-
nology, including testing, evaluation, research, 
or development of technology to counter UAS. 
(C) In the case of a head of the procuring 
executive agency determining, in writing, that
1788 
no product that complies with the information 
security requirements described in paragraph 
(2) is capable of fulfilling mission critical per-
formance requirements, and such determina-
tion— 
(i) may not be delegated below the 
level of the Deputy Secretary of the pro-
curing executive agency; 
(ii) shall specify— 
(I) the quantity of end items to 
which the waiver applies, the procure-
ment value of which may not exceed 
$50,000 per waiver; and 
(II) the time period over which 
the waiver applies, which shall not ex-
ceed 3 years; 
(iii) shall be reported to the Office of 
Management 
and 
Budget 
following 
issuance of such a determination; and 
(iv) not later than 30 days after the 
date on which the determination is made, 
shall be provided to the Committee on 
Homeland Security and Government Af-
fairs of the Senate and the Committee on
1789 
Oversight and Reform of the House of 
Representatives. 
(j) STUDY ON THE SUPPLY CHAIN FOR UNMANNED 
AIRCRAFT SYSTEMS AND COMPONENTS.— 
(1) REPORT REQUIRED.—Not later than 180 
days after the date of the enactment of this Act, the 
Under Secretary of Defense for Acquisition and 
Sustainment, in consultation with the Administrator 
of the National Aeronautics and Space Administra-
tion, shall provide to the appropriate congressional 
committees a report on the supply chain for covered 
unmanned aircraft systems, including a discussion of 
current and projected future demand for covered un-
manned aircraft systems. 
(2) ELEMENTS.—The report under paragraph 
(1) shall include the following: 
(A) A description of the current and future 
global and domestic market for covered un-
manned aircraft systems that are not widely 
commercially available except from a covered 
foreign entity. 
(B) A description of the sustainability, 
availability, cost, and quality of secure sources 
of covered unmanned aircraft systems domesti-
1790 
cally and from sources in allied and partner 
countries. 
(C) The plan of the Secretary of Defense 
to address any gaps or deficiencies identified in 
subparagraph (B), including through the use of 
funds available under the Defense Production 
Act of 1950 (50 U.S.C. 4501 et seq.) and part-
nerships with the National Aeronautics and 
Space Administration and other interested per-
sons. 
(D) Such other information as the Under 
Secretary of Defense for Acquisition and 
Sustainment determines to be appropriate. 
(3) COVERED
UNMANNED
AIRCRAFT
SYSTEM 
DEFINED.—In this subsection, the term ‘‘covered 
unmanned aircraft system’’ means an unmanned air-
craft system (as defined in subsection (b)) and any 
components of such a system. 
DIVISION F—COMMITTEE ON 
HOMELAND SECURITY 
SEC. 50101. HOMELAND PROCUREMENT REFORM. 
(a) IN GENERAL.—Subtitle D of title VIII of the 
Homeland Security Act of 2002 (6 U.S.C. 391 et seq.) 
is amended by adding at the end the following:
1791 
‘‘SEC. 836. REQUIREMENTS TO BUY CERTAIN ITEMS RE-
LATED TO NATIONAL SECURITY INTERESTS. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) COVERED ITEM.—The term ‘covered item’ 
means any of the following: 
‘‘(A) Footwear provided as part of a uni-
form. 
‘‘(B) Uniforms. 
‘‘(C) Holsters and tactical pouches. 
‘‘(D) Patches, insignia, and embellish-
ments. 
‘‘(E) Chemical, biological, radiological, and 
nuclear protective gear. 
‘‘(F) Body armor components intended to 
provide ballistic protection for an individual, 
consisting of one or more of the following: 
‘‘(i) Soft ballistic panels. 
‘‘(ii) Hard ballistic plates. 
‘‘(iii) Concealed armor carriers worn 
under a uniform. 
‘‘(iv) External armor carriers worn 
over a uniform. 
‘‘(G) Any other item of clothing or protec-
tive equipment as determined appropriate by 
the Secretary.
1792 
‘‘(2) FRONTLINE OPERATIONAL COMPONENT.— 
The term ‘frontline operational component’ means 
any of the following of the Department: 
‘‘(A) U.S. Customs and Border Protection. 
‘‘(B) U.S. Immigration and Customs En-
forcement. 
‘‘(C) The United States Secret Service. 
‘‘(D) The Transportation Security Admin-
istration. 
‘‘(E) The Coast Guard. 
‘‘(F) The Federal Protective Service. 
‘‘(G) The Federal Emergency Management 
Agency. 
‘‘(H) The Federal Law Enforcement 
Training Centers. 
‘‘(I) The Cybersecurity and Infrastructure 
Security Agency. 
‘‘(b) REQUIREMENTS.— 
‘‘(1) IN GENERAL.—The Secretary shall ensure 
that any procurement of a covered item for a front-
line operational component satisfies the following 
criteria: 
‘‘(A) To the maximum extent possible, not 
less than one-third of funds obligated in a spe-
cific fiscal year for the procurement of such
1793 
covered items shall be covered items that are 
manufactured or supplied in the United States 
by entities that qualify as small business con-
cerns, as such term is described under section 
3 of the Small Business Act (15 U.S.C. 632). 
‘‘(B) Covered items may only be supplied 
pursuant to subparagraph (A) to the extent 
that United States entities that qualify as small 
business concerns are unable to manufacture 
covered items that meet the criteria identified 
in subparagraph (C). 
‘‘(C) Each contractor with respect to the 
procurement of such a covered item, including 
the end-item manufacturer of such a covered 
item— 
‘‘(i) is an entity registered with the 
System for Award Management (or suc-
cessor system) administered by the General 
Services Administration; and 
‘‘(ii) is in compliance with ISO 
9001:2015 of the International Organiza-
tion for Standardization (or successor 
standard) or a standard determined appro-
priate by the Secretary to ensure the qual-
1794 
ity of products and adherence to applicable 
statutory and regulatory requirements. 
‘‘(D) Each supplier of such a covered item 
with an insignia (such as any patch, badge, or 
emblem) and each supplier of such an insignia, 
if such covered item with such insignia or such 
insignia, as the case may be, is not produced, 
applied, or assembled in the United States, 
shall— 
‘‘(i) store such covered item with such 
insignia or such insignia in a locked area; 
‘‘(ii) report any pilferage or theft of 
such covered item with such insignia or 
such insignia occurring at any stage before 
delivery of such covered item with such in-
signia or such insignia; and 
‘‘(iii) destroy any such defective or 
unusable covered item with insignia or in-
signia in a manner established by the Sec-
retary, and maintain records, for three 
years after the creation of such records, of 
such destruction that include the date of 
such destruction, a description of the cov-
ered item with insignia or insignia de-
stroyed, the quantity of the covered item
1795 
with insignia or insignia destroyed, and the 
method of destruction. 
‘‘(2) WAIVER.— 
‘‘(A) IN GENERAL.—In the case of a na-
tional emergency declared by the President 
under the National Emergencies Act (50 U.S.C. 
1601 et seq.) or a major disaster declared by 
the President under section 401 of the Robert 
T. Stafford Disaster Relief and Emergency As-
sistance Act (42 U.S.C. 5170), the Secretary 
may waive criteria specified in subparagraph 
(A), (B) or (C) of paragraph (1) if the Sec-
retary determines there is an insufficient supply 
of a covered item that satisfies such criteria. 
‘‘(B) NOTICE.—Not later than 60 days 
after the date on which the Secretary deter-
mines a waiver under subparagraph (A) is nec-
essary, the Secretary shall provide to the Com-
mittee on Homeland Security and Govern-
mental Affairs and the Committee on Appro-
priations of the Senate and the Committee on 
Homeland Security, the Committee on Over-
sight and Reform, and the Committee on Ap-
propriations of the House of Representatives
1796 
notice of such determination, which shall in-
clude— 
‘‘(i) identification of the national 
emergency or major disaster at issue de-
clared by the President; 
‘‘(ii) identification of the covered item 
for which the Secretary intends to issue 
the waiver; and 
‘‘(iii) a description of the demand for 
the covered item and corresponding lack of 
supply from contractors able to satisfy cri-
teria specified in subparagraph (B) or (C) 
of paragraph (1). 
‘‘(c) PRICING.—The Secretary shall ensure that cov-
ered items are purchased at a fair and reasonable price, 
consistent with the procedures and guidelines specified in 
the Federal Acquisition Regulation. 
‘‘(d) REPORT.—Not later than one year after the 
date of enactment of this section and annually thereafter, 
the Secretary shall provide to the Committee on Homeland 
Security, the Committee on Oversight and Reform, and 
the Committee on Appropriations of the House of Rep-
resentatives, and the Committee on Homeland Security 
and Governmental Affairs and the Committee on Appro-
priations of the Senate a briefing on instances in which
1797 
vendors have failed to meet deadlines for delivery of cov-
ered items and corrective actions taken by the Department 
in response to such instances. 
‘‘(e) EFFECTIVE DATE.—This section applies with 
respect to a contract entered into by the Department or 
any frontline operational component on or after the date 
that is 180 days after the date of the enactment of this 
section.’’. 
(b) STUDY.— 
(1) IN GENERAL.—Not later than 18 months 
after the date of the enactment of this Act, the Sec-
retary of Homeland Security shall submit to the 
Committee on Homeland Security and Governmental 
Affairs of the Senate and the Committee on Home-
land Security of the House of Representatives a 
study of the adequacy of uniform allowances pro-
vided to employees of frontline operational compo-
nents (as such term is defined in section 836 of the 
Homeland Security Act of 2002, as added by sub-
section (a)). 
(2) REQUIREMENTS.—The study conducted 
under paragraph (1) shall— 
(A) be informed by a Department-wide 
survey of employees from across the Depart-
ment of Homeland Security who receive uni-
1798 
form allowances that seeks to ascertain what, if 
any, improvements could be made to the cur-
rent uniform allowances and what, if any, im-
pacts current allowances have had on employee 
morale and retention; 
(B) assess the adequacy of the most recent 
increase made to the uniform allowance for first 
year employees; and 
(C) consider increasing by 50 percent, at 
minimum, the annual allowance for all other 
employees. 
(c) ADDITIONAL REPORT.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, the Sec-
retary of Homeland Security shall provide a report 
with recommendations on how the Department of 
Homeland Security could procure additional items 
from domestic sources and bolster the domestic sup-
ply chain for items related to national security to— 
(A) the Committee on Homeland Security 
and Governmental Affairs and the Committee 
on Appropriations of the Senate; and 
(B) the Committee on Homeland Security, 
the Committee on Oversight and Reform, and
1799 
the Committee on Appropriations of the House 
of Representatives. 
(2) CONTENTS.—The report required under 
paragraph (1) shall include the following: 
(A) A review of the compliance of the De-
partment of Homeland Security with the re-
quirements under section 604 of title VI of divi-
sion A of the American Recovery and Reinvest-
ment Act of 2009 (6 U.S.C. 453b) to buy cer-
tain items related to national security interests 
from sources in the United States. 
(B) An assessment of the capacity of the 
Department of Homeland Security to procure 
the following items from domestic sources: 
(i) Personal protective equipment and 
other items necessary to respond to a pan-
demic such as that caused by COVID–19. 
(ii) Helmets that provide ballistic pro-
tection and other head protection and com-
ponents. 
(iii) Rain gear, cold weather gear, and 
other environmental and flame resistant 
clothing. 
(d) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) of the Homeland Security Act of 2002
1800 
(Public Law 107–296; 116 Stat. 2135) is amended by in-
serting after the item relating to section 835 the following 
new item: 
‘‘Sec. 836. Requirements to buy certain items related to national security inter-
ests.’’. 
SEC. 50102. DHS SOFTWARE SUPPLY CHAIN RISK MANAGE-
MENT. 
(a) GUIDANCE.—The Secretary of Homeland Secu-
rity, acting through the Under Secretary, shall issue guid-
ance with respect to new covered contracts. 
(b) NEW
COVERED
CONTRACTS.—In developing 
guidance under subsection (a), with respect to each new 
covered contract, as a condition on the award of such a 
contract, each contractor responding to a solicitation for 
such a contract shall submit to the covered officer— 
(1) a planned bill of materials when submitting 
a bid proposal; and 
(2) the certification and notifications described 
in subsection (d). 
(c) UPDATING BILL OF MATERIALS.—With respect 
to a covered contract, in the case of a change to the infor-
mation included in a bill of materials submitted pursuant 
to subsection (b)(1), each contractor shall submit to the 
covered officer in a timely manner the update to such bill 
of materials.
1801 
(d) CERTIFICATION AND NOTIFICATIONS.—The cer-
tification and notifications referred to in subsection (b)(2), 
with respect to a covered contract, are the following: 
(1) A certification that each item listed on the 
submitted bill of materials is free from all known 
vulnerabilities or defects affecting the security of the 
end product or service identified in— 
(A) the National Institute of Standards 
and Technology National Vulnerability Data-
base; and 
(B) any database designated by the Under 
Secretary, in coordination with the Director of 
the Cybersecurity and Infrastructure Security 
Agency, that tracks security vulnerabilities and 
defects in open source or third-party developed 
software. 
(2) A notification of each vulnerability or defect 
affecting the security of the end product or service, 
if identified, through— 
(A) the certification of such submitted bill 
of materials required under paragraph (1); or 
(B) any other manner of identification. 
(3) A notification relating to the plan to miti-
gate, repair, or resolve each security vulnerability or
1803 
(2) information relating to the engagement of 
the Department of Homeland Security with indus-
try; 
(3) an assessment of how the guidance issued 
pursuant to subsection (a) complies with Executive 
Order No. 14208 (86 Fed. Reg. 26633; relating to 
improving the nation’s cybersecurity); and 
(4) any recommendations relating to improving 
the supply chain with respect to covered contracts. 
(i) DEFINITIONS.—In this section: 
(1) BILL OF MATERIALS.—The term ‘‘bill of 
materials’’ means a list of the parts and components 
(whether new or reused) of an end product or serv-
ice, including, with respect to each part and compo-
nent, information relating to the origin, composition, 
integrity, and any other information as determined 
appropriate by the Under Secretary. 
(2) COVERED CONTRACT.—The term ‘‘covered 
contract’’ means a contract relating to the procure-
ment of covered information and communications 
technology or services for the Department of Home-
land Security. 
(3) COVERED INFORMATION AND COMMUNICA-
TIONS TECHNOLOGY OR SERVICES.—The term ‘‘cov-
1804 
ered information and communications technology or 
services’’ means the terms— 
(A) ‘‘information technology’’ (as such 
term is defined in section 11101(6) of title 40, 
United States Code); 
(B) ‘‘information system’’ (as such term is 
defined in section 3502(8) of title 44, United 
States Code); 
(C) ‘‘telecommunications equipment’’ (as 
such term is defined in section 3(52) of the 
Communications Act of 1934 (47 U.S.C. 
153(52))); and 
(D) ‘‘telecommunications service’’ (as such 
term is defined in section 3(53) of the Commu-
nications Act of 1934 (47 U.S.C. 153(53))). 
(4) COVERED OFFICER.—The term ‘‘covered of-
ficer’’ means— 
(A) a contracting officer of the Depart-
ment of Homeland Security; and 
(B) any other official of the Department as 
determined appropriate by the Under Secretary. 
(5) SOFTWARE.—The term ‘‘software’’ means 
computer programs and associated data that may be 
dynamically written or modified during execution.
1805 
(6) UNDER
SECRETARY.—The term ‘‘Under 
Secretary’’ means the Under Secretary for Manage-
ment of the Department of Homeland Security. 
SEC. 50103. DEPARTMENT OF HOMELAND SECURITY MEN-
TOR-PROTE´ GE´ PROGRAM. 
(a) IN GENERAL.—Subtitle H of title VIII of the 
Homeland Security Act of 2002 (6 U.S.C. 451 et seq.) 
is amended by adding at the end the following new section: 
‘‘SEC. 890B. MENTOR-PROTE´ GE´ PROGRAM. 
‘‘(a) ESTABLISHMENT.—There is established in the 
Department a mentor-prote´ge´ program (in this section re-
ferred to as the ‘Program’) under which a mentor firm 
enters into an agreement with a prote´ge´ firm for the pur-
pose of assisting the prote´ge´ firm to compete for prime 
contracts and subcontracts of the Department. 
‘‘(b) ELIGIBILITY.—The Secretary shall establish cri-
teria for mentor firms and prote´ge´ firms to be eligible to 
participate in the Program, including a requirement that 
a firm is not included on any list maintained by the Fed-
eral Government of contractors that have been suspended 
or debarred. 
‘‘(c) PROGRAM APPLICATION AND APPROVAL.— 
‘‘(1) APPLICATION.—The 
Secretary, 
acting 
through the Office of Small and Disadvantaged 
Business Utilization of the Department, shall estab-
1806 
lish a process for submission of an application joint-
ly by a mentor firm and the prote´ge´ firm selected by 
the mentor firm. The application shall include each 
of the following: 
‘‘(A) A description of the assistance to be 
provided by the mentor firm, including, to the 
extent available, the number and a brief de-
scription of each anticipated subcontract to be 
awarded to the prote´ge´ firm. 
‘‘(B) A schedule with milestones for 
achieving the assistance to be provided over the 
period of participation in the Program. 
‘‘(C) An estimate of the costs to be in-
curred by the mentor firm for providing assist-
ance under the Program. 
‘‘(D) Attestations that Program partici-
pants will submit to the Secretary reports at 
times specified by the Secretary to assist the 
Secretary in evaluating the prote´ge´ firm’s devel-
opmental progress. 
‘‘(E) Attestations that Program partici-
pants will inform the Secretary in the event of 
a change in eligibility or voluntary withdrawal 
from the Program.
1807 
‘‘(2) APPROVAL.—Not later than 60 days after 
receipt of an application pursuant to paragraph (1), 
the head of the Office of Small and Disadvantaged 
Business Utilization shall notify applicants of ap-
proval or, in the case of disapproval, the process for 
resubmitting an application for reconsideration. 
‘‘(3) RESCISSION.—The head of the Office of 
Small and Disadvantaged Business Utilization may 
rescind the approval of an application under this 
subsection if it determines that such action is in the 
best interest of the Department. 
‘‘(d) PROGRAM DURATION.—A mentor firm and 
prote´ge´ firm approved under subsection (c) shall enter into 
an agreement to participate in the Program for a period 
of not less than 36 months. 
‘‘(e) PROGRAM BENEFITS.—A mentor firm and 
prote´ge´ firm that enter into an agreement under this sec-
tion may receive the following Program benefits: 
‘‘(1) With respect to an award of a contract 
that requires a subcontracting plan, a mentor firm 
may receive evaluation credit for participating in the 
Program. 
‘‘(2) With respect to an award of a contract 
that requires a subcontracting plan, a mentor firm 
may receive credit for a prote´ge´ firm performing as
1808 
a first tier subcontractor or a subcontractor at any 
tier in an amount equal to the total dollar value of 
any subcontracts awarded to such prote´ge´ firm. 
‘‘(3) A prote´ge´ firm may receive technical, man-
agerial, financial, or any other mutually agreed upon 
benefit from a mentor firm, including a subcontract 
award. 
‘‘(f) REPORTING.—Not later than one year after the 
date of the enactment of this section and annually there-
after, the head of the Office of Small and Disadvantaged 
Business Utilization shall submit to the Committee on 
Homeland Security and Governmental Affairs and the 
Committee on Small Business and Entrepreneurship of 
the Senate and the Committee on Homeland Security and 
the Committee on Small Business of the House of Rep-
resentatives a report covering the immediately preceding 
12 month period that— 
‘‘(1) identifies each agreement between a men-
tor firm and a prote´ge´ firm entered into under this 
section, including the number of prote´ge´ firm par-
ticipants that are— 
‘‘(A) small business concerns; 
‘‘(B) small business concerns owned and 
controlled by veterans;
1809 
‘‘(C) small business concerns owned and 
controlled by service-disabled veterans; 
‘‘(D) qualified HUBZone small business 
concerns; 
‘‘(E) small business concerns owned and 
controlled by socially and economically dis-
advantaged individuals; 
‘‘(F) small business concerns owned and 
controlled by women; 
‘‘(G) historically Black colleges and univer-
sities; and 
‘‘(H) minority-serving institutions; 
‘‘(2) describes the type of assistance provided 
by mentor firms to prote´ge´ firms; 
‘‘(3) identifies contracts within the Department 
in which a mentor firm serving as the prime con-
tractor provided subcontracts to a prote´ge´ firm 
under the Program; and 
‘‘(4) assesses the degree to which there has 
been— 
‘‘(A) an increase in the technical capabili-
ties of prote´ge´ firms; and 
‘‘(B) an increase in the quantity and esti-
mated value of prime contract and subcontract
1810 
awards to prote´ge´ firms for the period covered 
by each such report. 
‘‘(g) RULE OF CONSTRUCTION.—Nothing in this sec-
tion may be construed to limit, diminish, impair, or other-
wise affect the authority of the Department to participate 
in any program carried out by or requiring approval of 
the Small Business Administration or adopt or follow any 
regulation or policy that the Administrator of the Small 
Business Administration may promulgate, except that, to 
the extent that any provision of this section conflicts with 
any other provision of law, regulation, or policy, this sec-
tion shall control. 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) HISTORICALLY BLACK COLLEGE OR UNI-
VERSITY.—The term ‘historically Black college or 
university’ has the meaning given the term ‘part B 
institution’ in section 322 of the Higher Education 
Act of 1965 (20 U.S.C. 1061). 
‘‘(2) MENTOR FIRM.—The term ‘mentor firm’ 
means a for-profit business concern that is not a 
small business concern that— 
‘‘(A) has the ability to assist and commits 
to assisting a prote´ge´ to compete for Federal 
prime contracts and subcontracts; and
1811 
‘‘(B) satisfies any other requirements im-
posed by the Secretary. 
‘‘(3) MINORITY-SERVING
INSTITUTION.—The 
term ‘minority-serving institution’ means an institu-
tion of higher education described in section 371 of 
the Higher Education Act of 1965 (20 U.S.C. 
1067q(a)). 
‘‘(4) PROTE´GE´ FIRM.—The term ‘prote´ge´ firm’ 
means a small business concern, a historically Black 
college or university, or a minority-serving institu-
tion that— 
‘‘(A) is eligible to enter into a prime con-
tract or subcontract with the Department; and 
‘‘(B) satisfies any other requirements im-
posed by the Secretary. 
‘‘(5) SMALL BUSINESS ACT DEFINITIONS.—The 
terms ‘small business concern’, ‘small business con-
cern owned and controlled by veterans’, ‘small busi-
ness concern owned and controlled by service-dis-
abled veterans’, ‘qualified HUBZone small business 
concern’, ‘and small business concern owned and 
controlled by women’ have the meanings given such 
terms, respectively, under section 3 of the Small 
Business Act (15 U.S.C. 632). The term ‘small busi-
ness concern owned and controlled by socially and
1812 
economically disadvantaged individuals’ has the 
meaning given such term in section 8(d)(3)(C) of 
the Small Business Act (15 U.S.C. 637(d)(3)(C)).’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) of the Homeland Security Act of 2002 is 
amended by inserting after the item relating to section 
890A the following new item: 
‘‘Sec. 890B. Mentor-prote´ge´ program.’’. 
SEC. 50104. UNMANNED AERIAL SECURITY. 
(a) PROHIBITION ON AGENCY OPERATION OR PRO-
CUREMENT.—Except as provided in subsection (b) and 
subsection (c)(3), the Secretary of Homeland Security 
may not operate, provide financial assistance for, or enter 
into or renew a contract for the procurement of— 
(1) an unmanned aircraft system (UAS) that— 
(A) is manufactured in a covered foreign 
country or by a corporation domiciled in a cov-
ered foreign country; 
(B) uses flight controllers, radios, data 
transmission devices, cameras, or gimbals man-
ufactured in a covered foreign country or by a 
corporation domiciled in a covered foreign coun-
try; 
(C) uses a ground control system or oper-
ating software developed in a covered foreign
1813 
country or by a corporation domiciled in a cov-
ered foreign country; or 
(D) uses network connectivity or data stor-
age located in a covered foreign country or ad-
ministered by a corporation domiciled in a cov-
ered foreign country; 
(2) a software operating system associated with 
a UAS that uses network connectivity or data stor-
age located in a covered foreign country or adminis-
tered by a corporation domiciled in a covered foreign 
country; or 
(3) a system for the detection or identification 
of a UAS, which system is manufactured in a cov-
ered foreign country or by a corporation domiciled in 
a covered foreign country. 
(b) WAIVER.— 
(1) IN GENERAL.—The Secretary of Homeland 
Security is authorized to waive the prohibition under 
subsection (a) if the Secretary certifies in writing to 
the Committee on Homeland Security of the House 
of Representatives and the Committee on Homeland 
Security and Governmental Affairs of the Senate 
and the Permanent Select Committee on Intelligence 
of the House of Representatives and the Select Com-
mittee on Intelligence of the Senate that a UAS, a
1814 
software operating system associated with a UAS, or 
a system for the detection or identification of a UAS 
referred to in any of subparagraphs (A) through (C) 
of paragraph (1) of such subsection that is the sub-
ject of such a waiver is required— 
(A) in the national interest of the United 
States; 
(B) for counter-UAS surrogate research, 
testing, development, evaluation, or training; or 
(C) for intelligence, electronic warfare, or 
information warfare operations, testing, anal-
ysis, and or training. 
(2) NOTICE.—The certification described in 
paragraph (1) shall be submitted to the Committees 
specified in such paragraph by not later than the 
date that is 14 days after the date on which a waiv-
er is issued under such paragraph. 
(c) EFFECTIVE DATES.— 
(1) IN GENERAL.—This section shall take effect 
on the date that is 120 days after the date of the 
enactment of this Act. 
(2) WAIVER PROCESS.—Not later than 60 days 
after the date of the enactment of this Act, the Sec-
retary of Homeland Security shall establish a proc-
ess by which the head of an office or component of
1815 
the Department of Homeland Security may request 
a waiver under subsection (b). 
(3) EXCEPTION.—Notwithstanding the prohibi-
tion under subsection (a), the head of an office or 
component of the Department of Homeland Security 
may continue to operate a UAS, a software oper-
ating system associated with a UAS, or a system for 
the detection or identification of a UAS described in 
any of paragraphs (1) through (3) of such sub-
section that was in the inventory of such office or 
component on the day before the effective date of 
this section until— 
(A) such time as the Secretary of Home-
land Security has— 
(i) granted a waiver relating thereto 
under subsection (b), or 
(ii) declined to grant such a waiver, or 
(B) one year after the date of the enact-
ment of this Act, 
whichever is later. 
(d) DRONE ORIGIN SECURITY REPORT
TO CON-
GRESS.—Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Homeland Security 
shall submit to the Committee on Homeland Security of 
the House of Representatives and the Committee on
1816 
Homeland Security and Governmental Affairs of the Sen-
ate a terrorism threat assessment and report that contains 
information relating to the following: 
(1) The extent to which the Department of 
Homeland Security has previously analyzed the 
threat that a UAS, a software operating system as-
sociated with a UAS, or a system for the detection 
or identification of a UAS from a covered foreign 
country operating in the United States poses, and 
the results of such analysis. 
(2) The number of UAS, software operating 
systems associated with a UAS, or systems for the 
detection or identification of a UAS from a covered 
foreign country in operation by the Department, in-
cluding an identification of the component or office 
of the Department at issue, as of such date. 
(3) The extent to which information gathered 
by such a UAS, a software operating system associ-
ated with a UAS, or a system for the detection or 
identification of a UAS from a covered foreign coun-
try could be employed to harm the national or eco-
nomic security of the United States. 
(e) DEFINITIONS.—In this section: 
(1) COVERED FOREIGN COUNTRY.—The term 
‘‘covered foreign country’’ means a country that—
1817 
(A) the intelligence community has identi-
fied as a foreign adversary in its most recent 
Annual Threat Assessment; or 
(B) the Secretary of Homeland Security, 
in coordination with the Director of National 
Intelligence, has identified as a foreign adver-
sary that is not included in such Annual Threat 
Assessment. 
(2) INTELLIGENCE
COMMUNITY.—The term 
‘‘intelligence community’’ has the meaning given 
such term in section 3(4) of the National Security 
Act of 1947 (50 U.S.C. 3003(4)). 
(3) UNMANNED AIRCRAFT SYSTEM; UAS.—The 
terms ‘‘unmanned aircraft system’’ and ‘‘UAS’’ have 
the meaning given the term ‘‘unmanned aircraft sys-
tem’’ in section 341 of the FAA Modernization Act 
of 2018 (Public Law 115–254). 
SEC. 50105. METRICS AND REPORTS ON TECHNOLOGIES RE-
LATING TO IRREGULAR MIGRATION ALONG 
THE SOUTHERN BORDER. 
(a) METRICS.—Not later than one year after the date 
of the enactment of this Act, the Commissioner of U.S. 
Customs and Border Protection (CBP) shall develop 
metrics to measure how procured technologies have helped 
deter or address irregular migration along the southern
1818 
border, including ways in which technologies have altered 
migration routes and patterns. 
(b) REPORTS.— 
(1) INITIAL REPORT.—Not later than 180 days 
after the date of the enactment of this Act, the 
Commissioner shall submit to the Committee on 
Homeland Security of the House of Representatives 
and the Committee on Homeland Security and Gov-
ernmental Affairs a report on progress made toward 
developing the metrics required under subsection (a). 
(2) FINAL REPORT.—Not later than 180 days 
after completion of the development of such metrics, 
the Commissioner shall submit to the Committee on 
Homeland Security of the House of Representatives 
and the Committee on Homeland Security and Gov-
ernmental Affairs a report on the findings of CBP 
relating to the effectiveness of implemented tech-
nologies on deterring or addressing irregular migra-
tion along the southern border. 
SEC. 50106. REPORT ON CURRENT STANDARDS AND GUIDE-
LINES FOR MANAGING PORTS OF ENTRY 
UNDER THE CONTROL OF THE DEPARTMENT 
OF HOMELAND SECURITY. 
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of Homeland Security, in
1819 
coordination with the Secretary of Commerce, shall submit 
to the Committee on Homeland Security of the House of 
Representatives and the Committee on Homeland Security 
and Governmental Affairs a report that contains an as-
sessment of the current standards and guidelines for man-
aging ports of entry under the control of the Department 
of Homeland Security. Such assessment shall include in-
formation relating to the following: 
(1) Staffing levels and need for additional staff-
ing. 
(2) Rules governing the actions of Office of 
Field Operations officers. 
(3) Average delays for transit through air, land, 
and sea ports of entry. 
(4) Assessment of existing efforts and tech-
nologies used for border security, and the effect of 
the use of such efforts and technologies on facili-
tating trade at ports of entry and their impact on 
civil rights, private property rights, privacy rights, 
and civil liberties. 
(5) Economic impact of the policies and prac-
tices of CBP Agricultural Specialists and Office of 
Field Operations personnel. 
(6) Physical infrastructure and technological 
needs at ports of entry.
1820 
(7) Data reflecting the specific needs of geo-
graphically separate ports of entry within the same 
U.S. Border Patrol sector. 
SEC. 50107. IMPROVING CYBERSECURITY OF SMALL ENTI-
TIES. 
(a) DEFINITIONS.—In this section: 
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Small Busi-
ness Administration. 
(2) ANNUAL CYBERSECURITY REPORT; SMALL 
BUSINESS; SMALL ENTITY; SMALL GOVERNMENTAL 
JURISDICTION; SMALL
ORGANIZATION.—The terms 
‘‘annual cybersecurity report’’, ‘‘small business’’, 
‘‘small entity’’, ‘‘small governmental jurisdiction’’, 
and ‘‘small organization’’ have the meanings given 
those terms in section 2220D of the Homeland Se-
curity Act of 2002, as added by subsection (b). 
(3) CISA.—The term ‘‘CISA’’ means the Cy-
bersecurity and Infrastructure Security Agency. 
(4) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Trade Commission. 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Commerce. 
(b) ANNUAL REPORT.—
1821 
(1) AMENDMENT.—Subtitle A of title XXII of 
the Homeland Security Act of 2002 (6 U.S.C. 651 
et seq.) is amended by adding at the end the fol-
lowing: 
‘‘SEC. 
2220D. 
ANNUAL 
CYBERSECURITY 
REPORT 
FOR 
SMALL ENTITIES. 
‘‘(a) DEFINITIONS.— 
‘‘(1) ADMINISTRATION.—The term ‘Administra-
tion’ means the Small Business Administration. 
‘‘(2) ADMINISTRATOR.—The term ‘Adminis-
trator’ means the Administrator of the Administra-
tion. 
‘‘(3) ANNUAL
CYBERSECURITY
REPORT.—The 
term ‘annual cybersecurity report’ means the annual 
cybersecurity report published and promoted under 
subsections (b) and (c), respectively. 
‘‘(4) COMMISSION.—The term ‘Commission’ 
means the Federal Trade Commission. 
‘‘(5) ELECTRONIC
DEVICE.—The term ‘elec-
tronic device’ means any electronic equipment that 
is— 
‘‘(A) used by an employee or contractor of 
a small entity for the purpose of performing 
work for the small entity;
1822 
‘‘(B) capable of connecting to the internet 
or another communication network; and 
‘‘(C) capable of sending, receiving, or proc-
essing personal information. 
‘‘(6) NIST.—The term ‘NIST’ means the Na-
tional Institute of Standards and Technology. 
‘‘(7) SMALL BUSINESS.—The term ‘small busi-
ness’ has the meaning given the term ‘small business 
concern’ under section 3 of the Small Business Act 
(15 U.S.C. 632). 
‘‘(8) SMALL ENTITY.—The term ‘small entity’ 
means— 
‘‘(A) a small business; 
‘‘(B) a small governmental jurisdiction; 
and 
‘‘(C) a small organization. 
‘‘(9) SMALL GOVERNMENTAL JURISDICTION.— 
The term ‘small governmental jurisdiction’ means 
governments of cities, counties, towns, townships, 
villages, school districts, or special districts with a 
population of less than 50,000. 
‘‘(10) SMALL ORGANIZATION.—The term ‘small 
organization’ means any not-for-profit enterprise 
that is independently owned and operated and is not 
dominant in its field.
1823 
‘‘(b) ANNUAL CYBERSECURITY REPORT.— 
‘‘(1) IN GENERAL.—Not later than 180 days 
after the date of enactment of this section, and not 
less frequently than annually thereafter, the Director 
shall publish a report for small entities that docu-
ments and promotes evidence-based cybersecurity 
policies and controls for use by small entities, which 
shall— 
‘‘(A) include basic controls that have the 
most impact in protecting small entities against 
common cybersecurity threats and risks; 
‘‘(B) include protocols and policies to ad-
dress common cybersecurity threats and risks 
posed by electronic devices, regardless of wheth-
er the electronic devices are— 
‘‘(i) issued by the small entity to em-
ployees and contractors of the small entity; 
or 
‘‘(ii) personal to the employees and 
contractors of the small entity; and 
‘‘(C) recommend, as practicable— 
‘‘(i) measures to improve the cyberse-
curity of small entities; and 
‘‘(ii) configurations and settings for 
some of the most commonly used software
1824 
that can improve the cybersecurity of small 
entities. 
‘‘(2) EXISTING RECOMMENDATIONS.—The Di-
rector shall ensure that each annual cybersecurity 
report published under paragraph (1) incorporates— 
‘‘(A) cybersecurity resources developed by 
NIST, as required by the NIST Small Business 
Cybersecurity Act (Public Law 115–236); and 
‘‘(B) the most recent version of the Cyber-
security Framework, or successor resource, 
maintained by NIST. 
‘‘(3) CONSIDERATION FOR SPECIFIC TYPES OF 
SMALL ENTITIES.—The Director may include and 
prioritize the development of cybersecurity rec-
ommendations, as required under paragraph (1), ap-
propriate for specific types of small entities in addi-
tion to recommendations applicable for all small en-
tities. 
‘‘(4) CONSULTATION.—In publishing the annual 
cybersecurity report under paragraph (1), the Direc-
tor shall, to the degree practicable and as appro-
priate, consult with— 
‘‘(A) the Administrator, the Secretary of 
Commerce, the Commission, and the Director of 
NIST;
1825 
‘‘(B) small entities, insurers, State govern-
ments, companies that work with small entities, 
and academic and Federal and non-Federal ex-
perts in cybersecurity; and 
‘‘(C) any other entity as determined appro-
priate by the Director. 
‘‘(c) PROMOTION OF ANNUAL CYBERSECURITY RE-
PORT FOR SMALL BUSINESSES.— 
‘‘(1) PUBLICATION.—The annual cybersecurity 
report, and previous versions of the report as appro-
priate, published under subsection (b)(1) shall be— 
‘‘(A) made available, prominently and free 
of charge, on the public website of the Agency; 
and 
‘‘(B) linked to from relevant portions of 
the websites of the Administration and the Mi-
nority Business Development Agency, as deter-
mined by the Administrator and the Director of 
the Minority Business Development Agency, re-
spectively. 
‘‘(2) PROMOTION GENERALLY.—The Director, 
the Administrator, and the Secretary of Commerce 
shall, to the degree practicable, promote the annual 
cybersecurity report through relevant resources that 
are intended for or known to be regularly used by
1826 
small entities, including agency documents, websites, 
and events. 
‘‘(d) TRAINING AND TECHNICAL ASSISTANCE.—The 
Director, the Administrator, and the Director of the Mi-
nority Business Development Agency shall make available 
to employees of small entities voluntary training and tech-
nical assistance on how to implement the recommenda-
tions of the annual cybersecurity report.’’. 
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENT.—The table of contents in section 1(b) of the 
Homeland Security Act of 2002 (Public 107–296; 
116 Stat. 2135) is amended by inserting after the 
item relating to section 2220C the following: 
‘‘Sec. 2220D. Annual cybersecurity report for small entities.’’. 
(c) REPORT TO CONGRESS.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, and annually 
thereafter for 10 years, the Secretary shall submit to 
Congress a report describing methods to improve the 
cybersecurity of small entities, including through the 
adoption of policies, controls, and classes of products 
and services that have been demonstrated to reduce 
cybersecurity risk. 
(2) MATTERS TO BE INCLUDED.—The report 
required under paragraph (1) shall—
1827 
(A) identify barriers or challenges for 
small entities in purchasing or acquiring classes 
of products and services that promote the cy-
bersecurity of small entities; 
(B) assess market availability, market pric-
ing, and affordability of classes of products and 
services that promote the cybersecurity of small 
entities, with particular attention to identifying 
high-risk and underserved sectors or regions; 
(C) estimate the costs and benefits of poli-
cies that promote the cybersecurity of small en-
tities, including— 
(i) tax breaks; 
(ii) grants and subsidies; and 
(iii) other incentives as determined 
appropriate by the Secretary; 
(D) describe evidence-based cybersecurity 
controls and policies that improve the cyberse-
curity of small entities; 
(E) with respect to the incentives described 
in subparagraph (C), recommend measures that 
can effectively improve cybersecurity at scale 
for small entities; and 
(F) include any other matters as the Sec-
retary determines relevant.
1828 
(3) SPECIFIC SECTORS OF SMALL ENTITIES.— 
In preparing the report required under paragraph 
(1), the Secretary may include matters applicable for 
specific sectors of small entities in addition to mat-
ters applicable to all small entities. 
(4) CONSULTATION.—In preparing the report 
required under paragraph (1), the Secretary shall 
consult with— 
(A) the Administrator, the Director of 
CISA, and the Commission; and 
(B) small entities, insurers of risks related 
to cybersecurity, State governments, cybersecu-
rity and information technology companies that 
work with small entities, and academic and 
Federal and non-Federal experts in cybersecu-
rity. 
(d) RULE OF CONSTRUCTION.—Nothing in this sec-
tion or the amendments made by this section shall be con-
strued to provide any additional regulatory authority to 
CISA. 
SEC. 50108. CRITICAL TECHNOLOGY SECURITY CENTERS. 
(a) CRITICAL TECHNOLOGY SECURITY CENTERS.— 
Title III of the Homeland Security Act of 2002 (6 U.S.C. 
181 et seq.) is amended by adding at the end the following 
new section:
1829 
‘‘SEC. 323. CRITICAL TECHNOLOGY SECURITY CENTERS. 
‘‘(a) ESTABLISHMENT.—Not later than 180 days 
after the date of the enactment of this section, the Sec-
retary, acting through the Under Secretary for Science 
and Technology, and in coordination with the Director of 
the Cybersecurity and Infrastructure Security Agency, 
shall award grants, contracts, or cooperative agreements 
to covered entities for the establishment of not fewer than 
four cybersecurity-focused Critical Technology Security 
Centers to evaluate and test the security of devices and 
technologies that underpin national critical functions. 
‘‘(b) INITIAL CENTERS.—With respect to the Critical 
Technology Security Centers referred to in subsection (a), 
four of such centers shall be as follows: 
‘‘(1) The Center for Network Technology Secu-
rity, to study the security of information and com-
munications technology that underpins national crit-
ical functions related to communications. 
‘‘(2) The Center for Connected Industrial Con-
trol System Security, to study the security of con-
nected programmable data logic controllers, super-
visory control and data acquisition servers, and 
other networked industrial equipment. 
‘‘(3) The Center for Open Source Software Se-
curity, to study vulnerabilities in open source soft-
ware used to support national critical functions.
1830 
‘‘(4) The Center for Federal Critical Software 
Security, to study the security of software used by 
the Federal Government that performs functions 
critical to trust (such as affording or requiring ele-
vated system privileges or direct access to net-
working and computing resources). 
‘‘(c) ADDITIONAL CENTERS.—The Under Secretary 
may, in coordination with the Director, award grants, con-
tracts, or cooperative agreements to covered entities for 
the establishment of additional Critical Technology Secu-
rity Centers to address technologies vital to national crit-
ical functions. 
‘‘(d) SELECTION OF CRITICAL TECHNOLOGIES.—Be-
fore awarding a grant, contract, or cooperative agreement 
to a covered entity to establish a Critical Technology Secu-
rity Center, the Under Secretary shall consult with the 
Director, who shall provide the Under Secretary a list of 
technologies within the remit of the center that support 
national critical functions. 
‘‘(e) RESPONSIBILITIES.—In studying the security of 
technologies within its remit, each center shall have the 
following responsibilities: 
‘‘(1) Conducting rigorous security testing to 
identify vulnerabilities in such technologies.
1831 
‘‘(2) Reporting new vulnerabilities found and 
the tools, techniques, and practices used to uncover 
such vulnerabilities to the developers of such tech-
nologies in question and to the Cybersecurity and 
Infrastructure Security Agency. 
‘‘(3) With respect to such technologies, devel-
oping new capabilities for vulnerability discovery, 
management, and mitigation. 
‘‘(4) Assessing the security of software essential 
to national critical functions. 
‘‘(5) Supporting existing communities of inter-
est, including by granting funds, in remediating 
vulnerabilities discovered within such technologies. 
‘‘(6) Utilizing findings to inform and support 
the future work of the Cybersecurity and Infrastruc-
ture Security Agency. 
‘‘(f) APPLICATION.—To be eligible for an award of 
a grant, contract, or cooperative agreement as a Critical 
Technology Security Center pursuant to subsection (a), a 
covered entity shall submit to the Secretary an application 
at such time, in such manner, and including such informa-
tion as the Secretary may require. 
‘‘(g) PUBLIC REPORTING OF VULNERABILITIES.— 
The Undersecretary shall ensure that vulnerabilities iden-
tified by a Critical Technology Security Center are pub-
1832 
licly reported through the National Vulnerability Data-
base, as appropriate. 
‘‘(h) ADDITIONAL
GUIDANCE.—The Under Sec-
retary, in coordination with the Director, shall develop, 
and periodically update, guidance, including eligibility and 
any additional requirements, for how Critical Technology 
Security Centers may award funds to communities of in-
terest to remediate vulnerabilities under subsection (e)(5). 
‘‘(i) BIANNUAL REPORTS.—Not later than one year 
after the date of the enactment of this section and every 
two years thereafter, the Under Secretary shall submit to 
the appropriate congressional committees a report that in-
cludes, with respect to each Critical Technology Security 
Center the following: 
‘‘(1) A summary of the work performed by each 
such center. 
‘‘(2) Information relating to the allocation of 
Federal funds at each such center. 
‘‘(3) A description of each vulnerability identi-
fied, including information relating to the cor-
responding software weakness. 
‘‘(4) An assessment of the criticality of each 
vulnerability identified pursuant to paragraph (3). 
‘‘(5) A list of critical technologies studied by 
each center, including an explanation by the Under
1833 
Secretary for any deviations from the list of tech-
nologies provided by the Director before the distribu-
tion of funding to the center. 
‘‘(6) A list of tools, techniques, and procedures 
used by each such center. 
‘‘(j) CONSULTATION WITH RELEVANT AGENCIES.— 
In carrying out this section, the Under Secretary shall 
consult with the heads of other Federal agencies con-
ducting cybersecurity research, including the following: 
‘‘(1) The National Institute of Standards and 
Technology. 
‘‘(2) The National Science Foundation. 
‘‘(3) Relevant agencies within the Department 
of Energy. 
‘‘(4) Relevant agencies within the Department 
of Defense. 
‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this sec-
tion— 
‘‘(1) $40,000,000 for fiscal year 2022; 
‘‘(2) $42,000,000 for fiscal year 2023; 
‘‘(3) $44,000,000 for fiscal year 2024; 
‘‘(4) $46,000,000 for fiscal year 2025; and 
‘‘(5) $49,000,000 for fiscal year 2026. 
‘‘(l) DEFINITIONS.—In this section:
1834 
‘‘(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘appropriate congressional com-
mittees’ means— 
‘‘(A) the Committee on Homeland Security 
of the House of Representatives; and 
‘‘(B) the Committee on Homeland Security 
and Governmental Affairs of the Senate. 
‘‘(2) COVERED ENTITY.—The term ‘covered en-
tity’ means a university or federally funded research 
and development center, including a national labora-
tory, or a consortia thereof. 
‘‘(3) CRITICAL TECHNOLOGY.—The term ‘crit-
ical technology’ means technology relating to a na-
tional critical function. 
‘‘(4) OPEN
SOURCE
SOFTWARE.—The term 
‘open source software’ means software for which the 
human-readable source code is freely available for 
use, study, re-use, modification, enhancement, and 
redistribution by the users of such software.’’. 
(b) IDENTIFICATION OF CERTAIN TECHNOLOGY.— 
Paragraph (1) of section 2202(e) of the Homeland Secu-
rity Act of 2002 (6 U.S.C. 603(e)) is amended by adding 
at the end the following new subparagraph: 
‘‘(S) To identify the technologies within 
the remits of the Critical Technology Security
1835 
centers as described in section 322 that are 
vital to national critical functions.’’. 
(c) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) of the Homeland Security Act of 2002 is 
amended by inserting after the item relating to section 
321 the following new item: 
‘‘Sec. 323. Critical Technology Security Centers.’’. 
DIVISION G—COMMITTEE ON 
FINANCIAL SERVICES 
TITLE I—U.S. POLICY ON WORLD 
BANK GROUP AND ASIAN DE-
VELOPMENT BANK LOANS TO 
CHINA 
SEC. 60101. U.S. POLICY ON WORLD BANK GROUP AND 
ASIAN 
DEVELOPMENT 
BANK 
LOANS 
TO 
CHINA. 
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. 1632. U.S. POLICY ON WORLD BANK GROUP AND 
ASIAN 
DEVELOPMENT 
BANK 
LOANS 
TO 
CHINA. 
‘‘(a) IN GENERAL.—The Secretary of the Treasury 
shall instruct the United States Executive Directors at the 
World Bank Group and the Asian Development Bank to 
use the voice and vote of the United States at the respec-
1836 
tive institution to vote against any assistance to the Peo-
ple’s Republic of China unless the Secretary of the Treas-
ury has certified to the appropriate congressional commit-
tees that— 
‘‘(1) the Government of the People’s Republic 
of China and any lenders owned or controlled by the 
Government of the People’s Republic of China have 
credibly committed— 
‘‘(A) to participate in multilateral debt re-
lief initiatives on terms at least comparable to 
other Group of 20 governments; 
‘‘(B) to the practice of presumptive public 
disclosure of the terms and conditions on which 
they extend credit to other governments (with-
out regard to the form of any such extension of 
credit); 
‘‘(C) not to enforce any agreement terms 
that may impair their own or the borrowers’ ca-
pacity fully to implement commitments de-
scribed under subparagraphs (A) and (B); and 
‘‘(D) not to enter into any agreement con-
taining terms that may impair their own or the 
borrowers’ capacity fully to implement commit-
ments described under subparagraphs (A) and 
(B); and
1837 
‘‘(2) such assistance contributes significantly to 
the provision of a global public good that serves the 
national interest of the United States, such as lim-
iting the negative impacts of climate change. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘appropriate congressional com-
mittees’ means the Committee on Financial Services 
of the House of Representatives and the Committee 
on Foreign Relations of the Senate. 
‘‘(2) WORLD
BANK
GROUP
DEFINED.—The 
term ‘World Bank Group’ means the International 
Bank for Reconstruction and Development, the 
International Development Association, the Inter-
national Finance Corporation, and the Multilateral 
Investment Guarantee Agency.’’. 
TITLE 
II—PROHIBITIONS 
OR 
CONDITIONS 
ON 
CERTAIN 
TRANSMITTALS OF FUNDS 
SEC. 60201. FINDINGS. 
Congress finds the following: 
(1) The Financial Crimes Enforcement Net-
work (FinCEN) is the Financial Intelligence Unit of 
the United States tasked with safeguarding the fi-
nancial system from illicit use, combating money
1838 
laundering and its related crimes including ter-
rorism, and promoting national security. 
(2) Per statute, FinCEN may require domestic 
financial institutions and financial agencies to take 
certain ‘‘special measures’’ against jurisdictions, in-
stitutions, classes of transactions, or types of ac-
counts determined to be of primary money laun-
dering concern, providing the Secretary with a range 
of options, such as enhanced record-keeping, that 
can be adapted to target specific money laundering 
and terrorist financing and to bring pressure on 
those that pose money laundering threats. 
(3) This special-measures authority was grant-
ed in 2001, when most cross-border transactions oc-
curred through correspondent or payable-through ac-
counts held with large financial institutions which 
serve as intermediaries to facilitate financial trans-
actions on behalf of other banks. 
(4) Innovations in financial services have trans-
formed and expanded methods of cross-border trans-
actions that could not have been envisioned 20 years 
ago when FinCEN was given its special-measures 
authority. 
(5) These innovations, particularly through dig-
ital assets and informal value transfer systems, while
1839 
useful to legitimate consumers and law enforcement, 
can be tools abused by bad actors like sanctions 
evaders, fraudsters, money launderers, and those 
who commit ransomware attacks on victimized U.S. 
companies and which abuse the financial system to 
move and obscure the proceeds of their crimes. 
(6) Ransomware attacks on U.S. companies re-
quiring payments in cryptocurrencies have increased 
in recent years, with the U.S. Treasury estimating 
that ransomware payments in the United States 
reached $590 million in just the first half of 2021, 
compared to a total of $416 million in 2020. 
(7) In July 2021, the White House, with sup-
port of U.S. allies, asserted that the People’s Repub-
lic of China was responsible for ransomware oper-
ations against private companies that included de-
mands of millions of dollars, including the 2021 
ransomware attacks that breached Microsoft email 
systems and affected thousands of consumers, State 
and local municipalities, and government contractors 
attributed to a cyber espionage group with links to 
the Chinese Ministry of State Security. 
(8) As ransomware attacks organized by Chi-
nese and other foreign bad actors continue to grow 
in size and scope, modernizing FinCEN’s special
1840 
measure authorities will empower FinCEN to adapt 
its existing tools, monitor and obstruct global finan-
cial threats, and meet the challenges of combating 
21st century financial crime. 
SEC. 60202. PROHIBITIONS OR CONDITIONS ON CERTAIN 
TRANSMITTALS OF FUNDS. 
Section 5318A of title 31, United States Code, is 
amended— 
(1) in subsection (a)(2)(C), by striking ‘‘sub-
section (b)(5)’’ and inserting ‘‘paragraphs (5) and 
(6) of subsection (b)’’; and 
(2) in subsection (b)— 
(A) in paragraph (5), by striking ‘‘for on 
behalf of a foreign banking institution’’; and 
(B) by adding at the end the following: 
‘‘(6) PROHIBITIONS OR CONDITIONS ON CER-
TAIN TRANSMITTALS OF FUNDS.—If the Secretary 
finds a jurisdiction outside of the United States, 1 
or more financial institutions operating outside of 
the United States, 1 or more types of accounts with-
in, or involving, a jurisdiction outside of the United 
States, or 1 or more classes of transactions within, 
or involving, a jurisdiction outside of the United 
States to be of primary money laundering concern, 
the Secretary, in consultation with the Secretary of
1841 
the State, the Attorney General, and the Chairman 
of the Board of Governors of the Federal Reserve 
System, may prohibit, or impose conditions upon 
certain transmittals of funds (as such term may be 
defined by the Secretary in a special measure 
issuance, by regulation, or as otherwise permitted by 
law), to or from any domestic financial institution or 
domestic financial agency if such transmittal of 
funds involves any such jurisdiction, institution, type 
of account, or class of transaction.’’. 
TITLE 
III—U.S. 
STOCK 
EX-
CHANGE TRADING PROHIBI-
TION FOR 2 CONSECUTIVE 
AUDITOR 
NON-INSPECTION 
YEARS 
SEC. 60301. TRADING PROHIBITION FOR 2 CONSECUTIVE 
NON-INSPECTION YEARS. 
Section 104(i) of the Sarbanes-Oxley Act of 2002 (15 
U.S.C. 7214(i)) is amended— 
(1) in paragraph (2)(A)(ii), by striking ‘‘the 
foreign jurisdiction described in clause (i)’’ and in-
serting ‘‘a foreign jurisdiction’’; and 
(2) in paragraph (3)— 
(A) in the paragraph heading, by striking 
‘‘3’’ and inserting ‘‘2’’; and
1842 
(B) in subparagraph (A), in the matter 
preceding clause (i), by striking ‘‘3’’ and insert-
ing ‘‘2’’. 
TITLE 
IV—COMBATING 
WILD-
LIFE TRAFFICKING FINANC-
ING AND PROCEEDS STUDY 
ACT 
SEC. 60401. FINDINGS. 
Congress finds the following: 
(1) The 2017 report by the think tank, Global 
Financial Integrity, entitled ‘‘Transnational Crime 
and the Developing World’’, determined that the an-
nual global retail value of illegal wildlife trade is be-
tween $5 billion to $23 billion, and when losses to 
ecosystem services are considered, the World Bank 
estimates the cost of environmental crime is between 
$1 trillion and $2 trillion, annually. 
(2) Wildlife traffickers do not prefer particular 
species or commodities, but instead, according to the 
non-governmental organization, United for Wildlife, 
wildlife traffickers focus on the demand, availability, 
profit potential, and relatively low risk associated 
with acquiring, trading, and distributing wildlife 
globally.
1843 
(3) The trafficking of wildlife affects human 
health because of undetected spread of zoonotic dis-
eases, scarcity in food resources, and the environ-
mental results of degraded ecosystems. 
(4) Also, the trafficking of illicit wildlife such as 
pangolins from Africa, macaws from Peru, turtles 
from the United States, and rosewood species smug-
gled globally threatens our national security at home 
and American interests abroad because rogue orga-
nizations, including transnational criminal organiza-
tions, use the proceeds to fund illegal and violent 
acts throughout the world, fueling corruption and 
benefiting from corrupt government officials, weak-
ening the rule of law, and distorting commercial 
markets. 
(5) Many of these supply chains are affected by 
Chinese activity, from the criminal organizations in-
volved in the initial poaching of targeted commod-
ities to the demand for goods produced from endan-
gered plants and animals. 
(6) The Organized Crime Drug Enforcement 
Task Forces conducted an investigation known as 
‘‘Operation Apex’’ which identified extensive overlaps 
among drug trafficking organizations, professional
1844 
money launderers, and wildlife trafficking syn-
dicates. 
(7) A study conducted by Federal entities that 
examined wildlife trafficking networks determined 
that— 
(A) more than two-thirds of persons traf-
ficking wildlife also trafficked narcotics; 
(B) 10 percent of persons trafficking wild-
life were doing so to finance terrorism; and 
(C) a small percentage of persons traf-
ficking wildlife were doing so to finance the pro-
liferation of nuclear materials. 
(8) Because wildlife trafficking is executed as 
part of a commodity-agnostic global enterprise, the 
United States and allies of the United States should 
focus efforts to reduce wildlife trafficking on cur-
tailing the expansive networks that traffic wildlife 
and other goods and on bringing enforcement ac-
tions against persons who launder the proceeds of 
those persons who traffic wildlife rather than pursue 
specific nations, groups, or commodities. 
(9) In the past decade, the illicit wildlife trade 
has moved online, mainly to social media platforms, 
creating jurisdictional and technical challenges for 
law enforcement.
1845 
SEC. 60402. STUDY. 
(a) IN GENERAL.—The Secretary of the Treasury 
and the Secretary of the Interior, acting through the U.S. 
Fish and Wildlife Service, shall jointly, not later than 2 
years after the date of the enactment of this Act, conduct 
a study with respect to wildlife trafficking financing and 
proceeds and submit a report on such study to— 
(1) the Committees on Financial Services and 
Natural Resources and the Permanent Select Com-
mittee on Intelligence of the House of Representa-
tives; and 
(2) the Committees on Banking, Housing, and 
Urban Affairs and Energy and Natural Resources 
and the Select Committee on Intelligence of the Sen-
ate. 
(b) CONSULTATION.—In conducting the study re-
quired under subsection (a), the Secretary of the Treasury 
and the Secretary of the Interior shall consult with such 
other Federal officials as the Secretaries determine appro-
priate, including the Secretary of State, the Director of 
National Intelligence, the Director of Homeland Security 
Investigations, the Attorney General, and the Secretary of 
Defense. 
(c) INPUT.—In conducting the study required under 
subsection (a), the Secretary of the Treasury and the Sec-
retary of the Interior shall solicit and incorporate, where
1846 
possible and as determined appropriate by the Secretaries, 
input from— 
(1) domestic, foreign, and multilateral law en-
forcement organizations, 
(2) the intelligence community; 
(3) wildlife advocates; 
(4) experts in transnational organized crime, 
cyber-crime, and illicit finance; and 
(5) nongovernmental organizations, academia, 
foundations, and other public and private entities. 
(d) CONTENTS OF REPORT.—The report required 
under subsection (a) shall include— 
(1) an overview of the criminal and complicit 
actors, including individuals, organizations, corrupt 
networks, and nations, that participate in wildlife 
trafficking from source to market, both proactively 
and permissively; 
(2) an overview of the types of wildlife traf-
ficked, for what purposes, and from where; 
(3) an overview of the roles of professional 
money launderers, corporate and trust formation 
agents, kleptocrats, and other supply chain and fi-
nancial facilitators with respect to wildlife traf-
ficking;
1847 
(4) a discussion, based on a consideration of 
relevant prior studies and investigations, of the con-
vergence of wildlife trafficking with other types of 
trafficking, including trafficking in persons, timber 
trafficking, and narcotics trafficking, including 
shared supply chains and financial facilitators; 
(5) an overview of the national security implica-
tions associated with wildlife trafficking and the fi-
nancing and proceeds of wildlife trafficking, includ-
ing— 
(A) potential threats to security, including 
corruption and State instability resulting from 
wildlife trafficking; and 
(B) potential threats to public health, in-
cluding global pandemic and ecosystem collapse; 
(6) an examination of how anti-corruption ac-
tivities might be leveraged with respect to mitigating 
the ways in which corrupt officials and politically ex-
posed persons enable and engage in wildlife traf-
ficking financing and proceeds; 
(7) an examination of payments methods used 
to facilitate the trafficking of wildlife, including its 
financing and proceeds;
1848 
(8) an examination of how online platforms are 
used to facilitate trafficking and trafficking-related 
payments that— 
(A) describes the extent to which illicit 
wildlife trade occurs online, including through 
social media platforms, ecommerce sites, and 
encrypted messaging and other surface web 
platforms; 
(B) identifies payments- and proceeds-re-
lated reasons that different online platforms 
may be chosen by persons trafficking in wildlife; 
and 
(C) identifies online platforms that are 
used most for transactions and payments in-
volving trafficking in wildlife; 
(9) an examination of private-sector best prac-
tices for combating wildlife trafficking financing and 
proceeds (including those found in the financial serv-
ices industry), as well as any practices that have not 
had success combating wildlife trafficking financing 
and proceeds; 
(10) a discussion of ways in which existing 
laws, multilateral agreements, and forums could be 
expanded or modified to combat wildlife trafficking 
financing and disrupt its proceeds;
1850 
(e) CLASSIFICATION OF REPORT.—The report re-
quired under subsection (a) may be submitted in classified 
form but shall have an unclassified annex or executive 
summary. 
TITLE V—STUDY ON CHINESE 
SUPPORT FOR AFGHAN IL-
LICIT FINANCE 
SEC. 60501. STUDY ON CHINESE SUPPORT FOR AFGHAN IL-
LICIT FINANCE. 
(a) FINDINGS.—Congress finds the following: 
(1) Though China and Afghanistan share only 
a small land border, when it comes to illicit financial 
activity between the two countries, China has a dem-
onstrated history of permissiveness regarding traf-
ficking and money laundering that could support 
both the Taliban and its associates. 
(2) A 2014 Financial Action Task Force report 
titled, ‘‘Financial Flows Linked to the Production 
and Trafficking of Afghan Opiates’’ found evidence 
of import/export companies registered in China that 
were transferring funds to Afghanistan, likely as 
part of trade-based money laundering schemes cen-
tered around illicit opium production and trafficking, 
which, per the United Nations Office on Drugs and
1851 
Crime (UNODC), is one of the Taliban’s main 
sources of income. 
(3) Since the U.S. withdrawal from Afghanistan 
in August 2021, China has announced its willingness 
to lend financial support and legitimacy to the 
Taliban-led government in Afghanistan, including 
Afghan Interior Minister, Sirajuddin Haqqani, a 
member of the U.S.-sanctions designated Foreign 
Terrorist Organization, the Haqqani Network. 
(4) China’s permissive policies regarding Af-
ghan illicit finance run counter to the strategic in-
terests of the United States with respect to coun-
tering trafficking and preventing terrorist groups 
from accessing the international financial system. 
(5) China’s role as a critical source of financial 
wherewithal for the Taliban and its associates to 
process and implement drug and other illicit-activity 
transactions warrants further study as these actions 
pose a threat both to the safety and security of the 
people of Afghanistan and the international commu-
nity. 
(6) Congress needs to better understand how 
China could leverage its relationships and resources 
within Afghanistan and how these activities could di-
rectly or indirectly provide financial support to ter-
1852 
rorist organizations, including the Taliban and its 
associates. 
(b) STUDY.— 
(1) REQUIREMENT.—Not later than one year 
after the date of the enactment of this Act, the Sec-
retary of Treasury shall provide to the Committee on 
Financial Services and the Committee on Foreign 
Affairs of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs 
and the Committee on Foreign Relations of the Sen-
ate and the Permanent Select Committee on Intel-
ligence of the House of Representatives and the Se-
lect Committee on Intelligence of the Senate a re-
port on the financial activities of China and Chinese 
entities in connection with the finances of Afghani-
stan and the Taliban. 
(2) MATTERS
INCLUDED.—The report under 
paragraph (1) shall include the following: 
(A) An assessment of the activities under-
taken by the People’s Republic of China and 
Chinese-registered companies to support illicit 
financial networks in Afghanistan, particularly 
such networks involved in narcotics trafficking, 
illicit financial transactions, official corruption,
1853 
natural resources exploitation, and terrorist net-
works. 
(B) An assessment of financial, commer-
cial, and economic activities undertaken by 
China and Chinese companies in Afghanistan to 
support Chinese policies counter to American 
strategic interests. 
(C) Information relating to the impacts of 
existing United States and multilateral laws, 
regulations, and sanctions, including environ-
mental and public health impacts of natural re-
sources exploitation. 
(D) Any recommendations to Congress re-
garding legislative or regulatory improvements 
necessary to support the identification and dis-
ruption of Chinese-supported illicit financial 
networks in Afghanistan. 
(3) FORM.—The report under paragraph (1) 
may include a classified annex.
1854 
TITLE VI—U.S. POLICY ON MUL-
TILATERAL 
DEVELOPMENT 
BANK 
CO-FINANCING 
AR-
RANGEMENTS WITH CHINA’S 
INFRASTRUCTURE BANK 
SEC. 60601. U.S. POLICY ON CO-FINANCING ARRANGEMENTS 
AT 
THE 
MULTILATERAL 
DEVELOPMENT 
BANKS. 
Title XVI of the International Financial Institutions 
Act (22 U.S.C. 262p et seq.), as amended by section 
60101, is further amended by adding at the end the fol-
lowing: 
‘‘SEC. 1633. U.S. POLICY ON CO-FINANCING ARRANGEMENTS 
AT 
THE 
MULTILATERAL 
DEVELOPMENT 
BANKS. 
‘‘The Secretary of the Treasury shall instruct the 
United States Executive Directors at the multilateral de-
velopment banks (as defined in section 1701(c)(4)) to use 
the voice and vote of the United States to vote against 
any program or project at the respective institution if it 
includes joint or parallel financing provided by the Asian 
Infrastructure Investment Bank unless the Secretary of 
the Treasury has certified to the Committee on Financial 
Services of the House of Representatives and the Com-
1855 
mittee on Foreign Relations of the Senate that the Asian 
Infrastructure Investment Bank— 
‘‘(1) has the authority and the resources to pro-
vide grants and concessional assistance to countries 
eligible to borrow from the International Develop-
ment Association on terms similar to those provided 
to these countries by the International Development 
Association; and 
‘‘(2) has demonstrated a track record of pro-
viding such assistance to these countries.’’. 
TITLE VII—CHINA FINANCIAL 
THREAT MITIGATION 
SEC. 60701. CHINA FINANCIAL THREAT MITIGATION. 
(a) REPORT.—The Secretary of the Treasury shall 
conduct a study and issue a report that includes a descrip-
tion and analysis of any risks to the financial stability of 
the United States and the global economy emanating from 
the People’s Republic of China, along with any rec-
ommendations to the United States representatives at rel-
evant international organizations as appropriate to 
strengthen international cooperation to monitor and miti-
gate such financial stability risks. 
(b) TRANSMISSION OF REPORT.—The Secretary of 
the Treasury shall transmit the report required under sub-
section (a) no later than December 31, 2022, to the Com-
1856 
mittees on Financial Services and Foreign Affairs of the 
House of Representatives, the Committees on Banking, 
Housing, and Urban Affairs and Foreign Relations of the 
Senate, and to the United States representatives at rel-
evant international organizations, as appropriate. 
(c) CLASSIFICATION.—The report required under 
subsection (a) shall be unclassified, but may contain a 
classified annex. 
(d) PUBLICATION OF REPORT.—The Secretary of the 
Treasury shall publish the report required under sub-
section (a) (other than any classified annex) on the 
website of the Department of the Treasury no later than 
December 31, 2022. 
TITLE VIII—SUPPORT FOR DEBT 
RELIEF 
FOR 
DEVELOPING 
COUNTRIES 
SEC. 60801. SUPPORT FOR INTERNATIONAL INITIATIVES TO 
PROVIDE 
DEBT 
RELIEF 
TO 
DEVELOPING 
COUNTRIES WITH UNSUSTAINABLE LEVELS 
OF DEBT. 
(a) DEBT RELIEF.—The Secretary of the Treasury, 
in consultation with the Secretary of State, shall— 
(1) engage with international financial institu-
tions and official and commercial creditors to ad-
vance support for prompt and effective implementa-
1857 
tion and improvement of the Common Framework 
for Debt Treatments beyond the Debt Service Sus-
pension Initiative (in this section referred to as the 
‘‘Common Framework’’), and any successor frame-
work or similar coordinated international debt treat-
ment process through the establishment and publica-
tion of clear and accountable— 
(A) debt treatment benchmarks designed 
to achieve debt sustainability for each partici-
pating debtor; 
(B) standards for equitable burden sharing 
among all creditors with material claims on 
each participating debtor, without regard for 
their official, private, or hybrid status; 
(C) robust debt disclosure, including but 
not limited to inter-creditor data sharing and a 
broad presumption in favor of public disclosure 
of material terms and conditions of claims on 
participating debtors; 
(D) expanded eligibility criteria to include 
all countries with unsustainable levels of sov-
ereign debt; 
(E) standards for comprehensive creditor 
participation consistent with robust application
1858 
of the policies of the International Monetary 
Funds relating to lending into arrears; and 
(F) consistent enforcement and improve-
ment of the policies of multilateral institutions 
relating to asset-based and revenue-based bor-
rowing by participating debtors, and coordi-
nated standards on restructuring collateralized 
debt; 
(2) engage with international financial institu-
tions and official and commercial creditors to ad-
vance support for a comprehensive and effective debt 
payment standstill for each participating debtor 
from the time of its application for, and until the 
completion of its negotiations under, the Common 
Framework, or any successor framework or similar 
coordinated international debt treatment process: 
provided, however, that any such standstill should 
incentivize prompt and comprehensive debt restruc-
turing agreement and provide temporary cash flow 
relief for the debtor, without exacerbating its vulner-
ability to debt distress; and 
(3) instruct the United States Executive Direc-
tor at the International Monetary Fund and the 
United States Executive Director at the World Bank 
to use the voice and vote of the United States to ad-
1859 
vance the efforts described in paragraphs (1) and 
(2), including by urging international financial insti-
tutions to participate in debt relief, without under-
mining their ability to continue to provide new and 
additional flows of aid and assistance. 
(b) REPORTING REQUIREMENT.—Not later than 120 
days after the date of the enactment of this Act, and annu-
ally thereafter until the end of the COVID–19 pandemic, 
as determined by the World Health Organization, the Sec-
retary of the Treasury, in coordination with the Secretary 
of State, shall submit to the Committees on Banking, 
Housing, and Urban Affairs and Foreign Relations of the 
Senate and the Committees on Financial Services and 
Foreign Affairs of the House of Representatives a report 
that describes— 
(1) actions that have been taken, in coordina-
tion with international financial institutions, by offi-
cial creditors, including the government of, and 
state-owned enterprises in, the People’s Republic of 
China, and relevant commercial creditor groups to 
advance debt relief for countries with unsustainable 
debt that have sought relief under the Common 
Framework, any successor framework or mechanism, 
or under any other coordinated international ar-
rangement for sovereign debt restructuring;
1860 
(2) any implementation challenges that hinder 
the ability of the Common Framework to provide 
timely debt restructuring for any country with 
unsustainable debt that seeks debt relief or debt 
payment relief, including any refusal of any creditors 
to participate in equitable burden sharing, including 
but not limited to failure to share (or publish, as ap-
propriate) all material information needed to assess 
debt sustainability and inter-creditor equity; 
(3) recommendations on how to address chal-
lenges identified in paragraph (2); 
(4) any United States policy concerns with re-
spect to providing debt relief to specific countries; 
and 
(5) the transparency and accountability meas-
ures established or proposed to ensure that resources 
freed up by the debt relief described in paragraph 
(1) are used for activities that respond to the health, 
economic, and social effects of the COVID–19 pan-
demic, climate change resiliency, or help ensure eq-
uitable recoveries and growth.
1861 
TITLE IX—SECURING AMERICA’S 
VACCINES FOR EMERGENCIES 
SEC. 60901. SHORT TITLE. 
This title may be cited as the ‘‘Securing America’s 
Vaccines for Emergencies Act of 2022’’ or the ‘‘SAVE Act 
of 2022’’. 
SEC. 60902. SECURING ESSENTIAL MEDICAL MATERIALS. 
(a) STATEMENT OF POLICY.—Section 2(b) of the De-
fense Production Act of 1950 (50 U.S.C. 4502) is amend-
ed— 
(1) by redesignating paragraphs (3) through 
(8) as paragraphs (4) through (9), respectively; and 
(2) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) authorities under this Act should be used 
when appropriate to ensure the availability of med-
ical materials essential to national defense, including 
through measures designed to secure the drug sup-
ply chain, and taking into consideration the impor-
tance of United States competitiveness, scientific 
leadership and cooperation, and innovative capac-
ity;’’. 
(b) STRENGTHENING DOMESTIC CAPABILITY.—Sec-
tion 107 of the Defense Production Act of 1950 (50 
U.S.C. 4517) is amended—
1862 
(1) in subsection (a), by inserting ‘‘(including 
medical materials)’’ after ‘‘materials’’; and 
(2) in subsection (b)(1), by inserting ‘‘(includ-
ing medical materials such as drugs, devices, and bi-
ological products to diagnose, cure, mitigate, treat, 
or prevent disease that are essential to national de-
fense)’’ after ‘‘essential materials’’. 
(c) STRATEGY ON SECURING SUPPLY CHAINS FOR 
MEDICAL MATERIALS.—Title I of the Defense Production 
Act of 1950 (50 U.S.C. 4511 et seq.) is amended by add-
ing at the end the following: 
‘‘SEC. 109. STRATEGY ON SECURING SUPPLY CHAINS FOR 
MEDICAL MATERIALS. 
‘‘(a) IN GENERAL.—Not later than 180 days after 
the date of the enactment of this section, the President, 
in consultation with the Secretary of Health and Human 
Services, the Secretary of Commerce, the Secretary of 
Homeland Security, and the Secretary of Defense, shall 
transmit a strategy to the appropriate Members of Con-
gress that includes the following: 
‘‘(1) A detailed plan to use the authorities 
under this title and title III, or any other provision 
of law, to ensure the supply of medical materials (in-
cluding drugs, devices, and biological products (as 
that term is defined in section 351 of the Public
1863 
Health Service Act (42 U.S.C. 262)) to diagnose, 
cure, mitigate, treat, or prevent disease) essential to 
national defense, to the extent necessary for the pur-
poses of this Act. 
‘‘(2) An analysis of vulnerabilities to existing 
supply chains for such medical materials, and rec-
ommendations to address the vulnerabilities. 
‘‘(3) Measures to be undertaken by the Presi-
dent to diversify such supply chains, as appropriate 
and as required for national defense. 
‘‘(4) A discussion of— 
‘‘(A) any significant effects resulting from 
the plan and measures described in this sub-
section on the production, cost, or distribution 
of biological products (as that term is defined 
in section 351 of the Public Health Service Act 
(42 U.S.C. 262)) or any other devices or drugs 
(as defined under the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 301 et seq.)); 
‘‘(B) a timeline to ensure that essential 
components of the supply chain for medical ma-
terials are not under the exclusive control of a 
foreign government in a manner that the Presi-
dent determines could threaten the national de-
fense of the United States; and
1864 
‘‘(C) efforts to mitigate any risks resulting 
from the plan and measures described in this 
subsection to United States competitiveness, 
scientific leadership, and innovative capacity, 
including efforts to cooperate and proactively 
engage with United States allies. 
‘‘(b) PROGRESS REPORT.—Following submission of 
the strategy under subsection (a), the President shall sub-
mit to the appropriate Members of Congress an annual 
progress report until September 30, 2025, evaluating the 
implementation of the strategy, and may include updates 
to the strategy as appropriate. The strategy and progress 
reports shall be submitted in unclassified form but may 
contain a classified annex. 
‘‘(c) APPROPRIATE MEMBERS OF CONGRESS.—The 
term ‘appropriate Members of Congress’ means the 
Speaker, majority leader, and minority leader of the 
House of Representatives, the majority leader and minor-
ity leader of the Senate, the Chairman and Ranking Mem-
ber of the Committee on Financial Services, the Chairman 
and Ranking Member of the Committee on Energy and 
Commerce of the House of Representatives, and the 
Chairman and Ranking Member of the Committee on 
Banking, Housing, and Urban Affairs of the Senate.’’.
1865 
SEC. 60903. INVESTMENT IN SUPPLY CHAIN SECURITY. 
(a) IN GENERAL.—Section 303 of the Defense Pro-
duction Act of 1950 (50 U.S.C. 4533) is amended by add-
ing at the end the following: 
‘‘(h) INVESTMENT IN SUPPLY CHAIN SECURITY.— 
‘‘(1) IN GENERAL.—In addition to other au-
thorities in this title, the President may make avail-
able to an eligible entity described in paragraph (2) 
payments to increase the security of supply chains 
and supply chain activities, if the President certifies 
to Congress not less than 30 days before making 
such a payment that the payment is critical to meet 
national defense requirements of the United States. 
‘‘(2) ELIGIBLE ENTITY.—An eligible entity de-
scribed in this paragraph is an entity that— 
‘‘(A) is organized under the laws of the 
United States or any jurisdiction within the 
United States; and 
‘‘(B) produces— 
‘‘(i) one or more critical components; 
‘‘(ii) critical technology; or 
‘‘(iii) one or more products or raw 
materials for the security of supply chains 
or supply chain activities. 
‘‘(3) DEFINITIONS.—In this subsection, the 
terms ‘supply chain’ and ‘supply chain activities’
1866 
have the meanings given those terms by the Presi-
dent by regulation.’’. 
(b) REGULATIONS.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of the enactment of this Act, the President 
shall prescribe regulations setting forth definitions 
for the terms ‘‘supply chain’’ and ‘‘supply chain ac-
tivities’’ for the purposes of section 303(h) of the 
Defense Production Act of 1950 (50 U.S.C. 
4533(h)), as added by subsection (a). 
(2) SCOPE OF DEFINITIONS.—The definitions 
required by paragraph (1)— 
(A) shall encompass— 
(i) the organization, people, activities, 
information, and resources involved in the 
delivery and operation of a product or serv-
ice used by the Government; or 
(ii) critical infrastructure as defined 
in Presidential Policy Directive 21 (Feb-
ruary 12, 2013; relating to critical infra-
structure security and resilience); and 
(B) may include variations as determined 
necessary and appropriate by the President for 
purposes of national defense.
1867 
TITLE X—COVID–19 EMERGENCY 
MEDICAL 
SUPPLIES 
EN-
HANCEMENT 
SEC. 61001. SHORT TITLE. 
This title may be cited as the ‘‘COVID–19 Emer-
gency Medical Supplies Enhancement Act of 2022’’. 
SEC. 61002. DETERMINATION ON EMERGENCY SUPPLIES 
AND OTHER PUBLIC HEALTH EMERGENCIES. 
(a) COVID–19 PANDEMIC RESPONSE.—For the pur-
poses of section 101 of the Defense Production Act of 
1950 (50 U.S.C. 4511), the following materials may be 
deemed by the President, during the COVID–19 emer-
gency period, to be scarce and critical materials essential 
to the national defense and otherwise meet the require-
ments of section 101(b) of such Act, and funds available 
to implement such Act may be used for the purchase, pro-
duction (including the construction, repair, and retro-
fitting of government-owned facilities as necessary), or 
distribution of such materials: 
(1) In vitro diagnostic products (as defined in 
section 809.3(a) of title 21, Code of Federal Regula-
tions) for the detection of SARS–CoV–2 or the diag-
nosis of the virus that causes COVID–19, and the 
reagents and other materials necessary for pro-
ducing, conducting, or administering such products,
1868 
and the machinery, equipment, laboratory capacity, 
or other technology necessary to produce such prod-
ucts. 
(2) Face masks and personal protective equip-
ment, including non-surgical isolation gowns, face 
shields, nitrile gloves, N–95 filtering facepiece res-
pirators, and any other masks or equipment (includ-
ing durable medical equipment) determined by the 
Secretary of Health and Human Services to be need-
ed to respond to the COVID–19 pandemic, and the 
materials, machinery, additional manufacturing lines 
or facilities, or other technology necessary to 
produce such equipment. 
(3) Drugs and devices (as those terms are de-
fined in the Federal Food, Drug, and Cosmetic Act 
(21 U.S.C. 301 et seq.)) and biological products (as 
that term is defined by section 351 of the Public 
Health Service Act (42 U.S.C. 262)) that are ap-
proved, cleared, licensed, or authorized under either 
of such Acts for use in treating or preventing 
COVID–19 and symptoms related to COVID–19, 
and any materials, manufacturing machinery, addi-
tional manufacturing or fill-finish lines or facilities, 
technology, or equipment (including durable medical 
equipment) necessary to produce or use such drugs,
1869 
biological products, or devices (including syringes, 
vials, or other supplies or equipment related to deliv-
ery, distribution, or administration). 
(4) Any other medical equipment or supplies 
determined by the Secretary of Health and Human 
Services or the Secretary of Homeland Security to 
be scarce and critical materials essential to the na-
tional defense for purposes of section 101 of the De-
fense Production Act of 1950 (50 U.S.C. 4511). 
(b) FUTURE PREPAREDNESS FOR HEALTH EMER-
GENCIES.—Section 702(14) of the Defense Production 
Act of 1950 is amended by striking ‘‘and critical infra-
structure protection and restoration’’ and inserting ‘‘, crit-
ical infrastructure protection and restoration, and public 
health emergency preparedness and response activities’’. 
SEC. 61003. EXERCISE OF TITLE I AUTHORITIES IN RELA-
TION TO CONTRACTS BY STATE, LOCAL, OR 
TRIBAL GOVERNMENTS. 
(a) IN GENERAL.—In exercising authorities under 
title I of the Defense Production Act of 1950 (50 U.S.C. 
4511 et seq.) during the COVID–19 emergency period, the 
President (and any officer or employee of the United 
States to which authorities under such title I have been 
delegated)—
1870 
(1) may exercise the prioritization or allocation 
authority provided in such title I to exclude any ma-
terials described in section 61002 ordered by a 
State, local, or Tribal government that are scheduled 
to be delivered within 15 days of the time at 
which— 
(A) the purchase order or contract by the 
Federal Government for such materials is 
made; or 
(B) the materials are otherwise allocated 
by the Federal Government under the authori-
ties contained in such Act; and 
(2) shall, within 24 hours of any exercise of the 
prioritization or allocation authority provided in such 
title I— 
(A) to the extent practicable notify any 
State, local, or Tribal government if the Presi-
dent determines that the exercise of such au-
thorities would delay the receipt of such mate-
rials ordered by such government; and 
(B) take such steps as may be necessary, 
and as authorized by law, to ensure that such 
materials ordered by such government are deliv-
ered in the shortest possible period, consistent
1871 
with the purposes of the Defense Production 
Act of 1950. 
(b) UPDATE TO FEDERAL REGULATIONS.— 
(1) DPAS.—Not later than 30 days after the 
date of enactment of this Act, the Defense Property 
Accountability System regulations (15 CFR part 
700) shall be revised to reflect the requirements of 
subsection (a). 
(2) FAR.—Not later than 30 days after the re-
visions required by paragraph (1) are made, the 
Federal Acquisition Regulation shall be revised to 
reflect the requirements of subsection (a), consistent 
with the revisions made pursuant to paragraph (1). 
SEC. 61004. ENGAGEMENT WITH THE PRIVATE SECTOR. 
(a) OUTREACH REPRESENTATIVE.—Consistent with 
the authorities in title VII of the Defense Production Act 
of 1950 (50 U.S.C. 4551 et seq.), the Administrator of 
the Federal Emergency Management Agency, in consulta-
tion with the Secretary of Health and Human Services, 
may designate or appoint, pursuant to section 703 of such 
Act (50 U.S.C. 4553), an individual to be known as the 
‘‘Outreach Representative’’ for the COVID–19 emergency 
period. Such individual shall—
1872 
(1) be appointed from among individuals with 
substantial experience in the production or distribu-
tion of medical supplies or equipment; and 
(2) act as the Government-wide single point of 
contact during the COVID–19 emergency for out-
reach to manufacturing companies and their sup-
pliers who may be interested in producing medical 
supplies or equipment, including the materials de-
scribed under section 61002. 
(b) ENCOURAGING
PARTNERSHIPS.—During the 
COVID–19 emergency period, the Outreach Representa-
tive shall seek to develop partnerships between companies, 
in coordination with any overall coordinator appointed by 
the President to oversee the response to the COVID–19 
emergency, including through the exercise of the authori-
ties delegated by the President under section 708 of the 
Defense Production Act of 1950 (50 U.S.C. 4558). 
SEC. 61005. ENHANCEMENT OF SUPPLY CHAIN PRODUC-
TION. 
In exercising authority under title III of the Defense 
Production Act of 1950 (50 U.S.C. 4531 et seq.) with re-
spect to materials described in section 61002, the Presi-
dent shall seek to ensure that support is provided to com-
panies that comprise the supply chains for reagents, com-
ponents, raw materials, and other materials and items
1873 
necessary to produce or use the materials described in sec-
tion 61002 to the extent necessary for the national defense 
during the COVID–19 emergency period. 
SEC. 61006. ENHANCED REPORTING DURING COVID–19 
EMERGENCY. 
(a) REPORT ON EXERCISING AUTHORITIES UNDER 
THE DEFENSE PRODUCTION ACT OF 1950.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of the enactment of this Act, the President, 
in consultation with the Administrator of the Fed-
eral Emergency Management Agency, the Secretary 
of Defense, and the Secretary of Health and Human 
Services, shall submit to the appropriate congres-
sional committees a report on the exercise of au-
thorities under titles I, III, and VII of the Defense 
Production Act of 1950 (50 U.S.C. 4501 et seq.) 
prior to the date of such report for the purposes of 
the COVID–19 response. 
(2) CONTENTS.—The report required under 
subsection (a) and the update required under para-
graph (3) shall include the following: 
(A) IN GENERAL.—With respect to each 
exercise of such authority— 
(i) an explanation of the purpose of 
the applicable contract, purchase order, or
1874 
other exercise of authority (including an 
allocation of materials, services, and facili-
ties under section 101(a)(2) of the Defense 
Production Act of 1950 (50 U.S.C. 
4511(a)(2)); 
(ii) the cost of such exercise of au-
thority; and 
(iii) if applicable— 
(I) the amount of goods that 
were purchased or allocated; 
(II) an identification of the entity 
awarded a contract or purchase order 
or that was the subject of the exercise 
of authority; and 
(III) an identification of any en-
tity that had shipments delayed by the 
exercise of any authority under the 
Defense Production Act of 1950 (50 
U.S.C. 4501 et seq.). 
(B) CONSULTATIONS.—A description of 
any consultations conducted with relevant 
stakeholders on the needs addressed by the ex-
ercise of the authorities described in paragraph 
(1).
1875 
(3) UPDATE.—The President shall provide an 
additional briefing to the appropriate congressional 
committees on the matters described under para-
graph (2) no later than four months after the sub-
mission of the report. 
(b) EXERCISE OF LOAN AUTHORITIES.— 
(1) IN GENERAL.—Any loan made pursuant to 
section 302 or 303 of the Defense Production Act of 
1950, carried out by the United States International 
Development Finance Corporation pursuant to the 
authorities delegated by Executive Order No. 13922, 
shall be subject to the notification requirements con-
tained in section 1446 of the BUILD Act of 2018 
(22 U.S.C. 9656). 
(2) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—For purposes of the notifications required by 
paragraph (1) the term ‘‘appropriate congressional 
committees’’, as used section 1446 of the BUILD 
Act of 2018, shall be deemed to include the Com-
mittee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Hous-
ing and Urban Development of the Senate. 
(c) SUNSET.—The requirements of this section shall 
terminate on the end of the COVID–19 emergency period.
1876 
SEC. 61007. REPORT ON ACTIVITIES INVOLVING SMALL 
BUSINESS. 
The report required by section 304(f)(3) of the De-
fense Production Act of 1950 (50 U.S.C. 4534(f)(3)) for 
fiscal years 2023 and 2024 shall include the percentage 
of contracts awarded using funds to carry out the Defense 
Production Act of 1950 for each of the fiscal years 2023 
and 2024, respectively, to small business concerns (as de-
fined under section 702 of such Act). 
SEC. 61008. DEFINITIONS. 
In this title: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means the Committees on Appropriations, 
Armed Services, Energy and Commerce, Financial 
Services, and Homeland Security of the House of 
Representatives and the Committees on Appropria-
tions, Armed Services, Banking, Housing, and 
Urban Affairs, Health, Education, Labor, and Pen-
sions, Homeland Security and Governmental Affairs, 
and Veterans’ Affairs of the Senate. 
(2) COVID–19 
EMERGENCY
PERIOD.—The 
term ‘‘COVID–19 emergency period’’ means the pe-
riod beginning on the date of enactment of this Act 
and ending on the earlier of—
1877 
(A) the end of the incident period for the 
emergency declared on March 13, 2020, by the 
President under section 501 of the Robert T. 
Stafford Disaster Relief and Emergency Assist-
ance Act (42 U.S.C. 4121 et seq.) relating to 
the Coronavirus Disease 2019 (COVID–19) 
pandemic; or 
(B) September 30, 2025. 
(3) RELEVANT STAKEHOLDER.—The term ‘‘rel-
evant stakeholder’’ means— 
(A) representative private sector entities; 
(B) representatives of the nonprofit sector; 
(C) representatives of primary and sec-
ondary school systems; and 
(D) representatives of organizations rep-
resenting workers, including health workers, 
manufacturers, teachers, other public sector 
employees, and service sector workers. 
(4) STATE.—The term ‘‘State’’ means each of 
the several States, the District of Columbia, Puerto 
Rico, and any territory of the United States.
1878 
TITLE XI—AFGHAN TRADE 
ZONES FOR LICIT TRADE 
SEC. 61101. STUDY AND REPORT ON FEASIBILITY OF ESTAB-
LISHMENT AND IMPLEMENTATION OF AF-
GHAN TRADE ZONES FOR LICIT TRADE. 
(a) IN GENERAL.—To facilitate a secure path of licit 
market activity to support the legitimate economy and the 
humanitarian needs to every day Afghans, the Secretary 
of the Treasury and the Secretary of State, in consultation 
with the heads of other Federal agencies as appropriate, 
shall jointly conduct a study on the management of sanc-
tions imposed against Afghan individuals, including with 
respect granting of licenses to such individuals, to facili-
tate the implementation of foreign trade zones in Afghani-
stan for licit trade. 
(b) MATTERS
TO BE INCLUDED.—The study re-
quired under subsection (a) should— 
(1) identify individuals described in subsection 
(a) that, if sanctions imposed against such individ-
uals are revised or licenses are granted to such indi-
viduals, could establish and implement such foreign 
trade zones but still maintain United States national 
security; and
1879 
(2) review the possibility of establishing such 
foreign trade zones within the current sanctions re-
gime, including— 
(A) identifying such individuals that would 
implement foreign trade zones; 
(B) identifying the programs under which 
such individuals are sanctioned to determine if 
revised sanctions or granting of licenses is ap-
propriate; 
(C) identifying the possibility of such indi-
viduals implementing such foreign trade zones; 
and 
(D) identifying any potential conflicts with 
non-United States or other foreign allied sanc-
tions, such as sanctions imposed by the United 
Nations or the European Union. 
(c) REPORT.—The Secretary of the Treasury and the 
Secretary of State shall jointly submit to Congress a re-
port on the results of the study.
1880 
TITLE XII—INTERAGENCY TASK 
FORCE TO ADDRESS CHINESE 
MARKET MANIPULATION IN 
THE UNITED STATES 
SEC. 
61201. 
ESTABLISHMENT 
OF 
INTERAGENCY 
TASK 
FORCE TO ADDRESS CHINESE MARKET MA-
NIPULATION IN THE UNITED STATES. 
(a) IN GENERAL.—The Department of Justice, the 
Federal Trade Commission, the Department of the Treas-
ury, the Securities and Exchange Commission, and such 
other Federal agencies as the President determines appro-
priate shall establish a joint interagency task force to in-
vestigate allegations of systemic market manipulation and 
other potential violations of antitrust and competition laws 
in the United States by companies established in the Peo-
ple’s Republic of China, including allegations of efforts to 
illegally capture market share, fix or manipulate prices, 
and control the supply of goods in critical industries of 
the United States, including— 
(1) the pharmaceutical and medical devices in-
dustry; 
(2) the renewable energy industry; 
(3) the steel and aluminum industries; and 
(4) such other industries as the task force con-
siders appropriate.
1881 
(b) REPORT.—Not later than 180 days after the date 
of enactment of this Act, the President shall provide to 
the appropriate congressional committees— 
(1) a briefing on the progress of the inter-
agency task force and its findings as described in 
subsection (a); and 
(2) recommendations to the committees on po-
tential amendments to antitrust and competition 
laws in the United States that would strengthen the 
ability of United States antitrust enforcement agen-
cies to bring actions against anticompetitive business 
practices by Chinese companies. 
(c) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means— 
(1) the Committee on Banking, Housing, and 
Urban Affairs, the Committee on Foreign Relations, 
the Committee on Finance, the Committee on the 
Judiciary, and the Committee on Commerce, 
Science, and Transportation of the Senate; and 
(2) the Committee on Financial Services, the 
Committee on Foreign Affairs, the Committee on 
Ways and Means, the Committee on the Judiciary, 
and the Committee on Energy and Commerce of the 
House of Representatives.
1882 
SEC. 61202. EXPANSION OF STUDY AND STRATEGY ON 
MONEY LAUNDERING BY THE PEOPLE’S RE-
PUBLIC OF CHINA TO INCLUDE RISKS OF 
CONTRIBUTING TO CORRUPTION. 
(a) IN GENERAL.—Section 6507 of the Anti-Money 
Laundering Act of 2020 (division F of Public Law 116– 
283) is amended— 
(1) in subsection (a)— 
(A) in paragraph (3), by striking ‘‘; and’’ 
and inserting a semicolon; 
(B) in paragraph (4), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(5) the ways in which such increased illicit fi-
nance risks may contribute to corruption involving 
Chinese firms and a strategy to combat such corrup-
tion.’’; and 
(2) in subsection (b), by inserting ‘‘and corrup-
tion’’ after ‘‘activities’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect as if included in the enact-
ment of the Anti-Money Laundering Act of 2020 (division 
F of Public Law 116–283).
1883 
TITLE 
XIII—DISCLOSURE 
RE-
QUIREMENTS RELATING TO 
CERTAIN EXEMPTED TRANS-
ACTIONS 
SEC. 61301. IN GENERAL. 
(a) AMENDMENT.—The Securities Exchange Act of 
1934 is amended by inserting after section 13A (15 U.S.C. 
78m–1) the following: 
‘‘SEC. 13B. DISCLOSURE REQUIREMENTS RELATING TO 
CERTAIN EXEMPTED TRANSACTIONS. 
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of law, in the case of an issuer that conducts a cov-
ered exempted transaction, such issuer shall provide to the 
Commission, at such time and in such manner as the Com-
mission may prescribe, the following: 
‘‘(1) The identity of the issuer. 
‘‘(2) The place of incorporation of the issuer. 
‘‘(3) The amount of the issuance and the net 
proceeds to the issuer. 
‘‘(4) The principal beneficial owners of the 
issuer. 
‘‘(5) The intended use of the proceeds from 
such issuance, including— 
‘‘(A) each country in which the issuer in-
tends to invest such proceeds; and
1884 
‘‘(B) each industry in which the issuer in-
tends to invest such proceeds. 
‘‘(6) The exemption the issuer relies on with re-
spect to such covered exempted transaction. 
‘‘(b) AUTHORITY
TO REVISE
AND PROMULGATE 
RULES, REGULATIONS, AND FORMS.—The Commission 
shall, for the protection of investors and fair and orderly 
markets, revise and promulgate such rules, regulations, 
and forms as may be necessary to carry out this section. 
The Commission shall also issue rules to set conditions 
for future use of the exemptions for those issuers who do 
not comply with the disclosure requirements of this sec-
tion. 
‘‘(c) COVERED
EXEMPTED
TRANSACTION.—The 
term ‘covered exempted transaction’ means an issuance of 
a security that is exempt from registration under section 
5 of the Securities Act of 1933 (15 U.S.C. 77e) that— 
‘‘(1) is structured or intended to comply with— 
‘‘(A) Rule 506(b) of Regulation D, as pro-
mulgated by the Commission; 
‘‘(B) Regulation S, as promulgated by the 
Commission; or 
‘‘(C) Rule 144A, as promulgated by the 
Commission; and 
‘‘(2) either—
1885 
‘‘(A) has an issuance equal to $25,000,000 
or greater; or 
‘‘(B) with respect to any 1-year period, 
has, together with all covered exempted trans-
actions in that period, an aggregate issuance of 
$50,000,000 or greater.’’. 
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall apply with respect to issuers of covered 
exempt transactions on the date that is 270 days after 
the date of the enactment of this Act. 
(c) REPORT.—The Commission shall, each quarter, 
submit to the Committee of Financial Services of the 
House of Representatives and Committee of Banking, 
Housing, and Urban Affairs of the Senate a report that 
includes all information submitted by an issuer under sec-
tion 13B of the Securities Exchange Act of 1934, as added 
by subsection (a), during the previous quarter if such 
issuer— 
(1) is— 
(A) incorporated in the People’s Republic 
of China; or 
(B) incorporated outside the People’s Re-
public of China and has significant entities 
within the People’s Republic of China being 
consolidated with the issuer where the assets of
1886 
those entities within the People’s Republic of 
China constitute the majority of assets of the 
consolidated entity; or 
(2) discloses in a filing made pursuant to sec-
tion 13B of the Securities Exchange Act of 1934, as 
added by subsection (a), that the issuer intends to 
invest the proceeds from issuance of an exempted 
transaction in the People’s Republic of China. 
TITLE XIV—SAFE BANKING 
SEC. 61401. SHORT TITLE; TABLE OF CONTENTS; PURPOSE. 
(a) SHORT TITLE.—This title may be cited as the 
‘‘Secure And Fair Enforcement Banking Act of 2022’’ or 
the ‘‘SAFE Banking Act of 2022’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this title is as follows: 
TITLE XIV—SAFE BANKING 
Sec. 61401. Short title; table of contents; purpose. 
Sec. 61402. Safe harbor for depository institutions. 
Sec. 61403. Protections for ancillary businesses. 
Sec. 61404. Protections under Federal law. 
Sec. 61405. Rules of construction. 
Sec. 61406. Requirements for filing suspicious activity reports. 
Sec. 61407. Guidance and examination procedures. 
Sec. 61408. Annual diversity and inclusion report. 
Sec. 61409. GAO study on diversity and inclusion. 
Sec. 61410. GAO study on effectiveness of certain reports on finding certain 
persons. 
Sec. 61411. Application of this title with respect to hemp-related legitimate 
businesses and hemp-related service providers. 
Sec. 61412. Banking services for hemp-related legitimate businesses and hemp- 
related service providers. 
Sec. 61413. Requirements for deposit account termination requests and orders. 
Sec. 61414. Definitions. 
Sec. 61415. Discretionary surplus funds.
1887 
(c) PURPOSE.—The purpose of this title is to increase 
public safety by ensuring access to financial services to 
cannabis-related legitimate businesses and service pro-
viders and reducing the amount of cash at such busi-
nesses. 
SEC. 61402. SAFE HARBOR FOR DEPOSITORY INSTITUTIONS. 
(a) IN GENERAL.—A Federal banking regulator may 
not— 
(1) terminate or limit the deposit insur-
ance or share insurance of a depository institu-
tion under the Federal Deposit Insurance Act 
(12 U.S.C. 1811 et seq.), the Federal Credit 
Union Act (12 U.S.C. 1751 et seq.), or take 
any other adverse action against a depository 
institution under section 8 of the Federal De-
posit Insurance Act (12 U.S.C. 1818) solely be-
cause the depository institution provides or has 
provided financial services to a cannabis-related 
legitimate business or service provider; 
(2) prohibit, penalize, or otherwise discour-
age a depository institution from providing fi-
nancial services to a cannabis-related legitimate 
business or service provider or to a State, polit-
ical subdivision of a State, or Indian Tribe that
1888 
exercises jurisdiction over cannabis-related le-
gitimate businesses; 
(3) recommend, incentivize, or encourage a 
depository institution not to offer financial serv-
ices to an account holder, or to downgrade or 
cancel the financial services offered to an ac-
count holder solely because— 
(A) the account holder is a cannabis- 
related legitimate business or service pro-
vider, or is an employee, owner, or oper-
ator of a cannabis-related legitimate busi-
ness or service provider; 
(B) the account holder later becomes 
an employee, owner, or operator of a can-
nabis-related legitimate business or service 
provider; or 
(C) the depository institution was not 
aware that the account holder is an em-
ployee, owner, or operator of a cannabis-re-
lated legitimate business or service pro-
vider; 
(4) take any adverse or corrective super-
visory action on a loan made to— 
(A) a cannabis-related legitimate busi-
ness or service provider, solely because the
1889 
business is a cannabis-related legitimate 
business or service provider; 
(B) an employee, owner, or operator 
of a cannabis-related legitimate business or 
service provider, solely because the em-
ployee, owner, or operator is employed by, 
owns, or operates a cannabis-related legiti-
mate business or service provider, as appli-
cable; or 
(C) an owner or operator of real es-
tate or equipment that is leased to a can-
nabis-related legitimate business or service 
provider, solely because the owner or oper-
ator of the real estate or equipment leased 
the equipment or real estate to a cannabis- 
related legitimate business or service pro-
vider, as applicable; or 
(5) prohibit or penalize a depository insti-
tution (or entity performing a financial service 
for or in association with a depository institu-
tion) for, or otherwise discourage a depository 
institution (or entity performing a financial 
service for or in association with a depository 
institution) from, engaging in a financial service
1890 
for a cannabis-related legitimate business or 
service provider. 
(b) SAFE HARBOR APPLICABLE TO DE NOVO INSTI-
TUTIONS.—Subsection (a) shall apply to an institution ap-
plying for a depository institution charter to the same ex-
tent as such subsection applies to a depository institution. 
SEC. 61403. PROTECTIONS FOR ANCILLARY BUSINESSES. 
For the purposes of sections 1956 and 1957 of title 
18, United States Code, and all other provisions of Fed-
eral law, the proceeds from a transaction involving activi-
ties of a cannabis-related legitimate business or service 
provider shall not be considered proceeds from an unlawful 
activity solely because— 
(1) the transaction involves proceeds from a 
cannabis-related legitimate business or service pro-
vider; or 
(2) the transaction involves proceeds from— 
(A) cannabis-related activities described in 
section 61414(4)(B) conducted by a cannabis- 
related legitimate business; or 
(B) 
activities 
described 
in 
section 
61414(13)(A) conducted by a service provider. 
SEC. 61404. PROTECTIONS UNDER FEDERAL LAW. 
(a) IN GENERAL.—With respect to providing a finan-
cial service to a cannabis-related legitimate business
1893 
and employees of that insurer may not be held liable pur-
suant to any Federal law or regulation— 
(1) solely for engaging in the business of insur-
ance; or 
(2) for further investing any income derived 
from the business of insurance. 
(d) FORFEITURE.— 
(1) DEPOSITORY INSTITUTIONS.—A depository 
institution that has a legal interest in the collateral 
for a loan or another financial service provided to an 
owner, employee, or operator of a cannabis-related 
legitimate business or service provider, or to an 
owner or operator of real estate or equipment that 
is leased or sold to a cannabis-related legitimate 
business or service provider, shall not be subject to 
criminal, civil, or administrative forfeiture of that 
legal interest pursuant to any Federal law for pro-
viding such loan or other financial service. 
(2) FEDERAL RESERVE BANKS AND FEDERAL 
HOME
LOAN
BANKS.—A Federal reserve bank or 
Federal Home Loan Bank that has a legal interest 
in the collateral for a loan or another financial serv-
ice provided to a depository institution that provides 
a financial service to a cannabis-related legitimate 
business or service provider, or to an owner or oper-
1894 
ator of real estate or equipment that is leased or 
sold to a cannabis-related legitimate business or 
service provider, shall not be subject to criminal, 
civil, or administrative forfeiture of that legal inter-
est pursuant to any Federal law for providing such 
loan or other financial service. 
SEC. 61405. RULES OF CONSTRUCTION. 
(a) NO REQUIREMENT
TO PROVIDE FINANCIAL 
SERVICES.—Nothing in this title shall require a depository 
institution, entity performing a financial service for or in 
association with a depository institution, or insurer to pro-
vide financial services to a cannabis-related legitimate 
business, service provider, or any other business. 
(b) GENERAL EXAMINATION, SUPERVISORY, AND 
ENFORCEMENT AUTHORITY.—Nothing in this title may 
be construed in any way as limiting or otherwise restrict-
ing the general examination, supervisory, and enforcement 
authority of the Federal banking regulators, provided that 
the basis for any supervisory or enforcement action is not 
the provision of financial services to a cannabis-related le-
gitimate business or service provider. 
(c) BUSINESS OF INSURANCE.—Nothing in this title 
shall interfere with the regulation of the business of insur-
ance in accordance with the Act of March 9, 1945 (59 
Stat. 33, chapter 20; 15 U.S.C. 1011 et seq.) (commonly
1895 
known as the ‘‘McCarran-Ferguson Act’’) and the Dodd- 
Frank Wall Street Reform and Consumer Protection Act 
(12 U.S.C. 5301 et seq.). 
SEC. 61406. REQUIREMENTS FOR FILING SUSPICIOUS AC-
TIVITY REPORTS. 
Section 5318(g) of title 31, United States Code, is 
amended by adding at the end the following: 
‘‘(5) REQUIREMENTS FOR CANNABIS-RELATED 
LEGITIMATE BUSINESSES.— 
‘‘(A) IN GENERAL.—With respect to a fi-
nancial institution or any director, officer, em-
ployee, or agent of a financial institution that 
reports a suspicious transaction pursuant to 
this subsection, if the reason for the report re-
lates to a cannabis-related legitimate business 
or service provider, the report shall comply with 
appropriate guidance issued by the Financial 
Crimes Enforcement Network. Not later than 
the end of the 180-day period beginning on the 
date of enactment of this paragraph, the Sec-
retary shall update the February 14, 2014, 
guidance titled ‘BSA Expectations Regarding 
Marijuana-Related 
Businesses’ 
(FIN–2014– 
G001) to ensure that the guidance is consistent 
with the purpose and intent of the SAFE
1896 
Banking Act of 2022 and does not significantly 
inhibit the provision of financial services to a 
cannabis-related legitimate business or service 
provider in a State, political subdivision of a 
State, or Indian country that has allowed the 
cultivation, production, manufacture, transpor-
tation, display, dispensing, distribution, sale, or 
purchase of cannabis pursuant to law or regula-
tion of such State, political subdivision, or In-
dian Tribe that has jurisdiction over the Indian 
country. 
‘‘(B) DEFINITIONS.—For purposes of this 
paragraph: 
‘‘(i) CANNABIS.—The term ‘cannabis’ 
has the meaning given the term ‘mari-
huana’ in section 102 of the Controlled 
Substances Act (21 U.S.C. 802). 
‘‘(ii) CANNABIS-RELATED LEGITIMATE 
BUSINESS.—The term ‘cannabis-related le-
gitimate business’ has the meaning given 
that term in section 61414 of the SAFE 
Banking Act of 2022. 
‘‘(iii) INDIAN
COUNTRY.—The term 
‘Indian country’ has the meaning given 
that term in section 1151 of title 18.
1897 
‘‘(iv) INDIAN TRIBE.—The term ‘In-
dian Tribe’ has the meaning given that 
term in section 102 of the Federally Rec-
ognized Indian Tribe List Act of 1994 (25 
U.S.C. 479a). 
‘‘(v) FINANCIAL SERVICE.—The term 
‘financial service’ has the meaning given 
that term in section 61414 of the SAFE 
Banking Act of 2022. 
‘‘(vi) SERVICE PROVIDER.—The term 
‘service provider’ has the meaning given 
that term in section 61414 of the SAFE 
Banking Act of 2022. 
‘‘(vii) 
STATE.—The 
term 
‘State’ 
means each of the several States, the Dis-
trict of Columbia, the Commonwealth of 
Puerto Rico, and any territory or posses-
sion of the United States.’’. 
SEC. 61407. GUIDANCE AND EXAMINATION PROCEDURES. 
Not later than 180 days after the date of enactment 
of this Act, the Financial Institutions Examination Coun-
cil shall develop uniform guidance and examination proce-
dures for depository institutions that provide financial 
services to cannabis-related legitimate businesses and 
service providers.
1898 
SEC. 61408. ANNUAL DIVERSITY AND INCLUSION REPORT. 
The Federal banking regulators shall issue an annual 
report to Congress containing— 
(1) information and data on the availability of 
access to financial services for minority-owned and 
women-owned cannabis-related legitimate businesses; 
and 
(2) any regulatory or legislative recommenda-
tions for expanding access to financial services for 
minority-owned and women-owned cannabis-related 
legitimate businesses. 
SEC. 61409. GAO STUDY ON DIVERSITY AND INCLUSION. 
(a) STUDY.—The Comptroller General of the United 
States shall carry out a study on the barriers to market-
place entry, including in the licensing process, and the ac-
cess to financial services for potential and existing minor-
ity-owned and women-owned cannabis-related legitimate 
businesses. 
(b) REPORT.—The Comptroller General shall issue a 
report to the Congress— 
(1) containing all findings and determinations 
made in carrying out the study required under sub-
section (a); and 
(2) containing any regulatory or legislative rec-
ommendations for removing barriers to marketplace 
entry, including in the licensing process, and ex-
1899 
panding access to financial services for potential and 
existing minority-owned and women-owned cannabis- 
related legitimate businesses. 
SEC. 61410. GAO STUDY ON EFFECTIVENESS OF CERTAIN 
REPORTS ON FINDING CERTAIN PERSONS. 
Not later than 2 years after the date of the enact-
ment of this Act, the Comptroller General of the United 
States shall carry out a study on the effectiveness of re-
ports on suspicious transactions filed pursuant to section 
5318(g) of title 31, United States Code, at finding individ-
uals or organizations suspected or known to be engaged 
with transnational criminal organizations and whether any 
such engagement exists in a State, political subdivision, 
or Indian Tribe that has jurisdiction over Indian country 
that allows the cultivation, production, manufacture, sale, 
transportation, display, dispensing, distribution, or pur-
chase of cannabis. The study shall examine reports on sus-
picious transactions as follows: 
(1) During the period of 2014 until the date of 
the enactment of this Act, reports relating to mari-
juana-related businesses. 
(2) During the 1-year period after date of the 
enactment of this Act, reports relating to cannabis- 
related legitimate businesses.
1900 
SEC. 61411. APPLICATION OF THIS TITLE WITH RESPECT TO 
HEMP-RELATED 
LEGITIMATE 
BUSINESSES 
AND HEMP-RELATED SERVICE PROVIDERS. 
(a) IN GENERAL.—The provisions of this title (other 
than sections 61406 and 61410) shall apply with respect 
to hemp-related legitimate businesses and hemp-related 
service providers in the same manner as such provisions 
apply with respect to cannabis-related legitimate busi-
nesses and service providers. 
(b) DEFINITIONS.—In this section: 
(1) 
CBD.—The 
term 
‘‘CBD’’ 
means 
cannabidiol. 
(2) HEMP.—The term ‘‘hemp’’ has the meaning 
given that term under section 297A of the Agricul-
tural Marketing Act of 1946 (7 U.S.C. 1639o). 
(3) HEMP-RELATED LEGITIMATE BUSINESS.— 
The term ‘‘hemp-related legitimate business’’ means 
a manufacturer, producer, or any person or company 
that— 
(A) engages in any activity described in 
subparagraph (B) in conformity with the Agri-
cultural Improvement Act of 2018 (Public Law 
115–334) and the regulations issued to imple-
ment such Act by the Department of Agri-
culture, where applicable, and the law of a
1901 
State or political subdivision thereof or Indian 
Tribe; and 
(B) participates in any business or orga-
nized activity that involves handling hemp, 
hemp-derived CBD products, and other hemp- 
derived cannabinoid products, including culti-
vating, producing, extracting, manufacturing, 
selling, transporting, displaying, dispensing, dis-
tributing, or purchasing hemp, hemp-derived 
CBD 
products, 
and 
other 
hemp-derived 
cannabinoid products. 
(4) HEMP-RELATED SERVICE PROVIDER.—The 
term ‘‘hemp-related service provider’’— 
(A) means a business, organization, or 
other person that— 
(i) sells goods or services to a hemp- 
related legitimate business; or 
(ii) provides any business services, in-
cluding the sale or lease of real or any 
other property, legal or other licensed serv-
ices, or any other ancillary service, relating 
to hemp, hemp-derived CBD products, or 
other hemp-derived cannabinoid products; 
and
1902 
(B) does not include a business, organiza-
tion, or other person that participates in any 
business or organized activity that involves han-
dling hemp, hemp-derived CBD products, or 
other hemp-derived cannabinoid products, in-
cluding cultivating, producing, manufacturing, 
selling, transporting, displaying, dispensing, dis-
tributing, or purchasing hemp, hemp-derived 
CBD 
products, 
and 
other 
hemp-derived 
cannabinoid products. 
SEC. 61412. BANKING SERVICES FOR HEMP-RELATED LE-
GITIMATE BUSINESSES AND HEMP-RELATED 
SERVICE PROVIDERS. 
(a) FINDINGS.—The Congress finds that— 
(1) the Agriculture Improvement Act of 2018 
(Public Law 115–334) legalized hemp by removing 
it from the definition of ‘‘marihuana’’ under the 
Controlled Substances Act; 
(2) despite the legalization of hemp, some hemp 
businesses (including producers, manufacturers, and 
retailers) continue to have difficulty gaining access 
to banking products and services; and 
(3) businesses involved in the sale of hemp-de-
rived CBD products are particularly affected, due to 
confusion about the legal status of such products.
1903 
(b) FEDERAL BANKING REGULATORS’ HEMP BANK-
ING GUIDANCE.—Not later than the end of the 90-day pe-
riod beginning on the date of enactment of this Act, the 
Federal banking regulators shall update their existing 
guidance, as applicable, regarding the provision of finan-
cial services to hemp-related legitimate businesses and 
hemp-related service providers to address— 
(1) compliance with financial institutions’ exist-
ing obligations under Federal laws and imple-
menting regulations determined relevant by the Fed-
eral banking regulators, including subchapter II of 
chapter 53 of title 31, United States Code, and its 
implementing regulation in conformity with this title 
and the Department of Agriculture’s rules regulating 
domestic hemp production (7 CFR 990); and 
(2) best practices for financial institutions to 
follow when providing financial services, including 
processing payments, to hemp-related legitimate 
businesses and hemp-related service providers. 
(c) DEFINITIONS.—In this section: 
(1) FINANCIAL
INSTITUTION.—The term ‘‘fi-
nancial institution’’— 
(A) has the meaning given that term under 
section 5312(a) of title 31, United States Code; 
and
1904 
(B) includes a bank holding company, as 
defined under section 2(a) of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1841(a)). 
(2) 
HEMP
TERMS.—The 
terms 
‘‘CBD’’, 
‘‘hemp’’, ‘‘hemp-related legitimate business’’, and 
‘‘hemp-related service provider’’ have the meaning 
given those terms, respectively, under section 61411. 
SEC. 61413. REQUIREMENTS FOR DEPOSIT ACCOUNT TER-
MINATION REQUESTS AND ORDERS. 
(a) TERMINATION REQUESTS OR ORDERS MUST BE 
VALID.— 
(1) IN
GENERAL.—An appropriate Federal 
banking agency may not formally or informally re-
quest or order a depository institution to terminate 
a specific customer account or group of customer ac-
counts or to otherwise restrict or discourage a de-
pository institution from entering into or maintain-
ing a banking relationship with a specific customer 
or group of customers unless— 
(A) the agency has a valid reason for such 
request or order; and 
(B) such reason is not based solely on rep-
utation risk. 
(2) 
TREATMENT
OF
NATIONAL
SECURITY 
THREATS.—If an appropriate Federal banking agen-
1905 
cy believes a specific customer or group of customers 
is, or is acting as a conduit for, an entity which— 
(A) poses a threat to national security; 
(B) is involved in terrorist financing; 
(C) is an agency of the Government of 
Iran, North Korea, Syria, or any country listed 
from time to time on the State Sponsors of 
Terrorism list; 
(D) is located in, or is subject to the juris-
diction of, any country specified in subpara-
graph (C); or 
(E) does business with any entity described 
in subparagraph (C) or (D), unless the appro-
priate Federal banking agency determines that 
the customer or group of customers has used 
due diligence to avoid doing business with any 
entity described in subparagraph (C) or (D), 
such belief shall satisfy the requirement under para-
graph (1). 
(b) NOTICE REQUIREMENT.— 
(1) IN GENERAL.—If an appropriate Federal 
banking agency formally or informally requests or 
orders a depository institution to terminate a spe-
cific customer account or a group of customer ac-
counts, the agency shall—
1906 
(A) provide such request or order to the 
institution in writing; and 
(B) accompany such request or order with 
a written justification for why such termination 
is needed, including any specific laws or regula-
tions the agency believes are being violated by 
the customer or group of customers, if any. 
(2) JUSTIFICATION
REQUIREMENT.—A jus-
tification described under paragraph (1)(B) may not 
be based solely on the reputation risk to the deposi-
tory institution. 
(c) CUSTOMER NOTICE.— 
(1) NOTICE
REQUIRED.—Except as provided 
under paragraph (2) or as otherwise prohibited from 
being disclosed by law, if an appropriate Federal 
banking agency orders a depository institution to 
terminate a specific customer account or a group of 
customer accounts, the depository institution shall 
inform the specific customer or group of customers 
of the justification for the customer’s account termi-
nation described under subsection (b). 
(2) NOTICE PROHIBITED.— 
(A) NOTICE PROHIBITED IN CASES OF NA-
TIONAL SECURITY.—If an appropriate Federal 
banking agency requests or orders a depository
1907 
institution to terminate a specific customer ac-
count or a group of customer accounts based on 
a belief that the customer or customers pose a 
threat to national security, or are otherwise de-
scribed under subsection (a)(2), neither the de-
pository institution nor the appropriate Federal 
banking agency may inform the customer or 
customers of the justification for the customer’s 
account termination. 
(B) 
NOTICE
PROHIBITED
IN
OTHER 
CASES.—If an appropriate Federal banking 
agency determines that the notice required 
under paragraph (1) may interfere with an au-
thorized criminal investigation, neither the de-
pository institution nor the appropriate Federal 
banking agency may inform the specific cus-
tomer or group of customers of the justification 
for the customer’s account termination. 
(d) REPORTING REQUIREMENT.—Each appropriate 
Federal banking agency shall issue an annual report to 
the Congress stating— 
(1) the aggregate number of specific customer 
accounts that the agency requested or ordered a de-
pository institution to terminate during the previous 
year; and
1908 
(2) the legal authority on which the agency re-
lied in making such requests and orders and the fre-
quency on which the agency relied on each such au-
thority. 
(e) DEFINITIONS.—For purposes of this section: 
(1) APPROPRIATE
FEDERAL
BANKING
AGEN-
CY.—The term ‘‘appropriate Federal banking agen-
cy’’ means— 
(A) the appropriate Federal banking agen-
cy, as defined under section 3 of the Federal 
Deposit Insurance Act (12 U.S.C. 1813); and 
(B) the National Credit Union Administra-
tion, in the case of an insured credit union. 
(2) DEPOSITORY INSTITUTION.—The term ‘‘de-
pository institution’’ means— 
(A) a depository institution, as defined 
under section 3 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1813); and 
(B) an insured credit union. 
SEC. 61414. DEFINITIONS. 
In this title: 
(1) BUSINESS
OF
INSURANCE.—The term 
‘‘business of insurance’’ has the meaning given such 
term in section 1002 of the Dodd-Frank Wall Street
1909 
Reform and Consumer Protection Act (12 U.S.C. 
5481). 
(2) CANNABIS.—The term ‘‘cannabis’’ has the 
meaning given the term ‘‘marihuana’’ in section 102 
of the Controlled Substances Act (21 U.S.C. 802). 
(3) CANNABIS PRODUCT.—The term ‘‘cannabis 
product’’ means any article which contains cannabis, 
including an article which is a concentrate, an edi-
ble, a tincture, a cannabis-infused product, or a top-
ical. 
(4) CANNABIS-RELATED
LEGITIMATE
BUSI-
NESS.—The term ‘‘cannabis-related legitimate busi-
ness’’ means a manufacturer, producer, or any per-
son or company that— 
(A) engages in any activity described in 
subparagraph (B) pursuant to a law established 
by a State or a political subdivision of a State, 
as determined by such State or political subdivi-
sion; and 
(B) participates in any business or orga-
nized activity that involves handling cannabis or 
cannabis products, including cultivating, pro-
ducing, manufacturing, selling, transporting, 
displaying, dispensing, distributing, or pur-
chasing cannabis or cannabis products.
1910 
(5) DEPOSITORY INSTITUTION.—The term ‘‘de-
pository institution’’ means— 
(A) a depository institution as defined in 
section 3(c) of the Federal Deposit Insurance 
Act (12 U.S.C. 1813(c)); 
(B) a Federal credit union as defined in 
section 101 of the Federal Credit Union Act 
(12 U.S.C. 1752); or 
(C) a State credit union as defined in sec-
tion 101 of the Federal Credit Union Act (12 
U.S.C. 1752). 
(6) 
FEDERAL
BANKING
REGULATOR.—The 
term ‘‘Federal banking regulator’’ means each of the 
Board of Governors of the Federal Reserve System, 
the Bureau of Consumer Financial Protection, the 
Federal Deposit Insurance Corporation, the Federal 
Housing Finance Agency, the Financial Crimes En-
forcement Network, the Office of Foreign Asset 
Control, the Office of the Comptroller of the Cur-
rency, the National Credit Union Administration, 
the Department of the Treasury, or any Federal 
agency or department that regulates banking or fi-
nancial services, as determined by the Secretary of 
the Treasury.
1911 
(7) FINANCIAL SERVICE.—The term ‘‘financial 
service’’— 
(A) means a financial product or service, 
as defined in section 1002 of the Dodd-Frank 
Wall Street Reform and Consumer Protection 
Act (12 U.S.C. 5481), regardless if the cus-
tomer receiving the product or service is a con-
sumer or commercial entity; 
(B) means a financial product or service, 
or any combination of products and services, 
permitted to be provided by— 
(i) a national bank or a financial sub-
sidiary pursuant to the authority provided 
under— 
(I) 
the 
provision 
designated 
‘‘Seventh’’ of section 5136 of the Re-
vised Statutes of the United States 
(12 U.S.C. 24); or 
(II) section 5136A of the Revised 
Statutes of the United States (12 
U.S.C. 24a); and 
(ii) a Federal credit union, pursuant 
to the authority provided under the Fed-
eral Credit Union Act; 
(C) includes the business of insurance;
1912 
(D) includes, whether performed directly or 
indirectly, the authorizing, processing, clearing, 
settling, billing, transferring for deposit, trans-
mitting, delivering, instructing to be delivered, 
reconciling, collecting, or otherwise effectuating 
or facilitating of payments or funds, where such 
payments or funds are made or transferred by 
any means, including by the use of credit cards, 
debit cards, other payment cards, or other ac-
cess devices, accounts, original or substitute 
checks, or electronic funds transfers; 
(E) includes acting as a money transmit-
ting business which directly or indirectly makes 
use of a depository institution in connection 
with effectuating or facilitating a payment for 
a cannabis-related legitimate business or service 
provider in compliance with section 5330 of 
title 31, United States Code, and any applicable 
State law; and 
(F) includes acting as an armored car 
service for processing and depositing with a de-
pository institution or a Federal reserve bank 
with respect to any monetary instruments (as 
defined under section 1956(c)(5) of title 18, 
United States Code.