Protecting Our Homeland from Chinese Espionage Act
Bill: H.R.8782 | Sponsor: Rep. Harshbarger, Diana (R-TN)
Policy area: Government Operations and Politics

Summary:
Protecting Our Homeland from Chinese Espionage Act
This bill requires Department of Homeland Security (DHS) contractors to disclose relevant commercial ties with covered Chinese entities. DHS must terminate a contract with a contractor if, based on a disclosure required by this bill, DHS determines that continuation of the contract violates federal law or is not in the public's interest.
The bill defines covered entity to include the Chinese government, the Chinese Communist Party, the Chinese military, and entities that have certain connections to China.

To require disclosure by Department of Homeland Security contractors of 
        contracts with Chinese entities, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protecting Our Homeland from Chinese 
Espionage Act''.

SEC. 2. REQUIREMENT FOR DEPARTMENT OF HOMELAND SECURITY CONTRACTORS TO 
              DISCLOSE CONTRACTS AND TIES WITH PEOPLE'S REPUBLIC OF 
              CHINA ENTITIES.

    (a) Requirement.--
            (1) Initial disclosure.--
                    (A) In general.--Not later than 12 months after the 
                date of the enactment of this Act, the Secretary of 
                Homeland Security shall amend the Homeland Security 
                Acquisition Regulation to require that a contractor 
                with the Department of Homeland Security shall, as a 
                condition of being awarded a contract for the 
                procurement of goods or services, disclose to the 
                Department covered information related to any contracts 
                or other relevant commercial ties with a covered entity 
                such contractor, including the immediate owner of such 
                contractor, the highest-level owner of such contractor, 
                and all first tier subcontractors of such contractor 
                with respect to the contract to be awarded--
                            (i) has that are in effect at the time of 
                        contract award;
                            (ii) has had within the three years 
                        immediately preceding such time of contract 
                        award; and
                            (iii) enters into at any time during the 
                        period of such contract award.
                    (B) Notification.--The Secretary of Homeland 
                Security shall notify the Committee on Homeland 
                Security and Governmental Affairs of the Senate and the 
                Committee on Homeland Security of the House of 
                Representatives of disclosures described in 
                subparagraph (A).
            (2) Updated disclosures.--
                    (A) New or renewal.--A contractor awarded a 
                contract with the Department of Homeland Security in 
                accordance with the amended Homeland Security 
                Acquisition Regulation pursuant to paragraph (1) shall 
                update disclosures made to the Department in accordance 
                with such paragraph not later than 30 days after such 
                contractor, including the immediate owner of such 
                contractor, the highest-level owner of such contractor, 
                and all first tier subcontractors of such contractor 
                with respect to such contract, enters into or renews a 
                contract with a covered entity.
                    (B) Annual.--A contractor awarded a contract with 
                the Department of Homeland Security in accordance with 
                the amended Homeland Security Acquisition Regulation 
                pursuant to paragraph (1) shall annually update 
                disclosures made to the Department in accordance with 
                such paragraph.
                    (C) Notification.--The Secretary of Homeland 
                Security shall notify the Committee on Homeland 
                Security and Governmental Affairs of the Senate and the 
                Committee on Homeland Security of the House of 
                Representatives of updated disclosures under 
                subparagraphs (A) and (B).
            (3) Exceptions.--Disclosure and notification requirements 
        under this section shall not apply in the case of any of the 
        following:
                    (A) If the procurement that is the subject of the 
                contract at issue is in an amount at or below the 
                simplified acquisition threshold, as that term in 
                defined under section 134 of title 41, United States 
                Code, and adjusted for inflation under section 1908 of 
                such title.
                    (B) Any supply or service contract the Secretary of 
                Homeland Security, in consultation with the Chief 
                Acquisition Officer, Chief Procurement Officer, and 
                Chief Security Officer of the Department of Homeland 
                Security, determines to be low risk.
                    (C) If the procurement that is the subject of the 
                contract at issue is already under investigation by the 
                Department of Homeland Security or another United 
                States Government agency and with respect to which such 
                a disclosure or notification would compromise the 
                integrity of such investigation.
    (b) Database of Federal Contractor Contracts With Covered 
Entities.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary of Homeland Security 
        shall establish a public database containing the information 
        concerning contracts with covered entities disclosed pursuant 
        to subsection (a). Upon the termination or completion of such a 
        contract, the contractor with respect to such a contract, 
        including the immediate owner of such contractor, the highest-
        level owner of such contractor, and all first-tier 
        subcontractors of such contractor, shall be eligible for 
        removal from such public database.
            (2) Exception.--Paragraph (1) shall not apply in the case 
        of contracts with respect to which compliance with such 
        paragraph would compromise national security or if information 
        otherwise subject to disclosure is classified pursuant to 
        Executive Order 13526.
    (c) Authority To Withhold or Terminate Contracts.--The Secretary of 
Homeland Security shall terminate an existing contract if the Secretary 
determines based on a disclosure made by the contractor, the immediate 
owner of such contractor, the highest-level owner of such contractor, 
or a first-tier subcontractor of such contractor, that continuation of 
such contract violates Federal law or is not in the public's interest.
    (d) Suspension and Debarment.--Based on information disclosed 
pursuant to this section, the Secretary of Homeland Security may refer 
a contractor, the immediate owner of such contractor, the highest-level 
owner of such contractor, or a first-tier subcontractor of such 
contractor, as appropriate, to the Suspension and Debarment official of 
the Department of Homeland Security for suspension or debarment, to 
initiate a suspension or debarment proceeding, as such official 
determines appropriate.
    (c) Definitions.--In this section:
            (1) Covered entity.--The term ``covered entity'' means--
                    (A) the Government of the People's Republic of 
                China;
                    (B) the Chinese Communist Party (CCP);
                    (C) the Chinese military;
                    (D) an entity owned, directed, controlled, 
                financed, or influenced directly or indirectly, through 
                separate contracts or otherwise, by the Government of 
                the People's Republic of China, the CCP, or the Chinese 
                military, in which the Government of the People's 
                Republic of China, the CCP, or the Chinese military has 
                majority ownership or control or has minority ownership 
                greater than ten percent of such entity, including any 
                entity for which the Government of the People's 
                Republic of China, the CCP, or the Chinese military has 
                the ability, through ownership of a majority or a 
                dominant minority of the total outstanding voting 
                interest in an entity, board representation, proxy 
                voting, a special share, contractual arrangements, 
                formal or informal arrangements to act in concert, or 
                other means, to determine, direct, or decide for an 
                entity an important matter;
                    (E) a parent, subsidiary, or affiliate of an entity 
                described in subparagraph (D); and
                    (F) an China-based entity with a majority ownership 
                or control or with minority ownership greater than ten 
                percent by a covered entity, substantively involved in 
                People's Republic of China economic or industrial 
                policies or military-civil fusion, including by 
                accepting funding, performing services, or receiving 
                subsidies, or with responsibilities for overseeing 
                economic development projects, including Made in China 
                2025 and the Belt and Road Initiative.
            (2) Covered information.--The term ``covered information'' 
        means information relating to--
                    (A) the name of the covered entity;
                    (B) the extent to which the covered entity has the 
                ability to act in concert or to determine, direct, or 
                decide an important matter for a contractor, including 
                the immediate owner of such contractor, the highest-
                level owner of such contractor, and all first tier 
                subcontractors of such contractor under the awarded 
                contract, through ownership of a majority or a dominant 
                minority of the total outstanding voting interest, 
                board representation, proxy voting, special interest 
                share, contractual arrangements, or other formal or 
                informal arrangements;
                    (C) the date such contract was entered into; and
                    (D) the duration, including any extensions, of such 
                contract.
            (3) Immediate owner.--The term ``immediate owner'' means an 
        entity, other than a contractor, that has direct control of the 
        contractor, including through one or more of the following:
                    (A) Ownership or interlocking management.
                    (B) Identity of interests among family members.
                    (C) Shared facilities and equipment.
                    (D) Common use of employees.
            (4) Highest-level owner.--The term ``highest-level owner'' 
        means an entity that owns or controls an immediate owner of a 
        contractor, or that owns or controls one or more entities that 
        control an immediate owner of a contractor, and that is not 
        owned or controlled by any other entity.
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