SAFE TRAINS Act
Bill: S.2062 | Sponsor: Sen. Cornyn, John (R-TX)
Policy area: Transportation and Public Works

Summary:
Stopping America's Foreign Enemies Through Rail And Infrastructure National Security Act or the SAFE TRAINS Act
This bill prohibits railroad freight cars from operating on the U.S. freight railroad interchange system if the cars are manufactured in or use sensitive technologies from a country of concern or an affiliated state-owned enterprise. Countries of concern include nonmarket economies, those that inadequately protect intellectual property rights, and violators of certain foreign trade practices and agreements.

To increase the security of United States rail infrastructure along the 
North American Interchange Service to the direct and indirect supply of 
  U.S. military and related institutions, to facilitate cross-border 
    trade among the United States, Mexico, or Canada, 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 TITLES.

    This Act may be cited as the ``Stopping America's Foreign Enemies 
Through Rail And Infrastructure National Security Act'' or the ``SAFE 
TRAINS Act''.

SEC. 2. REQUIREMENTS FOR RAILROAD FREIGHT CARS ENTERING SERVICE IN THE 
              UNITED STATES.

    (a) In General.--Chapter 207 of title 49, United States Code, is 
amended by adding at the end the following:
``Sec. 20704. Requirements for railroad freight cars entering service 
              in the United States
    ``(a) Definitions.--In this section:
            ``(1) Component.--The term `component' means a part or 
        subassembly of a railroad freight car.
            ``(2) Control.--The term `control' means the power, whether 
        direct or indirect and whether or not exercised, through the 
        ownership of a majority or a dominant minority of the total 
        outstanding voting interest in an entity, representation on the 
        board of directors of an entity, proxy voting on the board of 
        directors of an entity, a special share in the entity, a 
        contractual arrangement with the entity, a formal or informal 
        arrangement to act in concert with an entity, or any other 
        means, to determine, direct, make decisions, or cause decisions 
        to be made for the entity.
            ``(3) Cost of sensitive technology.--The term `cost of 
        sensitive technology' means the aggregate cost of the sensitive 
        technology located on a railroad freight car.
            ``(4) Country of concern.--The term `country of concern' 
        means a country that--
                    ``(A) is identified by the Department of Commerce 
                as a nonmarket economy country (as defined in section 
                771(18) of the Tariff Act of 1930 (19 U.S.C. 1677(18))) 
                as of the date of the enactment of the SAFE TRAINS Act;
                    ``(B) was identified by the United States Trade 
                Representative in the most recent report required under 
                section 182 of the Trade Act of 1974 (19 U.S.C. 2242) 
                as a foreign country included on the priority watch 
                list (as defined in subsection (g)(3) of such section); 
                and
                    ``(C) is subject to monitoring by the Trade 
                Representative under section 306 of the Trade Act of 
                1974 (19 U.S.C. 2416).
            ``(5) Net cost.--The term `net cost' has the meaning given 
        such term in chapter 4 of the USMCA or in any subsequent free 
        trade agreement between the United States, Mexico, and Canada.
            ``(6) Qualified facility.--The term `qualified facility' 
        means a facility that is not owned or under the control of a 
        state-owned enterprise.
            ``(7) Qualified manufacturer.--The term `qualified 
        manufacturer' means a railroad freight car manufacturer that is 
        not owned or under the control of a state-owned enterprise.
            ``(8) Railroad freight car.--The term `railroad freight 
        car' means a car designed to carry freight or railroad 
        personnel by rail, including--
                    ``(A) a box car;
                    ``(B) a refrigerator car;
                    ``(C) a ventilator car;
                    ``(D) an intermodal well car;
                    ``(E) a gondola car;
                    ``(F) a hopper car;
                    ``(G) an auto rack car;
                    ``(H) a flat car;
                    ``(I) a special car;
                    ``(J) a caboose car;
                    ``(K) a tank car; and
                    ``(L) a yard car.
            ``(9) Sensitive technology.--The term `sensitive 
        technology' means any device embedded with electronics, 
        software, sensors, or other connectivity, that enables the 
        device to connect to, collect data from, or exchange data with 
        another device, including--
                    ``(A) onboard telematics;
                    ``(B) remote monitoring software;
                    ``(C) firmware;
                    ``(D) analytics;
                    ``(E) GPS satellite and cellular location tracking 
                systems;
                    ``(F) event status sensors;
                    ``(G) predictive component condition and 
                performance monitoring sensors; and
                    ``(H) similar sensitive technologies embedded into 
                freight railcar components and subassemblies.
            ``(10) State-owned enterprise.--The term `state-owned 
        enterprise' means--
                    ``(A) an entity that is owned by, or under the 
                control of, a national, provincial, or local government 
                of a country of concern, or an agency of such 
                government; or
                    ``(B) an individual acting under the direction or 
                influence of a government or agency described in 
                subparagraph (A).
            ``(11) Substantially transformed.--The term `substantially 
        transformed' means a component of a railroad freight car that 
        undergoes an applicable change in tariff classification as a 
        result of the manufacturing process, as described in chapter 4 
        and related annexes of the USMCA or in any subsequent free 
        trade agreement between the United States, Mexico, and Canada.
            ``(12) USMCA.--The term `USMCA' has the meaning given such 
        term in section 3 of the United States-Mexico-Canada Agreement 
        Implementation Act (19 U.S.C. 4502).
    ``(b) Requirements for Railroad Freight Cars Entering Service in 
the United States.--
            ``(1) Limitation on railroad freight cars.--A railroad 
        freight car wholly manufactured on or after the date that is 1 
        year after the date of the enactment of the SAFE TRAINS Act may 
        only operate on the United States freight railroad interchange 
        system if--
                    ``(A) the railroad freight car is manufactured, 
                assembled, and substantially transformed, as 
                applicable, by a qualified manufacturer in a qualified 
                facility;
                    ``(B) none of the sensitive technology located on 
                the railroad freight car, including components 
                necessary to the functionality of the sensitive 
                technology, originates from a country of concern or is 
                sourced from a state-owned enterprise; and
                    ``(C) none of the content of the railroad freight 
                car, excluding sensitive technology, originates from a 
                country of concern or is sourced from a state-owned 
                enterprise that has been determined by a recognized 
                court or administrative agency of competent 
                jurisdiction and legal authority to have violated or 
                infringed valid United States intellectual property 
                rights of another, including such a finding by a 
                Federal district court under title 35 or the United 
                States International Trade Commission under section 337 
                of the Tariff Act of 1930 (19 U.S.C. 1337).
            ``(2) Limitation on railroad freight car content.--
                    ``(A) Percentage limitation.--Not later than 1 year 
                after the date of the enactment of the SAFE TRAINS Act, 
                a railroad freight car may operate on the United States 
                freight railroad interchange system only if--
                            ``(i) not more than 20 percent of the 
                        content of the railroad freight car, calculated 
                        by the net cost of all components of the car 
                        and excluding the cost of sensitive technology, 
                        originates from a country of concern or is 
                        sourced from a state-owned enterprise; or
                            ``(ii) not later than 2 years after the 
                        date of the enactment of the SAFE TRAINS Act, 
                        the percentage described in clause (i) is not 
                        more than 15 percent.
                    ``(B) Conflict.--The percentages specified in 
                subparagraph (A) shall apply notwithstanding any 
                apparent conflict with the provisions of chapter 4 of 
                the USMCA.
    ``(c) Regulations and Penalties.--
            ``(1) Regulations required.--Not later than 1 year after 
        the date of the enactment of the SAFE TRAINS Act, the Secretary 
        of Transportation shall issue such regulations as are necessary 
        to carry out this section, including regulations necessary for 
        the monitoring, enforcement, and sensitive technology 
        requirements under this section.
            ``(2) Certification required.--To be eligible to provide a 
        railroad freight car for operation on the United States freight 
        railroad interchange system, the manufacturer of such car shall 
        annually certify to the Secretary that any railroad freight 
        cars so provided meets the requirements under this section.
            ``(3) Compliance.--
                    ``(A) Valid certification required.--At the time a 
                railroad freight car begins operation on the United 
                States freight railroad interchange system, the 
                manufacturer of such railroad freight car shall have 
                valid certification described in paragraph (2) for the 
                year in which such car begins operation.
                    ``(B) Registration of noncompliant cars 
                prohibited.--A railroad freight car manufacturer may 
                not register, or cause to be registered, a railroad 
                freight car that does not comply with the requirements 
                under this section in the Association of American 
                Railroad's Umler system.
            ``(4) Civil penalties.--
                    ``(A) In general.--A railroad freight car 
                manufacturer that has manufactured a railroad freight 
                car for operation on the United States freight railroad 
                interchange system that the Secretary of Transportation 
                determines, after written notice and an opportunity for 
                a hearing, has violated this section is liable to the 
                United States Government for a civil penalty of at 
                least $100,000, but not more than $250,000, for each 
                such violation for each railroad freight car.
                    ``(B) Prohibition for violations.--The Secretary of 
                Transportation may prohibit a railroad freight car 
                manufacturer with respect to which the Secretary has 
                assessed more than 3 violations under subparagraph (A) 
                from providing additional railroad freight cars for 
                operation on the United States freight railroad 
                interchange system until the Secretary determines--
                            ``(i) such manufacturer is in compliance 
                        with this section; and
                            ``(ii) all civil penalties assessed to such 
                        manufacturer pursuant to subparagraph (A) have 
                        been paid in full.''.
    (b) Clerical Amendment.--The chapter analysis for chapter 207 of 
title 49, United States Code, is amended by adding at the end the 
following:

``20704. Requirements for railroad freight cars entering service in the 
                            United States.''.
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