I 117th CONGRESS 2d Session H. R. 7138 IN THE HOUSE OF REPRESENTATIVES March 17, 2022 Mr. Obernolte (for himself and Ms. Jacobs of California ) introduced the following bill; which was referred to the Committee on Foreign Affairs , and in addition to the Committee on Oversight and Reform , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To establish procedures to include certain foreign persons that pose a threat to the security of supply chains of Internet of Things devices on the Department of Commerce’s Entity List, and for other purposes.

1. Short title This Act may be cited as the Protecting Against Compromised Internet of Things Technology Act . 2. Recommendations to include covered foreign persons on the Entity List (a) In general Not later than 90 days after the date of the enactment of this Act, the Secretary of Commerce, acting through the Bureau of Industry and Security, shall submit to the End-User Review Committee— (1) a list of covered foreign persons, if any, that the Secretary determines pose a threat to the security of supply chains of Internet of Things devices; and (2) a recommendation of whether or not to include each such covered foreign person on the Entity List or make other modifications to the Entity List as appropriate. (b) Updates of list The Secretary of Commerce shall submit to the End-User Review Committee an updated list and corresponding recommendations under paragraph (1)— (1) not later than 180 days after the date of the enactment of this Act, and every 180 days thereafter; and (2) as new information becomes available. 3. Consideration and vote to include covered foreign persons on the Entity List Not later than 90 days after receiving a list of covered foreign persons and corresponding recommendations required by section 2, the End-User Review Committee shall convene a meeting— (1) to consider such list of covered foreign persons and corresponding recommendations; and (2) to hold a vote with respect to including each such covered foreign person on the Entity List or make other modifications to the Entity List as appropriate. 4. Federal financial assistance prohibition In the event that any company is on the list described under section 3— (1) that company may not receive any Federal financial assistance; and (2) the Federal Government may not enter into any contract with such company for any Internet of Things device. 5. Definitions In this Act: (1) Covered foreign person The term covered foreign person — (A) means a foreign person that produces an Internet of Things device; and (B) includes a parent company, subsidiary, or relevant senior officer or other official of such foreign person. (2) End-User Review Committee The term End-User Review Committee means the End-User Review Committee described in Supplement No. 9 to part 748 of the Export Administration Regulations. (3) Entity List The term Entity List means the list maintained by the Bureau of Industry and Security of the Department of Commerce and set forth in Supplement No. 4 to part 744 of title 15, Code of Federal Regulations. (4) Export Administration Regulations The term Export Administration Regulations means subchapter C of chapter VII of title 15, Code of Federal Regulations. (5) Federal financial assistance The term Federal financial assistance means any form of loan, grant, guarantee, insurance, payment, rebate, subsidy, or any other form of direct or indirect Federal assistance (including general or special revenue sharing or formula grants made to States) approved by any Federal officer or agency. (6) Foreign person The term foreign person means a person that is not a United States person. (7) Internet of Things device The term Internet of Things device means a device described in section 2(4) of the Internet of Things Cybersecurity Improvement Act of 2020 (15 U.S.C. 278g–3a note). (8) United States person The term United States person means— (A) a United States citizen or an alien lawfully admitted for permanent residence to the United States; or (B) an entity organized under the laws of the United States or of any jurisdiction within the United States, including a foreign branch of such an entity.