II 118th CONGRESS 1st Session S. 2289 IN THE SENATE OF THE UNITED STATES July 13, 2023 Mr. Peters (for himself and Mr. Grassley ) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs A BILL To direct the Director of the Information Security Oversight Office to assess foreign influence in the National Industrial Security Program and to develop a single, integrated strategy to better identify and mitigate such foreign influence, and for other purposes.

1. Short title This Act may be cited as the Mitigating Foreign Influence in Classified Government Contracts . 2. Definitions In this Act: (1) Appropriate committees of Congress The term appropriate committees of Congress means— (A) the Committee on Homeland Security and Governmental Affairs, the Committee on Armed Services, and the Select Committee on Intelligence of the Senate; and (B) the Committee on Oversight and Accountability, the Committee on Armed Services, and the Permanent Select Committee on Intelligence of the House of Representatives. (2) Cognizant security agencies; entity; foreign interest The terms cognizant security agencies , entity , and foreign interest have the meanings given those term in section 2004.4 of title 32, Code of Federal Regulations. (3) Director The term Director means the Director of the Information Security Oversight Office. (4) NISPPAC The term NISPPAC means the National Industrial Security Program Policy Advisory Committee established by Executive Order 12829 ( 50 U.S.C. 3161 note; relating to national industrial security program). 3. Assessment of foreign influence in National Industrial Security Program (a) In general The Director shall convene and direct NISPPAC to complete and submit, not later than 1 year after the date of the enactment of this Act, to the Director an assessment of foreign influence in the National Industrial Security Program. (b) Elements The assessment required by subsection (a) shall include the following: (1) A definition of foreign influence that focuses on contractual agreements or other non-ownership means that may allow foreign interests unauthorized access to classified information or to adversely affect performance of a contract or agreement requiring access to classified information. (2) An assessment of the extent of the threat of foreign influence in the National Industrial Security Program. (3) A description of the challenges in identifying foreign influence. (4) A list of the criteria and factors that should be considered to identify foreign influence requiring mitigation. (5) An identification of the methods, if any, currently used to mitigate foreign influence. (6) An assessment of the effectiveness and limitations of such mitigations, and recommendations for new mitigation methods. (7) An assessment of whether processes to identify and mitigate foreign influence are consistent across cognizant security agencies. (8) An identification of the tools available to assist entities identify and avoid foreign influence that would require mitigation, and recommendations for tools needed. (c) Submission to Congress Not later than 1 year after the date of the enactment of this Act, the Director shall submit to the appropriate congressional committees the assessment completed under subsection (a). 4. Strategy to identify and mitigate foreign influence in National Industrial Security Program (a) In general Not later than 540 days after the date of the enactment of this Act, the Director, in consultation with the cognizant security agencies, shall submit to the appropriate committees of Congress a strategy, to be known as the National Strategy to Mitigate Foreign Influence in the National Industrial Security Program , to improve the ability of the Federal Government and entities to identify and mitigate foreign influence. (b) Elements The strategy required by subsection (a) shall include the following: (1) Processes to identify foreign influence requiring mitigation, including entity submission of standard forms and government security reviews. (2) Methods to mitigate foreign influence. (3) Practices to ensure processes to identify foreign influence and methods to mitigate foreign influence are consistent across cognizant security agencies. (4) Tools, including best practices, to assist entities in recognizing the risk of foreign influence and implementing methods to mitigate foreign influence. (5) Proposed updates to parts 117 and 2004 of title 32, Code of Federal Regulations. (6) Recommendations for legislation as the Director considers appropriate. (c) Implementation (1) In general Not later than 90 days after the date on which the strategy required under subsection (a) is submitted to the appropriate committees of Congress, the Director, in collaboration with the cognizant security agencies, shall commence implementation of the strategy. (2) Report Not later than 1 year after the date on which the Director commences implementation of the strategy required by subsection (a) in accordance with paragraph (1), the Director shall submit to the appropriate committees of Congress a report describing the efforts of the cognizant security agencies to implement the strategy and the progress of such efforts.