II Calendar No. 185 118th CONGRESS 1st Session S. 1868 [Report No. 118–82] IN THE SENATE OF THE UNITED STATES June 7, 2023 Mr. Peters (for himself and Mr. Scott of Florida ) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs July 27, 2023 Reported by Mr. Peters , with an amendment Strike out all after the enacting clause and insert the part printed in italic A BILL To require an interagency study to produce a security assessment process on adjacent space to high-security leased space to accommodate a Federal agency, and for other purposes.

1. Short title This Act may be cited as the Secure Adjacent Federal Property Act of 2023 . 2. Definitions In this Act: (1) Administrator The term Administrator means the Administrator of General Services. (2) Beneficial owner (A) In general The term beneficial owner , with respect to a covered entity, means each natural person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise— (i) exercises control over the covered entity; or (ii) has a substantial interest in or receives substantial economic benefits from the assets of the covered entity. (B) Exclusions The term beneficial owner , with respect to a covered entity, does not include— (i) a minor; (ii) a person acting as a nominee, intermediary, custodian, or agent on behalf of another person; (iii) a person acting solely as an employee of the covered entity and whose control over or economic benefits from the covered entity derives solely from the employment status of the person; (iv) a person whose only interest in the covered entity is through a right of inheritance, unless the person also meets the requirements of subparagraph (A); or (v) a creditor of the covered entity, unless the creditor also meets the requirements of subparagraph (A). (C) Anti-abuse rule The exclusions under subparagraph (B) shall not apply if, in the determination of the Administrator, an exclusion is used for the purpose of evading, circumventing, or abusing the requirements of this Act. (3) Control The term control , with respect to a covered entity, means— (A) having the authority or ability to determine how the covered entity is used; or (B) having some decision-making power for the use of the covered entity. (4) Covered entity The term covered entity means— (A) a person, corporation, company, business association, partnership, society, trust, or any other nongovernmental entity, organization, or group; and (B) any governmental entity or instrumentality of a government. (5) Executive agency The term Executive agency has the meaning given the term in section 105 of title 5, United States Code. (6) Federal agency The term Federal agency means— (A) an Executive agency; and (B) any establishment in the legislative or judicial branch of the Federal Government. (7) Federal lessee (A) In general The term Federal lessee means— (i) the Administrator; (ii) the Architect of the Capitol; and (iii) the head of any other Federal agency that has independent statutory leasing authority. (B) Exclusions The term Federal lessee does not include— (i) the head of an element of the intelligence community; or (ii) the Secretary of Defense. (8) Federal tenant (A) In general The term Federal tenant means a Federal agency that is occupying or will occupy a high-security leased space for which a lease agreement has been secured on behalf of the Federal agency. (B) Exclusion The term Federal tenant does not include an element of the intelligence community. (9) Foreign entity The term foreign entity means a covered entity that is headquartered or incorporated in a country that is not the United States. (10) Foreign person The term foreign person means an individual who is not a United States person. (11) High-security leased adjacent space The term high-security leased adjacent space means a building or office space that shares a boundary with or surrounds a high-security leased space. (12) High-security leased space The term high-security leased space means a space leased by a Federal lessee that— (A) will be occupied by Federal employees for nonmilitary activities; and (B) has a facility security level of III, IV, or V, as determined by the Federal tenant in consultation with the Interagency Security Committee, the Secretary of Homeland Security, and the Administrator. (13) Highest-level owner The term highest-level owner means an entity that owns or controls— (A) an immediate owner of the offeror of a lease for a high-security leased adjacent space; or (B) 1 or more entities that control an immediate owner of the offeror of a lease described in subparagraph (A). (14) Immediate owner The term immediate owner means an entity, other than the offeror of a lease for a high-security leased adjacent space, that has direct control of that offeror, including— (A) ownership or interlocking management; (B) identity of interests among family members; (C) shared facilities and equipment; and (D) the common use of employees. (15) Intelligence community The term intelligence community has the meaning given the term in section 3 of the National Security Act of 1947 ( 50 U.S.C. 3003 ). (16) Substantial economic benefits The term substantial economic benefits , with respect to a natural person described in paragraph (2)(A)(ii), means having an entitlement to the funds or assets of a covered entity that, as a practical matter, enables the person, directly or indirectly, to control, manage, or direct the covered entity. (17) United states person The term United States person means an individual who— (A) is a citizen of the United States; or (B) is an alien lawfully admitted for permanent residence in the United States. 3. Governmentwide study (a) Coordination study The Administrator, in coordination with the Director of the Federal Protective Service, the Secretary of Homeland Security, the Director of the Office of Management and Budget, and any other relevant entities, as determined by the Administrator, shall carry out a governmentwide study examining options to assist agencies (as defined is defined in section 551 of title 5, United States Code) to produce a security assessment process on high-security leased adjacent space before entering into a lease or novation agreement with a covered entity for the purposes of accommodating a Federal tenant located in a high-security leased space. (b) Contents The study required under subsection (a)— (1) shall evaluate how to produce a security assessment process that includes a process for assessing the threat level of each occupancy of a high-security leased space, including through— (A) site-visits; (B) interviews; and (C) any other relevant activities determined necessary by the Director of the Federal Protective Service; and (2) may include a process for collecting and using information on each immediate owner, highest-level owner, or beneficial owner of a covered entity that seeks to enter into a lease with a Federal lessee for a high-security leased adjacent space, including— (A) name; (B) current residential or business street address; and (C) an identifying number or document that verifies identity as a United States person, a foreign person, or foreign entity. (c) Working group (1) In general Not later than 90 days after the date of enactment of this Act, the Administrator, in coordination with the Director of Federal Protective Service, the Secretary of Homeland Security, the Director of the Office of Management and Budget, and any other relevant entities, as determined by the Administrator, shall establish a working group to assist in the carrying out of the study required under subsection (a). (2) No compensation A member of the working group established under paragraph (1) shall receive no compensation as a result of serving on the working group. (3) Sunset The working group established under paragraph (1) shall terminate on the date on which the report required under subsection (e) is submitted. (d) Protection of information The Administrator shall ensure that any information collected pursuant to the study required under subsection (a) shall not be made available to the public. (e) Report Not later than 2 years after the date of enactment of this Act, the Administrator, in coordination with the Director of Federal Protective Service, the Secretary of Homeland Security, the Director of the Office of Management and Budget, and any other relevant entities, as determined by the Administrator, shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report describing— (1) the results of the study required under subsection (a); and (2) how all applicable privacy laws and rights relating to the First and Fourth Amendments to the Constitution of the United States would be upheld and followed in— (A) the security assessment process described in paragraph (1) of subsection (b); and (B) the information collection process described in paragraph (2) of that subsection.

1. Short title This Act may be cited as the Secure Adjacent Federal Property Act of 2023 . 2. Definitions In this Act: (1) Administrator The term Administrator means the Administrator of General Services. (2) Beneficial owner (A) In general The term beneficial owner , with respect to a covered entity, means each natural person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise— (i) exercises substantial control over the covered entity; or (ii) owns or controls not less than 25 percent of the ownership interests of, or receives substantial economic benefits from the assets of, the covered entity. (B) Exclusions The term beneficial owner , with respect to a covered entity, does not include— (i) a minor; (ii) a person acting as a nominee, intermediary, custodian, or agent on behalf of another person; (iii) a person acting solely as an employee of the covered entity and whose control over or economic benefits from the covered entity derives solely from the employment status of the person; (iv) a person whose only interest in the covered entity is through a right of inheritance, unless the person also meets the requirements of subparagraph (A); or (v) a creditor of the covered entity, unless the creditor also meets the requirements of subparagraph (A). (C) Anti-abuse rule The exclusions under subparagraph (B) shall not apply if, in the determination of the Administrator, an exclusion is used for the purpose of evading, circumventing, or abusing the requirements of this Act. (3) Control The term control , with respect to a covered entity, means— (A) having the authority or ability to determine how the covered entity is utilized; or (B) having some decisionmaking power for the use of the covered entity. (4) Covered entity The term covered entity means— (A) a person, corporation, company, business association, partnership, society, trust, or any other nongovernmental entity, organization, or group; or (B) any governmental entity or instrumentality of a government. (5) Executive agency The term Executive agency has the meaning given the term in section 105 of title 5, United States Code. (6) Federal agency The term Federal agency means— (A) an Executive agency; and (B) any establishment in the legislative or judicial branch of the Federal Government. (7) Federal lessee (A) In general The term Federal lessee means— (i) the Administrator; (ii) the Architect of the Capitol; and (iii) the head of any other Federal agency that has independent statutory leasing authority. (B) Exclusions The term Federal lessee does not include— (i) the head of an element of the intelligence community; or (ii) the Secretary of Defense. (8) Federal tenant (A) In general The term Federal tenant means a Federal agency that is occupying or will occupy a high-security leased space for which a lease agreement has been secured on behalf of the Federal agency. (B) Exclusion The term Federal tenant does not include an element of the intelligence community. (9) Foreign entity The term foreign entity means— (A) a corporation, company, business association, partnership, society, trust, or any other nongovernmental entity, organization, or group that is headquartered in or organized under the laws of— (i) a country that is not the United States; or (ii) a State, unit of local government, or Indian Tribe that is not located within or a territory of the United States; or (B) a government or governmental instrumentality that is not— (i) the United States Government; or (ii) a State, unit of local government, or Indian Tribe that is located within or a territory of the United States. (10) Foreign person The term foreign person means an individual who is not a United States person. (11) High-security leased adjacent space The term high-security leased adjacent space means a building or office space that shares a boundary with or surrounds a high-security leased space. (12) High-security leased space The term high-security leased space means a space leased by a Federal lessee that— (A) will be occupied by Federal employees for nonmilitary activities; and (B) has a facility security level of III, IV, or V, as determined by the Federal tenant in consultation with the Interagency Security Committee, the Secretary of Homeland Security, and the Administrator. (13) Highest-level owner The term highest-level owner means an entity that owns or controls— (A) an immediate owner of the offeror of a lease for a high-security leased adjacent space; or (B) 1 or more entities that control an immediate owner of the offeror of a lease described in subparagraph (A). (14) Immediate owner The term immediate owner means an entity, other than the offeror of a lease for a high-security leased adjacent space, that has direct control of that offeror, including— (A) ownership or interlocking management; (B) identity of interests among family members; (C) shared facilities and equipment; and (D) the common use of employees. (15) Intelligence community The term intelligence community has the meaning given the term in section 3 of the National Security Act of 1947 ( 50 U.S.C. 3003 ). (16) Substantial economic benefits The term substantial economic benefits , with respect to a natural person described in paragraph (2)(A)(ii), means having an entitlement to the funds or assets of a covered entity that, as a practical matter, enables the person, directly or indirectly, to control, manage, or direct the covered entity. (17) United states person The term United States person means an individual who— (A) is a citizen of the United States; or (B) is an alien lawfully admitted for permanent residence in the United States. 3. Government-wide study (a) Coordination study The Administrator, in coordination with the Director of the Federal Protective Service, the Secretary of Homeland Security, the Director of the Office of Management and Budget, and any other relevant entities, as determined by the Administrator, shall carry out a Government-wide study examining options to assist agencies (as defined in section 551 of title 5, United States Code) to produce a security assessment process for high-security leased adjacent space before entering into a lease or novation agreement with a covered entity for the purposes of accommodating a Federal tenant located in a high-security leased space. (b) Contents The study required under subsection (a)— (1) shall evaluate how to produce a security assessment process that includes a process for assessing the threat level of each occupancy of a high-security leased adjacent space, including through— (A) site-visits; (B) interviews; and (C) any other relevant activities determined necessary by the Director of the Federal Protective Service; and (2) may include a process for collecting and using information on each immediate owner, highest-level owner, or beneficial owner of a covered entity that seeks to enter into a lease with a Federal lessee for a high-security leased adjacent space, including— (A) name; (B) current residential or business street address; and (C) an identifying number or document that verifies identity as a United States person, a foreign person, or a foreign entity. (c) Working group (1) In general Not later than 90 days after the date of enactment of this Act, the Administrator, in coordination with the Director of Federal Protective Service, the Secretary of Homeland Security, the Director of the Office of Management and Budget, and any other relevant entities, as determined by the Administrator, shall establish a working group to assist in the carrying out of the study required under subsection (a). (2) No compensation A member of the working group established under paragraph (1) shall receive no compensation as a result of serving on the working group. (3) Sunset The working group established under paragraph (1) shall terminate on the date on which the report required under subsection (f) is submitted. (d) Protection of information The Administrator shall ensure that any information collected pursuant to the study required under subsection (a) shall not be made available to the public. (e) Limitation Nothing in this section requires an entity located in the United States to provide information requested pursuant to the study required under subsection (a). (f) Report Not later than 2 years after the date of enactment of this Act, the Administrator, in coordination with the Director of Federal Protective Service, the Secretary of Homeland Security, the Director of the Office of Management and Budget, and any other relevant entities, as determined by the Administrator, shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report describing— (1) the results of the study required under subsection (a); and (2) how all applicable privacy laws and rights relating to the First and Fourth Amendments to the Constitution of the United States would be upheld and followed in— (A) the security assessment process described in paragraph (1) of subsection (b); and (B) the information collection process described in paragraph (2) of that subsection. (g) Limitation Nothing in this section authorizes a Federal entity to mandate information gathering unless specifically authorized by law. (h) Prohibition No information collected pursuant the security assessment process described in subsection (b)(1) may be used for law enforcement purposes. (i) No additional funding No additional funds are authorized to be appropriated to carry out this section.

July 27, 2023 Reported with an amendment