What This Bill Does
This bill creates a process for the U.S. Department of Commerce to identify foreign companies that make Internet of Things devices (connected devices like smart home products or industrial sensors) and that threaten the security of supply chains. The bill allows a special committee to decide whether to add these companies to the Entity List, which is an official U.S. government list of restricted businesses.
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Who It Affects
- The Secretary of Commerce and the Bureau of Industry and Security
- The End-User Review Committee (a government decision-making group)
- Foreign companies that manufacture Internet of Things devices
- Foreign parent companies, subsidiaries, and senior officials of these companies
- The U.S. federal government and any company seeking federal contracts or funding
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Key Provisions
- The Secretary of Commerce must submit a list of foreign companies that threaten Internet of Things supply chain security to the End-User Review Committee within 90 days after the law is enacted, along with a recommendation for adding them to the Entity List (Sec. 2)
- The Secretary must provide updated lists every 180 days and whenever new information becomes available (Sec. 2)
- The End-User Review Committee must meet within 90 days of receiving the list and vote on whether to add the companies to the Entity List (Sec. 3)
- Any foreign company on the Entity List cannot receive federal financial assistance (money, loans, grants, insurance, subsidies, or other government help) and cannot receive government contracts for Internet of Things devices (Sec. 4)
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What Changes
If this bill becomes law, foreign companies that make Internet of Things devices and are found to threaten supply chain security can be officially restricted from doing business with the U.S. federal government and from receiving any federal money or financial support.
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Important Definitions
- **Covered foreign person:** A foreign company that makes Internet of Things devices, including its parent company, subsidiaries, and senior officials
- **Internet of Things device:** Not fully defined in this bill text; the bill references another law from 2020 for the definition
- **Entity List:** An official list kept by the Department of Commerce showing restricted foreign businesses
- **Federal financial assistance:** Any loan, grant, guarantee, insurance, payment, rebate, subsidy, or other direct or indirect government help approved by any federal officer or agency
- **Foreign person:** Someone or a company that is not a U.S. person
- **United States person:** A U.S. citizen, lawful permanent resident, or a company organized under U.S. law (including foreign branches of U.S. companies)
- **End-User Review Committee:** A specific government committee described in Export Administration Regulations
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Effective Date
Not specified in bill text
I
118TH CONGRESS
1ST SESSION
H. R. 942
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.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 9, 2023
Mr. OBERNOLTE (for himself and Ms. JACOBS) introduced the following bill;
which was referred to the Committee on Foreign Affairs, and in addition
to the Committee on Oversight and Accountability, for a period to be sub-
sequently 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 Com-
merce’s Entity List, and for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Protecting Against
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Compromised Internet of Things Technology Act’’.
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•HR 942 IH
SEC. 2. RECOMMENDATIONS TO INCLUDE COVERED FOR-
1
EIGN PERSONS ON THE ENTITY LIST.
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(a) IN GENERAL.—Not later than 90 days after the
3
date of the enactment of this Act, the Secretary of Com-
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merce, acting through the Bureau of Industry and Secu-
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rity, shall submit to the End-User Review Committee—
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(1) a list of covered foreign persons, if any, that
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the Secretary determines pose a threat to the secu-
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rity of supply chains of Internet of Things devices;
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and
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(2) a recommendation of whether or not to in-
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clude each such covered foreign person on the Entity
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List or make other modifications to the Entity List
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as appropriate.
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(b) UPDATES OF LIST.—The Secretary of Commerce
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shall submit to the End-User Review Committee an up-
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dated list and corresponding recommendations under
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paragraph (1)—
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(1) not later than 180 days after the date of
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the enactment of this Act, and every 180 days there-
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after; and
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(2) as new information becomes available.
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SEC. 3. CONSIDERATION AND VOTE TO INCLUDE COVERED
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FOREIGN PERSONS ON THE ENTITY LIST.
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Not later than 90 days after receiving a list of cov-
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ered foreign persons and corresponding recommendations
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•HR 942 IH
required by section 2, the End-User Review Committee
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shall convene a meeting—
2
(1) to consider such list of covered foreign per-
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sons and corresponding recommendations; and
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(2) to hold a vote with respect to including each
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such covered foreign person on the Entity List or
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make other modifications to the Entity List as ap-
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propriate.
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SEC. 4. FEDERAL FINANCIAL ASSISTANCE PROHIBITION.
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In the event that any company is on the list described
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under section 3—
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(1) that company may not receive any Federal
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financial assistance; and
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(2) the Federal Government may not enter into
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any contract with such company for any Internet of
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Things device.
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SEC. 5. DEFINITIONS.
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In this Act:
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(1) COVERED
FOREIGN
PERSON.—The term
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‘‘covered foreign person’’—
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(A) means a foreign person that produces
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an Internet of Things device; and
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(B) includes a parent company, subsidiary,
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or relevant senior officer or other official of
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such foreign person.
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•HR 942 IH
(2) END-USER REVIEW COMMITTEE.—The term
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‘‘End-User Review Committee’’ means the End-User
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Review Committee described in Supplement No. 9 to
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part 748 of the Export Administration Regulations.
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(3) ENTITY
LIST.—The term ‘‘Entity List’’
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means the list maintained by the Bureau of Industry
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and Security of the Department of Commerce and
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set forth in Supplement No. 4 to part 744 of title
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15, Code of Federal Regulations.
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(4) EXPORT ADMINISTRATION REGULATIONS.—
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The term ‘‘Export Administration Regulations’’
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means subchapter C of chapter VII of title 15, Code
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of Federal Regulations.
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(5) FEDERAL
FINANCIAL
ASSISTANCE.—The
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term ‘‘Federal financial assistance’’ means any form
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of loan, grant, guarantee, insurance, payment, re-
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bate, subsidy, or any other form of direct or indirect
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Federal assistance (including general or special rev-
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enue sharing or formula grants made to States) ap-
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proved by any Federal officer or agency.
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(6) FOREIGN PERSON.—The term ‘‘foreign per-
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son’’ means a person that is not a United States
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person.
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(7) INTERNET OF THINGS DEVICE.—The term
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‘‘Internet of Things device’’ means a device de-
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•HR 942 IH
scribed in section 2(4) of the Internet of Things Cy-
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bersecurity Improvement Act of 2020 (15 U.S.C.
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278g–3a note).
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(8)
UNITED
STATES
PERSON.—The
term
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‘‘United States person’’ means—
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(A) a United States citizen or an alien law-
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fully admitted for permanent residence to the
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United States; or
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(B) an entity organized under the laws of
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the United States or of any jurisdiction within
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the United States, including a foreign branch of
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such an entity.
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Æ
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