A bill to establish the Office of Critical Technologies and Security, and for other purposes.

II 116TH CONGRESS 1ST SESSION S. 29 To establish the Office of Critical Technologies and Security, and for other purposes. IN THE SENATE OF THE UNITED STATES JANUARY 4, 2019 Mr. WARNER (for himself and Mr. RUBIO) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs A BILL To establish the Office of Critical Technologies and Security, 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, 2 SECTION 1. FINDING; PURPOSE. 3 (a) FINDING.—Congress finds that, as of the date of 4 the enactment of this Act, the Federal Government 5 lacked— 6 (1) an office in the Executive Office of the 7 President that can coordinate security policy relating 8 to critical emerging, foundational, and dual-use tech- 9 nologies between the National Security Council and 10 VerDate Sep 11 2014 23:29 Jan 07, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S29.IS S29 pamtmann on DSKBFK8HB2PROD with BILLS 2 •S 29 IS the National Economic Council and interface with 1 international, Federal, State, and local entities on 2 that policy; and 3 (2) a strategic plan— 4 (A) to stop the transfer of critical emerg- 5 ing, foundational, and dual-use technologies to 6 countries that pose a national security risk; and 7 (B) to maintain United States techno- 8 logical leadership with respect to critical emerg- 9 ing, foundational, and dual-use technologies and 10 ensure supply chain integrity and security for 11 such technologies. 12 (b) PURPOSE.—The primary purpose of this Act is 13 to establish the Office of Critical Technologies and Secu- 14 rity— 15 (1) to coordinate a whole-of-government re- 16 sponse to protect critical emerging, foundational, 17 and dual-use technologies and to effectively enlist 18 the support of regulators, the private sector, and 19 other scientific and technical hubs, including aca- 20 demia, to support and assist with such response; and 21 (2) to develop a long-term strategy to achieve 22 and maintain United States technological supremacy 23 with respect to critical emerging, foundational, and 24 VerDate Sep 11 2014 23:29 Jan 07, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S29.IS S29 pamtmann on DSKBFK8HB2PROD with BILLS 3 •S 29 IS dual-use technologies and ensure supply chain integ- 1 rity and security for such technologies. 2 SEC. 2. OFFICE OF CRITICAL TECHNOLOGIES AND SECU- 3 RITY. 4 (a) ESTABLISHMENT.—There is established in the 5 Executive Office of the President an Office of Critical 6 Technology and Security (in this section referred to as the 7 ‘‘Office’’). 8 (b) DIRECTOR.— 9 (1) IN GENERAL.—There shall be at the head 10 of the Office a Director who shall be appointed by 11 the President. 12 (2) REPORTING.—The Director of the Office 13 shall report directly to the President. 14 (3) ADDITIONAL ROLES.—In addition to serving 15 as the head of the Office, the Director of the Office 16 shall— 17 (A) be a Deputy National Security Advisor 18 for the National Security Council and serve as 19 a member of such council; 20 (B) be a Deputy Director for the National 21 Economic Council and serve as a member of 22 such council; and 23 VerDate Sep 11 2014 23:29 Jan 07, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S29.IS S29 pamtmann on DSKBFK8HB2PROD with BILLS 4 •S 29 IS (C) serve as the chairperson of the Council 1 on Critical Technologies and Security estab- 2 lished under section 3. 3 (c) FUNCTIONS.—The functions of the Director of 4 the Office are as follows: 5 (1) COORDINATION.—To carry out coordination 6 functions as follows: 7 (A) To serve as a centralized focal point 8 within the Executive Office of the President for 9 coordinating policy and actions of the Federal 10 Government— 11 (i) to stop the transfer of critical 12 emerging, foundational, and dual-use tech- 13 nologies to countries that pose a national 14 security risk, including by leading the 15 interagency process to identify emerging 16 and foundational technologies under sec- 17 tion 1758 of the John S. McCain National 18 Defense Authorization Act for Fiscal Year 19 2019 (Public Law 115–232); and 20 (ii) to maintain United States techno- 21 logical leadership with respect to critical 22 emerging, foundational, and dual-use tech- 23 nologies and ensure supply chain integrity 24 and security for such technologies. 25 VerDate Sep 11 2014 23:29 Jan 07, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S29.IS S29 pamtmann on DSKBFK8HB2PROD with BILLS 5 •S 29 IS (B) To coordinate whole-of-government re- 1 sponses, working in partnership with heads of 2 national security and economic agencies and 3 agencies with science and technology hubs, in- 4 cluding those described in section 3(c)(1). 5 (C) To facilitate coordination and consulta- 6 tion with— 7 (i) Federal and State regulators of 8 telecommunications and technology indus- 9 tries, including the Federal Communica- 10 tions Commission, the Federal Trade Com- 11 mission, and the Office of Science and 12 Technology Policy; 13 (ii) the private sector, including indus- 14 try, labor, consumer, and other groups as 15 necessary; 16 (iii) other nongovernmental scientific 17 and technical hubs and stakeholders, in- 18 cluding academic stakeholders; and 19 (iv) key international partners and al- 20 lies of the United States. 21 (2) MESSAGING AND OUTREACH.—To lead mes- 22 saging and outreach efforts by the Federal Govern- 23 ment on the national security threat posed by the 24 improper acquisition and transfer of critical emerg- 25 VerDate Sep 11 2014 23:29 Jan 07, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S29.IS S29 pamtmann on DSKBFK8HB2PROD with BILLS 6 •S 29 IS ing, foundational, and dual-use technologies that the 1 Federal Government determines necessary to pro- 2 tect, by countries of concern including— 3 (A) acting as the chief policy spokesperson 4 for the Federal Government on related security 5 and critical technology issues; 6 (B) encouraging Federal departments and 7 agencies to work with key stakeholders as de- 8 scribed in paragraph (1), as well as States, lo- 9 calities, international partners, and allies, to 10 better analyze and disseminate critical informa- 11 tion from the intelligence community (as de- 12 fined in section 3 of the National Security Act 13 of 1947 (50 U.S.C. 3003)); and 14 (C) improving overall education of the 15 United States public and business leaders in 16 key sectors about the threat to United States 17 national security posed by— 18 (i) the improper acquisition and trans- 19 fer of critical technologies by countries 20 that pose a national security risk; and 21 (ii) reliance on foreign products iden- 22 tified by the Federal Government that pose 23 a national security risk in private sector 24 supply chains. 25 VerDate Sep 11 2014 23:29 Jan 07, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S29.IS S29 pamtmann on DSKBFK8HB2PROD with BILLS 7 •S 29 IS (3) LONG-TERM STRATEGY.—To lead the devel- 1 opment of a comprehensive, long-term strategic plan 2 in coordination with United States allies and other 3 defense partners— 4 (A) to enhance the interagency process for 5 identifying emerging and foundational carried 6 out under section 1758 of the John S. McCain 7 National Defense Authorization Act for Fiscal 8 Year 2019 (Public Law 115–232) and to re- 9 evaluate those identifications on an ongoing 10 basis; 11 (B)(i) to protect and enforce intellectual 12 property rights; 13 (ii) to reduce reliance on foreign products 14 identified by the Federal Government that pose 15 a national security risk to the United States in 16 critical public sector supply chains; 17 (iii) to develop a strategy to inform the 18 private sector about critical supply chain risks; 19 and 20 (iv) to address other security concerns re- 21 lated to forced or unfair technology transfer to 22 and from such countries; 23 (C) to maintain technological leadership 24 with respect to critical emerging, foundational, 25 VerDate Sep 11 2014 23:29 Jan 07, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S29.IS S29 pamtmann on DSKBFK8HB2PROD with BILLS 8 •S 29 IS and dual-use technologies and to increase public 1 sector funding for research and development 2 that is key to maintaining such technological 3 leadership; 4 (D) to develop specific policies and actions 5 to enforce intellectual property and cybersecu- 6 rity standards to deter and prosecute industrial 7 espionage and other similar measures; and 8 (E) to develop specific policies— 9 (i) to improve the research and devel- 10 opment ecosystem, including academic in- 11 stitutions, nonprofit organizations, and pri- 12 vate entities; and 13 (ii) to reestablish the United States as 14 the world leader in research and develop- 15 ment; and 16 (F) to develop specific measures and goals 17 that can be tracked and monitored as described 18 in paragraph (4). 19 (4) MONITORING AND TRACKING.— 20 (A) MEASURES.—In conjunction with the 21 Council of Economic Advisors, the United 22 States Trade Representative, the Office of 23 Science and Technology Policy, to use measures 24 VerDate Sep 11 2014 23:29 Jan 07, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S29.IS S29 pamtmann on DSKBFK8HB2PROD with BILLS 9 •S 29 IS developed under paragraph (3)(F) to monitor 1 and track— 2 (i) key trends relating to transfer of 3 critical emerging, foundational, and dual- 4 use technologies; 5 (ii) key trends relating to United 6 States government investments in innova- 7 tion and competitiveness compared to gov- 8 ernments of other countries; 9 (iii) inappropriate influence of inter- 10 national standards setting processes by 11 foreign countries that pose a national secu- 12 rity risk; and 13 (iv) progress implementing the com- 14 prehensive, long-term strategic plan devel- 15 oped under paragraph (3). 16 (B) GOALS.—To monitor and track 17 progress made towards achieving goals relating 18 to protecting the security of critical technologies 19 of the United States. 20 (d) STAFF.—The Director of the Office may— 21 (1) without regard to the civil service laws, em- 22 ploy, and fix the compensation of, such specialists 23 and other experts as may be necessary for the Direc- 24 tor to carry out the functions of the Director; and 25 VerDate Sep 11 2014 23:29 Jan 07, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S29.IS S29 pamtmann on DSKBFK8HB2PROD with BILLS 10 •S 29 IS (2) subject to the civil service laws, employ such 1 other officers and employees as may be necessary to 2 carry out the functions of the Director. 3 (e) ANNUAL REPORT.— 4 (1) IN GENERAL.—Not less frequently than 5 once each year, the Director shall submit to Con- 6 gress a report on— 7 (A) the activities of the Office; and 8 (B) matters relating to national security 9 and the protection of critical technologies. 10 (2) FORM.—Each report submitted under para- 11 graph (1) shall be submitted in unclassified form, 12 but may include a classified annex. 13 (f) CONFORMING AMENDMENT.—Section 101(c) of 14 the National Security Act of 1947 (50 U.S.C. 3021(c)) 15 is amended by inserting ‘‘the Director of the Office of 16 Critical Technologies and Security,’’ after ‘‘Treasury,’’. 17 SEC. 3. COUNCIL ON CRITICAL TECHNOLOGIES AND SECU- 18 RITY. 19 (a) ESTABLISHMENT.—There is a council known as 20 the Council on Critical Technologies and Security (in this 21 section referred to as the ‘‘Council’’). 22 (b) FUNCTION.—The function of the Council shall be 23 to advise the President on matters relating to challenges 24 VerDate Sep 11 2014 23:29 Jan 07, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S29.IS S29 pamtmann on DSKBFK8HB2PROD with BILLS 11 •S 29 IS posed by foreign powers with respect to technology acqui- 1 sition and transfer. 2 (c) MEMBERSHIP.— 3 (1) COMPOSITION.—The Council shall be com- 4 posed of the following: 5 (A) The Director of the Office of Critical 6 Technologies and Security appointed under sec- 7 tion 2(b)(1). 8 (B) The Secretary of Agriculture. 9 (C) The Secretary of Commerce. 10 (D) The Secretary of Defense. 11 (E) The Secretary of Education. 12 (F) The Secretary of Energy. 13 (G) The Secretary of Homeland Security. 14 (H) The Secretary of State. 15 (I) The Secretary of Transportation. 16 (J) The Secretary of the Treasury. 17 (K) The Director of the Office of Manage- 18 ment and Budget. 19 (L) The Director of National Intelligence. 20 (M) The Director of the Central Intel- 21 ligence Agency. 22 (N) The Director of the Federal Bureau of 23 Investigation. 24 VerDate Sep 11 2014 23:29 Jan 07, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S29.IS S29 pamtmann on DSKBFK8HB2PROD with BILLS 12 •S 29 IS (O) The United States Trade Representa- 1 tive. 2 (P) The Director of the National Economic 3 Council. 4 (Q) The National Security Advisor. 5 (R) The Director of the Office of Science 6 and Technology Policy. 7 (S) A representative of the Committee on 8 Foreign Investment in the United States who 9 shall be selected by the Committee for purposes 10 of this section. 11 (T) The Ambassador to the United Na- 12 tions. 13 (U) The Chair of the Federal Communica- 14 tions Commission. 15 (V) The Chair of the Federal Trade Com- 16 mission. 17 (W) Such other heads of departments and 18 agencies of the Federal Government as the 19 chairperson of the Council considers appro- 20 priate. 21 (2) CHAIRPERSON.—The chairperson of the 22 Council shall be the Director of the Office of Critical 23 Technologies and Security appointed under section 24 2(b)(1). 25 VerDate Sep 11 2014 23:29 Jan 07, 2019 Jkt 089200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S29.IS S29 pamtmann on DSKBFK8HB2PROD with BILLS 13 •S 29 IS (d) CONSULTATION AND COOPERATION.—The Coun- 1 cil— 2 (1) may constitute such advisory committees 3 and may consult with such representatives of indus- 4 try, agriculture, labor, consumers, State and local 5 governments, and other groups, as the Council con- 6 siders advisable; 7 (2) shall consult with the entities listed under 8 section 2(c)(1)(C); and 9 (3) shall seek and obtain the cooperation of the 10 various executive and independent agencies of the 11 Federal Government in the development of special- 12 ized studies essential to its responsibilities. 13 Æ VerDate Sep 11 2014 23:29 Jan 07, 2019 Jkt 089200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6301 E:\BILLS\S29.IS S29 pamtmann on DSKBFK8HB2PROD with BILLS