Safeguarding American Innovation Act

II Calendar No. 620 116TH CONGRESS 2D SESSION S. 3997 [Report No. 116–317] To strengthen the security and integrity of the United States scientific and research enterprise. IN THE SENATE OF THE UNITED STATES JUNE 18, 2020 Mr. PORTMAN (for himself, Mr. CARPER, Mr. BARRASSO, Mrs. BLACKBURN, Mr. BRAUN, Mr. COONS, Ms. CORTEZ MASTO, Ms. HASSAN, Mr. HAWLEY, Mr. MANCHIN, Mr. RISCH, Mr. RUBIO, Mr. SCOTT of Florida, Mrs. SHAHEEN, Mr. TILLIS, Mr. GRASSLEY, Mr. JOHNSON, Ms. MCSALLY, Mr. LANKFORD, and Mr. ROMNEY) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs DECEMBER 14, 2020 Reported by Mr. JOHNSON, with an amendment [Strike out all after the enacting clause and insert the part printed in italic] A BILL To strengthen the security and integrity of the United States scientific and research enterprise. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 00:11 Dec 15, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3997.RS S3997 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 3997 RS SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 1 (a) SHORT TITLE.—This Act may be cited as the 2 ‘‘Safeguarding American Innovation Act’’. 3 (b) TABLE OF CONTENTS.—The table of contents for 4 this Act is as follows: 5 Sec. 1. Short title; table of contents. Sec. 2. Definitions. Sec. 3. Federal Research Security Council. Sec. 4. Federal grant application fraud. Sec. 5. Restricting the transfer of goods, technologies, and sensitive information to certain aliens. Sec. 6. Limitations on educational and cultural exchange programs. Sec. 7. Amendments to disclosures of foreign gifts. SEC. 2. DEFINITIONS. 6 In this Act: 7 (1) FEDERAL SCIENCE AGENCY.—The term 8 ‘‘Federal science agency’’ means any Federal depart- 9 ment or agency to which more than $100,000,000 in 10 research and development funds were appropriated 11 for fiscal year 2020. 12 (2) RESEARCH AND DEVELOPMENT.— 13 (A) IN GENERAL.—The term ‘‘research 14 and development’’ means all research activities, 15 both basic and applied, and all development ac- 16 tivities. 17 (B) DEVELOPMENT.—The term ‘‘develop- 18 ment’’ means experimental development. 19 (C) EXPERIMENTAL DEVELOPMENT.—The 20 term ‘‘experimental development’’ means cre- 21 ative and systematic work, drawing upon knowl- 22 VerDate Sep 11 2014 00:11 Dec 15, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6401 E:\BILLS\S3997.RS S3997 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 3997 RS edge gained from research and practical experi- 1 ence, which— 2 (i) is directed toward the production 3 of new products or processes or improving 4 existing products or processes; and 5 (ii) like research, will result in gaining 6 additional knowledge. 7 (D) RESEARCH.—The term ‘‘research’’— 8 (i) means a systematic study directed 9 toward fuller scientific knowledge or under- 10 standing of the subject studied; and 11 (ii) includes activities involving the 12 training of individuals in research tech- 13 niques if such activities— 14 (I) utilize the same facilities as 15 other research and development activi- 16 ties; and 17 (II) are not included in the in- 18 struction function. 19 SEC. 3. FEDERAL RESEARCH SECURITY COUNCIL. 20 (a) IN GENERAL.—Subtitle V of title 31, United 21 States Code, is amended by adding at the end the fol- 22 lowing: 23 VerDate Sep 11 2014 00:11 Dec 15, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6401 E:\BILLS\S3997.RS S3997 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 3997 RS ‘‘CHAPTER 79—FEDERAL RESEARCH 1 SECURITY COUNCIL 2 ‘‘Sec. ‘‘7901. Definitions. ‘‘7902. Federal Research Security Council establishment and membership. ‘‘7903. Functions and authorities. ‘‘7904. Strategic plan. ‘‘7905. Annual report. ‘‘7906. Requirements for Executive agencies. ‘‘§ 7901. Definitions 3 ‘‘In this chapter: 4 ‘‘(1) APPROPRIATE CONGRESSIONAL COMMIT- 5 TEES.—The term ‘appropriate congressional com- 6 mittees’ means— 7 ‘‘(A) the Committee on Homeland Security 8 and Governmental Affairs of the Senate; 9 ‘‘(B) the Committee on Commerce, 10 Science, and Transportation of the Senate; 11 ‘‘(C) the Select Committee on Intelligence 12 of the Senate; 13 ‘‘(D) the Committee on Foreign Relations 14 of the Senate; 15 ‘‘(E) the Committee on Armed Services of 16 the Senate; 17 ‘‘(F) the Committee on Health, Education, 18 Labor, and Pensions of the Senate; 19 ‘‘(G) the Committee on Oversight and Re- 20 form of the House of Representatives; 21 VerDate Sep 11 2014 00:11 Dec 15, 2020 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6401 E:\BILLS\S3997.RS S3997 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 3997 RS ‘‘(H) the Committee on Homeland Security 1 of the House of Representatives; 2 ‘‘(I) the Committee on Energy and Com- 3 merce of the House of Representatives; 4 ‘‘(J) the Permanent Select Committee on 5 Intelligence of the House of Representatives; 6 ‘‘(K) the Committee on Foreign Affairs of 7 the House of Representatives; 8 ‘‘(L) the Committee on Armed Services of 9 the House of Representatives; and 10 ‘‘(M) the Committee on Education and 11 Labor of the House of Representatives. 12 ‘‘(2) COUNCIL.—The term ‘Council’ means the 13 Federal Research Security Council established under 14 section 7902(a). 15 ‘‘(3) EXECUTIVE AGENCY.—The term ‘Execu- 16 tive agency’ has the meaning given that term in sec- 17 tion 105 of title 5. 18 ‘‘(4) FEDERAL RESEARCH SECURITY RISK.— 19 The term ‘Federal research security risk’ means the 20 risk posed by malign state actors and other persons 21 to the security and integrity of research and develop- 22 ment conducted using grants awarded by Executive 23 agencies. 24 VerDate Sep 11 2014 00:11 Dec 15, 2020 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6401 E:\BILLS\S3997.RS S3997 pamtmann on DSKBC07HB2PROD with BILLS 6 •S 3997 RS ‘‘(5) INSIDER.—The term ‘insider’ means any 1 person with authorized access to any United States 2 Government resource, including personnel, facilities, 3 information, research, equipment, networks, or sys- 4 tems. 5 ‘‘(6) INSIDER THREAT.—The term ‘insider 6 threat’ means the threat that an insider will use his 7 or her authorized access (wittingly or unwittingly) to 8 harm the national and economic security of the 9 United States or negatively affect the integrity of a 10 Federal agency’s normal processes, including dam- 11 aging the United States through espionage, sabo- 12 tage, unauthorized disclosure of national security in- 13 formation or non-public information, or through the 14 loss or degradation of departmental resources, capa- 15 bilities, and functions. 16 ‘‘(7) RESEARCH AND DEVELOPMENT.— 17 ‘‘(A) IN GENERAL.—The term ‘research 18 and development’ means all research activities, 19 both basic and applied, and all development ac- 20 tivities. 21 ‘‘(B) DEVELOPMENT.—The term ‘develop- 22 ment’ means experimental development. 23 ‘‘(C) EXPERIMENTAL DEVELOPMENT.— 24 The term ‘experimental development’ means 25 VerDate Sep 11 2014 00:11 Dec 15, 2020 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6401 E:\BILLS\S3997.RS S3997 pamtmann on DSKBC07HB2PROD with BILLS 7 •S 3997 RS creative and systematic work, drawing upon 1 knowledge gained from research and practical 2 experience, which— 3 ‘‘(i) is directed toward the production 4 of new products or processes or improving 5 existing products or processes; and 6 ‘‘(ii) like research, will result in gain- 7 ing additional knowledge. 8 ‘‘(D) RESEARCH.—The term ‘research’— 9 ‘‘(i) means a systematic study directed 10 toward fuller scientific knowledge or under- 11 standing of the subject studied; and 12 ‘‘(ii) includes activities involving the 13 training of individuals in research tech- 14 niques if such activities— 15 ‘‘(I) utilize the same facilities as 16 other research and development activi- 17 ties; and 18 ‘‘(II) are not included in the in- 19 struction function. 20 ‘‘(8) UNITED STATES RESEARCH COMMU- 21 NITY.—The term ‘United States research commu- 22 nity’ means— 23 ‘‘(A) research and development centers of 24 Executive agencies; 25 VerDate Sep 11 2014 00:11 Dec 15, 2020 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6401 E:\BILLS\S3997.RS S3997 pamtmann on DSKBC07HB2PROD with BILLS 8 •S 3997 RS ‘‘(B) private research and development 1 centers in the United States, including for-prof- 2 it and nonprofit research institutes; 3 ‘‘(C) research and development centers at 4 institutions of higher education (as defined in 5 section 101(a) of the Higher Education Act of 6 1965 (20 U.S.C. 1001(a))); 7 ‘‘(D) research and development centers of 8 States, United States territories, Indian tribes, 9 and municipalities; 10 ‘‘(E) government-owned, contractor-oper- 11 ated United States Government research and 12 development centers; and 13 ‘‘(F) any person conducting federally fund- 14 ed research or receiving Federal research grant 15 funding. 16 ‘‘§ 7902. Federal Research Security Council establish- 17 ment and membership 18 ‘‘(a) ESTABLISHMENT.—There is established, in the 19 Office of Management and Budget, a Federal Research 20 Security Council, which shall develop federally funded re- 21 search and development grant making policy and manage- 22 ment guidance to protect the national and economic secu- 23 rity interests of the United States. 24 ‘‘(b) MEMBERSHIP.— 25 VerDate Sep 11 2014 00:11 Dec 15, 2020 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6401 E:\BILLS\S3997.RS S3997 pamtmann on DSKBC07HB2PROD with BILLS 9 •S 3997 RS ‘‘(1) IN GENERAL.—The following agencies 1 shall be represented on the Council: 2 ‘‘(A) The Office of Management and 3 Budget. 4 ‘‘(B) The Office of Science and Technology 5 Policy. 6 ‘‘(C) The Department of Defense. 7 ‘‘(D) The Department of Homeland Secu- 8 rity. 9 ‘‘(E) The Office of the Director of Na- 10 tional Intelligence, including the National Coun- 11 terintelligence and Security Center. 12 ‘‘(F) The Department of Justice, including 13 the Federal Bureau of Investigation. 14 ‘‘(G) The Department of Energy. 15 ‘‘(H) The Department of Commerce, in- 16 cluding the National Institute of Standards and 17 Technology. 18 ‘‘(I) The Department of Health and 19 Human Services, including the National Insti- 20 tutes of Health. 21 ‘‘(J) The Department of State. 22 ‘‘(K) The Department of Transportation. 23 ‘‘(L) The National Aeronautics and Space 24 Administration. 25 VerDate Sep 11 2014 00:11 Dec 15, 2020 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6401 E:\BILLS\S3997.RS S3997 pamtmann on DSKBC07HB2PROD with BILLS 10 •S 3997 RS ‘‘(M) The National Science Foundation. 1 ‘‘(N) The Department of Education. 2 ‘‘(O) The Small Business Administration. 3 ‘‘(P) The Council of Inspectors General on 4 Integrity and Efficiency. 5 ‘‘(Q) Other Executive agencies, as deter- 6 mined by the Chairperson of the Council. 7 ‘‘(2) LEAD REPRESENTATIVES.— 8 ‘‘(A) DESIGNATION.—Not later than 45 9 days after the date of the enactment of this 10 chapter, the head of each agency represented on 11 the Council shall designate a representative of 12 that agency as the lead representative of the 13 agency on the Council. 14 ‘‘(B) FUNCTIONS.—The lead representa- 15 tive of an agency designated under subpara- 16 graph (A) shall ensure that appropriate per- 17 sonnel, including leadership and subject matter 18 experts of the agency, are aware of the business 19 of the Council. 20 ‘‘(c) CHAIRPERSON.— 21 ‘‘(1) DESIGNATION.—Not later than 45 days 22 after the date of the enactment of this chapter, the 23 Director of the Office of Management and Budget 24 shall designate a senior-level official from the Office 25 VerDate Sep 11 2014 00:11 Dec 15, 2020 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6401 E:\BILLS\S3997.RS S3997 pamtmann on DSKBC07HB2PROD with BILLS 11 •S 3997 RS of Management and Budget to serve as the Chair- 1 person of the Council. 2 ‘‘(2) FUNCTIONS.—The Chairperson shall per- 3 form functions that include— 4 ‘‘(A) subject to subsection (d), developing 5 a schedule for meetings of the Council; 6 ‘‘(B) designating Executive agencies to be 7 represented on the Council under subsection 8 (b)(1)(Q); 9 ‘‘(C) in consultation with the lead rep- 10 resentative of each agency represented on the 11 Council, developing a charter for the Council; 12 and 13 ‘‘(D) not later than 7 days after comple- 14 tion of the charter, submitting the charter to 15 the appropriate congressional committees. 16 ‘‘(3) LEAD SCIENCE ADVISOR.—The Director of 17 the Office of Science and Technology Policy shall be 18 the lead science advisor to the Chairperson for pur- 19 poses of this chapter. 20 ‘‘(4) LEAD SECURITY ADVISOR.—The Director 21 of the National Counterintelligence and Security 22 Center shall be the lead security advisor to the 23 Chairperson for purposes of this chapter. 24 VerDate Sep 11 2014 00:11 Dec 15, 2020 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6401 E:\BILLS\S3997.RS S3997 pamtmann on DSKBC07HB2PROD with BILLS 12 •S 3997 RS ‘‘(d) MEETINGS.—The Council shall meet not later 1 than 60 days after the date of the enactment of this chap- 2 ter and not less frequently than quarterly thereafter. 3 ‘‘§ 7903. Functions and authorities 4 ‘‘(a) IN GENERAL.—The Chairperson of the Council 5 shall consider the missions and responsibilities of Council 6 members in determining the lead agencies for Council 7 functions. The Council shall perform the following func- 8 tions: 9 ‘‘(1) Developing and implementing, across all 10 Executive agencies that award research and develop- 11 ment grants, a uniform application process for 12 grants in accordance with subsection (b). 13 ‘‘(2) Developing and implementing a uniform 14 and regular reporting process for identifying persons 15 participating in federally funded research and devel- 16 opment or that have access to nonpublic federally 17 funded information, data, research findings, and re- 18 search and development grant proposals. 19 ‘‘(3) Identifying or developing criteria, in ac- 20 cordance with subsection (c), for sharing and receiv- 21 ing information with respect to Federal research se- 22 curity risks in order to mitigate such risks with— 23 ‘‘(A) members of the United States re- 24 search community; and 25 VerDate Sep 11 2014 00:11 Dec 15, 2020 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6401 E:\BILLS\S3997.RS S3997 pamtmann on DSKBC07HB2PROD with BILLS 13 •S 3997 RS ‘‘(B) other persons participating in feder- 1 ally funded research and development. 2 ‘‘(4) Identifying an appropriate Executive agen- 3 cy— 4 ‘‘(A) to accept and protect information 5 submitted by Executive agencies and non-Fed- 6 eral entities based on the processes established 7 under paragraphs (1) and (2); and 8 ‘‘(B) to facilitate the sharing of informa [Text truncated for display. 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