Secure Adjacent Federal Property Act of 2023

118TH CONGRESS 1ST SESSION S. 1868 AN ACT To require an interagency study to produce a security assess- ment process on adjacent space to high-security leased space to accommodate a Federal agency, 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 2 † S 1868 ES SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Secure Adjacent Fed- 2 eral Property Act of 2023’’. 3 SEC. 2. DEFINITIONS. 4 In this Act: 5 (1) ADMINISTRATOR.—The term ‘‘Adminis- 6 trator’’ means the Administrator of General Serv- 7 ices. 8 (2) BENEFICIAL OWNER.— 9 (A) IN GENERAL.—The term ‘‘beneficial 10 owner’’, with respect to a covered entity, means 11 each natural person who, directly or indirectly, 12 through any contract, arrangement, under- 13 standing, relationship, or otherwise— 14 (i) exercises substantial control over 15 the covered entity; or 16 (ii) owns or controls not less than 25 17 percent of the ownership interests of, or 18 receives substantial economic benefits from 19 the assets of, the covered entity. 20 (B) EXCLUSIONS.—The term ‘‘beneficial 21 owner’’, with respect to a covered entity, does 22 not include— 23 (i) a minor; 24 3 † S 1868 ES (ii) a person acting as a nominee, 1 intermediary, custodian, or agent on behalf 2 of another person; 3 (iii) a person acting solely as an em- 4 ployee of the covered entity and whose con- 5 trol over or economic benefits from the 6 covered entity derives solely from the em- 7 ployment status of the person; 8 (iv) a person whose only interest in 9 the covered entity is through a right of in- 10 heritance, unless the person also meets the 11 requirements of subparagraph (A); or 12 (v) a creditor of the covered entity, 13 unless the creditor also meets the require- 14 ments of subparagraph (A). 15 (C) ANTI-ABUSE RULE.—The exclusions 16 under subparagraph (B) shall not apply if, in 17 the determination of the Administrator, an ex- 18 clusion is used for the purpose of evading, cir- 19 cumventing, or abusing the requirements of this 20 Act. 21 (3) CONTROL.—The term ‘‘control’’, with re- 22 spect to a covered entity, means— 23 (A) having the authority or ability to de- 24 termine how the covered entity is utilized; or 25 4 † S 1868 ES (B) having some decisionmaking power for 1 the use of the covered entity. 2 (4) COVERED ENTITY.—The term ‘‘covered en- 3 tity’’ means— 4 (A) a person, corporation, company, busi- 5 ness association, partnership, society, trust, or 6 any other nongovernmental entity, organization, 7 or group; or 8 (B) any governmental entity or instrumen- 9 tality of a government. 10 (5) EXECUTIVE AGENCY.—The term ‘‘Executive 11 agency’’ has the meaning given the term in section 12 105 of title 5, United States Code. 13 (6) FEDERAL AGENCY.—The term ‘‘Federal 14 agency’’ means— 15 (A) an Executive agency; and 16 (B) any establishment in the legislative or 17 judicial branch of the Federal Government. 18 (7) FEDERAL LESSEE.— 19 (A) IN GENERAL.—The term ‘‘Federal les- 20 see’’ means— 21 (i) the Administrator; 22 (ii) the Architect of the Capitol; and 23 5 † S 1868 ES (iii) the head of any other Federal 1 agency that has independent statutory 2 leasing authority. 3 (B) EXCLUSIONS.—The term ‘‘Federal les- 4 see’’ does not include— 5 (i) the head of an element of the intel- 6 ligence community; or 7 (ii) the Secretary of Defense. 8 (8) FEDERAL TENANT.— 9 (A) IN GENERAL.—The term ‘‘Federal ten- 10 ant’’ means a Federal agency that is occupying 11 or will occupy a high-security leased space for 12 which a lease agreement has been secured on 13 behalf of the Federal agency. 14 (B) EXCLUSION.—The term ‘‘Federal ten- 15 ant’’ does not include an element of the intel- 16 ligence community. 17 (9) FOREIGN ENTITY.—The term ‘‘foreign enti- 18 ty’’ means— 19 (A) a corporation, company, business asso- 20 ciation, partnership, society, trust, or any other 21 nongovernmental entity, organization, or group 22 that is headquartered in or organized under the 23 laws of— 24 6 † S 1868 ES (i) a country that is not the United 1 States; or 2 (ii) a State, unit of local government, 3 or Indian Tribe that is not located within 4 or a territory of the United States; or 5 (B) a government or governmental instru- 6 mentality that is not— 7 (i) the United States Government; or 8 (ii) a State, unit of local government, 9 or Indian Tribe that is located within or a 10 territory of the United States. 11 (10) FOREIGN PERSON.—The term ‘‘foreign 12 person’’ means an individual who is not a United 13 States person. 14 (11) HIGH-SECURITY LEASED ADJACENT 15 SPACE.—The term ‘‘high-security leased adjacent 16 space’’ means a building or office space that shares 17 a boundary with or surrounds a high-security leased 18 space. 19 (12) HIGH-SECURITY LEASED SPACE.—The 20 term ‘‘high-security leased space’’ means a space 21 leased by a Federal lessee that— 22 (A) will be occupied by Federal employees 23 for nonmilitary activities; and 24 7 † S 1868 ES (B) has a facility security level of III, IV, 1 or V, as determined by the Federal tenant in 2 consultation with the Interagency Security 3 Committee, the Secretary of Homeland Secu- 4 rity, and the Administrator. 5 (13) HIGHEST-LEVEL OWNER.—The term 6 ‘‘highest-level owner’’ means an entity that owns or 7 controls— 8 (A) an immediate owner of the offeror of 9 a lease for a high-security leased adjacent 10 space; or 11 (B) 1 or more entities that control an im- 12 mediate owner of the offeror of a lease de- 13 scribed in subparagraph (A). 14 (14) IMMEDIATE OWNER.—The term ‘‘imme- 15 diate owner’’ means an entity, other than the offeror 16 of a lease for a high-security leased adjacent space, 17 that has direct control of that offeror, including— 18 (A) ownership or interlocking management; 19 (B) identity of interests among family 20 members; 21 (C) shared facilities and equipment; and 22 (D) the common use of employees. 23 (15) INTELLIGENCE COMMUNITY.—The term 24 ‘‘intelligence community’’ has the meaning given the 25 8 † S 1868 ES term in section 3 of the National Security Act of 1 1947 (50 U.S.C. 3003). 2 (16) SUBSTANTIAL ECONOMIC BENEFITS.—The 3 term ‘‘substantial economic benefits’’, with respect 4 to a natural person described in paragraph 5 (2)(A)(ii), means having an entitlement to the funds 6 or assets of a covered entity that, as a practical mat- 7 ter, enables the person, directly or indirectly, to con- 8 trol, manage, or direct the covered entity. 9 (17) UNITED STATES PERSON.—The term 10 ‘‘United States person’’ means an individual who— 11 (A) is a citizen of the United States; or 12 (B) is an alien lawfully admitted for per- 13 manent residence in the United States. 14 SEC. 3. GOVERNMENT-WIDE STUDY. 15 (a) COORDINATION STUDY.—The Administrator, in 16 coordination with the Director of the Federal Protective 17 Service, the Secretary of Homeland Security, the Director 18 of the Office of Management and Budget, and any other 19 relevant entities, as determined by the Administrator, 20 shall carry out a Government-wide study examining op- 21 tions to assist agencies (as defined in section 551 of title 22 5, United States Code) to produce a security assessment 23 process for high-security leased adjacent space before en- 24 tering into a lease or novation agreement with a covered 25 9 † S 1868 ES entity for the purposes of accommodating a Federal ten- 1 ant located in a high-security leased space. 2 (b) CONTENTS.—The study required under sub- 3 section (a)— 4 (1) shall evaluate how to produce a security as- 5 sessment process that includes a process for assess- 6 ing the threat level of each occupancy of a high-se- 7 curity leased adjacent space, including through— 8 (A) site-visits; 9 (B) interviews; and 10 (C) any other relevant activities deter- 11 mined necessary by the Director of the Federal 12 Protective Service; and 13 (2) may include a process for collecting and 14 using information on each immediate owner, highest- 15 level owner, or beneficial owner of a covered entity 16 that seeks to enter into a lease with a Federal lessee 17 for a high-security leased adjacent space, includ- 18 ing— 19 (A) name; 20 (B) current residential or business street 21 address; and 22 (C) an identifying number or document 23 that verifies identity as a United States person, 24 a foreign person, or a foreign entity. 25 10 † S 1868 ES (c) WORKING GROUP.— 1 (1) IN GENERAL.—Not later than 90 days after 2 the date of enactment of this Act, the Administrator, 3 in coordination with the Director of Federal Protec- 4 tive Service, the Secretary of Homeland Security, 5 the Director of the Office of Management and Budg- 6 et, and any other relevant entities, as determined by 7 the Administrator, shall establish a working group 8 to assist in the carrying out of the study required 9 under subsection (a). 10 (2) NO COMPENSATION.—A member of the 11 working group established under paragraph (1) shall 12 receive no compensation as a result of serving on the 13 working group. 14 (3) SUNSET.—The working group established 15 under paragraph (1) shall terminate on the date on 16 which the report required under subsection (f) is 17 submitted. 18 (d) PROTECTION OF INFORMATION.—The Adminis- 19 trator shall ensure that any information collected pursu- 20 ant to the study required under subsection (a) shall not 21 be made available to the public. 22 (e) LIMITATION.—Nothing in this section requires an 23 entity located in the United States to provide information 24 11 † S 1868 ES requested pursuant to the study required under subsection 1 (a). 2 (f) REPORT.—Not later than 2 years after the date 3 of enactment of this Act, the Administrator, in coordina- 4 tion with the Director of Federal Protective Service, the 5 Secretary of Homeland Security, the Director of the Office 6 of Management and Budget, and any other relevant enti- 7 ties, as determined by the Administrator, shall submit to 8 the Committee on Homeland Security and Governmental 9 Affairs of the Senate and the Committee on Transpor- 10 tation and Infrastructure of the House of Representatives 11 a report describing— 12 (1) the results of the study required under sub- 13 section (a); and 14 (2) how all applicable privacy laws and rights 15 relating to the First and Fourth Amendments to the 16 Constitution of the United States would be upheld 17 and followed in— 18 (A) the security assessment process de- 19 scribed in paragraph (1) of subsection (b); and 20 (B) the information collection process de- 21 scribed in paragraph (2) of that subsection. 22 (g) LIMITATION.—Nothing in this section authorizes 23 a Federal entity to mandate information gathering unless 24 specifically authorized by law. 25 12 † S 1868 ES (h) PROHIBITION.—No information collected pursu- 1 ant the security assessment process described in sub- 2 section (b)(1) may be used for law enforcement purposes. 3 (i) NO ADDITIONAL FUNDING.—No additional funds 4 are authorized to be appropriated to carry out this section. 5 Passed the Senate December 5, 2024. Attest: Secretary. 118TH CONGRESS 1ST SESSION S. 1868 AN ACT To require an interagency study to produce a secu- rity assessment process on adjacent space to high-security leased space to accommodate a Federal agency, and for other purposes.