[Senate Report 117-282]
[From the U.S. Government Publishing Office]
Calendar No. 681
117th Congress } { Report
SENATE
2d Session } { 117-282
_______________________________________________________________________
SAFEGUARDING AMERICAN INNOVATION ACT
__________
R E P O R T
of the
COMMITTEE ON HOMELAND SECURITY AND
GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
to accompany
S. 1351
TO STRENGTHEN THE SECURITY AND INTEGRITY OF THE
UNITED STATES SCIENTIFIC AND RESEARCH ENTERPRISE
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
December 19, 2022.--Ordered to be printed
_________
U.S. GOVERNMENT PUBLISHING OFFICE
39-010 WASHINGTON : 2023
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware ROB PORTMAN, Ohio
MAGGIE HASSAN, New Hampshire RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona RAND PAUL, Kentucky
JACKY ROSEN, Nevada JAMES LANKFORD, Oklahoma
ALEX PADILLA, California MITT ROMNEY, Utah
JON OSSOFF, Georgia RICK SCOTT, Florida
JOSH HAWLEY, Missouri
David M. Weinberg, Staff Director
Zachary I. Schram, Chief Counsel
Christopher J. Mulkins, Director of Homeland Security
Benjamin J. Schubert, Professional Staff Member
Pamela Thiessen, Minority Staff Director
Sam J. Mulopulos, Minority Deputy Staff Director
Ryan L. Giles, Minority Counsel
Laura W. Kilbride, Chief Clerk
Calendar No. 681
117th Congress } { Report
SENATE
2d Session } { 117-282
======================================================================
SAFEGUARDING AMERICAN INNOVATION ACT
_______
December 19, 2022.--Ordered to be printed
_______
Mr. Peters, from the Committee on Homeland Security and Governmental
Affairs, submitted the following
R E P O R T
[To accompany S. 1351]
The Committee on Homeland Security and Governmental
Affairs, to which was referred the bill (S. 1351), to
strengthen the security and integrity of the United States
scientific and research enterprise, having considered the same,
reports favorably thereon without amendment and recommends that
the bill do pass.
CONTENTS
Page
I. Purpose and Summary............................................... 1
II. Background and Need for the Legislation........................... 2
III.Legislative History............................................... 3
IV. Section-by-Section Analysis of the Bill, as Reported.............. 4
V. Evaluation of Regulatory Impact................................... 7
VI. Changes in Existing Law Made by the Bill, as Reported............. 7
I. Purpose and Summary
S. 1351, the Safeguarding American Innovation Act, aims to
protect U.S. research and intellectual property from global
competitors and improves the U.S.' ability to combat threats to
the American science and research enterprise. The bill
establishes a council within the Office of Management and
Budget (OMB) to update and standardize the grant application
process across the federal government and to assess, inform,
and protect against security risks to the U.S. research
community. Further, the bill criminalizes federal grant
application fraud in instances in which the applicant knowingly
falsifes or misrepresents material information on a grant
application or omits information about outside and foreign
compensation. Additionally, the bill authorizes the Department
of State (State Department) to deny visa applications of known
or likely bad actors seeking to travel to the U.S. to engage in
espionage or other activity to acquire export-controlled
technologies. The bill also requires that the sponsors of
foreign researchers provide information on the extent of access
the researcher will have to export-controlled technology on
visa applications and to develop a plan to prevent the
unauthorized release of export controlled technology. Finally,
the bill reduces the minimum reporting requirements of colleges
and universities for foreign gifts and contracts from $250,000
to $50,000.
II. Background and Need for the Legislation
The diversity and independence of U.S. research and
development is vital to the innovative intellectual products
that define American academia. Proactively promoting and
protecting U.S. research, development, and intellectual
property is a key element of maintaining the nation's national
security interests. While the U.S. has historically been an
international leader in research and development (R&D), the
U.S. share of global R&D has dropped significantly in recent
decades.\1\ In 1960, the U.S. accounted for 69 percent of
global R&D, and the federal government funded twice as much R&D
compared to U.S. Businesses.\2\ This dominance in the R&D space
is now on a decline--between 1960 and 2019, the U.S. share of
global R&D fell to 30 percent, and the federal government's
share of R&D fell from 65 percent to 21 percent.\3\ According
to an analysis by the Congressional Research Service, ``this
decline resulted primarily from more rapid increases in the R&D
of other nations (public and private) and partially from
increases in U.S. business R&D.''\4\ Maintaining and restoring
U.S. global R&D shares is both an academic and national
security priority.
---------------------------------------------------------------------------
\1\Congressional Research Services, The Global Research and
Development Landscape and Implications for the Department of Defense
(R45403) (June 2021).
\2\Id.
\3\Id.
\4\Id.
---------------------------------------------------------------------------
Another concern pertaining to U.S. R&D is the theft of
intellectual property by foreign researchers and entities, as
well as conflicts of interest stemming from the participation
in foreign talent recruitment programs. There have been efforts
by some foreign governments to illicitly acquire U.S. research
and technology by utilizing U.S.-based foreign nationals at
universities or recruiting American scientists to covertly
conduct research programs on their behalf.\5\ In 2019, the
Committee's Permanent Subcommittee on Investigations (PSI)
staff released a staff report entitled, ``Threats to the U.S.
Research Enterprise: China's Talent Recruitment Plans,'' which
found that China's talent recruitment programs, like the
Thousand Talents Plan, incentivize overseas researchers,
academics, and professionals to provide the Chinese government
with access and information to foreign technology.\6\ In
response to these threats, the Trump Administration issued a
National Security Presidential Memorandum (NSPM-33) in January
2021 to ``strengthen protections of United States Government-
supported R&D against foreign government interference and
exploitation while maintaining an open environment to foster
research discoveries and innovation that benefit our nation and
the world.''\7\ In January 2022, the Biden Administration,
through the National Science and Technology Council (NSTC),
released implementation guidance for federal agencies of NSPM-
33.\8\ However, there continues to be a lack of sufficient
interagency coordination of research security programs.\9\
---------------------------------------------------------------------------
\5\The White House, Clear Rules for Research Security and
Researcher Responsibility (Aug. 10, 2021) (https://www.whitehouse.gov/
ostp/news-updates/2021/08/10/clear-rules-for-research-
security-and-researcher-responsibility/).
\6\Senate Permanent Subcommittee on Investigations, Threats to the
U.S. Research Enterprise: China's Talent Recruitment Plans (Nov. 2019).
\7\The White House, Presidential Memorandum on United States
Government-Supported Research and Development National Security Policy
(NSPM-33) (Jan. 14, 2021).
\8\National Science and Technology Council, Guidance for
Implementing National Security Presidential Memorandum 33 (NSPM-33) on
National Security Strategy for United States Government-Supported
Research and Development (Jan. 2022) (https://www.whitehouse.gov/wp-
content/uploads/2022/01/010422-NSPM-33-Implementation-Guidance.pdf).
\9\U.S. scientific research agencies tighten foreign affiliation
rules, Roll Call (Feb. 15, 2022) (https://rollcall.com/2022/02/15/u-s-
scientific-research-agencies-tighten-foreign-affiliation-rules/).
---------------------------------------------------------------------------
The Safeguarding American Innovation Act seeks to fill this
coordination gap by imposing requirements to improve and
standardize the federal grant application processes, establish
interagency coordination to address threats, increase reporting
for relevant information, and prevent known, or likely bad
actors from acquiring U.S. research for nefarious purposes.
Significantly, this bill establishes a Federal Research
Security Council within OMB to develop federally funded
research and grant making policy and management guidance to
protect the national and economic security interests of the
U.S. Through a streamlined and standardized grant application
processes, the federal government will be able to better manage
grants and ensure that taxpayer dollars are provided
appropriately and efficiently while ensuring that institutions
and departments that provide research grants, such as the
Departments of Defense, Energy, Agriculture, Education, and the
National Aeronautics and Space Administration (NASA) are
applying grant standards and scrutiny in a uniform manner. This
bill will help ensure that the federal government can protect
intellectual property rights without undermining the openness
and global collaboration necessary for innovative scientific
discovery.
III. Legislative History
Senator Portman (R-OH) introduced S. 1351 on April 22,
2021, with Senators Carper (D-DE), Rubio (R-FL), Coons (D-DE),
Barrasso (R-WY), Cortez Masto (D-NV), Blackburn (R-TN), Hassan
(D-NH), Grassley (R-IA), Manchin (D-WV), Hawley (R-MO), Shaheen
(D-NH), Johnson (R-WI), Lankford (R-OK), Risch (R-ID), Romney
(R-UT), Scott (R-FL), and Tillis (R-NC). The bill was referred
to the Senate Committee on Homeland Security and Governmental
Affairs. The Committee considered S. 1351 at a business meeting
on May 12, 2021. The Committee ordered the bill reported
favorably by voice vote with Senators Sinema and Padilla
recorded as voting ``no.'' Senators present for the voice vote
were Peters, Hassan, Sinema, Rosen, Padilla, Ossoff, Portman,
Johnson, Paul, Lankford, Romney, Scott, and Hawley.
IV. Section-by-Section Analysis of the Bill, as Reported
Section 1. Short title
This section designates the name of the bill as the
``Safeguarding American Innovation Act.''
Section 2. Definitions
This section defines the terms ``federal science agency,''
``research and development,'' ``development,'' ``experimental
development,'' and ``research.''
Section 3. Federal Research Security Council
Subsection (a) amends Subtitle V of title 31, United States
Code, by establishing a new chapter 79 creating the Federal
Research Security Council.
Section 7901 defines the terms ``appropriate congressional
committees,'' ``council,'' ``executive agency,'' ``federal
research security risk,'' ``insider,'' ``insider threat,''
``research and development,'' and ``United States research
community.''
Section 7902 establishes the Federal Research Security
Council in OMB to develop policy on federally funded research
and development grant making policy and management guidance to
protect the national and economic security interests of the
U.S. This section also outlines the membership of the Council
and the designation and functions of the Council's lead
representatives of each participating agency. This section also
requires the Director of OMB to designate a senior-level
official from OMB to serve as the chairperson of the Council,
and delineates the functions of the chairperson. Lastly, this
section designates the lead science advisor to the council as
the Director of the Office of Science and Technology Policy
(OSTP), and the lead security advisor as the Director of the
National Counterintelligence and Security Center, and requires
the council to meet no later than 60 days after the enactment
of this legislation and at least quarterly thereafter.
Section 7903, subsection (a) defines the terms
``implementing'' and ``uniform application process.
Section 7903, subsection (b) outlines the functions and
authorities of the Council, including the development of
uniform grant application processes; the development and
implementation of reporting processes; sharing information with
stakeholders to mitigate security risks; the identification of
an executive agency partners for various purposes; and
identification and issuance of guidance regarding insider
threat detection and mitigation.
Section 7903, subsection (c) establishes certain
requirements as the Council develops the uniform application
process for federal research and development grants.
Section 7903, subsection (d) establishes requirements for
information-sharing criteria with respect to federal research
security risks.
Section 7903, subsection (e) establishes the requirements
that the Council must consider as they identify or develop
insider threat program guidance.
Section 7903, subsection (f) requires the Council in
conjunction with the lead security advisor to issue warnings of
potential risks and vulnerabilities in international scientific
cooperation that may undermine the integrity and security of
the U.S. research community or place at risk any federally
funded research and development.
Section 7903, subsection (g) requires that the interagency
working group established under section 1746 of the National
Defense Authorization Act for Fiscal Year 2020 (Public Law 116-
92) be a working group under the Council. The section further
requires the Council to use any findings or work product of the
working group, and allows the Council to establish a program
office and any committees, working groups, or other constituent
bodies the Council deems appropriate, to carry out its
functions.
Section 7903, subsection (h) requires the Interagency
Suspension and Debarment Committee to provide quarterly reports
to the Council in order to reduce federal research security
risk.
Section 7903, subsection (i) provides that nothing in
section 7903 may be construed to alter or diminish the
authority of any federal agency or to alter any procedural
requirements or remedies that were in place before the date of
enactment of new Chapter 79.
Section 7904 requires the Council to develop a strategic
plan within 180 days of enactment of this legislation that
addresses federal research security risks and managing those
risks. The plan will include information-sharing requirements
for risks; identifications of authorities and best practices
for addressing risks; recommendations to mitigate risks; and
evaluations and plans for implementing new policies on existing
federal grant processes, engaging with the private sector and
other nongovernmental stakeholders to address those risks, and
identifying, assessing, mitigating, and vetting federal
research security risks. This section also requires the
strategic plan be submitted to Congress 7 calendar days after
the completion of the strategic plan.
Section 7905 requires the Chairperson of the Council to
submit a report on the activities and progress of the Council
to Congress no later than December 15 each year that describes
the activities of the Council during the preceding fiscal year,
and the progress made toward implementing the strategic plan
required by section 7904 after the plan has been submitted to
Congress.
Section 7906 requires all heads of executive agencies on
the Council to assess, avoid, and mitigate risks to federally-
funded research and align agency initiatives related to
research grant policies with Council guidance. It also directs
all heads of executive agencies on the Council to develop risk
management strategies, integrate risk management practices,
share information on federal research security risks as well as
report on effectiveness of the federal research security risk
management strategy.
Subsection (b) is a clerical amendment to change the table
of chapters in title 31 of United States Code to reflect the
new chapter 79.
Section 4. Federal grant application fraud
Subsection (a) amends Chapter 47 of title 18 of the United
States Code by adding a new section 1041 that criminalizes
Federal grant application fraud.
Section 1041, subsection (a) establishes definitions for
terms ``federal agency,'' ``federal grant,'' ``federal grant
application,'' ``foreign compensation,'' ``foreign
government,'' ``foreign government institution,'' ``foreign
public enterprise,'' ``law enforcement agency,'' and ``outside
compensation in the section.
Section 1041, subsection (b) makes it unlawful for any
individual to knowingly prepare or submit Federal grant
applications that contains material misrepresentations, false
statements, or omits receipt of outside or foreign
compensation.
Section 1041, subsection (c) exempts lawful investigative,
protective, or intelligence activities from the prohibiton in
subsection (b).
Section 1041, subsection (d) sets penalties for violators
of subsection (b) including fines, or at most 5-year
imprisonment, or both. Additionally, violators will be
prohibited from receiving Federal grants for five years
beginning when a sentence is imposed.
Subsection (b) amends the table of sections for chapter 47
of title 18, United States Code to reflect new section 1041.
Section 5. Restricting the acquisition of goods, technologies, and
sensitive information to certain aliens
Subsection (a) amends Section 212(a)(3)(A)(i) of the
Immigration and Nationality Act (8 U.S.C.
Sec. 1182(a)(3)(A)(i)) to authorize consular officers to deny
visas to aliens seeking to travel to the U.S. to engage in
espionage or activity to access export-controlled technologies
if that access would be contrary to a national or economic
security interest of the U.S.
Subsection (b) establishes factors for determining visa
denials under the amended Section 212(a)(3)(A)(i) of the
Immigration and Nationality Act. Further, the subsection
directs the State Department to seek interagency assistance for
establishing visa-denial criteria and to use machine-readable
documents for visa applications.
Subsection (c) requires the State Department, in
coordination with other federal departments and agencies, to
submit a report to Congress that details the criteria developed
in this section and the number of inadmissible individuals
referenced in Section 212(a)(3)(A)(i) of the Immigration and
Nationality Act.
Subsection (d) establishes that each annual report should
be unclassified to the extent possible and include a classified
appendix if necessary.
Subsection (e) requires the Secretary of State to submit a
report to Congress within 45 days of enactment of this
legislation regarding implementation of this section.
Section 6. Limitations on educational and cultural exchange programs
This section amends Section 102(b)(5) of the Mutual
Educational and Cultural Exchange Act of 1961 (22 U.S.C.
Sec. 2452(b)(5)) to require exchange visa sponsors to provide
the State Department with information on the exchange visitor's
access to export-controlled technologies through research,
lectures, course work, conferences, and more. Additionally,
this section requires visa sponsors to provide the State
Department plans to mitigate unauthorized access to export-
controlled technologies. Lastly, this section requires visa
sponsors to demonstrate to the appropriate satisfaction of the
Secretary of State, that they have received appropriate
authorization from the appropriate Federal agency to allow the
exchange visitor to access export-controlled technologies.
Section 7. Amendments to disclosures of foreign gifts
This section amends section 117 of the Higher Education Act
of 1965 (20 U.S.C. Sec. 1011f) to reduce the required reporting
threshold for foreign gifts and contracts made to colleges and
universities from $250,000 to $50,000. Further, this section
allows the Secretary of Education to permit institutions to
revise and update reports previously filed to account for the
new minimum reporting requirement. The Secretary of Education
is also required by this section to make disclosure reports
publicly available in an electronic format. The Secretary of
Education is also given the authority to fine institutions that
have failed to disclose receipts of foreign gifts of at least
$50,000 for three years in a row. Additionally, this section
requires the Secretary of Education to issue regulations using
the negotiated rulemaking procedure for instructions related to
reporting requirements. Lastly, this section requires that
tuitions and scholarships not be considered a gift or contract
under this section.
V. Evaluation of Regulatory Impact
Pursuant to the requirements of paragraph 11(b) of rule
XXVI of the Standing Rules of the Senate, the Committee has
considered the regulatory impact of this bill and determined
that the bill will have no regulatory impact within the meaning
of the rules. The Committee agrees with the Congressional
Budget Office's statement that the bill contains no
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform bill (UMRA) and would impose no costs
on state, local, or tribal governments.
VI. Changes in Existing Law Made by the Bill, as Reported
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill, as reported, are shown as follows: (existing law
proposed to be omitted is enclosed in brackets, new matter is
printed in italic, and existing law in which no change is
proposed is shown in roman):
UNITED STATES CODE
* * * * * * *
TITLE 8--ALIENS AND NATIONALITY
* * * * * * *
CHAPTER 12--IMMIGRATION AND NATIONALITY
* * * * * * *
Subchapter II--Immigration
* * * * * * *
PART II--ADMISSION QUALIFICATIONS FOR ALIENS; TRAVEL CONTROL OF
CITIZENS AND ALIENS
* * * * * * *
SEC. 1182. INADMISSABLE ALIENS.
(a) * * *
(1) * * *
(2) * * *
(3) Security And Related Grounds.--
(A) In general.--Any alien who a consular
officer or the Attorney General knows, or has
reasonable ground to believe, seeks to enter
the United States to engage solely,
principally, or incidentally in--
[(i) any activity (I) to violate any
law of the United States relating to
espionage or sabotage or (II) to
violate or evade any law prohibiting
the export from the United States of
goods, technology, or sensitive
information,
[(ii) any other unlawful activity, or
[(iii) any activity a purpose of
which is the opposition to, or the
control or overthrow of, the Government
of the United States by force,
violence, or other unlawful means,
[is inadmissible.]
(i) any activity--
(I) to violate any law of the
United States relating to
espionage or sabotage;
(II) to violate or evade any
law prohibiting the export from
the United States of goods,
technologies, or sensitive
information; or
(III) to acquire export-
controlled goods, technologies,
or sensitive information
through any exclusions for
items normally subject to
export controls if the
Secretary of State has
determined that the acquisition
of those goods, technologies,
or sensitive information by
that alien would be contrary to
an articulable national
security (including economic
security) interest of the
United States;
* * * * * * *
TITLE 18--CRIMES AND CRIMINAL PROCEDURE
* * * * * * *
PART I--CRIMES
* * * * * * *
CHAPTER 47--FRAUD AND FALSE STATEMENTS
Sec.
1001. Statements or entries personally.
* * * * * * *
1041. Federal grant application fraud.
* * * * * * *
SEC. 1041. FEDERAL GRANT APPLICATION FRAUD.
(a) Definitions.--In this section:
(1) Federal agency.--The term `Federal agency' has
the meaning given the term `agency' in section 551 of
title 5, United States Code.
(2) Federal grant.--The term `Federal grant'--
(A) means a grant awarded by a Federal
agency;
(B) includes a subgrant awarded by a non-
Federal entity to carry out a Federal grant
program; and
(C) does not include--
(i) direct United States Government
cash assistance to an individual;
(ii) a subsidy;
(iii) a loan;
(iv) a loan guarantee; or
(v) insurance.
(3) Federal grant application.--The term `Federal
grant application' means an application for a Federal
grant.
(4) Foreign compensation.--The term `foreign
compensation' means a title, monetary compensation,
access to a laboratory or other resource, or other
benefit received from--
(A) a foreign government;
(B) a foreign government institution; or
(C) a foreign public enterprise.
(5) Foreign government.--The term `foreign
government' includes a person acting or purporting to
act on behalf of--
(A) a faction, party, department, agency,
bureau, subnational administrative entity, or
military of a foreign country; or
(B) a foreign government or a person
purporting to act as a foreign government,
regardless of whether the United States
recognizes the government.
(6) Foreign government institution.--The term
`foreign government institution' means a foreign entity
owned by, subject to the control of, or subject to
regulation by a foreign government.
(7) Foreign public enterprise.--The term `foreign
public enterprise' means an enterprise over which a
foreign government directly or indirectly exercises a
dominant influence.
(8) Law enforcement agency.--The term `law
enforcement agency'--
(A) means a Federal, State, local, or Tribal
law enforcement agency; and
(B) includes--
(i) the Office of Inspector General
of an establishment (as defined in
section 12 of the Inspector General Act
of 1978 (5 U.S.C. App.)) or a
designated Federal entity (as defined
in section 8G(a) of the Inspector
General Act of 1978 (5 U.S.C. App.));
and
(ii) the Office of Inspector General,
or similar office, of a State or unit
of local government.
(9) Outside compensation.--The term `outside
compensation' means any compensation, resource, or
support regardless of monetary value made available to
the applicant in support of or related to any research
endeavor, including, but not limited to, a title,
research grant, cooperative agreement, contract,
institutional award, access to a laboratory, or other
resource, including, but not limited to, materials,
travel compensation, or work incentives.
(b) Prohibition.--It shall be unlawful for any individual
to knowingly--
(1) prepare or submit a Federal grant application
that fails to disclose the receipt of any outside
compensation, including foreign compensation, by the
individual;
(2) forge, counterfeit, or otherwise falsify a
document for the purpose of obtaining a Federal grant;
or
(3) prepare, submit, or assist in the preparation or
submission of a Federal grant application or document
in connection with a Federal grant application that--
(A) contains a false statement;
(B) contains a material misrepresentation;
(C) has no basis in law or fact; or
(D) fails to disclose a material fact.
(c) Exception.--Subsection (b) does not apply to an
activity--
(1) carried out in connection with a lawfully
authorized investigative, protective, or intelligence
activity of--
(A) a law enforcement agency; or
(B) a Federal intelligence agency; or
(2) authorized under chapter 224.
(d) Penalty.--Any individual who violates subsection (b)--
(1) shall be fined in accordance with this title,
imprisoned for not more than 5 years, or both; and
(2) shall be prohibited from receiving a Federal
grant during the 5-year period beginning on the date on
which a sentence is imposed on the individual under
paragraph (1).
* * * * * * *
TITLE 20--EDUCATION
* * * * * * *
CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
* * * * * * *
Subchapter I--General Provisions
* * * * * * *
PART B--ADDITIONAL GENERAL PROVISIONS
* * * * * * *
SEC. 1011F. DISCLOSURES OF FOREIGN GIFTS.
[(a) Disclosure Report.--Whenever any institution is owned
or controlled by a foreign source or receives a gift from or
enters into a contract with a foreign source, the value of
which is $250,000 or more, considered alone or in combination
with all other gifts from or contracts with that foreign source
within a calendar year, the institution shall file a disclosure
report with the Secretary on January 31 or July 31, whichever
is sooner.]
(a) Disclosure Report.--
(1) In general.--An institution shall file a
disclosure report with the Secretary not later than
March 31 occurring after--
(A) the calendar year in which a foreign
source gains ownership of, or control over, the
institution; or
(B) the calendar year in which the
institution receives a gift from, or enters
into a contract with, a foreign source, the
value of which is $50,000 or more, considered
alone or in combination with all other gifts
from or contracts with that foreign source
within a calendar year.
(2) Revisions; updates.--The Secretary shall permit
institutions to revise and update disclosure reports
previously filed to ensure accuracy, compliance, and
the ability to cure.
[(b) Contents of report.--Each report to the Secretary
required by this section shall contain the following:
[(1) For gifts received from or contracts entered
into with a foreign source other than a foreign
government, the aggregate dollar amount of such gifts
and contracts attributable to a particular country. The
country to which a gift is attributable is the country
of citizenship, or if unknown, the principal residence
for a foreign source who is a natural person, and the
country of incorporation, or if unknown, the principal
place of business, for a foreign source which is a
legal entity.
[(2) For gifts received from or contracts entered
into with a foreign government, the aggregate amount of
such gifts and contracts received from each foreign
government.
[(3) In the case of an institution which is owned or
controlled by a foreign source, the identity of the
foreign source, the date on which the foreign source
assumed ownership or control, and any changes in
program or structure resulting from the change in
ownership or control.]
(b) Contents of Report.--Each report to the Secretary
required by this section shall contain the following:
(1) For gifts received from or contracts entered into
with a foreign source other than a foreign government,
the aggregate dollar amount of such gifts and contracts
attributable to a particular country and the legal or
formal name of the foreign source. The country to which
a gift is attributable is the country of citizenship,
or if unknown, the principal residence for a foreign
source who is a natural person, and the country of
incorporation, or if unknown, the principal place of
business, for a foreign source which is a legal entity.
(2) For gifts received from or contracts entered into
with a foreign government, the aggregate amount of such
gifts and contracts received from each foreign
government.
(3) In the case of an institution which is owned or
controlled by a foreign source, the identity of the
foreign source, the date on which the foreign source
assumed ownership or control, and any changes in
program or structure resulting from the change in
ownership or control.
(4) An assurance that the institution will maintain
true copies of gift and contract agreements subject to
the disclosure requirements under this section for at
least the duration of the agreement.
(5) An assurance that the institution will produce
true copies of gift and contract agreements subject to
the disclosure requirements under this section upon
request of the Secretary during a compliance audit or
other institutional investigation.
(c) * * *
(d) * * *
[(e) Public Inspection.--All disclosure reports required by
this section shall be public records open to inspection and
copying during business hours.]
(e) Public Inspection.--Not later than 30 days after
receiving a disclosure report under this section, the Secretary
shall make such report electronically available to the public
for downloading on a searchable database under which
institutions can be individually identified and compared.
(f) Enforcement.--
(1) * * *
(2) * * *
(3) Fines.--
(A) In general.--The Secretary may impose a
fine on any institution that repeatedly fails
to file a disclosure report for a receipt of a
gift from or contract with a foreign source in
accordance with subsection (a) in an amount
that is not more than 3 times the amount of the
gift or contract with the foreign source.
(B) Definition of repeatedly fails.--In this
paragraph, the term ``repeatedly fails'' means
that the institution failed to file disclosure
report for a receipt of a gift from or contract
with a foreign source in 3 consecutive years.
[(g) Regulations.--The Secretary may promulgate regulations
to carry out this section.]
(g) Rulemaking.--
(1) In general.--Not later than 1 year after the
enactment of the Safeguarding American Innovation Act,
the Secretary shall issue regulations to carry out this
section using the negotiated rulemaking procedure set
forth in section 492(b).
(2) Elements.--Regulations issued pursuant to
paragraph (1) shall--
(A) incorporate instructions for--
(i) reporting structured gifts and
contracts; and
(ii) reporting contracts that
balances the need for transparency,
while protecting the proprietary
information of institutes of higher
education; and
(B) clarify the definition of ``subunit'',
for purposes of subsection (i)(4)(C).
(h) Treatment of Tuition Payment.--A tuition and related
fees and expenses payment to an institution by, or a
scholarship from, a foreign source made on behalf of a student
enrolled at such institution shall not be considered a gift
from or contract with a foreign source under this section.
[(h)] (i) Definitions.--For the purposes of this section--
(1) * * *
(2) * * *
(3) the term ``gift'' means any gift of money [or
property], property, resources, or staff, including any
funds provided to the institution and used to pay, or
designated for the payment of, staff;
(4) * * *
(5) the term ``restricted or conditional gift or
contract'' means any endowment, gift, grant, contract,
award, present, or property of any kind which includes
provisions regarding--
(A) * * *
(B) the establishment of departments,
centers, institutes, instructional programs,
research or lecture programs, or new faculty
positions;
* * * * * * *
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
* * * * * * *
CHAPTER 23--MUTUAL EDUCATIONAL AND CULTURAL EXCHANGE PROGRAM
* * * * * * *
SEC. 2452. AUTHORIZATION OF ACTIVTIES.
(a) * * *
(b) Other Exchanges.--In furtherance of the purposes of
this chapter, the President is further authorized to provide
for--
(1) * * *
(2) * * *
(3) * * *
(4) * * *
(5) promoting and supporting medical, scientific,
cultural, and educational research and development[;]
by developing exchange programs for foreign researchers
and scientists, while protecting technologies regulated
by export control laws important to the national
security and economic interests of the United States,
including requiring sponsors--
(A) to disclose to the Department of State
whether an exchange visitor, as a primary part
of his or her exchange program, will have
released to them controlled technology or
technical data regulated by export control laws
at sponsor organizations through research
activities, lectures, course work, sponsor
employees, officers, agents, third parties at
which the sponsor places the exchange visitor,
volunteers, or other individuals or entities
associated with a sponsor's administration of
the exchange visitor program;
(B) to provide a plan to the Department of
State that establishes appropriate program
safeguards to prevent the unauthorized release
of controlled technology or technical data
regulated by export control laws at sponsor
organizations or through their employees,
officers, agents, third parties, volunteers, or
other individuals or entities associated with a
sponsor's administration of the exchange
visitor program; and
(C) to demonstrate, to the satisfaction of
the Secretary of State, that programs that will
release controlled technology or technical data
to an exchange visitor at the sponsor
organization through exchange visitor programs
have received appropriate authorization from
the Department of State, the Department of
Commerce, other cognizant Federal agency before
the sponsor releases controlled technology or
technical data;
* * * * * * *
TITLE 31--MONEY AND FINANCE
* * * * * * *
Subtitle V--General Assistance Administration
61. Program Information........................................... 6101
62. Consolidated Federal Funds Report............................. 6201
63. Using Procurement Contracts and Grant and Cooperative
Agreement..................................................... 6301
64. Data standards for grant reporting............................ 6401
65. Intergovernmental Cooperation................................. 6501
67. Federal payments.............................................. 6701
69. Payment for Entitlement Land.................................. 6901
71. Joint Funding Simplification.................................. 7101
73. Administering Block Grants.................................... 7301
75. Requirements for Single Audits................................ 7501
77. Access to information for debt collection..................... 7701
79. Federal Research Security Council............................. 7901
* * * * * * *
CHAPTER 79--FEDERAL RESEARCH SECURITY COUNCIL
* * * * * * *
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.
SEC. 7901. DEFINITIONS.
In this chapter:
(1) Appropriate congressional committees.--The term
`appropriate congressional committees' means--
(A) the Committee on Homeland Security and
Governmental Affairs of the Senate;
(B) the Committee on Commerce, Science, and
Transportation of the Senate;
(C) the Select Committee on Intelligence of
the Senate;
(D) the Committee on Foreign Relations of the
Senate;
(E) the Committee on Armed Services of the
Senate;
(F) the Committee on Health, Education,
Labor, and Pensions of the Senate;
(G) the Committee on Oversight and Reform of
the House of Representatives;
(H) the Committee on Homeland Security of the
House of Representatives;
(I) the Committee on Energy and Commerce of
the House of Representatives;
(J) the Permanent Select Committee on
Intelligence of the House of Representatives;
(K) the Committee on Foreign Affairs of the
House of Representatives;
(L) the Committee on Armed Services of the
House of Representatives; and
(M) the Committee on Education and Labor of
the House of Representatives.
(2) Council.--The term `Council' means the Federal
Research Security Council established under section
7902(a).
(3) Executive agency.--The term `Executive agency'
has the meaning given that term in section 105 of title
5.
(4) Federal research security risk.--The term
`Federal research security risk' means the risk posed
by malign state actors and other persons to the
security and integrity of research and development
conducted using grants awarded by Executive agencies.
(5) Insider.--The term `insider' means any person
with authorized access to any United States Government
resource, including personnel, facilities, information,
research, equipment, networks, or systems.
(6) Insider threat.--The term `insider threat' means
the threat that an insider will use his or her
authorized access (wittingly or unwittingly) to harm
the national and economic security of the United States
or negatively affect the integrity of a Federal
agency's normal processes, including damaging the
United States through espionage, sabotage, unauthorized
disclosure of national security information or non-
public information, or through the loss or degradation
of departmental resources, capabilities, and functions.
(7) Research and development.--
(A) In general.--The term `research and
development' means all research activities,
both basic and applied, and all development
activities.
(B) Development.--The term `development'
means experimental development.
(C) Experimental development.--The term
`experimental development' means creative and
systematic work, drawing upon knowledge gained
from research and practical experience, which--
(i) is directed toward the production
of new products or processes or
improving existing products or
processes; and
(ii) like research, will result in
gaining additional knowledge.
(D) Research.--The term `research'--
(i) means a systematic study directed
toward fuller scientific knowledge or
understanding of the subject studied;
and
(ii) includes activities involving
the training of individuals in research
techniques if such activities--
(I) utilize the same
facilities as other research
and development activities; and
(II) are not included in the
instruction function.
(8) United states research community.--The term
`United States research community' means--
(A) research and development centers of
Executive agencies;
(B) private research and development centers
in the United States, including for-profit and
nonprofit research institutes;
(C) research and development centers at
institutions of higher education (as defined in
section 101(a) of the Higher Education Act of
1965 (20 U.S.C. 1001(a)));
(D) research and development centers of
States, United States territories, Indian
tribes, and municipalities;
(E) government-owned, contractor-operated
United States Government research and
development centers; and
(F) any person conducting federally funded
research or receiving Federal research grant
funding.
SEC. 7902. FEDERAL RESEARCH SECURITY COUNCIL ESTABLISHMENT AND
MEMBERSHIP.
(a) Establishment.--There is established, in the Office of
Management and Budget, a Federal Research Security Council,
which shall develop federally funded research and development
grant making policy and management guidance to protect the
national and economic security interests of the United States.
(b) Membership.--
(1) In general.--The following agencies shall be
represented on the Council:
(A) The Office of Management and Budget.
(B) The Office of Science and Technology
Policy.
(C) The Department of Defense.
(D) The Department of Homeland Security.
(E) The Office of the Director of National
Intelligence, including the National
Counterintelligence and Security Center.
(F) The Department of Justice, including the
Federal Bureau of Investigation.
(G) The Department of Energy.
(H) The Department of Commerce, including the
National Institute of Standards and Technology.
(I) The Department of Health and Human
Services, including the National Institutes of
Health.
(J) The Department of State.
(K) The Department of Transportation.
(L) The National Aeronautics and Space
Administration.
(M) The National Science Foundation.
(N) The Department of Education.
(O) The Small Business Administration.
(P) The Council of Inspectors General on
Integrity and Efficiency.
(Q) Other Executive agencies, as determined
by the Chairperson of the Council.
(2) Lead representatives.--
(A) Designation.--Not later than 45 days
after the date of the enactment of this
chapter, the head of each agency represented on
the Council shall designate a representative of
that agency as the lead representative of the
agency on the Council.
(B) Functions.--The lead representative of an
agency designated under subparagraph (A) shall
ensure that appropriate personnel, including
leadership and subject matter experts of the
agency, are aware of the business of the
Council.
(c) Chairperson.--
(1) Designation.--Not later than 45 days after the
date of the enactment of this chapter, the Director of
the Office of Management and Budget shall designate a
senior-level official from the Office of Management and
Budget to serve as the Chairperson of the Council.
(2) Functions.--The Chairperson shall perform
functions that include--
(A) subject to subsection (d), developing a
schedule for meetings of the Council;
(B) designating Executive agencies to be
represented on the Council under subsection
(b)(1)(Q);
(C) in consultation with the lead
representative of each agency represented on
the Council, developing a charter for the
Council; and
(D) not later than 7 days after completion of
the charter, submitting the charter to the
appropriate congressional committees.
(3) Lead Science Advisor.--The Director of the Office
of Science and Technology Policy shall be the lead
science advisor to the Chairperson for purposes of this
chapter.
(4) Lead Security Advisor.--The Director of the
National Counterintelligence and Security Center shall
be the lead security advisor to the Chairperson for
purposes of this chapter.
(d) Meetings.--The Council shall meet not later than 60
days after the date of the enactment of this chapter and not
less frequently than quarterly thereafter.
SEC. 7903. FUNCTIONS AND AUTHORITIES.
(a) Definitions.--In this section:
(1) Implementing.--The term `implementing' means
working with the relevant Federal agencies, through
existing processes and procedures, to enable those
agencies to put in place and enforce the measures
described in this section.
(2) Uniform application process.--The term `uniform
application process' means a process employed by
Federal science agencies to maximize the collection of
information regarding applicants and applications, as
determined by the Council.
(b) In General.--The Chairperson of the Council shall
consider the missions and responsibilities of Council members
in determining the lead agencies for Council functions. The
Council shall perform the following functions:
(1) Developing and implementing, across all Executive
agencies that award research and development grants, a
uniform application process for grants in accordance
with subsection (c).
(2) Developing and implementing a uniform and regular
reporting process for identifying persons participating
in federally funded research and development or that
have access to nonpublic federally funded information,
data, research findings, and research and development
grant proposals.
(3) Identifying or developing criteria, in accordance
with subsection (d), for sharing and receiving
information with respect to Federal research security
risks in order to mitigate such risks with--
(A) members of the United States research
community; and
(B) other persons participating in federally
funded research and development.
(4) Identifying an appropriate Executive agency--
(A) to accept and protect information
submitted by Executive agencies and non-Federal
entities based on the processes established
under paragraphs (1) and (2); and
(B) to facilitate the sharing of information
received under subparagraph (A) to support, as
necessary and appropriate--
(i) oversight of federally funded
research and development;
(ii) criminal and civil
investigations of misappropriated
Federal funds, resources, and
information; and
(iii) counterintelligence
investigations.
(5) Identifying, as appropriate, Executive agencies
to provide--
(A) shared services, such as support for
conducting Federal research security risk
assessments, activities to mitigate such risks,
and oversight and investigations with respect
to grants awarded by Executive agencies; and
(B) common contract solutions to support
enhanced information collection and sharing and
the verification of the identities of persons
participating in federally funded research and
development.
(6) Identifying and issuing guidance, in accordance
with subsection (e) and in coordination with the
National Insider Threat Task Force established by
Executive Order 13587 (50 U.S.C. 3161 note) for
developing and implementing insider threat programs for
Executive agencies to deter, detect, and mitigate
insider threats, including the safeguarding of
sensitive information from exploitation, compromise, or
other unauthorized disclosure, taking into account risk
levels and the distinct needs, missions, and systems of
each such agency.
(7) Identifying and issuing guidance for developing
compliance and oversight programs for Executive
agencies to ensure that research and development grant
recipients accurately report conflicts of interest and
conflicts of commitment in accordance with subsection
(c)(1). Such programs shall include an assessment of--
(A) a grantee's support from foreign sources
and affiliations with foreign funding
institutions or laboratories; and
(B) the impact of such support and
affiliations on United States national security
and economic interests.
(8) Assessing and making recommendations with respect
to whether openly sharing certain types of federally
funded research and development is in the economic and
national security interests of the United States.
(9) Identifying and issuing guidance to the United
States research community, and other recipients of
Federal research and development funding, to ensure
that such institutions and recipients adopt existing
best practices to reduce the risk of misappropriation
of research data.
(10) Identifying and issuing guidance on additional
steps that may be necessary to address Federal research
security risks arising in the course of Executive
agencies providing shared services and common contract
solutions under paragraph (5)(B).
(11) Engaging with the United States research
community in performing the functions described in
paragraphs (1), (2), and (3) and with respect to issues
relating to Federal research security risks.
(12) Carrying out such other functions, as determined
by the Council, that are necessary to reduce Federal
research security risks.
(c) Requirements for Uniform Grant Application Process.--In
developing the uniform application process for Federal research
and development grants required under subsection (b)(1), the
Council shall--
(1) ensure that the process--
(A) requires principal investigators, co-
principal investigators, and senior personnel
associated with the proposed Federal research
or development grant project--
(i) to disclose biographical
information, all affiliations,
including any foreign military, foreign
government-related organizations, and
foreign-funded institutions, and all
current and pending support, including
from foreign institutions, foreign
governments, or foreign laboratories,
and all support received from foreign
sources; and
(ii) to certify the accuracy of the
required disclosures under penalty of
perjury; and
(B) uses a machine-readable application form
to assist in identifying fraud and ensuring the
eligibility of applicants;
(2) design the process--
(A) to reduce the administrative burden on
persons applying for Federal research and
development funding; and
(B) to promote information sharing across the
United States research community, while
safeguarding sensitive information; and
(3) complete the process not later than 1 year after
the date of the enactment of the Safeguarding American
Innovation Act.
(d) Requirements for Information Sharing Criteria.--In
identifying or developing criteria and procedures for sharing
information with respect to Federal research security risks
under subsection (b)(3), the Council shall ensure that such
criteria address, at a minimum--
(1) the information to be shared;
(2) the circumstances under which sharing is mandated
or voluntary;
(3) the circumstances under which it is appropriate
for an Executive agency to rely on information made
available through such sharing in exercising the
responsibilities and authorities of the agency under
applicable laws relating to the award of grants;
(4) the procedures for protecting intellectual
capital that may be present in such information; and
(5) appropriate privacy protections for persons
involved in Federal research and development.
(e) Requirements for Insider Threat Program Guidance.--In
identifying or developing guidance with respect to insider
threat programs under subsection (b)(6), the Council shall
ensure that such guidance provides for, at a minimum--
(1) such programs--
(A) to deter, detect, and mitigate insider
threats; and
(B) to leverage counterintelligence,
security, information assurance, and other
relevant functions and resources to identify
and counter insider threats;
(2) the development of an integrated capability to
monitor and audit information for the detection and
mitigation of insider threats, including through--
(A) monitoring user activity on computer
networks controlled by Executive agencies;
(B) providing employees of Executive agencies
with awareness training with respect to insider
threats and the responsibilities of employees
to report such threats;
(C) gathering information for a centralized
analysis, reporting, and response capability;
and
(D) information sharing to aid in tracking
the risk individuals may pose while moving
across programs and affiliations;
(3) the development and implementation of policies
and procedures under which the insider threat program
of an Executive agency accesses, shares, and integrates
information and data derived from offices within the
agency;
(4) the designation of senior officials with
authority to provide management, accountability, and
oversight of the insider threat program of an Executive
agency and to make resource recommendations to the
appropriate officials; and
(5) such additional guidance as is necessary to
reflect the distinct needs, missions, and systems of
each Executive agency.
(f) Issuance of Warnings Relating to Risks and
Vulnerabilities in International Scientific Cooperation.--
(1) In general.--The Council, in conjunction with the
lead security advisor under section 7902(c)(4), shall
establish a process for informing members of the United
States research community and the public, through the
issuance of warnings described in paragraph (2), of
potential risks and vulnerabilities in international
scientific cooperation that may undermine the integrity
and security of the United States research community or
place at risk any federally funded research and
development.
(2) Content.--A warning described in this paragraph
shall include, to the extent the Council considers
appropriate, a description of--
(A) activities by the national government,
local governments, research institutions, or
universities of a foreign country--
(i) to exploit, interfere, or
undermine research and development by
the United States research community;
or
(ii) to misappropriate scientific
knowledge resulting from federally
funded research and development;
(B) efforts by strategic competitors to
exploit the research enterprise of a foreign
country that may place at risk--
(i) the science and technology of
that foreign country; or
(ii) federally funded research and
development; and
(C) practices within the research enterprise
of a foreign country that do not adhere to the
United States scientific values of openness,
transparency, reciprocity, integrity, and
merit-based competition.
(g) Program Office and Committees.--The interagency working
group established under section 1746 of the National Defense
Authorization Act for Fiscal Year 2020 (Public Law 116-92)
shall be a working group under the Council performing duties
authorized under such section and as directed by the Council.
The Council shall use any findings or work product, existing or
forthcoming, by such working group. The Council may also
establish a program office and any committees, working groups,
or other constituent bodies the Council deems appropriate, in
its sole and unreviewable discretion, to carry out its
functions.
(h) Exclusion Orders.--To reduce Federal research security
risk, the Interagency Suspension and Debarment Committee shall
provide quarterly reports to the Council that detail--
(1) the number of ongoing investigations by Council
Members related to Federal research security that may
result, or have resulted, in agency pre-notice letters,
suspensions, proposed debarments, and debarments;
(2) Federal agencies' performance and compliance with
interagency suspensions and debarments;
(3) efforts by the Interagency Suspension and
Debarment Committee to mitigate Federal research
security risk;
(4) proposals for developing a unified Federal policy
on suspensions and debarments; and
(5) other current suspension and debarment related
issues.
(i) Savings Provision.--Nothing in this section may be
construed to alter or diminish the authority of any Federal
agency or to alter any procedural requirements or remedies that
were in place before the date of the enactment of this chapter.
SEC. 7904. STRATEGIC PLAN.
(a) In General.--Not later than 180 days after the date of
the enactment of this chapter, the Council shall develop a
strategic plan for addressing Federal research security risks
and for managing such risks, that includes--
(1) the criteria and processes required under section
7903(b), including a threshold and requirements for
sharing relevant information about such risks with all
Executive agencies and, as appropriate, with other
Federal entities, foreign governments, and non-Federal
entities;
(2) an identification of existing authorities for
addressing such risks;
(3) an identification and promulgation of best
practices and procedures, and an identification of
available resources, for Executive agencies to assess
and mitigate such risks;
(4) recommendations for any legislative, regulatory,
or other policy changes to improve efforts to address
such risks;
(5) recommendations for any legislative, regulatory,
or other policy changes to incentivize the adoption of
best practices for avoiding and mitigating Federal
research security risks by the United States research
community and key United States foreign research
partners;
(6) an evaluation of the effect of implementing new
policies or procedures on existing Federal grant
processes, regulations, and disclosures of conflicts of
interest and conflicts of commitment;
(7) a plan for engaging with Executive agencies, the
private sector, and other nongovernmental stakeholders
to address such risks and share information between
Executive agencies, the private sector, and
nongovernmental stakeholders; and
(8) a plan for identification, assessment,
mitigation, and vetting of Federal research security
risks.
(b) Submission to Congress.--Not later than 7 calendar days
after completion of the strategic plan required by subsection
(a), the Chairperson of the Council shall submit the plan to
the appropriate congressional committees.
SEC. 7905. ANNUAL REPORT.
Not later than December 15 of each year, the Chairperson of
the Council shall submit a report to the appropriate
congressional committees that describes--
(1) the activities of the Council during the
preceding fiscal year; and
(2) the progress made toward implementing the
strategic plan required under section 7904 after such
plan has been submitted to Congress.
SEC. 7906. REQUIREMENTS FOR EXECUTIVE AGENCIES.
(a) In General.--The head of each Executive agency on the
Council shall be responsible for--
(1) assessing Federal research security risks posed
by persons participating in federally funded research
and development;
(2) avoiding or mitigating such risks, as appropriate
and consistent with the standards, guidelines,
requirements, and practices identified by the Council
under section 7903(b);
(3) prioritizing Federal research security risk
assessments conducted under paragraph (1) based on the
applicability and relevance of the research and
development to the national security and economic
competitiveness of the United States; and
(4) ensuring that all agency initiatives impacting
federally funded research grant making policy and
management to protect the national and economic
security interests of the United States are integrated
with the activities of the Council.
(b) Inclusions.--The responsibility of the head of an
Executive agency for assessing Federal research security risk
described in subsection (a) includes--
(1) developing an overall Federal research security
risk management strategy and implementation plan and
policies and processes to guide and govern Federal
research security risk management activities by the
Executive agency;
(2) integrating Federal research security risk
management practices throughout the lifecycle of the
grant programs of the Executive agency;
(3) sharing relevant information with other Executive
agencies, as determined appropriate by the Council in a
manner consistent with section 7903; and
(4) reporting on the effectiveness of the Federal
research security risk management strategy of the
Executive agency consistent with guidance issued by the
Office of Management and Budget and the Council.
* * * * * * *
[all]