TH ST CONGRESS SESSION S. 686 - GovInfo

II

118TH CONGRESS 1ST SESSION

S. 686

To authorize the Secretary of Commerce to review and prohibit certain transactions between persons in the United States and foreign adversaries, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MARCH 7, 2023 Mr. WARNER (for himself, Mr. THUNE, Ms. BALDWIN, Mrs. FISCHER, Mr.

MANCHIN, Mr. MORAN, Mr. BENNET, Mr. SULLIVAN, Mrs. GILLIBRAND, Ms. COLLINS, Mr. HEINRICH, Mr. ROMNEY, and Mrs. CAPITO) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation

A BILL

To authorize the Secretary of Commerce to review and prohibit certain transactions between persons in the United States and foreign adversaries, and for other purposes.

1

Be it enacted by the Senate and House of Representa-

2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4

This Act may be cited as the ``Restricting the Emer-

5 gence of Security Threats that Risk Information and Com-

6 munications Technology Act'' or the ``RESTRICT Act''.

7 SEC. 2. DEFINITIONS.

8

In this Act:

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1

(1) CLASSIFIED NATIONAL SECURITY INFORMA-

2

TION.--The term ``classified national security infor-

3

mation'' means information that has been deter-

4

mined pursuant to Executive Order 13526 (50

5

U.S.C. 3161 note; relating to classified national se-

6

curity information) or any predecessor or successor

7

order, to require protection against unauthorized

8

disclosure, and is marked to indicate such classified

9

status if in documentary form.

10

(2) CONTROLLING HOLDING.--The term ``con-

11

trolling holding'' means a holding with the power,

12

whether direct or indirect and whether exercised or

13

not exercised, to determine, direct, or decide impor-

14

tant matters affecting an entity.

15

(3) COVERED HOLDING.--The term ``covered

16

holding''--

17

(A) means, regardless of how or when such

18

holding was or will be obtained or otherwise

19

come to have been held, a controlling holding

20

held, directly or indirectly, in an ICTS covered

21

holding entity by--

22

(i) a foreign adversary;

23

(ii) an entity subject to the jurisdic-

24

tion of, or organized under the laws of, a

25

foreign adversary; or

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(iii) an entity owned, directed, or con-

2

trolled by an entity described in subpara-

3

graphs (i) or (ii); and

4

(B) includes any other holding, the struc-

5

ture of which is designed or intended to evade

6

or circumvent the application of this Act, sub-

7

ject to regulations prescribed by the Secretary.

8

(4) COVERED TRANSACTION.--

9

(A) IN GENERAL.--The term ``covered

10

transaction'' means a transaction in which an

11

entity described in subparagraph (B) has any

12

interest (including through an interest in a con-

13

tract for the provision of the technology or serv-

14

ice), or any class of such transactions.

15

(B) COVERED ENTITIES.--The entities de-

16

scribed in this subparagraph are:

17

(i) a foreign adversary;

18

(ii) an entity subject to the jurisdic-

19

tion of, or organized under the laws of, a

20

foreign adversary; and

21

(iii) an entity owned, directed, or con-

22

trolled by a person described in subpara-

23

graph (A) or (B).

24

(C) NON-EVASION.--The term ``covered

25

transaction'' includes any other transaction, the

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structure of which is designed or intended to

2

evade or circumvent the application of this Act,

3

subject to regulations prescribed by the Sec-

4

retary.

5

(D) TIMING.--The term ``covered trans-

6

action'' includes a current, past, or potential fu-

7

ture transaction.

8

(5) CRITICAL INFRASTRUCTURE.--The term

9

``critical infrastructure'' has the meaning given the

10

term in section 1016(e) of the USA PATRIOT Act

11

(42 U.S.C. 5195c(e)).

12

(6) ENTITY.--The term ``entity'' means any of

13

the following, whether established in the United

14

States or outside of the United States:

15

(A) A firm.

16

(B) A government, government agency,

17

government department, or government com-

18

mission.

19

(C) A labor union.

20

(D) A fraternal or social organization.

21

(E) A partnership.

22

(F) A trust.

23

(G) A joint venture.

24

(H) A corporation.

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(I) A group, subgroup, or other association

2

or organization whether or not organized for

3

profit.

4

(7) EXECUTIVE DEPARTMENT AND AGENCY.--

5

The term ``executive department and agency'' has

6

the meaning given the term ``Executive agency'' in

7

section 105 of title 5, United States Code.

8

(8) FOREIGN ADVERSARY.--The term ``foreign

9

adversary''--

10

(A) means any foreign government or re-

11

gime, determined by the Secretary, pursuant to

12

sections 3 and 5, to have engaged in a long-

13

term pattern or serious instances of conduct

14

significantly adverse to the national security of

15

the United States or the security and safety of

16

United States persons; and

17

(B) includes, unless removed by the Sec-

18

retary pursuant to section 6--

19

(i) the People's Republic of China, in-

20

cluding the Hong Kong Special Adminis-

21

trative Region and Macao Special Adminis-

22

trative Region;

23

(ii) the Republic of Cuba;

24

(iii) the Islamic Republic of Iran;

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