[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3997 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 3997

     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, and 
  Mr. Tillis) introduced the following bill; which was read twice and 
referred to the Committee on Homeland Security and Governmental Affairs

_______________________________________________________________________

                                 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Safeguarding 
American Innovation Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

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.

    In this Act:
            (1) Federal science agency.--The term ``Federal science 
        agency'' means any Federal department or agency to which more 
        than $100,000,000 in research and development funds were 
        appropriated for fiscal year 2020.
            (2) 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.

SEC. 3. FEDERAL RESEARCH SECURITY COUNCIL.

    (a) In General.--Subtitle V of title 31, United States Code, is 
amended by adding at the end the following:

            ``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) 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 
        (b).
            ``(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 (c), 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 (d) 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 (b)(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.
    ``(b) Requirements for Uniform Grant Application Process.--In 
developing the uniform application process for Federal research and 
development grants required under subsection (a)(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 and foreign government-related 
                        organizations, and all current and pending 
                        support, including affiliations with foreign 
                        funding institutions or 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.
    ``(c) Requirements for Information Sharing Criteria.--In 
identifying or developing criteria and procedures for sharing 
information with respect to Federal research security risks under 
subsection (a)(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.
    ``(d) Requirements for Insider Threat Program Guidance.--In 
identifying or developing guidance with respect to insider threat 
programs under subsection (a)(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.
    ``(e) 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.
    ``(f) 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 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.
    ``(g) 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.
``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(a), 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(a);
            ``(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.''.
    (b) Clerical Amendment.--The table of chapters at the beginning of 
title 31, United States Code, is amended by inserting after the item 
relating to chapter 77 the following new item:

``79. Federal Research Security Council.....................   7901.''.

SEC. 4. FEDERAL GRANT APPLICATION FRAUD.

    (a) In General.--Chapter 47 of title 18, United States Code, is 
amended by adding at the end the following:
``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 that is not received from 
        the primary employer of an individual.
    ``(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).''.
    (b) Clerical Amendment.--The table of sections for chapter 47 of 
title 18, United States Code, is amended by adding at the end the 
following:

``1041. Federal grant application fraud.''.

SEC. 5. RESTRICTING THE TRANSFER OF GOODS, TECHNOLOGIES, AND SENSITIVE 
              INFORMATION TO CERTAIN ALIENS.

    (a) Grounds of Inadmissibility.--Section 212(a)(3)(A)(i) of the 
Immigration and Nationality Act (8 U.S.C. 1182(a)(3)(A)(i)) is amended 
to read as follows:
                            ``(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 (notwithstanding 
                                any exclusions for items not normally 
                                subject to export controls) if the 
                                Secretary of State has determined that 
                                the acquisition of those goods, 
                                technologies, or sensitive information 
                                by a category of aliens that includes 
                                such alien would be contrary to an 
                                articulable national security 
                                (including economic security) interest 
                                of the United States;''.
    (b) Determining Factors.--
            (1) In general.--In establishing criteria for determining 
        whether an alien is included in a category of aliens that may 
        be inadmissible under section 212(a)(3)(A)(i)(III) of the 
        Immigration and Nationality Act, as amended by subsection (a), 
        officials of the Department of State shall--
                    (A) seek advice and assistance from officials at 
                the Office of the Director of National Intelligence, 
                the Office of Science and Technology Policy, the 
                Department of Health and Human Services, the Department 
                of Defense, the Department of Homeland Security, the 
                Department of Energy, the Department of Commerce, and 
                other appropriate Federal agencies;
                    (B) consider factors such as the alien's past or 
                likely employment or cooperation with--
                            (i) foreign military and security related 
                        organizations that are adversarial to the 
                        United States;
                            (ii) foreign institutions involved in the 
                        theft of United States research;
                            (iii) entities involved in export control 
                        violations or the theft of intellectual 
                        property; and
                            (iv) a government that seeks to undermine 
                        the integrity and security of the United States 
                        research community; and
                    (C) weigh the proportionality of risk for the 
                factors listed in subparagraph (B).
            (2) Machine-readable documents.--Not later than 1 year 
        after the date of the enactment of this Act, the Secretary of 
        State shall--
                    (A) use a machine-readable visa application form; 
                and
                    (B) make available documents submitted in support 
                of a visa application in a machine readable format to 
                assist in--
                            (i) identifying fraud;
                            (ii) conducting lawful law enforcement 
                        activities; and
                            (iii) determining the eligibility of 
                        applicants for a visa under the Immigration and 
                        Nationality Act (8 U.S.C. 1101 et seq.).
    (c) Reporting Requirement.--Not later than 180 days after the date 
of the enactment of this Act, and annually thereafter, the Secretary of 
State, in coordination with the Director of National Intelligence, the 
Director of the Office of Science and Technology Policy, the Secretary 
of Homeland Security, the Secretary of Defense, the Secretary of 
Energy, the Secretary of Commerce, and the heads of other appropriate 
Federal agencies, shall submit a report to Congress that identifies--
            (1) the criteria used to describe the category of aliens to 
        which such section 212(a)(3)(A)(i)(III) may apply; and
            (2) the number of individuals determined to be inadmissible 
        under such section 212(a)(3)(A)(i)(III), including the 
        nationality of each such individual.
    (d) Classification of Annual Report.--Each annual report required 
under subsection (c) shall be submitted, to the extent practicable, in 
an unclassified form, but may be accompanied by a classified appendix 
detailing the criteria used to describe the category of aliens to which 
such section 212(a)(3)(A)(i)(III) applies if the Secretary of State 
determines that such action--
            (1) is in the national security and economic security 
        interests of the United States; or
            (2) is necessary to further the purposes of this Act.
    (e) Report.--Not later than 45 days after date of the enactment of 
this Act, the Secretary of State shall submit a report to the Committee 
on Homeland Security and Governmental Affairs of the Senate, the 
Committee on Commerce, Science, and Transportation of the Senate, the 
Select Committee on Intelligence of the Senate, the Committee on 
Foreign Relations of the Senate; the Committee on Oversight and Reform 
of the House of Representatives, the Committee on Homeland Security of 
the House of Representatives, the Committee on Energy and Commerce of 
the House of Representatives, the Permanent Select Committee on 
Intelligence of the House of Representatives, and the Committee on 
Foreign Affairs of the House of Representatives that--
            (1) describes how supplementary documents provided by a 
        visa applicant in support of a visa application are stored and 
        shared by the Department of State with authorized Federal 
        agencies;
            (2) identifies the sections of a visa application that are 
        machine-readable and the sections that are not machine-
        readable;
            (3) provides cost estimates, including personnel costs and 
        a cost-benefit analysis for adopting different technologies, 
        including optical character recognition, for--
                    (A) making every element of a visa application, and 
                documents submitted in support of a visa application, 
                machine-readable; and
                    (B) ensuring that such system--
                            (i) protects personally-identifiable 
                        information; and
                            (ii) permits the sharing of visa 
                        information with Federal agencies in accordance 
                        with existing law; and
            (4) includes an estimated timeline for completing the 
        implementation of subsection (b)(2).

SEC. 6. LIMITATIONS ON EDUCATIONAL AND CULTURAL EXCHANGE PROGRAMS.

    Section 102(b)(5) of the Mutual Educational and Cultural Exchange 
Act of 1961 (22 U.S.C. 2452(b)(5)) is amended by striking the semicolon 
at the end and inserting the following: ``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;''.

SEC. 7. AMENDMENTS TO DISCLOSURES OF FOREIGN GIFTS.

    Section 117 of the Higher Education Act of 1965 (20 U.S.C. 1011f) 
is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Disclosure Report.--
            ``(1) In general.--An institution shall file a disclosure 
        report with the Secretary not later than the sooner of the 
        first March 31 or September 30 occurring after the date on 
        which--
                    ``(A) a foreign source gains ownership of, or 
                control over, the institution; or
                    ``(B) 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 that such reports are accurate and in 
        compliance with applicable requirements.'';
            (2) by amending subsection (e) to read as follows:
    ``(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.'';
            (3) in subsection (f), by adding at the end the following:
            ``(3) Warnings; fines.--
                    ``(A) Warnings.--The Secretary shall issue a 
                warning to any institution that fails to file a 
                disclosure report for a receipt of a gift from or 
                contract with a foreign source.
                    ``(B) Fines.--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.'';
            (4) by amending subsection (g) to read as follows:
    ``(g) Rulemaking.--
            ``(1) In general.--Not later than 1 year after the date of 
        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).'';
            (5) by redesignating subsection (h) as subsection (i);
            (6) by inserting after subsection (g) the following:
    ``(h) Treatment of Tuition Payment.--A tuition and related fees and 
expenses payment to an institution by 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.''; and
            (7) in subsection (i), as redesignated--
                    (A) in paragraph (3), by striking ``or property'' 
                and inserting ``, property, human resources, or payment 
                of any staff''; and
                    (B) in paragraph (5)(B), by inserting ``institutes, 
                instructional programs,'' after ``centers,''.
                                 <all>