[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2062 Introduced in Senate (IS)]
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117th CONGRESS
1st Session
S. 2062
To increase the security of United States rail infrastructure along the
North American Interchange Service to the direct and indirect supply of
U.S. military and related institutions, to facilitate cross-border
trade among the United States, Mexico, or Canada, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 15, 2021
Mr. Cornyn (for himself and Ms. Baldwin) introduced the following bill;
which was read twice and referred to the Committee on Commerce,
Science, and Transportation
_______________________________________________________________________
A BILL
To increase the security of United States rail infrastructure along the
North American Interchange Service to the direct and indirect supply of
U.S. military and related institutions, to facilitate cross-border
trade among the United States, Mexico, or Canada, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLES.
This Act may be cited as the ``Stopping America's Foreign Enemies
Through Rail And Infrastructure National Security Act'' or the ``SAFE
TRAINS Act''.
SEC. 2. REQUIREMENTS FOR RAILROAD FREIGHT CARS ENTERING SERVICE IN THE
UNITED STATES.
(a) In General.--Chapter 207 of title 49, United States Code, is
amended by adding at the end the following:
``Sec. 20704. Requirements for railroad freight cars entering service
in the United States
``(a) Definitions.--In this section:
``(1) Component.--The term `component' means a part or
subassembly of a railroad freight car.
``(2) Control.--The term `control' means the power, whether
direct or indirect and whether or not exercised, through the
ownership of a majority or a dominant minority of the total
outstanding voting interest in an entity, representation on the
board of directors of an entity, proxy voting on the board of
directors of an entity, a special share in the entity, a
contractual arrangement with the entity, a formal or informal
arrangement to act in concert with an entity, or any other
means, to determine, direct, make decisions, or cause decisions
to be made for the entity.
``(3) Cost of sensitive technology.--The term `cost of
sensitive technology' means the aggregate cost of the sensitive
technology located on a railroad freight car.
``(4) Country of concern.--The term `country of concern'
means a country that--
``(A) is identified by the Department of Commerce
as a nonmarket economy country (as defined in section
771(18) of the Tariff Act of 1930 (19 U.S.C. 1677(18)))
as of the date of the enactment of the SAFE TRAINS Act;
``(B) was identified by the United States Trade
Representative in the most recent report required under
section 182 of the Trade Act of 1974 (19 U.S.C. 2242)
as a foreign country included on the priority watch
list (as defined in subsection (g)(3) of such section);
and
``(C) is subject to monitoring by the Trade
Representative under section 306 of the Trade Act of
1974 (19 U.S.C. 2416).
``(5) Net cost.--The term `net cost' has the meaning given
such term in chapter 4 of the USMCA or in any subsequent free
trade agreement between the United States, Mexico, and Canada.
``(6) Qualified facility.--The term `qualified facility'
means a facility that is not owned or under the control of a
state-owned enterprise.
``(7) Qualified manufacturer.--The term `qualified
manufacturer' means a railroad freight car manufacturer that is
not owned or under the control of a state-owned enterprise.
``(8) Railroad freight car.--The term `railroad freight
car' means a car designed to carry freight or railroad
personnel by rail, including--
``(A) a box car;
``(B) a refrigerator car;
``(C) a ventilator car;
``(D) an intermodal well car;
``(E) a gondola car;
``(F) a hopper car;
``(G) an auto rack car;
``(H) a flat car;
``(I) a special car;
``(J) a caboose car;
``(K) a tank car; and
``(L) a yard car.
``(9) Sensitive technology.--The term `sensitive
technology' means any device embedded with electronics,
software, sensors, or other connectivity, that enables the
device to connect to, collect data from, or exchange data with
another device, including--
``(A) onboard telematics;
``(B) remote monitoring software;
``(C) firmware;
``(D) analytics;
``(E) GPS satellite and cellular location tracking
systems;
``(F) event status sensors;
``(G) predictive component condition and
performance monitoring sensors; and
``(H) similar sensitive technologies embedded into
freight railcar components and subassemblies.
``(10) State-owned enterprise.--The term `state-owned
enterprise' means--
``(A) an entity that is owned by, or under the
control of, a national, provincial, or local government
of a country of concern, or an agency of such
government; or
``(B) an individual acting under the direction or
influence of a government or agency described in
subparagraph (A).
``(11) Substantially transformed.--The term `substantially
transformed' means a component of a railroad freight car that
undergoes an applicable change in tariff classification as a
result of the manufacturing process, as described in chapter 4
and related annexes of the USMCA or in any subsequent free
trade agreement between the United States, Mexico, and Canada.
``(12) USMCA.--The term `USMCA' has the meaning given such
term in section 3 of the United States-Mexico-Canada Agreement
Implementation Act (19 U.S.C. 4502).
``(b) Requirements for Railroad Freight Cars Entering Service in
the United States.--
``(1) Limitation on railroad freight cars.--A railroad
freight car wholly manufactured on or after the date that is 1
year after the date of the enactment of the SAFE TRAINS Act may
only operate on the United States freight railroad interchange
system if--
``(A) the railroad freight car is manufactured,
assembled, and substantially transformed, as
applicable, by a qualified manufacturer in a qualified
facility;
``(B) none of the sensitive technology located on
the railroad freight car, including components
necessary to the functionality of the sensitive
technology, originates from a country of concern or is
sourced from a state-owned enterprise; and
``(C) none of the content of the railroad freight
car, excluding sensitive technology, originates from a
country of concern or is sourced from a state-owned
enterprise that has been determined by a recognized
court or administrative agency of competent
jurisdiction and legal authority to have violated or
infringed valid United States intellectual property
rights of another, including such a finding by a
Federal district court under title 35 or the United
States International Trade Commission under section 337
of the Tariff Act of 1930 (19 U.S.C. 1337).
``(2) Limitation on railroad freight car content.--
``(A) Percentage limitation.--Not later than 1 year
after the date of the enactment of the SAFE TRAINS Act,
a railroad freight car may operate on the United States
freight railroad interchange system only if--
``(i) not more than 20 percent of the
content of the railroad freight car, calculated
by the net cost of all components of the car
and excluding the cost of sensitive technology,
originates from a country of concern or is
sourced from a state-owned enterprise; or
``(ii) not later than 2 years after the
date of the enactment of the SAFE TRAINS Act,
the percentage described in clause (i) is not
more than 15 percent.
``(B) Conflict.--The percentages specified in
subparagraph (A) shall apply notwithstanding any
apparent conflict with the provisions of chapter 4 of
the USMCA.
``(c) Regulations and Penalties.--
``(1) Regulations required.--Not later than 1 year after
the date of the enactment of the SAFE TRAINS Act, the Secretary
of Transportation shall issue such regulations as are necessary
to carry out this section, including regulations necessary for
the monitoring, enforcement, and sensitive technology
requirements under this section.
``(2) Certification required.--To be eligible to provide a
railroad freight car for operation on the United States freight
railroad interchange system, the manufacturer of such car shall
annually certify to the Secretary that any railroad freight
cars so provided meets the requirements under this section.
``(3) Compliance.--
``(A) Valid certification required.--At the time a
railroad freight car begins operation on the United
States freight railroad interchange system, the
manufacturer of such railroad freight car shall have
valid certification described in paragraph (2) for the
year in which such car begins operation.
``(B) Registration of noncompliant cars
prohibited.--A railroad freight car manufacturer may
not register, or cause to be registered, a railroad
freight car that does not comply with the requirements
under this section in the Association of American
Railroad's Umler system.
``(4) Civil penalties.--
``(A) In general.--A railroad freight car
manufacturer that has manufactured a railroad freight
car for operation on the United States freight railroad
interchange system that the Secretary of Transportation
determines, after written notice and an opportunity for
a hearing, has violated this section is liable to the
United States Government for a civil penalty of at
least $100,000, but not more than $250,000, for each
such violation for each railroad freight car.
``(B) Prohibition for violations.--The Secretary of
Transportation may prohibit a railroad freight car
manufacturer with respect to which the Secretary has
assessed more than 3 violations under subparagraph (A)
from providing additional railroad freight cars for
operation on the United States freight railroad
interchange system until the Secretary determines--
``(i) such manufacturer is in compliance
with this section; and
``(ii) all civil penalties assessed to such
manufacturer pursuant to subparagraph (A) have
been paid in full.''.
(b) Clerical Amendment.--The chapter analysis for chapter 207 of
title 49, United States Code, is amended by adding at the end the
following:
``20704. Requirements for railroad freight cars entering service in the
United States.''.
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