[Senate Report 116-317]
[From the U.S. Government Publishing Office]


                                                     Calendar No. 620
  
116th Congress }                                           {  Report
                             SENATE                
2d Session     }                                           {  116-317
_______________________________________________________________________

                                     

                                                       


                         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. 3997

            TO STRENGTHEN THE SECURITY AND INTEGRITY OF THE
            UNITED STATES SCIENTIFIC AND RESEARCH ENTERPRISE
            




               December 14, 2020.--Ordered to be printed
               
               
                           ______

             U.S. GOVERNMENT PUBLISHING OFFICE 
19-010                WASHINGTON : 2020                
 
 
               
               
               
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                    RON JOHNSON, Wisconsin, Chairman
ROB PORTMAN, Ohio                    GARY C. PETERS, Michigan
RAND PAUL, Kentucky                  THOMAS R. CARPER, Delaware
JAMES LANKFORD, Oklahoma             MAGGIE HASSAN, New Hampshire
MITT ROMNEY, Utah                    KAMALA D. HARRIS, California
RICK SCOTT, Florida                  KYRSTEN SINEMA, Arizona
MICHAEL B. ENZI, Wyoming             JACKY ROSEN, Nevada
JOSH HAWLEY, Missouri

                Gabrielle D'Adamo Singer, Staff Director
                   Joseph C. Folio III, Chief Counsel
                Margaret E. Frankel, Research Assistant
             Nicholas O. Ramirez, U.S. Coast Guard Detailee
               David M. Weinberg, Minority Staff Director
               Zachary I. Schram, Minority Chief Counsel
 Christopher J. Mulkins, Minority Deputy Director of Homeland Security
     Jeffrey D. Rothblum, Minority Senior Professional Staff Member
          Yogin J. Kothari, Minority Professional Staff Member
                     Laura W. Kilbride, Chief Clerk
                     
                     
                     

                                                       Calendar No. 620
                                                       
                                                       
116th Congress  }                                             {  Report
                                 SENATE
 2nd Session    }                                             { 116-317

======================================================================



 
                  SAFEGUARDING AMERICAN INNOVATION ACT

                                _______
                                

               December 14, 2020.--Ordered to be printed

                                _______
                                

 Mr. Johnson, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 3997]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 3997) to strengthen 
the security and integrity of the United States scientific and 
research enterprise having considered the same, reports 
favorably thereon with an amendment (in the nature of a 
substitute), and recommends that the bill, as amended, do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and the Need for Legislation..........................2
III. Legislative History..............................................3
 IV. Section-by-Section Analysis......................................3
  V. Evaluation of Regulatory Impact..................................6
 VI. Congressional Budget Office Cost Estimate........................6
VII. Changes in Existing Law Made by the Bill, as Reported...........10

                         I. Purpose and Summary

    The purpose of S. 3997, the Safeguarding American 
Innovation Act, is to improve the United States' ability to 
combat foreign threats to the American science and research 
enterprise. The bill establishes a council within the Office of 
Management and Budget (OMB) to update grant application 
processes across the Federal government and assess security 
risks to the U.S. research community. Further, the bill 
criminalizes Federal grant application fraud in instances in 
which the applicant 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 United States to 
engage in any activity to acquire export-controlled 
technologies. The bill further 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. 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

    China continues to pose a threat to the U.S. research 
enterprise and has used various means to exploit gaps in the 
country's current apparatus. Following a year-long 
investigation, on November 18, 2019, the Committee's Permanent 
Subcommittee on Investigations (PSI) released a staff report 
entitled ``Threats to the U.S. Research Enterprise: China's 
Talent Recruitment Plans.''\1\ The report includes information, 
findings and recommendations on how to better position the U.S. 
against threats to our nation's research institutions.
---------------------------------------------------------------------------
    \1\United States Senate Permanent Subcommittee on Investigations 
Staff Report, Threats to the U.S. Research Enterprise: China's Talent 
Recruitment Plans, https://www.hsgac.senate.gov/imo/media/doc/2019-11-
18%20PSI%20Staff%20Report%20-%20China%27s%20Talent%20
Recruitment%20Plans.pdf.
---------------------------------------------------------------------------
    The staff report found that China is working to claim 
hegemony over science and technology by 2050 and intends to do 
so by recruiting leaders in the field through talent 
recruitment programs.\2\ 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.\3\ John 
Brown, Assistant Director of Counterintelligence, the Federal 
Bureau of Investigation (FBI), testified before PSI that China 
provides financial and research benefits to researchers working 
and studying overseas as ways to recruit and incentivize them 
to share research with the government.\4\ As of 2017, the 
Chinese government had successfully recruited more than 7,000 
professionals.\5\ According to the PSI staff report, the U.S. 
government failed to act quickly to address the threat of 
talent recruitment plans, which led to federal grant dollars 
and U.S. research benefiting China.\6\
---------------------------------------------------------------------------
    \2\Id.
    \3\Id.
    \4\Securing the U.S. Research Enterprise from China's Talent 
Recruitment Plans: Hearing Before the S. Comm. on Homeland Sec. & 
Governmental Affairs' Permanent Subcomm. on Investigations, 116th Cong. 
(2019) (statement of John Brown, Assistant Director, 
Counterintelligence Division, Federal Bureau of Investigation) 
(``Through these programs, the Chinese government offers lucrative 
financial and research benefits to recruit individuals working and 
studying outside of China who possess access to, or expertise in, high-
priority research fields.'') available at https://www.hsgac.senate.gov/
subcommittees/investigations/hearings/securing-the-us-research-
enterprise-from-chinas-talent-recruitment-plans.
    \5\Id. at 1.
    \6\Id.
---------------------------------------------------------------------------
    Considering the threat posed by China and the shortcomings 
of the U.S. government to prevent exploitation, the staff 
report outlined a number of recommendations to help improve the 
U.S.' positioning against such threats, several of which are 
addressed by this legislation. First, S. 3997 establishes a 
Federal Research Security Council within OMB that, among other 
things, will establish a uniform Federal grant application 
process. Once established, the Council will help address 
concerns that the current Federal grant processes are not 
coordinated, resulting in administrative burden.\7\ Through 
streamlined grant application processes, the Federal Government 
will be able to better manage grants and ensure that taxpayer 
dollars are provided appropriately and efficiently.
---------------------------------------------------------------------------
    \7\Id.
---------------------------------------------------------------------------
    PSI's staff report also included a recommendation that the 
State Department deny visas for individuals suspected of, or 
likely to participate in, transferring technology, intellectual 
property, or other research.\8\ S. 3997 authorizes the State 
Department to deny visas to aliens traveling to the U.S. to 
acquire export-controlled technology. By preventing known or 
likely bad actors from acquiring U.S. export-controlled 
technology, less research, technology and intellectual property 
will be at risk of being accessed by foreign governments, such 
as China.
---------------------------------------------------------------------------
    \8\Id. at 1.
---------------------------------------------------------------------------
    S. 3997, the Safeguarding American Innovation Act, 
addresses gaps within the Federal Government that competitors 
like China continue to exploit. The enactment of this bill will 
accomplish this by imposing requirements to improve 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. This will 
assist the Federal Government's response to the threat posed by 
China and work to ensure that research, intellectual property, 
technology, and grant funds do not benefit foreign competitors.

                        III. Legislative History

    Senator Rob Portman introduced S. 3997, the Safeguarding 
American Innovation Act, on June 18, 2020, with Senators Thomas 
Carper, John Barrasso, Marsha Blackburn, Mike Braun, Chris 
Coons, Catherine Cortez Mastro, Margaret Hassan, Josh Hawley, 
Joe Manchin, Jim Risch, Marco Rubio, Rick Scott, Jean Shaheen, 
and Tom Tillis. Senators Charles Grassley, Ron Johnson, Martha 
McSally, James Lankford and Mitt Romney later joined as 
cosponsors. The bill was referred to the Committee on Homeland 
Security and Governmental Affairs.
    The Committee considered S. 3997 at a business meeting on 
July 22, 2020. Senators Portman, Carper, and Romney offered a 
substitute amendment that made technical edits and clarified 
the reporting requirement for foreign gifts and contracts.
    The amendment, and the bill as amended, was ordered 
reported favorably by voice vote en bloc. Senators present for 
the vote were Johnson, Portman, Paul, Lankford, Romney, Scott, 
Enzi, Hawley, Peters, Carper, Hassan, Harris, and Rosen.

        IV. Section-by-Section Analysis of the Bill, as Reported


Section 1. Short title; Table of contents.

    Subsection (a) establishes the short title as the 
``Safeguarding American Innovation Act''. Subsection (b) 
creates a table of contents.

Section 2. Definitions.

    This section establishes definitions for terms in the bill, 
including ``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. The new Chapter 79 section 7901 
establishes definitions for terms used in the chapter including 
``appropriate congressional committees,'' ``Council,'' 
``Executive Agency,'' ``Federal Research Security Risk,'' 
``Insider,'' and ``Insider Threat,'' ``Research and 
Development,'' and ``United States Research Community.''
    New section 7902 establishes the Federal Research Security 
Council in OMB to develop Federally-funded research and 
development grants guidance, establishes the membership of the 
Council, and how the Chairperson is to be determined.
    New section 7903 subsection (a) 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. Subsection (b) 
establishes requirements for the government-wide uniform grant 
application process. Subsection (c) establishes requirements 
for information-sharing criteria. Subsection (d) establishes 
requirements for how the Council should develop insider threat 
guidance. Subsection (e) requires the Council in conjunction 
with the lead security advisor to issue warnings on threats, 
risks, and vulnerabilities to the research community. 
Subsection (f) 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. Subsection (g) requires the 
Interagency Suspension and Debarment Committee to provide 
quarterly reports to the Council.
    New section 7904 requires the Council to develop a 
strategic plan within 180 days of enactment that addresses 
Federal research security risks and includes information-
sharing requirements for risks; identifications of authorities 
and best practices for addressing risks; recommendations to 
mitigate risks; and evaluations and plans. This section also 
requires the strategic plan be submitted to Congress.
    New section 7905 requires the Chairperson to submit a 
report on the activities and progress of the Council to 
Congress not later than December 15 each year.
    New 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 that criminalizes Federal 
grant application fraud. New section 1041 establishes 
definitions for terms in the section; makes it unlawful for any 
individual to knowingly prepare or submit Federal grant 
applications that omit receipt of outside or foreign 
compensation, as well as providing false information on Federal 
grant applications; exempts cases of Federal grant application 
fraud from being unlawful when they are carried out in 
connection to lawful investigative, protective, or intelligence 
activity; and 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 to authorize Consular officers 
to deny visas to aliens seeking to travel to the U.S. to engage 
solely in 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 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 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 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 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, the Secretary of Education is required 
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 Act (UMRA) and would impose no costs 
on state, local, or tribal governments.

             VI. Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, October 19, 2020.
Hon. Ron Johnson,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 3997, the 
Safeguarding American Innovation Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Aldo 
Prosperi.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

    
    

    The bill would:
           Require the Department of State to modernize 
        its visa application system and to share visa 
        application information with law enforcement agencies
           Expand the Department of State's authority 
        to deny visas to foreign nationals who are deemed a 
        threat to national security
           Require the Office of Management and Budget 
        to establish the Federal Research Security Council to 
        standardize the process for making federal research and 
        development grants
           Impose penalties on grant applicants that 
        intentionally fail to disclose sources of foreign 
        compensation
           Require certain federal grant recipients to 
        disclose financial relationships with foreign entities
    Estimated budgetary effects would primarily stem from:
           Implementing new federal grant-making 
        processes
           Operating the Federal Research Security 
        Council
    Areas of significant uncertainty include:
           Estimating the amount that the government 
        would collect in fines and other penalties under the 
        bill
    Bill summary: S. 3997 would require the Department of State 
to modernize its visa application process and expand the list 
of reasons for denying visas to foreign researchers.
    The bill also would establish the Federal Research Security 
Council within the Office of Management and Budget. The Council 
would be responsible for standardizing the federal process for 
grant applications and approvals for U.S. universities. In 
addition, the bill would prohibit applicants for federal grants 
from submitting applications that do not disclose known foreign 
sources of financial compensation, and it would lower the 
dollar value of foreign gifts that postsecondary institutions 
must report to the government.
    S. 3997 would provide new oversight and enforcement powers 
for federal agencies involved in securing U.S. intellectual 
property from foreign adversaries. Federal agencies would be 
required to collect information on sensitive technology or data 
that foreign grantees might access.
    Estimated Federal cost: The estimated budgetary effects of 
S. 3997 are shown in Table 1. The costs of the legislation fall 
within budget functions 150 (international affairs), 500 
(education, training, employment, and social services), and 800 
(general government).

                                TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF S. 3997
----------------------------------------------------------------------------------------------------------------
                                                                        By fiscal year, millions of dollars--
                                                                   ---------------------------------------------
                                                                     2021   2022   2023   2024   2025  2021-2025
----------------------------------------------------------------------------------------------------------------
                                 Increases in Spending Subject to Appropriation
 
Department of State Implementation Costs:
    Estimated Authorization.......................................     15      0      0      0      0        15
    Estimated Outlays.............................................      8      7      0      0      0        15
Federal Research Security Council:
    Estimated Authorization.......................................      1      2      2      2      3        10
    Estimated Outlays.............................................      1      2      2      2      3        10
Total Changes:
    Estimated Authorization.......................................     16      2      2      2      3        25
    Estimated Outlays.............................................      9      9      2      2      3        25
----------------------------------------------------------------------------------------------------------------
In addition to the budgetary effects shown above, CBO estimates that enacting S. 3997 would have insignificant
  effects on direct spending and revenues over the 2021-2030 period.

    Basis of estimate: For this estimate, CBO assumes that the 
legislation will be enacted early in fiscal year 2021 and that 
the estimated amounts will be appropriated each fiscal year.
    Spending subject to appropriation: CBO estimates that 
implementing S. 3997 would cost $25 million over the 2021 2025 
period; such spending would be subject to the availability of 
appropriations.
    Department of State Implementation Costs. Section 5 would 
require the Department of State to modernize its visa 
application system and to electronically share application 
forms and supporting documents with law enforcement agencies. 
Using information from the department, CBO estimates that it 
would cost $15 million to implement a visa application system 
that produces and uses machine-readable documents.
    Federal Research Security Council. Section 3 would 
standardize federal grant-making policy by establishing a new 
interagency council in the Office of Management and Budget 
(OMB). That council would develop uniform policies and 
procedures for federal agencies that make research and 
development grants, and it would share information with U.S. 
research institutions regarding foreign threats to sensitive 
technology and data. Using information from OMB about costs for 
similar activities, CBO estimates that staff salaries, travel 
costs, and other expenses would total $2 million annually, or 
$10million over the 2021-2025 period.
    Department of Education Implementation Costs. Section 7 
would require the Department of Education to issue regulations 
and reports on foreign gifts provided to U.S. research 
institutions. Using information about similar activities, CBO 
estimates that provision would cost less than $500,000 over the 
2021-2025 period.
    Direct spending and revenues: CBO estimates that 
implementing S. 3997 would have insignificant effects on direct 
spending and revenues over the 2021-2030 period.
    Grant Application Fraud. Section 4 would allow the federal 
government to bring charges against federal grant applicants 
for nondisclosure of compensation from foreign entities. Those 
prosecuted and convicted under S. 3997 could be subject to 
civil and criminal fines. Civil fines are recorded in the 
budget as revenues. Criminal fines are recorded as revenues, 
deposited into the Crime Victims Fund, and can be spent without 
further appropriation. CBO expects that the direct spending and 
revenues associated with those penalties would be insignificant 
in any year and over the 2021-2030 period because of the 
relatively small number of cases likely to be affected.
    Denial of Visas. Section 5 would authorize the Department 
of State to deny visas to the United States to people suspected 
of threatening U.S. national security by illicitly acquiring 
sensitive goods, technologies, or data. CBO estimates that 
enacting the bill would increase the number of people who are 
denied visas. Most visa fees are retained by the department and 
spent without further appropriation, but some amounts are 
deposited into the Treasury as revenues. Denying foreign 
nationals entry into the United States also would reduce direct 
spending on certain federal benefits for which they are 
eligible, such as emergency Medicaid or federal subsidies for 
health insurance.
    Using information from the department, CBO estimates that 
few people would be affected; thus, enacting the bill would 
have insignificant effects on direct spending and revenues and 
would, on net, reduce the deficit by insignificant amounts.
    Fines for Nondisclosure. Section 7 would lower the dollar 
amount in foreign gifts that postsecondary institutions must 
report to the government. The bill would authorize the 
Department of Education to fine U.S. research institutions that 
do not file the appropriate disclosure reports. CBO estimates 
that imposing new fines would have an insignificant effect on 
revenues over the 2021-2030 period.
    Uncertainty: The budgetary effects of the bill would depend 
to some extent on the number and amount of fines imposed under 
the bill's provisions. If more was collected in fines than CBO 
expects, revenues would be higher than estimated.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. CBO estimates that enacting S. 3997 would have 
insignificant effects on direct spending and revenues and 
would, on net, reduce the deficit by insignificant amounts.
    Increase in long-term deficits: None.
    Mandates: None.
    Estimate prepared by: Federal Costs: Aldo Prosperi (federal 
grant policy), Sunita D'Monte (Department of State), David 
Rafferty (immigration), Justin Humphrey (Department of 
Education); Mandates: Andrew Laughlin.
    Estimate reviewed by: David Newman, Chief, Defense, 
International Affairs, and Veterans' Affairs Cost Estimates 
Unit; Leo Lex, Deputy Director of Budget Analysis; Theresa 
Gullo, Director of Budget Analysis.

       VII. Changes in Existing Law Made by the Bill, as Reported


UNITED STATES CODE

           *       *       *       *       *       *       *


TITLE 2--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.--
          (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.
    [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.]
    (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) * * *
          (3) * * *
          (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.

           *       *       *       *       *       *       *

    (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.
    [All disclosure reports required by this section shall be 
public records open to inspection and copying during business 
hours.]
    (f) Enforcement.--
          (1) Court orders.--Whenever it appears that an 
        institution has failed to comply with the requirements 
        of this section, including any rule or regulation 
        promulgated under this section, a civil action may be 
        brought by the Attorney General, at the request of the 
        Secretary, in an appropriate district court of the 
        United States, or the appropriate United States court 
        of any territory or other place subject to the 
        jurisdiction of the United States, to request such 
        court to compel compliance with the requirements of 
        this section.
          (2) Costs.--For knowing or willful failure to comply 
        with the requirements of this section, including any 
        rule or regulation promulgated thereunder, an 
        institution shall pay to the Treasury of the United 
        States the full costs to the United States of obtaining 
        compliance, including all associated costs of 
        investigation and enforcement.
          (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 a 
                disclosure report for a receipt of a gift from 
                or contract with a foreign source in 3 
                consecutive years.
    (g) [Regulations] 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).
    [The Secretary may promulgate regulations to carry out this 
section.]
    (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.
    (i) [(h)] Definitions
    For the purpose of this section--
          (1) * * *
          (2) * * *
          (3) the term ``gift'' means any gift of money, 
        property, human resources, or staff, including staff 
        salaries [or property];
          (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) the employment, assignment, or 
                termination of faculty;
                  (B) the establishment of departments, 
                centers, institutes, instructional programs, 
                research or lecture programs, or new faculty 
                positions;

           *       *       *       *       *       *       *


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. INADMISSIBLE 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[,];
                                  (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;

           *       *       *       *       *       *       *


TITLE 18--CRIMES AND CRIMINAL PROCEDURE

           *       *       *       *       *       *       *


PART 1--CRIMES

           *       *       *       *       *       *       *



CHAPTER 47--FRAUD AND FALSE STATEMENTS

           *       *       *       *       *       *       *


Sec.
1001. Statements or entries generally.
     * * * * * * *
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 22--FOREIGN RELATIONS AND INTERCOURSE

           *       *       *       *       *       *       *


CHAPTER 33--MUTUAL EDUCATIONAL AND CULTUREAL EXCHANGE PROGRAM

           *       *       *       *       *       *       *



Subchapter II--Immigration

           *       *       *       *       *       *       *



    PART II--ADMISSION QUALIFICATIONS FOR ALIENS; TRAVEL CONTROL OF 
CITIZENS AND ALIENS

           *       *       *       *       *       *       *



SEC. 2452. AUTHORIZATION OF ACTIVITIES.

    (a) * * *
    (b) * * *
          (1) * * *

           *       *       *       *       *       *       *

          (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 
              Agreements..........................................  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) Designatoin.--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, 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.
    (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 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.
    (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.

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