[Senate Report 117-208]
[From the U.S. Government Publishing Office]


                                                      Calendar No. 560
117th Congress    }                                       {     Report
                                 SENATE
 2nd Session      }                                       {    117-208
_______________________________________________________________________

                                     



          DHS TRADE AND ECONOMIC SECURITY COUNCIL ACT OF 2022

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                S. 4243

            TO ESTABLISH THE DEPARTMENT OF HOMELAND SECURITY
              TRADE AND ECONOMIC SECURITY COUNCIL AND THE
             POSITION OF ASSISTANT SECRETARY FOR TRADE AND
               ECONOMIC SECURITY WITHIN THE DEPARTMENT OF
               HOMELAND SECURITY, AND FOR OTHER PURPOSES





[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]






               November 17, 2022.--Ordered to be printed 
               
                             _________
                              
                 U.S. GOVERNMENT PUBLISHING OFFICE
                 
39-010                   WASHINGTON : 2022
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                   GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware           ROB PORTMAN, Ohio
MAGGIE HASSAN, New Hampshire         RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona              RAND PAUL, Kentucky
JACKY ROSEN, Nevada                  JAMES LANKFORD, Oklahoma
ALEX PADILLA, California             MITT ROMNEY, Utah
JON OSSOFF, Georgia                  RICK SCOTT, Florida
                                     JOSH HAWLEY, Missouri

                   David M. Weinberg, Staff Director
                    Zachary I. Schram, Chief Counsel
         Christopher J. Mulkins, Director of Homeland Security
               Katie A. Conley, Professional Staff Member
                Pamela Thiessen, Minority Staff Director
            Sam J. Mulopulos, Minority Deputy Staff Director
                     Laura W. Kilbride, Chief Clerk  
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                                                      Calendar No. 560
117th Congress    }                                       {     Report
                                 SENATE
 2nd Session      }                                       {    117-208

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



 
                DHS TRADE AND ECONOMIC SECURITY COUNCIL 
                              ACT OF 2022

                                _______
                                

               November 17, 2022.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 4243]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 4243) to establish 
the Department of Homeland Security Trade and Economic Security 
Council and the position of Assistant Secretary for Trade and 
Economic Security within the Department of Homeland Security, 
and for other purposes, having considered the same reports 
favorably thereon with an amendment in the nature of a 
subsitute and recommends that the bill, as amended, do pass.

                                CONTENTS

                                                                    Page
  I. Purpose and Summary.............................................. 1
 II. Background and Need for the Legislation.......................... 2
III. Legislative History.............................................. 3
 IV. Section-by-Section Analysis of the Bill, as Reported............. 4
  V. Evaluation of Regulatory Impact.................................. 5
 VI. Congressional Budget Office Cost Estimate........................ 5
VII. Changes in Existing Law Made by the Bill, as Reported............ 6

                         I. Purpose and Summary

    S. 4243, the DHS Trade and Economic Security Council Act of 
2022, requires the Secretary of Homeland Security to establish 
the Department of Homeland Security (DHS) Trade and Economic 
Security Council in order to provide the Secretary advice and 
recommendations on matters of trade and economic security, 
including: identifying risks and setting priorities to secure 
trade and economic security, coordinating Department-wide 
activities, and developing the President's continuity of the 
economy plan as required by the Fiscal Year 2021 National 
Defense Authorization Act. The bill requires the Council to be 
comprised of the Department's component heads or their 
designees.
    The bill also amends the Homeland Security Act of 2002 to 
establish the Assistant Secretary for Trade and Economic 
Security within the Office of Strategy, Policy, and Plans. The 
bill specifies, that at the direction of the Under Secretary 
for Strategy, Policy, and Plans, the Assistant Secretary may be 
tasked with coordinating supply chain policies, assessments, 
and reports to Congress related to economic security domains, 
coordinating with Federal and nongovernmental stakeholders, and 
serving as the representative of the Under Secretary for 
Strategy, Policy, and Plans on the Committee for the Assessment 
of Foreign Participation in the United States 
Telecommunications Services Sector and the Committee on Foreign 
Investment in the United States.

              II. Background and Need for the Legislation

    The United States' economic prosperity depends both on the 
flow of goods and services, people and capital, and information 
and technology across our borders, and also the integrity of 
the U.S. industrial base.\1\ DHS plays a significant role in 
fostering this economic prosperity given that its core mission 
is to protect the borders of the United States while 
facilitating legitimate trade and travel and enforcing trade, 
customs, and other laws.\2\ DHS's U.S. Customs and Border 
Protection (CBP) saw a significant increase in trade volume 
during fiscal year 2021 compared to the previous year--volume 
increased by 13 percent from fiscal year 2020. The volume of 
shipments entering the United States was not only higher than 
the previous year, it also surpassed pre-COVID-19 pandemic 
levels, continuing an overall trend of steadily increasing 
trade volume.\3\ As trade volume has increased, authorities 
must remain vigilant against unfairly traded goods, the 
importation of which violates U.S. law and undermines the 
country's industrial base and overall competitiveness.
---------------------------------------------------------------------------
    \1\Department of Homeland Security, Trade and Economic Security 
(https://www.dhs.gov/trade-and-economic-security) (accessed May 31, 
2022).
    \2\U.S Customs and Border Protection, CBP Trade and Travel Report 
Fiscal Year 2021 (Apr. 15, 2022) (https://www.cbp.gov/sites/default/
files/assets/documents/2022-Apr/FINAL%20FY2021_
%20Trade%20and%20Travel%20Report%20%28508%20Compliant%29%20%28April%2020
22%
29_0.pdf).
    \3\Id.
---------------------------------------------------------------------------
    In its execution of its trade and economic mission, DHS is 
positioned to identify and proactively mitigate potential 
threats and vulnerabilities to the U.S. supply chain and 
domestic production. These include economic and geopolitical 
exploitation from our adversaries, natural disasters, terrorist 
attacks, or public health crises.\4\ Most recently, the COVID-
19 pandemic exposed supply chain vulnerabilities and the 
subsequent effects on our economic security, including access 
to food and medicine and the inability to conduct business.\5\ 
In 2020, the then-members of DHS's Homeland Security Advisory 
Council (HSAC) Economic Security Subcommittee issued a report 
that found that the threats and vulnerabilities of the U.S. 
supply chain are growing and that the COVID-19 pandemic further 
exacerbated these issues, in particular highlighting our 
nation's dependence on China.\6\ Currently, the Trade and 
Economic Security sub-office within DHS's Office of Strategy, 
Policy, and Plans leads department-wide efforts to counter 
these threats while establishing policies focused on 
safeguarding economic integrity and competitiveness.\7\
---------------------------------------------------------------------------
    \4\Homeland Security Advisory Council, Final Report: Economic 
Security Subcommittee 
(Nov. 16, 2020) (https://www.dhs.gov/sites/default/files/publications/
final_economic_security_
subcommittee_report_1.pdf).
    \5\U.S. Department of Homeland Security Office of Strategy, Policy, 
and Plans, 2020 Economic Security Assessment (Jan. 1, 2021) (https://
www.dhs.gov/sites/default/files/publications/21_0111_economic-security-
assessment-annual-report.pdf).
    \6\Homeland Security Advisory Council, Final Report: Economic 
Security Subcommittee 
(Nov. 16, 2020) (https://www.dhs.gov/sites/default/files/publications/
final_economic_security_
subcommittee_report_1.pdf).
    \7\Department of Homeland Security, Trade and Economic Security 
(https://www.dhs.gov/trade-and-economic-security) (accessed May 31, 
2022).
---------------------------------------------------------------------------
    S. 4243 helps address current and emerging issues related 
to trade and economic security by better positioning DHS to 
address and respond to threats and vulnerabilities, as well as 
strengthening U.S. supply chains and domestic production 
capacity. Specifically, the bill establishes the Trade and 
Economic Security Council--chaired by the Under Secretary for 
Strategy, Policy, and Plans--which would provide the Secretary 
with advice and recommendations on matters of trade and 
economic security. The bill requires the Council to meet on a 
quarterly basis and brief Congressional committees on a regular 
basis.
    In addition, the bill makes permanent the role of Assistant 
Secretary for Trade and Economic Security in DHS's Office of 
Strategy, Policy, and Plans. At the direction of the Under 
Secretary for Strategy, Policy, and Plans, the Assistant 
Secretary may serve as the lead for matters of economic 
security and trade, including supply chain policy, related 
assessments and reports to Congress, serve as the Under 
Secretary's representative to related committees, and 
coordinate with stakeholders.

                        III. Legislative History

    Senator Rob Portman (R-OH) introduced S. 4243, the DHS 
Trade and Economic Security Council Act of 2022, on May 18, 
2022, along with Senators Gary C. Peters (D-MI) and Debbie 
Stabenow (D-MI).
    The bill was referred to the Committee on Homeland Security 
and Governmental Affairs. The Committee considered S. 4243 at a 
business meeting on May 25, 2022. During the business meeting, 
a substitute amendment was offered by Senator Portman that 
designated the Under Secretary for Strategy, Policy, and Plans 
as the Chair of the Council and clarified that the Assistant 
Secretary for Trade and Economic Security's duties and 
responsibilities are at the direction of the Under Secretary 
for Strategy, Policy, and Plans, in addition to other technical 
edits. The Portman Substitute Amendment was adopted by voice 
vote en bloc with Senators Peters, Hassan, Sinema, Rosen, 
Padilla, Ossoff, Portman, Lankford, Romney, Scott, and Hawley 
present.
    The Committee ordered the bill, as amended, reported 
favorably by voice vote en bloc with Senators Peters, Hassan, 
Sinema, Rosen, Padilla, Ossoff, Portman, Lankford, Romney, 
Scott, and Hawley present.
    Consistent with Committee Rule 3(G), the Committee reports 
the bill with a technical amendment by mutual agreement of the 
Chairman and Ranking Member.

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


Section 1. Short title

    This section designates the name of the bill as the ``DHS 
Trade and Economic Security Council Act of 2022.''

Section 2. DHS Trade and Economic Security Council

    Subsection (a) defines the terms ``Council'', 
``Department'', ``economic security'', and ``Secretary.''
    Subsection (b) requires that the Secretary establish the 
DHS Trade and Economic Security Council, which is a standing 
council comprised of component heads or their designees.
    Subsection (c) describes the duties of the Council 
established in subsection (b). The Council is directed to 
provide the Secretary with advice and recommendations on trade 
and economic security issues. Such issues include: identifying 
risks, setting priorities, coordinating DHS-wide activities, 
developing the President's continuity of the economic plan as 
required by the Fiscal Year 2021 National Defense Authorization 
Act, and proposing necessary changes related to trade and 
economic security.
    Subsection (d) requires that the Under Secretary for 
Strategy, Policy, and Plans serve as the Council Chair and 
allows the Under Secretary to designate one of the Council 
members to serve as the Vice Chair.
    Subsection (e) requires that the Council meet on a 
quarterly basis and more if needed, at the direction of the 
Chair or Secretary.
    Subsection (f) requires that within 180 days after the bill 
is enacted and every 180 days thereafter for four years, the 
Council must brief the Committee on Homeland Security and 
Governmental Affairs of the Senate and the Committee on 
Homeland Security of the House of Representatives on the 
Council's activities.

Section 3. Assistant Secretary for Trade and Economic Security

    This section amends Section 709 of the Homeland Security 
Act of 2002 by redesignating subsection (g) as subsection (h) 
and inserting a new subsection (g) after subsection (f).
    Section 709(g)(1) establishes an Assistant Secretary for 
Trade and Economic Security in the Office of Strategy, Policy, 
and Plans.
    Section 709(g)(2) defines the Assistant Secretary's duties 
to include overseeing trade and economic security policy as 
those matters relate to DHS.
    Section 709(g)(3) defines additional duties that the 
Assistant Secretary may have at the direction of the Under 
Secretary for Policy, Strategy, and Plans, including oversight 
of the Department's supply chain policy and Congressional 
assessments and reports on economic security. The subsection 
also allows the Assistant Secretary to represent the Under 
Secretary for Policy, Strategy, and Plans on the Committee on 
Foreign Investment in the United States as well as the 
Committee for the Assessment of Foreign Participation on the 
United States Telecommunications Services Sector. In addition, 
this subsection allows the Assistant Secretary to coordinate 
with federal and nongovernmental stakeholders on trade and 
economic security issues and perform any additional duties at 
the direction of the Under Secretary.
    Section 709(g)(4) defines the terms ``critical economic 
security domain'' and ``economic security.''

Section 4. Rule of construction

    This section provides that nothing in this bill, including 
the amendments it makes, shall be construed to affect or 
diminish the authority granted to any DHS officer.

                   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 20, 2022.
Hon. Gary C. Peters,
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. 4243, the DHS Trade 
and Economic Security Council Act of 2022.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Margot 
Berman.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

    
    

    S. 4243 would establish a council within the Department of 
Homeland Security (DHS) tasked with providing recommendations 
on matters of trade and economic security to the Secretary of 
DHS. The council would brief the House and Senate Homeland 
Security Committees on its activities every six months for a 
period of four years, beginning 180 days after the bill's 
enactment. S. 4243 also would create the position of Assistant 
Secretary for Trade and Economic Security within the Office of 
Strategy, Policy, and Plans.
    Based on information from DHS, the agency currently has an 
Assistant Secretary for Trade and Economic Security and is 
already undertaking some of the activities required by the 
bill. As a result, CBO estimates that implementing S. 4243 
would cost less than $500,000 over the 2023-2027 period.
    On January 27, 2022, CBO transmitted a cost estimate for 
H.R. 4476, the DHS Trade and Economic Security Council Act of 
2021, as ordered reported by the House Committee on Homeland 
Security, on October 26, 2021. The pieces of legislation are 
different, and CBO's estimates of their budgetary effects 
reflect those differences. H.R. 4476 specifically authorizes 
the appropriation of $3 million annually over the 2022-2026 
period. S. 4243, as ordered reported, did not include that 
specified authorization of appropriations.
    S. 4243 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Margot Berman. 
The estimate was reviewed by Leo Lex, Deputy Director of Budget 
Analysis.

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

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows: (existing law 
proposed to be omitted is enclosed in brackets, new matter is 
printed in italic, and existing law in which no change is 
proposed is shown in roman):

HOMELAND SECURITY ACT OF 2002

           *       *       *       *       *       *       *


TITLE VII--MANAGEMENT

           *       *       *       *       *       *       *


SEC. 709. OFFICE OF STRATEGY, POLICY, AND PLANS.

           *       *       *       *       *       *       *


    (g) Assistant Secretary for Trade and Economic Security.--
          (1) In general.--There is established within the 
        Office of Strategy, Policy, and Plans an Assistant 
        Secretary for Trade and Economic Security.
          (2) Duties.--At the direction of the Under Secretary 
        for Strategy, Policy, and Plans, The Assistant 
        Secretary for Trade and Economic Security shall be 
        responsible for policy formulation regarding matters 
        relating to economic security and trade, as such 
        matters relate to the mission and the operations of the 
        Department.
          (3) Additional responsibilities.--In addition to the 
        duties specified in paragraph (2), the Assistant 
        Secretary for Trade and Economic Security, at the 
        direction of the Under Secretary for Strategy, Policy, 
        and Plans, may--
                  (A) oversee--
                          (i) coordination of supply chain 
                        policy; and
                          (ii) assessments and reports to 
                        Congress related to critical economic 
                        security domains;
                  (B) serve as the representative of the Under 
                Secretary for Strategy, Policy, and Plans for 
                the purposes of representing the Department 
                on--
                          (i) the Committee on Foreign 
                        Investment in the United States; and
                          (ii) the Committee for the Assessment 
                        of Foreign Participation in the United 
                        States Telecommunications Services 
                        Sector;
                  (C) coordinate with stakeholders in other 
                Federal departments and agencies and non-
                governmental entities with trade and economic 
                security interests, authorities, and 
                responsibilities; and
                  (D) perform such additional duties as the 
                Secretary or the Under Secretary of Strategy, 
                Policy, and Plans may prescribe.
          (4) Definitions.--In this subsection:
                  (A) Critical economic security domain.--The 
                term `critical economic security domain' means 
                any infrastructure, industry, technology, or 
                intellectual property (or combination thereof) 
                that is essential for the economic security of 
                the United States.
                  (B) Economic security.--The term `economic 
                security' has the meaning given that term in 
                section 890B(c)(2).
    [(g)](h) Limitation.--Nothing in this section overrides or 
otherwise affects the requirements specified in section 888.

           *       *       *       *       *       *       *


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