[Senate Report 117-282]
[From the U.S. Government Publishing Office]


                                                      Calendar No. 681
117th Congress     }                                    {       Report
                                 SENATE
 2d Session        }                                    {      117-282
_______________________________________________________________________

                                     


                  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. 1351

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








[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]








               December 19, 2022.--Ordered to be printed   
                             _________
                              
                 U.S. GOVERNMENT PUBLISHING OFFICE
                 
39-010                   WASHINGTON : 2023
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
        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
            Benjamin J. Schubert, Professional Staff Member
                Pamela Thiessen, Minority Staff Director
            Sam J. Mulopulos, Minority Deputy Staff Director
                    Ryan L. Giles, Minority Counsel
                     Laura W. Kilbride, Chief Clerk  
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     

                                                      Calendar No. 681
117th Congress     }                                    {       Report
                                 SENATE
 2d Session        }                                    {      117-282

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



 
                  SAFEGUARDING AMERICAN INNOVATION ACT

                                _______
                                

               December 19, 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. 1351]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 1351), to 
strengthen the security and integrity of the United States 
scientific and research enterprise, having considered the same, 
reports favorably thereon without amendment and recommends that 
the bill 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...................................  7
VI. Changes in Existing Law Made by the Bill, as Reported.............  7

                         I. Purpose and Summary

    S. 1351, the Safeguarding American Innovation Act, aims to 
protect U.S. research and intellectual property from global 
competitors and improves the U.S.' ability to combat threats to 
the American science and research enterprise. The bill 
establishes a council within the Office of Management and 
Budget (OMB) to update and standardize the grant application 
process across the federal government and to assess, inform, 
and protect against security risks to the U.S. research 
community. Further, the bill criminalizes federal grant 
application fraud in instances in which the applicant knowingly 
falsifes or misrepresents material information on a grant 
application or 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 U.S. to engage in 
espionage or other activity to acquire export-controlled 
technologies. The bill also 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 and to develop a plan to prevent the 
unauthorized release of export controlled technology. 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

    The diversity and independence of U.S. research and 
development is vital to the innovative intellectual products 
that define American academia. Proactively promoting and 
protecting U.S. research, development, and intellectual 
property is a key element of maintaining the nation's national 
security interests. While the U.S. has historically been an 
international leader in research and development (R&D), the 
U.S. share of global R&D has dropped significantly in recent 
decades.\1\ In 1960, the U.S. accounted for 69 percent of 
global R&D, and the federal government funded twice as much R&D 
compared to U.S. Businesses.\2\ This dominance in the R&D space 
is now on a decline--between 1960 and 2019, the U.S. share of 
global R&D fell to 30 percent, and the federal government's 
share of R&D fell from 65 percent to 21 percent.\3\ According 
to an analysis by the Congressional Research Service, ``this 
decline resulted primarily from more rapid increases in the R&D 
of other nations (public and private) and partially from 
increases in U.S. business R&D.''\4\ Maintaining and restoring 
U.S. global R&D shares is both an academic and national 
security priority.
---------------------------------------------------------------------------
    \1\Congressional Research Services, The Global Research and 
Development Landscape and Implications for the Department of Defense 
(R45403) (June 2021).
    \2\Id.
    \3\Id.
    \4\Id.
---------------------------------------------------------------------------
    Another concern pertaining to U.S. R&D is the theft of 
intellectual property by foreign researchers and entities, as 
well as conflicts of interest stemming from the participation 
in foreign talent recruitment programs. There have been efforts 
by some foreign governments to illicitly acquire U.S. research 
and technology by utilizing U.S.-based foreign nationals at 
universities or recruiting American scientists to covertly 
conduct research programs on their behalf.\5\ In 2019, the 
Committee's Permanent Subcommittee on Investigations (PSI) 
staff released a staff report entitled, ``Threats to the U.S. 
Research Enterprise: China's Talent Recruitment Plans,'' which 
found that China's 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.\6\ In 
response to these threats, the Trump Administration issued a 
National Security Presidential Memorandum (NSPM-33) in January 
2021 to ``strengthen protections of United States Government-
supported R&D against foreign government interference and 
exploitation while maintaining an open environment to foster 
research discoveries and innovation that benefit our nation and 
the world.''\7\ In January 2022, the Biden Administration, 
through the National Science and Technology Council (NSTC), 
released implementation guidance for federal agencies of NSPM-
33.\8\ However, there continues to be a lack of sufficient 
interagency coordination of research security programs.\9\
---------------------------------------------------------------------------
    \5\The White House, Clear Rules for Research Security and 
Researcher Responsibility (Aug. 10, 2021) (https://www.whitehouse.gov/
ostp/news-updates/2021/08/10/clear-rules-for-research-
security-and-researcher-responsibility/).
    \6\Senate Permanent Subcommittee on Investigations, Threats to the 
U.S. Research Enterprise: China's Talent Recruitment Plans (Nov. 2019).
    \7\The White House, Presidential Memorandum on United States 
Government-Supported Research and Development National Security Policy 
(NSPM-33) (Jan. 14, 2021).
    \8\National Science and Technology Council, Guidance for 
Implementing National Security Presidential Memorandum 33 (NSPM-33) on 
National Security Strategy for United States Government-Supported 
Research and Development (Jan. 2022) (https://www.whitehouse.gov/wp-
content/uploads/2022/01/010422-NSPM-33-Implementation-Guidance.pdf).
    \9\U.S. scientific research agencies tighten foreign affiliation 
rules, Roll Call (Feb. 15, 2022) (https://rollcall.com/2022/02/15/u-s-
scientific-research-agencies-tighten-foreign-affiliation-rules/).
---------------------------------------------------------------------------
    The Safeguarding American Innovation Act seeks to fill this 
coordination gap by imposing requirements to improve and 
standardize the 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. 
Significantly, this bill establishes a Federal Research 
Security Council within OMB to develop federally funded 
research and grant making policy and management guidance to 
protect the national and economic security interests of the 
U.S. Through a streamlined and standardized grant application 
processes, the federal government will be able to better manage 
grants and ensure that taxpayer dollars are provided 
appropriately and efficiently while ensuring that institutions 
and departments that provide research grants, such as the 
Departments of Defense, Energy, Agriculture, Education, and the 
National Aeronautics and Space Administration (NASA) are 
applying grant standards and scrutiny in a uniform manner. This 
bill will help ensure that the federal government can protect 
intellectual property rights without undermining the openness 
and global collaboration necessary for innovative scientific 
discovery.

                        III. Legislative History

    Senator Portman (R-OH) introduced S. 1351 on April 22, 
2021, with Senators Carper (D-DE), Rubio (R-FL), Coons (D-DE), 
Barrasso (R-WY), Cortez Masto (D-NV), Blackburn (R-TN), Hassan 
(D-NH), Grassley (R-IA), Manchin (D-WV), Hawley (R-MO), Shaheen 
(D-NH), Johnson (R-WI), Lankford (R-OK), Risch (R-ID), Romney 
(R-UT), Scott (R-FL), and Tillis (R-NC). The bill was referred 
to the Senate Committee on Homeland Security and Governmental 
Affairs. The Committee considered S. 1351 at a business meeting 
on May 12, 2021. The Committee ordered the bill reported 
favorably by voice vote with Senators Sinema and Padilla 
recorded as voting ``no.'' Senators present for the voice vote 
were Peters, Hassan, Sinema, Rosen, Padilla, Ossoff, Portman, 
Johnson, Paul, Lankford, Romney, Scott, and Hawley.

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


Section 1. Short title

    This section designates the name of the bill as the 
``Safeguarding American Innovation Act.''

Section 2. Definitions

    This section defines the terms ``federal science agency,'' 
``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.
    Section 7901 defines the terms ``appropriate congressional 
committees,'' ``council,'' ``executive agency,'' ``federal 
research security risk,'' ``insider,'' ``insider threat,'' 
``research and development,'' and ``United States research 
community.''
    Section 7902 establishes the Federal Research Security 
Council in OMB to develop policy on federally funded research 
and development grant making policy and management guidance to 
protect the national and economic security interests of the 
U.S. This section also outlines the membership of the Council 
and the designation and functions of the Council's lead 
representatives of each participating agency. This section also 
requires the Director of OMB to designate a senior-level 
official from OMB to serve as the chairperson of the Council, 
and delineates the functions of the chairperson. Lastly, this 
section designates the lead science advisor to the council as 
the Director of the Office of Science and Technology Policy 
(OSTP), and the lead security advisor as the Director of the 
National Counterintelligence and Security Center, and requires 
the council to meet no later than 60 days after the enactment 
of this legislation and at least quarterly thereafter.
    Section 7903, subsection (a) defines the terms 
``implementing'' and ``uniform application process.
    Section 7903, subsection (b) 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 regarding insider 
threat detection and mitigation.
    Section 7903, subsection (c) establishes certain 
requirements as the Council develops the uniform application 
process for federal research and development grants.
    Section 7903, subsection (d) establishes requirements for 
information-sharing criteria with respect to federal research 
security risks.
    Section 7903, subsection (e) establishes the requirements 
that the Council must consider as they identify or develop 
insider threat program guidance.
    Section 7903, subsection (f) requires the Council in 
conjunction with the lead security advisor to issue warnings of 
potential risks and vulnerabilities in international scientific 
cooperation that may undermine the integrity and security of 
the U.S. research community or place at risk any federally 
funded research and development.
    Section 7903, subsection (g) 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. The section further 
requires the Council to use any findings or work product of the 
working group, and allows the Council to establish a program 
office and any committees, working groups, or other constituent 
bodies the Council deems appropriate, to carry out its 
functions.
    Section 7903, subsection (h) requires the Interagency 
Suspension and Debarment Committee to provide quarterly reports 
to the Council in order to reduce federal research security 
risk.
    Section 7903, subsection (i) provides that nothing in 
section 7903 may be construed to alter or diminish the 
authority of any federal agency or to alter any procedural 
requirements or remedies that were in place before the date of 
enactment of new Chapter 79.
    Section 7904 requires the Council to develop a strategic 
plan within 180 days of enactment of this legislation that 
addresses federal research security risks and managing those 
risks. The plan will include information-sharing requirements 
for risks; identifications of authorities and best practices 
for addressing risks; recommendations to mitigate risks; and 
evaluations and plans for implementing new policies on existing 
federal grant processes, engaging with the private sector and 
other nongovernmental stakeholders to address those risks, and 
identifying, assessing, mitigating, and vetting federal 
research security risks. This section also requires the 
strategic plan be submitted to Congress 7 calendar days after 
the completion of the strategic plan.
    Section 7905 requires the Chairperson of the Council to 
submit a report on the activities and progress of the Council 
to Congress no later than December 15 each year that describes 
the activities of the Council during the preceding fiscal year, 
and the progress made toward implementing the strategic plan 
required by section 7904 after the plan has been submitted to 
Congress.
    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 1041 that criminalizes 
Federal grant application fraud.
    Section 1041, subsection (a) establishes definitions for 
terms ``federal agency,'' ``federal grant,'' ``federal grant 
application,'' ``foreign compensation,'' ``foreign 
government,'' ``foreign government institution,'' ``foreign 
public enterprise,'' ``law enforcement agency,'' and ``outside 
compensation in the section.
    Section 1041, subsection (b) makes it unlawful for any 
individual to knowingly prepare or submit Federal grant 
applications that contains material misrepresentations, false 
statements, or omits receipt of outside or foreign 
compensation.
    Section 1041, subsection (c) exempts lawful investigative, 
protective, or intelligence activities from the prohibiton in 
subsection (b).
    Section 1041, subsection (d) 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 (8 U.S.C. 
Sec. 1182(a)(3)(A)(i)) to authorize consular officers to deny 
visas to aliens seeking to travel to the U.S. to engage in 
espionage or 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 visa-denial 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 (22 U.S.C. 
Sec. 2452(b)(5)) 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 (20 U.S.C. Sec. 1011f) 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 by this section 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, this section 
requires the Secretary of Education 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 bill (UMRA) and would impose no costs 
on state, local, or tribal governments.

       VI. 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):

UNITED STATES CODE

           *       *       *       *       *       *       *


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. INADMISSABLE 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,
                          [(ii) any other unlawful activity, or
                          [(iii) any activity a purpose of 
                        which is the opposition to, or the 
                        control or overthrow of, the Government 
                        of the United States by force, 
                        violence, or other unlawful means,
                          [is inadmissible.]
                          (i) any activity--
                                  (I) to violate any law of the 
                                United States relating to 
                                espionage or sabotage;
                                  (II) to violate or evade any 
                                law prohibiting the export from 
                                the United States of goods, 
                                technologies, or sensitive 
                                information; or
                                  (III) to acquire export-
                                controlled goods, technologies, 
                                or sensitive information 
                                through any exclusions for 
                                items normally subject to 
                                export controls if the 
                                Secretary of State has 
                                determined that the acquisition 
                                of those goods, technologies, 
                                or sensitive information by 
                                that alien would be contrary to 
                                an articulable national 
                                security (including economic 
                                security) interest of the 
                                United States;

           *       *       *       *       *       *       *


TITLE 18--CRIMES AND CRIMINAL PROCEDURE

           *       *       *       *       *       *       *


PART I--CRIMES

           *       *       *       *       *       *       *


                 CHAPTER 47--FRAUD AND FALSE STATEMENTS

Sec.
1001. Statements or entries personally.
     * * * * * * *
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 20--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.--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.]
    (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.
    [(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. 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) For gifts received from or contracts entered 
        into with a foreign government, the aggregate amount of 
        such gifts and contracts received from each foreign 
        government.
          [(3) In the case of an institution which is owned or 
        controlled by a foreign source, the identity of the 
        foreign source, the date on which the foreign source 
        assumed ownership or control, and any changes in 
        program or structure resulting from the change in 
        ownership or control.]
    (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) For gifts received from or contracts entered into 
        with a foreign government, the aggregate amount of such 
        gifts and contracts received from each foreign 
        government.
          (3) In the case of an institution which is owned or 
        controlled by a foreign source, the identity of the 
        foreign source, the date on which the foreign source 
        assumed ownership or control, and any changes in 
        program or structure resulting from the change in 
        ownership or control.
          (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.
    (c) * * *
    (d) * * *
    [(e) Public Inspection.--All disclosure reports required by 
this section shall be public records open to inspection and 
copying during business hours.]
    (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.
    (f) Enforcement.--
          (1) * * *
          (2) * * *
          (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 disclosure 
                report for a receipt of a gift from or contract 
                with a foreign source in 3 consecutive years.
    [(g) Regulations.--The Secretary may promulgate regulations 
to carry out this section.]
    (g) Rulemaking.--
          (1) In general.--Not later than 1 year after the 
        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).
    (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.
    [(h)] (i) Definitions.--For the purposes of this section--
          (1) * * *
          (2) * * *
          (3) the term ``gift'' means any gift of money [or 
        property], property, resources, or staff, including any 
        funds provided to the institution and used to pay, or 
        designated for the payment of, staff;
          (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) * * *
                  (B) the establishment of departments, 
                centers, institutes, instructional programs, 
                research or lecture programs, or new faculty 
                positions;

           *       *       *       *       *       *       *


TITLE 22--FOREIGN RELATIONS AND INTERCOURSE

           *       *       *       *       *       *       *


CHAPTER 23--MUTUAL EDUCATIONAL AND CULTURAL EXCHANGE PROGRAM

           *       *       *       *       *       *       *



SEC. 2452. AUTHORIZATION OF ACTIVTIES.

    (a) * * *
    (b) Other Exchanges.--In furtherance of the purposes of 
this chapter, the President is further authorized to provide 
for--
          (1) * * *
          (2) * * *
          (3) * * *
          (4) * * *
          (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 
    Agreement.....................................................  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) Designation.--Not later than 45 days after the 
        date of the enactment of this chapter, the Director of 
        the Office of Management and Budget shall designate a 
        senior-level official from the Office of Management and 
        Budget to serve as the Chairperson of the Council.
          (2) Functions.--The Chairperson shall perform 
        functions that include--
                  (A) subject to subsection (d), developing a 
                schedule for meetings of the Council;
                  (B) designating Executive agencies to be 
                represented on the Council under subsection 
                (b)(1)(Q);
                  (C) in consultation with the lead 
                representative of each agency represented on 
                the Council, developing a charter for the 
                Council; and
                  (D) not later than 7 days after completion of 
                the charter, submitting the charter to the 
                appropriate congressional committees.
          (3) Lead Science Advisor.--The Director of the Office 
        of Science and Technology Policy shall be the lead 
        science advisor to the Chairperson for purposes of this 
        chapter.
          (4) Lead Security Advisor.--The Director of the 
        National Counterintelligence and Security Center shall 
        be the lead security advisor to the Chairperson for 
        purposes of this chapter.
    (d) Meetings.--The Council shall meet not later than 60 
days after the date of the enactment of this chapter and not 
less frequently than quarterly thereafter.

SEC. 7903. FUNCTIONS AND AUTHORITIES.

    (a) Definitions.--In this section:
          (1) Implementing.--The term `implementing' means 
        working with the relevant Federal agencies, through 
        existing processes and procedures, to enable those 
        agencies to put in place and enforce the measures 
        described in this section.
          (2) Uniform application process.--The term `uniform 
        application process' means a process employed by 
        Federal science agencies to maximize the collection of 
        information regarding applicants and applications, as 
        determined by the Council.
    (b) 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 (c).
          (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 (d), 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 (e) 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 
        (c)(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.
    (c) Requirements for Uniform Grant Application Process.--In 
developing the uniform application process for Federal research 
and development grants required under subsection (b)(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.
    (d) Requirements for Information Sharing Criteria.--In 
identifying or developing criteria and procedures for sharing 
information with respect to Federal research security risks 
under subsection (b)(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.
    (e) Requirements for Insider Threat Program Guidance.--In 
identifying or developing guidance with respect to insider 
threat programs under subsection (b)(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.
    (f) 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.
    (g) 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.
    (h) 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.
    (i) Savings Provision.--Nothing in this section may be 
construed to alter or diminish the authority of any Federal 
agency or to alter any procedural requirements or remedies that 
were in place before the date of the enactment of this chapter.

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(b), 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(b);
          (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.

           *       *       *       *       *       *       *


                                  [all]