S2041119th CongressWALLET

Information and Communications Technology and Services National Security Review Act

Sponsored By: Senator Rep. Slotkin, Elissa [D-MI-7]

Introduced

Summary

A centralized office to screen and control risky foreign‑controlled information and communications technology and services (ICTS). This bill would create an Office of Information and Communications Technology and Services inside the Bureau of Industry and Security that would review, mitigate, license, or prohibit ICTS transactions tied to China, Russia, Iran, and North Korea and set rules and penalties for violations.

Show full summary
  • U.S. tech companies and buyers would face new transaction reviews, negotiated mitigation conditions, and licensing requirements for covered ICTS, guided by ongoing risk assessments from intelligence agencies.
  • Companies controlled by jurisdictions of concern would face transaction bans and civil fines starting at $250,000 for violations of the new rules.
  • The Office would get broad investigation and enforcement powers, including subpoenas and inspections, and criminal penalties of up to $1 million and 20 years in prison for violations.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 2 costs, 2 mixed.

Intelligence risk reports to Commerce

This bill would require the Director of National Intelligence to give a risk assessment to Commerce within 180 days and yearly after. The report would list high-risk countries, companies, participants, and types of ICTS deals. Within 90 days of Commerce receipt, DNI would send an unclassified summary to Congress and may include a classified annex naming specific risky participants. Commerce would use these reports to guide rules and enforcement.

Stronger review, fines, and penalties

This bill would let Commerce investigate covered ICTS deals and require sworn reports, subpoenas, testimony, inspections, and hearings. Civil fines would be the greater of $250,000 or twice the value of the action. Willful violations could bring criminal fines up to $1,000,000 and up to 20 years in prison. The agency would give written pre-penalty notices and generally allow about 30 days to respond. Court challenges would go only to the D.C. Circuit and must be filed within 180 days. Sensitive business or classified materials could be given to courts in private and sealed.

Which ICTS deals are covered

This bill would define which information and communications technology and services (ICTS) deals fall under Part IV. It would cover deals tied to listed "jurisdictions of concern": China, Russia, Iran, and North Korea. It would also cover ICTS that are exports, reexports, or transfers of Commerce Control List items. The bill would define "undue risk" to include sabotage, catastrophic harm to critical infrastructure, or an entity of concern getting a controlled item.

Agency can require fixes or ban deals

This bill would let the Secretary require mitigation for covered ICTS deals. Mitigations could include cybersecurity standards, excluding specific components, or other conditions. If risk cannot be fixed, the Secretary could prohibit a transaction and publish the prohibition. The Secretary could also make rules that name classes of risky deals and create licensing routes for otherwise banned transactions.

New Commerce ICTS office and rules

This bill would create an Office of Information and Communications Technology and Services at Commerce led by an Executive Director. The Executive Director would have special hiring authority and report to a new Senate‑confirmed Assistant Secretary. The bill would also exempt the office's information collection from the Paperwork Reduction Act, which may speed data gathering but increase reporting for businesses.

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Sponsors & CoSponsors

Sponsor

Rep. Slotkin, Elissa [D-MI-7]

MI • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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