[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8782 Introduced in House (IH)]
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117th CONGRESS
2d Session
H. R. 8782
To require disclosure by Department of Homeland Security contractors of
contracts with Chinese entities, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 9, 2022
Mrs. Harshbarger (for herself, Mr. Pfluger, and Mrs. Miller-Meeks)
introduced the following bill; which was referred to the Committee on
Homeland Security
_______________________________________________________________________
A BILL
To require disclosure by Department of Homeland Security contractors of
contracts with Chinese entities, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Protecting Our Homeland from Chinese
Espionage Act''.
SEC. 2. REQUIREMENT FOR DEPARTMENT OF HOMELAND SECURITY CONTRACTORS TO
DISCLOSE CONTRACTS AND TIES WITH PEOPLE'S REPUBLIC OF
CHINA ENTITIES.
(a) Requirement.--
(1) Initial disclosure.--
(A) In general.--Not later than 12 months after the
date of the enactment of this Act, the Secretary of
Homeland Security shall amend the Homeland Security
Acquisition Regulation to require that a contractor
with the Department of Homeland Security shall, as a
condition of being awarded a contract for the
procurement of goods or services, disclose to the
Department covered information related to any contracts
or other relevant commercial ties with a covered entity
such contractor, including the immediate owner of such
contractor, the highest-level owner of such contractor,
and all first tier subcontractors of such contractor
with respect to the contract to be awarded--
(i) has that are in effect at the time of
contract award;
(ii) has had within the three years
immediately preceding such time of contract
award; and
(iii) enters into at any time during the
period of such contract award.
(B) Notification.--The Secretary of Homeland
Security shall notify the Committee on Homeland
Security and Governmental Affairs of the Senate and the
Committee on Homeland Security of the House of
Representatives of disclosures described in
subparagraph (A).
(2) Updated disclosures.--
(A) New or renewal.--A contractor awarded a
contract with the Department of Homeland Security in
accordance with the amended Homeland Security
Acquisition Regulation pursuant to paragraph (1) shall
update disclosures made to the Department in accordance
with such paragraph not later than 30 days after such
contractor, including the immediate owner of such
contractor, the highest-level owner of such contractor,
and all first tier subcontractors of such contractor
with respect to such contract, enters into or renews a
contract with a covered entity.
(B) Annual.--A contractor awarded a contract with
the Department of Homeland Security in accordance with
the amended Homeland Security Acquisition Regulation
pursuant to paragraph (1) shall annually update
disclosures made to the Department in accordance with
such paragraph.
(C) Notification.--The Secretary of Homeland
Security shall notify the Committee on Homeland
Security and Governmental Affairs of the Senate and the
Committee on Homeland Security of the House of
Representatives of updated disclosures under
subparagraphs (A) and (B).
(3) Exceptions.--Disclosure and notification requirements
under this section shall not apply in the case of any of the
following:
(A) If the procurement that is the subject of the
contract at issue is in an amount at or below the
simplified acquisition threshold, as that term in
defined under section 134 of title 41, United States
Code, and adjusted for inflation under section 1908 of
such title.
(B) Any supply or service contract the Secretary of
Homeland Security, in consultation with the Chief
Acquisition Officer, Chief Procurement Officer, and
Chief Security Officer of the Department of Homeland
Security, determines to be low risk.
(C) If the procurement that is the subject of the
contract at issue is already under investigation by the
Department of Homeland Security or another United
States Government agency and with respect to which such
a disclosure or notification would compromise the
integrity of such investigation.
(b) Database of Federal Contractor Contracts With Covered
Entities.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of Homeland Security
shall establish a public database containing the information
concerning contracts with covered entities disclosed pursuant
to subsection (a). Upon the termination or completion of such a
contract, the contractor with respect to such a contract,
including the immediate owner of such contractor, the highest-
level owner of such contractor, and all first-tier
subcontractors of such contractor, shall be eligible for
removal from such public database.
(2) Exception.--Paragraph (1) shall not apply in the case
of contracts with respect to which compliance with such
paragraph would compromise national security or if information
otherwise subject to disclosure is classified pursuant to
Executive Order 13526.
(c) Authority To Withhold or Terminate Contracts.--The Secretary of
Homeland Security shall terminate an existing contract if the Secretary
determines based on a disclosure made by the contractor, the immediate
owner of such contractor, the highest-level owner of such contractor,
or a first-tier subcontractor of such contractor, that continuation of
such contract violates Federal law or is not in the public's interest.
(d) Suspension and Debarment.--Based on information disclosed
pursuant to this section, the Secretary of Homeland Security may refer
a contractor, the immediate owner of such contractor, the highest-level
owner of such contractor, or a first-tier subcontractor of such
contractor, as appropriate, to the Suspension and Debarment official of
the Department of Homeland Security for suspension or debarment, to
initiate a suspension or debarment proceeding, as such official
determines appropriate.
(c) Definitions.--In this section:
(1) Covered entity.--The term ``covered entity'' means--
(A) the Government of the People's Republic of
China;
(B) the Chinese Communist Party (CCP);
(C) the Chinese military;
(D) an entity owned, directed, controlled,
financed, or influenced directly or indirectly, through
separate contracts or otherwise, by the Government of
the People's Republic of China, the CCP, or the Chinese
military, in which the Government of the People's
Republic of China, the CCP, or the Chinese military has
majority ownership or control or has minority ownership
greater than ten percent of such entity, including any
entity for which the Government of the People's
Republic of China, the CCP, or the Chinese military has
the ability, through ownership of a majority or a
dominant minority of the total outstanding voting
interest in an entity, board representation, proxy
voting, a special share, contractual arrangements,
formal or informal arrangements to act in concert, or
other means, to determine, direct, or decide for an
entity an important matter;
(E) a parent, subsidiary, or affiliate of an entity
described in subparagraph (D); and
(F) an China-based entity with a majority ownership
or control or with minority ownership greater than ten
percent by a covered entity, substantively involved in
People's Republic of China economic or industrial
policies or military-civil fusion, including by
accepting funding, performing services, or receiving
subsidies, or with responsibilities for overseeing
economic development projects, including Made in China
2025 and the Belt and Road Initiative.
(2) Covered information.--The term ``covered information''
means information relating to--
(A) the name of the covered entity;
(B) the extent to which the covered entity has the
ability to act in concert or to determine, direct, or
decide an important matter for a contractor, including
the immediate owner of such contractor, the highest-
level owner of such contractor, and all first tier
subcontractors of such contractor under the awarded
contract, through ownership of a majority or a dominant
minority of the total outstanding voting interest,
board representation, proxy voting, special interest
share, contractual arrangements, or other formal or
informal arrangements;
(C) the date such contract was entered into; and
(D) the duration, including any extensions, of such
contract.
(3) Immediate owner.--The term ``immediate owner'' means an
entity, other than a contractor, that has direct control of the
contractor, including through one or more of the following:
(A) Ownership or interlocking management.
(B) Identity of interests among family members.
(C) Shared facilities and equipment.
(D) Common use of employees.
(4) Highest-level owner.--The term ``highest-level owner''
means an entity that owns or controls an immediate owner of a
contractor, or that owns or controls one or more entities that
control an immediate owner of a contractor, and that is not
owned or controlled by any other entity.
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