[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1473 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 1473
To amend the Export Control Reform Act of 2018 to establish a
whistleblower incentive program and provide protections to
whistleblowers.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 10, 2025
Mr. Rounds (for himself and Mr. Warner) introduced the following bill;
which was read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
A BILL
To amend the Export Control Reform Act of 2018 to establish a
whistleblower incentive program and provide protections to
whistleblowers.
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 ``Stop Stealing our Chips Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Violations of the export control laws of the United
States, especially the diversion of leading-edge artificial
intelligence chips into countries that are adversaries of the
United States, threaten the national security of the United
States.
(2) Individuals who accurately report violations of United
States export control laws play a significant role in helping
authorities identify and mitigate such threats.
(3) An incentive program that rewards whistleblowers can
significantly enhance enforcement efforts by encouraging
individuals to provide high-value information on potential
violations.
SEC. 3. ESTABLISHMENT OF WHISTLEBLOWER INCENTIVE PROGRAM AND
WHISTLEBLOWER PROTECTIONS.
(a) In General.--The Export Control Reform Act of 2018 (50 U.S.C.
4801 et seq.) is amended by inserting after section 1761 the following:
``SEC. 1761A. WHISTLEBLOWER INCENTIVES AND PROTECTIONS.
``(a) Definitions.--In this section:
``(1) Original information.--The term `original
information' means information that is--
``(A) derived from the independent knowledge or
analysis of a whistleblower;
``(B) not known to the Secretary from any other
source;
``(C) not exclusively derived from an allegation
made in a judicial or administrative hearing, a
governmental report, hearing, audit, or investigation,
or from news media, unless the whistleblower is the
source of such allegation; and
``(D) provided to the Secretary voluntarily,
without any request from the Secretary or any other
government official.
``(2) Whistleblower.--
``(A) In general.--The term `whistleblower' means,
except as provided by subparagraph (B), any individual
(including an individual who is not a United States
citizen) who provides, or 2 or more such individuals
acting jointly who provide, to the Secretary
information relating to a possible violation of this
part or of any regulation, order, license, or other
authorization issued under this part.
``(B) Exclusions.--The term `whistleblower' does
not include--
``(i) a Federal employee acting within the
scope of the duties of the employee; or
``(ii) an individual on the list of
specially designated nationals and blocked
persons maintained by the Office of Foreign
Assets Control of the Department of the
Treasury.
``(b) Whistleblower Incentive Program.--
``(1) Establishment.--Not later than 120 days after the
date of the enactment of this section, the Secretary shall
establish a whistleblower incentive program to reward
individuals who provide original information that leads to the
imposition of fines under this part on persons that violate,
attempt to violate, conspire to violate, or cause a violation
of this part or any regulation, order, license, or other
authorization issued under this part.
``(2) Whistleblower reports.--
``(A) Online portal.--Not later than 120 days after
the date of the enactment of this section, the
Secretary shall develop, implement, and maintain a
secure portal, on a website accessible to the public,
for the reporting of original information relating to
persons that violate, attempt to violate, conspire to
violate, or cause a violation of this part or any
regulation, order, license, or other authorization
issued under this part.
``(B) Anonymity.--
``(i) In general.--As an alternative to
submission through the portal required by
subparagraph (A), an individual may submit a
report of original information under this
subsection anonymously, including through an
attorney.
``(ii) Exception.--The Secretary may
require that the identity of an individual be
disclosed for the individual to receive an
award under paragraph (3).
``(C) Expedited review.--
``(i) Initial review.--Not later than 60
days after the date of receipt of a report from
a whistleblower, the Secretary shall--
``(I) determine whether the report
is credible; and
``(II) if credible, initiate a
formal investigation of the allegations
contained in the report.
``(ii) Investigation.--Unless the Secretary
determines that the investigation is
particularly complex, the Secretary shall
conclude the investigation not later than 180
days after the date on which a formal
investigation has been initiated under clause
(i).
``(iii) Notification.--
``(I) In general.--The Secretary
shall update the whistleblower on the
status of a report and, if applicable,
the related investigation not later
than 30 days after the date on which
the whistleblower submitted the report
and not less frequently than every 30
days thereafter.
``(II) Sensitive information.--The
Secretary may omit from the updates
required by subclause (I) any
information that could compromise an
ongoing investigation.
``(D) Avoidance of frivolous reports.--The
Secretary may prohibit an individual from making
reports under this subsection if the individual has
previously submitted multiple reports under this
subsection that the Secretary determined under
subparagraph (C)(i) were not credible.
``(3) Awards.--
``(A) Eligibility.--Subject to subparagraph (B),
the Secretary may pay an award or awards to any
whistleblower who provided original information that
led to the imposition of a fine under this part on a
person or persons that violated, attempted to violate,
conspired to violate, or caused a violation of this
part or any regulation, order, license, or other
authorization issued under this part.
``(B) Disqualification.--
``(i) In general.--Subject to clause (ii),
the Secretary may not pay an award or awards to
any whistleblower who provides original
information with respect to a person or persons
that violated, attempted to violate, conspired
to violate, or caused a violation of this part
or any regulation, order, license, or other
authorization issued under this part, if such
information was obtained through--
``(I) the role of the whistleblower
as--
``(aa) an officer,
director, trustee, or partner
of an entity that handles
internal processes for legal
violations for the person or
persons;
``(bb) an employee of an
entity that conducts compliance
or internal audits for the
person or persons;
``(cc) an employee of a
public accounting firm if the
information was obtained while
working on an engagement
required by Federal securities
laws, other than specific
audits; or
``(II) any means that violates
Federal or State criminal law.
``(ii) Exceptions.--Clause (i) shall not
apply if--
``(I) the whistleblower had a
reasonable basis to believe that
disclosing the original information to
the Secretary was necessary to stop
conduct likely to cause significant
financial harm;
``(II) the whistleblower had a
reasonable basis to believe that the
relevant entity was obstructing an
investigation into the misconduct; or
``(III) not less than 120 days have
elapsed since the whistleblower
provided the information to the audit
committee, chief legal officer, chief
compliance officer (or their
equivalent) of the relevant entity or
the supervisor of the whistleblower.
``(C) Amount.--
``(i) In general.--An award issued under
subparagraph (A) shall be--
``(I) not less than 10 percent, in
total, of the amount collected of the
fine imposed under this part; and
``(II) not more than 30 percent, in
total, of the amount collected of that
fine.
``(ii) Jointly submitted report.--In the
case of a report that was submitted jointly by
2 or more individuals, any award issued under
subparagraph (A) shall be split equally among
the individuals.
``(D) Determination.--The Secretary shall determine
the amount of an award made under subparagraph (A)
taking into account, with respect to the information
provided--
``(i) accuracy;
``(ii) relevance;
``(iii) timeliness; and
``(iv) usefulness.
``(4) Publication.--
``(A) In general.--Not later than the date on which
the online portal required by paragraph (2)(A) is
complete, the Secretary shall develop and implement a
plan to publicize the whistleblower incentive program
established by paragraph (1).
``(B) Funding.--The Secretary shall pay any
expenses incurred under subparagraph (A) from amounts
authorized to be appropriated to the Bureau of Industry
and Security.
``(c) Protection of Whistleblowers.--
``(1) Prohibition against retaliation.--
``(A) In general.--Except as provided in
subparagraph (B), no employer may discharge, demote,
suspend, threaten, harass, directly or indirectly, or
in any other manner discriminate against a
whistleblower in the terms and conditions of employment
because of a lawful act done by the whistleblower--
``(i) in reporting violations to the
employer or to a law enforcement agency;
``(ii) in providing information to the
Secretary in accordance with this section; or
``(iii) in initiating, testifying in, or
assisting in any investigation or judicial or
administrative action based upon or related to
such information.
``(B) Exception.--The protection against
retaliation established by subparagraph (A) shall not
apply to any individual who reports information under
this section knowing that such information is false.
``(C) Enforcement.--
``(i) Cause of action.--An individual who
alleges discharge or other discrimination in
violation of subparagraph (A) may bring an
action under this paragraph in the appropriate
district court of the United States for the
relief provided in subparagraph (D).
``(ii) Subpoenas.--A subpoena requiring the
attendance of a witness at a trial or hearing
conducted under this subparagraph may be served
at any place in the United States.
``(iii) Statute of limitations.--
``(I) In general.--An action under
this subparagraph shall not be
entertained if commenced more than--
``(aa) 6 years after the
date of the violation of
subparagraph (A) occurred; or
``(bb) 3 years after the
date when facts material to the
right of action are known or
reasonably should have been
known by the employee alleging
a violation of subparagraph
(A).
``(II) Required action within 10
years.--Notwithstanding subclause (I),
an action under this subparagraph may
not in any circumstance be brought more
than 10 years after the date on which
the violation occurs.
``(D) Relief.--Relief for an individual prevailing
in an action brought under subparagraph (C) shall
include--
``(i) reinstatement with the same seniority
status that the individual would have had, but
for the discrimination;
``(ii) 2 times the amount of back pay
otherwise owed to the individual, with
interest; and
``(iii) compensation for litigation costs,
expert witness fees, and reasonable attorneys'
fees.
``(2) Confidentiality.--
``(A) In general.--Except as provided in
subparagraphs (B) and (C), the Secretary and any
officer or employee of the Department of Commerce shall
not disclose any information, including information
provided by a whistleblower to the Secretary, that
could reasonably be expected to reveal the identity of
the whistleblower, except in accordance with the
provisions of section 552a of title 5, United States
Code, unless and until required to be disclosed to a
defendant or respondent in connection with a public
proceeding instituted by the Secretary or any entity
described in subparagraph (D).
``(B) Exempted statute.--For purposes of section
552 of title 5, United States Code, this paragraph
shall be considered a statute described in subsection
(b)(3)(B) of such section.
``(C) Rule of construction.--Nothing in this
section is intended to limit, or shall be construed to
limit, the ability of the Attorney General to present
such evidence to a grand jury or to share such evidence
with potential witnesses or defendants in the course of
an ongoing criminal investigation.
``(D) Availability to government agencies.--
``(i) In general.--Without the loss of its
status as confidential in the hands of the
Secretary, all information referred to in
subparagraph (A) may, in the discretion of the
Secretary, when determined by the Secretary to
be necessary to accomplish the purposes of this
part or any regulation, order, license, or
other authorization issued under this part, be
made available to--
``(I) a Federal law enforcement
agency;
``(II) a national security agency;
``(III) an appropriate regulatory
authority;
``(IV) a self-regulatory
organization; and
``(V) a foreign law enforcement
authority.
``(ii) Confidentiality.--
``(I) In general.--Each of the
entities described in subclauses (I)
through (IV) of clause (i) shall
maintain such information as
confidential in accordance with the
requirements established under
subparagraph (A).
``(II) Foreign authorities.--Each
of the entities described in clause
(i)(V) shall maintain such information
in accordance with such assurances of
confidentiality as the Secretary
determines appropriate.
``(d) Export Compliance Accountability Fund.--
``(1) Establishment.--Not later than 90 days after the date
of the enactment of this section, there shall be established in
the Treasury of the United States a fund to be known as the
`Export Compliance Accountability Fund' (in this subsection
referred to as the `Fund').
``(2) Availability.--At the end of each fiscal year, any
amounts deposited into the Fund under paragraph (3) that remain
in the Fund after the payment, for that fiscal year, of all
expenses under paragraph (3) shall be transferred to the
general fund of the Treasury.
``(3) Use of fund.--The Fund shall be available to the
Secretary, without further appropriation or fiscal year
limitation, for--
``(A) paying awards to whistleblowers as provided
in subsection (b)(3);
``(B) funding activities that support the
whistleblower incentive program and whistleblower
protections, including--
``(i) reviewing and investigating
whistleblower reports;
``(ii) providing training and education on
compliance with the confidentiality requirement
under subsection (c)(2); and
``(iii) record keeping, as considered
necessary by the Secretary; and
``(C) if all outstanding awards under subsection
(b)(3) have been paid, expenses related to enforcement
of this part or any regulation, order, license, or
other authorization issued under this part.
``(4) Deposits and credits.--There shall be deposited into
or credited to the Fund an amount equal to any fine collected
by the Secretary on or after the date of the enactment of this
section in any judicial or administrative action brought by the
Secretary that depends on or was initiated because of original
information submitted by a whistleblower.
``(e) Initial Funding.--The Secretary shall pay, from amounts
otherwise available to the Bureau of Industry and Security, any
expenses incurred under this section before the Export Compliance
Accountability Fund is established under subsection (d) and has
received deposits under paragraph (3) of that subsection.''.
(b) Conforming Amendment.--Section 1402(b)(1)(B) of the Victims of
Crime Act of 1984 (34 U.S.C. 20101(b)(1)(B)) is amended--
(1) in clause (iii), by striking ``; and'' and inserting a
semicolon;
(2) in clause (iv), by striking the semicolon and inserting
``; and''; and
(3) by adding at the end the following;
``(v) the Export Compliance Accountability
Fund pursuant to section 1761A(e) of the Export
Control Reform Act of 2018.''.
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