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114th Congress   }                                     {        Report
                        HOUSE OF REPRESENTATIVES
 2d Session      }                                     {       114-630

======================================================================
 
              LEVERAGING EMERGING TECHNOLOGIES ACT OF 2016

                                _______
                                

 June 21, 2016.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. McCaul, from the Committee on Homeland Security, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 5389]

    The Committee on Homeland Security, to whom was referred 
the bill (H.R. 5389) to encourage engagement between the 
Department of Homeland Security and technology innovators, and 
for other purposes, having considered the same, reports 
favorably thereon without amendment and recommends that the 
bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     1
Background and Need for Legislation..............................     2
Hearings.........................................................     2
Committee Consideration..........................................     2
Committee Votes..................................................     2
Committee Oversight Findings.....................................     2
New Budget Authority, Entitlement Authority, and Tax Expenditures     3
Congressional Budget Office Estimate.............................     3
Statement of General Performance Goals and Objectives............     3
Duplicative Federal Programs.....................................     3
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     3
Federal Mandates Statement.......................................     3
Preemption Clarification.........................................     3
Disclosure of Directed Rule Makings..............................     4
Advisory Committee Statement.....................................     4
Applicability to Legislative Branch..............................     4
Section-by-Section Analysis of the Legislation...................     4
Changes in Existing Law Made by the Bill, as Reported............     5

                          Purpose and Summary

    H.R. 5389, the ``Leveraging Emerging Technologies Act of 
2016'' encourages engagement between the Department of Homeland 
Security and technology innovators. The bill requires the 
Secretary of Homeland Security to engage with innovative and 
emerging technology developers and firms, including technology-
based small businesses and startup ventures, to address 
homeland security needs. The Secretary may also identify 
geographic areas in the United States where high concentrations 
of innovative and emerging technology developers and firms 
exist. H.R. 5389 allows the Secretary to establish personnel 
and office space in these areas, as appropriate. Finally, the 
bill requires the Secretary, not later than six months 
following the date of enactment of the section, to develop, 
implement, and submit a strategy to proactively engage 
innovative and emerging technology developers and firms.

                  Background and Need for Legislation

    The technology needs of the Department of Homeland Security 
(DHS) and its partners in the Homeland Security Enterprise are 
complex and multi-faceted. To meet these needs, DHS has 
enhanced efforts to cultivate relationships with innovative but 
non-traditional partners by establishing an office in Silicon 
Valley to encourage regular engagement and communication with 
technology developers in the area. Although Silicon Valley is a 
vital hub of technological development, it is not the only hub 
in the United States. The Department's ability to engage 
regional and national thought leaders across the country and 
establish a presence in a similar manner will help it target 
investments and promote proven technologies that address 
homeland security needs. In this vein, requiring the Department 
to consider strategically how it will engage these technology 
developers across the country will strengthen the Department's 
ability to access innovative and emerging technologies in order 
to combat evolving threats. This legislation is intended to 
ensure that DHS fosters sustainable systems, policies and 
procedures to maintain strong engagement with innovative and 
emerging technology developers and firms that continue over 
time

                                Hearings

    No hearings were held on H.R. 5389 in the 114th Congress.

                        Committee Consideration

    The Committee met on June 8, 2016, to consider H.R. 5389, 
and ordered the measure to be reported to the House with a 
favorable recommendation, without amendment, by voice vote.

                            Committee Votes

    Clause 3(b) of Rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto.
    No recorded votes were requested during consideration of 
H.R. 5389.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of Rule XIII of the Rules of the 
House of Representatives, the Committee has held oversight 
hearings and made findings that are reflected in this report.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of Rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
5389, the Leveraging Emerging Technologies Act of 2016, would 
result in no new or increased budget authority, entitlement 
authority, or tax expenditures or revenues.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of Rule XIII of the Rules of the 
House of Representatives, a cost estimate provided by the 
Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974 was not made available to the 
Committee in time for the filing of this report. The Chairman 
of the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of Rule XIII of the Rules of the 
House of Representatives, H.R. 5389 contains the following 
general performance goals and objectives, including outcome 
related goals and objectives authorized.
    This legislation provides for the Department of Homeland 
Security to develop and submit to Congress a strategic plan for 
engaging with innovative technology developers.

                      Duplicative Federal Programs

    Pursuant to clause 3(c) of Rule XIII, the Committee finds 
that H.R. 5389 does not contain any provision that establishes 
or reauthorizes a program known to be duplicative of another 
Federal program.

   Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    In compliance with Rule XXI of the Rules of the House of 
Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of the Rule 
XXI.

                       Federal Mandates Statement

    Pursuant to clause 3(c)(3) of Rule XIII of the Rules of the 
House of Representatives, a cost estimate provided by the 
Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974 was not made available to the 
Committee in time for the filing of this report. The Chairman 
of the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

                        Preemption Clarification

    In compliance with section 423 of the Congressional Budget 
Act of 1974, requiring the report of any Committee on a bill or 
joint resolution to include a statement on the extent to which 
the bill or joint resolution is intended to preempt State, 
local, or Tribal law, the Committee finds that H.R. 5389 does 
not preempt any State, local, or Tribal law.

                  Disclosure of Directed Rule Makings

    The Committee estimates that H.R. 5389 would require no 
directed rule makings.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1.   Short Title.

    This section provides that this bill may be cited as the 
``Leveraging Emerging Technologies Act of 2016''.

Sec. 2.   Innovation Engagement.

    This section requires the Secretary of Homeland Security to 
engage with innovative and emerging technology developers and 
firms, including technology-based small businesses and startup 
ventures to address homeland security needs. The Secretary may 
identify geographic areas in the United States with high 
concentrations of innovative and emerging technology developers 
and firms and may establish personnel and office space in such 
areas, as appropriate.
    The Committee intends to encourage regular engagement with 
innovative or emerging technology developers across the country 
in order to promote an environment for government purchase and 
development of capabilities from the private sector.
    This section allows engagement to include developers and 
firms with proven technologies, supported with outside 
investment, with potential applications for the Department. The 
Committee intends for such engagement to include, but not be 
limited to, startup accelerators as well as businesses 
producing cybersecurity technologies. If the Secretary chooses 
to locate personnel in a certain geographic area, based on this 
Act, this section requires the Secretary to co-locate such 
personnel and office space with other existing assets of the 
Department, where possible, or federal facilities, where 
appropriate.
    This section requires the Secretary to inform Congress 
within 30 days of establishing personneland office space, 
pursuant to this bill.
    This section requires the Secretary to develop a strategic 
plan and submit the plan to Congress within six months. The 
plan must: 1) focus on sustainable methods and guidance to 
build relationships with innovative and emerging technology 
developers and firms to establish, develop, and enhance 
departmental capabilities to address homeland security needs; 
2) include efforts to ensure proven technologies can be 
included in existing and future acquisition contracts, 
coordinate with venture capital organizations for technologies 
expected to be ready for commercialization in the near term, 
and address barriers to the utilization of innovative and 
emerging technologies and the engagement of small businesses 
and startup ventures in the acquisition process; 3) describe 
how the Department plans to leverage proven technologies and 
innovations to address homeland security needs; and 4) include 
the criteria the Secretary plans to use to determine that a 
technology is proven.
    Recognizing that some innovative technology developers or 
firms may not be located in these regional technology hubs, the 
Committee intends for the Department to give attention to 
fostering engagement with innovators that may be located 
outside these areas but nonetheless have technologies that 
could be leveraged by the Department to address homeland 
security needs.
    The Committee intends for the Secretary to carry out 
engagement efforts with innovative or emerging technology 
developers including small businesses and startup ventures, in 
a proactive and strategic manner. The Committee strongly 
believes that for this engagement to make a meaningful impact 
to addressing the homeland security technology gaps within DHS 
and the Homeland Security Enterprise there must be sustainable 
systems, policies, and procedures to ensure that such 
relationships are not ad hoc, informal, or personality-driven.
    The Committee further acknowledges the long-standing 
positive relationship the Department has had with the nonprofit 
In-Q-Tel, originally formed by the Intelligence Community, and 
intends for the Department to seek greater engagement with the 
venture capital community to help commercialize homeland 
security technologies.
    The Committee intends for the Secretary to examine and 
clearly identify barriers to utilizing emerging or innovative 
technology developers, including where the Department lacks 
authority or needs more authority to simplify or streamline the 
procurement process for these developers and ways to improve 
capabilities and reduce costs.
    No additional funds are authorized to be appropriated to 
carry out this Act.

         Changes in Existing Law Made by the Bill, as Reported

    As reported, H.R. 5389 makes no changes to existing law.

                                  [all]