‘GAMBMECAULAMCCAUT 026300. Weber mek Mo provide a curfeation of ron applicability for regulation and prkibiton relating to sensitive perstnal data uner Tigrational Biergeney Eco romie Povers Ae, and for oer purposes. IN THE HOUSE OF REPRESENTATIVES Mr MeCsc intrsaced the following bil which was refered to the Commitee on ‘To provide a clarification of non-applicability for regulation and probibition relating to sensitive personal data under International Emergency Economie Powers Act, and for other purposes. 1 Brat enavted by the Senats and House of Representa- tives ofthe United States of America in Congress assembled, SECTION 1, SHORT TYTLE AND TABLE OF CONTENTS. 2 3 4 (a) Sone Trris.—This Act may be cited as the 5 “Detersing America’s Technological Adversaries Act” or 6 “DATA Act” AL ecAaBCAB tat HET) Faoey2s e094 a)(G2NOIEWICCAULAMCCAUL 025 x6, 1 3 4 5 6 1 8 9 10 n R B 2 (b) Taste oF Conrants—The table of contents for this Act is as follows: Se. 1. Short tle nd nbs of cote Se 2, Figs fee 8, Antharaton of approprana fee 4, Seely. fe 8. Dfnitina TITLE ICLARIFICATION OP NON-APPLICADILITY FOR REGULA- "THON AND PROIMIBITION RELATING TO SENSITIVE PERSONAL Bis ACT ‘Se 102 Diet ‘TTR IMPOSITION OF SANCTIONS ON CERTAIN TRANS: ACTIONS RELATING 70 CONNECTED SOFTWARE APPLICATIONS Sie 201. Inpesin of ntine ‘Se 202, Scnton dosed S200. Sane {NOLE IIL-SPECIFIC DETERDINATIONS WITH RESPECT TO THE DDIPOSITION OP SANCTIONS ‘Sim, 801, Deterninationrting to Bytodancy, Ui, TATE, und vel ent Se 302, Raper erp onal ot SEC. 2, FINDINGS, Congress finds the following: (1) On December 2, 2022, the Director of the Federal Bureau of Investigation, Christopher Wray, stated, “We. . do have national security concerns about the app [‘TikTok}. Its parent company is con- tolled by the Chinese government. And it gives them the potential to leverage the app in ways that T think should coneern us. . .One, it gives them the ability to control the recommendation algorithm ‘hich allows them to manipulate content and if they Fonanaesaacesan[GAMAIBWCCAULAMCCAUL 028 XML 3 want to, to use it for influenee operations which are 4 lot more worrisome in the hands of the Chinese Communist Party than whether or not you're steer- ing somebody as an influeneer to one produet or an- other. They also have the ability to collect data ‘through it on users which ean be used for traditional espionage operations, for example. ‘They also have the ability on it to get access, they have essentially access to the software to deviees, So you're talking ‘about millions of deviees and that gives them the ability to engage in different kinds of malicious eyber activity through that. And so all of these ‘things are in the hands of a government that doesn’t share our values and that has a mission that's very much at odds with what's in the best interest of the United States that that should concern ws.” (2) On December 8, 2022, the Direetor of Na- tional Intelligence, Avril Haines, “It is extraordinary the degree to which China, in particular, but they're not the only ones, obviously, are developing just frameworks for collecting foreign data and pulling it in and their eapacity to then turn that around and use it to target audiences for information campaigns: ‘or for other things, bnt: alsa to have it for the fate AMMLERLESESAS Bh and BRT Fey 24 028 (034 an)‘oaunuswccAULMCcA 19 see. L926 ML 4 so that they ean use it for a variety of means that: they're interested in.”, (8) On December 16, 2022, the Director of Central Intelligence, Bill Burns, stated, “I think it's 2 genmine coneern, . for the US. government, in the sense that, because the parent company of ‘TikTok is a Chinese company, tie Chinese govern- ment is able to insist upon extracting the private data of a lot of TikTok users ix this country, and also to shape the content of what goes on to TikTTok: as well to suit the interests of the Chinese leader- ship. . What I would underscore, though, is that it’s gonuinely troubling to see what the Chinese gov- ‘ernment could do to manipulate Tik'Tok.”. , 20: (4) On December both chambers of Congress passed a bipartisan spending bill that in- cluded a ban on using TikTTok from government de- 3, AUTHORIZATION OF APPROPRIATIONS. No additional amounts are authorized to be made 21 available to earry out this Aet. 22 see. 4. SEVERABILITY, If any provision of this Act or its application to any’ 24 person or eireumstanee is held invalid, the invalidity does 25 not affect other provisions or applications of this section pivczetzscezes act am 8877 etna 288 tata)CGAMMIEMCCAULMCCAUT. 026 XM 1 that ‘ean be given effect without the invalid provision or 2 application, and to this end the provisions of this Act are: 3. severable. 4 SBC. 5. DEFINITIONS. 5 In this Act: 6 (1) AGENoY on INSTRUMENTALITY OF A FOR: 7 EIGN srare—The term “ageney or instrumentality 8 of a foreign state” has the meaning given sueh term 9 under section 1603(b) of title 28, United States 10 Code. nl (2) APPROPRIATE CONGRESSIONAL cosnT- 12 TEES—The term “appropriate congressional eom- 13. mittees” menns— 4 (A) the Committee on Forsign Affairs, 15 Committee on Ways and Means, and the Com- 16 mittee on Financial Services of the House of "7 Representatives; and 18 (B) the Committee on Foreign Relations 19 and the Committee on Banking, Housing, and 20 Urban Affairs of the Senate. a (3) Crsmva—The term “China” means— 2 (A) when used in the geographie sense, the 2B country of the People’s Republic of China; and ” (B) otherwise, the Government of the 25 country of the People’s Republic of China, in- gqucaracpomeceramt —(aetyCGANMIBMCCAULIMCCAUL. 026 XML 10 u 12 13 4 15 16 1 18 19 20 21 2 23 24 25 6 cluding any entity acting on betalf of, or the benefit of — (i) the country of the People’s Repub- lie of Ching; or ii) the Government of the country of the People's Republie of China. SOFTWARE APPLICATION — ‘The term “connected software application” has the meaning given such term in Exeentive Order 14034 (86 Fed. Reg. 31423; relating to protecting Ameri- cans’ sensitive data from foreign adversaries). (5) ELECTION INTERFERENCE IN OR AGAINS? A FOREIGN COUNTRY THAT I8 A TREATY ALLY OF THE, UNITED STATES OR A DEMOCRATIC OR EMERGING DEMOCRATIC PARTNER OF THE UNITED STATES— ‘The term “lection interference in or against. a for eign county that is a treaty ally of the United States or a democratic or emerging democratic part ner of the United States” means actims to engage in, direetly or indirestly, sctvities originating from, or directed by, persons located, in whole or in sub- stantial part, outside the tersitory of a treaty ally of the United States or a democratic or emerging democratic partner of the United States that have the purpose or effect of tampering with, altering, un- acommenocoiecctam —esa87m) Fobcayat 03634 am)(GAM IEWICCAULAMCCAUL, 026M. 10 ul 2 B 4 15 16 7 18 19 20 2 2 23 4 25 7 lawfully accessing, oF causing a misappropriation of information with the purpose or effeet of interfering with or undermining election processes or instita- tions (6) Buscrion INTERFEREXCE IN OR AGAINST THE UNITED STATES—The tam “election inter forenee in or against the United States” includes ac- tions to engage in, directly or indirectly, activities originating from, or direeted by persons located, in whole or in substantial part, outside the United States that— (A) have the purpose or effect of tam- pering with, altering, unlawfully accessing, or ‘causing & misappropriation of information with ‘the purpose or effect of unclermining election processes or institutions; (B) deny aceess, block, degrade, or alter lection and campaign infiastructure, oF related systems or data related to rolitieal parties, ean- didates in eletions for public office, the adiuin- istration of elections for public offiee, or any public election activity; or (©) consist of the making of eoutributions or donations, or any other activity prohibited under section 319 of the Federal Election Cam- umcemeavoeeecerent been(GsMnSCCAULAMCCAUL026XML, 8 paign Act of 1971 (52 US.C. 30121), with the 2 purpose or effect of undermining election proc 3 cesses or institutions 4 (7) Fortien PsRsox.—The term “foreign per~ 5 son" 6 (A) means a person that is not @ United 7 States person; and 8 (B) includes @ nonresident alien individual, 9 foreign corporation, foreign partnership, foreign 10 trust, foreign estate, uN (8) Kxowineny—The term “knowingly”, with 12 respeet to conduet, a circumstance, or a result, 13 means that a person has actual knowledge, or should 14 have mown, of the conduet, the cieumstanee, or the 15 result. 16 (9) Sensrrive PERSONAL DaTA—The term 17 “sensitive personal data” has the meaning given 18 such term in soetion 7.2 of tie 15, Cole of Federal 19 Regulations (or any successor regulation) 20 (10) ‘TReaTy ALLY OF THE UNITED stam 21 The term “treaty ally of the United States” means 22 a foreign country that is @ party to any of the fol- 23 lowing: 24 (A) The North Atlantic Treaty, signed at 25 Washington, April 4, 1949, guucernneenatetnt gear Fearn 26205 04am(GAMMIBMICCAULIMCCAUTL.026 XML. 9 (B) The Security ‘Treaty Between Aus- tralia, New Zealand, and the United States of Ameriea, signed at San Franciseo, September 4, 1981 (©) The Mutual Defense Treaty Between ‘the United States of Ameriea ani the Republic of the Philippines, signed at Washington, An- gust 80, 1951, (D) The Southeast Asia Collective Defense ‘Treaty, signed at Manilla, September 8, 1954. (6) The Treaty of Mutual Ccoperation and Security Between the United States of America and Japan, signed at Washington, Jannary 19, 1960. (F) The Mutual Defense Treaty Bedveen the United States of America ané the Republic of Korea, signed at Washington, October 1, 1953 (1 Usire eevee Peso, ‘The term “United States person” means— (A) a United States citizen; (B) « pormanent resident alin; (©) an entity organized under the laws of the United States (including foreign branches); or Franny 203 estar(G2 IEWICCAULIMCCAUTL025XML, 10 u 12 13 4 15 16 0 18 19 20 2 2 2B 24 25 10 (D) any person in the Unized States. TITLE I—CLARIFICATION OF NON-APPLICABILITY FOR REGULATION AND PROHIBI- TION RELATING TO SEN- SITIVE PERSONAL DATA UNDER INTERNATIONAL EMERGENCY ECONOMIC POw- ERS ACT ‘SBC. 101. CLARIFICATION. (a) Iv Gexerat.—The importation to a country, or the exportation from a country, of sensitive personal data shall not constitute the importation from a country, or the exportation to a country, of information or informational materials for purposes of paragraph (1) or (8) of section 208(b) of the International Emergeney Beouomie Powers Act (50 U.S.C. 1702). (0) Rous oF Coxstavcriox—Notting in sub- sestion (a), and nothing in the Interationel Emergency Economie Powers Act, may be construed to provide for the application of paragraph (1) or (3) of seetion 203(b) of the International Emergeney Beonomie Powers Act (50 U.S.C. 1702(b)) to the importation to China, or the expor- tation from Ching, diveetly or indirectly, of sensitive per- sonal data, ‘givacamnenaraeacett steer) Fryar somaoat a25 a SEC. 102, DIRECTIVE. Not later than 180 days after the date of the enact- iment of this Act, the Seeretary of the Treasury shall issue a directive prohibiting United States persons from engag- ing in any transaetion with @ person that the Seeretary of the Treasury determines knowingly provides or may transfor sensitive personal date of persons subject to ‘United States jurisdiction to any foreign person that— (1) is subject to the jurisdiction or direction of, or directly or indiveetly operating on behalf of, China; or (2) is owned by, direetly or indirectly controlled by, or is otherwise subject to the influence of China, TITLE U—IMPOSITION OF SANC- TIONS ON CERTAIN TRANS- ACTIONS RELATING TO CON- NECTED SOFTWARE APPLICA- TIONS SEC. 201. IMPOSITION OF SANCTIONS. (a) IN GeNERAL—The President shell impose the sanetion deseribed in section 202 with respect to any for- ign person that, on or after the date of the enactment of this Act, knowingly — (1) operates, directs, or otherwise deals in a conneeted software application that— sgucocmizgccazs 2am 82577 Pitranac so eaten)‘GAM IFWACCAULIMCCAUL. 025M, 2 (A) is subject to the jurisdiction or diree- tion of, or directly or indirectly operating on be- half of China, or is owned by, direetly or indi~ rectly controlled by, or otherwise subject to the influence of China; and (B) is reasonable believed to have facili- tated or may be facilitating or ecntributing to China’s— (i) military, intelligence, espionage, or weapons proliferation activities; Gi) censorship activities; (i) suveillanee activities, (Gv) control or use of recommendation algorithms that are capable of manipu- lating content; (¥) malicious eyber activities; or (vi) use of data to target audiences for information campaigns; (2) divectly or indireetiy orders, controls, di- reets, engages in, or otherwise facilitates an act of lection interference against the United States; (3) diteetly or indirectly orders, controls, di- reets, engages in, or otherwise facilitates an act of lection interference in or against a foreign countay: that is— pinconatzscentesoctom —s2577 ear 228 ear)eer aneen 13 (A) a treaty ally of the United States; or (B) a democratic or emerging democratic partner of the United Statas; (4) directly or indizeetly orders, controls, di- reets, engages in, or otherwise facilitates an act of steering United States poliey and regulatory deci- sions in favor of China's strategie objectives, to the detriment of the eeonomie or national seeurity of the United States; (6) knowingly facilitates a transaction or trans- ictions for or on behalf of a person deseribed, or a person that has engaged in the activity described, as the ease may be, in paragraph (1), (2), (8), or (2; (6) knowingly assists, sponsors, or provides f- nancial, material, or technological support for a per- son deseribed, or a person that has engaged in the activity described, as the ease maybe, in paragraph (1), (2), (8), ov (4); or (7) is owned or controlled by, or has acted for or on behalf of, direetly or indivectiy, a person de- sevibed, oF a person that has engaged in the activity Aoseribed, as the ease may’ be, in paragraph (1), (2), (8), or (4). UM CUDA ROK dae Peano 20090248)‘GayNIBMICCAULAMCCAUI.025XML, 1 2 cratic on EM cry (b) Lisr oF Forsicy Counts Tuar Ane Dswo- BRGING DEMOCRATIC PARTNERS OF THE 3. UNITED Srares— (1) Is Gexerat.—Not later than 90 days after the date of the enactment of this Act, the President shall submit to the appropriate congressional com- rmittees— (A) a definition of the term “democratic or emerging democratic partner of the United States”; and (B) a list of foreign countries that are des- ignated as a democratic or emerging democratic part subseetion (a)(3) that includes the countries listed in paragraph (2). (2) INITIAL DESIGNATIONS —Sweden, Switzer- ll be deemed to land, Israel, India, and Taiwan st have been so designated as a demoeratie or emerging emocratic partner of the United States for pur- poses of subseetion (a)(3). (3) Urpares.—The President shall submit. to the appropriate congressional committees an up- ated list under subparagraph (A) on a periodic basis givmccantzsomaace' amt eons Fitness nooneCGaMBMCCAULIMCCAUL. 026M, 16 1 SEC. 202, SANCTION DESCRIBED. (a) Ix GENERAL—The sanetion deseribed in this section is the exereise of all powers granted to the Presi- dent by the International Emergency Beonomie Powers 2 3 4 5 Act (50 USC. 1701 et seq.) (except that the require- 6 ments of section 202 of such Act (50 U.S.C. 1701) shall 7. not apply) to the extent necessary to block and prohibit 8 all transactions in all property and interests in property 9 of any foreign person or an ageney or instrumentality of 10 a forcign state, as the case may be, if such property and 11. interests in property are in the United States, come within 12 the United States, or are or come within the possession 13 or control of a United States person, 14 (b) Larteweyrartox.—The President may exercise 15. all authorities provided under sections 208 and 205 of the 16 International Emergency Heonomie Powers Act (50 17 USC. 1702 and 1704) to earry out this ttle. 18 (¢) Reavuarions. 19 (1) Ty GexRAL—tThe President shall pre- 20 seribe such regulations as may be necessary for the 21 implementation of this tite, 2 (2) Pron pRmBeING REQuIRED—Not later 23 than 10 days before the prescription of regulations 24 under paragraph (1), the President shall brief the 25 appropriate congressional committees regarding the casmicoiesc et (65771 Fema 24 2250348)(GaynIBWICCAULAMCCAUL. 02561, viol by th 16 proposed regulations and the provisions of this title ‘that such regulations are implementing. (a) PENaLtTes —A person that violates, attempts to te, or causes a violation of any sanction authorized his ttle, or any regulation, license, or order issued to set forth in subsections (b) and (e) of section 206 of the International Emergeney Eeonomie Powers Act (60 us. .C. 1705) to the same extent as a person that commits 2 3 4 5 6 carry ont such sanetions, shall be subject to the penalties 7 8 9 0 wnlayful act deseribed in subsection (a) of that seetion. (e) EXcEPTions—The following activities shall not 2. be subject to the imposition of sanetions under this title: (1) Any authorized intelligence, Imv enforce. ment, or national seeurity activities of the United States. (2) Any transaction necessary to comply with United States obligations under the Agreement: be- ‘tween the United Nations and the United States of America regarding the Headquarters of the United States, signed at Lake Sucvess June 26, 1947, and centered into foree November 21, 1947, or the Con- vention on Consular Relations, done at Vienna April 24, 1968, and entered into foree March 19, 1967, or any other United States international agreement. gquacaraanocaie cata ase,(GAYNIEMICCAULAMCCAUL, 025.0. Ww (®) Warven—the President may, on a case-by-case basis and for periods not to exceed 180 days each, waive the application of sanctions imposed with respect to a for~ ign person under this title if the President certifies to the appropriate congressional committees, not later than 15 days botore such waiver isto take effec, that the waiv- er is vital to the national seeuity interests of the United States sc, 20, SUNSET. This ttle, and the authorities provided by this title, shall terminate on the date that is 5 years after the date of the enactment of this Act. TITLE IJ—SPECIFIC DETER- MINATIONS WITH RESPECT TO THE IMPOSITION OF SANC- TIONS SEC. $01, DETERMINATION RELATING TO BYTEDANCE, LED, TIKTOK, AND RELATED ENTITIES. (a) IN GexeraL.—Not later than 90 days after the date of the enactment of this Act, and every 180 days ‘thereafter for 8 years, the President shall transmit to the appropriate congressional committees @ determination of whether reasonable grounds exist for concluding that any of the entities deseribed in subsection (b)— pm.caszeasoeaateiant —(eenm{Ga¥NIsWICCAULMCCAUT. 026xML, as 1 (1) meets the criteria deseribed in paragraph 2 (2) oF (2) of sestion 102 for purposes of applying a 3 diveetive described in such section with respect to 4 the entity; or 5 (2) have engaged in any conduet described in 6 seetion 201. 7 (b) Ermmips Descrpen.—The entities deseribed in 8 this subsection are— 9 () Bytodanee, Lt 10 (2) TikTok; u (8) any subsidiary of or a successor to an entity 12 aeseribed in paragraph (1) or (2); and 3 (4) any entity owned or controlled diveetly or 14 indirectly by an entity deseribed in paragraph (1), 15 (2), or (3) 16 (ec) Forx.—'The determination deseribed in sub- 17 section (a) shall be transmitted in unclassified form, and 18 any supporting documentation may be transmitted in a 19 classified annes. 20 (d) Apticarion oF SancrIoxs.—If the President 21 makes an affirmative decision under subscetion (a) with 22 respect to any entity deseribed in subsection (b), the Presi- 23 dent shall impose the sanction deseribed in section 202 24 with respect to the entity, as appropriate. ertcozmagsentes ated tea etna sn ota)(GAVNISIICCAULIMCCAUL, 026M, 19 1 SBC, 902, REQUESTS BY APPROPRIATE CONGRESSIONAL 2 COMMITTEES. 3 (a) IN GeNERaL.—Not later than 120 days after re- 4 eeiving a request from the chairperson or ranking member 5 of one or more of the appropriate congressional commit- 6 tees with respect to whether a foreign parson meets the 7 criteria deseribed in paragraph (1) or (2) of section 102 8 for parposes of applying a directive deseribed in such see- 9 tion with respect to the person, or have engaged in any 10 conduct deseribed in section 201 for the imposition of the 11. sanetion deseribed in section 202, the President shall— 2 (1) determine if that person meets the require- 13 ments deseribed in the applicable seetion; and 4 (2) submit to the chairperson and ranking 15 member of the committee or committees a report 16 that ineludes— "7 (A) a statement of whether or not the 18 President imposed or intends to impose such 19 sanetion with respeet to the person; and 20 (B) if applicable, a description of the sane- a tion so imposed or intended to be imposed. 22 (b) AVatLammary oF INroruation — 2B (2) Iy GENERAL.—Any information obtained at 24 any time with respect to the President making a de- 25 termination with respect to a foreign person under 26 subsection (a), or under any review of the foreign givcaansscenesaetamt (882677) ote 24200 (094 a)‘GAM ISWICCAULAMCCAUL, 026M 20 person through other United States Government na- tional seeusity review processes, shall be made avail- able to a committee or subcommittee of Congress of appropriate jurisdiction, upon the request of the chairman or ranking minority member of such eom- anittee or subeommittee (2) Promprsiox oN prsctosuRE.—No such committee or subeommitte, or member thereof, may disclose any information made available under clause (}, that is submitted on a confidential basis unless the full committee determines that the withholding of that information is contrary to the national inter est (©) Fora —Each determination deseribed in. sub- 15 section (a)(1), and each report under subsection (a)(2), 16 may 17 any bbe submitted in classified or unclassified form, and supporting documentation to such determination or 18. report may contain a classified annes. uiccosstentotencatant (eet)