,i #aagth ,,congress #b;d ,session ,h4 ,r4 #gcjb ,,in ,,the ,,house ,,of ,,representatives ,march #cj1 #bjbb,mr4 ,pfluger 7for himself1 ,mr4 ,mc,caul1 ,mr4 ,gimenez1 ,mr4 ,mc,kinley1 and ,mrs4 ,miller-,meeks7 introduced the following bill2 which was referred to the ,committee on ,foreign ,affairs1 and in addition to the ,committees on ,financial ,services1 ,oversight and ,reform1 and the ,judiciary1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to impose sanctions with respect to designated critical cyber threat actors1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,cyber ,deterrence and ,response ,act of #bjbb4 #b4 ,actions to address state-sponsored cyber activities against the ,united ,states 7a7 ,designation as a critical cyber threat actor 7#a7 ,in general ,the ,president1 acting through the ,secretary of ,state1 and in coordination with the heads of other relevant ,federal departments and agencies1 shall designate as a critical cyber threat actor-- 7,a7 each foreign person and each agency or instrumentality of a foreign state that the ,president determines to be knowingly responsible for or complicit in1 or have engaged in1 directly or indirectly1 state-sponsored cyber activities originating from1 or directed by persons located1 in whole or in substantial part1 outside the ,united ,states that are reasonably likely to result in1 or have contributed to1 a significant threat to the national security1 foreign policy1 or economic health or financial stability of the ,united ,states and that have the purpose or effect of-- 7i7 causing a significant disruption to the availability of a computer or network of computers2 7ii7 harming1 or otherwise significantly compromising the provision of service by1 a computer or network of computers that support one or more entities in a critical infrastructure sector2 7iii7 significantly compromising the provision of services by one or more entities in a critical infrastructure sector2 7iv7 causing a significant misappropriation of funds or economic resources1 trade secrets1 personal identifiers1 health or financial information for commercial or competitive advantage or private financial gain2 7v7 destabilizing the financial sector of the ,united ,states by tampering with1 altering1 or causing a misappropriation of data2 7vi7 causing a significant disruption to the energy sector of the ,united ,states by tampering with or altering data or equipment necessary for the operation of the energy sector in the ,united ,states2 or 7vii7 interfering with or undermining election processes or government institutions by tampering with1 altering1 or causing misappropriation of data2 7,b7 each foreign person that the ,president has determined to have knowingly1 significantly1 and materially assisted1 sponsored1 or provided financial1 material1 or technological support for1 or goods or services to or in support of1 any activities described in subparagraph 7,a7 by a foreign person or agency or instrumentality of a foreign state designated as a critical cyber threat actor under subparagraph 7,a72 7,c7 each agency or instrumentality of a foreign state that the ,president has determined to have significantly and materially assisted1 sponsored1 or provided financial1 material1 or technological support for1 or goods or services to or in support of1 any activities described in subparagraph 7,a7 by a foreign person or agency or instrumentality of a foreign state designated as a critical cyber threat actor under subparagraph 7,a72 and 7,d7 any person determined by the ,president to be responsible for or complicit in1 or to have engaged in1 the receipt or use for commercial or competitive advantage or private financial gain1 or by a commercial entity1 outside the ,united ,states of data or information1 including trade secrets1 misappropriated through cyber-enabled means1 knowing they have been misappropriated1 where the misappropriation of such trade secrets is reasonably likely to result in1 or has materially contributed to1 a significant threat to the national security1 foreign policy1 or economic health or financial stability of the ,united ,states or personal safety of ,american citizens4 7#b7 ,transmission to congress ,not later than #g calendar days after designating a foreign person or agency or instrumentality of a foreign state as a critical cyber threat actor under paragraph 7#a71 the ,president shall transmit to the appropriate congressional committees in classified or unclassified form a report identifying the designee4 7b7 ,non-,travel-,related sanctions 7#a7 ,in general ,the ,president shall impose one or more of the applicable sanctions described in paragraph 7#b7 with respect to each foreign person and each agency or instrumentality of a foreign state designated as a critical cyber threat actor under subsection 7a74 7#b7 ,sanctions described ,the sanctions described in this paragraph are the following3 7,a7 ,the ,president may provide for the withdrawal1 limitation1 or suspension of non-humanitarian ,united ,states development assistance under chapter #a of part ,i of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #baea et seq474 7,b7 ,the ,president may provide for the withdrawal1 limitation1 or suspension of ,united ,states security assistance under part ,,ii of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bcja et seq474 7,c7 ,the ,president may direct the ,united ,states executive director to each international financial institution to use the voice and vote of the ,united ,states to oppose any loan from the international financial institution that would benefit the designated foreign person or the designated agency or instrumentality of a foreign state4 7,d7 ,the ,president may direct the ,united ,states ,international ,development ,finance ,corporation1 or any other ,united ,states ,government agency not to approve the issuance of any 7or a specified number of7 guarantees1 insurance1 extensions of credit1 or participation in the extension of credit4 7,e7 ,the ,president may1 pursuant to such regulations or guidelines as the ,president may prescribe1 prohibit any ,united ,states person from purchasing or selling any publicly traded securities1 or any publicly traded securities that are derivative of such securities or are designed to provide investment exposure to such securities or investing in or purchasing significant amounts of equity or debt instruments of the designated foreign person4 7,f7 ,the ,president may1 pursuant to procedures the ,president shall prescribe1 which shall include the opportunity to appeal actions under this subparagraph1 prohibit any ,united ,states agency or instrumentality from procuring1 or entering into any contract for the procurement of1 any goods1 technology1 or services1 or classes of goods1 technology1 or services1 from the designated foreign person or the designated agency or instrumentality of a foreign state4 7,g7 ,the ,president may terminate-- 7i7 sales to that country under the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgea et seq47 of any defense articles1 defense services1 or design and construction services2 and 7ii7 sales to that country of any item on the ,united ,states ,munitions ,list maintained pursuant to part #aba of title #bb1 ,code of ,federal ,regulations4 7,h7 ,the ,president may prohibit the entity and1 when acting for or on the entity's behalf1 its successors1 assigns1 directors1 officers1 employees1 representatives1 or agents1 from directly or indirectly participating in transactions involving any commodity1 software1 or technology subject to ,united ,states jurisdiction under the ,export ,administration ,regulations 7,,ear7 or any other activity subject to the ,,ear1 including-- 7i7 applying for1 obtaining1 or using any license1 license exception1 or export control document2 7ii7 carrying out negotiations concerning1 ordering1 buying1 receiving1 using1 selling1 delivering1 storing1 disposing of1 forwarding1 transporting1 financing1 or servicing in any way any item exported or to be exported from the ,united ,states that is subject to the ,,ear2 and 7iii7 benefitting in any way from any transaction involving any item exported or to be exported from the ,united ,states that is subject to the ,,ear4 7,i7 ,the ,president may prohibit any person1 whether a ,united ,states or non-,united ,states person1 from engaging in the following activities1 either directly or indirectly1 with the entity3 7i7 ,exporting or reexporting to or on behalf of the entity any item subject to the ,,ear4 7ii7 ,facilitating the acquisition or attempted acquisition by the entity of the ownership1 possession1 or control of any item subject to the ,,ear that has been or will be exported from the ,united ,states1 including financing or other support activities related to a transaction whereby the entity acquires or attempts to acquire such ownership1 possession or control4 7iii7 ,acquiring from or facilitating the acquisition or attempted acquisition from the entity or any item subject to the ,,ear that has been exported from the ,united ,states4 7iv7 ,obtaining from the entity in the ,united ,states any item subject to the ,,ear with knowledge or reason to know that the item will be1 or is intended to be1 exported from the ,united ,states4 7v7 ,engaging in any transaction to service any item subject to the ,,ear that has been or will be exported from the ,united ,states and which is owned1 possessed1 or controlled by the entity if such service involves the use of any item subject to the ,,ear that has been or will be exported from the ,united ,states 7for purposes of this paragraph service means installation1 maintenance1 repair1 modification1 or testing74 7,j7 7i7 ,the ,president may exercise all of the powers granted to the ,president under the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq47 7except that the requirements of section #bjb of such ,act 7#ej ,u4,s4,c4 #agja7 shall not apply7 to the extent necessary to block and prohibit all transactions in property and interests in property of the designated foreign person if such property and interests in property are in the ,united ,states1 come within the ,united ,states1 or are or come within the possession or control of a ,united ,states person4 7ii7 ,the penalties provided for in subsections 7b7 and 7c7 of section #bjf of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agje7 shall apply to a person that violates1 attempts to violate1 conspires to violate1 or causes a violation of regulations prescribed under clause 7i7 to the same extent that such penalties apply to a person that commits an unlawful act described in subsection 7a7 of such section #bjf4 7,k7 ,the ,president may1 pursuant to such regulations as the ,president may prescribe1 prohibit any transfers of credit or payments between one or more financial institutions or by1 through1 or to any financial institution1 to the extent that such transfers or payments are subject to the jurisdiction of the ,united ,states and involve any interest of the designated foreign person4 7c7 ,travel-,related sanctions 7#a7 ,aliens ineligible for visas1 admission1 or parole ,an alien who is designated as a critical cyber threat actor under subsection 7a7 is-- 7,a7 inadmissible to the ,united ,states2 7,b7 ineligible to receive a visa or other documentation to enter the ,united ,states2 and 7,c7 otherwise ineligible to be admitted or paroled into the ,united ,states or to receive any other benefit under the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aaja et seq474 7#b7 ,current visas revoked ,the issuing consular officer1 the ,secretary of ,state1 or the ,secretary of ,homeland ,security 7or a designee of either such ,secretaries7 shall revoke any visa or other entry documentation issued to the foreign person designated as a critical cyber threat actor under subsection 7a7 regardless of when issued4 ,a revocation under this clause shall take effect immediately and shall automatically cancel any other valid visa or entry documentation that is in the possession of such foreign person4 7d7 ,additional sanctions with respect to foreign countries 7#a7 ,in general ,the ,president may impose any of the sanctions described in paragraph 7#b7 with respect to the government of each country that the ,president has determined aided1 abetted1 or directed a foreign person or agency or instrumentality of a foreign state designated as a critical cyber threat actor under subsection 7a74 7#b7 ,sanctions described ,the sanctions referred to in paragraph 7#a7 are the following3 7,a7 ,the ,president may provide for the withdrawal1 limitation1 or suspension of non-humanitarian or non-trade-related assistance ,united ,states development assistance under chapter #a of part ,i of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #baea et seq474 7,b7 ,the ,president may provide for the withdrawal1 limitation1 or suspension of ,united ,states security assistance under part ,,ii of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bcja et seq474 7,c7 ,the ,president may instruct the ,united ,states ,executive ,director to each appropriate international financial institution to oppose1 and vote against the extension by such institution of any loan or financial assistance to the government of the country4 7,d7 ,no item on the ,united ,states ,munitions ,list 7maintained pursuant to part #aba of title #bb1 ,code of ,federal ,regulations7 or the ,commerce ,control ,list set forth in ,supplement ,no4 #a to part #ggd of title #ae1 ,code of ,federal ,regulations1 may be exported to the government of the country or any entity under its influence1 control1 or ownership4 7,e7 7i7 ,no intrusion software or ,,ip network communications surveillance systems or related items that are subject to the ,export ,administration ,regulations1 whether or not enumerated on the ,commerce ,control ,list1 may be exported1 reexported1 or transferred1 directly or indirectly1 to the government of the country or any entity under its influence1 control1 or ownership4 7ii7 ,for purposes of this subparagraph1 the terms intrusion software and ,,ip network communications mean any-- 7,i7 systems1 equipment1 or components specially designed for the generation1 operation or delivery of1 or communication with1 with intrusion software2 7,,ii7 software specially designed or modified for the development or production of such systems1 equipment or components2 7,,iii7 software specially designed for the generation1 operation or delivery of1 or communication with1 intrusion software2 technology required for the development of intrusion software2 and 7,,iv7 internet protocol network communications surveillance systems or equipment and test1 inspection1 production equipment1 specially designed components therefor1 and development and production software and technology therefor4 7e7 ,implementation ,the ,president may exercise all authorities provided under sections #bjc and #bje of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agjb and #agjd7 to carry out this section4 7f7 ,coordination ,to the extent practicable-- 7#a7 actions taken by the ,president pursuant to this section should be coordinated with ,united ,states allies and partners2 and 7#b7 the ,secretary of ,state should work with ,united ,states allies and partners1 on a voluntary basis1 to lead an international diplomatic initiative to-- 7,a7 deter critical cyber threat actors and state-sponsored cyber activities2 and 7,b7 provide mutual support to such allies and partners participating in such initiative to respond to such state-sponsored cyber activities4 7g7 ,exemptions1 waivers1 and removals of sanctions and designations 7#a7 ,mandatory exemptions ,activities subject to the reporting requirements of title ,v of the ,national ,security ,act of #aidg 7#ej ,u4,s4,c4 #dac et seq471 and any authorized intelligence activities of the ,united ,states1 shall be exempt from the imposition of sanctions under this section4 7#b7 ,waiver ,the ,president may waive1 on a case-by-case basis1 the imposition of sanctions described in this section for a period of not more than #a year1 and may renew such waiver for additional periods of not more than #a year1 if the ,president transmits to the appropriate congressional committees a written determination that such waiver meets one or more of the following requirements3 7,a7 ,such waiver is in the national interests of the ,united ,states4 7,b7 ,such waiver will further the enforcement of this ,act or is for an important law enforcement purpose4 7,c7 ,such waiver is for an important humanitarian purpose4 7#c7 ,removals of sanctions and designations ,the ,president may prescribe rules and regulations for the removal of sanctions under subsections 7b71 7c71 and 7d7 and the removal of designations under subsection 7a7 if the ,president determines that a foreign person1 agency or instrumentality of a foreign state1 or government of a country subject to such sanctions or such designations1 as the case may be1 has verifiably ceased its participation in any of the conduct with respect to which such foreign person1 agency or instrumentality of a foreign state1 or government was subject to such sanctions or designation1 as the case may be1 under this section1 and has given assurances that such foreign person1 agency or instrumentality of a foreign state1 or government1 as the case may be1 will no longer participate in such conduct4 7#d7 ,exception to comply with united nations headquarters agreement ,sanctions under subsection 7c7 shall not apply to a foreign person if admitting such foreign person into the ,united ,states is necessary to permit the ,united ,states to comply with the ,agreement regarding the ,headquarters of the ,united ,nations1 signed at ,lake ,success ,june #bf1 #aidg1 and entered into force ,november #ba1 #aidg1 between the ,united ,nations and the ,united ,states1 or other applicable international obligations4 7h7 ,rule of construction ,nothing in this section may be construed to limit the authority of the ,president under the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq47 or any other provision of law to impose sanctions to address critical cyber threat actors and malicious state-sponsored cyber activities4 7i7 ,definitions ,in this section3 7#a7 ,admitted2 alien ,the terms admitted and alien have the meanings given such terms in section #aja of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aaja74 7#b7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7,a7 the ,committee on ,foreign ,affairs1 the ,committee on ,financial ,services1 the ,committee on the ,judiciary1 the ,committee on ,oversight and ,reform1 and the ,committee on ,homeland ,security of the ,house of ,representatives2 and 7,b7 the ,committee on ,foreign ,relations1 the ,committee on ,banking1 ,housing1 and ,urban ,affairs1 the ,committee on the ,judiciary1 and the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate4 7#c7 ,agency or instrumentality of a foreign state ,the term agency or instrumentality of a foreign state has the meaning given such term in section #afjc7;b7 of title #bh1 ,united ,states ,code4 7#d7 ,critical infrastructure sector ,the term critical infrastructure sector means any of the designated critical infrastructure sectors identified in the ,presidential ,policy ,directive entitled ,critical ,infrastructure ,security and ,resilience1 numbered #ba1 and dated ,february #ab1 #bjac4 7#e7 ,foreign person ,the term foreign person means a person that is not a ,united ,states person4 7#f7 ,foreign state ,the term foreign state has the meaning given such term in section #afjc7;a7 of title #bh1 ,united ,states ,code4 7#g7 ,knowingly ,the term knowingly1 with respect to conduct1 a circumstance1 or a result1 means that a person has actual knowledge1 or should have known1 of the conduct1 the circumstance1 or the result4 7#h7 ,misappropriation ,the term misappropriation means taking or obtaining by improper means1 without permission or consent1 or under false pretenses4 7#i7 ,state-sponsored cyber activities ,the term state-sponsored cyber activities means any malicious cyber-enabled activities that-- 7,a7 are carried out by a government of a foreign country or an agency or instrumentality of a foreign state2 or 7,b7 are carried out by a foreign person that is aided1 abetted1 or directed by a government of a foreign country or an agency or instrumentality of a foreign state4 7#aj7 ,united states person ,the term ,united ,states person means-- 7,a7 a ,united ,states citizen or an alien lawfully admitted for permanent residence to the ,united ,states2 or 7,b7 an entity organized under the laws of the ,united ,states or of any jurisdiction within the ,united ,states1 including a foreign branch of such an entity4