,i #aaith ,,congress #ast ,session ,h4 ,r4 #fegf ,,in ,,the ,,house ,,of ,,representatives ,december #aj1 #bjbe,mr4 ,krishnamoorthi introduced the following bill2 which was referred to the ,committee on ,energy and ,commerce1 and in addition to the ,committees on ,oversight and ,government ,reform1 and ,transportation and ,infrastructure1 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 restrict the use of foreign adversary ,li,d,a,r in the ,united ,states4 #a4 ,short title ,this ,act may be cited as the ,stopping ,adversaries ,from ,exploiting ,li,d,a,r ,act of #bjbe or the ,,safe ,li,d,a,r ,act4 #b4 ,findings ,congress finds the following3 7#a7 ,li,d,a,r technologies are critical to the successful development and deployment of autonomous vehicles1 defense systems1 critical infrastructure1 robotic systems1 and advanced manufacturing systems1 as well as other important emerging innovations4 7#b7 ,the ,chinese ,communist ,party seeks to dominate ,li,d,a,r technologies1 which are critical not only for military advancements1 but to the ,people's ,republic of ,china's broader efforts to undermine the national security of the ,united ,states4 7#c7 ,foreign adversary dominance of ,li,d,a,r technologies1 and the widespread use of such technologies in the ,united ,states1 creates profound opportunities for such adversaries to engage in espionage1 technical compromise1 and the disruption of sensitive supply chains1 presenting an unacceptable threat to our ,nation's security4 #c4 ,prohibition 7a7 ,in general 7#a7 ,limitation on future transactions ,except as otherwise provided under subsections 7b71 7c71 or 7d71 beginning on the date that is three years after the date of enactment of this ,act1 a covered person1 or any person knowingly engaging in a transaction with or on behalf of a covered person1 shall not engage in a transaction that results in the use of covered foreign adversary light detection and ranging technology in the ,united ,states4 7#b7 ,limitation on critical infrastructure or federal government use ,except as otherwise provided under subsections 7b71 7c71 or 7d71 a critical infrastructure operator or ,federal ,government entity shall not use covered foreign adversary light detection and ranging technology in the ,united ,states-- 7,a7 in the case of a product or system in use by such user prior to the date of enactment of this ,act1 beginning on the date that is #e years after the date of enactment2 or 7,b7 in the case of a product or system not in use by such user on the date of enactment of this ,act1 beginning on the date of enactment of this ,act4 7b7 ,waiver 7#a7 ,in general ,the ,secretary of ,commerce may waive the prohibition under-- 7,a7 subsection 7a77#a7 if he determines1 on a case-by-case basis that-- 7i7 the issuance of such a waiver is in the national interest of the ,united ,states2 or 7ii7 that the failure to issue such waiver would-- 7,i7 cause undue hardship to a given ,united ,states customer or user of a given covered foreign adversary light detection and ranging technology that is disproportionate to the national security benefit achieved through the application of the prohibition2 and 7,,ii7 such waiver is non-renewable and the duration of such waiver does not exceed three years2 and 7,b7 subsection 7a77#b71 on a case-by-case basis1 if he determines that the issuance of such a waiver is-- 7i7 in the national security interests of the ,united ,states2 or 7ii7 necessary to avoid the cessation of a critical infrastructure or government function1 and the operator or entity providing such function enters into a mitigation agreement with the ,secretary outlining a plan for eliminating the prohibited technology or1 if elimination is impracticable1 mitigating the national security risks associated with its continued use4 7#b7 ,procedure ,not later than the effective date of any prohibition under this ,act1 the ,secretary of ,commerce shall establish procedures and regulations governing the issuance of waivers under this subsection4 7c7 ,exemptions 7#a7 ,in general ,the prohibitions under subsection 7a7 shall not apply in the case of-- 7,a7 testing1 evaluation1 or cybersecurity activities by or on behalf of the ,united ,states ,government2 7,b7 the acquisition of a covered foreign adversary light detection and ranging technology for academic or research purposes2 7,c7 the acquisition of a covered foreign adversary light detection and ranging technology for purposes of integration into a product manufactured1 assembled1 or otherwise developed in the ,united ,states1 provided such products are exported outside of the ,united ,states and such covered foreign adversary light detection and ranging technology is not used in the ,united ,states2 or 7,d7 the use of a product1 including an airplane or automobile1 containing a covered foreign adversary light detection and ranging technology in contexts where the principal purpose of such usage is the provision of passenger or cargo transportation services between the ,united ,states and a different country4 7#b7 ,legacy products and systems ,the prohibitions under subsection 7a77#a7 shall not apply in the case of-- 7,a7 a discrete product in use within the ,united ,states prior to the date on which said prohibition is effective1 or any covered foreign adversary light detection and ranging technology subsequently necessary to replace a covered foreign adversary light detection and ranging technology in said product2 or 7,b7 the resale1 lease1 or use of any product containing covered foreign adversary light detection and ranging technology if such technology was integrated into said discrete product prior to the effective date of a relevant prohibition under this ,act4 7d7 ,extension 7#a7 ,in general ,the ,secretary of ,commerce shall grant a two-year extension of the effective date of the prohibition under subsection 7a77#a7 in the event that he determines that alternative sources of light detection and ranging technology are produced in an insufficient quantity to meet domestic demand4 ,following an initial extension1 additional extensions of #ahj days may be granted1 but only upon a de novo finding of the ,secretary of ,commerce of insufficient alternative supplies prior to the issuance of each such extension4 7#b7 ,review ,any extension under paragraph 7#a7 shall be subject to challenge for factual error in a district court of competent jurisdiction4 7e7 ,rules of construction ,nothing in this ,act shall be interpreted to-- 7#a7 preclude1 preempt1 or abridge the establishment of any other limitation or restriction on covered foreign adversary light detection and ranging technology established under other authorities1 including but not limited to such limitations or restrictions that may be promulgated pursuant to ,state law or existing or future authorities of the ,secretary of ,commerce or the ,office of ,information and ,communications ,technology and ,services2 7#b7 permit an existing joint venture1 licensing agreement1 technology partnership1 or other comparable contractual arrangement with a company that produces1 designs1 or otherwise controls covered foreign adversary light detection and ranging technology to be expanded by means of a prohibited transaction2 or 7#c7 prohibit the use of covered foreign adversary light detection and ranging technology by a ,united ,states person utilizing such technology outside of the ,united ,states4 #d4 ,limitation on adversary partnerships 7a7 ,in general 7#a7 ,limitation ,except as provided for under subsections 7b7 or 7c71 beginning on the date of enactment of this ,act1 it shall be unlawful for any covered person1 or person knowingly engaging in a transaction with or on behalf of a covered person1 to enter into any joint venture1 licensing agreement1 technology partnership1 or other comparable contractual arrangement with a company that produces1 designs1 or otherwise controls covered foreign adversary light detection and ranging technology for the purpose of-- 7,a7 manufacturing1 assembling1 or developing light detection and ranging technology that is or is derivative of covered foreign adversary light detection and ranging technology for use in the ,united ,states2 7,b7 licensing intellectual property of a covered foreign adversary light detection and ranging technology for use in products intended to be used in the ,united ,states2 or 7,c7 facilitating the design1 production1 or deployment of light detection and ranging technology for use in the ,united ,states4 7#b7 ,rule of construction ,the limitation described in paragraph 7#a7 shall not be interpreted to limit ventures1 agreements1 partnerships1 or other arrangements that involve the use of covered foreign adversary light detection and ranging technology in the ,united ,states for research purposes1 or in connection with the development1 manufacturing1 or assembly of products that are intended for export and that will not be sold or leased in the ,united ,states4 7b7 ,exception ,notwithstanding subsection 7a71 a person1 including a covered person1 is permitted to-- 7#a7 engage in a transaction and enter into an agreement that results in an adversary affiliation termination event with respect to a covered foreign adversary light detection and ranging technology2 and 7#b7 fulfill any existing responsibilities or obligations under any joint venture1 licensing agreement1 technology partnership1 or other comparable contractual arrangement established prior to the date of enactment of this ,act1 except in the case of such a venture1 agreement1 partnership1 or other arrangement that was entered into with the intent of frustrating a material purpose of this ,act4 7c7 ,presumption ,a joint venture1 licensing agreement1 technology partnership1 or other comparable contractual arrangement described under subsection 7a77#a7 shall be presumed to be intended to frustrate a material purpose of this ,act if entered into during the #ahj-;day period immediately preceding the date of enactment of this ,act1 except as otherwise demonstrated by a preponderance of the evidence4 #e4 ,enforcement 7a7 ,enforcement of ,prohibitions 7#a7 ,civil penalty ,any covered person who violates1 attempts to violate1 conspires to violate1 or causes any knowing violation of section #c7;a7 shall be subject to a civil penalty not to exceed the amount set forth under section #agje of title #ej1 ,united ,states ,code4 7#b7 ,injunctive relief ,the ,secretary of ,commerce may seek a declaratory judgment requiring any person 7including1 but not limited to1 a covered person or a critical infrastructure operator7 who violates1 attempts to violate1 conspires to violate1 or causes any violation of section #c to cease1 unwind1 or otherwise terminate any violative transaction1 use1 or action in furtherance of the foregoing4 ,such an action may be brought in any district court of competent jurisdiction or the district court for the ,district of ,columbia4 7b7 ,enforcement of ,limitation ,any joint venture1 licensing agreement1 technology partnership1 or comparable contractual arrangement in violation of section #d may be blocked1 unwound1 or otherwise prohibited4 7c7 ,procedure ,prior to any enforcement action under this ,act1 the ,secretary of ,commerce shall provide the violating party with a written explanation of the violative conduct specifying the laws and regulations allegedly violated and the amount or nature of the proposed penalty or action1 and notifying the recipient of a right to make a written petition within #cj days as to why a penalty should not be imposed or such action should not be undertaken4 7d7 ,non-,exclusivity of ,remedies ,nothing in this section shall be interpreted to limit or abridge such other enforcement authorities of the ,federal ,government that may exist pursuant to other authorities4 #f4 ,transition mitigation 7a7 ,assistance to ,customers and ,users 7#a7 ,program ,not later than #ij days after the date of enactment1 the ,secretary of ,commerce shall establish and thereafter maintain a program to-- 7,a7 conduct outreach to stakeholders to facilitate compliance with this ,act2 7,b7 issue guidance on compliance1 and incorporate feedback from end users impacted by the ,act into such guidance2 and 7,c7 establish procedures for entities to seek waivers or clarifications under this ,act4 7#b7 ,autonomous vehicle and robotics expertise ,the ,secretary of ,commerce shall designate not less than two individuals1 one of whom must have substantial expertise in autonomous driving systems and one of whom must have substantial expertise in robotics1 responsible for accepting and reviewing petitions by customers or users of covered foreign adversary light detection and ranging technology that develop products that incorporate such technology who contend that their development or production of such product is dependent on continued access to the prohibited technology1 and to-- 7,a7 determine whether such contentions are supported by technical evidence1 and if so proven1 whether a waiver of such prohibition would be in the national interest of the ,united ,states2 and 7,b7 suggest technical benchmarks or other indicators that would warrant a recission or extension of such a waiver4 7b7 ,advisory ,opinions ,upon petition of a customer or user likely to be impacted by this ,act1 the ,secretary of ,commerce shall issue advisory opinions regarding whether their continued use of covered foreign adversary light detection and ranging technology is likely to warrant a waiver under this ,act1 which shall be provided to such a customer or user not later than #ahj days after the submission of such a request4 7c7 ,national ,security ,task ,force 7#a7 ,in general ,not later than #ij days after the date of enactment of this ,act1 the ,secretary shall establish and thereafter maintain a task force to address the national security risks associated with covered foreign adversary light detection and ranging technology-- 7,a7 that remains in use following the effective dates of prohibitions under this ,act1 whether by means of waiver1 exemption1 extension1 or violation2 or 7,b7 that is in use during the period of time following the date of enactment and the relevant effective dates of prohibitions under this ,act4 7#b7 ,mandate ,the task force shall-- 7,a7 engage with customers and users of covered foreign adversary light detection and ranging technology regarding national security risks and potential partial mitigation measures2 and 7,b7 work with appropriate elements of the ,intelligence ,community and law enforcement to1 in appropriate instances1 share information with such customers and users regarding national security risks associated with their use of foreign adversary light detection and ranging technology4 #g4 ,definitions 7a7 ,adversary affiliation termination event 7#a7 ,criteria ,the term adversary affiliation termination event shall refer to a transaction and agreement that constitutes a full and absolute divestment of any interest in a foreign adversary light detection and ranging technology1 or full and absolute sale of any interest in a company that controls such technology1 provided such transaction and agreement-- 7,a7 is approved by the ,secretary of ,commerce pursuant to paragraph 7#b72 7,b7 results in a person or group of persons who are not affiliated with a foreign adversary country 7whether by domicile1 citizenship1 principal place of business1 or otherwise7 obtaining full control over the corresponding technology1 or as applicable1 company2 7,c7 eliminates any national security threat associated with such technology1 including the transmission of any data collected or processed by the technology to a foreign adversary country2 and 7,d7 results in a full transfer of any intellectual property in such technology to a person in the ,united ,states or a country otherwise designated as a trusted partner of the ,united ,states pursuant to a notice and comment rulemaking of the ,secretary of ,commerce1 except to the extent such a designation would contradict subsection 7e74 7#b7 ,approval ,the ,secretary of ,commerce shall only issue an approval under the preceding paragraph if the petitioning applicant demonstrates by clear and convincing evidence that the corresponding termination event eliminates the national security threat associated with such technology and results in full control of such technology1 including any intellectual property or data collected or processed by the technology1 by persons not affiliated with a foreign adversary country4 7#c7 ,review ,any determination of the ,secretary of ,commerce under paragraph 7#b7 may be challenged in a district court of competent jurisdiction by an impacted party1 including a company1 or any shareholder thereof1 that operates in a similar or related business as a petitioning party4 7b7 ,covered person 7#a7 ,in general ,the term covered person shall refer to any person that directly or indirectly engages in commerce or other activities that facilitate commerce-- 7,a7 related to light detection and ranging technology2 7,b7 related to products1 services1 or infrastructure that contain1 may contain1 incorporate1 or facilitate the production or development of such technology2 or 7,c7 that routinely utilizes light detection and ranging technology1 or routinely utilizes products or services that contain1 may contain1 incorporate1 or facilitate the production or development of such technology1 in their ordinary course of business4 7#b7 ,limitation ,the term covered person shall not be interpreted to include a natural person that utilizes a product containing covered foreign adversary light detection and ranging technology for personal or incidental business purposes1 without the intent to circumvent or otherwise abridge a material purpose of this ,act4 7#c7 ,evasion ,the term covered person shall be interpreted to include any corporate or other structure established or operated with the primary intent of circumventing a material purpose of this ,act4 7c7 ,covered foreign adversary light detection and ranging technology 7#a7 ,in general ,the term covered foreign adversary light detection and ranging technology shall refer to any sensor1 system1 hardware1 software1 or integrated component that uses light detection and ranging to collect1 process1 or interpret environmental data1 including by means of a pulsed or modulated laser1 if such technology was developed1 distributed1 and manufactured by-- 7,a7 a foreign person that is domiciled in1 is headquartered in1 has its principal place of business in1 or is organized under the laws of a foreign adversary country2 7,b7 an entity with respect to which a foreign person or combination of foreign persons described in subparagraph 7,a7 directly or indirectly own at least a #be percent stake2 or 7,c7 a person subject to the direction or control of a foreign person or entity described in subparagraph 7,a7 or 7,b74 7#b7 ,exception ,the term covered foreign adversary light detection and ranging technology does not include a technology that no longer constitutes a foreign adversary light detection and ranging technology as a result of an adversary affiliation termination event4 7d7 ,critical infrastructure operator 7#a7 ,in general ,the term critical infrastructure operator shall refer to any operator1 or contractor acting on behalf of an operator1 of critical infrastructure as such term is interpreted by the ,secretary of ,commerce pursuant to the public notice required under paragraph 7#b74 7#b7 ,public notice ,not less than annually1 the ,secretary of ,commerce shall publish a document1 using the definition provided for under section #eaie;c7e7 of title #db1 ,united ,states ,code1 describing the sectors or1 as appropriate1 functions that are considered critical infrastructure for purposes of this ,act4 7#c7 ,minimum required sectors ,the annual document required under paragraph 7#b71 without prejudice to such other sectors or functions that the ,secretary of ,commerce may designate1 shall in all cases include-- 7,a7 the operation or inspection of water1 wastewater1 power1 or other electric utilities or related generation or transmission infrastructure2 7,b7 the use of digital technology1 data1 and connected systems to coordinate municipal or other similar functions1 including the operation of systems commonly known as smart city systems or systems to regulate traffic or other related functions2 or 7,c7 the operation or inspection of an airport1 seaport1 railway1 or other transportation asset4 7e7 ,foreign adversary country ,the term foreign adversary country means the ,people's ,republic of ,china1 the ,russian ,federation1 the ,islamic ,republic of ,iran1 and the ,democratic ,people's ,republic of ,korea4 #h4 ,reporting requirement ,not later than one year after the date of enactment of this ,act1 and annually thereafter1 the ,secretary of ,commerce shall submit a report to ,congress1 which may contain a classified annex1 that describes-- 7#a7 all regulatory or enforcement actions undertaken pursuant to the ,act2 7#b7 any waivers granted under the ,act1 including identifying information regarding the products and persons subject to such waivers2 7#c7 emerging national security threats related to light detection and ranging technology2 and 7#d7 any efforts of the ,people's ,republic of ,china1 or an entity based therein1 to circumvent or otherwise frustrate a material purpose of this ,act4