,i  #aaith ,,congress  #b;d ,session    
,h4 ,r4 #hghg  ,,in ,,the ,,house ,,of  
,,representatives  ,may #ac1 #bjbf,mr4  
,cline 7for himself1 ,mr4 ,moolenaar1   
,mr4 ,moore of ,alabama1 ,mr4 ,crane1   
,mr4 ,self1 and ,mr4 ,fitzgerald7       
introduced the following bill2 which was
 referred to the ,committee on ,armed   
,services  ,a ,,bill  ,to prohibit the  
,secretary of ,defense from contracting 
with retailers who use covered payment  
processing equipment1 systems1 or       
services1 and for other purposes4  #a4  
,short title ,this ,act may be cited as 
the ,servicemember ,payment ,data       
,privacy and ,security ,act4  #b4       
,elimination of use of certain payment  
processing equipment1 systems1 or       
services  7a7 ,review ,not later than   
#ahj days after the date of the         
enactment of this section1 the          
,secretary of ,defense shall complete a 
review of all retailers to determine if 
such retailers use covered equipment1   
systems1 or services as a substantial or

 essential component of the performance 
of a contract to provide payment        
processing equipment1 systems1 or       
services for the ,department of         
,defense4  7b7 ,guidance ,not later than
 #ij days after completing the review   
required by subsection 7a71 the         
,secretary of ,defense shall issue      
guidance prohibiting the use of covered 
equipment1 systems1 or services by a    
retailer in a contract with the         
,department of ,defense4 ,such policy   
and guidance shall direct the           
modification or termination of such a   
contract unless the retailer for such   
contract ceases use of covered          
equipment1 systems1 or services in a    
timely manner4  7c7 ,prohibition        
,effective ,january #a1 #bjbg1 the      
,secretary of ,defense may not enter    
into a contract for payment processing  
equipment1 systems1 or services with a  
retailer that uses covered equipment1   
systems1 or services as a substantial or
 essential component of the performance 

of such contract4  7d7 ,report ,not     
later than one year after the date of   
the enactment of this section1 the      
,secretary of ,defense shall submit to  
the ,committees on ,armed ,services of  
the ,house of ,representatives and the  
,senate a written report on the         
implementation on the requirements of   
this section4  7e7 ,definitions ,in this
 section3  7#a7 ,country of concern ,the
 term country of concern means-- 7,a7   
,china2  7,b7 ,russia2  7,c7 the        
,islamic ,republic of ,iran2  7,d7      
,north ,korea2 and  7,e7 any other      
country designated by the ,secretary of 
,defense1 as posing a significant risk  
to the national security of the ,united 
,states4  7#b7 ,covered equipment1      
system1 or service ,the term covered    
equipment1 system1 or service-- 7,a7    
means a payment processing equipment1   
system1 or service for which the        
application processor1 source code1     
secure processor1 or secure firmware is 
directly or indirectly developed1       

manufactured1 provided1 owned1          
controlled1 or operated by--  7i7 an    
entity organized under the laws of a    
country of concern2  7ii7 an entity     
owned or controlled by the government of
 a country of concern2  7iii7 an entity 
subject to the direction1 jurisdiction1 
or control of the government1 military1 
or intelligence services of a country of
 concern2  7iv7 any subsidiary1         
affiliate1 or successor entity of an    
entity described in clauses 7i7 through 
7iii72 or  7v7 an entity that the       
,secretary of ,defense reasonably       
believes to be an entity owned or       
controlled by1 or otherwise connected   
entity owned or controlled by a country 
of concern2 and  7,b7 includes payment  
processing equipment1 systems1 or       
services substantially comprised of     
components1 software1 or technology     
supplied by an entity described in any  
of clauses 7i7 through 7v7 of           
subparagraph 7,a74  7#c7 ,electronic    
fund transfer ,the term electronic fund 

transfer-- 7,a7 means any transfer of   
funds1 other than a transaction         
originated by check1 draft1 or similar  
paper instrument1 which is initiated    
through an electronic terminal 7as      
defined in section #ijc of the          
,electronic ,fund ,transfer ,act 7#ae   
,u4,s4,c4 #afic;a771 telephone1 or      
computer or magnetic tape so as to      
order1 instruct1 or authorize a         
financial institution to debit or credit
 an account2 and  7,b7 includes         
point-of-sale transfers1 automated      
teller machine transactions1 and direct 
deposits or withdrawals of funds from an
 account4  7#d7 ,payment processing     
equipment1 system1 or service ,the term 
payment processing equipment1 system1 or
 service means--  7,a7 a card1 code1 or 
other means of access to a consumer's   
account1 or any combination thereof1    
that may be used by the consumer to     
initiate electronic fund transfers2 or  
7,b7 an electronic device1 other than a 
telephone operated by a consumer1       

through which a consumer may initiate an
 electronic fund transfer4  7#e7        
,retailer ,the term retailer has the    
meaning given in section #dffd of title 
#aj1 ,united ,states ,code4