,,ii #aaith ,,congress #b;d ,session ,s4 #eedh ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #bd1 #bjbf,mr4 ,mc,cormick 7for himself1 ,mr4 ,gallego1 ,mr4 ,cornyn1 and ,mr4 ,fetterman7 introduced the following bill2 which was read twice and referred to the ,committee on ,homeland ,security and ,governmental ,affairs ,a ,,bill ,to prohibit ,federal procurement of certain optical transceivers1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,securing ,national ,security ,systems from ,chinese ,optical ,transceivers ,act of #bjbf4 #b4 ,prohibitions on the procurement of certain optical transceivers ,section #eidi of the ,james ,m4 ,inhofe ,national ,defense ,authorization ,act for ,fiscal ,year #bjbc 7,public ,law #aag-bfc2 #da ,u4,s4,c4 #dgac note7 is amended-- 7#a7 in subsection 7a7-- 7,a7 by striking semiconductor products or services each place it appears and inserting semiconductor products or services or covered optical transceivers2 and 7,b7 in paragraph 7#b77;,a7-- 7i7 in clause 7iii7-- 7,i7 by striking the effective date and inserting the applicable effective date2 and 7,,ii7 by striking 2 or and inserting a semicolon2 7ii7 in clause 7iv71 by striking the period and insert 2 or2 and 7iii7 by adding at the end the following new clause3 7v7 to prohibit or limit the authority of the head of an executive agency to procure or obtain any parts1 products1 or services that include a covered optical transceiver for a system that is not a critical system4 2 7#b7 in subsection 7b71 by striking on a date later than the effective date described in subsection 7c7 each place it appears and inserting of the prohibitions under subsection 7a72 7#c7 in subsection 7c7-- 7,a7 in paragraph 7#a7-- 7i7 by striking ,the prohibitions under subsection 7a7 and inserting the following3 7,a7 ,covered semiconductor products and services ,the prohibitions under subsection 7a71 as they apply to covered semiconductor products and services1 2 and 7ii7 by adding to the end the following new subparagraph3 7,b7 ,covered optical transceivers ,the prohibitions under subsection 7a71 as they apply to covered optical transceivers1 shall take effect five years after the date of the enactment of the ,securing ,national ,security ,systems from ,chinese ,optical ,transceivers ,act of #bjbf4 2 and 7,b7 in paragraph 7#b7-- 7i7 by striking ,not later than and inserting the following3 7,a7 ,in general ,not later than 2 and 7ii7 by adding at the end the following new subparagraph3 7,b7 ,updates to regulations to account for covered optical transceivers ,not later than three years after the date of the enactment of the ,securing ,national ,security ,systems from ,chinese ,optical ,transceivers ,act of #bjbf1 the ,federal ,acquisition ,regulatory ,council shall-- 7i7 update regulations prescribed under subparagraph 7,a7 to apply such regulations to covered optical transceivers2 7ii7 in such regulations1 apply the limitations and restrictions described in subsection 7h7 to covered optical transceivers to the same extent that such limitations and restrictions apply to covered semiconductor products and services1 except-- 7,i7 paragraph 7#a77;,b7 of subsection 7h7 shall not apply to covered optical transceivers2 7,,ii7 references in subsection 7h7 to covered entities shall include1 with respect to covered optical transceivers1 any entity that supplies a covered optical transceiver2 and 7,,iii7 the disclosure requirements described in paragraphs 7#b7 and 7#c7 of subsection 7h7 shall only apply to an entity that supplies covered optical transceivers if the entity knows1 or has reason to know1 a part1 product1 or service includes a covered optical transceiver2 and 7iii7 in such regulations1 include provisions to ensure that the limitations and restrictions applicable to covered optical transceivers do not require1 and are not satisfied only by1 the use of proprietary vendor-authentication features that would prevent the procurement or use of an optical transceiver that is not a covered optical transceiver solely on the basis that it is procured or supplied by an entity other than the manufacturer of the host equipment4 4 7#d7 in subsection 7d7-- 7,a7 by redesignating paragraphs 7#a7 and 7#b7 as subparagraphs 7,a7 and 7,b71 respectively2 7,b7 by moving such subparagraphs1 as so redesignated1 #b ems to the right2 7,c7 by striking ,not later than #bgj days after the effective date described in subsection 7c77#a7 and inserting the following3 7#a7 ,in general ,not later than #bgj days after the effective date described in subsection 7c77#a77;,a7 2 and 7,d7 by adding at the end the following new paragraph3 7#b7 ,update to report and briefing ,not later than #bgj days after the date described in subsection 7c77#a77;,b71 the ,director of the ,office of ,management and ,budget1 in coordination with the ,director of ,national ,intelligence and the ,national ,cyber ,director1 shall update the report and briefing provided under paragraph 7#a7 to address-- 7,a7 the implementation of the prohibitions under subsection 7a7 as they apply to covered optical transceivers1 including any challenges in such implementation2 and 7,b7 the effectiveness and utility of the waiver authority under subsection 7b7 as it applies to covered optical transceivers4 2 7#e7 in subsection 7e7-- 7,a7 in paragraph 7#a7-- 7i7 by redesignating subparagraphs 7,a7 and 7,b7 as clauses 7i7 and 7ii71 respectively2 and 7ii7 by moving such clauses1 as so redesignated1 #b ems to the right2 7,b7 in paragraph 7#d7-- 7i7 by redesignating subparagraphs 7,a7 through 7,c7 as clauses 7i7 through 7iii71 respectively2 and 7ii7 by moving such clauses1 as so redesignated1 #b ems to the right2 7,c7 by redesignating paragraphs 7#a7 through 7#e7 as subparagraphs 7,a7 through 7,e71 respectively2 7,d7 by moving such subparagraphs1 as so redesignated1 #b ems to the right2 7,e7 by striking ,not later than #ahj days and inserting the following3 7#a7 ,semiconductor products and services ,not later than #ahj days 2 7,f7 by adding at the end the following new paragraph3 7#b7 ,optical transceivers ,not later than #ahj days after the date of the enactment of the ,securing ,national ,security ,systems from ,chinese ,optical ,transceivers ,act of #bjbf1 the ,secretary of ,commerce1 in coordination with the ,secretary of ,defense1 the ,secretary of ,homeland ,security1 the ,director of ,national ,intelligence1 and the ,secretary of ,energy and1 to the greatest extent practicable1 leveraging relevant previous analyses and assessments1 shall-- 7,a7 conduct an analysis of optical transceiver design and production capacity domestically and by allied or partner countries required to meet the needs of the ,federal ,government2 7,b7 assess the risk posed by the presence of covered optical transceivers in ,federal systems2 7,c7 assess the risk posed by the presence of covered optical transceivers in the supply chains of ,federal contractors and subcontractors1 including for non-,federal systems2 7,d7 develop a strategy-- 7i7 to improve the availability of domestic optical transceiver design and production capacity required to meet the requirements of the ,federal ,government2 7ii7 to support optical transceiver suppliers seeking to contract with domestic1 allied1 or partner optical transceiver producers and to improve supply chain traceability1 including to meet the prohibitions under subsection 7a72 and 7iii7 to either certify the feasibility of implementing such prohibitions or exercising waiver authorities under subsection 7b71 to ensure uninterrupted ,federal ,government access to required optical transceivers2 and 7,e7 provide the results of the analysis1 assessment1 and strategy developed under subparagraphs 7,a7 through 7,d7 to the ,federal ,acquisition ,security ,council4 2 7#f7 in subsection 7g7-- 7,a7 in paragraph 7#a7-- 7i7 by redesignating subparagraphs 7,a7 through 7,e7 as clauses 7i7 through 7v71 respectively2 and 7ii7 by moving such clauses1 as so redesignated1 #b ems to the right2 7,b7 by redesignating paragraphs 7#a7 and 7#b7 as subparagraphs 7,a7 and 7,b71 respectively2 7,c7 by moving such subparagraphs1 as so redesignated1 #b ems to the right2 7,d7 by striking ,not later than two years and inserting the following3 7#a7 ,semiconductor products and services ,not later than two years 2 7,e7 in paragraph 7#a71 as added by subparagraph 7,d71 by striking subsection 7e7 and inserting subsection 7e77#a72 and 7,f7 by adding at the end the following new paragraph3 7#b7 ,optical transceivers ,not later than two years after the date of the enactment of the ,securing ,national ,security ,systems from ,chinese ,optical ,transceivers ,act of #bjbf1 the ,federal ,acquisition ,security ,council1 in consultation with the ,secretary of ,commerce1 the ,secretary of ,defense1 the ,secretary of ,homeland ,security1 the ,director of ,national ,intelligence1 and the ,secretary of ,energy1 and after engagement with the private sector and other nongovernmental stakeholders in accordance with section #acbc of title #da1 ,united ,states ,code1 shall-- 7,a7 issue recommendations to mitigate supply chain risks relevant to ,federal ,government acquisition of optical transceivers1 considering-- 7i7 the analysis1 assessment1 and strategy developed under subsection 7e77#b7 and any related updates2 7ii7 the standards provided under section #bbd of the ,national ,defense ,authorization ,act for ,fiscal ,year #bjbj 7,public ,law #aaf-ib71 including any tiers of trust1 levels of security1 or risk-based approaches established under such section2 7iii7 the extent to which such recommendations would enhance the security of critical systems2 7iv7 the extent to which such recommendations would impact ,federal access to commercial technologies2 and 7v7 any risks to the ,federal ,government from contracting with microelectronics suppliers that include covered optical transceivers in non-,federal supply chains2 and 7,b7 make recommendations to the ,federal ,acquisition ,regulatory ,council and the heads of executive agencies for any needed regulations to mitigate supply chain risks4 2 7#g7 in subsection 7i7-- 7,a7 in paragraph 7#a7-- 7i7 by redesignating subparagraphs 7,a7 and 7,b7 as clauses 7i7 and 7ii71 respectively2 7ii7 by moving such clauses1 as so redesignated1 #b ems to the right2 7iii7 by striking ,not later than #fj days after completing the assessment required under subsection 7e7 and inserting the following3 7,a7 ,semiconductor products and services ,not later than #fj days after completing the assessment required under subsection 7e77#a7 2 and 7iv7 by adding to the end the following new subparagraph3 7,b7 ,optical transceivers ,not later than #fj days after completing the assessment required under subsection 7e77#b71 the ,secretary of ,commerce shall submit to the appropriate committees of ,congress and leadership a report of the findings and recommendations of the analyses1 assessment1 and strategy developed under such subsection4 2 and 7,b7 in paragraph 7#b7-- 7i7 by redesignating subparagraphs 7,a7 and 7,b7 as clauses 7i7 and 7ii71 respectively2 7ii7 by moving such clauses1 as so redesignated1 #b ems to the right2 7iii7 by striking ,not later than one and inserting the following3 7,a7 ,in general ,not later than one 2 and 7iv7 by adding at the end the following new subparagraph3 7,b7 ,optical transceivers ,not later than one year after the date of the enactment of the ,securing ,national ,security ,systems from ,chinese ,optical ,transceivers ,act of #bjbf1 and annually thereafter for ten years1 the ,federal ,acquisition ,security ,council shall include in the annual report submitted under section #acbe of title #da1 ,united ,states ,code1 a description of-- 7i7 the development of recommendations under subsection 7g77#b72 and 7ii7 as applicable1 the impact of any recommendations or regulations implemented4 2 and 7#h7 in subsection 7j7-- 7,a7 by redesignating paragraphs 7#c7 through 7#e7 as paragraphs 7#d7 through 7#f71 respectively2 7,b7 by inserting after paragraph 7#b7 the following new paragraph3 7#c7 ,covered optical transceivers ,the term covered optical transceiver means an optical transceiver that-- 7,a7 is designed1 developed1 manufactured1 or supplied by-- 7i7 ,zhongji ,innolight ,co41 ,ltd4 7,inno,light72 7ii7 ,eoptolink ,technology ,inc41 ,ltd4 7,eoptolink72 7iii7 any subsidiary1 affiliate1 or successor of an entity described in clause 7i7 or 7ii72 or 7iv7 an entity that the ,secretary of ,defense or the ,secretary of ,commerce1 in consultation with the ,director of ,national ,intelligence or the ,director of the ,federal ,bureau of ,investigation1 determines to be owned or controlled by1 or otherwise connected to1 the government of a foreign country of concern1 provided that the determination with respect to such entity is published in the ,federal ,register2 or 7,b7 incorporates firmware1 software1 or component parts designed1 developed1 manufactured1 or supplied by any entity described in subparagraph 7,a74 2 7,c7 in paragraph 7#b77;,b71 by striking paragraph 7#c7 and inserting paragraph 7#d72 and 7,d7 by adding at the end the following new paragraph3 7#g7 ,optical transceiver ,the term optical transceiver means any optical pluggable1 optical transceiver1 or integrated optical module1 including linear pluggable optics1 or any product or service that incorporates1 uses1 or is produced using any such item4 4