,,ii #aaith ,,congress #b;d ,session ,s4 #efja ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #bi1 #bjbf,mr4 ,banks 7for himself and ,mrs4 ,gillibrand7 introduced the following bill2 which was read twice and referred to the ,committee on ,armed ,services ,a ,,bill ,to require the ,secretary of ,defense to establish reporting requirements and voluntary guidance for large artificial intelligence contractors4 #a4 ,short title ,this ,act may be cited as the ,insider ,threat ,reporting and ,security ,guidance ,act of #bjbf4 #b4 ,insider threat reporting and voluntary guidance for large artificial intelligence contractors 7a7 ,covered artificial intelligence contractor defined ,in this section1 the term covered artificial intelligence contractor means a contractor that-- 7#a7 has entered1 or seeks to enter into1 one or more contracts1 with a total value of not less than #ajj1jjj1jjj1 with the ,department of ,defense for an artificial intelligence system or services that use an artificial intelligence system2 and 7#b7 7,a7 has incurred1 during the #c-year period preceding the date on which any such contract was entered into1 not less than #a1jjj1jjj1jjj in artificial intelligence-related research and development expenditures1 measured on a rolling basis and aggregated with any other person that controls1 is controlled by1 or is under common control with such contractor2 or 7,b7 uses or proposes to use1 in the performance of such contract or contracts1 an artificial intelligence model developed or controlled by a person that meets the expenditure criteria described in subparagraph 7,a74 7b7 ,reporting requirements 7#a7 ,in general ,not later than #ahj days after the date of the enactment of this ,act1 the ,secretary of ,defense shall issue regulations establishing reporting requirements for covered artificial intelligence contractors to support the protection of ,department of ,defense systems1 missions1 personnel1 operations1 and supply chains from counterintelligence1 security1 and other national security risks arising from the security practices of such contractors4 7#b7 ,required matters 7,a7 ,in general ,the regulations issued pursuant to paragraph 7#a7 shall require1 at a minimum1 that a covered artificial intelligence contractor reports to the ,secretary-- 7i7 all policies1 practices1 and security measures relating to-- 7,i7 personnel vetting2 7,,ii7 insider threat mitigation2 7,,iii7 access controls1 including the circumstances under which contractors1 subcontractors1 cloud providers1 and other third parties are granted access to any artificial intelligence model1 model weights1 training infrastructure1 or other sensitive assets1 and the material security controls governing such access2 7,,iv7 supply chain security2 and 7,v7 the prevention of theft1 tampering1 sabotage1 or any other unauthorized transfer or modification of any artificial intelligence model or model weights2 7ii7 any known or suspected material incident affecting the security1 integrity1 or availability of any artificial intelligence model or model weights developed or used1 including any incident in which a person compromises or exploits any artificial intelligence model or model weights in a manner that could materially affect the performance of a ,department contract1 national security1 or the operations1 security1 or mission effectiveness of the ,department1 including through-- 7,i7 espionage2 7,,ii7 unauthorized access2 7,,iii7 theft2 7,,iv7 exfiltration2 7,v7 sabotage2 7,,vi7 manipulation2 7,,vii7 a compromise of the software1 hardware1 cloud1 data1 or other supply chain component used to develop1 train1 fine-tune1 evaluate1 secure1 or deploy any such model or model weights2 7,,viii7 the poisoning1 corruption1 manipulation1 or unauthorized alteration of training data1 fine-tuning data1 retrieval corpora1 model checkpoints1 system prompts1 safety filters1 monitoring systems1 evaluation pipelines1 or model-update mechanisms2 7,,ix7 the discovery of a material vulnerability1 exploit1 backdoor1 or failure of access controls that could permit unauthorized modification1 extraction1 degradation1 or misuse of any such model or model weights2 or 7,x7 any other effort2 7iii7 the defense-relevant and national security-relevant capabilities1 access pathways1 and material misuse risks1 as determined by the ,secretary1 of the most powerful artificial intelligence models developed1 controlled1 or used by such contractor in the performance of a contract with the ,department2 7iv7 any materially concerning model behavior1 including materially increased capability for a cyber offense1 evasion of safeguards1 deceptive behavior1 unauthorized autonomous action1 or other behavior that could materially affect national security1 the performance of a ,department contract1 or the operations1 security1 or mission effectiveness of the ,department2 7v7 any attempt to obtain unauthorized access to1 acquire1 influence1 or exfiltrate sensitive information1 systems1 or intellectual property relating to any artificial intelligence model developed1 controlled1 or used by the contractor2 and 7vi7 any other known or suspected acute national security risk relating to the compromise1 misuse1 loss1 exfiltration1 misalignment1 or exploitation of artificial intelligence models developed1 controlled1 or used by the contractor that could materially affect national security1 the performance of a ,department contract1 or the operations1 security1 or mission effectiveness of the ,department4 7,b7 ,scope ,the required matters described in subparagraph 7,a7 apply to a covered artificial intelligence contractor1 including with respect to any artificial intelligence model developed or controlled by another person and used1 or proposed for use1 by the covered artificial intelligence contractor in the performance of a contract with the ,department4 ,the ,secretary may require the covered artificial intelligence contractor to obtain from the person who developed or controls such model any information the ,secretary determines necessary to carry out this section4 7,c7 ,timing of reporting requirements 7i7 ,initial submission ,a covered artificial intelligence contractor shall submit to the ,secretary of ,defense the required matters described in subparagraph 7,a7 as part of any offer1 proposal1 bid1 or other response to a solicitation for a contract4 7ii7 ,continuing duty to certify ,not less frequently than once every #ij days1 the covered artificial intelligence contractor shall certify to the ,secretary of ,defense that the information submitted under clause 7i7 remains accurate and complete in all material respects4 7#c7 ,notification of acute national security incidents 7,a7 ,in general ,the regulations issued pursuant to paragraph 7#a7 shall require that not later than #gb hours after becoming aware of any information1 incident1 or development that presents an acute national security risk to the ,united ,states1 the covered artificial intelligence contractor shall-- 7i7 notify the ,secretary of ,defense of the nature of national security risk1 including any risk relating to model weight security as described in subparagraph 7,a77ii71 any risk described in clauses 7iv71 7v71 and 7vi7 or subparagraph 7,a71 and any other category of risk the ,secretary may specify2 and 7ii7 include in such notification1 to the extent known at the time of the notification-- 7,i7 a description of the information1 incident1 or development2 7,,ii7 the date or approximate period of occurrence and discovery2 7,,iii7 the affected model or deployment environment2 7,,iv7 the actual or suspected means of compromise2 7,v7 whether any model weights1 training data1 system prompts1 source code1 evaluation data1 safety systems1 or software dependencies were accessed1 altered1 degraded1 poisoned1 exfiltrated1 or otherwise compromised2 7,,vi7 an assessment of the actual or potential impact on ,department of ,defense missions1 users1 systems1 operations1 or decision making2 7,,vii7 any actions taken to contain1 mitigate1 remediate1 or investigate the information1 incident1 or development2 7,,viii7 whether the information1 incident1 or development has been reported to any other ,federal department or agency2 and 7,,ix7 such other information as the ,secretary determines appropriate4 7,b7 ,notification by the ,secretary ,if the ,secretary of ,defense receives a notification under subparagraph 7,a71 the ,secretary shall promptly transmit such notification to the contracting officer for the relevant contract1 the ,chief ,digital and ,artificial ,intelligence ,office1 the ,chief ,information ,officer of the ,department of ,defense1 the ,under ,secretary of ,defense for ,acquisition and ,sustainment1 the ,artificial ,intelligence ,security ,center of the ,national ,security ,agency1 the ,commander of the ,united ,states ,cyber ,command1 and the head of any other component of the ,department or ,federal department or agency the ,secretary determines appropriate4 7,c7 ,congressional notification ,if the ,secretary of ,defense receives a notification under subparagraph 7,a7 or discovery an incident that would be reportable under such clause1 the ,secretary shall-- 7i7 not later than #g days after the date on which the notification was received1 submit to the ,committee on ,armed ,services of the ,senate and the ,committee on ,armed ,services of the ,house of ,representatives notice of the information1 incident1 or development that includes-- 7,i7 a summary description2 7,,ii7 the date or approximate period of occurrence and discovery2 7,,iii7 the affected model or deployment environment2 7,,iv7 the actual or suspected means of compromise1 exfiltration1 manipulation1 degradation1 or misuse2 7,v7 an initial assessment of actual or potential impact on ,department missions1 users1 systems1 or operations2 and 7,,vi7 any action taken or planned to contain1 mitigate1 remediate1 or investigate the matter2 and 7ii7 provide the committees with additional briefings or updates on the information1 incident1 or development as material information becomes available4 7,d7 ,protection of information ,in the regulations issued under paragraph 7#a71 the ,secretary of ,defense shall include procedures for the submission of notifications under this paragraph1 including procedures to protect-- 7i7 classified information2 7ii7 proprietary information2 7iii7 trade secrets2 7iv7 security-sensitive information2 and 7v7 information regarding vulnerabilities that1 if disclosed publicly1 could reasonably be expected to harm national security4 7,e7 ,rule of construction ,nothing in this paragraph may be construed-- 7i7 to require public disclosure of information in a manner inconsistent with applicable protections for classified or otherwise protected information2 or 7ii7 to limit any other reporting obligation imposed by statute1 regulation1 or contract4 7#d7 ,clarity of requirements ,in the regulations issued pursuant to paragraph 7#a71 the ,secretary shall provide clear requirements with respect to the scope1 timing1 form1 and manner of the reporting1 including-- 7,a7 the appropriate protections the ,department will take to prevent unauthorized disclosure of classified information1 proprietary information1 and controlled unclassified information2 7,b7 any differentiated reporting requirements based on-- 7i7 the sensitivity of the contract2 7ii7 the capabilities of the relevant models2 7iii7 the degree of access of the contractor or third parties to artificial intelligence models or model weights2 and 7iv7 the significance of the risk to ,department missions or national security2 and 7,c7 procedures to ensure that1 if a covered artificial intelligence contractor uses1 or proposes to use1 in the performance of a contract with the ,department an artificial intelligence model developed or controlled by another person1 any information required under this section is obtained from that person4 7#e7 ,consultation ,in developing the regulations under paragraph 7#a71 the ,secretary may consult with-- 7,a7 covered artificial intelligence contractors2 7,b7 the head of any ,federal agency2 7,c7 industry participants2 and 7,d7 any official of the ,department that the ,secretary considers relevant1 including acquisition1 counterintelligence1 digital modernization1 and operational officials of the ,department4 7c7 ,study and voluntary guidance on insider threat risk reduction for covered artificial intelligence contractors 7#a7 ,in general ,not later than #ahj days after the date of the enactment of this ,act1 the ,secretary of ,defense shall issue voluntary guidance for covered artificial intelligence contractors to reduce insider threat1 espionage1 and other personnel-related security risks to sensitive artificial intelligence assets of such contractors1 with a focus on threats from highly capable nation-state adversaries that possess significant resources and the capability to conduct sophisticated espionage or related operations4 7#b7 ,assessment and updated guidance ,not later than #a year after the date of the enactment of this ,act1 the ,secretary shall-- 7,a7 complete an assessment of the risks described in paragraph 7#a72 and 7,b7 updated the guidance issued under such paragraph based on the findings of that assessment4 7#c7 ,contents ,the guidance required under paragraph 7#a71 including any updated guidance issued under paragraph 7#b77;,b71 shall1 at a minimum-- 7,a7 identify categories of roles1 responsibilities1 functions1 systems1 and access that may provide material access to model weights1 model internals1 training infrastructure1 sensitive research information1 or other sensitive assets of the covered artificial intelligence contractor1 the compromise of which could present a significant risk to ,department missions or national security2 7,b7 establish a tiered framework based on the degree of access1 sensitivity1 and national security risk involved1 under which the most sensitive roles1 systems1 and categories of access are associated with the most stringent suggested security measures2 7,c7 assess the practices1 and if appropriate suggest preferred practices1 relating to personnel vetting1 role-based access controls1 compartmentation1 audit logging1 anomaly detection1 continuous monitoring1 incident escalation1 and protection against espionage1 theft1 sabotage1 or unauthorized transfer1 including practices designed to address threats from nation-state adversaries2 7,d7 address1 for especially sensitive roles or access1 what personnel security measures1 access restrictions1 or other safeguards are appropriate to reduce heightened risks from nation-state adversaries2 and 7,e7 address such other measures as the ,secretary determines appropriate to protect ,department missions and national security from insider threat and espionage risks arising from the security practices of covered artificial intelligence contractors4 7#d7 ,rule of construction ,nothing in this subsection shall be construed to require a covered artificial intelligence contractor to adopt any measure1 practice1 personnel policy1 access restriction1 or other safeguard described in the guidance issued under paragraph 7#a74 7#e7 ,consultation ,in carrying out this subsection1 the ,secretary may consult with covered artificial intelligence contractors1 the intelligence community1 counterintelligence officials1 appropriate elements of the ,department of ,defense1 the heads of other ,federal agencies1 federally funded research and development centers1 and other relevant experts1 as determined appropriate by the ,secretary4 7d7 ,report to congress 7#a7 ,in general ,not later than #a year after the date of the enactment of this ,act1 the ,secretary of ,defense shall submit to the congressional defense committees an unclassified report1 which may include a classified annex1 on the implementation of this section4 7#b7 ,elements ,the report required by paragraph 7#a7 shall include-- 7,a7 a summary of the progress made in developing and implementing the reporting requirements under subsection 7b77#a72 7,b7 a summary of the progress made in issuing the voluntary guidance under paragraph 7#a7 of subsection 7c71 including the initial guidance and any updated guidance issued under paragraph 7#b7 of such subsection2 7,c7 an assessment of any challenges1 gaps1 or limitations identified by the ,secretary in carrying out this section2 and 7,d7 any additional steps1 authorities1 resources1 or policy recommendations the ,secretary determines would be useful to advance the purposes of this section4 7#c7 ,congressional defense committees defined ,the term congressional defense committees has the meaning given the term in section #aja of title #aj1 ,united ,states ,code4