Ҥ 7901. Definitions

“In this chapter:

“(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term ‘appropriate congressional committees’ means—

“(A) the Committee on Homeland Security and Governmental Affairs of the Senate;

“(B) the Committee on Commerce, Science, and Transportation of the Senate;

“(C) the Select Committee on Intelligence of the Senate;

“(D) the Committee on Foreign Relations of the Senate;

“(E) the Committee on Armed Services of the Senate;

“(F) the Committee on Health, Education, Labor, and Pensions of the Senate;

“(G) the Committee on Oversight and Reform of the House of Representatives;

“(H) the Committee on Homeland Security of the House of Representatives;

“(I) the Committee on Energy and Commerce of the House of Representatives;

“(J) the Permanent Select Committee on Intelligence of the House of Representatives;

“(K) the Committee on Foreign Affairs of the House of Representatives;

“(L) the Committee on Armed Services of the House of Representatives; and

“(M) the Committee on Education and Labor of the House of Representatives.

“(2) COUNCIL.—The term ‘Council’ means the Federal Research Security Council established under section 7902(a).

“(3) EXECUTIVE AGENCY.—The term ‘Executive agency’ has the meaning given that term in section 105 of title 5.

“(4) FEDERAL RESEARCH SECURITY RISK.—The term ‘Federal research security risk’ means the risk posed by malign state actors and other persons to the security and integrity of research and development conducted using grants awarded by Executive agencies.

“(5) INSIDER.—The term ‘insider’ means any person with authorized access to any United States Government resource, including personnel, facilities, information, research, equipment, networks, or systems.

“(6) INSIDER THREAT.—The term ‘insider threat’ means the threat that an insider will use his or her authorized access (wittingly or unwittingly) to harm the national and economic security of the United States or negatively affect the integrity of a Federal agency’s normal processes, including damaging the United States through espionage, sabotage, unauthorized disclosure of national security information or non-public information, or through the loss or degradation of departmental resources, capabilities, and functions.

“(7) RESEARCH AND DEVELOPMENT.—

“(A) IN GENERAL.—The term ‘research and development’ means all research activities, both basic and applied, and all development activities.

“(B) DEVELOPMENT.—The term ‘development’ means experimental development.

“(C) EXPERIMENTAL DEVELOPMENT.—The term ‘experimental development’ means creative and systematic work, drawing upon knowledge gained from research and practical experience, which—

“(i) is directed toward the production of new products or processes or improving existing products or processes; and

“(ii) like research, will result in gaining additional knowledge.

“(D) RESEARCH.—The term ‘research’—

“(i) means a systematic study directed toward fuller scientific knowledge or understanding of the subject studied; and

“(ii) includes activities involving the training of individuals in research techniques if such activities—

“(I) utilize the same facilities as other research and development activities; and

“(II) are not included in the instruction function.

“(8) UNITED STATES RESEARCH COMMUNITY.—The term ‘United States research community’ means—

“(A) research and development centers of Executive agencies;

“(B) private research and development centers in the United States, including for-profit and nonprofit research institutes;

“(C) research and development centers at institutions of higher education (as defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)));

“(D) research and development centers of States, United States territories, Indian tribes, and municipalities;

“(E) government-owned, contractor-operated United States Government research and development centers; and

“(F) any person conducting federally funded research or receiving Federal research grant funding.

Ҥ 7902. Federal Research Security Council establishment and membership

“(a) Establishment.—There is established, in the Office of Management and Budget, a Federal Research Security Council, which shall develop federally funded research and development grant making policy and management guidance to protect the national and economic security interests of the United States.

“(b) Membership.—

“(1) IN GENERAL.—The following agencies shall be represented on the Council:

“(A) The Office of Management and Budget.

“(B) The Office of Science and Technology Policy.

“(C) The Department of Defense.

“(D) The Department of Homeland Security.

“(E) The Office of the Director of National Intelligence, including the National Counterintelligence and Security Center.

“(F) The Department of Justice, including the Federal Bureau of Investigation.

“(G) The Department of Energy.

“(H) The Department of Commerce, including the National Institute of Standards and Technology.

“(I) The Department of Health and Human Services, including the National Institutes of Health.

“(J) The Department of State.

“(K) The Department of Transportation.

“(L) The National Aeronautics and Space Administration.

“(M) The National Science Foundation.

“(N) The Department of Education.

“(O) The Small Business Administration.

“(P) The Council of Inspectors General on Integrity and Efficiency.

“(Q) Other Executive agencies, as determined by the Chairperson of the Council.

“(2) LEAD REPRESENTATIVES.—

“(A) DESIGNATION.—Not later than 45 days after the date of the enactment of this chapter, the head of each agency represented on the Council shall designate a representative of that agency as the lead representative of the agency on the Council.

“(B) FUNCTIONS.—The lead representative of an agency designated under subparagraph (A) shall ensure that appropriate personnel, including leadership and subject matter experts of the agency, are aware of the business of the Council.

“(c) Chairperson.—

“(1) DESIGNATION.—Not later than 45 days after the date of the enactment of this chapter, the Director of the Office of Management and Budget shall designate a senior-level official from the Office of Management and Budget to serve as the Chairperson of the Council.

“(2) FUNCTIONS.—The Chairperson shall perform functions that include—

“(A) subject to subsection (d), developing a schedule for meetings of the Council;

“(B) designating Executive agencies to be represented on the Council under subsection (b)(1)(Q);

“(C) in consultation with the lead representative of each agency represented on the Council, developing a charter for the Council; and

“(D) not later than 7 days after completion of the charter, submitting the charter to the appropriate congressional committees.

“(3) LEAD SCIENCE ADVISOR.—The Director of the Office of Science and Technology Policy shall be the lead science advisor to the Chairperson for purposes of this chapter.

“(4) LEAD SECURITY ADVISOR.—The Director of the National Counterintelligence and Security Center shall be the lead security advisor to the Chairperson for purposes of this chapter.

“(d) Meetings.—The Council shall meet not later than 60 days after the date of the enactment of this chapter and not less frequently than quarterly thereafter.

Ҥ 7903. Functions and authorities

“(a) In general.—The Chairperson of the Council shall consider the missions and responsibilities of Council members in determining the lead agencies for Council functions. The Council shall perform the following functions:

“(1) Developing and implementing, across all Executive agencies that award research and development grants, a uniform application process for grants in accordance with subsection (b).

“(2) Developing and implementing a uniform and regular reporting process for identifying persons participating in federally funded research and development or that have access to nonpublic federally funded information, data, research findings, and research and development grant proposals.

“(3) Identifying or developing criteria, in accordance with subsection (c), for sharing and receiving information with respect to Federal research security risks in order to mitigate such risks with—

“(A) members of the United States research community; and

“(B) other persons participating in federally funded research and development.

“(4) Identifying an appropriate Executive agency—

“(A) to accept and protect information submitted by Executive agencies and non-Federal entities based on the processes established under paragraphs (1) and (2); and

“(B) to facilitate the sharing of information received under subparagraph (A) to support, as necessary and appropriate—

“(i) oversight of federally funded research and development;

“(ii) criminal and civil investigations of misappropriated Federal funds, resources, and information; and

“(iii) counterintelligence investigations.

“(5) Identifying, as appropriate, Executive agencies to provide—

“(A) shared services, such as support for conducting Federal research security risk assessments, activities to mitigate such risks, and oversight and investigations with respect to grants awarded by Executive agencies; and

“(B) common contract solutions to support enhanced information collection and sharing and the verification of the identities of persons participating in federally funded research and development.

“(6) Identifying and issuing guidance, in accordance with subsection (d) and in coordination with the National Insider Threat Task Force established by Executive Order 13587 (50 U.S.C. 3161 note) for developing and implementing insider threat programs for Executive agencies to deter, detect, and mitigate insider threats, including the safeguarding of sensitive information from exploitation, compromise, or other unauthorized disclosure, taking into account risk levels and the distinct needs, missions, and systems of each such agency.

“(7) Identifying and issuing guidance for developing compliance and oversight programs for Executive agencies to ensure that research and development grant recipients accurately report conflicts of interest and conflicts of commitment in accordance with subsection (b)(1). Such programs shall include an assessment of—

“(A) a grantee’s support from foreign sources and affiliations with foreign funding institutions or laboratories; and

“(B) the impact of such support and affiliations on United States national security and economic interests.

“(8) Assessing and making recommendations with respect to whether openly sharing certain types of federally funded research and development is in the economic and national security interests of the United States.

“(9) Identifying and issuing guidance to the United States research community, and other recipients of Federal research and development funding, to ensure that such institutions and recipients adopt existing best practices to reduce the risk of misappropriation of research data.

“(10) Identifying and issuing guidance on additional steps that may be necessary to address Federal research security risks arising in the course of Executive agencies providing shared services and common contract solutions under paragraph (5)(B).

“(11) Engaging with the United States research community in performing the functions described in paragraphs (1), (2), and (3) and with respect to issues relating to Federal research security risks.

“(12) Carrying out such other functions, as determined by the Council, that are necessary to reduce Federal research security risks.

“(b) Requirements for uniform grant application process.—In developing the uniform application process for Federal research and development grants required under subsection (a)(1), the Council shall—

“(1) ensure that the process—

“(A) requires principal investigators, co-principal investigators, and senior personnel associated with the proposed Federal research or development grant project—

“(i) to disclose biographical information, all affiliations, including any foreign military and foreign government-related organizations, and all current and pending support, including affiliations with foreign funding institutions or laboratories, and all support received from foreign sources; and

“(ii) to certify the accuracy of the required disclosures under penalty of perjury; and

“(B) uses a machine-readable application form to assist in identifying fraud and ensuring the eligibility of applicants;

“(2) design the process—

“(A) to reduce the administrative burden on persons applying for Federal research and development funding; and

“(B) to promote information sharing across the United States research community, while safeguarding sensitive information; and

“(3) complete the process not later than 1 year after the date of the enactment of the Safeguarding American Innovation Act.

“(c) Requirements for information sharing criteria.—In identifying or developing criteria and procedures for sharing information with respect to Federal research security risks under subsection (a)(3), the Council shall ensure that such criteria address, at a minimum—

“(1) the information to be shared;

“(2) the circumstances under which sharing is mandated or voluntary;

“(3) the circumstances under which it is appropriate for an Executive agency to rely on information made available through such sharing in exercising the responsibilities and authorities of the agency under applicable laws relating to the award of grants;

“(4) the procedures for protecting intellectual capital that may be present in such information; and

“(5) appropriate privacy protections for persons involved in Federal research and development.

“(d) Requirements for insider threat program guidance.—In identifying or developing guidance with respect to insider threat programs under subsection (a)(6), the Council shall ensure that such guidance provides for, at a minimum—

“(1) such programs—

“(A) to deter, detect, and mitigate insider threats; and

“(B) to leverage counterintelligence, security, information assurance, and other relevant functions and resources to identify and counter insider threats;

“(2) the development of an integrated capability to monitor and audit information for the detection and mitigation of insider threats, including through—

“(A) monitoring user activity on computer networks controlled by Executive agencies;

“(B) providing employees of Executive agencies with awareness training with respect to insider threats and the responsibilities of employees to report such threats;

“(C) gathering information for a centralized analysis, reporting, and response capability; and

“(D) information sharing to aid in tracking the risk individuals may pose while moving across programs and affiliations;

“(3) the development and implementation of policies and procedures under which the insider threat program of an Executive agency accesses, shares, and integrates information and data derived from offices within the agency;

“(4) the designation of senior officials with authority to provide management, accountability, and oversight of the insider threat program of an Executive agency and to make resource recommendations to the appropriate officials; and

“(5) such additional guidance as is necessary to reflect the distinct needs, missions, and systems of each Executive agency.

“(e) Issuance of warnings relating to risks and vulnerabilities in international scientific cooperation.—

“(1) IN GENERAL.—The Council, in conjunction with the lead security advisor under section 7902(c)(4), shall establish a process for informing members of the United States research community and the public, through the issuance of warnings described in paragraph (2), of potential risks and vulnerabilities in international scientific cooperation that may undermine the integrity and security of the United States research community or place at risk any federally funded research and development.

“(2) CONTENT.—A warning described in this paragraph shall include, to the extent the Council considers appropriate, a description of—

“(A) activities by the national government, local governments, research institutions, or universities of a foreign country—

“(i) to exploit, interfere, or undermine research and development by the United States research community; or

“(ii) to misappropriate scientific knowledge resulting from federally funded research and development;

“(B) efforts by strategic competitors to exploit the research enterprise of a foreign country that may place at risk—

“(i) the science and technology of that foreign country; or

“(ii) federally funded research and development; and

“(C) practices within the research enterprise of a foreign country that do not adhere to the United States scientific values of openness, transparency, reciprocity, integrity, and merit-based competition.

“(f) Program office and committees.—The interagency working group established under section 1746 of the National Defense Authorization Act for Fiscal Year 2020 (Public Law 116–92) shall be a working group under the Council performing duties authorized under such section and as directed by the Council. The Council may also establish a program office and any committees, working groups, or other constituent bodies the Council deems appropriate, in its sole and unreviewable discretion, to carry out its functions.

“(g) Exclusion orders.—To reduce Federal research security risk, the Interagency Suspension and Debarment Committee shall provide quarterly reports to the Council that detail—

“(1) the number of ongoing investigations by Council Members related to Federal research security that may result, or have resulted, in agency pre-notice letters, suspensions, proposed debarments, and debarments;

“(2) Federal agencies’ performance and compliance with interagency suspensions and debarments;

“(3) efforts by the Interagency Suspension and Debarment Committee to mitigate Federal research security risk;

“(4) proposals for developing a unified Federal policy on suspensions and debarments; and

“(5) other current suspension and debarment related issues.

Ҥ 7904. Strategic plan

“(a) In general.—Not later than 180 days after the date of the enactment of this chapter, the Council shall develop a strategic plan for addressing Federal research security risks and for managing such risks, that includes—

“(1) the criteria and processes required under section 7903(a), including a threshold and requirements for sharing relevant information about such risks with all Executive agencies and, as appropriate, with other Federal entities, foreign governments, and non-Federal entities;

“(2) an identification of existing authorities for addressing such risks;

“(3) an identification and promulgation of best practices and procedures, and an identification of available resources, for Executive agencies to assess and mitigate such risks;

“(4) recommendations for any legislative, regulatory, or other policy changes to improve efforts to address such risks;

“(5) recommendations for any legislative, regulatory, or other policy changes to incentivize the adoption of best practices for avoiding and mitigating Federal research security risks by the United States research community and key United States foreign research partners;

“(6) an evaluation of the effect of implementing new policies or procedures on existing Federal grant processes, regulations, and disclosures of conflicts of interest and conflicts of commitment;

“(7) a plan for engaging with Executive agencies, the private sector, and other nongovernmental stakeholders to address such risks and share information between Executive agencies, the private sector, and nongovernmental stakeholders; and

“(8) a plan for identification, assessment, mitigation, and vetting of Federal research security risks.

“(b) Submission to Congress.—Not later than 7 calendar days after completion of the strategic plan required by subsection (a), the Chairperson of the Council shall submit the plan to the appropriate congressional committees.

Ҥ 7905. Annual report

“Not later than December 15 of each year, the Chairperson of the Council shall submit a report to the appropriate congressional committees that describes—

“(1) the activities of the Council during the preceding fiscal year; and

“(2) the progress made toward implementing the strategic plan required under section 7904 after such plan has been submitted to Congress.

Ҥ 7906. Requirements for Executive agencies

“(a) In general.—The head of each Executive agency on the Council shall be responsible for—

“(1) assessing Federal research security risks posed by persons participating in federally funded research and development;

“(2) avoiding or mitigating such risks, as appropriate and consistent with the standards, guidelines, requirements, and practices identified by the Council under section 7903(a);

“(3) prioritizing Federal research security risk assessments conducted under paragraph (1) based on the applicability and relevance of the research and development to the national security and economic competitiveness of the United States; and

“(4) ensuring that all agency initiatives impacting federally funded research grant making policy and management to protect the national and economic security interests of the United States are integrated with the activities of the Council.

“(b) Inclusions.—The responsibility of the head of an Executive agency for assessing Federal research security risk described in subsection (a) includes—

“(1) developing an overall Federal research security risk management strategy and implementation plan and policies and processes to guide and govern Federal research security risk management activities by the Executive agency;

“(2) integrating Federal research security risk management practices throughout the lifecycle of the grant programs of the Executive agency;

“(3) sharing relevant information with other Executive agencies, as determined appropriate by the Council in a manner consistent with section 7903; and

“(4) reporting on the effectiveness of the Federal research security risk management strategy of the Executive agency consistent with guidance issued by the Office of Management and Budget and the Council.”.

Ҥ 1041. Federal grant application fraud

“(a) Definitions.—In this section:

“(1) FEDERAL AGENCY.—The term ‘Federal agency’ has the meaning given the term ‘agency’ in section 551 of title 5, United States Code.

“(2) FEDERAL GRANT.—The term ‘Federal grant’—

“(A) means a grant awarded by a Federal agency;

“(B) includes a subgrant awarded by a non-Federal entity to carry out a Federal grant program; and

“(C) does not include—

“(i) direct United States Government cash assistance to an individual;

“(ii) a subsidy;

“(iii) a loan;

“(iv) a loan guarantee; or

“(v) insurance.

“(3) FEDERAL GRANT APPLICATION.—The term ‘Federal grant application’ means an application for a Federal grant.

“(4) FOREIGN COMPENSATION.—The term ‘foreign compensation’ means a title, monetary compensation, access to a laboratory or other resource, or other benefit received from—

“(A) a foreign government;

“(B) a foreign government institution; or

“(C) a foreign public enterprise.

“(5) FOREIGN GOVERNMENT.—The term ‘foreign government’ includes a person acting or purporting to act on behalf of—

“(A) a faction, party, department, agency, bureau, subnational administrative entity, or military of a foreign country; or

“(B) a foreign government or a person purporting to act as a foreign government, regardless of whether the United States recognizes the government.

“(6) FOREIGN GOVERNMENT INSTITUTION.—The term ‘foreign government institution’ means a foreign entity owned by, subject to the control of, or subject to regulation by a foreign government.

“(7) FOREIGN PUBLIC ENTERPRISE.—The term ‘foreign public enterprise’ means an enterprise over which a foreign government directly or indirectly exercises a dominant influence.

“(8) LAW ENFORCEMENT AGENCY.—The term ‘law enforcement agency’—

“(A) means a Federal, State, local, or Tribal law enforcement agency; and

“(B) includes—

“(i) the Office of Inspector General of an establishment (as defined in section 12 of the Inspector General Act of 1978 (5 U.S.C. App.)) or a designated Federal entity (as defined in section 8G(a) of the Inspector General Act of 1978 (5 U.S.C. App.)); and

“(ii) the Office of Inspector General, or similar office, of a State or unit of local government.

“(9) OUTSIDE COMPENSATION.—The term ‘outside compensation’ means any compensation that is not received from the primary employer of an individual.

“(b) Prohibition.—It shall be unlawful for any individual to knowingly—

“(1) prepare or submit a Federal grant application that fails to disclose the receipt of any outside compensation, including foreign compensation, by the individual;

“(2) forge, counterfeit, or otherwise falsify a document for the purpose of obtaining a Federal grant; or

“(3) prepare, submit, or assist in the preparation or submission of a Federal grant application or document in connection with a Federal grant application that—

“(A) contains a false statement;

“(B) contains a material misrepresentation;

“(C) has no basis in law or fact; or

“(D) fails to disclose a material fact.

“(c) Exception.—Subsection (b) does not apply to an activity—

“(1) carried out in connection with a lawfully authorized investigative, protective, or intelligence activity of—

“(A) a law enforcement agency; or

“(B) a Federal intelligence agency; or

“(2) authorized under chapter 224.

“(d) Penalty.—Any individual who violates subsection (b)—

“(1) shall be fined in accordance with this title, imprisoned for not more than 5 years, or both; and

“(2) shall be prohibited from receiving a Federal grant during the 5-year period beginning on the date on which a sentence is imposed on the individual under paragraph (1).”.