G:\M\16\MCCAR\MCCAR_032.XML ..................................................................... (Original Signature of Member) H. R. ll 116TH CONGRESS 2D SESSION To authorize the imposition of sanctions on certain foreign persons that have threatened the national security, foreign policy, public health, or economic health or financial stability of the United States, and for other purposes. IN THE HOUSE OF REPRESENTATIVES Mr. MCCARTHY introduced the following bill; which was referred to the Committee on llllllllllllll A BILL To authorize the imposition of sanctions on certain foreign persons that have threatened the national security, foreign policy, public health, or economic health or financial stability of the United States, and for other purposes. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America in Congress assembled, 3 4 SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘Defend COVID Re- 5 search from Hackers Act’’. g:\VHLC\072020\072020.313.xml July 20, 2020 (3:32 p.m.) VerDate Mar 15 2010 15:32 Jul 20, 2020 Jkt 000000 (765090 8) PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 C:\USERS\AMGILLEY\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\MCCAR_032. G:\M\16\MCCAR\MCCAR_032.XML 2 1 SEC. 2. AUTHORIZATION OF IMPOSITION OF SANCTIONS ON 2 3 CERTAIN FOREIGN PERSONS. (a) IN GENERAL.—The President is authorized to 4 impose sanctions described in subsection (b) with respect 5 to any foreign person determined by the President— 6 (1) to be responsible for or complicit in, or to 7 have engaged in, directly or indirectly, activities, in- 8 cluding cyber-enabled activities, originating from, or 9 directed by foreign persons that are reasonably likely 10 to result in, or have materially contributed to, a sig- 11 nificant threat to the national security, foreign pol- 12 icy, public health, or economic health or financial 13 stability of the United States and that have the pur- 14 pose or effect of— 15 (A) harming, or otherwise significantly 16 compromising the provision of services by a 17 computer or network of computers that support 18 one or more entities in a critical infrastructure 19 sector; 20 (B) significantly compromising the provi- 21 sion of services by one or more entities in a 22 critical infrastructure sector; 23 (C) causing a significant disruption to the 24 availability of a computer or network of com- 25 puters; or g:\VHLC\072020\072020.313.xml July 20, 2020 (3:32 p.m.) VerDate Mar 15 2010 15:32 Jul 20, 2020 Jkt 000000 (765090 8) PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 C:\USERS\AMGILLEY\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\MCCAR_032. G:\M\16\MCCAR\MCCAR_032.XML 3 1 (D) causing a significant misappropriation 2 of funds or economic resources, trade secrets, 3 personal identifiers, intellectual property, or fi- 4 nancial information for commercial or competi- 5 tive advantage or private financial gain; 6 (2) to be responsible for or complicit in, or to 7 have engaged in, or to have knowingly materially 8 benefitted from, the receipt or use for commercial or 9 competitive advantage or private financial gain, of 10 funds or economic resources, trade secrets, personal 11 identifiers, intellectual property, or financial infor- 12 mation misappropriated through cyber-enabled ac- 13 tivities and with respect to which such actions are 14 reasonably likely to result in, or have materially con- 15 tributed to, a significant threat to the national secu- 16 rity, foreign policy, public health, or economic health 17 or financial stability of the United States; 18 (3) to have materially assisted, sponsored, or 19 provided financial, material, or technological support 20 for, or goods or services in support of— 21 (A) any activity described in paragraphs 22 (1) and (2); or 23 (B) any person whose property or interests 24 in property are blocked pursuant to this section; g:\VHLC\072020\072020.313.xml July 20, 2020 (3:32 p.m.) VerDate Mar 15 2010 15:32 Jul 20, 2020 Jkt 000000 (765090 8) PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 C:\USERS\AMGILLEY\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\MCCAR_032. G:\M\16\MCCAR\MCCAR_032.XML 4 1 (4) to be owned or controlled by, or to have 2 acted or purported to act for or on behalf of, directly 3 or indirectly, any person whose property or interests 4 in property are blocked pursuant to this section; or 5 (5) to have attempted to engage in any of the 6 activities described in paragraphs (1) through (3). 7 (b) SANCTIONS DESCRIBED.—The sanctions to be 8 imposed with respect to a foreign person described in sub9 section (a) are the following: 10 (1) BLOCKING President 11 shall exercise all of the powers granted to the Presi- 12 dent by the International Emergency Economic 13 Powers Act (50 U.S.C. 1701 et seq.) (except that 14 the requirements of section 202 of such Act (50 15 U.S.C. 1701) shall not apply) to the extent nec- 16 essary to block and prohibit all transactions in prop- 17 erty and interests in property of the person if such 18 property and interests in property are in the United 19 States, come within the United States, or are or 20 come within the possession or control of a United 21 States person. 22 23 (2) INADMISSIBILITY (A) INELIGIBILITY 25 OR PAROLE.—An g:\VHLC\072020\072020.313.xml July 20, 2020 (3:32 p.m.) 15:32 Jul 20, 2020 OF CERTAIN INDIVID- UALS.— 24 VerDate Mar 15 2010 OF PROPERTY.—The Jkt 000000 FOR VISAS, ADMISSION, alien who is a foreign person (765090 8) PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 C:\USERS\AMGILLEY\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\MCCAR_032. G:\M\16\MCCAR\MCCAR_032.XML 5 1 under subsection (a), or an alien who is an offi- 2 cer or director of a foreign person under such 3 subsection, is— 4 (i) inadmissible to the United States; 5 (ii) ineligible to receive a visa or other 6 documentation to enter the United States; 7 and 8 (iii) otherwise ineligible to be admitted 9 or paroled into the United States or to re- 10 ceive any other benefit under the Immigra- 11 tion and Nationality Act (8 U.S.C. 1101 et 12 seq.). 13 (B) CURRENT alien 14 who is a foreign person under subsection (a), or 15 an alien who is an officer or director of a for- 16 eign person under such subsection, is subject to 17 the following: 18 (i) Revocation of any visa or other 19 entry documentation regardless of when 20 the visa or other entry documentation is or 21 was issued. 22 (ii) A revocation under clause (i) 23 shall— 24 (I) take effect immediately; and g:\VHLC\072020\072020.313.xml July 20, 2020 (3:32 p.m.) VerDate Mar 15 2010 VISAS REVOKED.—An 15:32 Jul 20, 2020 Jkt 000000 (765090 8) PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 C:\USERS\AMGILLEY\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\MCCAR_032. G:\M\16\MCCAR\MCCAR_032.XML 6 1 (II) cancel any other valid visa or 2 entry documentation that is in the 3 foreign person’s or alien’s possession, 4 as the case may be. 5 (c) PENALTIES.—The penalties provided for in sub- 6 sections (b) and (c) of section 206 of the International 7 Emergency Economic Powers Act (50 U.S.C. 1705) shall 8 apply to a person that violates, attempts to violate, con9 spires to violate, or causes a violation of this section, in10 cluding regulations promulgated in accordance therewith, 11 to the same extent that such penalties apply to a person 12 that commits an unlawful act described in section 206(a) 13 of such Act. 14 (d) EXCEPTION.—Sanctions imposed pursuant to 15 this section shall not apply to an alien if admitting or pa16 roling the alien into the United States is necessary to per17 mit the United States to comply with the Agreement re18 garding the Headquarters of the United Nations, signed 19 at Lake Success June 26, 1947, and entered into force 20 November 21, 1947, between the United Nations and the 21 United States, or other applicable international obligations 22 of the United States. 23 24 (e) EXCEPTION RITY.—The TO COMPLY WITH NATIONAL SECU- following activities shall be exempt from sanc- 25 tions under this section: g:\VHLC\072020\072020.313.xml July 20, 2020 (3:32 p.m.) VerDate Mar 15 2010 15:32 Jul 20, 2020 Jkt 000000 (765090 8) PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 C:\USERS\AMGILLEY\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\MCCAR_032. G:\M\16\MCCAR\MCCAR_032.XML 7 1 (1) Activities subject to the reporting require- 2 ments under title V of the National Security Act of 3 1947 (50 U.S.C. 3091 et seq.). 4 (2) Activities subject to any authorized intel- 5 ligence or law enforcement activities of the United 6 States. 7 (f) IMPLEMENTATION 8 ITY.—The REGULATORY AUTHOR- AND President is authorized to exercise all authori- 9 ties provided to the President under sections 203 and 205 10 of the International Emergency Economic Powers Act (50 11 U.S.C. 1702 and 1704) to carry out this Act and may 12 issue such regulations, licenses, and orders as are nec13 essary to carry out this Act. 14 (g) EXCEPTION RELATED TO THE IMPORTATION OF 15 GOODS.— 16 (1) IN authorities and require- 17 ments to impose sanctions pursuant to this section 18 shall not include the authority or requirement to im- 19 pose sanctions on the importation of goods. 20 (2) GOOD DEFINED.—In this section, the term 21 ‘‘good’’ means any article, natural or man-made sub- 22 stance, material, supply or manufactured product, 23 including inspection and test equipment and exclud- 24 ing technical data. 25 (h) REPORT ON CYBER-ENABLED ACTIVITIES.— g:\VHLC\072020\072020.313.xml July 20, 2020 (3:32 p.m.) VerDate Mar 15 2010 GENERAL.—The 15:32 Jul 20, 2020 Jkt 000000 (765090 8) PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 C:\USERS\AMGILLEY\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\MCCAR_032. G:\M\16\MCCAR\MCCAR_032.XML 8 1 (1) IN later than 180 days 2 after the date of the enactment of this Act, the Sec- 3 retary of State, in consultation with the Director of 4 National Intelligence, shall submit to the appro- 5 priate congressional committees a report detailing 6 the extent of known cyber-enabled activities or at- 7 tempted cyber-enabled activities as described in this 8 section by foreign persons related to the 2019 novel 9 coronavirus and whether such activities qualify for 10 the imposition of sanctions pursuant to this section. 11 (2) FORM.—The report required under sub- 12 section (a) shall be unclassified but may contain a 13 classified annex. 14 (i) DEFINITIONS.—In this section: 15 (1) ADMITTED; ALIEN.—The terms ‘‘admitted’’ 16 and ‘‘alien’’ have the meanings given such terms in 17 section 101 of the Immigration and Nationality Act 18 (8 U.S.C. 1101). 19 (2) APPROPRIATE 20 TEES.—The 21 mittees’’ means— 22 COMMIT- term ‘‘appropriate congressional com- (i) the Committee on Foreign Affairs; 24 and g:\VHLC\072020\072020.313.xml July 20, 2020 (3:32 p.m.) 15:32 Jul 20, 2020 CONGRESSIONAL (A) in the House of Representatives— 23 VerDate Mar 15 2010 GENERAL.—Not Jkt 000000 (765090 8) PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 C:\USERS\AMGILLEY\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\MCCAR_032. G:\M\16\MCCAR\MCCAR_032.XML 9 1 (ii) the Committee on Ways and 2 Means; and 3 (B) in the Senate— 4 (i) the Committee on Foreign Rela- 5 tions; and 6 (ii) the Committee on Banking, Hous- 7 ing, and Urban Affairs. 8 (3) CRITICAL 9 term ‘‘critical infrastructure sector’’ means any of 10 the designated critical infrastructure sectors identi- 11 fied in Presidential Policy Directive 21. 12 (4) ENTITY.—The term ‘‘entity’’ means a part- 13 nership, association, trust, joint venture, corpora- 14 tion, group, subgroup, or other organization. 15 (5) FOREIGN GOVERNMENT.—The term ‘‘for- 16 eign government’’ means any government of a coun- 17 try other than the United States. 18 (6) FOREIGN PERSON.—The term ‘‘foreign per- 19 son’’ means an individual or entity that is not a 20 United States person. 21 (7) KNOWINGLY.—The term ‘‘knowingly’’ with 22 respect to conduct, a circumstance, or a result, 23 means that a person has actual knowledge, or should 24 have known, of the conduct, the circumstance, or the 25 result. g:\VHLC\072020\072020.313.xml July 20, 2020 (3:32 p.m.) VerDate Mar 15 2010 INFRASTRUCTURE SECTOR.—The 15:32 Jul 20, 2020 Jkt 000000 (765090 8) PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 C:\USERS\AMGILLEY\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\MCCAR_032. G:\M\16\MCCAR\MCCAR_032.XML 10 1 (8) MISAPPROPRIATION.—The term ‘‘misappro- 2 priation’’ means any taking or obtaining by im- 3 proper means, without permission or consent, or 4 under false pretenses. 5 6 (9) PERSON.—The term ‘‘person’’ means an individual or entity. 7 (10) UNITED STATES PERSON.—The term 8 ‘‘United States person’’ means any United States 9 citizen, permanent resident alien, entity organized 10 under the laws of the United States or any jurisdic- 11 tion within the United States (including foreign 12 branches), or any person in the United States. 13 14 SEC. 3. STOPPING TRAFFICKING IN BOTNETS. Section 1030 of title 18, United States Code, is 15 amended— 16 (1) in subsection (a)— 17 (A) in paragraph (7), by adding ‘‘or’’ at 18 the end; and 19 (B) by adding at the end the following new 20 paragraph: 21 ‘‘(8) knowingly traffics in access to a protected 22 computer, if the trafficker knows the protected com- 23 puter has been damaged in a manner prohibited by 24 this section.’’; 25 (2) in subsection (c)(3)— g:\VHLC\072020\072020.313.xml July 20, 2020 (3:32 p.m.) VerDate Mar 15 2010 15:32 Jul 20, 2020 Jkt 000000 (765090 8) PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 C:\USERS\AMGILLEY\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\MCCAR_032. G:\M\16\MCCAR\MCCAR_032.XML 11 1 (A) in subparagraph (A), by striking 2 ‘‘(a)(4) or (a)(7)’’ and inserting ‘‘(a)(4), (a)(7), 3 or (a)(8)’’; and 4 (B) in subparagraph (B), by striking 5 ‘‘(a)(4), or (a)(7)’’ and inserting ‘‘(a)(4), 6 (a)(7), or (a)(8)’’; 7 (3) in subsection (e)— 8 (A) in paragraph (11), by striking ‘‘and’’ 9 at the end; 10 (B) in paragraph (12), by striking the pe- 11 riod at the end and inserting ‘‘; and’’; and 12 (C) by adding at the end the following new 13 paragraph: 14 ‘‘(13) the term ‘traffic’ has the meaning given 15 such term in section 1029(e)(5) of this title.’’; and 16 (4) in subsection (g), by inserting ‘‘, except for 17 a violation of subsection (a)(8),’’ after ‘‘violation of 18 this section’’. 19 20 SEC. 4. INJUNCTIONS AGAINST FRAUD AND ABUSE. Section 1345 of title 18, United States Code, is 21 amended— 22 23 (1) in the section heading by striking ‘‘FRAUD’’ and inserting ‘‘FRAUD 24 (2) in subsection (a)— 25 (A) in paragraph (1)— g:\VHLC\072020\072020.313.xml July 20, 2020 (3:32 p.m.) VerDate Mar 15 2010 15:32 Jul 20, 2020 AND ABUSE’’; Jkt 000000 (765090 8) PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 C:\USERS\AMGILLEY\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\MCCAR_032. G:\M\16\MCCAR\MCCAR_032.XML 12 1 (i) subparagraph (B), by striking ‘‘; 2 or’’ and inserting a semicolon; 3 (ii) in subparagraph (C), by striking 4 the semicolon and inserting ‘‘; or’’; and 5 (iii) by adding at the end the fol- 6 lowing new subparagraph: 7 ‘‘(D) violating or about to violate section 8 1030(a)(5) of this title where such conduct has 9 caused or would cause damage (as defined in 10 section 1030) without authorization to 100 or 11 more protected computers (as defined in section 12 1030) during any 1-year period, including by— 13 ‘‘(i) damage of the protected com- 14 puters without authorization; or 15 ‘‘(ii) installing or maintaining control 16 over malicious software on the protected 17 computers 18 have caused or would cause damage to the 19 protected computers;’’; and 20 (B) in paragraph (2) by inserting ‘‘, a vio- 21 lation under subsection (a)(1)(D),’’ after ‘‘(as 22 defined in section 3322(d) of this title)’’; and 23 (3) by adding at the end the following new sub- 24 15:32 Jul 20, 2020 without authorization, section: g:\VHLC\072020\072020.313.xml July 20, 2020 (3:32 p.m.) VerDate Mar 15 2010 that, Jkt 000000 (765090 8) PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 C:\USERS\AMGILLEY\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\MCCAR_032. G:\M\16\MCCAR\MCCAR_032.XML 13 1 ‘‘(c)(1) No cause of action may lie or be maintained 2 in any court against any person and shall be promptly dis3 missed if such cause of action is with respect to an act 4 that is in compliance with any restraining order, prohibi5 tion, or other action under subsection (b), if issued in cir6 cumstances described in subsection (a)(1)(D). 7 ‘‘(2) A restraining order, prohibition, or other 8 action under subsection (b), if issued in cir- 9 cumstances described in subsection (a)(1)(D), may, 10 upon application of the Attorney General, provide 11 that the United States shall pay to such person a fee 12 for reimbursement for such costs as are reasonably 13 necessary and which have been directly incurred in 14 complying with the restraining order, prohibition, or 15 other action.’’. g:\VHLC\072020\072020.313.xml July 20, 2020 (3:32 p.m.) VerDate Mar 15 2010 15:32 Jul 20, 2020 Jkt 000000 (765090 8) PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 C:\USERS\AMGILLEY\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\MCCAR_032.