Sec. 855. EMPLOYMENT TRANSPARENCY REGARDING INDIVIDUALS WHO PERFORM WORK IN THE PEOPLE’S REPUBLIC OF CHINA
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## SEC. 855 EMPLOYMENT TRANSPARENCY REGARDING INDIVIDUALS WHO PERFORM WORK IN THE PEOPLE’S REPUBLIC OF CHINA **[**[10 U.S.C. 4651 note](/us/usc/t10/s4651)**]** ###
(a)Disclosure Requirements ####
(1)Initial disclosures The Secretary of Defense shall require each covered entity to disclose to the Secretary of Defense if the entity employs one or more individuals who will perform work in, for, or are subject to the laws or control of the People’s Republic of China on a covered contract when the entity submits a bid or proposal for such covered contract, except that such disclosure shall not be required to the extent that the Secretary determines that such disclosure would not be in the interest of national security. ####
(2)Recurring disclosures For each of fiscal years 2023 and 2024, the Secretary of Defense shall require each covered entity that is a party to one or more covered contracts in the fiscal year to disclose to the Secretary if the entity employs one or more individuals who perform work in the People’s Republic of China on any such contract. ####
(3)Matters to be included #####
(A)In general If a covered company required to make a disclosure under paragraph
(1)or
(2)employs any individual who will perform work in, for, or are subject to the laws or control of the People’s Republic of China on a covered contract, such disclosure shall include— ######
(i)the total number of such individuals who will perform such work on the covered contracts funded by the Department of Defense; and ######
(ii)a description of the physical presence in the People’s Republic of China and each other location where work on the covered contract will be performed; and ######
(iii)whether an agency or instrumentality of the People’s Republic of China or any other covered entity has requested access to data or otherwise acquired data from the covered entity required to make a disclosure under paragraph
(1)or
(2)pursuant to any law or regulation of the People’s Republic of China. #####
(B)Additional disclosure of information and additional measures regarding certain entities ######
(i)In general If a covered entity performing a covered contract for services dealing with commercial computer software or noncommercial computer software and is required to make a disclosure under paragraph
(1)or (2), such covered entity shall— ######
(I)describe the process for disclosing a cybersecurity vulnerability, if such covered entity is also required to disclose any cybersecurity vulnerability to the Ministry of Industry and Information Technology or any other agency or instrumentality of the People’s Republic of China; and ######
(II)provide any information related to how a United States affiliate is notified of a vulnerability described in subclause (I). ######
(ii)Issuance of regulations Not later than 180 days after the date of the enactment of this subparagraph, the Secretary shall revise the Defense Federal Acquisition Regulation Supplement to require— ######
(I)a covered entity to require that an individual or entity performing work on a covered contract in the People’s Republic of China on behalf of the covered entity to notify the covered entity within 48 hours of such individual or entity reporting any software vulnerability related to such covered contract to the Ministry of Industry and Information Technology or any other agency or instrumentality of the People’s Republic of China; and ######
(II)the covered entity to retain and furnish to the Department of Defense information regarding any cybersecurity vulnerability reported to the Ministry of Industry and Information Technology or any other agency or instrumentality of the People’s Republic of China with respect to which the covered entity received a notice pursuant to subclause (I). ###
(b)Funding for Covered Entities The Secretary of Defense may not award a covered contract to, or renew a covered contract with, a covered entity unless such covered entity has submitted each disclosure such covered entity is required to submit under subsection (a). ###
(c)Semi-annual Briefing Beginning on January 1, 2023, the Secretary of Defense shall provide to the congressional defense committees semi-annual briefings that summarize the disclosures received by the Department over the previous 180 days pursuant to this section, and such briefings may be classified. ###
(d)Definitions In this section: ####
(1)Covered contract The term “covered contract” means any Department of Defense contract or subcontract for, or including, any information and communications technology, including contracts for commercial products or services. ####
(2)Covered entity The term “covered entity” means any corporation, company, limited liability company, limited partnership, business trust, business association, or other similar entity, including any subsidiary thereof, performing work on a covered contract in, for, or subject to the laws or control of the People’s Republic of China, including by leasing or owning real property used in the performance of the covered contract in the People’s Republic of China. ###
(e)Effective Date This section shall take effect on July 1, 2022.
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Sec. 855
EMPLOYMENT TRANSPARENCY REGARDING INDIVIDUALS WHO PERFORM WORK IN THE PEOPLE’S REPUBLIC OF CHINA
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