42 USC CHAPTER 163, SUBCHAPTER VI, Part B: National Science and Technology Strategy

From Title 42—THE PUBLIC HEALTH AND WELFARECHAPTER 163—RESEARCH AND DEVELOPMENT, COMPETITION, AND INNOVATIONSUBCHAPTER VI—MISCELLANEOUS SCIENCE AND TECHNOLOGY PROVISIONS

Part B—National Science and Technology Strategy

§19221. Strategy and report on the nation's economic security, science, research, and innovation to support the national security strategy

(a) Definitions

In this section:

(1) Foreign country of concern

The term "foreign country of concern" means the People's Republic of China, the Democratic People's Republic of Korea, the Russian Federation, the Islamic Republic of Iran, or any other country determined to be a country of concern by the Department of State.

(2) Foreign entity of concern

The term "foreign entity of concern" means a foreign entity that is—

(A) designated as a foreign terrorist organization by the Secretary of State under section 1189(a) of title 8;

(B) included on the list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Treasury (commonly known as the SDN list);

(C) owned by, controlled by, or subject to the jurisdiction or direction of a government of a foreign country that is a covered nation (as such term is defined in section 4872 of title 10);

(D) alleged by the Attorney General to have been involved in activities for which a conviction was obtained under—

(i) chapter 37 of title 18 (commonly known as the Espionage Act);

(ii) section 951 or 1030 of title 18;

(iii) chapter 90 of title 18 (commonly known as the Economic Espionage Act of 1996);

(iv) the Arms Export Control Act (22 U.S.C. 2751 et seq.);

(v) section 2274, 2275, 2276, 2277, or 2284 of this title;

(vi) the Export Control Reform Act of 2018 (50 U.S.C. 4801 et seq.); or

(vii) the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.); or

(E) determined by the Secretary of Commerce, in consultation with the Secretary of Defense and the Director of National Intelligence, to be engaged in unauthorized conduct that is detrimental to the national security or foreign policy of the United States.

(3) National security strategy

The term "national security strategy" means the national security strategy required under section 3043 of title 50.

(b) Strategy and report

(1) In general

Not later than 90 days after the transmission of each national security strategy under section 3043(a) of title 50, the President, acting through the Director of the Office of Science and Technology Policy, shall, in coordination with the National Science and Technology Council, the National Security Council, the Director of the National Economic Council, and the heads of such other relevant Federal agencies as the Director of the Office of Science and Technology Policy considers appropriate and in consultation with such nongovernmental partners as the Director of the Office of Science and Technology Policy considers appropriate—

(A) review such strategy, including the national defense strategy under subsection (g) of section 113 of title 10 and the national science and technology strategy under section 6615 of this title, programs, and resources as the Director of the Office of Science and Technology Policy determines pertain to United States' national competitiveness in science, technology, research, innovation, and technology transfer activities, including patenting and licensing, that support the national security strategy;

(B) develop or revise a national strategy to improve the national competitiveness of United States science, technology, research, and innovation to support the national security strategy; and

(i) a report on the findings of the Director of the Office of Science and Technology Policy with respect to the review conducted pursuant to subparagraph (A); and

(ii) the strategy developed or revised pursuant to subparagraph (B).

(2) Termination

This subsection terminates on the date that is 5 years after August 9, 2022.

(c) Elements

(1) Report

Each report submitted under subsection (b)(1)(C)(i) shall include the following:

(A) An assessment of the efforts of the United States Government to preserve United States leadership in key emerging technologies and prevent United States strategic competitors from leveraging advanced technologies to gain strategic military or economic advantages over the United States.

(B) An assessment of public and private investment in science and technology relevant to national security purposes, and the implications of such for the geostrategic position of the United States.

(D) An assessment of global trends in science and technology, including potential threats to the national security of the United States in science and technology.

(E) An assessment of the national debt and its implications for the economic and national security of the United States.

(F) An assessment of how regional innovation capacity efforts in STEM fields are contributing and could contribute to the national security the United States, including programs run by State and local governments.

(G) An assessment of the following:

(i) Workforce needs for competitiveness in technology areas identified in the national security strategy.

(ii) Any efforts needed to expand pathways into technology fields to achieve the goals of the national security strategy.

(H) An assessment of barriers to the development, evolution, or competitiveness of start-ups, small and mid-sized business entities, and industries that are critical to national security.

(I) An assessment of the effectiveness of the Federal Government, federally funded research and development centers, and national laboratories in supporting and promoting the technology commercialization and technology transfer of technologies critical to national security.

(J) An assessment of manufacturing capacity, logistics, and supply chain dynamics of major export sectors that are critical to national security, including access to a skilled workforce, physical infrastructure, and broadband network infrastructure.

(K) An assessment of how the Federal Government is increasing the participation of underrepresented populations in science, research, innovation, and manufacturing.

(L) An assessment of public-private partnerships in technology commercialization in support of national security, including—

(i) the structure of current defense technology research and commercialization arrangements with regard to public-private partnerships; and

(ii) the extent to which intellectual property developed with Federal defense funding—

(I) is being used to manufacture in the United States rather than in other countries; and

(II) is being used by foreign business entities that are majority owned or controlled (as such term is defined in section 800.208 of title 31, Code of Federal Regulations, or a successor regulation), or minority owned greater than 25 percent by—

(aa) any governmental organization of a foreign country of concern; or

(bb) any other entity that is—

(AA) known to be owned or controlled by any governmental organization of a foreign country of concern; or

(BB) organized under, or otherwise subject to, the laws of a foreign country of concern.

(M) Recommendations to enhance the ability of the Federal Government to recruit into Federal service and retain in such service individuals with critical skills relevant to national security.

(N) Recommendations for policies to protect United States leadership and the allies of the United States in critical areas relevant to national security through targeted export controls, investment screening, and counterintelligence activities.

(O) Informed by the interagency process established under section 1758 of the Export Control Reform Act of 2018 [50 U.S.C. 4817], a technology annex, which may be classified, describing an integrated and enduring approach to the identification, prioritization, development, and fielding of emerging technologies relevant to national security.

(2) Strategy

Each strategy submitted under subsection (b)(1)(C)(ii) shall, to the extent practicable, include the following:

(A) A plan to utilize available tools to address or minimize the leading threats and challenges and to take advantage of the leading opportunities, particularly in regards to technologies central to international competition in science and technology relevant to national security purposes, including the following:

(i) Specific objectives, tasks, metrics, and milestones for each relevant Federal agency.

(ii) Strategic objectives and priorities necessary to maintain the leadership of the United States in science and technology relevant to national security purposes, including near-term, medium-term, and long-term research priorities.

(iii) Specific plans to safeguard research and technology funded, as appropriate, in whole or in part, by the Federal Government, including in technologies critical to national security, from theft or exfiltration by foreign entities of concern.

(iv) Specific plans to support public and private sector investment in research, technology development, education and workforce development, and domestic manufacturing supportive of the national security of the United States and to foster the use of public-private partnerships.

(v) A description of the following:

(I) How the strategy submitted under subsection (b)(1)(C)(ii) supports the national security strategy.

(II) How the strategy submitted under such subsection is integrated and coordinated with the most recent—

(aa) national defense strategy under subsection (g) of section 113 of title 10; and

(bb) national science and technology strategy under section 6615 of this title.

(vi) A plan to encourage the governments of countries that are allies or partners of the United States to cooperate with the execution of such strategy, where appropriate.

(vii) A plan for strengthening the industrial base of the United States.

(viii) A plan to remove or update overly burdensome or outdated Federal regulations, as appropriate.

(ix) A plan—

(I) to further incentivize industry participation in public-private partnerships for the purposes of accelerating technology research and commercialization in support of national security, including alternate ways of accounting for in-kind contributions and valuing partially manufactured products;

(II) to ensure that intellectual property developed with Federal funding is commercialized in the United States; and

(III) to ensure, to the maximum appropriate extent, that intellectual property developed with Federal funding is not being used by foreign business entities that are majority owned or controlled (as such term is defined in section 800.208 of title 31, Code of Federal Regulations, or a successor regulation), or minority owned greater than 25 percent by—

(aa) any governmental organization of a foreign country of concern; or

(bb) any other entity that is—

(AA) known to be owned or controlled by any governmental organization of a foreign country of concern; or

(BB) organized under, or otherwise subject to, the laws of a foreign country of concern.

(x) An identification of additional resources, administrative action, or legislative action recommended to assist with the implementation of such strategy.

(d) Research and development funding

The Director of the Office of Science and Technology Policy shall, as the Director of the Office of Science and Technology Policy considers necessary, consult with the Director of the Office of Management and Budget and with the heads of such other elements of the Executive Office of the President as the Director of the Office of Science and Technology Policy considers appropriate to ensure the recommendations and priorities with respect to research and development funding relevant to national security, as expressed in the most recent report and strategy submitted under subsection (b)(1)(C) are incorporated into the development of annual budget requests for Federal research agencies.

(e) Publication

The Director of the Office of Science and Technology Policy shall, consistent with the protection of national security and other sensitive matters and to the maximum extent practicable, make each report submitted under subsection (b)(1)(C)(i) publicly available on an internet website of the Office of Science and Technology Policy. Each such report may include a classified annex if the Director of the Office of Science and Technology Policy determines such is appropriate.

(Pub. L. 117–167, div. B, title VI, §10612, Aug. 9, 2022, 136 Stat. 1635.)

Editorial Notes

References in Text

The Arms Export Control Act, referred to in subsec. (a)(2)(D)(iv), is Pub. L. 90–629, Oct. 22, 1968, 82 Stat. 1320, which is classified principally to chapter 39 (§2751 et seq.) of Title 22, Foreign Relations and Intercourse. For complete classification of this Act to the Code, see Short Title note set out under section 2751 of Title 22 and Tables.

The Export Control Reform Act of 2018, referred to in subsec. (a)(2)(D)(vi), is subtitle B (§§1741–1781) of title XVII of div. A of Pub. L. 115–232, Aug. 13, 2018, 132 Stat. 2208, which is classified principally to chapter 58 (§4801 et seq.) of Title 50, War and National Defense. For complete classification of this Act to the Code, see Short Title note set out under section 4801 of Title 50 and Tables.

The International Emergency Economic Powers Act, referred to in subsec. (a)(2)(D)(vii), is title II of Pub. L. 95–223, Dec. 28, 1977, 91 Stat. 1626, which is classified generally to chapter 35 (§1701 et seq.) of Title 50, War and National Defense. For complete classification of this Act to the Code, see Short Title note set out under section 1701 of Title 50 and Tables.

§19222. National research and development strategy for distributed ledger technology

(a) Definitions

In this section:

(1) Director

Except as otherwise expressly provided, the term "Director" means the Director of the Office of Science and Technology Policy.

(2) Distributed ledger

The term "distributed ledger" means a ledger that—

(A) is shared across a set of distributed nodes, which are devices or processes, that participate in a network and store a complete or partial replica of the ledger;

(B) is synchronized between the nodes;

(D) may be accessible to anyone (public) or restricted to a subset of participants (private); and

(E) may require participants to have authorization to perform certain actions (engaging) or require no authorization (permissionless).

(3) Distributed ledger technology

The term "distributed ledger technology" means technology that enables the operation and use of distributed ledgers.

(4) Institution of higher education

The term "institution of higher education" has the meaning given the term in section 1001 of title 20.

(5) Relevant congressional committees

The term "relevant congressional committees" means—

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

(B) the Committee on Science, Space, and Technology of the House of Representatives.

(6) Smart contract

The term "smart contract" means a computer program stored in a distributed ledger system that is executed when certain predefined conditions are satisfied and wherein the outcome of any execution of the program may be recorded on the distributed ledger.

(b) National distributed ledger technology research and development strategy

(1) In general

The Director, or a designee of the Director, shall, in coordination with the National Science and Technology Council, and the heads of such other relevant Federal agencies and entities as the Director considers appropriate, which may include the National Academies, and in consultation with such nongovernmental entities as the Director considers appropriate, develop a national strategy for the research and development of distributed ledger technologies and their applications, including applications of public and permissionless distributed ledgers. In developing the national strategy, the Director shall consider the following:

(A) Current efforts and coordination by Federal agencies to invest in the research and development of distributed ledger technologies and their applications, including through programs like the Small Business Innovation Research program, the Small Business Technology Transfer program, and the National Science Foundation's Innovation Corps programs.

(B)(i) The potential benefits and risks of applications of distributed ledger technologies across different industry sectors, including their potential to—

(I) lower transactions costs and facilitate new types of commercial transactions;

(II) protect privacy and increase individuals' data sovereignty;

(III) reduce friction to the interoperability of digital systems;

(IV) increase the accessibility, auditability, security, efficiency, and transparency of digital services;

(V) increase market competition in the provision of digital services;

(VI) enable dynamic contracting and contract execution through smart contracts;

(VII) enable participants to collaborate in trustless and disintermediated environments;

(VIII) enable the operations and governance of distributed organizations;

(IX) create new ownership models for digital items; and

(X) increase participation of populations historically underrepresented in the technology, business, and financial sectors.

(ii) In consideration of the potential risks of applications of distributed ledger technologies under clause (i), the Director shall take into account, where applicable—

(I) additional risks that may emerge from distributed ledger technologies, as identified in reports submitted to the President pursuant to Executive Order 14067, that may be addressed by research and development;

(II) software vulnerabilities in distributed ledger technologies and smart contracts;

(III) limited consumer literacy on engaging with applications of distributed ledger technologies in a secure way;

(IV) the use of distributed ledger technologies in illicit finance and their use in combating illicit finance;

(V) manipulative, deceptive, and fraudulent practices that harm consumers engaging with applications of distributed ledger technologies;

(VI) the implications of different consensus mechanisms for digital ledgers and governance and accountability mechanisms for applications of distributed ledger technologies, which may include decentralized networks;

(VII) foreign activities in the development and deployment of distributed ledger technologies and their associated tools and infrastructure; and

(VIII) environmental, sustainability, and economic impacts of the computational resources required for distributed ledger technologies.

(C) Potential uses for distributed ledger technologies that could improve the operations and delivery of services by Federal agencies, taking into account the potential of digital ledger technologies to—

(i) improve the efficiency and effectiveness of privacy-preserving data sharing among Federal agencies and with State, local, territorial, and Tribal governments;

(ii) promote government transparency by improving data sharing with the public;

(iii) introduce or mitigate risks that may threaten individuals' rights or broad access to Federal services;

(iv) automate and modernize processes for assessing and ensuring regulatory compliance; and

(v) facilitate broad access to financial services for underserved and underbanked populations.

(D) Ways to support public and private sector dialogue on areas of research that could enhance the efficiency, scalability, interoperability, security, and privacy of applications using distributed ledger technologies.

(E) The need for increased coordination of the public and private sectors on the development of voluntary standards in order to promote research and development, including standards regarding security, smart contracts, cryptographic protocols, virtual routing and forwarding, interoperability, zero-knowledge proofs, and privacy, for distributed ledger technologies and their applications.

(F) Applications of distributed ledger technologies that could positively benefit society but that receive relatively little private sector investment.

(G) The United States position in global leadership and competitiveness across research, development, and deployment of distributed ledger technologies.

(2) Consultation

(A) In general

In carrying out the Director's duties under this subsection, the Director shall consult with the following:

(i) Private industry.

(ii) Institutions of higher education, including minority-serving institutions.

(iii) Nonprofit organizations, including foundations dedicated to supporting distributed ledger technologies and their applications.

(iv) State governments.

(v) Such other persons as the Director considers appropriate.

(B) Representation

The Director shall ensure consultations with the following:

(i) Rural and urban stakeholders from across the Nation.

(ii) Small, medium, and large businesses.

(iii) Subject matter experts representing multiple industrial sectors.

(iv) A demographically diverse set of stakeholders.

(3) Coordination

In carrying out this subsection, the Director shall, for purposes of avoiding duplication of activities, consult, cooperate, and coordinate with the programs and policies of other relevant Federal agencies, including the interagency process outlined in section 3 of Executive Order 14067 (87 Fed. Reg. 14143; relating ensuring responsible development of digital assets).

(4) National strategy

Not later than 1 year after December 23, 2022, the Director shall submit to the relevant congressional committees and the President a national strategy that includes the following:

(A) Priorities for the research and development of distributed ledger technologies and their applications.

(B) Plans to support public and private sector investment and partnerships in research and technology development for societally beneficial applications of distributed ledger technologies.

(D) An identification of additional resources, administrative action, or legislative action recommended to assist with the implementation of such strategy.

(5) Research and development funding

The Director shall, as the Director considers necessary, consult with the Director of the Office of Management and Budget and with the heads of such other elements of the Executive Office of the President as the Director considers appropriate, to ensure that the recommendations and priorities with respect to research and development funding, as expressed in the national strategy developed under this subsection, are incorporated in the development of annual budget requests for Federal research agencies.

(c) Distributed ledger technology research

(1) In general

Subject to the availability of appropriations, the Director of the National Science Foundation shall make awards, on a competitive basis, to institutions of higher education, including minority-serving institutions, or nonprofit organizations (or consortia of such institutions or organizations) to support research, including interdisciplinary research, on distributed ledger technologies, their applications, and other issues that impact or are caused by distributed ledger technologies, which may include research on—

(A) the implications on trust, transparency, privacy, accessibility, accountability, and energy consumption of different consensus mechanisms and hardware choices, and approaches for addressing these implications;

(B) approaches for improving the security, privacy, resiliency, interoperability, performance, and scalability of distributed ledger technologies and their applications, which may include decentralized networks;

(C) approaches for identifying and addressing vulnerabilities and improving the performance and expressive power of smart contracts;

(D) the implications of quantum computing on applications of distributed ledger technologies, including long-term protection of sensitive information (such as medical or digital property), and techniques to address them;

(E) game theory, mechanism design, and economics underpinning and facilitating the operations and governance of decentralized networks enabled by distributed ledger technologies;

(F) the social behaviors of participants in decentralized networks enabled by distributed ledger technologies;

(G) human-centric design approaches to make distributed ledger technologies and their applications more usable and accessible;

(H) use cases for distributed ledger technologies across various industry sectors and government, including applications pertaining to—

(i) digital identity, including trusted identity and identity management;

(ii) digital property rights;

(iii) delivery of public services;

(iv) supply chain transparency;

(v) medical information management;

(vi) inclusive financial services;

(vii) community governance;

(viii) charitable giving;

(ix) public goods funding;

(x) digital credentials;

(xi) regulatory compliance;

(xii) infrastructure resilience, including against natural disasters; and

(xiii) peer-to-peer transactions; and

(I) the social, behavioral, and economic implications associated with the growth of applications of distributed ledger technologies, including decentralization in business, financial, and economic systems.

(2) Accelerating innovation

The Director of the National Science Foundation shall consider continuing to support startups that are in need of funding, would develop in and contribute to the economy of the United States, leverage distributed ledger technologies, have the potential to positively benefit society, and have the potential for commercial viability, through programs like the Small Business Innovation Research program, the Small Business Technology Transfer program, and, as appropriate, other programs that promote broad and diverse participation.

(3) Consideration of national distributed ledger technology research and development strategy

In making awards under paragraph (1), the Director of the National Science Foundation shall take into account the national strategy, as described in subsection (b)(4).

(4) Fundamental research

The Director of the National Science Foundation shall consider continuing to make awards supporting fundamental research in areas related to distributed ledger technologies and their applications, such as applied cryptography and distributed systems.

(d) Distributed ledger technology applied research project

(1) Applied research project

Subject to the availability of appropriations, the Director of the National Institute of Standards and Technology, may carry out an applied research project to study and demonstrate the potential benefits and unique capabilities of distributed ledger technologies.

(2) Activities

In carrying out the applied research project, the Director of the National Institute of Standards and Technology shall—

(A) identify potential applications of distributed ledger technologies, including those that could benefit activities at the Department of Commerce or at other Federal agencies, considering applications that could—

(i) improve the privacy and interoperability of digital identity and access management solutions;

(ii) increase the integrity and transparency of supply chains through the secure and limited sharing of relevant supplier information;

(iii) facilitate broader participation in distributed ledger technologies of populations historically underrepresented in technology, business, and financial sectors; or

(iv) be of benefit to the public or private sectors, as determined by the Director in consultation with relevant stakeholders;

(B) solicit and provide the opportunity for public comment relevant to potential projects;

(C) consider, in the selection of a project, whether the project addresses a pressing need not already addressed by another organization or Federal agency;

(D) establish plans to mitigate potential risks, including those outlined in subsection (b)(1)(B)(ii), if applicable, of potential projects;

(E) produce an example solution leveraging distributed ledger technologies for 1 of the applications identified in subparagraph (A);

(F) hold a competitive process to select private sector partners, if they are engaged, to support the implementation of the example solution;

(G) consider hosting the project at the National Cybersecurity Center of Excellence; and

(H) ensure that cybersecurity best practices consistent with the Cybersecurity Frame work of the National Institute of Standards and Technology are demonstrated in the project.

(3) Briefings to Congress

Not later than 1 year after December 23, 2022, the Director of the National Institute of Standards and Technology shall offer a briefing to the relevant congressional committees on the progress and current findings from the project under this subsection.

(4) Public report

Not later than 12 months after the completion of the project under this subsection, the Director of the National Institute of Standards and Technology shall make public a report on the results and findings from the project.

(Pub. L. 117–263, div. E, title LIX, §5913, Dec. 23, 2022, 136 Stat. 3443.)

Editorial Notes

References in Text

Executive Order 14067, referred to in subsec. (b)(1)(B)(ii)(I), (3), is Ex. Ord. No. 14067, Mar. 9, 2022, 87 F.R. 14143, which is set out as a note preceding section 5101 of Title 31, Money and Finance.

Codification

Section was enacted as part of the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023, and not as part of the Research and Development, Competition, and Innovation Act which in part comprises this chapter.