42 U.S.C. § 19222 — Untitled legal text

Page 9337 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 19222 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 Of- fice of Science and Technology Policy. (2) Distributed ledger The term ‘‘distributed ledger’’ means a ledg- er that— (A) is shared across a set of distributed nodes, which are devices or processes, that participate in a network and store a com- plete or partial replica of the ledger; (B) is synchronized between the nodes; (C) has data appended to it by following the ledger’s specified consensus mechanism; (D) may be accessible to anyone (public) or restricted to a subset of participants (pri- vate); and (E) may require participants to have au- thorization to perform certain actions (en- gaging) 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 commit- tees’’ 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 com- puter program stored in a distributed ledger system that is executed when certain predefined conditions are satisfied and where- in the outcome of any execution of the pro- gram may be recorded on the distributed ledg- er. (b) National distributed ledger technology re- search 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 appro- priate, which may include the National Acad- emies, and in consultation with such non- governmental entities as the Director con- siders appropriate, develop a national strategy for the research and development of distrib- uted ledger technologies and their applica- tions, including applications of public and permissionless distributed ledgers. In devel- oping 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 tech- nologies 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 Innova- tion Corps programs. (B)(i) The potential benefits and risks of applications of distributed ledger tech- nologies across different industry sectors, including their potential to— (I) lower transactions costs and facili- tate new types of commercial trans- actions; (II) protect privacy and increase individ- uals’ data sovereignty; (III) reduce friction to the interoper- ability 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 con- tracts; (VII) enable participants to collaborate in trustless and disintermediated environ- ments; (VIII) enable the operations and govern- ance of distributed organizations; (IX) create new ownership models for digital items; and (X) increase participation of populations historically underrepresented in the tech- nology, business, and financial sectors. (ii) In consideration of the potential risks of applications of distributed ledger tech- nologies 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 distrib- uted ledger technologies and smart con- tracts; (III) limited consumer literacy on engag- ing with applications of distributed ledger technologies in a secure way; (IV) the use of distributed ledger tech- nologies in illicit finance and their use in combating illicit finance; (V) manipulative, deceptive, and fraudu- lent practices that harm consumers engag- ing with applications of distributed ledger technologies; (VI) the implications of different con- sensus mechanisms for digital ledgers and governance and accountability mecha- nisms for applications of distributed ledger technologies, which may include decen- tralized networks; Page 9338 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 19222 (VII) foreign activities in the develop- ment and deployment of distributed ledger technologies and their associated tools and infrastructure; and (VIII) environmental, sustainability, and economic impacts of the computational re- sources required for distributed ledger technologies. (C) Potential uses for distributed ledger technologies that could improve the oper- ations and delivery of services by Federal agencies, taking into account the potential of digital ledger technologies to— (i) improve the efficiency and effective- ness 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 com- pliance; and (v) facilitate broad access to financial services for underserved and underbanked populations. (D) Ways to support public and private sec- tor dialogue on areas of research that could enhance the efficiency, scalability, inter- operability, security, and privacy of applica- tions using distributed ledger technologies. (E) The need for increased coordination of the public and private sectors on the devel- opment of voluntary standards in order to promote research and development, includ- ing standards regarding security, smart con- tracts, cryptographic protocols, virtual rout- ing and forwarding, interoperability, zero- knowledge proofs, and privacy, for distrib- uted ledger technologies and their applica- tions. (F) Applications of distributed ledger tech- nologies that could positively benefit soci- ety but that receive relatively little private sector investment. (G) The United States position in global leadership and competitiveness across re- search, development, and deployment of dis- tributed 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, in- cluding minority-serving institutions. (iii) Nonprofit organizations, including foundations dedicated to supporting dis- tributed ledger technologies and their ap- plications. (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 rel- evant Federal agencies, including the inter- agency process outlined in section 3 of Execu- tive 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 develop- ment of distributed ledger technologies and their applications. (B) Plans to support public and private sector investment and partnerships in re- search and technology development for soci- etally beneficial applications of distributed ledger technologies. (C) Plans to mitigate the risks of distrib- uted ledger technologies and their applica- tions. (D) An identification of additional re- sources, administrative action, or legislative action recommended to assist with the im- plementation of such strategy. (5) Research and development funding The Director shall, as the Director considers necessary, consult with the Director of the Of- fice of Management and Budget and with the heads of such other elements of the Executive Office of the President as the Director con- siders appropriate, to ensure that the rec- ommendations and priorities with respect to research and development funding, as ex- pressed 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 Founda- tion shall make awards, on a competitive basis, to institutions of higher education, in- cluding minority-serving institutions, or non- profit organizations (or consortia of such in- stitutions or organizations) to support re- search, including interdisciplinary research, on distributed ledger technologies, their appli- cations, and other issues that impact or are caused by distributed ledger technologies, which may include research on— (A) the implications on trust, trans- parency, privacy, accessibility, account- ability, and energy consumption of different consensus mechanisms and hardware Page 9339 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 19222 choices, and approaches for addressing these implications; (B) approaches for improving the security, privacy, resiliency, interoperability, per- formance, and scalability of distributed ledger technologies and their applications, which may include decentralized networks; (C) approaches for identifying and address- ing vulnerabilities and improving the per- formance and expressive power of smart con- tracts; (D) the implications of quantum com- puting 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 tech- nologies; (F) the social behaviors of participants in decentralized networks enabled by distrib- uted ledger technologies; (G) human-centric design approaches to make distributed ledger technologies and their applications more usable and acces- sible; (H) use cases for distributed ledger tech- nologies across various industry sectors and government, including applications per- taining 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 sys- tems. (2) Accelerating innovation The Director of the National Science Foun- dation shall consider continuing to support startups that are in need of funding, would de- velop 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 pro- gram, the Small Business Technology Transfer program, and, as appropriate, other programs that promote broad and diverse participation. (3) Consideration of national distributed ledg- er 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 Foun- dation shall consider continuing to make awards supporting fundamental research in areas related to distributed ledger tech- nologies and their applications, such as ap- plied cryptography and distributed systems. (d) Distributed ledger technology applied re- search 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 dem- onstrate the potential benefits and unique ca- pabilities 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 dis- tributed ledger technologies, including those that could benefit activities at the Depart- ment of Commerce or at other Federal agen- cies, considering applications that could— (i) improve the privacy and interoper- ability of digital identity and access man- agement solutions; (ii) increase the integrity and trans- parency of supply chains through the se- cure and limited sharing of relevant sup- plier information; (iii) facilitate broader participation in distributed ledger technologies of popu- lations historically underrepresented in technology, business, and financial sec- tors; 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 orga- nization 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 sub- paragraph (A); (F) hold a competitive process to select private sector partners, if they are engaged, to support the implementation of the exam- ple solution; (G) consider hosting the project at the Na- tional Cybersecurity Center of Excellence; and (H) ensure that cybersecurity best prac- tices consistent with the Cybersecurity Frame work of the National Institute of Standards and Technology are demonstrated in the project. Page 9340 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 19231 1 So in original. Probably should be followed by a period. (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 brief- ing 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 comple- tion of the project under this subsection, the Director of the National Institute of Stand- ards and Technology shall make public a re- port 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 com- prises this chapter. PART C—RESEARCH SECURITY § 19231. Requirements for foreign talent recruit- ment programs (a) Purpose The purpose of this part is to direct actions to prohibit participation in any foreign talent re- cruitment program by personnel of Federal re- search agencies and to prohibit participation in a malign foreign talent recruitment program by covered individuals involved with research and development awards from those agencies. (b) Guidance Not later than 180 days after August 9, 2022, the Director of the Office of Science and Tech- nology Policy, in coordination with the inter- agency working group established under section 1746 of the National Defense Authorization Act for Fiscal Year 2020 (42 U.S.C. 6601 note; Public Law 116–92), shall publish and widely distribute a uniform set of guidelines for Federal research agencies regarding foreign talent recruitment programs. Such policy guidelines shall— (1) prohibit all personnel of each Federal re- search agency, including Federal employees, contract employees, independent contractors, individuals serving under the Intergovern- mental Personnel Act of 1970 (42 U.S.C. 4701 et seq 1 ), Visiting Scientist, Engineering, and Ed- ucator appointments, and special government employees other than peer reviewers, from participating in a foreign talent recruitment program; (2) as part of the requirements under section 6605 of this title, require covered individuals to disclose if such individuals are a party to a foreign talent recruitment program contract, agreement, or other arrangement; (3) prohibit research and development awards from being made for any proposal in which a covered individual is participating in a malign foreign talent recruitment program; and (4) to the extent practicable, require recipi- ent institutions to prohibit covered individ- uals participating in malign foreign talent re- cruitment programs from working on projects supported by research and development awards. (c) Definition of foreign talent recruitment pro- grams As part of the guidance under subsection (b), the Director of the Office of Science and Tech- nology Policy shall define and describe the char- acteristics of a foreign talent recruitment pro- gram. (d) Implementation Not later than one year after August 9, 2022, each Federal research agency shall issue a pol- icy utilizing the guidelines under subsection (b). (e) Consistency The Director of the Office of Science and Tech- nology Policy shall ensure that the policies issued by the Federal research agencies under subsection (d) are consistent to the greatest ex- tent practicable. (Pub. L. 117–167, div. B, title VI, § 10631, Aug. 9, 2022, 136 Stat. 1664.) Editorial Notes REFERENCES IN TEXT The Intergovernmental Personnel Act of 1970, re- ferred to in subsec. (b)(1), is Pub. L. 91–648, Jan. 5, 1971, 84 Stat. 1909, which is classified principally to chapter 62 (§ 4701 et seq.) of this title. For complete classifica- tion of this Act to the Code, see Short Title note set out under section 4701 of this title and Tables. § 19232. Malign foreign talent recruitment pro- gram prohibition (a) In general Not later than 24 months after August 9, 2022, each Federal research agency shall establish a policy that, as part of a proposal for a research and development award from the agency— (1) each covered individual listed in such proposal certify that each such individual is not a party to a malign foreign talent recruit- ment program in the proposal submission of each such individual and annually thereafter for the duration of the award; and (2) each institution of higher education or other organization applying for such an award certify that each covered individual who is employed by such institution of higher edu- cation or other organization has been made aware of the requirements under this section and complied with the requirement under paragraph (1). (b) Stakeholder input In establishing a policy under subsection (a), Federal research agencies shall publish a de-