Bills · S. 4429 · Text

Reported to Senate

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S. 4429: the bill

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4429 Reported in Senate (RS)]

<DOC>





                                                       Calendar No. 671
119th CONGRESS
  2d Session
                                S. 4429

                          [Report No. 119-146]

To prohibit the importation, manufacture, sale, resale, or introduction 
into interstate commerce in the United States of connected vehicles and 
   related software and hardware associated with foreign adversaries.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 29, 2026

  Mr. Moreno (for himself, Ms. Slotkin, Mr. Cotton, Mr. Schmitt, Mr. 
 Tuberville, Mr. Ricketts, Mr. Hawley, Mrs. Capito, Mrs. Fischer, Ms. 
Baldwin, Ms. Lummis, Mr. Cramer, Mr. Budd, Mr. Curtis, Mr. Sheehy, Mr. 
   Sullivan, Mrs. Blackburn, Mr. Banks, Mr. Moran, Mr. Justice, Ms. 
Collins, Mr. Schumer, Mr. McCormick, Ms. Ernst, Mr. Cornyn, Mrs. Moody, 
   Mr. Husted, Mr. Scott of Florida, Mr. Gallego, Mr. Marshall, Mrs. 
Shaheen, Mr. Hickenlooper, Mr. Peters, Mr. Kelly, Mrs. Hyde-Smith, Mr. 
    Padilla, Ms. Rosen, Mr. Barrasso, Ms. Hassan, Mr. Heinrich, Mr. 
  Armstrong, Mr. Merkley, Mr. Coons, Mr. Blumenthal, Mr. Schiff, Ms. 
Warren, Ms. Klobuchar, Mr. Boozman, Mr. Lankford, Ms. Cortez Masto, Ms. 
 Smith, and Mr. Daines) introduced the following bill; which was read 
     twice and referred to the Committee on Commerce, Science, and 
                             Transportation

                           September 22, 2026

                Reported by Mr. Cruz, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
To prohibit the importation, manufacture, sale, resale, or introduction 
into interstate commerce in the United States of connected vehicles and 
   related software and hardware associated with foreign adversaries.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Connected Vehicle Security 
Act of 2026''.</DELETED>

<DELETED>SEC. 2. FINDINGS.</DELETED>

<DELETED>    Congress makes the following findings:</DELETED>
        <DELETED>    (1) The United States automotive industry is 
        critical to the national economy, supporting millions of jobs, 
        supply chains, and advanced manufacturing. The introduction of 
        vehicles and components controlled by foreign adversaries 
        threatens United States economic security, industrial 
        competitiveness, and technological leadership.</DELETED>
        <DELETED>    (2) The People's Republic of China has rapidly 
        expanded its automotive manufacturing capacity and is 
        increasingly targeting export markets. Despite having the 
        largest market in the world, the People's Republic of China 
        exports nearly 8,000,000 vehicles annually, approximately twice 
        the volume exported by any other country, demonstrating the 
        scale at which vehicles and components controlled by a foreign 
        adversary may enter global markets, including the United 
        States.</DELETED>
        <DELETED>    (3) Connected vehicles incorporate advanced 
        information and communications technologies that collect, 
        process, and transmit vast amounts of sensitive data, including 
        geolocation, operational, and personal information, and are 
        capable of being remotely accessed and controlled.</DELETED>
        <DELETED>    (4) In Executive Order 13873 (50 U.S.C. 1701 note; 
        relating to securing the information and communications 
        technology and services supply chain), the President declared a 
        national emergency with respect to the threat posed by foreign 
        adversaries creating and exploiting vulnerabilities in 
        information and communications technology and 
        services.</DELETED>
        <DELETED>    (5) The access, control, or influence of vehicle 
        connectivity systems or automated driving systems by foreign 
        adversaries creates substantial economic and national security 
        risks to the United States, including risks of surveillance, 
        espionage, cyber intrusion, and disruption of critical 
        infrastructure. Such risks fall within the scope of the 
        national emergency described in Executive Order 13873 and pose 
        an unacceptable threat to the security and resilience of the 
        United States.</DELETED>

<DELETED>SEC. 3. DEFINITIONS.</DELETED>

<DELETED>    In this Act:</DELETED>
        <DELETED>    (1) Automated driving system.--The term 
        ``automated driving system'' means hardware and software that, 
        collectively, are capable of performing the entire dynamic 
        driving task for a connected vehicle on a sustained basis, 
        regardless of whether it is limited to a specific operational 
        design domain.</DELETED>
        <DELETED>    (2) Connected vehicle.--</DELETED>
                <DELETED>    (A) In general.--Except as provided by 
                subparagraph (B), the term ``connected vehicle'' means 
                a vehicle driven or drawn by mechanical power and 
                manufactured primarily for use on public streets, 
                roads, and highways, that--</DELETED>
                        <DELETED>    (i) integrates onboard networked 
                        hardware with automotive software systems to 
                        communicate via dedicated short-range 
                        communication, cellular telecommunications 
                        connectivity, satellite communication, or other 
                        wireless spectrum connectivity with any other 
                        network or device; or</DELETED>
                        <DELETED>    (ii) is designed, manufactured, or 
                        originally equipped to communicate via such 
                        methods, regardless of whether such capability 
                        is enabled, disabled, or removed at the time of 
                        importation, manufacture, sale, resale, or 
                        introduction of the vehicle into interstate 
                        commerce in the United States.</DELETED>
                <DELETED>    (B) Exclusion.--The term ``connected 
                vehicle'' does not include a vehicle operated only on a 
                rail line.</DELETED>
        <DELETED>    (3) Connected vehicle hardware.--The term 
        ``connected vehicle hardware'' means--</DELETED>
                <DELETED>    (A) a vehicle connectivity system; 
                and</DELETED>
                <DELETED>    (B) vehicle connectivity system 
                hardware.</DELETED>
        <DELETED>    (4) Country of origin.--The term ``country of 
        origin'', with respect to an item, means the country--
        </DELETED>
                <DELETED>    (A) in which the item is manufactured; 
                or</DELETED>
                <DELETED>    (B) the government of which owns or 
                controls, or has jurisdiction or direction over--
                </DELETED>
                        <DELETED>    (i) the entity manufacturing the 
                        item; or</DELETED>
                        <DELETED>    (ii) the entity supplying the 
                        item.</DELETED>
        <DELETED>    (5) Covered country.--The term ``covered country'' 
        means--</DELETED>
                <DELETED>    (A) the Democratic People's Republic of 
                North Korea;</DELETED>
                <DELETED>    (B) the People's Republic of 
                China;</DELETED>
                <DELETED>    (C) the Russian Federation; and</DELETED>
                <DELETED>    (D) the Islamic Republic of 
                Iran.</DELETED>
        <DELETED>    (6) Covered software.--The term ``covered 
        software''--</DELETED>
                <DELETED>    (A) means the software-based components 
                installed in or on a connected vehicle, or designed to 
                be installed in or on a connected vehicle, including 
                application, middleware, and system software, executed 
                by the primary processing unit or units of an item that 
                directly enables the function of a vehicle connectivity 
                system or automated driving system at the vehicle 
                level; and</DELETED>
                <DELETED>    (B) includes any machine-learning model or 
                other artificial intelligence component that directly 
                enables decision-making or control of an automated 
                driving system at the vehicle level.</DELETED>
        <DELETED>    (7) Electric vehicle.--The term ``electric 
        vehicle'' has the meaning given that term in section 3 of the 
        Electric and Hybrid Vehicle Research, Development, and 
        Demonstration Act of 1976 (15 U.S.C. 2502).</DELETED>
        <DELETED>    (8) Importation.--The term ``importation'' has the 
        meaning given the term ``import'' in section 1001 of the 
        Controlled Substances Import and Export Act (21 U.S.C. 
        951).</DELETED>
        <DELETED>    (9) Resale.--</DELETED>
                <DELETED>    (A) In general.--The term ``resale'', with 
                respect to an item, means the transfer of ownership of 
                the item by an individual or entity that acquired the 
                item for the purpose of transfer in the ordinary course 
                of business, and not for the use of or consumption by 
                the individual or entity.</DELETED>
                <DELETED>    (B) Exclusion.--The term ``resale'' does 
                not include the transfer of a connected vehicle that 
                was previously titled or registered to, and used by, a 
                consumer or end-user or was acquired for bona fide use, 
                lease, or operation by the individual or entity 
                transferred the vehicle.</DELETED>
        <DELETED>    (10) Safety equipment.--The term ``safety 
        equipment'', with respect to a vehicle, means air bags, air bag 
        inflators, and seatbelt systems.</DELETED>
        <DELETED>    (11) Secretary.--The term ``Secretary'' means the 
        Secretary of Commerce, acting through the Under Secretary of 
        Commerce for Industry and Security.</DELETED>
        <DELETED>    (12) Transaction.--The term ``transaction''--
        </DELETED>
                <DELETED>    (A) means any acquisition, importation, 
                transfer, installation, dealing in, or use of any item 
                subject to a prohibition under section 4(a), including 
                ongoing activities, such as managed services, data 
                transmission, software updates, repairs, or the 
                platforming or data hosting of applications for 
                consumer download; and</DELETED>
                <DELETED>    (B) includes--</DELETED>
                        <DELETED>    (i) any other transaction, the 
                        structure of which is designed or intended to 
                        evade or circumvent this Act; and</DELETED>
                        <DELETED>    (ii) a class of 
                        transactions.</DELETED>
        <DELETED>    (13) Vehicle connectivity system.--The term 
        ``vehicle connectivity system'' means a vehicle connectivity 
        system hardware or covered software item installed in or on a 
        connected vehicle, or designed to be installed in or on a 
        connected vehicle, that directly enables the function of 
        transmission, receipt, conversion, or processing of radio 
        frequency communications at a frequency over 450 
        megahertz.</DELETED>
        <DELETED>    (14) Vehicle connectivity system hardware.--The 
        term ``vehicle connectivity system hardware''--</DELETED>
                <DELETED>    (A) means software-enabled or programmable 
                components that--</DELETED>
                        <DELETED>    (i) are installed in or on a 
                        connected vehicle or designed to be installed 
                        in or on a connected vehicle;</DELETED>
                        <DELETED>    (ii) are directly connected to a 
                        vehicle connectivity system; and</DELETED>
                        <DELETED>    (iii) directly enable the function 
                        of a vehicle connectivity system or are part of 
                        an item that directly enables the function of a 
                        vehicle connectivity system; and</DELETED>
                <DELETED>    (B) includes--</DELETED>
                        <DELETED>    (i) microcontrollers, 
                        microcomputers or modules, systems on a chip, 
                        networking or telematics units, cellular modem/
                        modules, Wi-Fi microcontrollers or modules, 
                        Bluetooth microcontrollers or modules, 
                        satellite communication systems, other wireless 
                        communication microcontrollers or modules, 
                        external antennas, digital signal processors, 
                        and field-programmable gate arrays;</DELETED>
                        <DELETED>    (ii) electronic systems integrated 
                        into a battery that directly enable or control 
                        the monitoring, management, security, or 
                        external communication of battery performance 
                        or operation, including any transmitter or 
                        interface component that performs such 
                        functions; and</DELETED>
                        <DELETED>    (iii) safety equipment.</DELETED>

<DELETED>SEC. 4. PROHIBITION ON CONNECTED VEHICLES AND OTHER 
              TRANSACTIONS THAT THREATEN ECONOMIC OR NATIONAL 
              SECURITY.</DELETED>

<DELETED>    (a) Prohibitions.--</DELETED>
        <DELETED>    (1) Connected vehicles.--On and after January 1, 
        2027, the importation, manufacture, sale, resale, or 
        introduction into interstate commerce in the United States of a 
        connected vehicle is prohibited if--</DELETED>
                <DELETED>    (A) the country of origin of the connected 
                vehicle is a covered country or the connected vehicle 
                is designed within a covered country, without regard to 
                whether--</DELETED>
                        <DELETED>    (i) at the time of importation, 
                        sale, resale, or introduction, the vehicle is 
                        equipped with any covered software or connected 
                        vehicle hardware subject to a prohibition under 
                        paragraph (2) or (3); or</DELETED>
                        <DELETED>    (ii) any such covered software or 
                        connected vehicle hardware--</DELETED>
                                <DELETED>    (I) is removed from the 
                                vehicle before importation, sale, 
                                resale, or introduction; or</DELETED>
                                <DELETED>    (II) will be installed 
                                after importation, sale, resale, or 
                                introduction; or</DELETED>
                <DELETED>    (B) the manufacturer of the connected 
                vehicle is a joint venture, subsidiary, or other entity 
                in which more than 15 percent of the equity interest, 
                voting interest, board representation, or other indicia 
                of control, whether directly or indirectly, is owned or 
                controlled by an entity, or combination of entities, 
                organized under the laws of, or with its principal 
                place of business in, a covered country.</DELETED>
        <DELETED>    (2) Covered software.--On and after January 1, 
        2027, the integration of covered software into a connected 
        vehicle that is imported, manufactured, sold, resold, or 
        introduced into interstate commerce into the United States is 
        prohibited if--</DELETED>
                <DELETED>    (A) the country of origin of the covered 
                software is a covered country; or</DELETED>
                <DELETED>    (B) the developer of the software--
                </DELETED>
                        <DELETED>    (i) is organized under the laws 
                        of, or has its principal place of business in, 
                        a covered country; or</DELETED>
                        <DELETED>    (ii) is a joint venture, 
                        subsidiary, or other entity in which more than 
                        25 percent of the equity interest, voting 
                        interest, board representation, or other 
                        indicia of control, whether directly or 
                        indirectly, is owned or controlled by an 
                        entity, or combination of entities, described 
                        in clause (i).</DELETED>
        <DELETED>    (3) Connected vehicle hardware.--</DELETED>
                <DELETED>    (A) In general.--On and after January 1, 
                2030, the importation, manufacture, sale, resale, or 
                introduction into interstate commerce in the United 
                States of any connected vehicle hardware is prohibited 
                if--</DELETED>
                        <DELETED>    (i) the country of origin of the 
                        hardware is a covered country; or</DELETED>
                        <DELETED>    (ii) the manufacturer of the 
                        hardware--</DELETED>
                                <DELETED>    (I) is organized under the 
                                laws of, or has its principal place of 
                                business in, a covered country; 
                                or</DELETED>
                                <DELETED>    (II) is a joint venture, 
                                subsidiary, or other entity in which 
                                more than 25 percent of the equity 
                                interest, voting interest, board 
                                representation, or other indicia of 
                                control, whether directly or 
                                indirectly, is owned or controlled by 
                                an entity, or combination of entities, 
                                described in subclause (I).</DELETED>
                <DELETED>    (B) Repair and warranty.--The prohibition 
                under subparagraph (A) shall not apply to connected 
                vehicle hardware that is imported, manufactured, sold, 
                resold, or introduced into interstate commerce in the 
                United States for the purpose of repair or under 
                warranty for a connected vehicle with a model year 
                before model year 2030.</DELETED>
        <DELETED>    (4) Additional items.--Subject to an applicable 
        ruling or advisory opinion issued under subsection (d), a 
        prohibition under paragraph (1), (2), or (3) applies with 
        respect to a connected vehicle, covered software, or connected 
        vehicle hardware, as the case may be, that is renamed, 
        rebranded, restructured, or altered to circumvent the 
        prohibition.</DELETED>
        <DELETED>    (5) Exception.--The prohibitions under paragraphs 
        (1), (2), and (3) shall not apply to the importation, 
        manufacture, sale, resale, or introduction into interstate 
        commerce in the United States of a connected vehicle, covered 
        software, or connected vehicle hardware, as the case may be, 
        for the sole purpose of testing and evaluation by an entity 
        that--</DELETED>
                <DELETED>    (A) is organized under the laws of a State 
                in the United States;</DELETED>
                <DELETED>    (B) does not have its principal place of 
                business in a covered country; and</DELETED>
                <DELETED>    (C) is not 25 percent or more, whether 
                directly or indirectly, owned or controlled by an 
                entity, or combination of entities, organized under the 
                laws of, or with its principal place of business in, a 
                covered country.</DELETED>
<DELETED>    (b) Related Transactions.--</DELETED>
        <DELETED>    (1) In general.--The Secretary shall prescribe 
        regulations, pursuant to section 553 of title 5, United States 
        Code, to prohibit any specific transaction relating to 
        connected vehicles, including the importation, sale, 
        distribution, integration, or use of a connected vehicle, 
        covered software, connected vehicle hardware, or any other item 
        subject to a prohibition under subsection (a), that the 
        Secretary determines poses an undue or unacceptable threat to 
        the economic or national security of the United 
        States.</DELETED>
        <DELETED>    (2) Notice.--If the Secretary prohibits a 
        transaction under paragraph (1), the Secretary shall deliver, 
        by certified United States mail, to the parties to the 
        transaction a notice of the prohibition that includes an 
        identification, by name, of the specific item that the 
        Secretary determines poses an undue or unacceptable threat to 
        the economic or national security of the United 
        States.</DELETED>
<DELETED>    (c) Authorizations.--</DELETED>
        <DELETED>    (1) Issuance.--</DELETED>
                <DELETED>    (A) In general.--The Secretary, in 
                consultation with the Secretary of Defense, the 
                Secretary of Transportation, the Secretary of State, 
                and the Secretary of Energy, may issue a general or 
                specific authorization for the importation, 
                manufacture, sale, resale, or introduction into 
                interstate commerce in the United States of an item 
                that would otherwise be subject to the prohibitions 
                under subsection (a) if--</DELETED>
                        <DELETED>    (i) the Secretary determines, 
                        based on clear and convincing evidence and a 
                        written risk assessment, that the importation, 
                        manufacture, sale, resale, or introduction of 
                        the item does not pose, and is not reasonably 
                        likely to pose--</DELETED>
                                <DELETED>    (I) an undue risk of data 
                                exfiltration from, or remote 
                                manipulation or operation of, a 
                                connected vehicle;</DELETED>
                                <DELETED>    (II) a risk to critical 
                                infrastructure or the integrity of the 
                                industrial base of the United States; 
                                or</DELETED>
                                <DELETED>    (III) any other risk to 
                                the national security of the United 
                                States;</DELETED>
                        <DELETED>    (ii) not less than 60 days before 
                        the authorization takes effect, the Secretary 
                        submits to Congress a detailed written 
                        notification, including the determination under 
                        clause (i) and underlying analysis, including 
                        the written risk assessment; and</DELETED>
                        <DELETED>    (iii) during the 60-day period 
                        described in clause (ii), there is not enacted 
                        into law a joint resolution of disapproval with 
                        respect to the authorization of the 
                        item.</DELETED>
                <DELETED>    (B) Continued validity and modification 
                and revocation of authorizations.--</DELETED>
                        <DELETED>    (i) Continued validity of existing 
                        authorizations.--Except as provided by clauses 
                        (ii) and (iii), any general or specific 
                        authorization issued under subparagraph (A) or 
                        subpart D of part 791 of title 15, Code of 
                        Federal Regulations, before January 1, 2030, 
                        shall remain in effect until January 1, 2032, 
                        unless modified, suspended or revoked under 
                        clause (ii).</DELETED>
                        <DELETED>    (ii) Modification or revocation of 
                        general or specific authorizations.--The 
                        Secretary may, at any time, modify, suspend, or 
                        revoke a general or specific authorization 
                        described in clause (i) if the Secretary--
                        </DELETED>
                                <DELETED>    (I) determines that the 
                                authorization no longer satisfies the 
                                requirements of subparagraph (A)(i); 
                                and</DELETED>
                                <DELETED>    (II) provides the public 
                                with an opportunity to comment before 
                                modifying, suspending, or revoking the 
                                authorization.</DELETED>
        <DELETED>    (2) Publication of list of authorized items.--
        </DELETED>
                <DELETED>    (A) In general.--The Secretary shall 
                publish, pursuant to section 553 of title 5, United 
                States Code, and maintain a list of the items the 
                importation, manufacture, sale, resale, or introduction 
                into interstate commerce in the United States of which 
                is authorized under paragraph (1). The initial such 
                list shall be published not later than January 1, 
                2027.</DELETED>
                <DELETED>    (B) Inclusions.--</DELETED>
                        <DELETED>    (i) In general.--To the extent 
                        possible, the Secretary shall include, in the 
                        list required by subparagraph (A), the 
                        manufacturer and product name for each item on 
                        the list.</DELETED>
                        <DELETED>    (ii) Other identifying 
                        characteristics.--When it is not possible to 
                        include, in the list required by subparagraph 
                        (A), the manufacturer and product name for an 
                        item, the Secretary shall provide technical 
                        criteria sufficient to enable the automotive 
                        industry and importers to determine without 
                        undue difficulty whether the importation, 
                        manufacture, sale, resale, or introduction into 
                        interstate commerce in the United States of an 
                        item is authorized under paragraph (1). In 
                        carrying out this clause, the Secretary shall 
                        protect intellectual property to the extent 
                        practicable.</DELETED>
                        <DELETED>    (iii) Risk assessment.--To the 
                        extent possible, the Secretary shall include, 
                        in the list required by subparagraph (A), a 
                        detailed explanation about why each item on the 
                        list does not pose an undue risk described in 
                        subparagraph (A) or (B) of paragraph 
                        (1).</DELETED>
        <DELETED>    (3) Requests for authorization.--Not later than 
        January 1, 2027, the Secretary shall establish a procedure 
        pursuant to which an importer, manufacturer, supplier, or 
        seller or reseller may seek the authorization under paragraph 
        (1) of the importation, manufacture, sale, resale, or 
        introduction into interstate commerce in the United States of 
        an item described in subsection (a) that would otherwise be 
        subject to the prohibitions under that subsection.</DELETED>
<DELETED>    (d) Rulings and Advisory Opinions.--</DELETED>
        <DELETED>    (1) In general.--Not later than January 1, 2027, 
        the Secretary shall establish a procedure pursuant to which an 
        importer, manufacturer, or seller or reseller may seek a 
        binding ruling or advisory opinion with respect to whether--
        </DELETED>
                <DELETED>    (A) the importation, manufacture, sale, 
                resale, or introduction into interstate commerce in the 
                United States of an item is or is not prohibited under 
                this section; or</DELETED>
                <DELETED>    (B) a connected vehicle, covered software, 
                or connected vehicle hardware has been renamed, 
                rebranded, restructured, or altered to circumvent the 
                prohibitions under subsection (a).</DELETED>
        <DELETED>    (2) Timing.--The Secretary shall issue a ruling or 
        advisory opinion under paragraph (1) with respect to an item 
        not later than 45 days after receiving an application supported 
        by a reasonably clear description of the item.</DELETED>
        <DELETED>    (3) Publication.--</DELETED>
                <DELETED>    (A) In general.--The Secretary shall--
                </DELETED>
                        <DELETED>    (i) publish a list of the items 
                        for which the Secretary has issued rulings and 
                        advisory opinions under paragraph (1); 
                        and</DELETED>
                        <DELETED>    (ii) update that list not less 
                        frequently than annually.</DELETED>
                <DELETED>    (B) Prohibition on publication of 
                identifying information.--The Secretary shall not 
                publish the name of, or other information that might 
                reasonably identify, the party that requested the 
                ruling or advisory opinion.</DELETED>
        <DELETED>    (4) Continued validity of existing rulings and 
        opinions.--Except as provided by paragraph (5), a ruling or 
        advisory opinion issued under this subsection or subpart D of 
        part 791 of title 15, Code of Federal Regulations, before 
        January 1, 2027, shall remain in effect.</DELETED>
        <DELETED>    (5) Modification or revocation.--The Secretary may 
        modify, suspend, or revoke any binding ruling or advisory 
        opinion issued under paragraph (1) or subpart D of part 791 of 
        title 15, Code of Federal Regulations, with respect to an item 
        at any time if the Secretary determines that the circumstances 
        that led to the ruling or opinion have changed.</DELETED>
<DELETED>    (e) Declaration of Conformity.--The Secretary shall 
establish a process under which a person that imports, manufactures, 
sells, resells, or introduces into interstate commerce in the United 
States a connected vehicle or connected vehicle hardware is required to 
submit a declaration, to be known as a ``declaration of conformity'', 
to the Secretary before importing, manufacturing, selling, reselling, 
or introducing the vehicle or hardware that certifies that the vehicle 
or hardware is not subject to a prohibition under subsection 
(a).</DELETED>
<DELETED>    (f) Civil Penalties.--</DELETED>
        <DELETED>    (1) In general.--The Secretary shall assess a 
        civil penalty for each transaction that is a violation of a 
        prohibition under subsection (a) in an amount that is not less 
        than the greater of--</DELETED>
                <DELETED>    (A) $1,500,000; or</DELETED>
                <DELETED>    (B) five times the value of the 
                transaction.</DELETED>
        <DELETED>    (2) Continuing violations.--In the case of a 
        violation that occurs on more than one day, each day on which 
        the violation continues shall be treated as a separate 
        violation.</DELETED>
<DELETED>    (g) Classified Information.--The Secretary may rely on 
classified information in carrying out this section, which may be 
submitted to a reviewing court ex parte and in camera.</DELETED>
<DELETED>    (h) Petitions for Review.--The filing in a court of a 
petition for review shall not stay the effectiveness of any action 
under this section unless ordered by the court.</DELETED>

<DELETED>SEC. 5. USE OF EXISTING ADVISORY BODIES; INTERAGENCY 
              COORDINATION.</DELETED>

<DELETED>    (a) Use of Existing Advisory Bodies.--</DELETED>
        <DELETED>    (1) In general.--In carrying out this Act, the 
        Secretary may consult, as appropriate, with existing advisory 
        committees of the Department of Transportation and other 
        relevant Federal agencies, including the Advisory Committee on 
        Automation in Transportation, on matters relating to connected 
        vehicles and associated national security risks.</DELETED>
        <DELETED>    (2) Scope of consultation.--Consultation under 
        paragraph (1) may include consideration of--</DELETED>
                <DELETED>    (A) risks relating to data security, 
                cybersecurity, and supply chain integrity associated 
                with connected vehicles;</DELETED>
                <DELETED>    (B) the effectiveness of authorities and 
                regulations issued under this Act;</DELETED>
                <DELETED>    (C) emerging technologies and threat 
                vectors relevant to connected vehicle ecosystems; 
                and</DELETED>
                <DELETED>    (D) recommendations made to the Secretary 
                with respect to regulatory, enforcement, and policy 
                measures to mitigate risks described in subparagraph 
                (A).</DELETED>
<DELETED>    (b) Interagency Coordination.--In carrying out this Act, 
the Secretary may consult and coordinate, as appropriate, with the 
Federal Communications Commission and other relevant Federal agencies 
to ensure alignment with respect to the scope, timeline, and 
implementation of any prohibitions or restrictions issued under this 
Act, including to avoid duplicative, inconsistent, or conflicting 
regulatory requirements.</DELETED>

<DELETED>SEC. 6. REPORTS.</DELETED>

<DELETED>    Not later than one year after the date of the enactment of 
this Act, and annually thereafter, the Secretary shall submit to 
Congress a report--</DELETED>
        <DELETED>    (1) describing activities carried out to enforce 
        the prohibitions under section 4, including enforcement actions 
        taken and resources utilized;</DELETED>
        <DELETED>    (2) providing a detailed accounting of items 
        covered by such prohibitions during the 1-year period preceding 
        submission of the report;</DELETED>
        <DELETED>    (3) explaining any exclusions, exemptions, or 
        determinations made by the Secretary, including the rationale 
        and criteria applied;</DELETED>
        <DELETED>    (4) assessing the effectiveness of such 
        prohibitions in decreasing the threats to the economic and 
        national security of the United States posed by connected 
        vehicles;</DELETED>
        <DELETED>    (5) including metrics on enforcement, compliance 
        rates, violations identified, penalties assessed, and any 
        identified gaps or challenges; and</DELETED>
        <DELETED>    (6) making recommendations with respect to further 
        decreasing such threats.</DELETED>

<DELETED>SEC. 7. SEVERABILITY; REGULATORY CONTINUITY.</DELETED>

<DELETED>    (a) Severability.--If any provision of this Act, or the 
application of such provision to any person or circumstance, is held to 
be invalid, the remainder of this Act, and the application of the 
remaining provisions to any person or circumstance, shall not be 
affected.</DELETED>
<DELETED>    (b) Restoration of Prior Regulations.--If a court of 
competent jurisdiction enters a final judgment holding invalid or 
unenforceable a provision of this Act and supersedes regulations 
prescribed to carry out section 4, the Secretary may, notwithstanding 
any other provision of this Act, reissue or reinstate, in whole or in 
part, any similar regulations that were in effect on the day before the 
date of the enactment of this Act.</DELETED>

<DELETED>SEC. 8. INTERACTION WITH REGULATIONS.</DELETED>

<DELETED>    (a) Rule of Construction.--Nothing in this Act shall be 
construed to prohibit, limit, or otherwise affect the authority of the 
Secretary of Commerce to implement or administer subpart D of part 791 
of title 15, Code of Federal Regulations, as added by the final rule of 
the Bureau of Industry and Security entitled ``Securing the Information 
and Communications Technology and Services Supply Chain: Connected 
Vehicles'' (90 Fed. Reg. 5360).</DELETED>
<DELETED>    (b) Delayed Implementation for Software and Hardware Not 
Covered by Regulations.--In the case of covered software and connected 
vehicle hardware that is subject to a prohibition under paragraph (2) 
or (3) of section 4(a) and is not subject to subpart D of part 791 of 
title 15, Code of Federal Regulations, as in effect on the day before 
the date of the enactment of this Act, the Secretary shall implement 
the prohibition under section 4(a) after January 1, 2030, and before 
January 1, 2032.</DELETED>
<DELETED>    (c) Treatment of Prior Exclusions.--</DELETED>
        <DELETED>    (1) In general.--Subject to paragraph (2), any 
        exclusion or exception to a prohibition under subpart D of part 
        791 of title 15, Code of Federal Regulations, as in effect on 
        the day before the date of the enactment of this Act, shall 
        remain valid and shall apply to the prohibitions under section 
        4(a).</DELETED>
        <DELETED>    (2) Rulemaking.--Beginning January 1, 2030, the 
        Secretary shall conduct a rulemaking, pursuant to section 553 
        of title 5, United States Code, to determine whether exclusions 
        or exceptions described in paragraph (1) should be continued, 
        modified, or terminated for the purposes of this Act.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Connected Vehicle Security Act of 
2026''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The United States automotive industry is critical to 
        the national economy, supporting millions of jobs, supply 
        chains, and advanced manufacturing. The introduction of 
        vehicles and components controlled by foreign adversaries 
        threatens the industrial competitiveness and technological 
        leadership of the United States.
            (2) The People's Republic of China has rapidly expanded its 
        automotive manufacturing capacity and is increasingly targeting 
        export markets. Despite having the largest market in the world, 
        the People's Republic of China exports nearly 8,000,000 
        vehicles annually, approximately twice the volume exported by 
        any other country, demonstrating the scale at which vehicles 
        and components controlled by a foreign adversary may enter 
        global markets, including the United States.
            (3) Connected vehicles incorporate advanced information and 
        communications technologies that collect, process, and transmit 
        vast amounts of sensitive data, including geolocation, 
        operational, and personal information, and are capable of being 
        remotely accessed and controlled.
            (4) In Executive Order 13873 (50 U.S.C. 1701 note; relating 
        to securing the information and communications technology and 
        services supply chain), the President declared a national 
        emergency with respect to the threat posed by foreign 
        adversaries creating and exploiting vulnerabilities in 
        information and communications technology and services.
            (5) The access, control, or influence of vehicle 
        connectivity systems or automated driving systems by foreign 
        adversaries creates substantial economic and national security 
        risks to the United States, including risks of surveillance, 
        espionage, cyber intrusion, and disruption of critical 
        infrastructure. Such risks fall within the scope of the 
        national emergency described in Executive Order 13873 and pose 
        an unacceptable threat to the security and resilience of the 
        United States.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Automated driving system.--The term ``automated driving 
        system'' means hardware and software that, collectively, are 
        capable of performing the entire dynamic driving task for a 
        connected vehicle on a sustained basis, regardless of whether 
        the system is limited to a specific operational design domain.
            (2) Connected vehicle.--
                    (A) In general.--Except as provided by subparagraph 
                (B) or (C), the term ``connected vehicle'' means a 
                vehicle driven or drawn by mechanical power, regardless 
                of propulsion technology, and manufactured primarily 
                for use on public streets, roads, and highways, that 
                has a gross vehicle weight rating of 4,536 kilograms 
                (10,000 pounds) or less and--
                            (i) integrates onboard networked hardware 
                        with automotive software systems to 
                        communicate, at a radio frequency over 450 
                        megahertz, via dedicated short-range 
                        communication, cellular telecommunications 
                        connectivity, satellite communication, or other 
                        wireless spectrum connectivity with any other 
                        network or device; or
                            (ii) is designed, manufactured, or equipped 
                        to communicate as described in clause (i), 
                        regardless of whether the capability to 
                        communicate as described in clause (i) has been 
                        removed before the time of importation, 
                        manufacture, sale, resale, or introduction of 
                        the vehicle into interstate commerce in the 
                        United States.
                    (B) Exclusion.--The term ``connected vehicle'' does 
                not include a vehicle operated only on a rail line.
                    (C) Application to section 9.--In section 9, the 
                term ``connected vehicle'' applies without regard to 
                the limitation on the gross vehicle weight rating under 
                subparagraph (A).
            (3) Covered country.--The term ``covered country'' means--
                    (A) the Democratic People's Republic of North 
                Korea;
                    (B) the People's Republic of China;
                    (C) the Russian Federation; and
                    (D) the Islamic Republic of Iran.
            (4) Covered software.--
                    (A) In general.--Except as otherwise provided in 
                this paragraph, the term ``covered software'' means a 
                software-based component, including any application, 
                middleware, system software, and any machine-learning 
                model or other artificial intelligence component, that 
                is installed in or on a connected vehicle, or designed 
                to be installed in or on a connected vehicle, and that 
                is executed by the primary processing unit or units of 
                an item that directly enables, at the vehicle level, 
                the function of a vehicle connectivity system or 
                automated driving system, including decision-making or 
                control of an automated driving system.
                    (B) Exclusion.--The term ``covered software'' does 
                not include--
                            (i) open-source software, unless that open-
                        source software has been modified for 
                        proprietary purposes and not redistributed or 
                        shared; or
                            (ii) software subcomponents that were 
                        designed, developed, manufactured, or supplied 
                        prior to March 17, 2026, as long as those 
                        software subcomponents are not maintained, 
                        augmented, or otherwise altered by a foreign 
                        entity of concern after March 17, 2026.
            (5) Electric vehicle battery.--The term ``electric vehicle 
        battery'' means a rechargeable battery designed to store and 
        supply electrical energy for the propulsion of a hybrid or 
        electric vehicle.
            (6) Foreign entity of concern.--The term ``foreign entity 
        of concern'' means--
                    (A) any individual, wherever located, who--
                            (i) acts as an agent, representative, or 
                        employee, or acts in any other capacity at the 
                        order, request, or under the direction or 
                        control, of a covered country or of a person 
                        whose activities are directly or indirectly 
                        supervised, directed, controlled, financed, or 
                        subsidized in whole or in majority part by a 
                        covered country; or
                            (ii) is a citizen or resident of a covered 
                        country or a country controlled by a covered 
                        country, and is not a United States citizen or 
                        alien lawfully admitted for permanent residence 
                        in the United States; or
                    (B) an entity--
                            (i) with a principal place of business in, 
                        headquartered in, incorporated in, or otherwise 
                        organized under the laws of a covered country 
                        or a country controlled by a covered country;
                            (ii) that is a subsidiary or affiliate of 
                        an entity described in clause (i); or
                            (iii) wherever organized or doing business, 
                        that is owned or controlled by a covered 
                        country, or that is subject to other 
                        circumstances, such as through participation in 
                        a partnership or joint venture or other formal 
                        or informal relationship, in which an 
                        individual described in subparagraph (A) or an 
                        entity described in clause (i), or a 
                        combination of such individuals or entities, 
                        possesses the power, direct or indirect, 
                        whether or not exercised, through--
                                    (I) ownership of a majority or a 
                                dominant minority of the total 
                                outstanding voting or financial 
                                interest in the entity, board 
                                representation, proxy voting, a special 
                                share, contractual arrangements, formal 
                                or informal arrangements to act in 
                                concert, or other means, to determine, 
                                direct, or decide important matters 
                                affecting the entity;
                                    (II) with respect to an entity that 
                                manufactures, develops, designs, or 
                                supplies a connected vehicle, ownership 
                                or control of more than 15 percent of 
                                the total outstanding equity interest, 
                                voting interest, board representation, 
                                or other indicia of control;
                                    (III) with respect to an entity 
                                that manufactures, develops, designs, 
                                or supplies covered software, ownership 
                                or control of more than 25 percent of 
                                the total outstanding equity interest, 
                                voting interest, board representation, 
                                or other indicia of control; or
                                    (IV) with respect to an entity that 
                                manufactures or supplies vehicle 
                                connectivity system hardware, ownership 
                                or control of more than 25 percent of 
                                the total outstanding equity interest, 
                                voting interest, board representation, 
                                or other indicia of control.
            (7) Importation.--The term ``importation'' has the meaning 
        given the term ``import'' in section 1001 of the Controlled 
        Substances Import and Export Act (21 U.S.C. 951).
            (8) Resale.--
                    (A) In general.--The term ``resale'', with respect 
                to a vehicle, software, or hardware, means the 
                transferring of ownership of the vehicle, software, or 
                hardware by an individual or entity that acquired the 
                vehicle, software, or hardware for the purpose of 
                transfer in the ordinary course of business, and not 
                for the use of or consumption by the individual or 
                entity.
                    (B) Exclusion.--The term ``resale'' does not 
                include the transfer of a connected vehicle that was 
                previously titled or registered to, and used by, a 
                consumer or end-user or was acquired for bona fide use, 
                lease, or operation by the individual or entity that 
                was transferred the vehicle or by a dealer (as defined 
                in section 30102(a)(2) of title 49, United States 
                Code).
            (9) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce, acting through the Under Secretary of Commerce for 
        Industry and Security.
            (10) Transaction.--The term ``transaction''--
                    (A) means any acquisition, importation, transfer, 
                installation, dealing in, or use of any vehicle, 
                software, or hardware subject to a prohibition under 
                subsection (a) or (b) of section 4, including ongoing 
                activities, such as managed services, data 
                transmission, software updates, repairs, or provision 
                of platform services or data hosting of applications 
                for consumer download; and
                    (B) includes--
                            (i) any other transaction, arrangement, 
                        practice, or course of conduct, the structure 
                        or purpose of which is designed or intended to 
                        evade or circumvent this Act; and
                            (ii) a class of transactions.
            (11) Vehicle connectivity system.--The term ``vehicle 
        connectivity system'' means vehicle connectivity system 
        hardware or a covered software item installed in or on a 
        connected vehicle, or designed to be installed in or on a 
        connected vehicle, that directly enables the function of 
        transmission, receipt, conversion, or processing of radio 
        frequency communications at a frequency over 450 megahertz.
            (12) Vehicle connectivity system hardware.--
                    (A) In general.--The term ``vehicle connectivity 
                system hardware''--
                            (i) means software-enabled or programmable 
                        components that--
                                    (I) are installed in or on a 
                                connected vehicle or designed to be 
                                installed in or on a connected vehicle;
                                    (II) are directly connected to a 
                                vehicle connectivity system; and
                                    (III) directly enable the 
                                connectivity functions of a vehicle 
                                connectivity system or are part of an 
                                item that directly enables the function 
                                of a vehicle connectivity system;
                            (ii) includes microcontrollers, 
                        microcomputers or modules, systems on a chip, 
                        networking or telematics units, cellular modems 
                        or modules, Wi-Fi microcontrollers or modules, 
                        Bluetooth microcontrollers or modules, 
                        satellite communication systems, other wireless 
                        communication microcontrollers or modules, 
                        external antennas, digital signal processors, 
                        and field-programmable gate arrays; and
                            (iii) includes electronic systems 
                        integrated into an electric vehicle battery 
                        that directly enable or control the monitoring, 
                        management, security, or external communication 
                        of battery performance or operation, including 
                        any transmitter or interface component that 
                        performs such functions.
                    (B) Exclusion.--The term ``vehicle connectivity 
                system hardware'' does not include component parts that 
                do not contribute to the connectivity function of 
                vehicle connectivity system hardware, which may include 
                items such as brackets, fasteners, plastics, passive 
                electronics, diodes, field effect transistors, and 
                bipolar junction transistors.

SEC. 4. PROHIBITION ON CONNECTED VEHICLES AND OTHER TRANSACTIONS THAT 
              THREATEN NATIONAL SECURITY.

    (a) Prohibitions.--
            (1) Connected vehicles.--On and after January 1, 2027, the 
        importation, manufacture, sale, resale, or introduction into 
        interstate commerce in the United States of a connected vehicle 
        is prohibited if--
                    (A) the connected vehicle is primarily designed, 
                primarily developed, or manufactured in, or supplied 
                from, a covered country, without regard to whether--
                            (i) at the time of importation, sale, 
                        resale, or introduction, the vehicle is 
                        equipped with any covered software or vehicle 
                        connectivity system hardware subject to a 
                        prohibition under paragraph (2) or (3); or
                            (ii) any such software or hardware--
                                    (I) is removed from the vehicle 
                                before importation, sale, resale, or 
                                introduction; or
                                    (II) will be installed after 
                                importation, sale, resale, or 
                                introduction; or
                    (B) the manufacturer, developer, designer, or 
                supplier of the connected vehicle is a foreign entity 
                of concern.
            (2) Covered software.--The integration of covered software 
        into a connected vehicle that is imported, manufactured, sold, 
        resold, or introduced into interstate commerce in the United 
        States is prohibited if--
                    (A) the connected vehicle into which the covered 
                software is integrated was manufactured for model year 
                2027 or later; and
                    (B)(i) the covered software is designed, developed, 
                or manufactured in, or supplied from, a covered 
                country; or
                    (ii) the manufacturer, developer, designer, or 
                supplier of the software is a foreign entity of 
                concern.
            (3) Vehicle connectivity system hardware.--
                    (A) In general.--On and after January 1, 2030, the 
                integration of any vehicle connectivity system hardware 
                into a connected vehicle that is imported, 
                manufactured, sold, resold, or introduced into 
                interstate commerce in the United States is prohibited 
                if--
                            (i) the hardware is manufactured in, or 
                        supplied from, a covered country; or
                            (ii) the manufacturer or supplier of the 
                        hardware is a foreign entity of concern.
                    (B) Repair and warranty.--The prohibition under 
                subparagraph (A) shall not apply to vehicle 
                connectivity system hardware that is--
                            (i) integrated into a vehicle that is 
                        manufactured for a model year before model year 
                        2030; or
                            (ii) imported, manufactured, sold, resold, 
                        or introduced into interstate commerce in the 
                        United States for the purpose of repair, or 
                        under warranty, for a connected vehicle of a 
                        model year before model year 2030.
            (4) Additional items.--A prohibition under paragraph (1), 
        (2), or (3) applies with respect to a connected vehicle, 
        covered software, or vehicle connectivity system hardware, as 
        the case may be, that is renamed, rebranded, restructured, or 
        altered to circumvent the prohibition.
            (5) Exception.--The prohibitions under paragraphs (1), (2), 
        and (3) shall not apply to the importation, manufacture, sale, 
        resale, or introduction into interstate commerce in the United 
        States of a connected vehicle, covered software, or vehicle 
        connectivity system hardware, as the case may be, for the sole 
        purpose of testing and evaluation if--
                    (A) in the case of a connected vehicle, the vehicle 
                is not intended to be driven on public roads; or
                    (B) in the case of a connected vehicle, covered 
                software, or vehicle connectivity system hardware, the 
                testing or evaluation is by--
                            (i) an entity that--
                                    (I) is organized under the laws of 
                                a State in the United States;
                                    (II) does not have its principal 
                                place of business in a covered country; 
                                and
                                    (III) is not a foreign entity of 
                                concern; or
                            (ii) a Federal agency.
            (6) Treatment of individuals.--For purposes of this 
        subsection, a connected vehicle, covered software, or vehicle 
        connectivity system hardware shall not be considered to be 
        designed, developed, manufactured in, or supplied by a foreign 
        entity of concern based solely on the country of citizenship of 
        one or more individuals who are employed by, contracted by, or 
        otherwise similarly engaged in design, development, 
        manufacturing, or supply activities through an entity that is 
        not a foreign entity of concern.
    (b) Related Transactions.--
            (1) In general.--The Secretary shall prescribe regulations, 
        pursuant to section 553 of title 5, United States Code, to 
        prohibit any specific transaction relating to connected 
        vehicles, including the importation into the United States, 
        sale, distribution, integration, or use of a connected vehicle, 
        covered software, or vehicle connectivity system hardware, that 
        the Secretary determines poses an undue or unacceptable threat 
        to the national security of the United States.
            (2) Notice.--If the Secretary prohibits a transaction under 
        paragraph (1), the Secretary shall deliver, by certified United 
        States mail, to the parties to the transaction a notice of the 
        prohibition that includes an identification, by name, of the 
        specific vehicle, software, or hardware that the Secretary 
        determines poses an undue or unacceptable threat to the 
        national security of the United States.
    (c) Authorizations.--
            (1) Issuance.--
                    (A) In general.--The Secretary may issue a general 
                or specific authorization for the importation, 
                manufacture, sale, resale, or introduction into 
                interstate commerce in the United States of a connected 
                vehicle, covered software, or vehicle connectivity 
                system hardware that would otherwise be subject to a 
                prohibition under subsection (a) if--
                            (i) the Secretary determines that the 
                        importation, manufacture, sale, resale, or 
                        introduction of the vehicle, software, or 
                        hardware does not pose, and is not reasonably 
                        likely to pose--
                                    (I) an undue risk of data 
                                exfiltration from, or remote 
                                manipulation or operation of, a 
                                connected vehicle;
                                    (II) a risk to critical 
                                infrastructure of the United States; or
                                    (III) any other risk to the 
                                national security of the United States;
                            (ii) upon issuing an authorization under 
                        this subparagraph, the Secretary submits to 
                        Congress a detailed written notification that--
                                    (I) includes the determination 
                                under clause (i) and the underlying 
                                analysis, including a written risk 
                                assessment, that supports that 
                                determination; and
                                    (II) redacts confidential business 
                                information and other sensitive 
                                proprietary information; and
                            (iii) in the case of an authorization 
                        issued on or after January 1, 2030, there is 
                        not enacted into law a joint resolution of 
                        disapproval with respect to the authorization.
                    (B) Limited authority for certain entities.--The 
                Secretary may not issue a general or specific 
                authorization under subparagraph (A) to import, 
                manufacture, sell, resell, or introduce into interstate 
                commerce in the United States a connected vehicle 
                otherwise subject to the prohibition under subsection 
                (a)(1) to an entity with a principal place of business 
                in, headquartered in, incorporated in, or otherwise 
                organized under the laws of a covered country or that 
                is a subsidiary or affiliate of such an entity, unless 
                the entity--
                            (i) is selling passenger vehicles in the 
                        United States as of the date of the enactment 
                        of this Act; and
                            (ii) has been manufacturing passenger 
                        vehicles in the United States for not less than 
                        5 years before such date of enactment.
                    (C) Continued validity and modification and 
                revocation of authorizations.--
                            (i) Continued validity of authorizations 
                        under regulations.--Except as provided by 
                        clause (iii), any general or specific 
                        authorization issued under subpart D of part 
                        791 of title 15, Code of Federal Regulations, 
                        before the date of the enactment of this Act 
                        shall remain in effect until the earlier of--
                                    (I) the date specified in the terms 
                                of the authorization; or
                                    (II) January 1, 2030.
                            (ii) Expiration of authorizations issued 
                        before january 1, 2030.--Except as provided by 
                        clause (iii), any general or specific 
                        authorization issued under subparagraph (A) 
                        after the date of the enactment of this Act and 
                        before January 1, 2030, shall remain in effect 
                        until the earlier of--
                                    (I) the date specified in the terms 
                                of the authorization; or
                                    (II) January 1, 2030.
                            (iii) Modification or revocation of general 
                        or specific authorizations.--The Secretary may, 
                        at any time, modify, suspend, or revoke a 
                        general or specific authorization described in 
                        clause (i) or issued under subparagraph (A) if 
                        the Secretary determines that the authorization 
                        no longer satisfies the requirements of 
                        subparagraph (A)(i).
                            (iv) Publication required.--Not later than 
                        January 1, 2027, the Secretary shall publish a 
                        list of all general or specific authorizations 
                        issued under subpart D of part 791 of title 15, 
                        Code of Federal Regulations, before the date of 
                        the enactment of this Act.
            (2) Publication of authorizations.--
                    (A) In general.--The Secretary shall publish and 
                maintain a list of all general and specific 
                authorizations issued under paragraph (1)(A) after the 
                date of the enactment of this Act.
                    (B) Initial list.--The initial list required by 
                subparagraph (A) shall be published not later than 
                January 1, 2027.
                    (C) Inclusions.--
                            (i) In general.--To the extent possible, 
                        the Secretary shall include in the list 
                        required by subparagraph (A) the manufacturer 
                        and product name for the connected vehicles, 
                        covered software, and vehicle connectivity 
                        system hardware on the list.
                            (ii) Risk assessment.--To the extent 
                        possible, the Secretary shall include in the 
                        list required by subparagraph (A) a detailed 
                        explanation about why the connected vehicles, 
                        covered software, and vehicle connectivity 
                        system hardware on the list do not pose any of 
                        the risks described in paragraph (1)(A)(i).
            (3) Identification of trusted suppliers.--
                    (A) In general.--The Secretary shall create and 
                maintain a list of trusted entities that supply 
                connected vehicles, covered software, vehicle 
                connectivity systems, and vehicle connectivity system 
                hardware.
                    (B) Determination.--The Secretary may determine an 
                entity is a trusted supplier for purposes of 
                subparagraph (A) if the entity does not pose an undue 
                or unacceptable national security risk.
            (4) Protection of confidential business information.--The 
        Secretary shall establish a robust process to redact 
        confidential business information and other sensitive 
        information from publication in the lists required by 
        paragraphs (1)(C)(iv) and (2).
            (5) Procedures for authorization.--Not later than January 
        1, 2027, the Secretary shall establish a procedure pursuant to 
        which--
                    (A) an importer, manufacturer, supplier, or seller 
                or reseller may seek the authorization under paragraph 
                (1) of the importation, manufacture, sale, resale, or 
                introduction into interstate commerce in the United 
                States of connected vehicles, covered software, or 
                vehicle connectivity system hardware that would 
                otherwise be subject to a prohibition under subsection 
                (a); and
                    (B) the Secretary may issue such an authorization 
                on the Secretary's own initiative.
    (d) Advisory Opinions.--
            (1) In general.--Not later than January 1, 2027, the 
        Secretary shall establish a procedure pursuant to which an 
        importer, manufacturer, or seller or reseller may seek an 
        advisory opinion with respect to whether--
                    (A) the importation, manufacture, sale, resale, or 
                introduction into interstate commerce in the United 
                States of a connected vehicle, covered software, or 
                vehicle connectivity system hardware is or is not 
                prohibited under this section; or
                    (B) a connected vehicle, covered software, or 
                vehicle connectivity system hardware has been renamed, 
                rebranded, restructured, or altered to circumvent the 
                prohibitions under subsection (a).
            (2) Timing.--
                    (A) In general.--The Secretary shall issue an 
                advisory opinion under paragraph (1) with respect to a 
                connected vehicle, covered software, or vehicle 
                connectivity system hardware not later than 45 days 
                after receiving an application for such an advisory 
                opinion that is supported by a reasonably clear 
                description of the vehicle, software, or hardware, as 
                the case may be.
                    (B) Failure to issue.--If the Secretary fails to 
                issue an advisory opinion within the 45-day period 
                described in subparagraph (A), the Secretary shall 
                notify the relevant committees of Congress (including, 
                at a minimum, the Committee on Energy and Commerce of 
                the House of Representatives and the Committee on 
                Commerce, Science, and Transportation of the Senate) of 
                that failure not later than 7 days after the 45-day 
                period has elapsed.
                    (C) Exclusion.--This paragraph shall not apply in 
                any case in which an applicant under subparagraph (A) 
                has not made good faith efforts to provide prompt 
                responses to inquiries or requests for additional 
                information or materials from the Secretary that are 
                necessary for the consideration of the application.
            (3) Publication.--
                    (A) In general.--The Secretary shall--
                            (i) publish a list of all connected 
                        vehicles, covered software, and vehicle 
                        connectivity system hardware for which the 
                        Secretary has issued advisory opinions under 
                        paragraph (1); and
                            (ii) update that list not less frequently 
                        than annually.
                    (B) Prohibition on publication of identifying 
                information.--The Secretary shall not publish the name 
                of, or other information that might reasonably 
                identify, the party that requested the advisory opinion 
                under paragraph (1).
            (4) Continued validity of existing advisory opinions.--
        Except as provided by paragraph (5), an advisory opinion issued 
        under this subsection or subpart D of part 791 of title 15, 
        Code of Federal Regulations, before January 1, 2027, shall 
        remain in effect.
            (5) Modification or revocation.--The Secretary may modify, 
        suspend, or revoke any advisory opinion issued under paragraph 
        (1) or subpart D of part 791 of title 15, Code of Federal 
        Regulations, at any time if the Secretary determines that the 
        circumstances that led to the opinion have changed.
    (e) Declaration of Conformity.--The Secretary shall establish a 
process requiring a person, before importing, manufacturing, selling, 
reselling, or introducing into interstate commerce in the United States 
a connected vehicle, covered software, or vehicle connectivity system 
hardware, to submit to the Secretary a declaration, to be known as a 
``declaration of conformity'', that certifies that the vehicle, 
hardware, or incorporated covered software is not subject to a 
prohibition under subsection (a).
    (f) Safe Harbor.--The Secretary shall prescribe regulations 
establishing a safe harbor period of one year during which a person may 
cure a violation of subsection (a). During that period, civil penalties 
shall not accrue with respect to the violation if the person--
            (1) promptly upon discovery discloses the violation to the 
        Bureau of Industry and Security and diligently undertakes all 
        legally available remedial measures;
            (2) cooperates with the Bureau and provides all reasonably 
        available information it is legally permitted to provide that 
        the Secretary may require to verify the violation and the cure;
            (3) completes the cure within the period prescribed by the 
        Secretary, including by submitting any corrected declaration of 
        conformity or obtaining any authorization, ruling, or advisory 
        opinion required by this section; and
            (4) did not engage in willful misconduct, knowing 
        violation, fraud, material misrepresentation, or conduct 
        intended to evade or circumvent this section.
    (g) Civil Penalties.--
            (1) In general.--Except as provided by paragraph (3), the 
        Secretary shall assess a civil penalty for each transaction 
        that is a violation of a prohibition under subsection (a) in an 
        amount that is not less than the greater of--
                    (A) $1,500,000; or
                    (B) five times the value of the transaction.
            (2) Continuing violations.--In the case of a violation that 
        occurs on more than one day, each day on which the violation 
        continues shall be treated as a separate violation.
            (3) Exception.--A civil penalty shall not apply under 
        paragraph (1) in a case in which an individual transports a 
        vehicle into the United States in violation of a prohibition 
        under subsection (a) if--
                    (A) the vehicle is owned, leased, rented, or 
                otherwise in the possession of the individual for 
                personal use; and
                    (B) the individual does not know that the vehicle, 
                or covered software or vehicle connectivity system 
                hardware integrated into the vehicle, is subject to the 
                prohibition.
    (h) Classified Information.--The Secretary may rely on classified 
information in carrying out this section, which may be submitted to a 
reviewing court ex parte and in camera.
    (i) Petitions for Review.--The filing in a court of a petition for 
review shall not stay the effectiveness of any action under this 
section unless ordered by the court.

SEC. 5. USE OF EXISTING ADVISORY BODIES; INTERAGENCY COORDINATION.

    (a) Use of Existing Advisory Bodies.--
            (1) In general.--In carrying out this Act, the Secretary 
        may consult, as appropriate, with existing advisory committees 
        of the Department of Transportation and other relevant Federal 
        agencies on matters relating to connected vehicles and 
        associated national security risks.
            (2) Scope of consultation.--Consultation under paragraph 
        (1) may include consideration of--
                    (A) risks relating to data security, cybersecurity, 
                and supply chain integrity associated with connected 
                vehicles;
                    (B) the effectiveness of authorities and 
                regulations issued under this Act;
                    (C) emerging technologies and threat vectors 
                relevant to connected vehicle ecosystems; and
                    (D) recommendations made to the Secretary with 
                respect to regulatory, enforcement, and policy measures 
                to mitigate risks described in subparagraph (A).
    (b) Interagency Coordination.--In carrying out this Act, the 
Secretary may consult and coordinate, as appropriate, with the Federal 
Communications Commission and other relevant Federal agencies to ensure 
alignment with respect to the scope, timeline, and implementation of 
any prohibitions or restrictions issued under this Act, including to 
avoid duplicative, inconsistent, or conflicting regulatory 
requirements.

SEC. 6. REPORTS.

    Not later than one year after the date of the enactment of this 
Act, and annually thereafter, the Secretary shall submit to Congress a 
report, which may contain a classified annex--
            (1) describing activities carried out to enforce the 
        prohibitions under section 4, including enforcement actions 
        taken and resources utilized;
            (2) providing a detailed accounting of connected vehicles, 
        covered software, and vehicle connectivity system hardware 
        covered by such prohibitions during the one-year period 
        preceding submission of the report;
            (3) explaining any exclusions, exemptions, or 
        authorizations made by the Secretary, including the rationale 
        and criteria applied;
            (4) assessing the effectiveness of such prohibitions in 
        decreasing the threats to the national security of the United 
        States posed by connected vehicles;
            (5) including metrics on enforcement, compliance rates, 
        violations identified, penalties assessed, and any identified 
        gaps or challenges; and
            (6) making recommendations with respect to further 
        decreasing such threats.

SEC. 7. REPORT ON AUTOMOTIVE SUPPLY CHAIN RESILIENCY AND SECURITY.

    (a) In General.--Not later than 18 months after the date of the 
enactment of this Act, the Secretary shall submit to Congress a report 
assessing the resilience and security of supply chains critical to the 
United States automotive sector.
    (b) Elements.--The report required by subsection (a) may--
            (1) identify the segments, materials, components, and 
        technologies within the automotive supply chain that are most 
        dependent on a covered country;
            (2) assess the extent to which the dependencies identified 
        under paragraph (1) pose significant risk to the economic or 
        national security of the United States; and
            (3) recommend specific policies and measures to support the 
        development and expansion of supply chains outside of covered 
        countries for the dependencies identified under paragraph (2) 
        that pose the most significant risk to the economic or national 
        security of the United States.
    (c) Considerations.--In identifying segments, materials, 
components, and technologies within the automotive supply chain under 
subsection (b)(1), the Secretary may consider--
            (1) safety equipment;
            (2) hardware or software that enables the transmission, 
        receipt, conversion, or processing of automotive sensing (such 
        as LiDAR, radar, video, or ultrawideband);
            (3) electric vehicle batteries;
            (4) smart glass, antenna glass, and other electronically 
        controlled automotive glass that directly enables the 
        transmission, receipt, conversion, or processing of radio 
        frequency communications; and
            (5) any other segments, materials, components, 
        technologies, hardware, or software identified by the 
        Department of Commerce for consideration during the process of 
        promulgating subpart D of part 791 of title 15, Code of Federal 
        Regulations.
    (d) Use of Existing Information.--In preparing the report required 
by subsection (a), the Secretary shall, to the maximum extent 
practicable, utilize existing analyses, assessments, reports, data, and 
other relevant information available to the Department of Commerce or 
another Federal department or agency to avoid unnecessary duplication 
of effort.

SEC. 8. REPORT ON CONSUMER EDUCATION OF DEFECTIVE CHINESE AIR BAGS AND 
              AIR BAG COMPONENTS.

    (a) Definitions.--In this section:
            (1) Auction company.--The term ``auction company'' means a 
        person taking possession of a motor vehicle owned by another to 
        sell at an auction.
            (2) Dealer.--The term ``dealer'' means a person that sold 
        at least 5 motor vehicles during the prior 12 months to buyers 
        that in good faith bought the vehicles other than for resale.
            (3) Distributor.--The term ``distributor'' means a person 
        that sold at least 5 motor vehicles during the prior 12 months 
        for resale.
            (4) Passenger car.--The term ``passenger car'' means a 
        motor vehicle with motive power, except a low-speed vehicle, 
        multipurpose passenger vehicle, motorcycle, or trailer, 
        designed for carrying 10 persons or less.
            (5) Title.--The term ``title'' means the certificate of 
        title or other document issued by the State indicating 
        ownership.
    (b) In General.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Transportation shall submit to 
Congress a report identifying opportunities to inform buyers of 
passenger cars if the original air bag on the passenger car has been 
replaced, and could have been replaced with a defective Chinese air bag 
or defective Chinese air bag component.
    (c) Elements.--The report required under subsection (b) shall--
            (1) identify sources of available information on a 
        passenger car's air bag deployment and replacement, such as a 
        title, a vehicle history report, or other sources;
            (2) determine which sellers of passenger cars, such as 
        dealers, distributors, and auction companies, have access to 
        available information identified under paragraph (1), and 
        identify opportunities for passenger car sellers to inform 
        potential buyers of information on the passenger car's air bag 
        deployment and replacement;
            (3) identify options to encourage dealers, distributors, 
        auction companies, and buyers to have passenger cars inspected 
        to determine if an air bag was replaced with a defective air 
        bag as identified by the National Highway Traffic Safety 
        Administration; and
            (4) recommend specific actions that could be taken to 
        notify potential buyers of passenger cars if the car's air bag 
        was replaced, and could have air bag components identified as 
        defective by the National Highway Traffic Safety 
        Administration.
    (d) Coordination With Other Relevant Agencies.--In preparing the 
report required under subsection (b), the Secretary of Transportation 
shall, to the maximum extent practicable, coordinate with the Federal 
Trade Commission, the Department of Homeland Security, and any other 
Federal department or agency involved in identifying passenger cars 
with defective air bags or, more generally, informing buyers of 
passenger car components and condition.

SEC. 9. REGULATIONS.

    Not later than December 31, 2028, the Secretary shall issue or 
amend final regulations, pursuant to section 553 of title 5, United 
States Code, including by amending regulations issued under subpart D 
of part 791 of title 15, Code of Federal Regulations, or successor 
regulations, to establish prohibitions and requirements applicable to 
connected vehicles with a gross vehicle weight rating greater than 
4,536 kilograms (10,000 pounds), consistent with the authorities and 
requirements under this Act. Such prohibitions and requirements shall 
take effect not later than December 31, 2032.

SEC. 10. SEVERABILITY; REGULATORY CONTINUITY.

    (a) Severability.--If any provision of this Act, or the application 
of any such provision to any person or circumstance, is held to be 
invalid, the remainder of this Act, and the application of the 
remaining provisions to any person or circumstance, shall not be 
affected.
    (b) Restoration of Prior Regulations.--
            (1) In general.--If a court of competent jurisdiction 
        enters a final judgment holding invalid or unenforceable a 
        provision of this Act or any regulations prescribed to carry 
        out section 4, the Secretary may, notwithstanding any other 
        provision of this Act, reissue or reinstate, in whole or in 
        part, any similar regulations that were in effect on the day 
        before the date of the enactment of this Act.
            (2) Application of certain laws.--Reinstatement of 
        regulations under paragraph (1) shall not be subject to 
        sections 551, 553 through 559, and 701 through 706 of title 5, 
        United States Code.

SEC. 11. INTERACTION WITH REGULATIONS.

    (a) Rule of Construction.--Nothing in this Act shall be construed 
to prohibit, limit, or otherwise affect the authority of the Secretary 
of Commerce--
            (1) to implement or administer subpart D of part 791 of 
        title 15, Code of Federal Regulations, as added by the final 
        rule of the Bureau of Industry and Security entitled ``Securing 
        the Information and Communications Technology and Services 
        Supply Chain: Connected Vehicles'' (90 Fed. Reg. 5360);
            (2) under Executive Order 13873 (50 U.S.C. 1701 note; 
        relating to securing the information and communications 
        technology and services supply chain); or
            (3) under Executive Order 14034 (50 U.S.C. 1701 note; 
        relating to protecting Americans' sensitive data from foreign 
        adversaries).
    (b) Delayed Implementation for Software Not Covered by 
Regulations.--In the case of covered software that is subject to a 
prohibition under section 4(a)(2) and is not subject to subpart D of 
part 791 of title 15, Code of Federal Regulations, as in effect on the 
day before the date of the enactment of this Act, the Secretary shall 
not implement the prohibition with respect to such software 
incorporated into connected vehicles before model year 2029.
    (c) Delayed Implementation for Hardware Not Covered by 
Regulations.--In the case of vehicle connectivity system hardware that 
is subject to a prohibition under section 4(a)(3) and is not subject to 
subpart D of part 791 of title 15, Code of Federal Regulations, as in 
effect on the day before the date of the enactment of this Act, the 
Secretary shall not implement the prohibition with respect to such 
hardware incorporated into connected vehicles before model year 2032.
    (d) Delayed Implementation for Connected Vehicles by Existing 
United States Manufacturers and Operators.--
            (1) In general.--Subject to paragraph (2), the prohibition 
        under section 4(a)(1) shall not apply with respect to a 
        connected vehicle of a model year before model year 2030 that 
        is manufactured, purchased pursuant to a master services 
        agreement or other similar contract executed before the date of 
        the enactment of this Act, or operated in a commercial fleet, 
        by an entity that--
                    (A) is selling passenger vehicles or operating a 
                commercial fleet of passenger vehicles in the United 
                States as of the date of the enactment of this Act; and
                    (B) has been manufacturing passenger vehicles or 
                operating a commercial fleet of passenger vehicles in 
                the United States for not less than five years before 
                such date of enactment.
            (2) Compliance reporting.--Any entity benefitting from the 
        delayed implementation of section 4(a)(1) pursuant to this 
        subsection shall submit to the Secretary, not less frequently 
        than annually until the entity is in compliance with that 
        section, a report outlining the plan of the entity to come into 
        compliance by 2030. The Secretary shall protect any report 
        submitted under this paragraph as confidential business 
        information, except as otherwise required by law.
    (e) Treatment of Prior Exclusions.--
            (1) In general.--Subject to paragraph (2), any exclusion or 
        exception to a prohibition or definition under subpart D of 
        part 791 of title 15, Code of Federal Regulations, as in effect 
        on the day before the date of the enactment of this Act, shall 
        remain valid and shall apply to the prohibitions under section 
        4(a).
            (2) Rulemaking.--Beginning January 1, 2030, the Secretary 
        shall conduct a rulemaking to determine whether exclusions or 
        exceptions described in paragraph (1) should be continued, 
        modified, or terminated for the purposes of this Act.
    (f) Administrative Procedure.--Except as otherwise provided in this 
Act, the functions exercised under this Act shall not be subject to 
sections 551, 553 through 559, and 701 through 706 of title 5, United 
States Code.
                                                       Calendar No. 671

119th CONGRESS

  2d Session

                                S. 4429

                          [Report No. 119-146]

_______________________________________________________________________

                                 A BILL

To prohibit the importation, manufacture, sale, resale, or introduction 
into interstate commerce in the United States of connected vehicles and 
   related software and hardware associated with foreign adversaries.

_______________________________________________________________________

                           September 22, 2026

                       Reported with an amendment
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