119-s1473

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1473 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 1473

 To amend the Export Control Reform Act of 2018 to establish a 
 whistleblower incentive program and provide protections to 
 whistleblowers.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 April 10, 2025

Mr. Rounds (for himself and Mr. Warner) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
 and Urban Affairs

_______________________________________________________________________

 A BILL

 To amend the Export Control Reform Act of 2018 to establish a 
 whistleblower incentive program and provide protections to 
 whistleblowers.

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

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Stop Stealing our Chips Act''.

SEC. 2. FINDINGS.

 Congress finds the following:

    (1) Violations of the export control laws of the United 
 States, especially the diversion of leading-edge artificial 
 intelligence chips into countries that are adversaries of the 
 United States, threaten the national security of the United 
 States.

    (2) Individuals who accurately report violations of United 
 States export control laws play a significant role in helping 
 authorities identify and mitigate such threats.

    (3) An incentive program that rewards whistleblowers can 
 significantly enhance enforcement efforts by encouraging 
 individuals to provide high-value information on potential 
 violations.

SEC. 3. ESTABLISHMENT OF WHISTLEBLOWER INCENTIVE PROGRAM AND 
 WHISTLEBLOWER PROTECTIONS.

    (a) In General.--The Export Control Reform Act of 2018 (50 U.S.C. 
4801 et seq.) is amended by inserting after 

section 1761 the following:

``

SEC. 1761A. WHISTLEBLOWER INCENTIVES AND PROTECTIONS.

 ``

    (a) 

=== Definitions. ===
-In this section:
 ``

    (1) Original information.--The term `original 
 information' means information that is--
 ``
        (A) derived from the independent knowledge or 
 analysis of a whistleblower;
 ``
        (B) not known to the Secretary from any other 
 source;
 ``
            (C) not exclusively derived from an allegation 
 made in a judicial or administrative hearing, a 
 governmental report, hearing, audit, or investigation, 
 or from news media, unless the whistleblower is the 
 source of such allegation; and
 ``
            (D) provided to the Secretary voluntarily, 
 without any request from the Secretary or any other 
 government official.
 ``

    (2) Whistleblower.--
 ``
        (A) In general.--The term `whistleblower' means, 
 except as provided by subparagraph
        (B) , any individual 
 (including an individual who is not a United States 
 citizen) who provides, or 2 or more such individuals 
 acting jointly who provide, to the Secretary 
 information relating to a possible violation of this 
 part or of any regulation, order, license, or other 
 authorization issued under this part.
 ``
        (B) Exclusions.--The term `whistleblower' does 
 not include--
 ``
            (i) a Federal employee acting within the 
 scope of the duties of the employee; or
 ``
            (ii) an individual on the list of 
 specially designated nationals and blocked 
 persons maintained by the Office of Foreign 
 Assets Control of the Department of the 
 Treasury.
 ``

    (b) Whistleblower Incentive Program.--
 ``

    (1) Establishment.--Not later than 120 days after the 
 date of the enactment of this section, the Secretary shall 
 establish a whistleblower incentive program to reward 
 individuals who provide original information that leads to the 
 imposition of fines under this part on persons that violate, 
 attempt to violate, conspire to violate, or cause a violation 
 of this part or any regulation, order, license, or other 
 authorization issued under this part.
 ``

    (2) Whistleblower reports.--
 ``
        (A) Online portal.--Not later than 120 days after 
 the date of the enactment of this section, the 
 Secretary shall develop, implement, and maintain a 
 secure portal, on a website accessible to the public, 
 for the reporting of original information relating to 
 persons that violate, attempt to violate, conspire to 
 violate, or cause a violation of this part or any 
 regulation, order, license, or other authorization 
 issued under this part.
 ``
        (B) Anonymity.--
 ``
            (i) In general.--As an alternative to 
 submission through the portal required by 
 subparagraph
        (A) , an individual may submit a 
 report of original information under this 
 subsection anonymously, including through an 
 attorney.
 ``
            (ii) Exception.--The Secretary may 
 require that the identity of an individual be 
 disclosed for the individual to receive an 
 award under paragraph

    (3) .
 ``
            (C) Expedited review.--
 ``
            (i) Initial review.--Not later than 60 
 days after the date of receipt of a report from 
 a whistleblower, the Secretary shall--
 ``
            (I) determine whether the report 
 is credible; and
 ``
            (II) if credible, initiate a 
 formal investigation of the allegations 
 contained in the report.
 ``
            (ii) Investigation.--Unless the Secretary 
 determines that the investigation is 
 particularly complex, the Secretary shall 
 conclude the investigation not later than 180 
 days after the date on which a formal 
 investigation has been initiated under clause
            (i) .
 ``
            (iii) Notification.--
 ``
            (I) In general.--The Secretary 
 shall update the whistleblower on the 
 status of a report and, if applicable, 
 the related investigation not later 
 than 30 days after the date on which 
 the whistleblower submitted the report 
 and not less frequently than every 30 
 days thereafter.
 ``
            (II) Sensitive information.--The 
 Secretary may omit from the updates 
 required by subclause
            (I) any 
 information that could compromise an 
 ongoing investigation.
 ``
            (D) Avoidance of frivolous reports.--The 
 Secretary may prohibit an individual from making 
 reports under this subsection if the individual has 
 previously submitted multiple reports under this 
 subsection that the Secretary determined under 
 subparagraph
            (C) 
            (i) were not credible.
 ``

    (3) Awards.--
 ``
        (A) Eligibility.--Subject to subparagraph
        (B) , 
 the Secretary may pay an award or awards to any 
 whistleblower who provided original information that 
 led to the imposition of a fine under this part on a 
 person or persons that violated, attempted to violate, 
 conspired to violate, or caused a violation of this 
 part or any regulation, order, license, or other 
 authorization issued under this part.
 ``
        (B) Disqualification.--
 ``
            (i) In general.--Subject to clause
            (ii) , 
 the Secretary may not pay an award or awards to 
 any whistleblower who provides original 
 information with respect to a person or persons 
 that violated, attempted to violate, conspired 
 to violate, or caused a violation of this part 
 or any regulation, order, license, or other 
 authorization issued under this part, if such 
 information was obtained through--
 ``
            (I) the role of the whistleblower 
 as--
 ``

    (aa) an officer, 
 director, trustee, or partner 
 of an entity that handles 
 internal processes for legal 
 violations for the person or 
 persons;
 ``

    (bb) an employee of an 
 entity that conducts compliance 
 or internal audits for the 
 person or persons;
 ``
            (cc) an employee of a 
 public accounting firm if the 
 information was obtained while 
 working on an engagement 
 required by Federal securities 
 laws, other than specific 
 audits; or
 ``
            (II) any means that violates 
 Federal or State criminal law.
 ``
            (ii) Exceptions.--Clause
            (i) shall not 
 apply if--
 ``
            (I) the whistleblower had a 
 reasonable basis to believe that 
 disclosing the original information to 
 the Secretary was necessary to stop 
 conduct likely to cause significant 
 financial harm;
 ``
            (II) the whistleblower had a 
 reasonable basis to believe that the 
 relevant entity was obstructing an 
 investigation into the misconduct; or
 ``
            (III) not less than 120 days have 
 elapsed since the whistleblower 
 provided the information to the audit 
 committee, chief legal officer, chief 
 compliance officer (or their 
 equivalent) of the relevant entity or 
 the supervisor of the whistleblower.
 ``
            (C) Amount.--
 ``
            (i) In general.--An award issued under 
 subparagraph
        (A) shall be--
 ``
            (I) not less than 10 percent, in 
 total, of the amount collected of the 
 fine imposed under this part; and
 ``
            (II) not more than 30 percent, in 
 total, of the amount collected of that 
 fine.
 ``
            (ii) Jointly submitted report.--In the 
 case of a report that was submitted jointly by 
 2 or more individuals, any award issued under 
 subparagraph
        (A) shall be split equally among 
 the individuals.
 ``
            (D) Determination.--The Secretary shall determine 
 the amount of an award made under subparagraph
        (A) taking into account, with respect to the information 
 provided--
 ``
            (i) accuracy;
 ``
            (ii) relevance;
 ``
            (iii) timeliness; and
 ``
            (iv) usefulness.
 ``

    (4) Publication.--
 ``
        (A) In general.--Not later than the date on which 
 the online portal required by paragraph

    (2)
        (A) is 
 complete, the Secretary shall develop and implement a 
 plan to publicize the whistleblower incentive program 
 established by paragraph

    (1) .
 ``
        (B) Funding.--The Secretary shall pay any 
 expenses incurred under subparagraph
        (A) from amounts 
 authorized to be appropriated to the Bureau of Industry 
 and Security.
 ``
            (c) Protection of Whistleblowers.--
 ``

    (1) Prohibition against retaliation.--
 ``
        (A) In general.--Except as provided in 
 subparagraph
        (B) , no employer may discharge, demote, 
 suspend, threaten, harass, directly or indirectly, or 
 in any other manner discriminate against a 
 whistleblower in the terms and conditions of employment 
 because of a lawful act done by the whistleblower--
 ``
            (i) in reporting violations to the 
 employer or to a law enforcement agency;
 ``
            (ii) in providing information to the 
 Secretary in accordance with this section; or
 ``
            (iii) in initiating, testifying in, or 
 assisting in any investigation or judicial or 
 administrative action based upon or related to 
 such information.
 ``
        (B) Exception.--The protection against 
 retaliation established by subparagraph
        (A) shall not 
 apply to any individual who reports information under 
 this section knowing that such information is false.
 ``
            (C) Enforcement.--
 ``
            (i) Cause of action.--An individual who 
 alleges discharge or other discrimination in 
 violation of subparagraph
        (A) may bring an 
 action under this paragraph in the appropriate 
 district court of the United States for the 
 relief provided in subparagraph
            (D) .
 ``
            (ii) Subpoenas.--A subpoena requiring the 
 attendance of a witness at a trial or hearing 
 conducted under this subparagraph may be served 
 at any place in the United States.
 ``
            (iii) Statute of limitations.--
 ``
            (I) In general.--An action under 
 this subparagraph shall not be 
 entertained if commenced more than--
 ``

    (aa) 6 years after the 
 date of the violation of 
 subparagraph
        (A) occurred; or
 ``

    (bb) 3 years after the 
 date when facts material to the 
 right of action are known or 
 reasonably should have been 
 known by the employee alleging 
 a violation of subparagraph
        (A) .
 ``
            (II) Required action within 10 
 years.--Notwithstanding subclause
            (I) , 
 an action under this subparagraph may 
 not in any circumstance be brought more 
 than 10 years after the date on which 
 the violation occurs.
 ``
            (D) Relief.--Relief for an individual prevailing 
 in an action brought under subparagraph
            (C) shall 
 include--
 ``
            (i) reinstatement with the same seniority 
 status that the individual would have had, but 
 for the discrimination;
 ``
            (ii) 2 times the amount of back pay 
 otherwise owed to the individual, with 
 interest; and
 ``
            (iii) compensation for litigation costs, 
 expert witness fees, and reasonable attorneys' 
 fees.
 ``

    (2) Confidentiality.--
 ``
        (A) In general.--Except as provided in 
 subparagraphs
        (B) and
            (C) , the Secretary and any 
 officer or employee of the Department of Commerce shall 
 not disclose any information, including information 
 provided by a whistleblower to the Secretary, that 
 could reasonably be expected to reveal the identity of 
 the whistleblower, except in accordance with the 
 provisions of 

section 552a of title 5, United States 
 Code, unless and until required to be disclosed to a 
 defendant or respondent in connection with a public 
 proceeding instituted by the Secretary or any entity 
 described in subparagraph
            (D) .
 ``
        (B) Exempted statute.--For purposes of 

section 552 of title 5, United States Code, this paragraph 
 shall be considered a statute described in subsection

    (b)

    (3)
        (B) of such section.
 ``
            (C) Rule of construction.--Nothing in this 
 section is intended to limit, or shall be construed to 
 limit, the ability of the Attorney General to present 
 such evidence to a grand jury or to share such evidence 
 with potential witnesses or defendants in the course of 
 an ongoing criminal investigation.
 ``
            (D) Availability to government agencies.--
 ``
            (i) In general.--Without the loss of its 
 status as confidential in the hands of the 
 Secretary, all information referred to in 
 subparagraph
        (A) may, in the discretion of the 
 Secretary, when determined by the Secretary to 
 be necessary to accomplish the purposes of this 
 part or any regulation, order, license, or 
 other authorization issued under this part, be 
 made available to--
 ``
            (I) a Federal law enforcement 
 agency;
 ``
            (II) a national security agency;
 ``
            (III) an appropriate regulatory 
 authority;
 ``
            (IV) a self-regulatory 
 organization; and
 ``
            (V) a foreign law enforcement 
 authority.
 ``
            (ii) Confidentiality.--
 ``
            (I) In general.--Each of the 
 entities described in subclauses
            (I) through
            (IV) of clause
            (i) shall 
 maintain such information as 
 confidential in accordance with the 
 requirements established under 
 subparagraph
        (A) .
 ``
            (II) Foreign authorities.--Each 
 of the entities described in clause
            (i) 
            (V) shall maintain such information 
 in accordance with such assurances of 
 confidentiality as the Secretary 
 determines appropriate.
 ``
            (d) Export Compliance Accountability Fund.--
 ``

    (1) Establishment.--Not later than 90 days after the date 
 of the enactment of this section, there shall be established in 
 the Treasury of the United States a fund to be known as the 
 `Export Compliance Accountability Fund' (in this subsection 
 referred to as the `Fund').
 ``

    (2) Availability.--At the end of each fiscal year, any 
 amounts deposited into the Fund under paragraph

    (3) that remain 
 in the Fund after the payment, for that fiscal year, of all 
 expenses under paragraph

    (3) shall be transferred to the 
 general fund of the Treasury.
 ``

    (3) Use of fund.--The Fund shall be available to the 
 Secretary, without further appropriation or fiscal year 
 limitation, for--
 ``
        (A) paying awards to whistleblowers as provided 
 in subsection

    (b)

    (3) ;
 ``
        (B) funding activities that support the 
 whistleblower incentive program and whistleblower 
 protections, including--
 ``
            (i) reviewing and investigating 
 whistleblower reports;
 ``
            (ii) providing training and education on 
 compliance with the confidentiality requirement 
 under subsection
            (c) (2) ; and
 ``
            (iii) record keeping, as considered 
 necessary by the Secretary; and
 ``
            (C) if all outstanding awards under subsection

    (b)

    (3) have been paid, expenses related to enforcement 
 of this part or any regulation, order, license, or 
 other authorization issued under this part.
 ``

    (4) Deposits and credits.--There shall be deposited into 
 or credited to the Fund an amount equal to any fine collected 
 by the Secretary on or after the date of the enactment of this 
 section in any judicial or administrative action brought by the 
 Secretary that depends on or was initiated because of original 
 information submitted by a whistleblower.
 ``

    (e) Initial Funding.--The Secretary shall pay, from amounts 
otherwise available to the Bureau of Industry and Security, any 
expenses incurred under this section before the Export Compliance 
Accountability Fund is established under subsection
            (d) and has 
received deposits under paragraph

    (3) of that subsection.''.

    (b) Conforming Amendment.--

Section 1402

    (b)

    (1)
        (B) of the Victims of 
Crime Act of 1984 (34 U.S.C. 20101

    (b)

    (1)
        (B) ) is amended--

    (1) in clause
            (iii) , by striking ``; and'' and inserting a 
 semicolon;

    (2) in clause
            (iv) , by striking the semicolon and inserting 
 ``; and''; and

    (3) by adding at the end the following;
 ``
            (v) the Export Compliance Accountability 
 Fund pursuant to 

section 1761A

    (e) of the Export 
 Control Reform Act of 2018.''.
 <all>