II 118THCONGRESS 1 STSESSION S. 1868 To require an interagency study to produce a security assessment process on adjacent space to high-security leased space to accommodate a Federal agency, and for other purposes. IN THE SENATE OF THE UNITED STATES JUNE7, 2023 Mr. P ETERS(for himself and Mr. SCOTTof Florida) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs A BILL To require an interagency study to produce a security assess- ment process on adjacent space to high-security leased space to accommodate a Federal agency, and for other purposes. Be it enacted by the Senate and House of Representa-1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Secure Adjacent Fed-4 eral Property Act of 2023’’. 5 SEC. 2. DEFINITIONS. 6 In this Act: 7 VerDate Sep 11 2014 01:14 Jun 09, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1868.IS S1868 kjohnson on DSK79L0C42PROD with BILLS 2 •S 1868 IS (1) ADMINISTRATOR.—The term ‘‘Adminis-1 trator’’ means the Administrator of General Serv-2 ices. 3 (2) B ENEFICIAL OWNER.— 4 (A) I N GENERAL.—The term ‘‘beneficial 5 owner’’, with respect to a covered entity, means 6 each natural person who, directly or indirectly, 7 through any contract, arrangement, under-8 standing, relationship, or otherwise— 9 (i) exercises control over the covered 10 entity; or 11 (ii) has a substantial interest in or re-12 ceives substantial economic benefits from 13 the assets of the covered entity. 14 (B) E XCLUSIONS.—The term ‘‘beneficial 15 owner’’, with respect to a covered entity, does 16 not include— 17 (i) a minor; 18 (ii) a person acting as a nominee, 19 intermediary, custodian, or agent on behalf 20 of another person; 21 (iii) a person acting solely as an em-22 ployee of the covered entity and whose con-23 trol over or economic benefits from the 24 VerDate Sep 11 2014 01:14 Jun 09, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1868.IS S1868 kjohnson on DSK79L0C42PROD with BILLS 3 •S 1868 IS covered entity derives solely from the em-1 ployment status of the person; 2 (iv) a person whose only interest in 3 the covered entity is through a right of in-4 heritance, unless the person also meets the 5 requirements of subparagraph (A); or 6 (v) a creditor of the covered entity, 7 unless the creditor also meets the require-8 ments of subparagraph (A). 9 (C) A NTI-ABUSE RULE.—The exclusions 10 under subparagraph (B) shall not apply if, in 11 the determination of the Administrator, an ex-12 clusion is used for the purpose of evading, cir-13 cumventing, or abusing the requirements of this 14 Act. 15 (3) C ONTROL.—The term ‘‘control’’, with re-16 spect to a covered entity, means— 17 (A) having the authority or ability to de-18 termine how the covered entity is used; or 19 (B) having some decision-making power for 20 the use of the covered entity. 21 (4) C OVERED ENTITY.—The term ‘‘covered en-22 tity’’ means— 23 (A) a person, corporation, company, busi-24 ness association, partnership, society, trust, or 25 VerDate Sep 11 2014 01:14 Jun 09, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1868.IS S1868 kjohnson on DSK79L0C42PROD with BILLS 4 •S 1868 IS any other nongovernmental entity, organization, 1 or group; and 2 (B) any governmental entity or instrumen-3 tality of a government. 4 (5) E XECUTIVE AGENCY.—The term ‘‘Executive 5 agency’’ has the meaning given the term in section 6 105 of title 5, United States Code. 7 (6) F EDERAL AGENCY .—The term ‘‘Federal 8 agency’’ means— 9 (A) an Executive agency; and 10 (B) any establishment in the legislative or 11 judicial branch of the Federal Government. 12 (7) F EDERAL LESSEE.— 13 (A) I N GENERAL.—The term ‘‘Federal les-14 see’’ means— 15 (i) the Administrator; 16 (ii) the Architect of the Capitol; and 17 (iii) the head of any other Federal 18 agency that has independent statutory 19 leasing authority. 20 (B) E XCLUSIONS.—The term ‘‘Federal les-21 see’’ does not include— 22 (i) the head of an element of the intel-23 ligence community; or 24 (ii) the Secretary of Defense. 25 VerDate Sep 11 2014 01:14 Jun 09, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1868.IS S1868 kjohnson on DSK79L0C42PROD with BILLS 5 •S 1868 IS (8) FEDERAL TENANT.— 1 (A) I N GENERAL.—The term ‘‘Federal ten-2 ant’’ means a Federal agency that is occupying 3 or will occupy a high-security leased space for 4 which a lease agreement has been secured on 5 behalf of the Federal agency. 6 (B) E XCLUSION.—The term ‘‘Federal ten-7 ant’’ does not include an element of the intel-8 ligence community. 9 (9) F OREIGN ENTITY.—The term ‘‘foreign enti-10 ty’’ means a covered entity that is headquartered or 11 incorporated in a country that is not the United 12 States. 13 (10) F OREIGN PERSON.—The term ‘‘foreign 14 person’’ means an individual who is not a United 15 States person. 16 (11) H IGH-SECURITY LEASED ADJACENT 17 SPACE.—The term ‘‘high-security leased adjacent 18 space’’ means a building or office space that shares 19 a boundary with or surrounds a high-security leased 20 space. 21 (12) H IGH-SECURITY LEASED SPACE .—The 22 term ‘‘high-security leased space’’ means a space 23 leased by a Federal lessee that— 24 VerDate Sep 11 2014 01:14 Jun 09, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1868.IS S1868 kjohnson on DSK79L0C42PROD with BILLS 6 •S 1868 IS (A) will be occupied by Federal employees 1 for nonmilitary activities; and 2 (B) has a facility security level of III, IV, 3 or V, as determined by the Federal tenant in 4 consultation with the Interagency Security 5 Committee, the Secretary of Homeland Secu-6 rity, and the Administrator. 7 (13) H IGHEST-LEVEL OWNER .—The term 8 ‘‘highest-level owner’’ means an entity that owns or 9 controls— 10 (A) an immediate owner of the offeror of 11 a lease for a high-security leased adjacent 12 space; or 13 (B) 1 or more entities that control an im-14 mediate owner of the offeror of a lease de-15 scribed in subparagraph (A). 16 (14) I MMEDIATE OWNER .—The term ‘‘imme-17 diate owner’’ means an entity, other than the offeror 18 of a lease for a high-security leased adjacent space, 19 that has direct control of that offeror, including— 20 (A) ownership or interlocking management; 21 (B) identity of interests among family 22 members; 23 (C) shared facilities and equipment; and 24 (D) the common use of employees. 25 VerDate Sep 11 2014 01:14 Jun 09, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1868.IS S1868 kjohnson on DSK79L0C42PROD with BILLS 7 •S 1868 IS (15) INTELLIGENCE COMMUNITY .—The term 1 ‘‘intelligence community’’ has the meaning given the 2 term in section 3 of the National Security Act of 3 1947 (50 U.S.C. 3003). 4 (16) S UBSTANTIAL ECONOMIC BENEFITS .—The 5 term ‘‘substantial economic benefits’’, with respect 6 to a natural person described in paragraph 7 (2)(A)(ii), means having an entitlement to the funds 8 or assets of a covered entity that, as a practical mat-9 ter, enables the person, directly or indirectly, to con-10 trol, manage, or direct the covered entity. 11 (17) U NITED STATES PERSON .—The term 12 ‘‘United States person’’ means an individual who— 13 (A) is a citizen of the United States; or 14 (B) is an alien lawfully admitted for per-15 manent residence in the United States. 16 SEC. 3. GOVERNMENTWIDE STUDY. 17 (a) C OORDINATIONSTUDY.—The Administrator, in 18 coordination with the Director of the Federal Protective 19 Service, the Secretary of Homeland Security, the Director 20 of the Office of Management and Budget, and any other 21 relevant entities, as determined by the Administrator, 22 shall carry out a governmentwide study examining options 23 to assist agencies (as defined is defined in section 551 of 24 title 5, United States Code) to produce a security assess-25 VerDate Sep 11 2014 01:14 Jun 09, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1868.IS S1868 kjohnson on DSK79L0C42PROD with BILLS 8 •S 1868 IS ment process on high-security leased adjacent space before 1 entering into a lease or novation agreement with a covered 2 entity for the purposes of accommodating a Federal ten-3 ant located in a high-security leased space. 4 (b) C ONTENTS.—The study required under sub-5 section (a)— 6 (1) shall evaluate how to produce a security as-7 sessment process that includes a process for assess-8 ing the threat level of each occupancy of a high-se-9 curity leased space, including through— 10 (A) site-visits; 11 (B) interviews; and 12 (C) any other relevant activities deter-13 mined necessary by the Director of the Federal 14 Protective Service; and 15 (2) may include a process for collecting and 16 using information on each immediate owner, highest- 17 level owner, or beneficial owner of a covered entity 18 that seeks to enter into a lease with a Federal lessee 19 for a high-security leased adjacent space, includ-20 ing— 21 (A) name; 22 (B) current residential or business street 23 address; and 24 VerDate Sep 11 2014 01:14 Jun 09, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1868.IS S1868 kjohnson on DSK79L0C42PROD with BILLS 9 •S 1868 IS (C) an identifying number or document 1 that verifies identity as a United States person, 2 a foreign person, or foreign entity. 3 (c) W ORKINGGROUP.— 4 (1) I N GENERAL.—Not later than 90 days after 5 the date of enactment of this Act, the Administrator, 6 in coordination with the Director of Federal Protec-7 tive Service, the Secretary of Homeland Security, 8 the Director of the Office of Management and Budg-9 et, and any other relevant entities, as determined by 10 the Administrator, shall establish a working group 11 to assist in the carrying out of the study required 12 under subsection (a). 13 (2) N O COMPENSATION .—A member of the 14 working group established under paragraph (1) shall 15 receive no compensation as a result of serving on the 16 working group. 17 (3) S UNSET.—The working group established 18 under paragraph (1) shall terminate on the date on 19 which the report required under subsection (e) is 20 submitted. 21 (d) P ROTECTION OFINFORMATION.—The Adminis-22 trator shall ensure that any information collected pursu-23 ant to the study required under subsection (a) shall not 24 be made available to the public. 25 VerDate Sep 11 2014 01:14 Jun 09, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S1868.IS S1868 kjohnson on DSK79L0C42PROD with BILLS 10 •S 1868 IS (e) REPORT.—Not later than 2 years after the date 1 of enactment of this Act, the Administrator, in coordina-2 tion with the Director of Federal Protective Service, the 3 Secretary of Homeland Security, the Director of the Office 4 of Management and Budget, and any other relevant enti-5 ties, as determined by the Administrator, shall submit to 6 the Committee on Homeland Security and Governmental 7 Affairs of the Senate and the Committee on Transpor-8 tation and Infrastructure of the House of Representatives 9 a report describing— 10 (1) the results of the study required under sub-11 section (a); and 12 (2) how all applicable privacy laws and rights 13 relating to the First and Fourth Amendments to the 14 Constitution of the United States would be upheld 15 and followed in— 16 (A) the security assessment process de-17 scribed in paragraph (1) of subsection (b); and 18 (B) the information collection process de-19 scribed in paragraph (2) of that subsection. 20 Æ VerDate Sep 11 2014 01:14 Jun 09, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6301 E:\BILLS\S1868.IS S1868 kjohnson on DSK79L0C42PROD with BILLS