This bill extends from 5 to 10 years the statute of limitations for civil and criminal violations of U.S. export control laws. The bill also specifies that the commencement of an action, suit, or proceeding includes the issuance of a charging letter. (A charging letter is a formal notification by the Department of Commerce's Bureau of Industry and Security that a company or individual is under investigation for an apparent violation of export administration laws or regulations.)
The BIS STRENGTH Act allows the Under Secretary of Commerce for Industry and Security to hire up to 25 outside experts for the Bureau of Industry and Security, bypassing standard civil service hiring rules to fill critical skill gaps. These temporary appointments are limited to a maximum of five years per employee, with total annual compensation capped at the Vice President's salary level. The bill requires the Under Secretary to submit annual reports to congressional committees detailing the expertise gaps identified, the qualifications of hired individuals, and their impact on export control missions. This special hiring authority expires five years after the act is enacted, though existing employees may finish out their appointed terms.
The ADVERSARIES Act requires the Under Secretary of the Bureau of Industry and Security to conduct a review within 90 days of enactment regarding how U.S.-based affiliates of foreign entities on the Entity List or Military End User List might be acquiring controlled items that their parent companies are restricted from accessing. The review must also assess national security risks posed by foreign adversary exploitation of vulnerabilities in information and communications technology, including whether specific sectors pose undue risk to export control effectiveness. Following the review, officials must submit a report to relevant congressional committees detailing their findings, any planned actions to address identified threats within the next year, and recommendations for changes to U.S. law.
The Financial Artificial Intelligence Risk Reduction Act directs the Financial Stability Oversight Council to assess how artificial intelligence impacts financial system stability and requires it to submit a report to Congress within 180 days identifying specific threats, regulatory gaps, and recommendations for action. The bill mandates that the Securities and Exchange Commission issue rules requiring major financial entities, such as issuers and brokers, to establish policies and controls that specifically address their use of AI, including governance measures for testing, monitoring, and human oversight. Additionally, it expands regulatory authority over third-party service providers by allowing federal housing finance agencies to examine contractors performing activities on behalf of regulated entities and clarifies that the use of AI does not excuse compliance with existing securities laws.
The Fair Audits and Inspections for Regulators' Exams Act establishes strict deadlines for federal financial regulators to complete examinations, conduct exit interviews, and issue final reports, with extensions permitted only for specific documented reasons. The bill creates a new Office of Independent Examination Review within the Federal Financial Institutions Examination Council, staffed by a three-member board appointed by the President, to oversee examination quality and handle complaints from financial institutions. It grants banks and credit unions the right to request binding written advice on regulatory interpretations and allows them to seek independent, de novo review of significant supervisory determinations made during exams. Additionally, the legislation permits regulated entities to choose between an administrative hearing before their regulator or a judicial hearing in federal district court when facing enforcement actions or civil money penalties.
