HR6322-119

What This Bill Does

This bill creates a whistleblower program for export-control violations under the Export Control Reform Act of 2018. Congress finds that diversion of leading-edge artificial intelligence chips to adversary countries threatens national security and that rewards can encourage high-value reporting and stronger internal compliance. The bill defines original information, whistleblower, and related action, and excludes federal employees acting within official duties and individuals on OFAC specially designated nationals, Denied Persons, or Entity List restrictions.

Within 120 days, the Secretary of Commerce must create a whistleblower incentive program and a secure public portal for original information about export-control violations or illegal exports, reexports, or in-country transfers. Credible reports must receive initial review within 60 days and prompt investigation, with updates after 60 days and at least every 180 days. Whistleblowers whose original information leads to fines above $1 million can receive 10 to 30 percent of collected fines. The bill allows anonymous reporting through attorneys, bars employer interference and retaliation, creates district-court remedies with reinstatement, double back pay, costs, expert fees, and attorney fees, protects confidentiality, and creates an Export Compliance Accountability Fund that retains at least $100 million adjusted for inflation or enough to cover pending awards.

Who Benefits and How

Export-control whistleblowers benefit from potential 10 to 30 percent awards, anonymous attorney reporting, status updates, confidentiality, and anti-retaliation remedies. Whistleblower attorneys benefit because anonymous submissions and retaliation actions create representation opportunities. BIS export enforcement staff benefit from a dedicated portal, original information, and a fund for awards, investigations, training, recordkeeping, IT, and enforcement expenses. Federal law enforcement agencies benefit from access to confidential information when needed for enforcement. Compliant semiconductor manufacturers benefit if stronger reporting deters unlawful chip diversion by competitors.

Who Bears the Burden and How

Companies exporting controlled technology must strengthen compliance because employees and outsiders have financial incentives to report violations. Employers of potential whistleblowers must avoid impeding communications with Commerce or retaliating against lawful reports. Export-control violators face higher fine, forfeiture, and investigation risk. Department of Commerce program staff must create the portal, review credibility within 60 days, update reporters, pay awards, protect confidentiality, publicize the program, and maintain the fund. Listed individuals on OFAC, Denied Persons, or Entity List restrictions are excluded from award eligibility.

Key Provisions

• Establishes a whistleblower incentive program for original export-control information within 120 days.
• Requires a secure public reporting portal and allows anonymous reports through attorneys.
• Requires credible reports to trigger formal investigations and periodic status updates.
• Provides awards of 10 to 30 percent of collected fines above $1 million.
• Prohibits employer interference or retaliation and authorizes reinstatement, double back pay, costs, expert fees, and attorney fees.
• Creates confidentiality rules and an Export Compliance Accountability Fund retaining at least $100 million adjusted for inflation.
• Protects the Crime Victims Fund and U.S. Victims of State Sponsored Terrorism Fund from diversion.