S. 2040 — Connected Vehicle National Security Review Act

This section amends the Export Control Reform Act of 2018 (50 U.S.C. 4801 et seq.) to add a new Part IV establishing the Office of Information and Communications Technology and Services within the Bureau of Industry and Security of the Department of Commerce, headed by an Executive Director appointed by the Secretary who reports to the Assistant Secretary for Industry and Security. The section defines key terms, including (1) "connected vehicle" as a mechanically powered vehicle for public roads with onboard networked hardware for wireless communication (excluding rail vehicles); (2) "covered transaction" as a U.S.-jurisdictional transaction involving information and communications technology and services (ICTS) from a jurisdiction of concern (China, Russia, Iran, or North Korea) or a Commerce Control List item used in a connected vehicle; (3) "entity of concern" as an entity owned or controlled by those on the Entity List or from an arms-embargoed country; and (4) "undue risk" as risks of sabotage to ICTS, catastrophic effects on critical infrastructure or the digital economy, or acquisition of controlled items by entities of concern. The office must (1) identify and prevent undue risks from covered transactions through mitigation or prohibition and (2) educate industry on risks and decisions; it receives special competitive-service hiring authority and transition rules allowing a pre-enactment Executive Director to continue in office. The Secretary, acting through the office, must review covered transactions.