S. 2040: Connected Vehicle National Security Review Act

The "Connected Vehicle National Security Review Act" aims to enhance national security by establishing a dedicated Office within the Department of Commerce. This Office will review transactions related to connected vehicles to identify and address potential risks that may arise from harmful technologies and entities associated with these vehicles. The Secretary of Commerce is given the authority to prohibit or otherwise mitigate transactions that pose a risk to national security.

Key Provisions

• Establishment of an Office: A new office will be created to oversee the security of connected vehicle technologies.
• Transaction Review: The Office will have the responsibility to review transactions involving connected vehicles for potential threats to national security.
• Authority to Act: The Secretary of Commerce can take action against transactions deemed to be a security risk, including prohibiting or mitigating them.

Reporting Requirements

In the event of violations, the bill sets forth procedures detailing how responses to pre-penalty notices should be handled. These responses must be:

• Typewritten and signed (digital signatures are acceptable).
• Include the identification number specified in the notice.
• Provide a rationale explaining why the alleged violation did not occur, supported by appropriate evidence.
• Representatives can respond on behalf of violators, provided they have written authorization for any oral communications.

Overall Impact

This legislation focuses on securing the future of connected vehicles by ensuring thorough oversight of transactions that may introduce risks related to national security. The protocols for responding to violations are designed to maintain accountability and proper communication in cases of disputes.

Relevant Companies

• TSLA - Tesla, Inc.: As a leading manufacturer of connected vehicles, Tesla may be directly impacted by the transaction review process and any associated prohibitions or mitigations regarding their technologies.
• F - Ford Motor Company: Ford, with its expanding line of connected vehicles, could face increased scrutiny over its transactions and partnerships to ensure they comply with national security measures.
• GM - General Motors Company: GM's connected vehicle technologies might also be reviewed for security compliance, potentially impacting their business operations and joint ventures.