I 108th CONGRESS 2d Session H. R. 3969 IN THE HOUSE OF REPRESENTATIVES March 12, 2004 Mr. Tauzin introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To amend the Communications Act of 1934 to strengthen the limitations on the holding of any license, permit, operating authority by a foreign government or any entity controlled by a foreign government.

1.

Short title

This Act may be cited as the &short-title1;.

2.

Foreign government

Title VII of the Communications Act of 1934 (47 U.S.C. 601 et seq.) is amended by adding at the end thereof the following:

715.

Limitations on foreign government ownership

(a)

Prohibition

Notwithstanding any other provision of this Act or any other law to the contrary, no license, permit, or operating authority under this Act may be granted to or held by a corporation, joint venture, partnership, other business organization, trust, or other entity after the date of enactment of the &short-title1;, if that corporation, joint venture, partnership, other business organization, trust, or other entity is directly or indirectly controlled by a foreign government or its representative, as determined under subsection (c). (b)

Prohibition is absolute

The Commission may not waive the application of subsection (a) under any other authority granted to the Commission under this or any other Act or under any Commission order or rule. (c)

Test of control

A corporation, joint venture, partnership, other business organization, trust, or other entity shall be considered to be directly or indirectly controlled by a foreign government or its representatives if— (1)more than 25 percent of the ownership, voting rights, capital stock, or other interest in that corporation or other entity is owned, held, or controlled, directly or indirectly, by a foreign government or its representatives; (2)a foreign government or its representatives has the authority to approve or disapprove the appointment or employment of any officer of the corporation, joint venture, partnership, other business organization, trust, or other entity; or (3)a foreign government or its representative has the authority to exercise control over such corporation, joint venture, partnership, other business organization, trust, or other entity in any other manner. (d)

Representatives

A representative of a foreign government shall include any person or entity that acts on the instruction of a foreign government. (e)

Enforcement

The Commission shall— (1)revoke any license, permit, or operating authority held in violation of subsection (a); and (2)auction or otherwise reassign any such license, permit, or operating authority revoked under paragraph (1) within 90 days after it is revoked. (f)

Transition period

Notwithstanding subsection (e), the Commission may not commence enforcement action under that subsection against a corporation, joint venture, partnership, other business organization, trust, or other entity to which this section applies for 6 months following the date of enactment of the &short-title1;.

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