[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3455 Introduced in Senate (IS)]

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115th CONGRESS
  2d Session
                                S. 3455

  To require the Secretary of Commerce to ensure that ZTE Corporation 
 complies with all probationary conditions set forth in the settlement 
   agreement entered into between ZTE Corporation and the Bureau of 
          Industry and Security of the Department of Commerce.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 18, 2018

 Mr. Rubio (for himself, Mr. Van Hollen, Ms. Collins, Mr. Warner, Mr. 
Lankford, and Ms. Warren) introduced the following bill; which was read 
  twice and referred to the Committee on Banking, Housing, and Urban 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
  To require the Secretary of Commerce to ensure that ZTE Corporation 
 complies with all probationary conditions set forth in the settlement 
   agreement entered into between ZTE Corporation and the Bureau of 
          Industry and Security of the Department of Commerce.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``ZTE Enforcement Review and Oversight 
Act''.

SEC. 2. COMPLIANCE BY ZTE CORPORATION WITH PROBATIONARY CONDITIONS OF 
              SETTLEMENT AGREEMENT WITH BUREAU OF INDUSTRY AND SECURITY 
              OF DEPARTMENT OF COMMERCE.

    (a) Compliance With Settlement Conditions.--The Secretary of 
Commerce shall ensure that ZTE Corporation complies with all conditions 
set forth in paragraph 3 of the settlement agreement that are required 
of ZTE Corporation during the 10-year probationary period specified in 
that paragraph.
    (b) Report on Compliance.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, and not less frequently than every 
        90 days thereafter, the Secretary of Commerce shall submit to 
        Congress a report on the compliance of ZTE Corporation with the 
        conditions described in subsection (a).
            (2) Certification of compliance.--Each report submitted 
        under paragraph (1) shall include a certification of whether 
        ZTE Corporation is in full compliance with--
                    (A) the conditions described in subsection (a); and
                    (B) all sanctions and export control laws of the 
                United States and all licenses and orders issued by the 
                Government of the United States.
    (c) Transmittal of Audits.--The Secretary of Commerce shall 
transmit to the appropriate congressional committees all audits 
completed by ZTE Corporation pursuant to paragraph 3.c of the 
settlement agreement that are provided to the Secretary.
    (d) Penalties.--If the Secretary of Commerce determines that ZTE 
Corporation is not in full compliance with the conditions described in 
subsection (a), the Secretary shall--
            (1) waive the suspension period described in paragraph 3.h 
        of the settlement agreement for the denial order described in 
        paragraph 3.g of the settlement agreement; and
            (2) require the immediate payment by ZTE Corporation to the 
        Department of Commerce of the $400,000,000 held in escrow 
        pursuant to paragraph 3.a of the settlement agreement.
    (e) Definitions.--In this section:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees''' means--
                    (A) the Committee on Appropriations, the Committee 
                on Banking, Housing, and Urban Affairs, the Committee 
                on Commerce, Science, and Transportation, the Committee 
                on Foreign Relations, and the Select Committee on 
                Intelligence of the Senate; and
                    (B) the Committee on Appropriations, the Committee 
                on Financial Services, the Committee on Energy and 
                Commerce, the Committee on Foreign Affairs, and the 
                Permanent Select Committee on Intelligence of the House 
                of Representatives.
            (2) Settlement agreement.--The term ``settlement 
        agreement'' means the Superseding Settlement Agreement dated 
        June 7, 2018, between Zhongxing Telecommunications Equipment 
        Corporation, ZTE Kangxun Telecommunications Ltd., and the 
        Bureau of Industry and Security of the Department of Commerce.
            (3) ZTE corporation.--The term ``ZTE Corporation'' means 
        the Zhongxing Telecommunications Equipment Corporation and any 
        subsidiary of that corporation.
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