[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4998 Reported in House (RH)]
<DOC>
Union Calendar No. 281
116th CONGRESS
1st Session
H. R. 4998
[Report No. 116-352]
To prohibit certain Federal loans, grants, and subsidies from being
used to purchase communications equipment or services posing national
security risks, to provide for the establishment of a reimbursement
program for the replacement of communications equipment or services
posing such risks, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 8, 2019
Mr. Pallone (for himself, Mr. Walden, Ms. Matsui, and Mr. Guthrie)
introduced the following bill; which was referred to the Committee on
Energy and Commerce
December 16, 2019
Reported with amendments, committed to the Committee of the Whole House
on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on
November 8, 2019]
_______________________________________________________________________
A BILL
To prohibit certain Federal loans, grants, and subsidies from being
used to purchase communications equipment or services posing national
security risks, to provide for the establishment of a reimbursement
program for the replacement of communications equipment or services
posing such risks, and for other purposes.
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 ``Secure and Trusted Communications
Networks Act of 2019''.
SEC. 2. DETERMINATION OF COMMUNICATIONS EQUIPMENT OR SERVICES POSING
NATIONAL SECURITY RISKS.
(a) Publication of Covered Communications Equipment or Services
List.--Not later than 1 year after the date of the enactment of this
Act, the Commission shall publish on its website a list of covered
communications equipment or services.
(b) Determination by Commission.--The Commission shall place on the
list published under subsection (a) any communications equipment or
service, if and only if the Commission determines that such equipment
or service--
(1) is produced or provided by--
(A) Huawei Technologies Co. Limited, Zhongxing
Telecommunications Equipment Corporation, or any
subsidiary or affiliate of either such entity;
(B) any successor to any entity described in
subparagraph (A); or
(C) any other entity, if the Commission determines,
based exclusively on the determinations described in
paragraphs (1) through (3) of subsection (c), that such
equipment or service produced or provided by such
entity poses an unacceptable risk to the national
security of the United States or the security and
safety of United States persons; and
(2) is capable of--
(A) routing or redirecting user data traffic or
permitting visibility into any user data or packets
that such equipment or service transmits or otherwise
handles; or
(B) causing the network of a provider of advanced
communications service to be disrupted remotely.
(c) Reliance on Certain Other Determinations.--In making a
determination under subsection (b)(1)(C), the Commission shall rely
solely on one or more of the following determinations:
(1) A specific determination made by any executive branch
interagency body with appropriate national security expertise,
including the Federal Acquisition Security Council established
under section 1322(a) of title 41, United States Code.
(2) A specific determination made by the Department of
Commerce pursuant to Executive Order 13873 (84 Fed. Reg. 22689;
relating to securing the information and communications
technology and services supply chain).
(3) The communications equipment or service being covered
telecommunications equipment or services, as defined in section
889(f)(3) of the John S. McCain National Defense Authorization
Act for Fiscal Year 2019 (Public Law 115-232; 132 Stat. 1918).
(d) Updating of List.--
(1) In general.--The Commission shall periodically update
the list published under subsection (a), as necessary to
protect national security and to address changes in the
determinations described in paragraphs (1) through (3) of
subsection (c).
(2) Monitoring of determinations.--The Commission shall
monitor the making or reversing of the determinations described
in paragraphs (1) through (3) of subsection (c) in order to
determine whether to place communications equipment or services
on the list published under subsection (a) or to remove
communications equipment or services from such list. If a
determination described in any such paragraph that provided the
basis for a determination by the Commission under subsection
(b)(1)(C) with respect to any communications equipment or
service is reversed, the Commission shall remove such equipment
or service from such list, except that the Commission may not
remove such equipment or service from such list if any other
determination described in any such paragraph provides a basis
for a determination by the Commission under subsection
(b)(1)(C) with respect to such equipment or service.
(3) Public notification.--For each 12-month period during
which the list published under subsection (a) is not updated,
the Commission shall notify the public that no updates were
necessary during such period to protect national security or to
address changes in the determinations described in paragraphs
(1) through (3) of subsection (c).
SEC. 3. PROHIBITION ON USE OF CERTAIN FEDERAL SUBSIDIES.
(a) In General.--
(1) Prohibition.--A Federal subsidy that is made available
through a program administered by the Commission and that
provides funds to be used for the capital expenditures
necessary for the provision of advanced communications service
may not be used to--
(A) purchase, rent, lease, or otherwise obtain any
covered communications equipment or service; or
(B) maintain any covered communications equipment
or service previously purchased, rented, leased, or
otherwise obtained.
(2) Timing.--Paragraph (1) shall apply with respect to any
covered communications equipment or service beginning on the
date that is 60 days after the date on which the Commission
places such equipment or service on the list required by
section 2(a). In the case of any covered communications
equipment or service that is on the initial list published
under such section, such equipment or service shall be treated
as being placed on the list on the date on which such list is
published.
(b) Completion of Proceeding.--Not later than 90 days after the
date of the enactment of this Act, the Commission shall adopt a Report
and Order in the matter of Protecting Against National Security Threats
to the Communications Supply Chain Through FCC Programs (WC Docket No.
18-89) that implements subsection (a).
SEC. 4. SECURE AND TRUSTED COMMUNICATIONS NETWORKS REIMBURSEMENT
PROGRAM.
(a) In General.--The Commission shall establish a reimbursement
program, to be known as the ``Secure and Trusted Communications
Networks Reimbursement Program'', to make reimbursements to providers
of advanced communications service to replace covered communications
equipment or services.
(b) Eligibility.--The Commission may not make a reimbursement under
the Program to a provider of advanced communications service unless the
provider--
(1) has 2,000,000 or fewer customers; and
(2) makes all of the certifications required by subsection
(d)(5).
(c) Use of Funds.--
(1) In general.--A recipient of a reimbursement under the
Program shall use reimbursement funds solely for the purposes
of--
(A) permanently removing covered communications
equipment or services purchased, rented, leased, or
otherwise obtained before--
(i) in the case of any covered
communications equipment or services that are
on the initial list published under section
2(a), August 14, 2018; or
(ii) in the case of any covered
communications equipment or services that are
not on the initial list published under section
2(a), the date that is 60 days after the date
on which the Commission places such equipment
or services on the list required by such
section;
(B) replacing the covered communications equipment
or services removed as described in subparagraph (A)
with communications equipment or services that are not
covered communications equipment or services; and
(C) disposing of the covered communications
equipment or services removed as described in
subparagraph (A) in accordance with the requirements
under subsection (d)(8).
(2) Limitations.--A recipient of a reimbursement under the
Program may not--
(A) use reimbursement funds to remove, replace, or
dispose of any covered communications equipment or
service purchased, rented, leased, or otherwise
obtained on or after--
(i) in the case of any covered
communications equipment or service that is on
the initial list published under section 2(a),
August 14, 2018; or
(ii) in the case of any covered
communications equipment or service that is not
on the initial list published under section
2(a), the date that is 60 days after the date
on which the Commission places such equipment
or service on the list required by such
section; or
(B) purchase, rent, lease, or otherwise obtain any
covered communications equipment or service, using
reimbursement funds or any other funds (including funds
derived from private sources).
(d) Implementation.--
(1) Regulations.--Not later than 270 days after the date of
the enactment of this Act, the Commission shall promulgate
regulations to implement the Program.
(2) Suggested replacements.--
(A) Development of list.--The Commission shall
develop a list of suggested replacements of both
physical and virtual communications equipment,
application and management software, and services.
(B) Neutrality.--The list developed under
subparagraph (A) shall be technology neutral and may
not advantage the use of reimbursement funds for
capital expenditures over operational expenditures, to
the extent that the Commission determines that
communications services can serve as an adequate
substitute for the installation of communications
equipment.
(3) Application process.--
(A) In general.--The Commission shall develop an
application process and related forms and materials for
the Program.
(B) Cost estimate.--
(i) Initial estimate.--The Commission shall
require an applicant to provide an initial
reimbursement cost estimate at the time of
application, with supporting materials
substantiating the costs.
(ii) Updates.--During and after the
application review process, the Commission may
require an applicant to--
(I) update the initial
reimbursement cost estimate submitted
under clause (i); and
(II) submit additional supporting
materials substantiating an updated
cost estimate submitted under subclause
(I).
(C) Mitigation of burden.--In developing the
application process under this paragraph, the
Commission shall take reasonable steps to mitigate the
administrative burdens and costs associated with the
application process, while taking into account the need
to avoid waste, fraud, and abuse in the Program.
(4) Application review process.--
(A) Deadline.--
(i) In general.--Except as provided in
clause (ii) and subparagraph (B), the
Commission shall approve or deny an application
for a reimbursement under the Program not later
than 90 days after the date of the submission
of the application.
(ii) Additional time needed by
commission.--If the Commission determines that,
because an excessive number of applications
have been filed at one time, the Commission
needs additional time for employees of the
Commission to process the applications, the
Commission may extend the deadline described in
clause (i) for not more than 45 days.
(B) Opportunity for applicant to cure deficiency.--
If the Commission determines that an application is
materially deficient (including by lacking an adequate
cost estimate or adequate supporting materials), the
Commission shall provide the applicant a 15-day period
to cure the defect before denying the application. If
such period would extend beyond the deadline under
subparagraph (A) for approving or denying the
application, such deadline shall be extended through
the end of such period.
(C) Effect of denial.--Denial of an application for
a reimbursement under the Program shall not preclude
the applicant from resubmitting the application or
submitting a new application for a reimbursement under
the Program at a later date.
(5) Certifications.--An applicant for a reimbursement under
the Program shall, in the application of the applicant, certify
to the Commission that--
(A) as of the date of the submission of the
application, the applicant--
(i) has developed a plan for--
(I) the permanent removal and
replacement of any covered
communications equipment or services
that are in the communications network
of the applicant as of such date; and
(II) the disposal of the equipment
or services removed as described in
subclause (I) in accordance with the
requirements under paragraph (8); and
(ii) has developed a specific timeline
(subject to paragraph (7)) for the permanent
removal, replacement, and disposal of the
covered communications equipment or services
identified under clause (i), which timeline
shall be submitted to the Commission as part of
the application; and
(B) beginning on the date of the approval of the
application, the applicant--
(i) will not purchase, rent, lease, or
otherwise obtain covered communications
equipment or services, using reimbursement
funds or any other funds (including funds
derived from private sources); and
(ii) in developing and tailoring the risk
management practices of the applicant, will
consult and consider the standards, guidelines,
and best practices set forth in the
cybersecurity framework developed by the
National Institute of Standards and Technology.
(6) Distribution of reimbursement funds.--
(A) In general.--The Commission shall make
reasonable efforts to ensure that reimbursement funds
are distributed equitably among all applicants for
reimbursements under the Program according to the needs
of the applicants, as identified by the applications of
the applicants.
(B) Notification.--If, at any time during the
implementation of the Program, the Commission
determines that the funds made available to the
Commission to carry out the Program will not be
sufficient to fully fund all approved applications for
reimbursements under the Program, the Commission shall
immediately notify--
(i) the Committee on Energy and Commerce
and the Committee on Appropriations of the
House of Representatives; and
(ii) the Committee on Commerce, Science,
and Transportation and the Committee on
Appropriations of the Senate.
(7) Removal, replacement, and disposal term.--
(A) Deadline.--The permanent removal, replacement,
and disposal of any covered communications equipment or
services identified under paragraph (5)(A)(i) shall be
completed not later than 1 year after the date on which
the Commission distributes reimbursement funds to the
recipient.
(B) General extension.--The Commission may grant an
extension of the deadline described in subparagraph (A)
for 6 months to all recipients of reimbursements under
the Program if the Commission--
(i) finds that the supply of replacement
communications equipment or services needed by
the recipients to achieve the purposes of the
Program is inadequate to meet the needs of the
recipients; and
(ii) provides notice and a detailed
justification for granting the extension to--
(I) the Committee on Energy and
Commerce of the House of
Representatives; and
(II) the Committee on Commerce,
Science, and Transportation of the
Senate.
(C) Individual extension.--
(i) Petition.--A recipient of a
reimbursement under the Program may petition
the Commission for an extension for such
recipient of the deadline described in
subparagraph (A) or, if the Commission has
granted an extension of such deadline under
subparagraph (B), such deadline as so extended.
(ii) Grant.--The Commission may grant a
petition filed under clause (i) by extending,
for the recipient that filed the petition, the
deadline described in subparagraph (A) or, if
the Commission has granted an extension of such
deadline under subparagraph (B), such deadline
as so extended, for a period of not more than 6
months if the Commission finds that, due to no
fault of such recipient, such recipient is
unable to complete the permanent removal,
replacement, and disposal described in
subparagraph (A).
(8) Disposal of covered communications equipment or
services.--The Commission shall include in the regulations
promulgated under paragraph (1) requirements for the disposal
by a recipient of a reimbursement under the Program of covered
communications equipment or services identified under paragraph
(5)(A)(i) and removed from the network of the recipient in
order to prevent such equipment or services from being used in
the networks of providers of advanced communications service.
(9) Status updates.--
(A) In general.--Not less frequently than once
every 90 days beginning on the date on which the
Commission approves an application for a reimbursement
under the Program, the recipient of the reimbursement
shall submit to the Commission a status update on the
work of the recipient to permanently remove, replace,
and dispose of the covered communications equipment or
services identified under paragraph (5)(A)(i).
(B) Public posting.--Not earlier than 30 days after
the date on which the Commission receives a status
update under subparagraph (A), the Commission shall
make such status update public on the website of the
Commission.
(C) Reports to congress.--Not less frequently than
once every 180 days beginning on the date on which the
Commission first makes funds available to a recipient
of a reimbursement under the Program, the Commission
shall prepare and submit to the Committee on Energy and
Commerce of the House of Representatives and the
Committee on Commerce, Science, and Transportation of
the Senate a report on--
(i) the implementation of the Program by
the Commission; and
(ii) the work by recipients of
reimbursements under the Program to permanently
remove, replace, and dispose of covered
communications equipment or services identified
under paragraph (5)(A)(i).
(e) Measures to Avoid Waste, Fraud, and Abuse.--
(1) In general.--The Commission shall take all necessary
steps to avoid waste, fraud, and abuse with respect to the
Program.
(2) Spending reports.--The Commission shall require
recipients of reimbursements under the Program to submit to the
Commission on a regular basis reports regarding how
reimbursement funds have been spent, including detailed
accounting of the covered communications equipment or services
permanently removed and disposed of, and the replacement
equipment or services purchased, rented, leased, or otherwise
obtained, using reimbursement funds.
(3) Audits, reviews, and field investigations.--The
Commission shall conduct--
(A) regular audits and reviews of reimbursements
under the Program to confirm that recipients of such
reimbursements are complying with this Act; and
(B) random field investigations to ensure that
recipients of reimbursements under the Program are
performing the work such recipients are required to
perform under the commitments made in the applications
of such recipients for reimbursements under the
Program, including the permanent removal, replacement,
and disposal of the covered communications equipment or
services identified under subsection (d)(5)(A)(i).
(4) Final certification.--
(A) In general.--The Commission shall require a
recipient of a reimbursement under the Program to
submit to the Commission, in a form and at an
appropriate time to be determined by the Commission, a
certification stating that the recipient--
(i) has fully complied with (or is in the
process of complying with) all terms and
conditions of the Program;
(ii) has fully complied with (or is in the
process of complying with) the commitments made
in the application of the recipient for the
reimbursement;
(iii) has permanently removed from the
communications network of the recipient,
replaced, and disposed of (or is in the process
of permanently removing, replacing, and
disposing of) all covered communications
equipment or services that were in the network
of the recipient as of the date of the
submission of the application of the recipient
for the reimbursement; and
(iv) has fully complied with (or is in the
process of complying with) the timeline
submitted by the recipient under subparagraph
(A)(ii) of paragraph (5) of subsection (d) and
the other requirements of such paragraph.
(B) Updated certification.--If, at the time when a
recipient of a reimbursement under the Program submits
a certification under subparagraph (A), the recipient
has not fully complied as described in clause (i),
(ii), or (iv) of such subparagraph or has not completed
the permanent removal, replacement, and disposal
described in clause (iii) of such subparagraph, the
Commission shall require the recipient to file an
updated certification when the recipient has fully
complied as described in such clause (i), (ii), or (iv)
or completed such permanent removal, replacement, and
disposal.
(f) Effect of Removal of Equipment or Service From List.--
(1) In general.--If, after the date on which a recipient of
a reimbursement under the Program submits the application for
the reimbursement, any covered communications equipment or
service that is in the network of the recipient as of such date
is removed from the list published under section 2(a), the
recipient may--
(A) return to the Commission any reimbursement
funds received for the removal, replacement, and
disposal of such equipment or service and be released
from any requirement under this section to remove,
replace, or dispose of such equipment or service; or
(B) retain any reimbursement funds received for the
removal, replacement, and disposal of such equipment or
service and remain subject to the requirements of this
section to remove, replace, and dispose of such
equipment or service as if such equipment or service
continued to be on the list published under section
2(a).
(2) Assurances.--In the case of an assurance relating to
the removal, replacement, or disposal of any equipment or
service with respect to which the recipient returns to the
Commission reimbursement funds under paragraph (1)(A), such
assurance may be satisfied by making an assurance that such
funds have been returned.
(g) Rule of Construction Regarding Timing of Reimbursement.--
Nothing in this section shall be construed to prohibit the Commission
from making a reimbursement under the Program to a provider of advanced
communications service before the provider incurs the cost of the
permanent removal, replacement, and disposal of the covered
communications equipment or service for which the application of the
provider has been approved under this section.
(h) Education Efforts.--The Commission shall engage in education
efforts with providers of advanced communications service to--
(1) encourage such providers to participate in the Program;
and
(2) assist such providers in submitting applications for
the Program.
(i) Separate From Federal Universal Service Programs.--The Program
shall be separate from any Federal universal service program
established under section 254 of the Communications Act of 1934 (47
U.S.C. 254).
(j) Authorization of Appropriations.--There is authorized to be
appropriated to the Commission $1,000,000,000 for fiscal year 2020 to
carry out the Program. Such amount is authorized to remain available
through fiscal year 2029. Not more than $5,000,000 of the amounts
appropriated under this subsection may be used for the administrative
costs of carrying out the Program.
SEC. 5. HOLD HARMLESS.
In the case of a person who is a winner of the Connect America Fund
Phase II auction, has not yet been authorized to receive Connect
America Fund Phase II support, and demonstrates an inability to
reasonably meet the build-out and service obligations of such person
under Connect America Fund Phase II without using equipment or services
prohibited under this Act, such person may withdraw the application of
such person for Connect America Fund Phase II support without being
found in default or subject to forfeiture. The Commission may set a
deadline to make such a withdrawal that is not earlier than the date
that is 60 days after the date of the enactment of this Act.
SEC. 6. ENFORCEMENT.
(a) Violations.--A violation of this Act or a regulation
promulgated under this Act shall be treated as a violation of the
Communications Act of 1934 (47 U.S.C. 151 et seq.) or a regulation
promulgated under such Act, respectively. The Commission shall enforce
this Act and the regulations promulgated under this Act in the same
manner, by the same means, and with the same jurisdiction, powers, and
duties as though all applicable terms and provisions of the
Communications Act of 1934 were incorporated into and made a part of
this Act.
(b) Additional Penalties.--
(1) In general.--Except as provided in paragraph (2), in
addition to penalties under the Communications Act of 1934, a
recipient of a reimbursement under the Program found to have
violated section 4, the regulations promulgated under such
section, or the commitments made by the recipient in the
application for the reimbursement--
(A) shall repay to the Commission all reimbursement
funds provided to the recipient under the Program;
(B) shall be barred from further participation in
the Program;
(C) shall be referred to all appropriate law
enforcement agencies or officials for further action
under applicable criminal and civil laws; and
(D) may be barred by the Commission from
participation in other programs of the Commission,
including the Federal universal service support
programs established under section 254 of the
Communications Act of 1934 (47 U.S.C. 254).
(2) Notice and opportunity to cure.--The penalties
described in paragraph (1) shall not apply to a recipient of a
reimbursement under the Program unless--
(A) the Commission provides the recipient with
notice of the violation; and
(B) the recipient fails to cure the violation
within 180 days after the Commission provides such
notice.
(c) Recovery of Funds.--The Commission shall immediately take
action to recover all reimbursement funds awarded to a recipient of a
reimbursement under the Program in any case in which such recipient is
required to repay reimbursement funds under subsection (b)(1)(A).
SEC. 7. DEFINITIONS.
In this Act:
(1) Advanced communications service.--The term ``advanced
communications service'' has the meaning given the term
``advanced telecommunications capability'' in section 706 of
the Telecommunications Act of 1996 (47 U.S.C. 1302).
(2) Commission.--The term ``Commission'' means the Federal
Communications Commission.
(3) Covered communications equipment or service.--The term
``covered communications equipment or service'' means any
communications equipment or service that is on the list
published by the Commission under section 2(a).
(4) Customers.--The term ``customers'' means, with respect
to a provider of advanced communications service--
(A) the customers of such provider; and
(B) the customers of any affiliate (as defined in
section 3 of the Communications Act of 1934 (47 U.S.C.
153)) of such provider.
(5) Executive branch interagency body.--The term
``executive branch interagency body'' means an interagency body
established in the executive branch.
(6) Person.--The term ``person'' means an individual or
entity.
(7) Program.--The term ``Program'' means the Secure and
Trusted Communications Networks Reimbursement Program
established under section 4(a).
(8) Provider of advanced communications service.--The term
``provider of advanced communications service'' means a person
who provides advanced communications service to United States
customers.
(9) Recipient.--The term ``recipient'' means any provider
of advanced communications service the application of which for
a reimbursement under the Program has been approved by the
Commission, regardless of whether the provider has received
reimbursement funds.
(10) Reimbursement funds.--The term ``reimbursement funds''
means any reimbursement received under the Program.
Amend the title so as to read: ``A bill to prohibit certain
Federal subsidies from being used to purchase communications
equipment or services posing national security risks, to
provide for the establishment of a reimbursement program for
the replacement of communications equipment or services posing
such risks, and for other purposes.''.
Union Calendar No. 281
116th CONGRESS
1st Session
H. R. 4998
[Report No. 116-352]
_______________________________________________________________________
A BILL
To prohibit certain Federal loans, grants, and subsidies from being
used to purchase communications equipment or services posing national
security risks, to provide for the establishment of a reimbursement
program for the replacement of communications equipment or services
posing such risks, and for other purposes.
_______________________________________________________________________
December 16, 2019
Reported with amendments, committed to the Committee of the Whole House
on the State of the Union, and ordered to be printed