[Congressional Record Volume 164, Number 94 (Thursday, June 7, 2018)]
[Senate]
[Page S3362]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2514. Mr. COTTON (for himself, Mr. Van Hollen, Mr. Schumer, Mr. 
Rubio, Mr. Blumenthal, Ms. Collins, and Mr. Nelson) submitted an 
amendment intended to be proposed to amendment SA 2282 submitted by Mr. 
Inhofe (for himself and Mr. McCain) and intended to be proposed to the 
bill H.R. 5515, to authorize appropriations for fiscal year 2019 for 
military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       Strike section 1727 and insert the following:

     SEC. 1727. PROHIBITION ON MODIFICATION OF CIVIL PENALTIES 
                   UNDER EXPORT CONTROL AND SANCTIONS LAWS AND 
                   PROHIBITION ON CERTAIN TELECOMMUNICATIONS 
                   EQUIPMENT.

       (a) Prohibition on Modification of Penalties.--
       (1) In general.--Notwithstanding any other provision of 
     law, no Federal official may modify any penalty, including a 
     penalty imposed pursuant to a denial order, implemented by 
     the Government of the United States with respect to a Chinese 
     telecommunications company pursuant to a determination that 
     the company has violated an export control or sanctions law 
     of the United States until the date that is 30 days after the 
     President certifies to the appropriate congressional 
     committees that the company--
       (A) has not, for a period of one year, conducted activities 
     in violation of the laws of the United States; and
       (B) is fully cooperating with investigations into the 
     activities of the company conducted by the Government of the 
     United States, if any.
       (2) Reinstatement of penalties or suspended order.--
       (A) In general.--If, before the date of the enactment of 
     this Act, any penalty imposed pursuant to the order of the 
     Acting Assistant Secretary of Commerce for Export Enforcement 
     entitled ``Order Activating Suspended Denial Order Relating 
     to Zhongxing Telecommunications Equipment Corporation and ZTE 
     Kangxun Telecommunications Ltd.'' (83 Fed. Reg. 17644), and 
     dated April 15, 2018, is reduced or eliminated, or that order 
     is suspended, on such date of enactment, that penalty shall 
     be reinstated to the penalty in place before such reduction 
     or elimination, or that order shall be reinstated, as the 
     case may be.
       (B) Additional modifications.--Any modification to a 
     penalty imposed pursuant to the order described in 
     subparagraph (A) on or after the date of the enactment of 
     this Act shall be subject to the requirements of paragraph 
     (1).
       (b) Prohibition on Use or Procurement.--The head of an 
     executive agency may not--
       (1) procure or obtain or extend or renew a contract to 
     procure or obtain any equipment, system, or service that uses 
     covered telecommunications equipment or services as a 
     substantial or essential component of any system, or as 
     critical technology as part of any system; or
       (2) enter into a contract (or extend or renew a contract) 
     with an entity that uses any equipment, system, or service 
     that uses covered telecommunications equipment or services as 
     a substantial or essential component of any system, or as 
     critical technology as part of any system.
       (c) Prohibition on Loan and Grant Funds.--The head of an 
     executive agency may not obligate or expend loan or grant 
     funds to procure or obtain, extend or renew a contract to 
     procure or obtain, or enter into a contract (or extend or 
     renew a contract) to procure or obtain the equipment, 
     services, or systems described in subsection (b).
       (d) Effective Dates.--The prohibitions under subsection 
     (b)(1) and subsection (c) shall take effect 180 days after 
     the date of the enactment of this Act and the prohibition 
     under subsection (b)(2) shall take effect three years after 
     the date of the enactment of this Act.
       (e) Rule of Construction.--Nothing in subsection (b) or (c) 
     shall be construed to--
       (1) prohibit the head of an executive agency from procuring 
     with an entity to provide a service that connects to the 
     facilities of a third-party, such as backhaul, roaming, or 
     interconnection arrangements; or
       (2) cover telecommunications equipment that cannot route or 
     redirect user data traffic or permit visibility into any user 
     data or packets that such equipment transmits or otherwise 
     handles.
       (f) Definitions.--In this section:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees' '' means--
       (A) the Committee on Banking, Housing, and Urban Affairs 
     and the Committee on Foreign Relations of the Senate; and
       (B) the Committee on Financial Services and the Committee 
     on Foreign Affairs of the House of Representatives.
       (2) Covered foreign country.--The term ``covered foreign 
     country'' means the People's Republic of China.
       (3) Covered telecommunications equipment or services.--The 
     term ``covered telecommunications equipment or services'' 
     means any of the following:
       (A) Telecommunications equipment produced by Huawei 
     Technologies Company or ZTE Corporation (or any subsidiary or 
     affiliate of such entities).
       (B) Telecommunications services provided by such entities 
     or using such equipment.
       (C) Telecommunications equipment or services produced or 
     provided by an entity that the Secretary of Defense, in 
     consultation with the Director of the National Intelligence 
     or the Director of the Federal Bureau of Investigation, 
     reasonably believes to be an entity owned or controlled by, 
     or otherwise connected to, the government of a covered 
     foreign country.
       (4) Executive agency.--The term ``executive agency'' has 
     the meaning given the term in section 133 of title 41, United 
     States Code.
       (g) Treatment of Provision Relating to Prohibition on 
     Certain Telecommunications Equipment.--Section 891, relating 
     to a prohibition on certain telecommunications equipment, 
     shall have no force or effect.
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