[Congressional Record Volume 166, Number 117 (Thursday, June 25, 2020)]
[Senate]
[Pages S3392-S3393]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 1877. Mr. COTTON (for himself, Mr. Schumer, Mr. Scott of Florida,
and Mr. Van Hollen) submitted an amendment intended to be proposed by
him to the bill S. 4049, to authorize appropriations for fiscal year
2021 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:
At the appropriate place in title XII, insert the
following:
SEC. 12__. IMPOSITION OF SANCTIONS WITH RESPECT TO ECONOMIC
OR INDUSTRIAL ESPIONAGE BY FOREIGN
TELECOMMUNICATIONS COMPANIES.
(a) In General.--On and after the date that is 30 days
after the date of the enactment of this Act, the President
shall exercise all of the powers granted to the President
under the International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.) to the extent necessary to block and
prohibit all significant transactions in property and
interests in property of a foreign person described in
subsection (b) if such property and interests in property are
in the United States, come within the United States, or are
or come within the possession or control of a United States
person.
(b) Foreign Persons Described.--A foreign person is
described in this subsection if the President determines that
the person, on or after the date of the enactment of this
Act--
(1) produces fifth or future generation telecommunications
technology; and
(2) engages in--
(A) economic or industrial espionage with respect to trade
secrets or proprietary information owned by United States
persons; or
(B) other related illicit activities, including violations
of sanctions imposed by the United States.
(c) Exceptions.--
(1) Exception for intelligence activities.--Sanctions under
this section shall not apply to any activity subject to the
reporting requirements under title V of the National Security
Act of 1947 (50 U.S.C. 3091 et seq.) or any authorized
intelligence activities of the United States.
(2) Exception relating to importation of goods.--
(A) In general.--The authorities and requirements to impose
sanctions authorized under this section shall not include the
authority or requirement to impose sanctions on the
importation of goods.
(B) Good defined.--In this paragraph, the term ``good''
means any article, natural or manmade substance, material,
supply or manufactured product, including inspection and test
equipment, and excluding technical data.
(d) Waiver.--The President may waive the application of
sanctions under this section with respect to a foreign person
for renewable periods of not more than 90 days each if the
President determines and reports to Congress that such a
waiver is vital to the national security interests of the
United States.
(e) Implementation; Penalties.--
(1) Implementation.--The President may exercise the
authorities provided to the President under sections 203 and
205 of the International Emergency Economic Powers Act (50
U.S.C. 1702 and 1704) to the extent necessary to carry out
this section.
(2) Penalties.--A person that violates, attempts to
violate, conspires to violate, or causes a violation of
subsection (a) or any regulation, license, or order issued to
carry out that subsection shall be subject to the penalties
set forth in subsections (b) and (c) of section 206 of the
International Emergency Economic Powers Act (50 U.S.C. 1705)
to the same extent as a person that commits an unlawful act
described in subsection (a) of that section.
(f) Definitions.--
(1) In general.--In this section:
(A) Economic or industrial espionage.--The term ``economic
or industrial espionage'' means--
(i) stealing a trade secret or proprietary information or
appropriating, taking, carrying away, or concealing, or by
fraud, artifice, or deception obtaining, a trade secret or
proprietary information without the authorization of the
owner of the trade secret or proprietary information;
(ii) copying, duplicating, downloading, uploading,
destroying, transmitting, delivering, sending, communicating,
or conveying a trade secret or proprietary information
without the authorization of the owner of the trade secret or
proprietary information; or
(iii) knowingly receiving, buying, or possessing a trade
secret or proprietary information that has been stolen or
appropriated, obtained, or converted without the
authorization of the owner of the trade secret or proprietary
information.
(B) Fifth or future generation telecommunications
technology.--The term ``fifth or future generation
telecommunications technology'' means telecommunications
technology that conforms to the technical standards followed
by the telecommunications industry for telecommunications
technology that is commonly known in the industry as fifth
generation or future generation technology.
[[Page S3393]]
(C) Foreign person.--The term ``foreign person'' means any
person that is not a United States person.
(D) Knowingly.--The term ``knowingly'', with respect to
conduct, a circumstance, or a result, means that a person has
actual knowledge, or should have known, of the conduct, the
circumstance, or the result.
(E) Person.--The term ``person'' means an individual or
entity.
(F) Proprietary information.--The term ``proprietary
information'' has the meaning given that term in section
1637(d) of the Carl Levin and Howard P. ``Buck'' McKeon
National Defense Authorization Act for Fiscal Year 2015 (50
U.S.C. 1708(d)).
(G) Third and fourth generation telecommunications
networks.--The term ``third and fourth generation
telecommunications networks'' means telecommunications
networks that conform to the technical standards followed by
the telecommunications industry for telecommunications
networks that are commonly known in the industry as third or
fourth generation networks.
(H) Trade secret.--The term ``trade secret'' has the
meaning given that term in section 1839 of title 18, United
States Code.
(I) United states person.--The term ``United States
person'' means--
(i) a United States citizen or an alien lawfully admitted
for permanent residence to the United States; or
(ii) an entity organized under the laws of the United
States or any jurisdiction within the United States,
including a foreign branch of such an entity.
(2) Determination of significance.--For the purposes of
this section, in determining if transactions are significant,
the President may consider the totality of the facts and
circumstances, including factors similar to the factors set
forth in section 561.404 of title 31, Code of Federal
Regulations (or any corresponding similar regulation or
ruling).
(3) Rule of construction.--For purposes of this section, a
transaction shall not be construed to include--
(A) participation in an international standards-setting
body or the activities of such a body; or
(B) a transaction involving existing third or fourth
generation telecommunications networks.
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