[House Report 117-148]
[From the U.S. Government Publishing Office]


117th Congress    }                                      {     Report
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                      {    117-148

======================================================================



 
                      SECURE EQUIPMENT ACT OF 2021

                                _______
                                

October 19, 2021.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Pallone, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 3919]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 3919) to ensure that the Federal Communications 
Commission does not approve radio frequency devices that pose a 
national security risk, having considered the same, reports 
favorably thereon with amendments and recommends that the bill 
as amended do pass.

                                CONTENTS

                                                                    Page
   I. Purpose and Summary............................................. 2
  II. Background and Need for the Legislation.........................  2
 III. Committee Hearings.............................................. 3
  IV. Committee Consideration......................................... 3
   V. Committee Votes................................................. 3
  VI. Oversight Findings.............................................. 4
 VII. New Budget Authority, Entitlement Authority, and Tax Expenditure 4
VIII. Federal Mandates Statement...................................... 4
  IX. Statement of General Performance Goals and Objectives........... 4
   X. Duplication of Federal Programs................................. 4
  XI. Committee Cost Estimate......................................... 4
 XII. Earmarks, Limited Tax Benefits, and Limited Tariff Benefits..... 5
XIII. Advisory Committee Statement.................................... 5
 XIV. Applicability to Legislative Branch............................. 5
  XV. Section-by-Section Analysis of the Legislation.................. 5
 XVI. Changes in Existing Law Made by the Bill, as Reported........... 5

    The amendments are as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Secure Equipment Act of 2021''.

SEC. 2. UPDATES TO EQUIPMENT AUTHORIZATION PROCESS OF FEDERAL 
                    COMMUNICATIONS COMMISSION.

  (a) Rulemaking.--
          (1) In general.--Not later than 1 year after the date of the 
        enactment of this Act, the Commission shall adopt rules in the 
        proceeding initiated in the Notice of Proposed Rulemaking in 
        the matter of Protecting Against National Security Threats to 
        the Communications Supply Chain through the Equipment 
        Authorization Program (ET Docket No. 21-232; FCC 21-73; adopted 
        June 17, 2021), in accordance with paragraph (2), to update the 
        equipment authorization procedures of the Commission.
          (2) Updates required.--In the rules adopted under paragraph 
        (1), the Commission shall clarify that the Commission will no 
        longer review or approve any application for equipment 
        authorization for equipment that is on the list of covered 
        communications equipment or services published by the 
        Commission under section 2(a) of the Secure and Trusted 
        Communications Networks Act of 2019 (47 U.S.C. 1601(a)).
          (3) Applicability.--
                  (A) In general.--In the rules adopted under paragraph 
                (1), the Commission may not provide for review or 
                revocation of any equipment authorization granted 
                before the date on which such rules are adopted on the 
                basis of the equipment being on the list described in 
                paragraph (2).
                  (B) Rule of construction.--Nothing in this section 
                may be construed to prohibit the Commission, other than 
                in the rules adopted under paragraph (1), from--
                          (i) examining the necessity of review or 
                        revocation of any equipment authorization on 
                        the basis of the equipment being on the list 
                        described in paragraph (2); or
                          (ii) adopting rules providing for any such 
                        review or revocation.
  (b) Definition.--In this section, the term ``Commission'' means the 
Federal Communications Commission.

    Amend the title so as to read:
    A bill to ensure that the Federal Communications Commission 
prohibits authorization of radio frequency devices that pose a 
national security risk.

                         I. PURPOSE AND SUMMARY

    H.R. 3919, the ``Secure Equipment Act of 2021,'' requires 
the Federal Communications Commission (FCC or Commission) to 
adopt rules to update the equipment authorization procedures of 
the Commission to ensure only trusted radio frequency devices 
are authorized for use in the United States.

                II. BACKGROUND AND NEED FOR LEGISLATION

    In 2019, Congress passed the Secure and Trusted 
Communications Networks Act, which took steps to remove harmful 
equipment in our nation's communications networks by 
instructing the FCC to publish a list of communications 
equipment and services that pose a national security threat. 
The law prohibits the use of certain federal funds provided by 
the Commission to purchase equipment and services from 
companies on that list. The legislation also authorized, and 
Congress subsequently appropriated, funding for certain United 
States telecommunications carriers to remove and replace 
prohibited equipment and services from their networks.
    While the Secure and Trusted Communications Networks Act 
took important steps to remove compromised equipment from 
American networks, the law did not cover equipment that is 
purchased using private funds (i.e., without the use of federal 
funds provided by the Commission) and poses a similar national 
security threat as is conceived under the Act. There is a need 
to address the national security risks posed by such privately 
purchased equipment that transmits over radio frequencies, 
which federal law requires to be licensed by the FCC.

                        III. COMMITTEE HEARINGS

    For the purposes of clause 3(c) of rule XIII of the Rules 
of the House of Representatives, the following hearings were 
used to develop or consider H.R. 3919:
    The Subcommittee on Communications and Technology held a 
hearing on April 21, 2021, entitled ``Leading the Wireless 
Future: Securing American Network Technology.'' The 
Subcommittee received testimony from the following witnesses:
           John Baker, Senior Vice President, Business 
        Development, Mavenir;
           John Mezzalingua, Chief Executive Officer, 
        JMA Wireless;
           Tim Donovan, SVP, Legislative Affairs, 
        Competitive Carriers Association;
           Tareq Amin, EVP and Group Chief Technology 
        Officer, Rakuten Mobile; and
           Diane Rinaldo, Executive Director, Open RAN 
        Policy Coalition.
    The Subcommittee on Communications and Technology held a 
legislative hearing on June 30, 2021, entitled ``A Safe 
Wireless Future: Securing our Networks and Supply Chains.'' The 
Subcommittee received testimony from the following witnesses:
           Dileep Srihari, Senior Policy Counsel, 
        Access Partnership;
           Dean Brenner, SVP, Spectrum Strategy & Tech 
        Policy, Qualcomm Incorporated;
           Jason Boswell, Head of Security, Network 
        Product Solutions, N.A., Ericsson; and
           Clete Johnson, Senior Fellow, Strategic 
        Technologies Program, Center for Strategic and 
        International Studies.

                      IV. COMMITTEE CONSIDERATION

    Representatives Steve Scalise (R-LA) and Anna G. Eshoo (D-
CA) introduced H.R. 3919, the ``Secure Equipment Act of 2021,'' 
on June 15, 2021, which was referred to the Committee on Energy 
and Commerce. Subsequently, on June 16, 2021, H.R. 3919 was 
referred to the Subcommittee on Communications and Technology. 
A legislative hearing was held on the bill on June 30, 2021.
    On July 20, 2021, the Subcommittee on Communications and 
Technology was discharged from further consideration of the 
bill. On July 21, 2021, the full Committee met in open markup 
session, pursuant to notice, to consider H.R. 3919 and 23 other 
bills. During consideration of the bill, an amendment in the 
nature of a substitute (AINS) offered by Representative Scalise 
was agreed to by a voice vote. Upon conclusion of consideration 
of the bill, the full Committee agreed to a motion on final 
passage offered by Representative Pallone (D-NJ), Chairman of 
the Committee, to order H.R. 3919 reported favorably to the 
House, amended, by a voice vote.

                           V. COMMITTEE VOTES

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list each record vote 
on the motion to report legislation and amendments thereto. The 
Committee advises that there were no record votes taken on H.R. 
3919, including a motion by Mr. Pallone ordering H.R. 3919 
favorably reported to the House, amended.

                         VI. OVERSIGHT FINDINGS

    Pursuant to clause 3(c)(1) of rule XIII and clause 2(b)(1) 
of rule X of the Rules of the House of Representatives, the 
oversight findings and recommendations of the Committee are 
reflected in the descriptive portion of the report.

 VII. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES

    Pursuant to 3(c)(2) of rule XIII of the Rules of the House 
of Representatives, the Committee adopts as its own the 
estimate of new budget authority, entitlement authority, or tax 
expenditures or revenues contained in the cost estimate 
prepared by the Director of the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1974.
    The Committee has requested but not received from the 
Director of the Congressional Budget Office a statement as to 
whether this bill contains any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.

                    VIII. FEDERAL MANDATES STATEMENT

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

       IX. STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    Pursuant to clause 3(c)(4) of rule XIII, the general 
performance goal or objective of this legislation is to 
prohibit the Federal Communications Commission from reviewing 
applications or issuing new radio frequency equipment licenses 
to companies on the FCC's list of covered communications 
equipment or services published pursuant to section 2(a) of the 
Secure and Trusted Communications Networks Act.

                   X. DUPLICATION OF FEDERAL PROGRAMS

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 3919 is known to be duplicative of another Federal 
program, including any program that was included in a report to 
Congress pursuant to section 21 of Public Law 111-139 or the 
most recent Catalog of Federal Domestic Assistance.

                      XI. COMMITTEE COST ESTIMATE

    Pursuant to clause 3(d)(1) of rule XIII, the Committee 
adopts as its own the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974.

    XII. EARMARKS, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS

    Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 3919 contains no earmarks, limited 
tax benefits, or limited tariff benefits.

                   XIII. ADVISORY COMMITTEE STATEMENT

    No advisory committee within the meaning of section 5(b) of 
the Federal Advisory Committee Act was created by this 
legislation.

                XIV. APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

           XV. SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title

    Section 1 designates that the short title may be cited as 
the ``Secure Equipment Act of 2021.''

Sec. 2. Updates to equipment authorization process of Federal 
        Communications Commission

    This section requires the Federal Communications Commission 
to conclude a rulemaking proceeding to update its equipment 
authorization procedures and clarify that the Commission will 
no longer review or approve any application for equipment 
authorization for equipment that appears on the list of covered 
communications equipment or services published by the 
Commission under section 2(a) of the Secure and Trusted 
Communications Networks Act of 2019. The legislation prohibits 
the FCC from revoking previously issued authorizations as part 
of the relevant rulemaking proceeding, but does not prohibit 
the FCC from acting in a separate proceeding to take such 
action.

       XVI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    There are no changes to existing law made by the bill H.R. 
3919.

                                  [all]