United States 5G Leadership Act of 2019

II 116TH CONGRESS 1ST SESSION S. 1625 To promote the deployment of commercial fifth-generation mobile networks and the sharing of information with communications providers in the United States regarding security risks to the networks of those providers, and for other purposes. IN THE SENATE OF THE UNITED STATES MAY 22, 2019 Mr. WICKER (for himself, Mr. COTTON, Mr. WARNER, and Mr. MARKEY) in- troduced the following bill; which was read twice and referred to the Com- mittee on Commerce, Science, and Transportation A BILL To promote the deployment of commercial fifth-generation mobile networks and the sharing of information with communications providers in the United States regarding security risks to the networks of those providers, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘United States 5G 4 Leadership Act of 2019’’. 5 SEC. 2. DEFINITIONS. 6 In this Act: 7 VerDate Sep 11 2014 03:37 Jun 01, 2019 Jkt 034408 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1625.IS S1625 pbinns on DSK79D2C42PROD with BILLS 2 •S 1625 IS (1) 3GPP.—The term ‘‘3GPP’’ means the 1 Third Generation Partnership Project. 2 (2) 5G NETWORK.—The term ‘‘5G network’’ 3 means a fifth-generation mobile network as de- 4 scribed by 3GPP Release 15 or higher. 5 (3) APPROPRIATE CONGRESSIONAL COMMIT- 6 TEES.—The term ‘‘appropriate congressional com- 7 mittees’’ means— 8 (A) the Committee on Commerce, Science, 9 and Transportation of the Senate; 10 (B) the Committee on Armed Services of 11 the Senate; 12 (C) the Select Committee on Intelligence of 13 the Senate; 14 (D) the Committee on Homeland Security 15 and Governmental Affairs of the Senate; 16 (E) the Committee on Energy and Com- 17 merce of the House of Representatives; 18 (F) the Committee on Armed Services of 19 the House of Representatives; 20 (G) the Permanent Select Committee on 21 Intelligence of the House of Representatives; 22 and 23 (H) the Committee on Homeland Security 24 of the House of Representatives. 25 VerDate Sep 11 2014 03:37 Jun 01, 2019 Jkt 034408 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1625.IS S1625 pbinns on DSK79D2C42PROD with BILLS 3 •S 1625 IS (4) APPROPRIATE NATIONAL SECURITY AGEN- 1 CY.—The term ‘‘appropriate national security agen- 2 cy’’ means— 3 (A) the Department of Homeland Security; 4 (B) the Department of Defense; 5 (C) the Office of the Director of National 6 Intelligence; 7 (D) the National Security Agency; and 8 (E) the Federal Bureau of Investigation. 9 (5) CLOUD COMPUTING.—The term ‘‘cloud 10 computing’’ has the meaning given the term in Spe- 11 cial Publication 800–145 of the National Institute of 12 Standards and Technology, entitled ‘‘The NIST Def- 13 inition of Cloud Computing’’, published September 14 2011, or any successor publication. 15 (6) COMMISSION.—The term ‘‘Commission’’ 16 means the Federal Communications Commission. 17 (7) COMMUNICATIONS NETWORK.—The term 18 ‘‘communications network’’ means— 19 (A) a system enabling the transmission, 20 between or among points specified by the user, 21 of information of the user’s choosing; 22 (B) cloud computing resources; and 23 (C) a network or system used to access 24 cloud computing resources. 25 VerDate Sep 11 2014 03:37 Jun 01, 2019 Jkt 034408 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1625.IS S1625 pbinns on DSK79D2C42PROD with BILLS 4 •S 1625 IS (8) COMMUNICATIONS PROVIDER.—The term 1 ‘‘communications provider’’— 2 (A) means any provider of interstate or 3 international communication by wire or radio; 4 and 5 (B) includes a telecommunications carrier. 6 (9) COVERED COMPANY.—The term ‘‘covered 7 company’’ means— 8 (A) Huawei Technologies Co., Limited; 9 (B) Zhongxing Telecommunications Equip- 10 ment Corporation; 11 (C) a subsidiary or affiliate of a company 12 described in subparagraph (A) or (B); 13 (D) any communications provider domi- 14 ciled in the People’s Republic of China (or a 15 subsidiary or affiliate of such a company), ex- 16 cluding a communications provider that— 17 (i) is domiciled in the People’s Repub- 18 lic of China; and 19 (ii) is a subsidiary of a company that 20 is not domiciled in the People’s Republic of 21 China; and 22 (E) any entity posing a national security 23 risk. 24 VerDate Sep 11 2014 03:37 Jun 01, 2019 Jkt 034408 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1625.IS S1625 pbinns on DSK79D2C42PROD with BILLS 5 •S 1625 IS (10) ENTITY POSING A NATIONAL SECURITY 1 RISK.—The term ‘‘entity posing a national security 2 risk’’ means an entity that the Commission deter- 3 mines poses a national security risk under section 4 4(c). 5 (11) SUPPLY CHAIN SECURITY TRUST FUND.— 6 The term ‘‘Supply Chain Security Trust Fund’’ 7 means the trust fund established under section 6. 8 (12) TELECOMMUNICATIONS CARRIER.—The 9 term ‘‘telecommunications carrier’’ has the meaning 10 given the term in section 3 of the Communications 11 Act of 1934 (47 U.S.C. 153). 12 (13) TRUSTED SUPPLIER.—The term ‘‘trusted 13 supplier’’ means a supplier of equipment and serv- 14 ices for communications networks that the Secretary 15 of Homeland Security determines would be appro- 16 priate to further the purposes of section 8. 17 (14) UNITED STATES COMMUNICATIONS PRO- 18 VIDER.—The term ‘‘United States communications 19 provider’’— 20 (A) means a communications provider 21 domiciled in the United States; and 22 (B) does not include a covered company. 23 VerDate Sep 11 2014 03:37 Jun 01, 2019 Jkt 034408 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1625.IS S1625 pbinns on DSK79D2C42PROD with BILLS 6 •S 1625 IS SEC. 3. POLICY STATEMENT ON 5G NETWORK DEPLOYMENT 1 AND SECURITY. 2 It is the policy of the United States— 3 (1) to promote the timely deployment of robust, 4 secure, and resilient commercial 5G networks; 5 (2) to promote the development of the informa- 6 tion and communications technology industry of the 7 United States in order to supply technology and 8 equipment to deploy commercial 5G networks; 9 (3) that the Federal Government should— 10 (A) support but not build or operate 5G 11 networks; and 12 (B) identify additional capacity in the low- 13 bands, mid-bands, and high-bands of the elec- 14 tromagnetic spectrum for licensed and unli- 15 censed use, emphasizing harmonization with 16 global allocations; and 17 (4) that communications networks deployed in 18 the United States should not incorporate any hard- 19 ware or software produced by, or any services of- 20 fered by— 21 (A) a covered company; or 22 (B) any other company that is subject to 23 extrajudicial direction from a foreign govern- 24 ment. 25 VerDate Sep 11 2014 03:37 Jun 01, 2019 Jkt 034408 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1625.IS S1625 pbinns on DSK79D2C42PROD with BILLS 7 •S 1625 IS SEC. 4. PROHIBITION OF COMMUNICATIONS EQUIPMENT 1 AND SERVICES POSING NATIONAL SECURITY 2 RISKS. 3 (a) PROHIBITION.—Except as provided in subsection 4 (b)(2), funds from a universal service support program es- 5 tablished under section 254 of the Communications Act 6 of 1934 (47 U.S.C. 254) may not be used to purchase 7 communications equipment and services from— 8 (1) a covered company; or 9 (2) any other company that is subject to 10 extrajudicial direction from a foreign government. 11 (b) COMPLETION OF PENDING PROCEEDING.— 12 (1) IN GENERAL.—Not later than 90 days after 13 the date of enactment of this Act, the Commission 14 shall adopt a Report and Order in the proceeding 15 captioned ‘‘Protecting Against National Security 16 Threats to the Communications Supply Chain 17 Through FCC Programs’’ (WC Docket No. 18–89). 18 (2) EXEMPTIONS.—In implementing paragraph 19 (1), the Commission may exempt types or categories 20 of equipment, services, or components thereof that 21 do not pose an undue risk of sabotage to or subver- 22 sion of the design, integrity, manufacturing, produc- 23 tion, distribution, installation, operation, or mainte- 24 nance of communications networks in the United 25 States. 26 VerDate Sep 11 2014 03:37 Jun 01, 2019 Jkt 034408 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1625.IS S1625 pbinns on DSK79D2C42PROD with BILLS 8 •S 1625 IS (c) ENTITIES POSING A NATIONAL SECURITY 1 RISK.—In determining, for purposes of subparagraph (E) 2 of the definition of the term ‘‘covered company’’, which 3 entities are entities posing a national security risk, the 4 Commission shall rely solely upon a determination made— 5 (1) by— 6 (A) an appropriate national security agen- 7 cy; 8 (B) an interagency body that includes ap- 9 propriate national security expertise, including 10 the Federal Acquisition Security Council estab- 11 lished under section 1322 of title 41, United 12 States Code; or 13 (C) Congress; or 14 (2) under Executive Order 13873 (84 Fed. Reg. 15 22689; relating to securing the information and 16 communications technology and services supply 17 chain) or any implementing regulations. 18 SEC. 5. EQUIPMENT REPLACEMENT GRANTS. 19 (a) IN GENERAL.—The Commission shall make 20 grants to United States communications providers using 21 amounts— 22 (1) made available from the Supply Chain Secu- 23 rity Trust Fund; or 24 VerDate Sep 11 2014 03:37 Jun 01, 2019 Jkt 034408 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1625.IS S1625 pbinns on DSK79D2C42PROD with BILLS 9 •S 1625 IS (2) borrowed under subsection (d) of this sec- 1 tion. 2 (b) EQUIPMENT TO BE REPLACED.—Amounts from 3 a grant under subsection (a)— 4 (1) may be used only to replace communications 5 equipment and services obtained from a covered 6 company or another entity posing a national security 7 risk, under such terms and conditions as the Com- 8 mission shall establish; and 9 (2) may not be used to replace any equipment 10 purchased on or after August 14, 2018. 11 (c) GRANT ELIGIBILITY.— 12 (1) IN GENERAL.—A communications provider 13 with not more than 6,000,000 customers shall be eli- 14 gible to receive a grant under subsection (a). 15 (2) DEFINITION OF CUSTOMER.—For purposes 16 of paragraph (1), the term ‘‘customer’’, with respect 17 to a communications provider, means the United 18 States customers of— 19 (A) the communications provider; or 20 (B) any parent, subsidiary, or affiliate of 21 the communications provider. 22 (d) BORROWING AUTHORITY.— 23 (1) IN GENERAL.—Prior to the deposit of funds 24 into the Supply Chain Security Trust Fund, the 25 VerDate Sep 11 2014 03:37 Jun 01, 2019 Jkt 034408 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S1625.IS S1625 pbinns on DSK79D2C42PROD with BILLS 10 •S 1625 IS Commission may borrow from the Treasury such 1 sums as may be necessary, but not to exceed the 2 amount specified in section 6(b)(1), to implement 3 this section. 4 (2) REIMBURSEMENT.—The Commission shall 5 reimburse the Treasury for any amounts borrowed 6 under paragraph (1), without interest, from funds 7 deposited into the Supply Chain Security Trust 8 Fund. 9 SEC. 6. SUPPLY CHAIN SECURITY TRUST FUND. 10 (a) ESTABLISHMENT.—There is established in the 11 Treasury of the United States a trust fund to be known 12 as the ‘‘Supply Chain Security Trust Fund’’. 13 (b) USE OF FUND.—As amounts are deposited into 14 the Supply Chain Security Trust Fund, such amounts 15 shall be used to make the following deposits or payments: 16 (1) REPAYMENT OF AMOUNT BORROWED FOR 17 EQUIPMENT REPLACEMENT.—An amount not to ex- 18 ceed $700,000,000 shall be available to the Commis- 19 sion to reimburse the general fund of the Treasury 20 for any amounts borrowed under section 5. 21 (2) EQUIPMENT REPLACEMENT.— 22 $700,000,000, reduced by the amount borrowed 23 under section 5, shall be available to the Commission 24 to carry out that section. 25 VerDate Sep 11 2014 03:37 Jun 01, 2019 Jkt 034408 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S1625.IS S1625 pbinns on DSK79D2C42PROD with BILLS 11 •S 1625 IS (c) DEPOSITS INTO FUND.—Section 309(j)(8) of the 1 Communications Act of 1934 (47 U.S.C. 309(j)(8)) is 2 amended— 3 (1) in subparagraph (A), by striking ‘‘and (G)’’ 4 and inserting ‘‘(G), and (H)’’; 5 (2) in subparagraph (C)(i), by striking ‘‘and 6 (G)’’ and inserting ‘‘(G), and (H)’’; and 7 (3) by adding at the end the following: 8 ‘‘(H) CERTAIN PROCEEDS DESIGNATED 9 FOR SUPPLY CHAIN SECURITY TRUST FUND.— 10 Notwithstanding subparagraph (A) and except 11 as provided in subparagraph (B), the proceeds 12 (including deposits and upfront payments from 13 successful bidders), not to exceed 14 $700,000,000, from the use of a system of com- 15 petitive bidding under this subsection shall be 16 deposited in the Supply Chain Security Trust 17 Fund established under section 6 of the United 18 States 5G Leadership Act of 2019.’’. 19 SEC. 7. REPORT ON DEPLOYMENT AND AVAILABILITY OF 20 5G NETWORKS. 21 (a) IN GENERAL.—Not later than 180 days after the 22 date of enactment of this Act, and biennially thereafter, 23 the Assistant Secretary of Commerce for Communications 24 and Information, in consultation with the Secretary of 25 VerDate Sep 11 2014 03:37 Jun 01, 2019 Jkt 034408 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S1625.IS S1625 pbinns on DSK79D2C42PROD with BILLS 12 •S 1625 IS Homeland Security, the Chairman of the Commission, the 1 Secretary of Defense, and the Director of National Intel- 2 ligence, after providing notice and an opportunity for pub- 3 lic comment, shall submit to the appropriate congressional 4 committees a report that identifies— 5 (1) steps to ensure the secure deployment and 6 availability of 5G networks, with a particular focus 7 on the threat posed by equipment and services pro- 8 duced or provided by covered companies; and 9 (2) any new statutory authority required to en- 10 sure the security of 5G networks in the United 11 States. 12 SEC. 8. INFORMATION SHARING WITH COMMUNICATIONS 13 PROVIDERS AND TRUSTED SUPPLIERS. 14 (a) ESTABLISHMENT OF JOINT PROGRAM.—Not 15 later than 90 days after the date of enactment of this Act, 16 the Secretary of Homeland Security, in consultation with 17 the Director of National Intelligence, the Director of the 18 Federal Bureau of Investigation, the Secretary of Com- 19 merce, and the Chairman of the Commission, shall estab- 20 lish a joint program to share information regarding secu- 21 rity, risks, and vulnerabilities with United States commu- 22 nication providers and trusted suppliers. 23 (b) DUTIES OF PROGRAM.—The program established 24 under subsection (a) shall— 25 VerDate Sep 11 2014 03:37 Jun 01, 2019 Jkt 034408 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S1625.IS S1625 pbinns on DSK79D2C42PROD with BILLS 13 •S 1625 IS (1) conduct regular briefings and other events 1 to share [Text truncated for display. Full text available on Congress.gov.]