Defending America’s 5G Future Act

I 116TH CONGRESS 1ST SESSION H. R. 3759 To prohibit United States persons from dealing in certain information and communications technology or services from foreign adversaries and to require the approval of Congress to terminate certain export controls in effect with respect to Huawei Technologies Co. Ltd., and for other purposes. IN THE HOUSE OF REPRESENTATIVES JULY 15, 2019 Mr. GALLAGHER (for himself, Mr. PANETTA, Ms. CHENEY, and Mr. GALLEGO) introduced the following bill; which was referred to the Com- mittee on Foreign Affairs, and in addition to the Committees on Rules, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To prohibit United States persons from dealing in certain information and communications technology or services from foreign adversaries and to require the approval of Congress to terminate certain export controls in effect with respect to Huawei Technologies Co. Ltd., 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 VerDate Sep 11 2014 23:14 Jul 18, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3759.IH H3759 kjohnson on DSK79L0C42 with BILLS 2 •HR 3759 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Defending America’s 2 5G Future Act’’. 3 SEC. 2. DEFINITIONS. 4 In this Act: 5 (1) EXPORT ADMINISTRATION REGULATIONS.— 6 The term ‘‘Export Administration Regulations’’ 7 means subchapter C of chapter VII of title 15, Code 8 of Federal Regulations. 9 (2) FOREIGN ADVERSARY.—The term ‘‘foreign 10 adversary’’ means any foreign government or foreign 11 person engaged in a long-term pattern or serious in- 12 stances of conduct significantly adverse to the na- 13 tional security or foreign policy interests of the 14 United States or security and safety of United 15 States persons. 16 (3) FOREIGN PERSON.—The term ‘‘foreign per- 17 son’’ means any person that is not a United States 18 person. 19 (4) INFORMATION AND COMMUNICATIONS 20 TECHNOLOGY OR SERVICES.—The term ‘‘informa- 21 tion and communications technology or services’’ 22 means any hardware, software, or other product or 23 service primarily intended to fulfill or enable the 24 function of information or data processing, storage, 25 VerDate Sep 11 2014 23:14 Jul 18, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3759.IH H3759 kjohnson on DSK79L0C42 with BILLS 3 •HR 3759 IH retrieval, or communication by electronic means, in- 1 cluding transmission, storage, and display. 2 (5) UNITED STATES PERSON.—The term 3 ‘‘United States person’’ means— 4 (A) any United States citizen or alien law- 5 fully admitted for permanent residence in the 6 United States; 7 (B) any entity organized under the laws of 8 the United States or any jurisdiction within the 9 United States, including a foreign branch of 10 such an entity; or 11 (C) any person in the United States. 12 SEC. 3. PROHIBITION ON DEALING IN INFORMATION AND 13 COMMUNICATIONS TECHNOLOGY OR SERV- 14 ICES FROM FOREIGN ADVERSARIES. 15 (a) IN GENERAL.—No United States person may en- 16 gage in a transaction for the acquisition, importation, 17 transfer, installation, dealing in, or use of any information 18 and communications technology or service by a United 19 States person, or with respect to any property subject to 20 the jurisdiction of the United States, if— 21 (1) the transaction involves any property in 22 which any foreign country or foreign person has any 23 interest (including through an interest in a contract 24 for the provision of the technology or service); 25 VerDate Sep 11 2014 23:14 Jul 18, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3759.IH H3759 kjohnson on DSK79L0C42 with BILLS 4 •HR 3759 IH (2) notwithstanding any contract entered into 1 or any license or permit issued before the date of the 2 enactment of this Act, the transaction is initiated or 3 pending on or after such date of enactment; and 4 (3) the Secretary of Commerce, in consultation 5 with the officials specified in subsection (b), deter- 6 mines that— 7 (A) the transaction involves information 8 and communications technology or services de- 9 signed, developed, manufactured, or supplied, 10 by persons owned by, controlled by, or subject 11 to the jurisdiction or direction of a foreign ad- 12 versary; and 13 (B) the transaction— 14 (i) poses an undue risk of sabotage to 15 or subversion of the design, integrity, man- 16 ufacturing, production, distribution, instal- 17 lation, operation, or maintenance of infor- 18 mation and communications technology or 19 services in the United States; 20 (ii) poses an undue risk of cata- 21 strophic effects on the security or resil- 22 iency of United States critical infrastruc- 23 ture or the digital economy of the United 24 States; or 25 VerDate Sep 11 2014 23:14 Jul 18, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3759.IH H3759 kjohnson on DSK79L0C42 with BILLS 5 •HR 3759 IH (iii) otherwise poses an unacceptable 1 risk to the national security or foreign pol- 2 icy interests of the United States or the se- 3 curity and safety of United States persons. 4 (b) OFFICIALS SPECIFIED.—The officials specified in 5 this subsection are the following: 6 (1) The Secretary of the Treasury. 7 (2) The Secretary of State. 8 (3) The Secretary of Defense. 9 (4) The Attorney General. 10 (5) The Secretary of Homeland Security. 11 (6) The United States Trade Representative. 12 (7) The Director of National Intelligence. 13 (8) The Administrator of General Services. 14 (9) The Chairman of the Federal Communica- 15 tions Commission. 16 (10) The heads of such other Federal agencies 17 as the Secretary of Commerce considers appropriate. 18 (c) MITIGATION MEASURES.—The Secretary of Com- 19 merce, in consultation with the officials specified in sub- 20 section (b), as appropriate, may establish or negotiate 21 measures to mitigate concerns that are the basis for a de- 22 termination under subsection (a)(3). Such measures may 23 serve as a precondition to the approval of a transaction 24 VerDate Sep 11 2014 23:14 Jul 18, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3759.IH H3759 kjohnson on DSK79L0C42 with BILLS 6 •HR 3759 IH or of a class of transactions that would otherwise be pro- 1 hibited by subsection (a). 2 (d) REGULATIONS.— 3 (1) IN GENERAL.—Not later than 150 days 4 after the date of the enactment of this Act, the Sec- 5 retary of Commerce, in consultation with the offi- 6 cials specified in subsection (b), shall prescribe regu- 7 lations to carry out this section. 8 (2) INCLUSIONS.—The regulations prescribed 9 under paragraph (1) may include regulations with 10 respect to— 11 (A) determining that countries or persons 12 are foreign adversaries for purposes of sub- 13 section (a)(3)(A); 14 (B) identifying persons owned by, con- 15 trolled by, or subject to the jurisdiction or di- 16 rection of foreign adversaries for purposes of 17 subsection (a)(3)(A); 18 (C) identifying technologies or countries 19 with respect to which transactions involving in- 20 formation and communications technology or 21 services warrant particular scrutiny under sub- 22 section (a); 23 VerDate Sep 11 2014 23:14 Jul 18, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3759.IH H3759 kjohnson on DSK79L0C42 with BILLS 7 •HR 3759 IH (D) establishing procedures to license 1 transactions otherwise prohibited by subsection 2 (a); 3 (E) establishing criteria, consistent with 4 section 1 of this order, by which particular 5 technologies or participants in the market for 6 information and communications technology or 7 services may be recognized as categorically in- 8 cluded in or as categorically excluded from the 9 prohibition under subsection (a); and 10 (F) identifying a mechanism and relevant 11 factors for the negotiation of mitigation meas- 12 ures under subsection (c). 13 (e) IMPLEMENTATION; PENALTIES.— 14 (1) IMPLEMENTATION.—The Secretary of Com- 15 merce may exercise the authorities provided to the 16 President under sections 203 and 205 of the Inter- 17 national Emergency Economic Powers Act (50 18 U.S.C. 1702 and 1704) to the extent necessary to 19 carry out this section. 20 (2) PENALTIES.—A person that violates, at- 21 tempts to violate, conspires to violate, or causes a 22 violation of subsection (a) or any regulation, license, 23 or order issued to carry out that subsection shall be 24 subject to the penalties set forth in subsections (b) 25 VerDate Sep 11 2014 23:14 Jul 18, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3759.IH H3759 kjohnson on DSK79L0C42 with BILLS 8 •HR 3759 IH and (c) of section 206 of the International Emer- 1 gency Economic Powers Act (50 U.S.C. 1705) to the 2 same extent as a person that commits an unlawful 3 act described in subsection (a) of that section. 4 SEC. 4. CONTINUATION IN EFFECT OF EXPORT CONTROLS 5 WITH RESPECT TO HUAWEI TECHNOLOGIES 6 CO. LTD. 7 (a) IN GENERAL.—The Secretary of Commerce may 8 not remove Huawei Technologies Co. Ltd., and its subsidi- 9 aries and affiliates, from the entity list maintained by the 10 Bureau of Industry and Security and set forth in Supple- 11 ment No. 4 to part 744 of the Export Administration Reg- 12 ulations, unless— 13 (1) the Secretary submits to Congress a request 14 for approval of such removal; and 15 (2) there is enacted into law a joint resolution 16 of approval under subsection (b). 17 (b) JOINT RESOLUTIONS OF APPROVAL.— 18 (1) JOINT RESOLUTION OF APPROVAL DE- 19 FINED.—In this subsection, the term ‘‘joint resolu- 20 tion of approval’’ means a joint resolution of either 21 House of Congress the sole matter after the resolv- 22 ing clause of which is as follows: ‘‘That Congress ap- 23 proves the removal of Huawei Technologies Co. Ltd., 24 and its subsidiaries and affiliates, from the entity 25 VerDate Sep 11 2014 21:21 Jul 22, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3759.IH H3759 kjohnson on DSK79L0C42 with BILLS 9 •HR 3759 IH list maintained by the Bureau of Industry and Secu- 1 rity and set forth in Supplement No. 4 to part 744 2 of the Export Administration Regulations, pursuant 3 to the request of the Secretary of Commerce for 4 such removal submitted to Congress on lll.’’, 5 with the blank space being filled with the appro- 6 priate date. 7 (2) INTRODUCTION; COMMITTEE REFERRAL.—A 8 joint resolution of approval— 9 (A) in the House of Representatives— 10 (i) may be introduced by the Speaker 11 or the minority leader; and 12 (ii) shall be referred to the Committee 13 on Financial Services; and 14 (B) in the Senate— 15 (i) may be introduced by the majority 16 leader or the minority leader; and 17 (ii) shall be referred to the Committee 18 on Banking, Housing, and Urban Affairs. 19 (3) COMMITTEE DISCHARGE AND FLOOR CON- 20 SIDERATION.—The provisions of paragraphs (4), (5) 21 (other than subparagraph (A) of paragraph (5)), 22 and (6) of section 216(c) of the Countering Amer- 23 ica’s Adversaries Through Sanctions Act (22 U.S.C. 24 9511(c)) apply to a joint resolution of approval 25 VerDate Sep 11 2014 23:14 Jul 18, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3759.IH H3759 kjohnson on DSK79L0C42 with BILLS 10 •HR 3759 IH under this subsection to the same extent as such 1 provisions apply to joint resolution of approval under 2 such section 216(c). 3 (4) RULES OF HOUSE OF REPRESENTATIVES 4 AND SENATE.—This subsection is enacted by Con- 5 gress— 6 (A) as an exercise of the rulemaking power 7 of the Senate and the House of Representa- 8 tives, respectively, and as such is deemed a part 9 of the rules of each House, respectively, and su- 10 persedes other rules only to the extent that it 11 is inconsistent with such rules; and 12 (B) with full recognition of the constitu- 13 tional right of either House to change the rules 14 (so far as relating to the procedure of that 15 House) at any time, in the same manner, and 16 to the same extent as in the case of any other 17 rule of that House. 18 SEC. 5. CONGRESSIONAL DISAPPROVAL OF EXPORT LI- 19 CENSES ISSUED TO HUAWEI TECHNOLOGIES 20 CO. LTD., OR ITS SUBSIDIARIES OR AFFILI- 21 ATES. 22 (a) REPORT REQUIRED.—Not later than 15 days 23 after issuing a license to or with respect to Huawei Tech- 24 nologies Co. Ltd., or any of its subsidiaries or affiliates, 25 VerDate Sep 11 2014 23:14 Jul 18, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3759.IH H3759 kjohnson on DSK79L0C42 with BILLS 11 •HR 3759 IH pursuant to the Export Administration Regulations, the 1 Secretary of Commerce shall submit to Congress a report 2 on the license and the reasons for issuing the license. 3 (b) CONGRESSIONAL DISAPPROVAL.—A license de- 4 scribed in subsection (a) shall have no force or effect on 5 or after the date of the enactment of a joint resolution 6 of disapproval under subsection (c). 7 (c) JOINT RESOLUTIONS OF DISAPPROVAL.— 8 (1) JOINT RESOLUTION OF DISAPPROVAL DE- 9 FINED.—In this subsection, the term ‘‘joint resolu- 10 tion of disapproval’’ means a joint resolution of ei- 11 ther House of Congress the sole matter after the re- 12 solving clause of which is as follows: ‘‘That Congress 13 does not approve the license issued to or with re- 14 spect to Huawei Technologies Co. Ltd., or one of its 15 subsidiaries or affiliates, under the Export Adminis- 16 tration Regulations, relating to lll, notice of 17 which was submitted to Congress on lll.’’, with 18 the first blank space being filled with a brief descrip- 19 tion of the items covered by the license and the sec- 20 ond blank space being filled with the appropriate 21 date. 22 (2) INTRODUCTION; COMMITTEE REFERRAL.—A 23 joint resolution of disapproval— 24 (A) in the House of Representatives— 25 VerDate Sep 11 2014 23:14 Jul 18, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H3759.IH H3759 kjohnson on DSK79L0C42 with BILLS 12 •HR 3759 IH (i) may be introduced by the Speaker 1 or the minority leader during the 30-day 2 period beginning on the date on which the 3 report is submitted under subsection (a); 4 and 5 (ii) shall be referred to the Committee 6 on Financial Services; and 7 (B) in the Senate— 8 (i) may be introduced by the majority 9 leader or the minority leader during the 10 30-day period beginning on the date on 11 which the report is submitted under sub- 12 section (a); and 13 (ii) shall be referred to the Committee 14 on Banking, Housing, and Urban Affairs. 15 (3) COMMITTEE DISCHARGE AND FLOOR CON- 16 SIDERATION.—The provisions of paragraphs (4), (5) 17 (other than subparagraph (A) [Text truncated for display. 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