Secure and Trusted Communications Networks Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 4459 To prohibit Federal funds from being used to purchase communications equip- ment or services posing national security risks, to provide for the estab- lishment of a reimbursement program for the replacement of communica- tions equipment or services posing such risks, and for other purposes. IN THE HOUSE OF REPRESENTATIVES SEPTEMBER 24, 2019 Mr. PALLONE (for himself, Mr. WALDEN, Ms. MATSUI, and Mr. GUTHRIE) introduced the following bill; which was referred to the Committee on En- ergy and Commerce, and in addition to the Committee on Oversight and Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdic- tion of the committee concerned A BILL To prohibit Federal funds from being used to purchase com- munications equipment or services posing national secu- rity risks, to provide for the establishment of a reim- bursement program for the replacement of communica- tions equipment or services posing such risks, 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 22:23 Sep 25, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4459.IH H4459 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 4459 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Secure and Trusted 2 Communications Networks Act of 2019’’. 3 SEC. 2. DETERMINATION OF COMMUNICATIONS EQUIP- 4 MENT OR SERVICES POSING NATIONAL SECU- 5 RITY RISKS. 6 (a) PUBLICATION OF COVERED COMMUNICATIONS 7 EQUIPMENT OR SERVICES LIST.—Not later than 1 year 8 after the date of the enactment of this Act, the Commis- 9 sion shall publish on its website a list of covered commu- 10 nications equipment or services. 11 (b) DETERMINATION BY COMMISSION.—The Com- 12 mission shall place on the list published under subsection 13 (a) any communications equipment or service, if and only 14 if the Commission determines that such equipment or 15 service— 16 (1) is produced or provided by— 17 (A) Huawei Technologies Co. Limited, 18 Zhongxing Telecommunications Equipment 19 Corporation, or any subsidiary or affiliate of ei- 20 ther such entity; 21 (B) any successor to any entity described 22 in subparagraph (A); or 23 (C) any other entity, if the Commission de- 24 termines, based exclusively on the determina- 25 tions described in paragraphs (1) through (4) 26 VerDate Sep 11 2014 22:23 Sep 25, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4459.IH H4459 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 4459 IH of subsection (c), that such equipment or serv- 1 ice produced or provided by such entity poses 2 an unacceptable risk to the national security of 3 the United States or the security and safety of 4 United States persons; and 5 (2) is capable of— 6 (A) routing or redirecting user data traffic 7 or permitting visibility into any user data or 8 packets that such equipment or service trans- 9 mits or otherwise handles; or 10 (B) causing the network of a provider of 11 advanced communications service to be dis- 12 rupted remotely. 13 (c) RELIANCE ON CERTAIN OTHER DETERMINA- 14 TIONS.—In making a determination under subsection 15 (b)(1)(C), the Commission shall rely solely on one or more 16 of the following determinations: 17 (1) A specific determination made by any exec- 18 utive branch interagency body with appropriate na- 19 tional security expertise, including the Federal Ac- 20 quisition Security Council established under section 21 1322(a) of title 41, United States Code. 22 (2) A specific determination made by the Bu- 23 reau of Industry and Security of the Department of 24 Commerce to place an entity on the entity list main- 25 VerDate Sep 11 2014 22:23 Sep 25, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4459.IH H4459 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 4459 IH tained by the Bureau and set forth in Supplement 1 No. 4 to part 744 of the Export Administration 2 Regulations (subchapter C of chapter VII of title 15, 3 Code of Federal Regulations). 4 (3) A specific determination made pursuant to 5 Executive Order 13873 (84 Fed. Reg. 22689; relat- 6 ing to securing the information and communications 7 technology and services supply chain), including any 8 determination made by the Department of Com- 9 merce pursuant to regulations promulgated to imple- 10 ment such Executive order. 11 (4) The communications equipment or service 12 being covered telecommunications equipment or serv- 13 ices, as defined in section 889(f)(3) of the John S. 14 McCain National Defense Authorization Act for Fis- 15 cal Year 2019 (Public Law 115–232; 132 Stat. 16 1918). 17 (d) UPDATING OF LIST.—The Commission shall peri- 18 odically update the list published under subsection (a), as 19 necessary to protect national security and to address 20 changes in the determinations described in paragraphs (1) 21 through (4) of subsection (c). For each 12-month period 22 during which the list is not updated, the Commission shall 23 notify the public that no updates were necessary during 24 VerDate Sep 11 2014 22:23 Sep 25, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4459.IH H4459 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 4459 IH such period to protect national security or to address 1 changes in such determinations. 2 SEC. 3. PROHIBITION ON USE OF FEDERAL FUNDS. 3 (a) IN GENERAL.— 4 (1) PROHIBITION.—Federal funds may not be 5 used to purchase, rent, lease, or otherwise obtain 6 any covered communications equipment or service or 7 to maintain any covered communications equipment 8 or service previously purchased, rented, leased, or 9 otherwise obtained. 10 (2) TIMING.—Paragraph (1) shall apply with 11 respect to any covered communications equipment or 12 service beginning on the date that is 60 days after 13 the date on which the Commission places such 14 equipment or service on the list required by section 15 2(a). In the case of any covered communications 16 equipment or service that is on the initial list pub- 17 lished under such section, such equipment or service 18 shall be treated as being placed on the list on the 19 date on which such list is published. 20 (b) COMPLETION OF PROCEEDING.—Not later than 21 90 days after the date of the enactment of this Act, the 22 Commission shall adopt a Report and Order in the matter 23 of Protecting Against National Security Threats to the 24 Communications Supply Chain Through FCC Programs 25 VerDate Sep 11 2014 22:23 Sep 25, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4459.IH H4459 pamtmann on DSKBC07HB2PROD with BILLS 6 •HR 4459 IH (WC Docket No. 18–89) that implements subsection (a), 1 to the extent such subsection applies to a program admin- 2 istered by the Commission. 3 (c) APPLICATION TO OTHER AGENCIES.—Not later 4 than 180 days after the date of the enactment of this Act, 5 the head of each Federal agency that administers a pro- 6 gram through which Federal funds are made available 7 shall update the regulations for the program to comply 8 with subsection (a). 9 SEC. 4. SECURE AND TRUSTED COMMUNICATIONS NET- 10 WORKS REIMBURSEMENT PROGRAM. 11 (a) IN GENERAL.—The Commission shall establish a 12 reimbursement program, to be known as the ‘‘Secure and 13 Trusted Communications Networks Reimbursement Pro- 14 gram’’, to make reimbursements to providers of advanced 15 communications service to replace covered communica- 16 tions equipment or services. 17 (b) ELIGIBILITY.—The Commission may not make a 18 reimbursement under the Program to a provider of ad- 19 vanced communications service unless the provider— 20 (1) has 2,000,000 or fewer customers; and 21 (2) makes all of the certifications required by 22 subsection (d)(5). 23 (c) USE OF FUNDS.— 24 VerDate Sep 11 2014 22:23 Sep 25, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H4459.IH H4459 pamtmann on DSKBC07HB2PROD with BILLS 7 •HR 4459 IH (1) IN GENERAL.—A recipient of a reimburse- 1 ment under the Program shall use reimbursement 2 funds solely for the purposes of— 3 (A) permanently removing covered commu- 4 nications equipment or services purchased, 5 rented, leased, or otherwise obtained before Au- 6 gust 14, 2018, and replacing such equipment or 7 services with communications equipment or 8 services that are not covered communications 9 equipment or services; and 10 (B) disposing of the equipment or services 11 removed as described in subparagraph (A) in 12 accordance with the requirements under sub- 13 section (d)(8). 14 (2) LIMITATIONS.—A recipient of a reimburse- 15 ment under the Program may not use reimburse- 16 ment funds to— 17 (A) remove, replace, or dispose of any cov- 18 ered communications equipment or service pur- 19 chased, rented, leased, or otherwise obtained on 20 or after August 14, 2018; 21 (B) purchase, rent, lease, or otherwise ob- 22 tain any covered communications equipment or 23 service, using reimbursement funds or any 24 VerDate Sep 11 2014 22:23 Sep 25, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H4459.IH H4459 pamtmann on DSKBC07HB2PROD with BILLS 8 •HR 4459 IH other funds (including funds derived from pri- 1 vate sources); or 2 (C) make network upgrades that go beyond 3 the replacement of covered communications 4 equipment or services, as determined by the 5 Commission. 6 (d) IMPLEMENTATION.— 7 (1) REGULATIONS.—Not later than 270 days 8 after the date of the enactment of this Act, the 9 Commission shall promulgate regulations to imple- 10 ment the Program. 11 (2) SUGGESTED REPLACEMENTS.— 12 (A) DEVELOPMENT OF LIST.—The Com- 13 mission shall develop a list of suggested replace- 14 ments of both physical and virtual communica- 15 tions equipment, application and management 16 software, and services. 17 (B) NEUTRALITY.—The list developed 18 under subparagraph (A) shall be technology 19 neutral and may not advantage the use of reim- 20 bursement funds for capital expenditures over 21 operational expenditures, to the extent that the 22 Commission determines that communications 23 services can serve as an adequate substitute for 24 the installation of communications equipment. 25 VerDate Sep 11 2014 22:23 Sep 25, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H4459.IH H4459 pamtmann on DSKBC07HB2PROD with BILLS 9 •HR 4459 IH (3) APPLICATION PROCESS.— 1 (A) IN GENERAL.—The Commission shall 2 develop an application process and related 3 forms and materials for the Program. 4 (B) COST ESTIMATE.— 5 (i) INITIAL ESTIMATE.—The Commis- 6 sion shall require an applicant to provide 7 an initial reimbursement cost estimate at 8 the time of application, with supporting 9 materials substantiating the costs. 10 (ii) UPDATES.—During and after the 11 application review process, the Commission 12 may require an applicant to— 13 (I) update the initial reimburse- 14 ment cost estimate submitted under 15 clause (i); and 16 (II) submit additional supporting 17 materials substantiating an updated 18 cost estimate submitted under sub- 19 clause (I). 20 (C) MITIGATION OF BURDEN.—In devel- 21 oping the application process under this para- 22 graph, the Commission shall take reasonable 23 steps to mitigate the administrative burdens 24 and costs associated with the application proc- 25 VerDate Sep 11 2014 22:23 Sep 25, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H4459.IH H4459 pamtmann on DSKBC07HB2PROD with BILLS 10 •HR 4459 IH ess, while taking into account the need to avoid 1 waste, fraud, and abuse in the Program. 2 (4) APPLICATION REVIEW PROCESS.— 3 (A) DEADLINE.— 4 (i) IN GENERAL.—Except as provided 5 in clause (ii) and subparagraph (B), the 6 Commission shall approve or deny an ap- 7 plication for a reimbursement under the 8 Program not later than 90 days after the 9 date of the submission of the application. 10 (ii) ADDITIONAL TIME NEEDED BY 11 COMMISSION.—If the Commission deter- 12 mines that, because an excessive number of 13 applications have been filed at one time, 14 the Commission needs additional time for 15 employees of the Commission to process 16 the applications, the Commission may ex- 17 tend the deadline described in clause (i) for 18 not more than 45 days. 19 (B) OPPORTUNITY FOR APPLICANT TO 20 CURE DEFICIENCY.—If the Commission deter- 21 mines that an application is materially deficient 22 (including by lacking an adequate cost estimate 23 or adequate supporting materials), the Commis- 24 sion shall provide the applicant a 15-day period 25 VerDate Sep 11 2014 22:23 Sep 25, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H4459.IH H4459 pamtmann on DSKBC07HB2PROD with BILLS 11 •HR 4459 IH to cure the defect before denying the applica- 1 tion. If such period would extend beyond the 2 deadline under subparagraph (A) for approving 3 or denying the application, such deadline shall 4 be extended through the end of such period. 5 (C) EFFECT OF DENIAL.—Denial of an ap- 6 plication for a reimbursement under the Pro- 7 gram shall not preclude the applicant from re- 8 submitting the application or submitting a new 9 application for a reimbursement under the Pro- 10 gram at a later date. 11 (5) CERTIFICATIONS.—An applicant for a reim- 12 bursement under the Program shall, in the applica- 13 tion of such applicant, certify to the Commission 14 that— 15 (A) beginning on the date of the submis- 16 sion of the application, the applicant will not 17 purchase, rent, lease, or otherwise obtain cov- 18 ered communications equipment or services, 19 using reimbursement funds or any other funds 20 (including funds derived from private sources); 21 and 22 (B) as of the date of the submission of the 23 application, the applicant— 24 (i) has developed a plan for— 25 VerDate Sep 11 2014 22:23 Sep 25, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H4459.IH H4459 pamtmann on DSKBC07HB2PROD with BILLS 12 •HR 4459 IH (I) the permanent removal and 1 replacement of any covered commu- 2 nications equipment or services that 3 are in the communications network of 4 the applicant as of such date; and 5 (II) the disposal of the equip- 6 ment or services removed as described 7 in subclause (I) in accordance with 8 the requirements under paragraph 9 (8); 10 (ii) has developed a specific timeline 11 (subject to paragraph (7)) for the perma- 12 nent removal, replacement, and disposal of 13 the covered communications equipment or 14 services identified under clause (i), which 15 timeline shall be submitted to the Commis- 16 sion as part of the application; 17 (iii) has taken, or will immediately 18 take, all necessary steps to mitigate the se- 19 curity threat the covered communications [Text truncated for display. 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