Telecommunications Denial Order Enforcement Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Telecommunications Denial Order 
Enforcement Act''.

SEC. 2. STATEMENT OF POLICY.

    It shall be the policy of the United States to enforce denial 
orders on covered telecommunications companies found to have violated 
the export control or sanctions laws of the United States.

SEC. 3. IMPOSITION AND ENFORCEMENT OF DENIAL ORDERS WITH RESPECT TO 
              COVERED TELECOMMUNICATIONS COMPANIES.

    (a) Imposition of Denial Orders.--
            (1) In general.--Not later than 60 days after the date of 
        which a determination is made that a covered telecommunications 
        company is in violation of an export control or sanctions law 
        of the United States, the President shall impose a penalty 
        pursuant to a denial order with respect to the covered 
        telecommunications company or its agents or affiliates as 
        follows:
                    (A) The company and when acting for or on their 
                behalf, their successors, assigns, directors, officers, 
                employees, representatives, or agents (hereinafter each 
                a ``denied person''), may not, directly or indirectly, 
                participate in any way in any transaction involving any 
                commodity, software or technology (hereinafter 
                collectively referred to as ``item'') exported or to be 
                exported from the United States that is subject to the 
                Export Administration Regulations (as codified in 
                subchapter C of chapter VII of title 15, Code of 
                Federal Regulations, or any successor regulations), or 
                in any other activity subject to the Export 
                Administration Regulations.
                    (B) No person may, directly or indirectly, do any 
                of the following:
                            (i) Export or reexport to or on behalf of a 
                        denied person any item subject to the Export 
                        Administration Regulations.
                            (ii) Take any action that facilitates the 
                        acquisition or attempted acquisition by a 
                        denied person of the ownership, possession, or 
                        control of any item subject to the Regulations 
                        that has been or will be exported from the 
                        United States, including financing or other 
                        support activities related to a transaction 
                        whereby a denied person acquires or attempts to 
                        acquire such ownership, possession or control.
                            (iii) Take any action to acquire from or to 
                        facilitate the acquisition or attempted 
                        acquisition from a denied person of any item 
                        subject to the Export Administration 
                        Regulations that has been exported from the 
                        United States.
                            (iv) Obtain from a denied person in the 
                        United States any item subject to the Export 
                        Administration Regulations with knowledge or 
                        reason to know that the item will be, or is 
                        intended to be, exported from the United 
                        States.
                            (v) Engage in any transaction to service 
                        any item subject to the Export Administration 
                        Regulations that has been or will be exported 
                        from the United States and which is owned, 
                        possessed or controlled by a denied person, or 
                        service any item, of whatever origin, that is 
                        owned, possessed or controlled by a denied 
                        person if such service involves the use of any 
                        item subject to the Export Administration 
                        Regulations that has been or will be exported 
                        from the United States.
            (2) Applicability.--Paragraph (1) shall apply on and after 
        the date of the enactment of this Act with respect to a 
        determination described in paragraph (1) that is made on or 
        after such date of enactment.
    (b) Prohibition on Modification of Penalties.--Notwithstanding any 
other provision of law, no official of an executive agency may modify 
any penalty, including a penalty imposed pursuant to a denial order, 
implemented by the Government of the United States with respect to a 
covered telecommunications company or its agents or affiliates pursuant 
to a determination that the company has violated an export control or 
sanctions law of the United States until the date that is 30 days after 
the President certifies to the appropriate congressional committees 
that the company--
            (1) has not, for a period of one year, conducted activities 
        in violation of the laws of the United States; and
            (2) is fully cooperating with investigations into the 
        activities of the company conducted by the Government of the 
        United States, if any.
    (c) Regulations.--The President is authorized to prescribe such 
regulations as may be necessary to carry out this section.
    (d) Definitions.--
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Financial Services and the 
                Committee on Foreign Affairs of the House of 
                Representatives; and
                    (B) the Committee on Banking, Housing, and Urban 
                Affairs and the Committee on Foreign Relations of the 
                Senate.
            (2) Covered telecommunications company.--The term ``covered 
        telecommunications company'' means any of the following:
                    (A) Huawei Technologies Company or ZTE Corporation 
                (or any subsidiary or affiliate of such entities).
                    (B) Any other telecommunications company domiciled 
                in the People's Republic of China (or any subsidiary or 
                affiliate of such entities), excluding any subsidiary 
                of a foreign company domiciled in the People's Republic 
                of China.
            (3) Executive agency.--The term ``executive agency'' 
        means--
                    (A) an executive department specified in section 
                101 of title 5, United States Code;
                    (B) a military department specified in section 102 
                of title 5, United States Code;
                    (C) an independent establishment as defined in 
                section 104(1) of title 5, United States Code; and
                    (D) a wholly-owned Government corporation fully 
                subject to chapter 91 of title 31, United States Code.

Summary: Telecommunications Denial Order Enforcement Act This bill directs the President to impose penalties on telecommunications companies domiciled in China, including Huawei and ZTE, that violate US export controls or sanctions. Chinese subsidiaries of foreign companies are excluded from the bill. The bill also prohibits executive agencies from reducing any penalty imposed on a Chinese telecommunications company for violating a sanction or export control, unless the President certifies that the company has not violated US law for at least one year and is fully cooperating with investigations.