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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4998 Introduced in House (IH)]

<DOC>

116th CONGRESS
  1st Session
                                H. R. 4998

  To prohibit certain Federal loans, grants, and subsidies from being 
 used to purchase communications equipment or services posing national 
  security risks, to provide for the establishment of a reimbursement 
  program for the replacement of communications equipment or services 
               posing such risks, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            November 8, 2019

  Mr. Pallone (for himself, Mr. Walden, Ms. Matsui, and Mr. Guthrie) 
 introduced the following bill; which was referred to the Committee on 
                          Energy and Commerce

_______________________________________________________________________

                                 A BILL

 
  To prohibit certain Federal loans, grants, and subsidies from being 
 used to purchase communications equipment or services posing national 
  security risks, to provide for the establishment of a reimbursement 
  program for the replacement of communications equipment or services 
               posing such risks, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Secure and Trusted Communications 
Networks Act of 2019''.

SEC. 2. DETERMINATION OF COMMUNICATIONS EQUIPMENT OR SERVICES POSING 
              NATIONAL SECURITY RISKS.

    (a) Publication of Covered Communications Equipment or Services 
List.--Not later than 1 year after the date of the enactment of this 
Act, the Commission shall publish on its website a list of covered 
communications equipment or services.
    (b) Determination by Commission.--The Commission shall place on the 
list published under subsection (a) any communications equipment or 
service, if and only if the Commission determines that such equipment 
or service--
            (1) is produced or provided by--
                    (A) Huawei Technologies Co. Limited, Zhongxing 
                Telecommunications Equipment Corporation, or any 
                subsidiary or affiliate of either such entity;
                    (B) any successor to any entity described in 
                subparagraph (A); or
                    (C) any other entity, if the Commission determines, 
                based exclusively on the determinations described in 
                paragraphs (1) through (3) of subsection (c), that such 
                equipment or service produced or provided by such 
                entity poses an unacceptable risk to the national 
                security of the United States or the security and 
                safety of United States persons; and
            (2) is capable of--
                    (A) routing or redirecting user data traffic or 
                permitting visibility into any user data or packets 
                that such equipment or service transmits or otherwise 
                handles; or
                    (B) causing the network of a provider of advanced 
                communications service to be disrupted remotely.
    (c) Reliance on Certain Other Determinations.--In making a 
determination under subsection (b)(1)(C), the Commission shall rely 
solely on one or more of the following determinations:
            (1) A specific determination made by any executive branch 
        interagency body with appropriate national security expertise, 
        including the Federal Acquisition Security Council established 
        under section 1322(a) of title 41, United States Code.
            (2) A specific determination made by the Department of 
        Commerce pursuant to Executive Order 13873 (84 Fed. Reg. 22689; 
        relating to securing the information and communications 
        technology and services supply chain).
            (3) The communications equipment or service being covered 
        telecommunications equipment or services, as defined in section 
        889(f)(3) of the John S. McCain National Defense Authorization 
        Act for Fiscal Year 2019 (Public Law 115-232; 132 Stat. 1918).
    (d) Updating of List.--
            (1) In general.--The Commission shall periodically update 
        the list published under subsection (a), as necessary to 
        protect national security and to address changes in the 
        determinations described in paragraphs (1) through (3) of 
        subsection (c).
            (2) Monitoring of determinations.--The Commission shall 
        monitor the making or reversing of the determinations described 
        in paragraphs (1) through (3) of subsection (c) in order to 
        determine whether to place communications equipment or services 
        on the list published under subsection (a) or to remove 
        communications equipment or services from such list. If a 
        determination described in any such paragraph that provided the 
        basis for a determination by the Commission under subsection 
        (b)(1)(C) with respect to any communications equipment or 
        service is reversed, the Commission shall remove such equipment 
        or service from such list, except that the Commission may not 
        remove such equipment or service from such list if any other 
        determination described in any such paragraph provides a basis 
        for a determination by the Commission under subsection 
        (b)(1)(C) with respect to such equipment or service.
            (3) Public notification.--For each 12-month period during 
        which the list published under subsection (a) is not updated, 
        the Commission shall notify the public that no updates were 
        necessary during such period to protect national security or to 
        address changes in the determinations described in paragraphs 
        (1) through (3) of subsection (c).

SEC. 3. PROHIBITION ON USE OF CERTAIN FEDERAL LOANS, GRANTS, AND 
              SUBSIDIES.

    (a) In General.--
            (1) Prohibition.--A Federal loan, grant, or subsidy that is 
        made available through a program administered by the Commission 
        and that provides funds to be used for the capital expenditures 
        necessary for the provision of advanced communications service 
        may not be used to--
                    (A) purchase, rent, lease, or otherwise obtain any 
                covered communications equipment or service; or
                    (B) maintain any covered communications equipment 
                or service previously purchased, rented, leased, or 
                otherwise obtained.
            (2) Timing.--Paragraph (1) shall apply with respect to any 
        covered communications equipment or service beginning on the 
        date that is 60 days after the date on which the Commission 
        places such equipment or service on the list required by 
        section 2(a). In the case of any covered communications 
        equipment or service that is on the initial list published 
        under such section, such equipment or service shall be treated 
        as being placed on the list on the date on which such list is 
        published.
    (b) Completion of Proceeding.--Not later than 90 days after the 
date of the enactment of this Act, the Commission shall adopt a Report 
and Order in the matter of Protecting Against National Security Threats 
to the Communications Supply Chain Through FCC Programs (WC Docket No. 
18-89) that implements subsection (a).
    (c) Rule of Construction.--Nothing in this section may be construed 
to limit a Federal agency from procuring goods or services.

SEC. 4. SECURE AND TRUSTED COMMUNICATIONS NETWORKS REIMBURSEMENT 
              PROGRAM.

    (a) In General.--The Commission shall establish a reimbursement 
program, to be known as the ``Secure and Trusted Communications 
Networks Reimbursement Program'', to make reimbursements to providers 
of advanced communications service to replace covered communications 
equipment or services.
    (b) Eligibility.--The Commission may not make a reimbursement under 
the Program to a provider of advanced communications service unless the 
provider--
            (1) has 2,000,000 or fewer customers; and
            (2) makes all of the certifications required by subsection 
        (d)(5).
    (c) Use of Funds.--
            (1) In general.--A recipient of a reimbursement under the 
        Program shall use reimbursement funds solely for the purposes 
        of--
                    (A) permanently removing covered communications 
                equipment or services purchased, rented, leased, or 
                otherwise obtained before--
                            (i) in the case of any covered 
                        communications equipment or services that are 
                        on the initial list published under section 
                        2(a), August 14, 2018; or
                            (ii) in the case of any covered 
                        communications equipment or services that are 
                        not on the initial list published under section 
                        2(a), the date that is 60 days after the date 
                        on which the Commission places such equipment 
                        or services on the list required by such 
                        section;
                    (B) replacing the covered communications equipment 
                or services removed as described in subparagraph (A) 
                with communications equipment or services that are not 
                covered communications equipment or services; and
                    (C) disposing of the covered communications 
                equipment or services removed as described in 
                subparagraph (A) in accordance with the requirements 
                under subsection (d)(8).
            (2) Limitations.--A recipient of a reimbursement under the 
        Program may not--
                    (A) use reimbursement funds to remove, replace, or 
                dispose of any covered communications equipment or 
                service purchased, rented, leased, or otherwise 
                obtained on or after--
                            (i) in the case of any covered 
                        communications equipment or service that is on 
                        the initial list published under section 2(a), 
                        August 14, 2018; or
                            (ii) in the case of any covered 
                        communications equipment or service that is not 
                        on the initial list published under section 
                        2(a), the date that is 60 days after the date 
                        on which the Commission places such equipment 
                        or service on the list required by such 
                        section; or
                    (B) purchase, rent, lease, or otherwise obtain any 
                covered communications equipment or service, using 
                reimbursement funds or any other funds (including funds 
                derived from private sources).
    (d) Implementation.--
            (1) Regulations.--Not later than 270 days after the date of 
        the enactment of this Act, the Commission shall promulgate 
        regulations to implement the Program.
            (2) Suggested replacements.--
                    (A) Development of list.--The Commission shall 
                develop a list of suggested replacements of both 
                physical and virtual communications equipment, 
                application and management software, and services.
                    (B) Neutrality.--The list developed under 
                subparagraph (A) shall be technology neutral and may 
                not advantage the use of reimbursement funds for 
                capital expenditures over operational expenditures, to 
                the extent that the Commission determines that 
                communications services can serve as an adequate 
                substitute for the installation of communications 
                equipment.
            (3) Application process.--
                    (A) In general.--The Commission shall develop an 
                application process and related forms and materials for 
                the Program.
                    (B) Cost estimate.--
                            (i) Initial estimate.--The Commission shall 
                        require an applicant to provide an initial 
                        reimbursement cost estimate at the time of 
                        application, with supporting materials 
                        substantiating the costs.
                            (ii) Updates.--During and after the 
                        application review process, the Commission may 
                        require an applicant to--
                                    (I) update the initial 
                                reimbursement cost estimate submitted 
                                under clause (i); and
                                    (II) submit additional supporting 
                                materials substantiating an updated 
                                cost estimate submitted under subclause 
                                (I).
                    (C) Mitigation of burden.--In developing the 
                application process under this paragraph, the 
                Commission shall take reasonable steps to mitigate the 
                administrative burdens and costs associated with the 
                application process, while taking into account the need 
                to avoid waste, fraud, and abuse in the Program.
            (4) Application review process.--
                    (A) Deadline.--
                            (i) In general.--Except as provided in 
                        clause (ii) and subparagraph (B), the 
                        Commission shall approve or deny an application 
                        for a reimbursement under the Program not later 
                        than 90 days after the date of the submission 
                        of the application.
                            (ii) Additional time needed by 
                        commission.--If the Commission determines that, 
                        because an excessive number of applications 
                        have been filed at one time, the Commission 
                        needs additional time for employees of the 
                        Commission to process the applications, the 
                        Commission may extend the deadline described in 
                        clause (i) for not more than 45 days.
                    (B) Opportunity for applicant to cure deficiency.--
                If the Commission determines that an application is 
                materially deficient (including by lacking an adequate 
                cost estimate or adequate supporting materials), the 
                Commission shall provide the applicant a 15-day period 
                to cure the defect before denying the application. If 
                such period would extend beyond the deadline under 
                subparagraph (A) for approving or denying the 
                application, such deadline shall be extended through 
                the end of such period.
                    (C) Effect of denial.--Denial of an application for 
                a reimbursement under the Program shall not preclude 
                the applicant from resubmitting the application or 
                submitting a new application for a reimbursement under 
                the Program at a later date.
            (5) Certifications.--An applicant for a reimbursement under 
        the Program shall, in the application of the applicant, certify 
        to the Commission that--
                    (A) as of the date of the submission of the 
                application, the applicant--
                            (i) has developed a plan for--
                                    (I) the permanent removal and 
                                replacement of any covered 
                                communications equipment or services 
                                that are in the communications network 
                                of the applicant as of such date; and
                                    (II) the disposal of the equipment 
                                or services removed as described in 
                                subclause (I) in accordance with the 
                                requirements under paragraph (8); and
                            (ii) has developed a specific timeline 
                        (subject to paragraph (7)) for the permanent 
                        removal, replacement, and disposal of the 
                        covered communications equipment or services 
                        identified under clause (i), which timeline 
                        shall be submitted to the Commission as part of 
                        the application; and
                    (B) beginning on the date of the approval of the 
                application, the applicant--
                            (i) will not purchase, rent, lease, or 
                        otherwise obtain covered communications 
                        equipment or services, using reimbursement 
                        funds or any other funds (including funds 
                        derived from private sources); and
                            (ii) in developing and tailoring the risk 
                        management practices of the applicant, will 
                        consult and consider the standards, guidelines, 
                        and best practices set forth in the 
                        cybersecurity framework developed by the 
                        National Institute of Standards and Technology.
            (6) Distribution of reimbursement funds.--
                    (A) In general.--The Commission shall make 
                reasonable efforts to ensure that reimbursement funds 
                are distributed equitably among all applicants for 
                reimbursements under the Program according to the needs 
                of the applicants, as identified by the applications of 
                the applicants.
                    (B) Notification.--If, at any time during the 
                implementation of the Program, the Commission 
                determines that the funds made available to the 
                Commission to carry out the Program will not be 
                sufficient to fully fund all approved applications for 
                reimbursements under the Program, the Commission shall 
                immediately notify--
                            (i) the Committee on Energy and Commerce 
                        and the Committee on Appropriations of the 
                        House of Representatives; and
                            (ii) the Committee on Commerce, Science, 
                        and Transportation and the Committee on 
                        Appropriations of the Senate.
            (7) Removal, replacement, and disposal term.--
                    (A) Deadline.--The permanent removal, replacement, 
                and disposal of any covered communications equipment or 
                services identified under paragraph (5)(A)(i) shall be 
                completed not later than 1 year after the date on which 
                the Commission approves the application.
                    (B) General extension.--The Commission may grant an 
                extension of the deadline described in subparagraph (A) 
                for 6 months to all recipients of reimbursements under 
                the Program if the Commission--
                            (i) finds that the supply of replacement 
                        communications equipment or services needed by 
                        the recipients to achieve the purposes of the 
                        Program is inadequate to meet the needs of the 
                        recipients; and
                            (ii) provides notice and a detailed 
                        justification for granting the extension to--
                                    (I) the Committee on Energy and 
                                Commerce of the House of 
                                Representatives; and
                                    (II) the Committee on Commerce, 
                                Science, and Transportation of the 
                                Senate.
                    (C) Individual extension.--
                            (i) Petition.--A recipient of a 
                        reimbursement under the Program may petition 
                        the Commission for an extension for such 
                        recipient of the deadline described in 
                        subparagraph (A) or, if the Commission has 
                        granted an extension of such deadline under 
                        subparagraph (B), such deadline as so extended.
                            (ii) Grant.--The Commission may grant a 
                        petition filed under clause (i) by extending, 
                        for the recipient that filed the petition, the 
                        deadline described in subparagraph (A) or, if 
                        the Commission has granted an extension of such 
                        deadline under subparagraph (B), such deadline 
                        as so extended, for a period of not more than 6 
                        months if the Commission finds that, due to no 
                        fault of such recipient, such recipient is 
                        unable to complete the permanent removal, 
                        replacement, and disposal described in 
                        subparagraph (A).
            (8) Disposal of covered communications equipment or 
        services.--The Commission shall include in the regulations 
        promulgated under paragraph (1) requirements for the disposal 
        by a recipient of a reimbursement under the Program of covered 
        communications equipment or services identified under paragraph 
        (5)(A)(i) and removed from the network of the recipient in 
        order to prevent such equipment or services from being used in 
        the networks of providers of advanced communications service.
            (9) Status updates.--
                    (A) In general.--Not less frequently than once 
                every 90 days beginning on the date on which the 
                Commission approves an application for a reimbursement 
                under the Program, the recipient of the reimbursement 
                shall submit to the Commission a status update on the 
                work of the recipient to permanently remove, replace, 
                and dispose of the covered communications equipment or 
                services identified under paragraph (5)(A)(i).
                    (B) Public posting.--Not earlier than 30 days after 
                the date on which the Commission receives a status 
                update under subparagraph (A), the Commission shall 
                make such status update public on the website of the 
                Commission.
                    (C) Reports to congress.--Not less frequently than 
                once every 180 days beginning on the date on which the 
                Commission first makes funds available to a recipient 
                of a reimbursement under the Program, the Commission 
                shall prepare and submit to the Committee on Energy and 
                Commerce of the House of Representatives and the 
                Committee on Commerce, Science, and Transportation of 
                the Senate a report on--
                            (i) the implementation of the Program by 
                        the Commission; and
                            (ii) the work by recipients of 
                        reimbursements under the Program to permanently 
                        remove, replace, and dispose of covered 
                        communications equipment or services identified 
                        under paragraph (5)(A)(i).
    (e) Measures To Avoid Waste, Fraud, and Abuse.--
            (1) In general.--The Commission shall take all necessary 
        steps to avoid waste, fraud, and abuse with respect to the 
        Program.
            (2) Spending reports.--The Commission shall require 
        recipients of reimbursements under the Program to submit to the 
        Commission on a regular basis reports regarding how 
        reimbursement funds have been spent, including detailed 
        accounting of the covered communications equipment or services 
        permanently removed and disposed of, and the replacement 
        equipment or services purchased, rented, leased, or otherwise 
        obtained, using reimbursement funds.
            (3) Audits, reviews, and field investigations.--The 
        Commission shall conduct--
                    (A) regular audits and reviews of reimbursements 
                under the Program to confirm that recipients of such 
                reimbursements are complying with this Act; and
                    (B) random field investigations to ensure that 
                recipients of reimbursements under the Program are 
                performing the work such recipients are required to 
                perform under the commitments made in the applications 
                of such recipients for reimbursements under the 
                Program, including the permanent removal, replacement, 
                and disposal of the covered communications equipment or 
                services identified under subsection (d)(5)(A)(i).
            (4) Final certification.--
                    (A) In general.--The Commission shall require a 
                recipient of a reimbursement under the Program to 
                submit to the Commission, in a form and at an 
                appropriate time to be determined by the Commission, a 
                certification stating that the recipient--
                            (i) has fully complied with (or is in the 
                        process of complying with) all terms and 
                        conditions of the Program;
                            (ii) has fully complied with (or is in the 
                        process of complying with) the commitments made 
                        in the application of the recipient for the 
                        reimbursement;
                            (iii) has permanently removed from the 
                        communications network of the recipient, 
                        replaced, and disposed of (or is in the process 
                        of permanently removing, replacing, and 
                        disposing of) all covered communications 
                        equipment or services that were in the network 
                        of the recipient as of the date of the 
                        submission of the application of the recipient 
                        for the reimbursement; and
                            (iv) has fully complied with (or is in the 
                        process of complying with) the timeline 
                        submitted by the recipient under subparagraph 
                        (A)(ii) of paragraph (5) of subsection (d) and 
                        the other requirements of such paragraph.
                    (B) Updated certification.--If, at the time when a 
                recipient of a reimbursement under the Program submits 
                a certification under subparagraph (A), the recipient 
                has not fully complied as described in clause (i), 
                (ii), or (iv) of such subparagraph or has not completed 
                the permanent removal, replacement, and disposal 
                described in clause (iii) of such subparagraph, the 
                Commission shall require the recipient to file an 
                updated certification when the recipient has fully 
                complied as described in such clause (i), (ii), or (iv) 
                or completed such permanent removal, replacement, and 
                disposal.
    (f) Effect of Removal of Equipment or Service From List.--
            (1) In general.--If, after the date on which a recipient of 
        a reimbursement under the Program submits the application for 
        the reimbursement, any covered communications equipment or 
        service that is in the network of the recipient as of such date 
        is removed from the list published under section 2(a), the 
        recipient may--
                    (A) return to the Commission any reimbursement 
                funds received for the removal, replacement, and 
                disposal of such equipment or service and be released 
                from any requirement under this section to remove, 
                replace, or dispose of such equipment or service; or
                    (B) retain any reimbursement funds received for the 
                removal, replacement, and disposal of such equipment or 
                service and remain subject to the requirements of this 
                section to remove, replace, and dispose of such 
                equipment or service as if such equipment or service 
                continued to be on the list published under section 
                2(a).
            (2) Assurances.--In the case of an assurance relating to 
        the removal, replacement, or disposal of any equipment or 
        service with respect to which the recipient returns to the 
        Commission reimbursement funds under paragraph (1)(A), such 
        assurance may be satisfied by making an assurance that such 
        funds have been returned.
    (g) Rule of Construction Regarding Timing of Reimbursement.--
Nothing in this section shall be construed to prohibit the Commission 
from making a reimbursement under the Program to a provider of advanced 
communications service before the provider incurs the cost of the 
permanent removal, replacement, and disposal of the covered 
communications equipment or service for which the application of the 
provider has been approved under this section.
    (h) Education Efforts.--The Commission shall engage in education 
efforts with providers of advanced communications service to--
            (1) encourage such providers to participate in the Program; 
        and
            (2) assist such providers in submitting applications for 
        the Program.
    (i) Separate From Federal Universal Service Programs.--The Program 
shall be separate from any Federal universal service program 
established under section 254 of the Communications Act of 1934 (47 
U.S.C. 254).
    (j) Authorization of Appropriations.--There is authorized to be 
appropriated to the Commission $1,000,000,000 for fiscal year 2020 to 
carry out the Program. Such amount is authorized to remain available 
through fiscal year 2029.

SEC. 5. HOLD HARMLESS.

    In the case of a person who is a winner of the Connect America Fund 
Phase II auction, has not yet been authorized to receive Connect 
America Fund Phase II support, and demonstrates an inability to 
reasonably meet the build-out and service obligations of such person 
under Connect America Fund Phase II without using equipment or services 
prohibited under this Act, such person may withdraw the application of 
such person for Connect America Fund Phase II support without being 
found in default or subject to forfeiture.

SEC. 6. ENFORCEMENT.

    (a) Violations.--A violation of this Act or a regulation 
promulgated under this Act shall be treated as a violation of the 
Communications Act of 1934 (47 U.S.C. 151 et seq.) or a regulation 
promulgated under such Act, respectively. The Commission shall enforce 
this Act and the regulations promulgated under this Act in the same 
manner, by the same means, and with the same jurisdiction, powers, and 
duties as though all applicable terms and provisions of the 
Communications Act of 1934 were incorporated into and made a part of 
this Act.
    (b) Additional Penalties.--
            (1) In general.--Except as provided in paragraph (2), in 
        addition to penalties under the Communications Act of 1934, a 
        recipient of a reimbursement under the Program found to have 
        violated section 4, the regulations promulgated under such 
        section, or the commitments made by the recipient in the 
        application for the reimbursement--
                    (A) shall repay to the Commission all reimbursement 
                funds provided to the recipient under the Program;
                    (B) shall be barred from further participation in 
                the Program;
                    (C) shall be referred to all appropriate law 
                enforcement agencies or officials for further action 
                under applicable criminal and civil laws; and
                    (D) may be barred by the Commission from 
                participation in other programs of the Commission, 
                including the Federal universal service support 
                programs established under section 254 of the 
                Communications Act of 1934 (47 U.S.C. 254).
            (2) Notice and opportunity to cure.--The penalties 
        described in paragraph (1) shall not apply to a recipient of a 
        reimbursement under the Program unless--
                    (A) the Commission provides the recipient with 
                notice of the violation; and
                    (B) the recipient fails to cure the violation 
                within 180 days after the Commission provides such 
                notice.
    (c) Recovery of Funds.--The Commission shall immediately take 
action to recover all reimbursement funds awarded to a recipient of a 
reimbursement under the Program in any case in which such recipient is 
required to repay reimbursement funds under subsection (b)(1)(A).

SEC. 7. DEFINITIONS.

    In this Act:
            (1) Advanced communications service.--The term ``advanced 
        communications service'' has the meaning given the term 
        ``advanced telecommunications capability'' in section 706 of 
        the Telecommunications Act of 1996 (47 U.S.C. 1302).
            (2) Commission.--The term ``Commission'' means the Federal 
        Communications Commission.
            (3) Covered communications equipment or service.--The term 
        ``covered communications equipment or service'' means any 
        communications equipment or service that is on the list 
        published by the Commission under section 2(a).
            (4) Customers.--The term ``customers'' means, with respect 
        to a provider of advanced communications service--
                    (A) the customers of such provider; and
                    (B) the customers of any affiliate (as defined in 
                section 3 of the Communications Act of 1934 (47 U.S.C. 
                153)) of such provider.
            (5) Executive branch interagency body.--The term 
        ``executive branch interagency body'' means an interagency body 
        established in the executive branch.
            (6) Federal agency.--The term ``Federal agency'' has the 
        meaning given the term ``agency'' in section 551 of title 5, 
        United States Code.
            (7) Person.--The term ``person'' means an individual or 
        entity.
            (8) Program.--The term ``Program'' means the Secure and 
        Trusted Communications Networks Reimbursement Program 
        established under section 4(a).
            (9) Provider of advanced communications service.--The term 
        ``provider of advanced communications service'' means a person 
        who provides advanced communications service to United States 
        customers.
            (10) Recipient.--The term ``recipient'' means any provider 
        of advanced communications service the application of which for 
        a reimbursement under the Program has been approved by the 
        Commission, regardless of whether the provider has received 
        reimbursement funds.
            (11) Reimbursement funds.--The term ``reimbursement funds'' 
        means any reimbursement received under the Program.
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