IB 

Union Calendar No. 281 

116TH CONGRESS 

1ST SESSION H. R. 4998 

[Report No. 116–352] 

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 

DECEMBER 16, 2019 

Reported with amendments, committed to the Committee of the Whole House 

on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on November 8, 2019] 


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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. 


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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Secure and Trusted 

5 Communications Networks Act of 2019’’. 

6 SEC. 2. DETERMINATION OF COMMUNICATIONS EQUIP7 MENT OR SERVICES POSING NATIONAL SECU8 RITY RISKS. 

9 (a) PUBLICATION OF COVERED COMMUNICATIONS

10 EQUIPMENT OR SERVICES LIST.—Not later than 1 year 

11 after the date of the enactment of this Act, the Commission 

12 shall publish on its website a list of covered communications 

13 equipment or services. 

14 (b) DETERMINATION BY COMMISSION.—The Commis15 sion shall place on the list published under subsection (a) 

16 any communications equipment or service, if and only if 

17 the Commission determines that such equipment or serv18 ice— 

19 (1) is produced or provided by— 

20 (A) Huawei Technologies Co. Limited, 

21 Zhongxing Telecommunications Equipment Cor22 poration, or any subsidiary or affiliate of either 

23 such entity; 

24 (B) any successor to any entity described in 

25 subparagraph (A); or 


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1 (C) any other entity, if the Commission de2 termines, based exclusively on the determinations 

3 described in paragraphs (1) through (3) of sub4 section (c), that such equipment or service pro5 duced or provided by such entity poses an unac6 ceptable risk to the national security of the 

7 United States or the security and safety of 

8 United States persons; and 

9 (2) is capable of— 

10 (A) routing or redirecting user data traffic 

11 or permitting visibility into any user data or 

12 packets that such equipment or service transmits 

13 or otherwise handles; or 

14 (B) causing the network of a provider of ad15 vanced communications service to be disrupted 

16 remotely. 

17 (c) RELIANCE ON CERTAIN OTHER DETERMINA18 TIONS.—In making a determination under subsection 

19 (b)(1)(C), the Commission shall rely solely on one or more 

20 of the following determinations: 

21 (1) A specific determination made by any execu22 tive branch interagency body with appropriate na23 tional security expertise, including the Federal Acqui24 sition Security Council established under section 

25 1322(a) of title 41, United States Code. 


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1 (2) A specific determination made by the De2 partment of Commerce pursuant to Executive Order 

3 13873 (84 Fed. Reg. 22689; relating to securing the 

4 information and communications technology and 

5 services supply chain). 

6 (3) The communications equipment or service 

7 being covered telecommunications equipment or serv8 ices, as defined in section 889(f)(3) of the John S. 

9 McCain National Defense Authorization Act for Fis10 cal Year 2019 (Public Law 115–232; 132 Stat. 1918). 

11 (d) UPDATING OF LIST.— 

12 (1) IN GENERAL.—The Commission shall peri13 odically update the list published under subsection 

14 (a), as necessary to protect national security and to 

15 address changes in the determinations described in 

16 paragraphs (1) through (3) of subsection (c). 

17 (2) MONITORING OF DETERMINATIONS.—The 

18 Commission shall monitor the making or reversing of 

19 the determinations described in paragraphs (1) 

20 through (3) of subsection (c) in order to determine 

21 whether to place communications equipment or serv22 ices on the list published under subsection (a) or to 

23 remove communications equipment or services from 

24 such list. If a determination described in any such 

25 paragraph that provided the basis for a determinaVerDate Sep 11 2014 20:24 Dec 16, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H4998.RH H4998

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1 tion by the Commission under subsection (b)(1)(C) 

2 with respect to any communications equipment or 

3 service is reversed, the Commission shall remove such 

4 equipment or service from such list, except that the 

5 Commission may not remove such equipment or serv6 ice from such list if any other determination described 

7 in any such paragraph provides a basis for a deter8 mination by the Commission under subsection 

9 (b)(1)(C) with respect to such equipment or service. 

10 (3) PUBLIC NOTIFICATION.—For each 12-month 

11 period during which the list published under sub12 section (a) is not updated, the Commission shall no13 tify the public that no updates were necessary during 

14 such period to protect national security or to address 

15 changes in the determinations described in para16 graphs (1) through (3) of subsection (c). 

17 SEC. 3. PROHIBITION ON USE OF CERTAIN FEDERAL SUB18 SIDIES. 

19 (a) IN GENERAL.— 

20 (1) PROHIBITION.—A Federal subsidy that is 

21 made available through a program administered by 

22 the Commission and that provides funds to be used 

23 for the capital expenditures necessary for the provi24 sion of advanced communications service may not be 

25 used to— 


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1 (A) purchase, rent, lease, or otherwise ob2 tain any covered communications equipment or 

3 service; or 

4 (B) maintain any covered communications 

5 equipment or service previously purchased, 

6 rented, leased, or otherwise obtained. 

7 (2) TIMING.—Paragraph (1) shall apply with re8 spect to any covered communications equipment or 

9 service beginning on the date that is 60 days after the 

10 date on which the Commission places such equipment 

11 or service on the list required by section 2(a). In the 

12 case of any covered communications equipment or 

13 service that is on the initial list published under such 

14 section, such equipment or service shall be treated as 

15 being placed on the list on the date on which such list 

16 is published. 

17 (b) COMPLETION OF PROCEEDING.—Not later than 90 

18 days after the date of the enactment of this Act, the Commis19 sion shall adopt a Report and Order in the matter of Pro20 tecting Against National Security Threats to the Commu21 nications Supply Chain Through FCC Programs (WC 

22 Docket No. 18–89) that implements subsection (a). 


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1 SEC. 4. SECURE AND TRUSTED COMMUNICATIONS NET2 WORKS REIMBURSEMENT PROGRAM. 

3 (a) IN GENERAL.—The Commission shall establish a 

4 reimbursement program, to be known as the ‘‘Secure and 

5 Trusted Communications Networks Reimbursement Pro6 gram’’, to make reimbursements to providers of advanced 

7 communications service to replace covered communications 

8 equipment or services. 

9 (b) ELIGIBILITY.—The Commission may not make a 

10 reimbursement under the Program to a provider of ad11 vanced communications service unless the provider— 

12 (1) has 2,000,000 or fewer customers; and 

13 (2) makes all of the certifications required by 

14 subsection (d)(5). 

15 (c) USE OF FUNDS.— 

16 (1) IN GENERAL.—A recipient of a reimburse17 ment under the Program shall use reimbursement 

18 funds solely for the purposes of— 

19 (A) permanently removing covered commu20 nications equipment or services purchased, 

21 rented, leased, or otherwise obtained before— 

22 (i) in the case of any covered commu23 nications equipment or services that are on 

24 the initial list published under section 2(a), 

25 August 14, 2018; or 


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1 (ii) in the case of any covered commu2 nications equipment or services that are not 

3 on the initial list published under section 

4 2(a), the date that is 60 days after the date 

5 on which the Commission places such equip6 ment or services on the list required by such 

7 section; 

8 (B) replacing the covered communications 

9 equipment or services removed as described in 

10 subparagraph (A) with communications equip11 ment or services that are not covered commu12 nications equipment or services; and 

13 (C) disposing of the covered communica14 tions equipment or services removed as described 

15 in subparagraph (A) in accordance with the re16 quirements under subsection (d)(8). 

17 (2) LIMITATIONS.—A recipient of a reimburse18 ment under the Program may not— 

19 (A) use reimbursement funds to remove, re20 place, or dispose of any covered communications 

21 equipment or service purchased, rented, leased, 

22 or otherwise obtained on or after— 

23 (i) in the case of any covered commu24 nications equipment or service that is on 


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1 the initial list published under section 2(a), 

2 August 14, 2018; or 

3 (ii) in the case of any covered commu4 nications equipment or service that is not 

5 on the initial list published under section 

6 2(a), the date that is 60 days after the date 

7 on which the Commission places such equip8 ment or service on the list required by such 

9 section; or 

10 (B) purchase, rent, lease, or otherwise ob11 tain any covered communications equipment or 

12 service, using reimbursement funds or any other 

13 funds (including funds derived from private 

14 sources). 

15 (d) IMPLEMENTATION.— 

16 (1) REGULATIONS.—Not later than 270 days 

17 after the date of the enactment of this Act, the Com18 mission shall promulgate regulations to implement 

19 the Program. 

20 (2) SUGGESTED REPLACEMENTS.— 

21 (A) DEVELOPMENT OF LIST.—The Commis22 sion shall develop a list of suggested replacements 

23 of both physical and virtual communications 

24 equipment, application and management soft25 ware, and services. 


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1 (B) NEUTRALITY.—The list developed under 

2 subparagraph (A) shall be technology neutral 

3 and may not advantage the use of reimburse4 ment funds for capital expenditures over oper5 ational expenditures, to the extent that the Com6 mission determines that communications services 

7 can serve as an adequate substitute for the in8 stallation of communications equipment. 

9 (3) APPLICATION PROCESS.— 

10 (A) IN GENERAL.—The Commission shall 

11 develop an application process and related forms 

12 and materials for the Program. 

13 (B) COST ESTIMATE.— 

14 (i) INITIAL ESTIMATE.—The Commis15 sion shall require an applicant to provide 

16 an initial reimbursement cost estimate at 

17 the time of application, with supporting 

18 materials substantiating the costs. 

19 (ii) UPDATES.—During and after the 

20 application review process, the Commission 

21 may require an applicant to— 

22 (I) update the initial reimburse23 ment cost estimate submitted under 

24 clause (i); and 


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1 (II) submit additional supporting 

2 materials substantiating an updated 

3 cost estimate submitted under sub4 clause (I). 

5 (C) MITIGATION OF BURDEN.—In devel6 oping the application process under this para7 graph, the Commission shall take reasonable 

8 steps to mitigate the administrative burdens and 

9 costs associated with the application process, 

10 while taking into account the need to avoid 

11 waste, fraud, and abuse in the Program. 

12 (4) APPLICATION REVIEW PROCESS.— 

13 (A) DEADLINE.— 

14 (i) IN GENERAL.—Except as provided 

15 in clause (ii) and subparagraph (B), the 

16 Commission shall approve or deny an ap17 plication for a reimbursement under the 

18 Program not later than 90 days after the 

19 date of the submission of the application. 

20 (ii) ADDITIONAL TIME NEEDED BY

21 COMMISSION.—If the Commission deter22 mines that, because an excessive number of 

23 applications have been filed at one time, the 

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1 plications, the Commission may extend the 

2 deadline described in clause (i) for not more 

3 than 45 days. 

4 (B) OPPORTUNITY FOR APPLICANT TO CURE

5 DEFICIENCY.—If the Commission determines that 

6 an application is materially deficient (including 

7 by lacking an adequate cost estimate or adequate 

8 supporting materials), the Commission shall pro9 vide the applicant a 15-day period to cure the 

10 defect before denying the application. If such pe11 riod would extend beyond the deadline under 

12 subparagraph (A) for approving or denying the 

13 application, such deadline shall be extended 

14 through the end of such period. 

15 (C) EFFECT OF DENIAL.—Denial of an ap16 plication for a reimbursement under the Pro17 gram shall not preclude the applicant from re18 submitting the application or submitting a new 

19 application for a reimbursement under the Pro20 gram at a later date. 

21 (5) CERTIFICATIONS.—An applicant for a reim22 bursement under the Program shall, in the applica23 tion of the applicant, certify to the Commission 

24 that— 


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1 (A) as of the date of the submission of the 

2 application, the applicant— 

3 (i) has developed a plan for— 

4 (I) the permanent removal and re5 placement of any covered communica6 tions equipment or services that are in 

7 the communications network of the ap8 plicant as of such date; and 

9 (II) the disposal of the equipment 

10 or services removed as described in sub11 clause (I) in accordance with the re12 quirements under paragraph (8); and 

13 (ii) has developed a specific timeline 

14 (subject to paragraph (7)) for the perma15 nent removal, replacement, and disposal of 

16 the covered communications equipment or 

17 services identified under clause (i), which 

18 timeline shall be submitted to the Commis19 sion as part of the application; and 

20 (B) beginning on the date of the approval 

21 of the application, the applicant— 

22 (i) will not purchase, rent, lease, or 

23 otherwise obtain covered communications 

24 equipment or services, using reimbursement 


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1 funds or any other funds (including funds 

2 derived from private sources); and 

3 (ii) in developing and tailoring the 

4 risk management practices of the applicant, 

5 will consult and consider the standards, 

6 guidelines, and best practices set forth in 

7 the cybersecurity framework developed by 

8 the National Institute of Standards and 

9 Technology. 

10 (6) DISTRIBUTION OF REIMBURSEMENT

11 FUNDS.— 

12 (A) IN GENERAL.—The Commission shall 

13 make reasonable efforts to ensure that reimburse14 ment funds are distributed equitably among all 

15 applicants for reimbursements under the Pro16 gram according to the needs of the applicants, as 

17 identified by the applications of the applicants. 

18 (B) NOTIFICATION.—If, at any time during 

19 the implementation of the Program, the Commis20 sion determines that the funds made available to 

21 the Commission to carry out the Program will 

22 not be sufficient to fully fund all approved appli23 cations for reimbursements under the Program, 

24 the Commission shall immediately notify— 


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1 (i) the Committee on Energy and Com2 merce and the Committee on Appropria3 tions of the House of Representatives; and 

4 (ii) the Committee on Commerce, 

5 Science, and Transportation and the Com6 mittee on Appropriations of the Senate. 

7 (7) REMOVAL, REPLACEMENT, AND DISPOSAL

8 TERM.— 

9 (A) DEADLINE.—The permanent removal, 

10 replacement, and disposal of any covered com11 munications equipment or services identified 

12 under paragraph (5)(A)(i) shall be completed not 

13 later than 1 year after the date on which the 

14 Commission distributes reimbursement funds to 

15 the recipient. 

16 (B) GENERAL EXTENSION.—The Commis17 sion may grant an extension of the deadline de18 scribed in subparagraph (A) for 6 months to all 

19 recipients of reimbursements under the Program 

20 if the Commission— 

21 (i) finds that the supply of replacement 

22 communications equipment or services need23 ed by the recipients to achieve the purposes 

24 of the Program is inadequate to meet the 

25 needs of the recipients; and 


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1 (ii) provides notice and a detailed jus2 tification for granting the extension to— 

3 (I) the Committee on Energy and 

4 Commerce of the House of Representa5 tives; and 

6 (II) the Committee on Commerce, 

7 Science, and Transportation of the 

8 Senate. 

9 (C) INDIVIDUAL EXTENSION.— 

10 (i) PETITION.—A recipient of a reim11 bursement under the Program may petition 

12 the Commission for an extension for such 

13 recipient of the deadline described in sub14 paragraph (A) or, if the Commission has 

15 granted an extension of such deadline under 

16 subparagraph (B), such deadline as so ex17 tended. 

18 (ii) GRANT.—The Commission may 

19 grant a petition filed under clause (i) by ex20 tending, for the recipient that filed the peti21 tion, the deadline described in subpara22 graph (A) or, if the Commission has grant23 ed an extension of such deadline under sub24 paragraph (B), such deadline as so ex25 tended, for a period of not more than 6 


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1 months if the Commission finds that, due to 

2 no fault of such recipient, such recipient is 

3 unable to complete the permanent removal, 

4 replacement, and disposal described in sub5 paragraph (A). 

6 (8) DISPOSAL OF COVERED COMMUNICATIONS

7 EQUIPMENT OR SERVICES.—The Commission shall in8 clude in the regulations promulgated under para9 graph (1) requirements for the disposal by a recipient 

10 of a reimbursement under the Program of covered 

11 communications equipment or services identified 

12 under paragraph (5)(A)(i) and removed from the net13 work of the recipient in order to prevent such equip14 ment or services from being used in the networks of 

15 providers of advanced communications service. 

16 (9) STATUS UPDATES.— 

17 (A) IN GENERAL.—Not less frequently than 

18 once every 90 days beginning on the date on 

19 which the Commission approves an application 

20 for a reimbursement under the Program, the re21 cipient of the reimbursement shall submit to the 

22 Commission a status update on the work of the 

23 recipient to permanently remove, replace, and 

24 dispose of the covered communications equipment 

25 or services identified under paragraph (5)(A)(i). 


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1 (B) PUBLIC POSTING.—Not earlier than 30 

2 days after the date on which the Commission re3 ceives a status update under subparagraph (A), 

4 the Commission shall make such status update 

5 public on the website of the Commission. 

6 (C) REPORTS TO CONGRESS.—Not less fre7 quently than once every 180 days beginning on 

8 the date on which the Commission first makes 

9 funds available to a recipient of a reimbursement 

10 under the Program, the Commission shall pre11 pare and submit to the Committee on Energy 

12 and Commerce of the House of Representatives 

13 and the Committee on Commerce, Science, and 

14 Transportation of the Senate a report on— 

15 (i) the implementation of the Program 

16 by the Commission; and 

17 (ii) the work by recipients of reim18 bursements under the Program to perma19 nently remove, replace, and dispose of cov20 ered communications equipment or services 

21 identified under paragraph (5)(A)(i). 

22 (e) MEASURES TO AVOID WASTE, FRAUD, AND

23 ABUSE.— 


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1 (1) IN GENERAL.—The Commission shall take all 

2 necessary steps to avoid waste, fraud, and abuse with 

3 respect to the Program. 

4 (2) SPENDING REPORTS.—The Commission shall 

5 require recipients of reimbursements under the Pro6 gram to submit to the Commission on a regular basis 

7 reports regarding how reimbursement funds have been 

8 spent, including detailed accounting of the covered 

9 communications equipment or services permanently 

10 removed and disposed of, and the replacement equip11 ment or services purchased, rented, leased, or other12 wise obtained, using reimbursement funds. 

13 (3) AUDITS, REVIEWS, AND FIELD INVESTIGA14 TIONS.—The Commission shall conduct— 

15 (A) regular audits and reviews of reim16 bursements under the Program to confirm that 

17 recipients of such reimbursements are complying 

18 with this Act; and 

19 (B) random field investigations to ensure 

20 that recipients of reimbursements under the Pro21 gram are performing the work such recipients 

22 are required to perform under the commitments 

23 made in the applications of such recipients for 

24 reimbursements under the Program, including 

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1 posal of the covered communications equipment 

2 or services identified under subsection 

3 (d)(5)(A)(i). 

4 (4) FINAL CERTIFICATION.— 

5 (A) IN GENERAL.—The Commission shall 

6 require a recipient of a reimbursement under the 

7 Program to submit to the Commission, in a form 

8 and at an appropriate time to be determined by 

9 the Commission, a certification stating that the 

10 recipient— 

11 (i) has fully complied with (or is in 

12 the process of complying with) all terms 

13 and conditions of the Program; 

14 (ii) has fully complied with (or is in 

15 the process of complying with) the commit16 ments made in the application of the recipi17 ent for the reimbursement; 

18 (iii) has permanently removed from 

19 the communications network of the recipi20 ent, replaced, and disposed of (or is in the 

21 process of permanently removing, replacing, 

22 and disposing of) all covered communica23 tions equipment or services that were in the 

24 network of the recipient as of the date of the 


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1 submission of the application of the recipi2 ent for the reimbursement; and 

3 (iv) has fully complied with (or is in 

4 the process of complying with) the timeline 

5 submitted by the recipient under subpara6 graph (A)(ii) of paragraph (5) of subsection 

7 (d) and the other requirements of such 

8 paragraph. 

9 (B) UPDATED CERTIFICATION.—If, at the 

10 time when a recipient of a reimbursement under 

11 the Program submits a certification under sub12 paragraph (A), the recipient has not fully com13 plied as described in clause (i), (ii), or (iv) of 

14 such subparagraph or has not completed the per15 manent removal, replacement, and disposal de16 scribed in clause (iii) of such subparagraph, the 

17 Commission shall require the recipient to file an 

18 updated certification when the recipient has 

19 fully complied as described in such clause (i), 

20 (ii), or (iv) or completed such permanent re21 moval, replacement, and disposal. 

22 (f) EFFECT OF REMOVAL OF EQUIPMENT OR SERVICE

23 FROM LIST.— 

24 (1) IN GENERAL.—If, after the date on which a 

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1 mits the application for the reimbursement, any cov2 ered communications equipment or service that is in 

3 the network of the recipient as of such date is removed 

4 from the list published under section 2(a), the recipi5 ent may— 

6 (A) return to the Commission any reim7 bursement funds received for the removal, re8 placement, and disposal of such equipment or 

9 service and be released from any requirement 

10 under this section to remove, replace, or dispose 

11 of such equipment or service; or 

12 (B) retain any reimbursement funds re13 ceived for the removal, replacement, and disposal 

14 of such equipment or service and remain subject 

15 to the requirements of this section to remove, re16 place, and dispose of such equipment or service 

17 as if such equipment or service continued to be 

18 on the list published under section 2(a). 

19 (2) ASSURANCES.—In the case of an assurance 

20 relating to the removal, replacement, or disposal of 

21 any equipment or service with respect to which the re22 cipient returns to the Commission reimbursement 

23 funds under paragraph (1)(A), such assurance may 

24 be satisfied by making an assurance that such funds 

25 have been returned. 


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1 (g) RULE OF CONSTRUCTION REGARDING TIMING OF

2 REIMBURSEMENT.—Nothing in this section shall be con3 strued to prohibit the Commission from making a reim4 bursement under the Program to a provider of advanced 

5 communications service before the provider incurs the cost 

6 of the permanent removal, replacement, and disposal of the 

7 covered communications equipment or service for which the 

8 application of the provider has been approved under this 

9 section. 

10 (h) EDUCATION EFFORTS.—The Commission shall en11 gage in education efforts with providers of advanced com12 munications service to— 

13 (1) encourage such providers to participate in 

14 the Program; and 

15 (2) assist such providers in submitting applica16 tions for the Program. 

17 (i) SEPARATE FROM FEDERAL UNIVERSAL SERVICE

18 PROGRAMS.—The Program shall be separate from any Fed19 eral universal service program established under section 254 

20 of the Communications Act of 1934 (47 U.S.C. 254). 

21 (j) AUTHORIZATION OF APPROPRIATIONS.—There is 

22 authorized to be appropriated to the Commission 

23 $1,000,000,000 for fiscal year 2020 to carry out the Pro24 gram. Such amount is authorized to remain available 

25 through fiscal year 2029. Not more than $5,000,000 of the 


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1 amounts appropriated under this subsection may be used 

2 for the administrative costs of carrying out the Program. 

3 SEC. 5. HOLD HARMLESS. 

4 In the case of a person who is a winner of the Connect 

5 America Fund Phase II auction, has not yet been author6 ized to receive Connect America Fund Phase II support, 

7 and demonstrates an inability to reasonably meet the build8 out and service obligations of such person under Connect 

9 America Fund Phase II without using equipment or serv10 ices prohibited under this Act, such person may withdraw 

11 the application of such person for Connect America Fund 

12 Phase II support without being found in default or subject 

13 to forfeiture. The Commission may set a deadline to make 

14 such a withdrawal that is not earlier than the date that 

15 is 60 days after the date of the enactment of this Act. 

16 SEC. 6. ENFORCEMENT. 

17 (a) VIOLATIONS.—A violation of this Act or a regula18 tion promulgated under this Act shall be treated as a viola19 tion of the Communications Act of 1934 (47 U.S.C. 151 

20 et seq.) or a regulation promulgated under such Act, respec21 tively. The Commission shall enforce this Act and the regu22 lations promulgated under this Act in the same manner, 

23 by the same means, and with the same jurisdiction, powers, 

24 and duties as though all applicable terms and provisions 


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1 of the Communications Act of 1934 were incorporated into 

2 and made a part of this Act. 

3 (b) ADDITIONAL PENALTIES.— 

4 (1) IN GENERAL.—Except as provided in para5 graph (2), in addition to penalties under the Commu6 nications Act of 1934, a recipient of a reimbursement 

7 under the Program found to have violated section 4, 

8 the regulations promulgated under such section, or the 

9 commitments made by the recipient in the applica10 tion for the reimbursement— 

11 (A) shall repay to the Commission all reim12 bursement funds provided to the recipient under 

13 the Program; 

14 (B) shall be barred from further participa15 tion in the Program; 

16 (C) shall be referred to all appropriate law 

17 enforcement agencies or officials for further ac18 tion under applicable criminal and civil laws; 

19 and 

20 (D) may be barred by the Commission from 

21 participation in other programs of the Commis22 sion, including the Federal universal service sup23 port programs established under section 254 of 

24 the Communications Act of 1934 (47 U.S.C. 

25 254). 


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1 (2) NOTICE AND OPPORTUNITY TO CURE.—The 

2 penalties described in paragraph (1) shall not apply 

3 to a recipient of a reimbursement under the Program 

4 unless— 

5 (A) the Commission provides the recipient 

6 with notice of the violation; and 

7 (B) the recipient fails to cure the violation 

8 within 180 days after the Commission provides 

9 such notice. 

10 (c) RECOVERY OF FUNDS.—The Commission shall im11 mediately take action to recover all reimbursement funds 

12 awarded to a recipient of a reimbursement under the Pro13 gram in any case in which such recipient is required to 

14 repay reimbursement funds under subsection (b)(1)(A). 

15 SEC. 7. DEFINITIONS. 

16 In this Act: 

17 (1) ADVANCED COMMUNICATIONS SERVICE.—The 

18 term ‘‘advanced communications service’’ has the 

19 meaning given the term ‘‘advanced telecommuni20 cations capability’’ in section 706 of the Tele21 communications Act of 1996 (47 U.S.C. 1302). 

22 (2) COMMISSION.—The term ‘‘Commission’’ 

23 means the Federal Communications Commission. 

24 (3) COVERED COMMUNICATIONS EQUIPMENT OR

25 SERVICE.—The term ‘‘covered communications equipVerDate Sep 11 2014 20:24 Dec 16, 2019 Jkt 099200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6203 E:\BILLS\H4998.RH H4998

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28 

•HR 4998 RH

1 ment or service’’ means any communications equip2 ment or service that is on the list published by the 

3 Commission under section 2(a). 

4 (4) CUSTOMERS.—The term ‘‘customers’’ means, 

5 with respect to a provider of advanced communica6 tions service— 

7 (A) the customers of such provider; and 

8 (B) the customers of any affiliate (as de9 fined in section 3 of the Communications Act of 

10 1934 (47 U.S.C. 153)) of such provider. 

11 (5) EXECUTIVE BRANCH INTERAGENCY BODY.— 

12 The term ‘‘executive branch interagency body’’ means 

13 an interagency body established in the executive 

14 branch. 

15 (6) PERSON.—The term ‘‘person’’ means an in16 dividual or entity. 

17 (7) PROGRAM.—The term ‘‘Program’’ means the 

18 Secure and Trusted Communications Networks Reim19 bursement Program established under section 4(a). 

20 (8) PROVIDER OF ADVANCED COMMUNICATIONS

21 SERVICE.—The term ‘‘provider of advanced commu22 nications service’’ means a person who provides ad23 vanced communications service to United States cus24 tomers. 


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29 

•HR 4998 RH

1 (9) RECIPIENT.—The term ‘‘recipient’’ means 

2 any provider of advanced communications service the 

3 application of which for a reimbursement under the 

4 Program has been approved by the Commission, re5 gardless of whether the provider has received reim6 bursement funds. 

7 (10) REIMBURSEMENT FUNDS.—The term ‘‘reim8 bursement funds’’ means any reimbursement received 

9 under the Program. 

Amend the title so as to read: ‘‘A bill to prohibit certain Federal 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.’’. 


kjohnson on DSK79L0C42 with BILLS
Union Calendar No. 281 

116TH CONGRESS 

1ST SESSION H. R. 4998 

[Report No. 116–352] 

A BILL 

To prohibit certain Federal loans, grants, and subsuch risks, and for other purposes. communications equipment or services posing reimbursement program for the replacement of rity risks, to provide for the establishment of a tions equipment or services posing national secu- sidies from being used to purchase communicaDECEMBER 16, 2019 Reported with amendments, committed to the Committee 

dered to be printed of the Whole House on the State of the Union, and orVerDate Sep 11 2014 20:24 Dec 16, 2019 Jkt 099200 PO 00000 Frm 00030 Fmt 6651 Sfmt 6651 E:\BILLS\H4998.RH H4998

kjohnson on DSK79L0C42 with BILLS