I 

108TH CONGRESS 

2D SESSION H. R. 3969

To amend the Communications Act of 1934 to strengthen the limitations 

on the holding of any license, permit, operating authority by a foreign 

government or any entity controlled by a foreign government. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 12, 2004

Mr. TAUZIN introduced the following bill; which was referred to the Committee 

on Energy and Commerce 

A BILL

To amend the Communications Act of 1934 to strengthen 

the limitations on the holding of any license, permit, 

operating authority by a foreign government or any entity controlled by a foreign government.

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 ‘‘Foreign Government 

5 Ownership Act of 2004’’. 
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1 SEC. 2. FOREIGN GOVERNMENT. 

2 Title VII of the Communications Act of 1934 (47 

3 U.S.C. 601 et seq.) is amended by adding at the end there4 of the following: 

5 ‘‘SEC. 715. LIMITATIONS ON FOREIGN GOVERNMENT OWN6 ERSHIP. 

7 ‘‘(a) PROHIBITION.—Notwithstanding any other pro8 vision of this Act or any other law to the contrary, no 

9 license, permit, or operating authority under this Act may 

10 be granted to or held by a corporation, joint venture, part11 nership, other business organization, trust, or other entity 

12 after the date of enactment of the Foreign Government 

13 Ownership Act of 2004, if that corporation, joint venture, 

14 partnership, other business organization, trust, or other 

15 entity is directly or indirectly controlled by a foreign gov16 ernment or its representative, as determined under sub17 section (c). 

18 ‘‘(b) PROHIBITION IS ABSOLUTE.—The Commission 

19 may not waive the application of subsection (a) under any 

20 other authority granted to the Commission under this or 

21 any other Act or under any Commission order or rule. 

22 ‘‘(c) TEST OF CONTROL.—A corporation, joint ven23 ture, partnership, other business organization, trust, or 

24 other entity shall be considered to be directly or indirectly 

25 controlled by a foreign government or its representatives 

26 if—
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1 ‘‘(1) more than 25 percent of the ownership, 

2 voting rights, capital stock, or other interest in that 

3 corporation or other entity is owned, held, or con4 trolled, directly or indirectly, by a foreign govern5 ment or its representatives; 

6 ‘‘(2) a foreign government or its representatives 

7 has the authority to approve or disapprove the ap8 pointment or employment of any officer of the cor9 poration, joint venture, partnership, other business 

10 organization, trust, or other entity; or 

11 ‘‘(3) a foreign government or its representative 

12 has the authority to exercise control over such cor13 poration, joint venture, partnership, other business 

14 organization, trust, or other entity in any other 

15 manner. 

16 ‘‘(d) REPRESENTATIVES.—A representative of a for17 eign government shall include any person or entity that 

18 acts on the instruction of a foreign government. 

19 ‘‘(e) ENFORCEMENT.—The Commission shall—

20 ‘‘(1) revoke any license, permit, or operating 

21 authority held in violation of subsection (a); and 

22 ‘‘(2) auction or otherwise reassign any such li23 cense, permit, or operating authority revoked under 

24 paragraph (1) within 90 days after it is revoked. 
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1 ‘‘(f) TRANSITION PERIOD.—Notwithstanding sub2 section (e), the Commission may not commence enforce3 ment action under that subsection against a corporation, 

4 joint venture, partnership, other business organization, 

5 trust, or other entity to which this section applies for 6 

6 months following the date of enactment of the Foreign 

7 Government Ownership Act of 2004.’’.

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