I 
115TH CONGRESS 
2D SESSION 
H. R. 7255 
To direct the President to impose penalties pursuant to denial orders with 
respect to certain Chinese telecommunications companies that are in 
violation of the export control or sanctions laws of the United States, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 11, 2018 
Mr. GALLAGHER (for himself and Mr. GALLEGO) introduced the following bill; 
which was referred to the Committee on Foreign Affairs 
A BILL 
To direct the President to impose penalties pursuant to de-
nial orders with respect to certain Chinese telecommuni-
cations companies that are in violation of the export 
control or sanctions laws of the United States, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Telecommunications 
Denial Order Enforcement Act’’. 
VerDate Sep 11 2014 
21:54 Dec 13, 2018
Jkt 089200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H7255.IH
H7255
pbinns on DSK79D2C42PROD with BILLS
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 OR-
DERS WITH RESPECT TO COVERED TELE-
COMMUNICATIONS 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 pursu-
ant to a denial order with respect to the covered 
telecommunications company or its agents or affili-
ates as follows: 
(A) The company and when acting for or 
on their behalf, their successors, assigns, direc-
tors, officers, employees, representatives, or 
agents (hereinafter each a ‘‘denied person’’), 
may not, directly or indirectly, participate in 
any way in any transaction involving any com-
modity, software or technology (hereinafter col-
lectively referred to as ‘‘item’’) exported or to 
be exported from the United States that is sub-
VerDate Sep 11 2014 
21:54 Dec 13, 2018
Jkt 089200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H7255.IH
H7255
pbinns on DSK79D2C42PROD with BILLS
ject 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 Regula-
tions. 
(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, posses-
sion, or control of any item subject to the 
Regulations that has been or will be ex-
ported from the United States, including 
financing or other support activities related 
to a transaction whereby a denied person 
acquires or attempts to acquire such own-
ership, 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 
VerDate Sep 11 2014 
21:54 Dec 13, 2018
Jkt 089200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H7255.IH
H7255
pbinns on DSK79D2C42PROD with BILLS
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 serv-
ice any item subject to the Export Admin-
istration 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 para-
graph (1) that is made on or after such date of en-
actment. 
VerDate Sep 11 2014 
21:54 Dec 13, 2018
Jkt 089200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H7255.IH
H7255
pbinns on DSK79D2C42PROD with BILLS
(b) PROHIBITION
ON
MODIFICATION
OF
PEN-
ALTIES.—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 Gov-
ernment 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
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
VerDate Sep 11 2014 
21:54 Dec 13, 2018
Jkt 089200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H7255.IH
H7255
pbinns on DSK79D2C42PROD with BILLS
(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 For-
eign Relations of the Senate. 
(2) 
COVERED
TELECOMMUNICATIONS
COM-
PANY.—The term ‘‘covered telecommunications com-
pany’’ means any of the following: 
(A) Huawei Technologies Company or 
ZTE Corporation (or any subsidiary or affiliate 
of such entities). 
(B) Any other telecommunications com-
pany domiciled in the People’s Republic of 
China (or any subsidiary or affiliate of such en-
tities), 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 sec-
tion 102 of title 5, United States Code; 
VerDate Sep 11 2014 
21:54 Dec 13, 2018
Jkt 089200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H7255.IH
H7255
pbinns on DSK79D2C42PROD with BILLS