I
107TH CONGRESS
1ST SESSION
H. R. 3268
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
NOVEMBER 8, 2001
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 enti-
ty controlled by a foreign government.
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 ‘‘Foreign Government
Ownership Act of 2001’’.
SEC. 2. FOREIGN GOVERNMENT.
Title VII of the Communications Act of 1934 (47
U.S.C. 601 et seq.) is amended by adding at the end there-
of the following:
‘‘SEC. 715. LIMITATIONS ON FOREIGN GOVERNMENT OWN-
ERSHIP.
‘‘(a) PROHIBITION.—Notwithstanding any other pro-
vision of this Act or any other law to the contrary, no
license, permit, or operating authority under this Act may
be granted to or held by a corporation, joint venture, part-
nership, other business organization, trust, or other entity
after the date of enactment of the Foreign Government
Ownership Act of 2001, if that corporation, joint venture,
partnership, other business organization, trust, or other
entity is directly or indirectly controlled by a foreign gov-
ernment or its representative, as determined under sub-
section (c).
‘‘(b) PROHIBITION IS ABSOLUTE.—The Commission
may not waive the application of subsection (a) under any
other authority granted to the Commission under this or
any other Act or under any Commission order or rule.
‘‘(c) TEST OF CONTROL.—A corporation, joint ven-
ture, partnership, other business organization, trust, or
other entity shall be considered to be directly or indirectly
controlled by a foreign government or its representatives
if—
‘‘(1) more than 25 percent of the ownership,
voting rights, capital stock, or other interest in that
corporation or other entity is owned, held, or con-
trolled, directly or indirectly, by a foreign govern-
ment or its representatives;
‘‘(2) a foreign government or its representatives
has the authority to approve or disapprove the ap-
pointment or employment of any officer of the cor-
poration, joint venture, partnership, other business
organization, trust, or other entity; or
‘‘(3) a foreign government or its representative
has the authority to exercise control over such cor-
poration, joint venture, partnership, other business
organization, trust, or other entity in any other
manner.
‘‘(d) REPRESENTATIVES.—A representative of a for-
eign government shall include any person or entity that
acts on the instruction of a foreign government.
‘‘(e) ENFORCEMENT.—The Commission shall—
‘‘(1) revoke any license, permit, or operating
authority held in violation of subsection (a); and
‘‘(2) auction or otherwise reassign any such li-
cense, permit, or operating authority revoked under
paragraph (1) within 90 days after it is revoked.
‘‘(f) TRANSITION PERIOD.—Notwithstanding sub-
section (e), the Commission may not commence enforce-
ment action under that subsection against a corporation,
joint venture, partnership, other business organization,
trust, or other entity to which this section applies for 6
months following the date of enactment of the Foreign
Government Ownership Act of 2001.’’.
Æ