NETWORKS Act
Bill: S.5239 | Sponsor: Sen. Cotton, Tom (R-AR)
Policy area: International Affairs

Summary:
Neutralizing Emerging Threats from Wireless OEMs Receiving direction from Kleptocracies and Surveillance states Act or the NETWORKS Act
This bill requires the President to block and prohibit significant transactions and interests in property of a foreign individual or entity that (1) produces fifth- or future-generation telecommunications technology; and (2) engages in economic or industrial espionage, or other related illicit activities, involving trade secrets or proprietary information owned by a U.S. individual or entity.

To impose sanctions with respect to foreign telecommunications 
 companies engaged in economic or industrial espionage against United 
                States persons, 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 ``Neutralizing Emerging Threats from 
Wireless OEMs Receiving direction from Kleptocracies and Surveillance 
states Act'' or the ``NETWORKS Act''.

SEC. 2. IMPOSITION OF SANCTIONS WITH RESPECT TO ECONOMIC OR INDUSTRIAL 
              ESPIONAGE BY FOREIGN TELECOMMUNICATIONS COMPANIES.

    (a) In General.--On and after the date that is 30 days after the 
date of the enactment of this Act, the President shall exercise all of 
the powers granted to the President under the International Emergency 
Economic Powers Act (50 U.S.C. 1701 et seq.) to the extent necessary to 
block and prohibit all significant transactions in property and 
interests in property of a foreign person described in subsection (b) 
if such property and interests in property are in the United States, 
come within the United States, or are or come within the possession or 
control of a United States person.
    (b) Foreign Persons Described.--A foreign person is described in 
this subsection if the President determines that the person, on or 
after the date of the enactment of this Act--
            (1) produces fifth or future generation telecommunications 
        technology; and
            (2) engages in--
                    (A) economic or industrial espionage with respect 
                to trade secrets or proprietary information owned by 
                United States persons; or
                    (B) other related illicit activities, including 
                violations of sanctions imposed by the United States.
    (c) Exceptions.--
            (1) Exception for intelligence activities.--Sanctions under 
        this section shall not apply to any activity subject to the 
        reporting requirements under title V of the National Security 
        Act of 1947 (50 U.S.C. 3091 et seq.) or any authorized 
        intelligence activities of the United States.
            (2) Exception relating to importation of goods.--
                    (A) In general.--The authorities and requirements 
                to impose sanctions authorized under this section shall 
                not include the authority or requirement to impose 
                sanctions on the importation of goods.
                    (B) Good defined.--In this paragraph, the term 
                ``good'' means any article, natural or manmade 
                substance, material, supply or manufactured product, 
                including inspection and test equipment, and excluding 
                technical data.
    (d) Waiver.--The President may waive the application of sanctions 
under this section with respect to a foreign person for renewable 
periods of not more than 90 days each if the President determines and 
reports to Congress that such a waiver is vital to the national 
security interests of the United States.
    (e) Implementation; Penalties.--
            (1) Implementation.--The President may exercise the 
        authorities provided to the President under sections 203 and 
        205 of the International Emergency Economic Powers Act (50 
        U.S.C. 1702 and 1704) to the extent necessary to carry out this 
        section.
            (2) Penalties.--A person that violates, attempts to 
        violate, conspires to violate, or causes a violation of 
        subsection (a) or any regulation, license, or order issued to 
        carry out that subsection shall be subject to the penalties set 
        forth in subsections (b) and (c) of section 206 of the 
        International Emergency Economic Powers Act (50 U.S.C. 1705) to 
        the same extent as a person that commits an unlawful act 
        described in subsection (a) of that section.
    (f) Definitions.--
            (1) In general.--In this section:
                    (A) Economic or industrial espionage.--The term 
                ``economic or industrial espionage'' means--
                            (i) stealing a trade secret or proprietary 
                        information or appropriating, taking, carrying 
                        away, or concealing, or by fraud, artifice, or 
                        deception obtaining, a trade secret or 
                        proprietary information without the 
                        authorization of the owner of the trade secret 
                        or proprietary information;
                            (ii) copying, duplicating, downloading, 
                        uploading, destroying, transmitting, 
                        delivering, sending, communicating, or 
                        conveying a trade secret or proprietary 
                        information without the authorization of the 
                        owner of the trade secret or proprietary 
                        information; or
                            (iii) knowingly receiving, buying, or 
                        possessing a trade secret or proprietary 
                        information that has been stolen or 
                        appropriated, obtained, or converted without 
                        the authorization of the owner of the trade 
                        secret or proprietary information.
                    (B) Fifth or future generation telecommunications 
                technology.--The term ``fifth or future generation 
                telecommunications technology'' means 
                telecommunications technology that conforms to the 
                technical standards followed by the telecommunications 
                industry for telecommunications technology that is 
                commonly known in the industry as fifth generation or 
                future generation technology.
                    (C) Foreign person.--The term ``foreign person'' 
                means any person that is not a United States person.
                    (D) Knowingly.--The term ``knowingly'', with 
                respect to conduct, a circumstance, or a result, means 
                that a person has actual knowledge, or should have 
                known, of the conduct, the circumstance, or the result.
                    (E) Person.--The term ``person'' means an 
                individual or entity.
                    (F) Proprietary information.--The term 
                ``proprietary information'' has the meaning given that 
                term in section 1637(d) of the Carl Levin and Howard P. 
                ``Buck'' McKeon National Defense Authorization Act for 
                Fiscal Year 2015 (50 U.S.C. 1708(d)).
                    (G) Third and fourth generation telecommunications 
                networks.--The term ``third and fourth generation 
                telecommunications networks'' means telecommunications 
                networks that conform to the technical standards 
                followed by the telecommunications industry for 
                telecommunications networks that are commonly known in 
                the industry as third or fourth generation networks.
                    (H) Trade secret.--The term ``trade secret'' has 
                the meaning given that term in section 1839 of title 
                18, United States Code.
                    (I) United states person.--The term ``United States 
                person'' means--
                            (i) a United States citizen or an alien 
                        lawfully admitted for permanent residence to 
                        the United States; or
                            (ii) an entity organized under the laws of 
                        the United States or any jurisdiction within 
                        the United States, including a foreign branch 
                        of such an entity.
            (2) Determination of significance.--For the purposes of 
        this section, in determining if transactions are significant, 
        the President may consider the totality of the facts and 
        circumstances, including factors similar to the factors set 
        forth in section 561.404 of title 31, Code of Federal 
        Regulations (or any corresponding similar regulation or 
        ruling).
            (3) Rule of construction.--For purposes of this section, a 
        transaction shall not be construed to include--
                    (A) participation in an international standards-
                setting body or the activities of such a body; or
                    (B) a transaction involving existing third or 
                fourth generation telecommunications networks.
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