Title: Defending America’s 5G Future Act
Policy area: Foreign Trade and International Finance

Summary:
Defending America's 5G Future Act
This bill prohibits transactions involving the information and communications technology of a foreign adversary when such transactions pose undue risks involving sabotage or subversion, catastrophic effects on critical U.S. infrastructure or the digital economy, or U.S. national-security or foreign-policy interests.
Additionally, the bill prohibits the removal of Huawei Technology Co. Ltd. (Huawei) from the list of entities subject to certain license requirements for exports and authorizes Congress to disallow any export licenses granted to Huawei or its subsidiaries or affiliates.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2118 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 2118

 To prohibit United States persons from dealing in certain information 
and communications technology or services from foreign adversaries and 
    to require the approval of Congress to terminate certain export 
 controls in effect with respect to Huawei Technologies Co. Ltd., and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 15, 2019

  Mr. Cotton (for himself, Mr. Van Hollen, Mr. Rubio, Mr. Romney, Mr. 
 Warner, and Mr. Blumenthal) introduced the following bill; which was 
read twice and referred to the Committee on Banking, Housing, and Urban 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
 To prohibit United States persons from dealing in certain information 
and communications technology or services from foreign adversaries and 
    to require the approval of Congress to terminate certain export 
 controls in effect with respect to Huawei Technologies Co. Ltd., 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 ``Defending America's 5G Future Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Export administration regulations.--The term ``Export 
        Administration Regulations'' means subchapter C of chapter VII 
        of title 15, Code of Federal Regulations.
            (2) Foreign adversary.--The term ``foreign adversary'' 
        means any foreign government or foreign person engaged in a 
        long-term pattern or serious instances of conduct significantly 
        adverse to the national security or foreign policy interests of 
        the United States or security and safety of United States 
        persons.
            (3) Foreign person.--The term ``foreign person'' means any 
        person that is not a United States person.
            (4) Information and communications technology or 
        services.--The term ``information and communications technology 
        or services'' means any hardware, software, or other product or 
        service primarily intended to fulfill or enable the function of 
        information or data processing, storage, retrieval, or 
        communication by electronic means, including transmission, 
        storage, and display.
            (5) United states person.--The term ``United States 
        person'' means--
                    (A) any United States citizen or alien lawfully 
                admitted for permanent residence in the United States;
                    (B) any entity organized under the laws of the 
                United States or any jurisdiction within the United 
                States, including a foreign branch of such an entity; 
                or
                    (C) any person in the United States.

SEC. 3. PROHIBITION ON DEALING IN INFORMATION AND COMMUNICATIONS 
              TECHNOLOGY OR SERVICES FROM FOREIGN ADVERSARIES.

    (a) In General.--No United States person may engage in a 
transaction for the acquisition, importation, transfer, installation, 
dealing in, or use of any information and communications technology or 
service by a United States person, or with respect to any property 
subject to the jurisdiction of the United States, if--
            (1) the transaction involves any property in which any 
        foreign country or foreign person has any interest (including 
        through an interest in a contract for the provision of the 
        technology or service);
            (2) notwithstanding any contract entered into or any 
        license or permit issued before the date of the enactment of 
        this Act, the transaction is initiated or pending on or after 
        such date of enactment; and
            (3) the Secretary of Commerce, in consultation with the 
        officials specified in subsection (b), determines that--
                    (A) the transaction involves information and 
                communications technology or services designed, 
                developed, manufactured, or supplied, by persons owned 
                by, controlled by, or subject to the jurisdiction or 
                direction of a foreign adversary; and
                    (B) the transaction--
                            (i) poses an undue risk of sabotage to or 
                        subversion of the design, integrity, 
                        manufacturing, production, distribution, 
                        installation, operation, or maintenance of 
                        information and communications technology or 
                        services in the United States;
                            (ii) poses an undue risk of catastrophic 
                        effects on the security or resiliency of United 
                        States critical infrastructure or the digital 
                        economy of the United States; or
                            (iii) otherwise poses an unacceptable risk 
                        to the national security or foreign policy 
                        interests of the United States or the security 
                        and safety of United States persons.
    (b) Officials Specified.--The officials specified in this 
subsection are the following:
            (1) The Secretary of the Treasury.
            (2) The Secretary of State.
            (3) The Secretary of Defense.
            (4) The Attorney General.
            (5) The Secretary of Homeland Security.
            (6) The United States Trade Representative.
            (7) The Director of National Intelligence.
            (8) The Administrator of General Services.
            (9) The Chairman of the Federal Communications Commission.
            (10) The heads of such other Federal agencies as the 
        Secretary of Commerce considers appropriate.
    (c) Mitigation Measures.--The Secretary of Commerce, in 
consultation with the officials specified in subsection (b), as 
appropriate, may establish or negotiate measures to mitigate concerns 
that are the basis for a determination under subsection (a)(3). Such 
measures may serve as a precondition to the approval of a transaction 
or of a class of transactions that would otherwise be prohibited by 
subsection (a).
    (d) Regulations.--
            (1) In general.--Not later than 150 days after the date of 
        the enactment of this Act, the Secretary of Commerce, in 
        consultation with the officials specified in subsection (b), 
        shall prescribe regulations to carry out this section.
            (2) Inclusions.--The regulations prescribed under paragraph 
        (1) may include regulations with respect to--
                    (A) determining that countries or persons are 
                foreign adversaries for purposes of subsection 
                (a)(3)(A);
                    (B) identifying persons owned by, controlled by, or 
                subject to the jurisdiction or direction of foreign 
                adversaries for purposes of subsection (a)(3)(A);
                    (C) identifying technologies or countries with 
                respect to which transactions involving information and 
                communications technology or services warrant 
                particular scrutiny under subsection (a);
                    (D) establishing procedures to license transactions 
                otherwise prohibited by subsection (a);
                    (E) establishing criteria, consistent with section 
                1 of this order, by which particular technologies or 
                participants in the market for information and 
                communications technology or services may be recognized 
                as categorically included in or as categorically 
                excluded from the prohibition under subsection (a); and
                    (F) identifying a mechanism and relevant factors 
                for the negotiation of mitigation measures under 
                subsection (c).
    (e) Implementation; Penalties.--
            (1) Implementation.--The Secretary of Commerce 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.

SEC. 4. CONTINUATION IN EFFECT OF EXPORT CONTROLS WITH RESPECT TO 
              HUAWEI TECHNOLOGIES CO. LTD.

    (a) In General.--The Secretary of Commerce shall not remove Huawei 
Technologies Co. Ltd., and its subsidiaries and affiliates, from the 
entity list maintained by the Bureau of Industry and Security and set 
forth in Supplement No. 4 to part 744 of the Export Administration 
Regulations, unless--
            (1) the Secretary submits to Congress a request for 
        approval of such removal; and
            (2) there is enacted into law a joint resolution of 
        approval under subsection (b).
    (b) Joint Resolutions of Approval.--
            (1) Joint resolution of approval defined.--In this 
        subsection, the term ``joint resolution of approval'' means a 
        joint resolution of either House of Congress the sole matter 
        after the resolving clause of which is as follows: ``That 
        Congress approves the removal of Huawei Technologies Co. Ltd., 
        and its subsidiaries and affiliates, from the entity list 
        maintained by the Bureau of Industry and Security and set forth 
        in Supplement No. 4 to part 744 of the Export Administration 
        Regulations, pursuant to the request of the Secretary of 
        Commerce for such removal submitted to Congress on ___.'', with 
        the blank space being filled with the appropriate date.
            (2) Introduction; committee referral.--A joint resolution 
        of approval--
                    (A) in the House of Representatives--
                            (i) may be introduced by the Speaker or the 
                        minority leader; and
                            (ii) shall be referred to the Committee on 
                        Financial Services; and
                    (B) in the Senate--
                            (i) may be introduced by the majority 
                        leader or the minority leader; and
                            (ii) shall be referred to the Committee on 
                        Banking, Housing, and Urban Affairs.
            (3) Committee discharge and floor consideration.--The 
        provisions of paragraphs (4), (5) (other than subparagraph (A) 
        of paragraph (5)), and (6) of section 216(c) of the Countering 
        America's Adversaries Through Sanctions Act (22 U.S.C. 9511(c)) 
        apply to a joint resolution of approval under this subsection 
        to the same extent as such provisions apply to joint resolution 
        of approval under such section 216(c).
            (4) Rules of house of representatives and senate.--This 
        subsection is enacted by Congress--
                    (A) as an exercise of the rulemaking power of the 
                Senate and the House of Representatives, respectively, 
                and as such is deemed a part of the rules of each 
                House, respectively, and supersedes other rules only to 
                the extent that it is inconsistent with such rules; and
                    (B) with full recognition of the constitutional 
                right of either House to change the rules (so far as 
                relating to the procedure of that House) at any time, 
                in the same manner, and to the same extent as in the 
                case of any other rule of that House.

SEC. 5. CONGRESSIONAL DISAPPROVAL OF EXPORT LICENSES ISSUED TO HUAWEI 
              TECHNOLOGIES CO. LTD., OR ITS SUBSIDIARIES OR AFFILIATES.

    (a) Report Required.--Not later than 15 days after issuing a 
license to or with respect to Huawei Technologies Co. Ltd., or any of 
its subsidiaries or affiliates, pursuant to the Export Administration 
Regulations, the Secretary of Commerce shall submit to Congress a 
report on the license and the reasons for issuing the license.
    (b) Congressional Disapproval.--A license described in subsection 
(a) shall have no force or effect on or after the date of the enactment 
of a joint resolution of disapproval under subsection (c).
    (c) Joint Resolutions of Disapproval.--
            (1) Joint resolution of disapproval defined.--In this 
        subsection, the term ``joint resolution of disapproval'' means 
        a joint resolution of either House of Congress the sole matter 
        after the resolving clause of which is as follows: ``That 
        Congress does not approve the license issued to or with respect 
        to Huawei Technologies Co. Ltd., or one of its subsidiaries or 
        affiliates, under the Export Administration Regulations, 
        relating to ___, notice of which was submitted to Congress on 
        ___.'', with the first blank space being filled with a brief 
        description of the items covered by the license and the second 
        blank space being filled with the appropriate date.
            (2) Introduction; committee referral.--A joint resolution 
        of disapproval--
                    (A) in the House of Representatives--
                            (i) may be introduced by the Speaker or the 
                        minority leader during the 30-day period 
                        beginning on the date on which the report is 
                        submitted under subsection (a); and
                            (ii) shall be referred to the Committee on 
                        Financial Services; and
                    (B) in the Senate--
                            (i) may be introduced by the majority 
                        leader or the minority leader during the 30-day 
                        period beginning on the date on which the 
                        report is submitted under subsection (a); and
                            (ii) shall be referred to the Committee on 
                        Banking, Housing, and Urban Affairs.
            (3) Committee discharge and floor consideration.--The 
        provisions of paragraphs (4), (5) (other than subparagraph (A) 
        of paragraph (5)), and (6) of section 216(c) of the Countering 
        America's Adversaries Through Sanctions Act (22 U.S.C. 9511(c)) 
        apply to a joint resolution of disapproval under this 
        subsection to the same extent as such provisions apply to joint 
        resolution of disapproval under such section 216(c).
            (4) Rules of house of representatives and senate.--This 
        subsection is enacted by Congress--
                    (A) as an exercise of the rulemaking power of the 
                Senate and the House of Representatives, respectively, 
                and as such is deemed a part of the rules of each 
                House, respectively, and supersedes other rules only to 
                the extent that it is inconsistent with such rules; and
                    (B) with full recognition of the constitutional 
                right of either House to change the rules (so far as 
                relating to the procedure of that House) at any time, 
                in the same manner, and to the same extent as in the 
                case of any other rule of that House.
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