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SEC. 889. PROHIBITION ON CERTAIN TELECOMMUNICATIONS AND VIDEO
SURVEILLANCE SERVICES OR EQUIPMENT.
(a) Prohibition On Use Or Procurement.— (1) The head of an
executive agency may not—
(A) procure or obtain or extend or renew a contract to procure
or obtain any equipment, system, or service that uses covered
telecommunications equipment or services as a substantial or
essential component of any system, or as critical technology as
part of any system; or
(B) enter into a contract (or extend or renew a contract) with
an entity that uses any equipment, system, or service that uses
covered telecommunications equipment or services as a
substantial or essential component of any system, or as critical
technology as part of any system.
(2) Nothing in paragraph (1) shall be construed to—
(A) prohibit the head of an executive agency from procuring with
an entity to provide a service that connects to the facilities
of a third-party, such as backhaul, roaming, or interconnection
arrangements; or
(B) cover telecommunications equipment that cannot route or
redirect user data traffic or permit visibility into any user
data or packets that such equipment transmits or otherwise
handles.
(b) Prohibition On Loan And Grant Funds.— (1) The head of an
executive agency may not obligate or expend loan or grant funds
to procure or obtain, extend or renew a contract to procure or
obtain, or enter into a contract (or extend or renew a contract)
to procure or obtain the equipment, services, or systems
described in subsection (a).
(2) In implementing the prohibition in paragraph (1), heads of
executive agencies administering loan, grant, or subsidy
programs, including the heads of the Federal Communications
Commission, the Department of Agriculture, the Department of
Homeland Security, the Small Business Administration, and the
Department of Commerce, shall prioritize available funding and
technical support to assist affected businesses, institutions
and organizations as is reasonably necessary for those affected
entities to transition from covered communications equipment and
services, to procure replacement equipment and services, and to
ensure that communications service to users and customers is
sustained.
(3) Nothing in this subsection shall be construed to—
(A) prohibit the head of an executive agency from procuring with
an entity to provide a service that connects to the facilities
of a third-party, such as backhaul, roaming, or interconnection
arrangements; or
(B) cover telecommunications equipment that cannot route or
redirect user data traffic or permit visibility into any user
data or packets that such equipment transmits or otherwise
handles.
(c) Effective Dates.—The prohibition under subsection (a)(1)(A)
shall take effect one year after the date of the enactment of
this Act, and the prohibitions under subsections (a)(1)(B) and
(b)(1) shall take effect two years after the date of the
enactment of this Act.
(d) Waiver Authority.—
(1) EXECUTIVE AGENCIES.—The head of an executive agency may, on
a one-time basis, waive the requirements under subsection (a)
with respect to an entity that requests such a waiver. The
waiver may be provided, for a period of not more than two years
after the effective dates described in subsection (c), if the
entity seeking the waiver—
(A) provides a compelling justification for the additional time
to implement the requirements under such subsection, as
determined by the head of the executive agency; and
(B) submits to the head of the executive agency, who shall not
later than 30 days thereafter submit to the appropriate
congressional committees, a full and complete laydown of the
presences of covered telecommunications or video surveillance
equipment or services in the entity’s supply chain and a
phase-out plan to eliminate such covered telecommunications or
video surveillance equipment or services from the entity's
systems.
(2) DIRECTOR OF NATIONAL INTELLIGENCE.—The Director of National
Intelligence may provide a waiver on a date later than the
effective dates described in subsection (c) if the Director
determines the waiver is in the national security interests of
the United States.
(f) Definitions.—In this section:
(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term “appropriate
congressional committees”’ means—
(A) the Committee on Banking, Housing, and Urban Affairs, the
Committee on Foreign Relations, and the Committee on Homeland
Security and Governmental Affairs of the Senate; and
(B) the Committee on Financial Services, the Committee on
Foreign Affairs, and the Committee on Oversight and Government
Reform of the House of Representatives.
(2) COVERED FOREIGN COUNTRY.—The term “covered foreign country”
means the People’s Republic of China.
(3) COVERED TELECOMMUNICATIONS EQUIPMENT OR SERVICES.—The term
“covered telecommunications equipment or services” means any of
the following:
(A) Telecommunications equipment produced by Huawei Technologies
Company or ZTE Corporation (or any subsidiary or affiliate of
such entities).
(B) For the purpose of public safety, security of government
facilities, physical security surveillance of critical
infrastructure, and other national security purposes, video
surveillance and telecommunications equipment produced by Hytera
Communications Corporation, Hangzhou Hikvision Digital
Technology Company, or Dahua Technology Company (or any
subsidiary or affiliate of such entities).
(C) Telecommunications or video surveillance services provided
by such entities or using such equipment.
(D) Telecommunications or video surveillance equipment or
services produced or provided by an entity that the Secretary of
Defense, in consultation with the Director of the National
Intelligence or the Director of the Federal Bureau of
Investigation, reasonably believes to be an entity owned or
controlled by, or otherwise connected to, the government of a
covered foreign country.
(4) EXECUTIVE AGENCY.—The term “executive agency” has the
meaning given the term in section 133 of title 41, United States
Code.
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Prohibition on certain telecommunications and video surveillance
services or equipment (sec. 889)
The House bill contained a provision (sec. 880) that would
provide that, not later than January 1, 2021, no government
agency may procure or obtain, nor extend or renew a contract to
procure or obtain, nor enter into a contract with an entity that
uses covered telecommunications equipment or services with any
covered entity. The covered equipment would encompass
telecommunications and video surveillance products and services
provided by Hauwei Technologies Company, ZTE Corporation, Hytera
Communications Corporation, Hikvision Digital Technology
Company, or Hahua Technology Company, or any company that the
head of a relevant Federal agency reasonably believes is
controlled by the government of the Peoples Republic of China.
The Senate amendment contained a similar provision (sec.
6702) that would prohibit by the heads of Federal agencies
procurement of telecommunications equipment or services from Huawei Technologies Company or ZTE Corporation, any subsidiary or affiliate of such entities, or any entity controlled by the
government of the People’s Republic of China. The provision
would also prohibit entry into a contract with any entity that
uses equipment, as a critical component of any system, from
Huawei Technologies Company, the ZTE Corporation, any subsidiary
or affiliate of such entities, or any entity controlled by the
government of the People’s Republic of China. The provision
would prohibit the modification of any penalty implemented by
the United States Government with respect to a Chinese
telecommunications company upon a determination that the company
has violated an export control or sanctions law until the
President certifies to the appropriate congressional committees
that the company is compliant and cooperative with US laws and
related investigations. The provision would also reinstate
penalties imposed on ZTE on April 15, 2018 by the Acting
Assistant Secretary of the Commerce for Export Enforcement and
would limit the future modification of such penalties.
The House recedes with an amendment that would not
prohibit modification of penalties nor re-impose penalties on
the ZTE Corporation, clarify the applicable timelines and waivers, and require
the heads of executive agencies administering loan, grant, or
subsidy programs to prioritize available funding and technical
support to assist affected businesses, institutions and
organizations as is reasonably necessary for those affected
entities to transition from covered communications equipment and
services, to procure replacement equipment and services, and to
ensure that communications services to users and customers is
sustained.
The conferees stress the importance of
assisting rural communications service providers, anchor
institutions, and public safety organizations in replacing
covered equipment and associated support services contracts as
soon as practicable. |
