[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3469 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
2d Session
S. 3469
To impose sanctions with respect to foreign telecommunications
companies engaged in economic or industrial espionage against United
States persons, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 12, 2020
Mr. Cotton (for himself, Mr. Schumer, Mr. Van Hollen, and Mr. Scott of
Florida) introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
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.
<all>