[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1795 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 1795

    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 HOUSE OF REPRESENTATIVES

                             March 3, 2025

  Ms. Houlahan (for herself and Mr. Strong) introduced the following 
      bill; which was referred to the Committee on Foreign 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. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) secure telecommunications networks, both domestically 
        and within partner and allied nations, are important to the 
        national security of the United States;
            (2) the risks posed by untrusted telecommunications 
        vendors, particularly those based in the People's Republic of 
        China, to communications, data security, and the viability of 
        networks outweigh any potential benefits; and
            (3) the United States Government should use the tools of 
        economic statecraft to promote secure telecommunications 
        networks.

SEC. 3. IMPOSITION OF SANCTIONS WITH RESPECT TO ECONOMIC OR INDUSTRIAL 
              ESPIONAGE BY FOREIGN TELECOMMUNICATIONS COMPANIES.

    (a) In General.--On and after the date that is 90 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) conducts business relating to such telecommunications 
        technology in a manner contrary to the United States' national 
        security interests.
    (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 the provision of humanitarian 
        assistance.--Sanctions under this section may not be imposed 
        with respect to transactions or the facilitation of 
        transactions for--
                    (A) the sale of agricultural commodities, food, 
                medicine, or medical devices;
                    (B) the provision of humanitarian assistance;
                    (C) financial transactions relating to humanitarian 
                assistance; or
                    (D) transporting goods or services that are 
                necessary to carry out operations relating to 
                humanitarian assistance.
    (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) 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.
                    (B) Foreign person.--The term ``foreign person'' 
                means any person that is not a United States person.
                    (C) 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.
                    (D) Person.--The term ``person'' means an 
                individual or entity.
                    (E) 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.
                    (F) Untrusted telecommunications vendor.--The term 
                ``untrusted telecommunications vendor'' has the meaning 
                given to the term ``covered communications equipment or 
                service'' in section 9 of the Secure and Trusted 
                Communications Network Act of 2019 (47 U.S.C. 1608).
            (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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