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I
116TH CONGRESS
2D SESSION
H. R. 6235
To impose sanctions with respect to foreign telecommunications companies
engaged in economic or industrial espionage against United States per-
sons, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 12, 2020
Mr. GALLAGHER
(for himself, Mr. GALLEGO, Ms. CHENEY, and Ms.
HOULAHAN) introduced the following bill; which was referred to the Com-
mittee on Foreign Affairs
A BILL
To impose sanctions with respect to foreign telecommuni-
cations companies engaged in economic or industrial espi-
onage against United States persons, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Neutralizing Emerging
4
Threats from Wireless OEMs Receiving direction from
5
Kleptocracies and Surveillance states Act’’ or the ‘‘NET-
6
WORKS Act’’.
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SEC. 2. IMPOSITION OF SANCTIONS WITH RESPECT TO ECO-
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NOMIC OR INDUSTRIAL ESPIONAGE BY FOR-
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EIGN TELECOMMUNICATIONS COMPANIES.
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(a) IN GENERAL.—On and after the date that is 30
4
days after the date of the enactment of this Act, the Presi-
5
dent shall exercise all of the powers granted to the Presi-
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dent under the International Emergency Economic Powers
7
Act (50 U.S.C. 1701 et seq.) to the extent necessary to
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block and prohibit all significant transactions in property
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and interests in property of a foreign person described in
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subsection (b) if such property and interests in property
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are in the United States, come within the United States,
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or are or come within the possession or control of a United
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States person.
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(b) FOREIGN PERSONS DESCRIBED.—A foreign per-
15
son is described in this subsection if the President deter-
16
mines that the person, on or after the date of the enact-
17
ment of this Act—
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(1) produces fifth or future generation tele-
19
communications technology; and
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(2) engages in—
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(A) economic or industrial espionage with
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respect to trade secrets or proprietary informa-
23
tion owned by United States persons; or
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(B) other related illicit activities, including
1
violations of sanctions imposed by the United
2
States.
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(c) EXCEPTIONS.—
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(1) EXCEPTION
FOR
INTELLIGENCE
ACTIVI-
5
TIES.—Sanctions under this section shall not apply
6
to any activity subject to the reporting requirements
7
under title V of the National Security Act of 1947
8
(50 U.S.C. 3091 et seq.) or any authorized intel-
9
ligence activities of the United States.
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(2) EXCEPTION RELATING TO IMPORTATION OF
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GOODS.—
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(A) IN GENERAL.—The authorities and re-
13
quirements to impose sanctions authorized
14
under this section shall not include the author-
15
ity or requirement to impose sanctions on the
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importation of goods.
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(B) GOOD DEFINED.—In this paragraph,
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the term ‘‘good’’ means any article, natural or
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manmade substance, material, supply or manu-
20
factured product, including inspection and test
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equipment, and excluding technical data.
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(d) WAIVER.—The President may waive the applica-
23
tion of sanctions under this section with respect to a for-
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eign person for renewable periods of not more than 90
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days each if the President determines and reports to Con-
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gress that such a waiver is vital to the national security
2
interests of the United States.
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(e) IMPLEMENTATION; PENALTIES.—
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(1) IMPLEMENTATION.—The President may ex-
5
ercise the authorities provided to the President
6
under sections 203 and 205 of the International
7
Emergency Economic Powers Act (50 U.S.C. 1702
8
and 1704) to the extent necessary to carry out this
9
section.
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(2) PENALTIES.—A person that violates, at-
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tempts to violate, conspires to violate, or causes a
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violation of subsection (a) or any regulation, license,
13
or order issued to carry out that subsection shall be
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subject to the penalties set forth in subsections (b)
15
and (c) of section 206 of the International Emer-
16
gency Economic Powers Act (50 U.S.C. 1705) to the
17
same extent as a person that commits an unlawful
18
act described in subsection (a) of that section.
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(f) DEFINITIONS.—
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(1) IN GENERAL.—In this section:
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(A) ECONOMIC
OR
INDUSTRIAL
ESPIO-
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NAGE.—The term ‘‘economic or industrial espi-
23
onage’’ means—
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(i) stealing a trade secret or propri-
1
etary information or appropriating, taking,
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carrying away, or concealing, or by fraud,
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artifice, or deception obtaining, a trade se-
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cret or proprietary information without the
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authorization of the owner of the trade se-
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cret or proprietary information;
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(ii) copying, duplicating, downloading,
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uploading, destroying, transmitting, deliv-
9
ering, sending, communicating, or con-
10
veying a trade secret or proprietary infor-
11
mation without the authorization of the
12
owner of the trade secret or proprietary in-
13
formation; or
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(iii) knowingly receiving, buying, or
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possessing a trade secret or proprietary in-
16
formation that has been stolen or appro-
17
priated, obtained, or converted without the
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authorization of the owner of the trade se-
19
cret or proprietary information.
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(B) FIFTH
OR
FUTURE
GENERATION
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TELECOMMUNICATIONS
TECHNOLOGY.—The
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term ‘‘fifth or future generation telecommuni-
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cations technology’’ means telecommunications
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technology that conforms to the technical stand-
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ards followed by the telecommunications indus-
1
try for telecommunications technology that is
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commonly known in the industry as fifth gen-
3
eration or future generation technology.
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(C) FOREIGN PERSON.—The term ‘‘foreign
5
person’’ means any person that is not a United
6
States person.
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(D) KNOWINGLY.—The term ‘‘knowingly’’,
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with respect to conduct, a circumstance, or a
9
result, means that a person has actual knowl-
10
edge, or should have known, of the conduct, the
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circumstance, or the result.
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(E) PERSON.—The term ‘‘person’’ means
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an individual or entity.
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(F)
PROPRIETARY
INFORMATION.—The
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term ‘‘proprietary information’’ has the mean-
16
ing given that term in section 1637(d) of the
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Carl Levin and Howard P. ‘‘Buck’’ McKeon
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National Defense Authorization Act for Fiscal
19
Year 2015 (50 U.S.C. 1708(d)).
20
(G) THIRD
AND
FOURTH
GENERATION
21
TELECOMMUNICATIONS NETWORKS.—The term
22
‘‘third and fourth generation telecommuni-
23
cations networks’’ means telecommunications
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networks that conform to the technical stand-
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•HR 6235 IH
ards followed by the telecommunications indus-
1
try for telecommunications networks that are
2
commonly known in the industry as third or
3
fourth generation networks.
4
(H) TRADE SECRET.—The term ‘‘trade se-
5
cret’’ has the meaning given that term in sec-
6
tion 1839 of title 18, United States Code.
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(I) UNITED STATES PERSON.—The term
8
‘‘United States person’’ means—
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(i) a United States citizen or an alien
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lawfully admitted for permanent residence
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to the United States; or
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(ii) an entity organized under the laws
13
of the United States or any jurisdiction
14
within the United States, including a for-
15
eign branch of such an entity.
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(2) DETERMINATION
OF
SIGNIFICANCE.—For
17
the purposes of this section, in determining if trans-
18
actions are significant, the President may consider
19
the totality of the facts and circumstances, including
20
factors similar to the factors set forth in section
21
561.404 of title 31, Code of Federal Regulations (or
22
any corresponding similar regulation or ruling).
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(3) RULE OF CONSTRUCTION.—For purposes of
1
this section, a transaction shall not be construed to
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include—
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(A) participation in an international stand-
4
ards-setting body or the activities of such a
5
body; or
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(B) a transaction involving existing third
7
or fourth generation telecommunications net-
8
works.
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Æ
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