,i #aafth ,,congress #ast ,session ,h4 ,r4 #ddei ,,in ,,the ,,house ,,of ,,representatives ,september #bd1 #bjai,mr4 ,pallone 7for himself1 ,mr4 ,walden1 ,ms4 ,matsui1 and ,mr4 ,guthrie7 introduced the following bill2 which was referred to the ,committee on ,energy and ,commerce1 and in addition to the ,committee on ,oversight and ,reform1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to prohibit ,federal funds from being used to purchase communications equipment or services posing national security risks1 to provide for the establishment of a reimbursement program for the replacement of communications equipment or services posing such risks1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,secure and ,trusted ,communications ,networks ,act of #bjai4 #b4 ,determination of communications equipment or services posing national security risks 7a7 ,publication of covered communications equipment or services list ,not later than #a year after the date of the enactment of this ,act1 the ,commission shall publish on its website a list of covered communications equipment or services4 7b7 ,determination by ,commission ,the ,commission shall place on the list published under subsection 7a7 any communications equipment or service1 if and only if the ,commission determines that such equipment or service-- 7#a7 is produced or provided by-- 7,a7 ,huawei ,technologies ,co4 ,limited1 ,zhongxing ,telecommunications ,equipment ,corporation1 or any subsidiary or affiliate of either such entity2 7,b7 any successor to any entity described in subparagraph 7,a72 or 7,c7 any other entity1 if the ,commission determines1 based exclusively on the determinations described in paragraphs 7#a7 through 7#d7 of subsection 7c71 that such equipment or service produced or provided by such entity poses an unacceptable risk to the national security of the ,united ,states or the security and safety of ,united ,states persons2 and 7#b7 is capable of-- 7,a7 routing or redirecting user data traffic or permitting visibility into any user data or packets that such equipment or service transmits or otherwise handles2 or 7,b7 causing the network of a provider of advanced communications service to be disrupted remotely4 7c7 ,reliance on certain other determinations ,in making a determination under subsection 7b77#a77;,c71 the ,commission shall rely solely on one or more of the following determinations3 7#a7 ,a specific determination made by any executive branch interagency body with appropriate national security expertise1 including the ,federal ,acquisition ,security ,council established under section #acbb7;a7 of title #da1 ,united ,states ,code4 7#b7 ,a specific determination made by the ,bureau of ,industry and ,security of the ,department of ,commerce to place an entity on the entity list maintained by the ,bureau and set forth in ,supplement ,no4 #d to part #gdd of the ,export ,administration ,regulations 7subchapter ,c of chapter ,,vii of title #ae1 ,code of ,federal ,regulations74 7#c7 ,a specific determination made pursuant to ,executive ,order #achgc 7#hd ,fed4 ,reg4 #bbfhi2 relating to securing the information and communications technology and services supply chain71 including any determination made by the ,department of ,commerce pursuant to regulations promulgated to implement such ,executive order4 7#d7 ,the communications equipment or service being covered telecommunications equipment or services1 as defined in section #hhi7;f77#c7 of the ,john ,s4 ,mc,cain ,national ,defense ,authorization ,act for ,fiscal ,year #bjai 7,public ,law #aae-bcb2 #acb ,stat4 #aiah74 7d7 ,updating of list ,the ,commission shall periodically update the list published under subsection 7a71 as necessary to protect national security and to address changes in the determinations described in paragraphs 7#a7 through 7#d7 of subsection 7c74 ,for each #ab-month period during which the list is not updated1 the ,commission shall notify the public that no updates were necessary during such period to protect national security or to address changes in such determinations4 #c4 ,prohibition on use of ,federal funds 7a7 ,in general 7#a7 ,prohibition ,federal funds may not be used to purchase1 rent1 lease1 or otherwise obtain any covered communications equipment or service or to maintain any covered communications equipment or service previously purchased1 rented1 leased1 or otherwise obtained4 7#b7 ,timing ,paragraph 7#a7 shall apply with respect to any covered communications equipment or service beginning on the date that is #fj days after the date on which the ,commission places such equipment or service on the list required by section #b7;a74 ,in the case of any covered communications equipment or service that is on the initial list published under such section1 such equipment or service shall be treated as being placed on the list on the date on which such list is published4 7b7 ,completion of proceeding ,not later than #ij days after the date of the enactment of this ,act1 the ,commission shall adopt a ,report and ,order in the matter of ,protecting ,against ,national ,security ,threats to the ,communications ,supply ,chain ,through ,,fcc ,programs 7,,wc ,docket ,no4 #ah-hi7 that implements subsection 7a71 to the extent such subsection applies to a program administered by the ,commission4 7c7 ,application to other agencies ,not later than #ahj days after the date of the enactment of this ,act1 the head of each ,federal agency that administers a program through which ,federal funds are made available shall update the regulations for the program to comply with subsection 7a74 #d4 ,secure and ,trusted ,communications ,networks ,reimbursement ,program 7a7 ,in general ,the ,commission shall establish a reimbursement program1 to be known as the ,secure and ,trusted ,communications ,networks ,reimbursement ,program1 to make reimbursements to providers of advanced communications service to replace covered communications equipment or services4 7b7 ,eligibility ,the ,commission may not make a reimbursement under the ,program to a provider of advanced communications service unless the provider-- 7#a7 has #b1jjj1jjj or fewer customers2 and 7#b7 makes all of the certifications required by subsection 7d77#e74 7c7 ,use of funds 7#a7 ,in general ,a recipient of a reimbursement under the ,program shall use reimbursement funds solely for the purposes of-- 7,a7 permanently removing covered communications equipment or services purchased1 rented1 leased1 or otherwise obtained before ,august #ad1 #bjah1 and replacing such equipment or services with communications equipment or services that are not covered communications equipment or services2 and 7,b7 disposing of the equipment or services removed as described in subparagraph 7,a7 in accordance with the requirements under subsection 7d77#h74 7#b7 ,limitations ,a recipient of a reimbursement under the ,program may not use reimbursement funds to-- 7,a7 remove1 replace1 or dispose of any covered communications equipment or service purchased1 rented1 leased1 or otherwise obtained on or after ,august #ad1 #bjah2 7,b7 purchase1 rent1 lease1 or otherwise obtain any covered communications equipment or service1 using reimbursement funds or any other funds 7including funds derived from private sources72 or 7,c7 make network upgrades that go beyond the replacement of covered communications equipment or services1 as determined by the ,commission4 7d7 ,implementation 7#a7 ,regulations ,not later than #bgj days after the date of the enactment of this ,act1 the ,commission shall promulgate regulations to implement the ,program4 7#b7 ,suggested replacements 7,a7 ,development of list ,the ,commission shall develop a list of suggested replacements of both physical and virtual communications equipment1 application and management software1 and services4 7,b7 ,neutrality ,the list developed under subparagraph 7,a7 shall be technology neutral and may not advantage the use of reimbursement funds for capital expenditures over operational expenditures1 to the extent that the ,commission determines that communications services can serve as an adequate substitute for the installation of communications equipment4 7#c7 ,application process 7,a7 ,in general ,the ,commission shall develop an application process and related forms and materials for the ,program4 7,b7 ,cost estimate 7i7 ,initial estimate ,the ,commission shall require an applicant to provide an initial reimbursement cost estimate at the time of application1 with supporting materials substantiating the costs4 7ii7 ,updates ,during and after the application review process1 the ,commission may require an applicant to-- 7,i7 update the initial reimbursement cost estimate submitted under clause 7i72 and 7,,ii7 submit additional supporting materials substantiating an updated cost estimate submitted under subclause 7,i74 7,c7 ,mitigation of burden ,in developing the application process under this paragraph1 the ,commission shall take reasonable steps to mitigate the administrative burdens and costs associated with the application process1 while taking into account the need to avoid waste1 fraud1 and abuse in the ,program4 7#d7 ,application review process 7,a7 ,deadline 7i7 ,in general ,except as provided in clause 7ii7 and subparagraph 7,b71 the ,commission shall approve or deny an application for a reimbursement under the ,program not later than #ij days after the date of the submission of the application4 7ii7 ,additional time needed by ,commission ,if the ,commission determines that1 because an excessive number of applications have been filed at one time1 the ,commission needs additional time for employees of the ,commission to process the applications1 the ,commission may extend the deadline described in clause 7i7 for not more than #de days4 7,b7 ,opportunity for applicant to cure deficiency ,if the ,commission determines that an application is materially deficient 7including by lacking an adequate cost estimate or adequate supporting materials71 the ,commission shall provide the applicant a #ae-;day period to cure the defect before denying the application4 ,if such period would extend beyond the deadline under subparagraph 7,a7 for approving or denying the application1 such deadline shall be extended through the end of such period4 7,c7 ,effect of denial ,denial of an application for a reimbursement under the ,program shall not preclude the applicant from resubmitting the application or submitting a new application for a reimbursement under the ,program at a later date4 7#e7 ,certifications ,an applicant for a reimbursement under the ,program shall1 in the application of such applicant1 certify to the ,commission that-- 7,a7 beginning on the date of the submission of the application1 the applicant will not purchase1 rent1 lease1 or otherwise obtain covered communications equipment or services1 using reimbursement funds or any other funds 7including funds derived from private sources72 and 7,b7 as of the date of the submission of the application1 the applicant-- 7i7 has developed a plan for-- 7,i7 the permanent removal and replacement of any covered communications equipment or services that are in the communications network of the applicant as of such date2 and 7,,ii7 the disposal of the equipment or services removed as described in subclause 7,i7 in accordance with the requirements under paragraph 7#h72 7ii7 has developed a specific timeline 7subject to paragraph 7#g77 for the permanent removal1 replacement1 and disposal of the covered communications equipment or services identified under clause 7i71 which timeline shall be submitted to the ,commission as part of the application2 7iii7 has taken1 or will immediately take1 all necessary steps to mitigate the security threat the covered communications equipment or services identified under clause 7i7 could pose to the network of the applicant until the equipment or services can be permanently removed and replaced in accordance with the timeline described in clause 7ii72 and 7iv7 in developing and tailoring the risk management practices of such applicant1 will consult and consider the standards1 guidelines1 and best practices set forth in the cybersecurity framework developed by the ,national ,institute of ,standards and ,technology4 7#f7 ,distribution of reimbursement funds 7,a7 ,in general ,the ,commission shall make reasonable efforts to ensure that reimbursement funds are distributed as equitably as possible among all applicants for reimbursements under the ,program according to the needs of the applicants1 as identified by the applications of the applicants4 7,b7 ,notification ,if1 at any time during the implementation of the ,program1 the ,commission determines that the funds made available to the ,commission to carry out the ,program will not be sufficient to fully fund all approved applications for reimbursements under the ,program1 the ,commission shall immediately notify-- 7i7 the ,committee on ,energy and ,commerce and the ,committee on ,appropriations of the ,house of ,representatives2 and 7ii7 the ,committee on ,commerce1 ,science1 and ,transportation and the ,committee on ,appropriations of the ,senate4 7#g7 ,removal1 replacement1 and disposal term 7,a7 ,deadline ,the permanent removal1 replacement1 and disposal of any covered communications equipment or services identified under paragraph 7#e77;,b77i7 shall be completed not later than #a year after the date on which the ,commission approves the application4 7,b7 ,general extension ,the ,commission may grant an extension of the deadline described in subparagraph 7,a7 for #f months to all recipients of reimbursements under the ,program if the ,commission-- 7i7 finds that the supply of replacement communications equipment or services needed by the recipients to achieve the purposes of the ,program is inadequate to meet the needs of the recipients2 and 7ii7 provides notice and a detailed justification for granting the extension to-- 7,i7 the ,committee on ,energy and ,commerce of the ,house of ,representatives2 and 7,,ii7 the ,committee on ,commerce1 ,science1 and ,transportation of the ,senate4 7,c7 ,individual extension 7i7 ,petition ,a recipient of a reimbursement under the ,program may petition the ,commission for an extension for such recipient of the deadline described in subparagraph 7,a7 or1 if the ,commission has granted an extension of such deadline under subparagraph 7,b71 such deadline as so extended4 7ii7 ,grant ,the ,commission may grant a petition filed under clause 7i7 by extending1 for the recipient that filed the petition1 the deadline described in subparagraph 7,a7 or1 if the ,commission has granted an extension of such deadline under subparagraph 7,b71 such deadline as so extended1 for a period of not more than #f months if the ,commission finds that1 due to no fault of such recipient1 such recipient is unable to complete the permanent removal1 replacement1 and disposal described in subparagraph 7,a74 7#h7 ,disposal of covered communications equipment or services ,the ,commission shall include in the regulations promulgated under paragraph 7#a7 requirements for the disposal by a recipient of a reimbursement under the ,program of covered communications equipment or services identified under paragraph 7#e77;,b77i7 and removed from the network of the recipient in order to prevent such equipment or services from being used in the networks of providers of advanced communications service4 7#i7 ,status updates 7,a7 ,in general ,not less frequently than once every #ij days beginning on the date on which the ,commission approves an application for a reimbursement under the ,program1 the recipient of the reimbursement shall submit to the ,commission a status update on the work of the recipient to permanently remove1 replace1 and dispose of the covered communications equipment or services identified under paragraph 7#e77;,b77i74 7,b7 ,public posting ,the ,commission shall make public on the website of the ,commission each status update submitted under subparagraph 7,a74 7,c7 ,reports to ,congress ,not less frequently than once every #ahj days beginning on the date on which the ,commission first makes funds available to a recipient of a reimbursement under the ,program1 the ,commission shall prepare and submit to the ,committee on ,energy and ,commerce of the ,house of ,representatives and the ,committee on ,commerce1 ,science1 and ,transportation of the ,senate a report on-- 7i7 the implementation of the ,program by the ,commission2 and 7ii7 the work by recipients of reimbursements under the ,program to permanently remove1 replace1 and dispose of covered communications equipment or services identified under paragraph 7#e77;,b77i74 7e7 ,measures ,to avoid waste1 fraud1 and abuse 7#a7 ,in general ,the ,commission shall take all necessary steps to avoid waste1 fraud1 and abuse with respect to the ,program4 7#b7 ,spending reports ,the ,commission shall require recipients of reimbursements under the ,program to submit to the ,commission on a regular basis reports regarding how reimbursement funds have been spent1 including detailed accounting of the covered communications equipment or services permanently removed and disposed of1 and the replacement equipment or services purchased1 rented1 leased1 or otherwise obtained1 using reimbursement funds4 7#c7 ,audits1 reviews1 and field investigations ,the ,commission shall conduct-- 7,a7 regular audits and reviews of reimbursements under the ,program to confirm that recipients of such reimbursements are complying with this ,act2 and 7,b7 random field investigations to ensure that recipients of reimbursements under the ,program are performing the work such recipients are required to perform under the commitments made in the applications of such recipients for reimbursements under the ,program1 including the permanent removal1 replacement1 and disposal of the covered communications equipment or services identified under subsection 7d77#e77;,b77i74 7#d7 ,final certification 7,a7 ,in general ,the ,commission shall require a recipient of a reimbursement under the ,program to submit to the ,commission1 in a form and at an appropriate time to be determined by the ,commission1 a certification stating that the recipient-- 7i7 has fully complied with 7or is in the process of complying with7 all terms and conditions of the ,program2 7ii7 has fully complied with 7or is in the process of complying with7 the commitments made in the application of the recipient for the reimbursement2 7iii7 has permanently removed from the communications network of the recipient1 replaced1 and disposed of 7or is in the process of permanently removing1 replacing1 and disposing of7 all covered communications equipment or services that were in the network of the recipient as of the date of the submission of the application of the recipient for the reimbursement2 and 7iv7 has fully complied with 7or is in the process of complying with7 the timeline submitted by the recipient under subparagraph 7,b77ii7 of paragraph 7#e7 of subsection 7d7 and the other requirements of such paragraph4 7,b7 ,updated certification ,if1 at the time when a recipient of a reimbursement under the ,program submits a certification under subparagraph 7,a71 the recipient has not fully complied as described in clause 7i71 7ii71 or 7iv7 of such subparagraph or has not completed the permanent removal1 replacement1 and disposal described in clause 7iii7 of such subparagraph1 the ,commission shall require the recipient to file an updated certification when the recipient has fully complied as described in such clause 7i71 7ii71 or 7iv7 or completed such permanent removal1 replacement1 and disposal4 7f7 ,rule of construction regarding timing of reimbursement ,nothing in this section shall be construed to prohibit the ,commission from making a reimbursement under the ,program to a provider of advanced communications service before the provider incurs the cost of the permanent removal1 replacement1 and disposal of the covered communications equipment or service for which the application of the provider has been approved under this section4 7g7 ,education efforts ,the ,commission shall engage in education efforts with providers of advanced communications service to-- 7#a7 encourage such providers to participate in the ,program2 and 7#b7 assist such providers in submitting applications for the ,program4 7h7 ,separate from ,federal universal service programs ,the ,program shall be separate from any ,federal universal service program established under section #bed of the ,communications ,act of #aicd 7#dg ,u4,s4,c4 #bed74 7i7 ,authorization of ,appropriations ,there is authorized to be appropriated to the ,commission #a1jjj1jjj1jjj for fiscal year #bjbj to carry out the ,program4 ,such amount is authorized to remain available through fiscal year #bjbi4 #e4 ,hold harmless ,in the case of a person who is a winner of the ,connect ,america ,fund ,phase ,,ii auction1 has not yet been authorized to receive ,connect ,america ,fund ,phase ,,ii support1 and demonstrates an inability to reasonably meet the build-out and service obligations of such person under ,connect ,america ,fund ,phase ,,ii without using equipment or services prohibited under this ,act1 such person may withdraw the application of such person for ,connect ,america ,fund ,phase ,,ii support without being found in default or subject to forfeiture4 #f4 ,enforcement 7a7 ,violations ,a violation of this ,act or a regulation promulgated under this ,act shall be treated as a violation of the ,communications ,act of #aicd 7#dg ,u4,s4,c4 #aea et seq47 or a regulation promulgated under such ,act1 respectively4 ,the ,commission shall enforce this ,act and the regulations promulgated under this ,act in the same manner1 by the same means1 and with the same jurisdiction1 powers1 and duties as though all applicable terms and provisions of the ,communications ,act of #aicd were incorporated into and made a part of this ,act4 7b7 ,additional penalties 7#a7 ,in general ,except as provided in paragraph 7#b71 in addition to penalties under the ,communications ,act of #aicd1 a recipient of a reimbursement under the ,program found to have violated section #d1 the regulations promulgated under such section1 or the commitments made by the recipient in the application for the reimbursement-- 7,a7 shall repay to the ,commission all reimbursement funds provided to the recipient under the ,program2 7,b7 shall be barred from further participation in the ,program2 7,c7 shall be referred to all appropriate law enforcement agencies or officials for further action under applicable criminal and civil laws2 and 7,d7 may be barred by the ,commission from participation in other programs of the ,commission1 including the ,federal universal service support programs established under section #bed of the ,communications ,act of #aicd 7#dg ,u4,s4,c4 #bed74 7#b7 ,notice and opportunity to cure ,the penalties described in paragraph 7#a7 shall not apply to a recipient of a reimbursement under the ,program unless-- 7,a7 the ,commission provides the recipient with notice of the violation2 and 7,b7 the recipient fails to cure the violation within #ahj days after the ,commission provides such notice4 7c7 ,recovery of funds ,the ,commission shall immediately take action to recover all reimbursement funds awarded to a recipient of a reimbursement under the ,program in any case in which such recipient is required to repay reimbursement funds under subsection 7b77#a77;,a74 #g4 ,definitions ,in this ,act3 7#a7 ,advanced communications service ,the term advanced communications service has the meaning given the term advanced telecommunications capability in section #gjf of the ,telecommunications ,act of #aiif 7#dg ,u4,s4,c4 #acjb74 7#b7 ,commission ,the term ,commission means the ,federal ,communications ,commission4 7#c7 ,covered communications equipment or service ,the term covered communications equipment or service means any communications equipment or service that is on the list published by the ,commission under section #b7;a74 7#d7 ,customers ,the term customers means1 with respect to a provider of advanced communications service-- 7,a7 the customers of such provider2 and 7,b7 the customers of any affiliate 7as defined in section #c of the ,communications ,act of #aicd 7#dg ,u4,s4,c4 #aec77 of such provider4 7#e7 ,executive branch interagency body ,the term executive branch interagency body means an interagency body established in the executive branch4 7#f7 ,federal agency ,the term ,federal agency has the meaning given the term agency in section #eea of title #e1 ,united ,states ,code4 7#g7 ,federal funds ,the term ,federal funds means-- 7,a7 funds from a ,federal universal service support program established under section #bed of the ,communications ,act of #aicd 7#dg ,u4,s4,c4 #bed72 7,b7 any other ,federal grants1 subsidies1 or loans to support the deployment of communications networks in the ,united ,states2 and 7,c7 any private loans-- 7i7 the purpose of which is to support the deployment of communications networks in the ,united ,states2 and 7ii7 that are-- 7,i7 obtained using a loan guarantee from the ,federal ,government2 or 7,,ii7 secured in whole or in part by other funds from the ,federal ,government4 7#h7 ,person ,the term person means an individual or entity4 7#i7 ,program ,the term ,program means the ,secure and ,trusted ,communications ,networks ,reimbursement ,program established under section #d7;a74 7#aj7 ,provider of advanced communications service ,the term provider of advanced communications service means a person who provides advanced communications service to ,united ,states customers4 7#aa7 ,recipient ,the term recipient means any provider of advanced communications service the application of which for a reimbursement under the ,program has been approved by the ,commission1 regardless of whether the provider has received reimbursement funds4 7#ab7 ,reimbursement funds ,the term reimbursement funds means any reimbursement received under the ,program4