S.Amdt. 2514

SA 2514. Mr. COTTON (for himself, Mr. Van Hollen, Mr. Schumer, Mr.
Rubio, Mr. Blumenthal, Ms. Collins, and Mr. Nelson) submitted an
amendment intended to be proposed to amendment SA 2282 submitted by Mr.
Inhofe (for himself and Mr. McCain) and intended to be proposed to the
bill H.R. 5515, to authorize appropriations for fiscal year 2019 for
military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:

Strike section 1727 and insert the following:

SEC. 1727. PROHIBITION ON MODIFICATION OF CIVIL PENALTIES
UNDER EXPORT CONTROL AND SANCTIONS LAWS AND
PROHIBITION ON CERTAIN TELECOMMUNICATIONS
EQUIPMENT.

(a) Prohibition on Modification of Penalties.--
(1) In general.--Notwithstanding any other provision of
law, no Federal official may modify any penalty, including a
penalty imposed pursuant to a denial order, implemented by
the Government of the United States with respect to a Chinese
telecommunications company pursuant to a determination that
the company has violated an export control or sanctions law
of the United States until the date that is 30 days after the
President certifies to the appropriate congressional
committees that the company--
(A) has not, for a period of one year, conducted activities
in violation of the laws of the United States; and
(B) is fully cooperating with investigations into the
activities of the company conducted by the Government of the
United States, if any.
(2) Reinstatement of penalties or suspended order.--
(A) In general.--If, before the date of the enactment of
this Act, any penalty imposed pursuant to the order of the
Acting Assistant Secretary of Commerce for Export Enforcement
entitled ``Order Activating Suspended Denial Order Relating
to Zhongxing Telecommunications Equipment Corporation and ZTE
Kangxun Telecommunications Ltd.'' (83 Fed. Reg. 17644), and
dated April 15, 2018, is reduced or eliminated, or that order
is suspended, on such date of enactment, that penalty shall
be reinstated to the penalty in place before such reduction
or elimination, or that order shall be reinstated, as the
case may be.
(B) Additional modifications.--Any modification to a
penalty imposed pursuant to the order described in
subparagraph (A) on or after the date of the enactment of
this Act shall be subject to the requirements of paragraph
(1).
(b) Prohibition on Use or Procurement.--The head of an
executive agency may not--
(1) 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
(2) 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.
(c) Prohibition on Loan and Grant Funds.--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 (b).
(d) Effective Dates.--The prohibitions under subsection
(b)(1) and subsection (c) shall take effect 180 days after
the date of the enactment of this Act and the prohibition
under subsection (b)(2) shall take effect three years after
the date of the enactment of this Act.
(e) Rule of Construction.--Nothing in subsection (b) or (c)
shall be construed to--
(1) 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
(2) 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.
(f) Definitions.--In this section:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees' '' means--
(A) the Committee on Banking, Housing, and Urban Affairs
and the Committee on Foreign Relations of the Senate; and
(B) the Committee on Financial Services and the Committee
on Foreign Affairs 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) Telecommunications services provided by such entities
or using such equipment.
(C) Telecommunications 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.
(g) Treatment of Provision Relating to Prohibition on
Certain Telecommunications Equipment.--Section 891, relating
to a prohibition on certain telecommunications equipment,
shall have no force or effect.
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