S T A T E O F N E W Y O R K
________________________________________________________________________
7584--A
I N S E N A T E
January 28, 2020
___________
Introduced by Sen. THOMAS -- read twice and ordered printed, and when
printed to be committed to the Committee on Finance -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the executive law, in relation to prohibiting the
procurement of telecommunications equipment, products, or services
which originate from Chinese entities
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The executive law is amended by adding a new section 163-b
to read as follows:
§ 163-B. RESTRICTION ON CONTRACTS FOR CERTAIN TELECOMMUNICATIONS
EQUIPMENT, PRODUCTS, OR SERVICES ORIGINATING FROM CHINESE ENTITIES THAT
POSE A CYBER SECURITY THREAT. 1. FOR PURPOSES OF THIS SECTION, THE
FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
(A) "COVERED TELECOMMUNICATIONS EQUIPMENT, PRODUCTS, OR SERVICES"
SHALL MEAN:
(1) TELECOMMUNICATIONS EQUIPMENT MANUFACTURED BY HUAWEI TECHNOLOGIES
COMPANY OR ZTE CORPORATION, OR ANY SUBSIDIARY OR AFFILIATE OF SUCH ENTI-
TIES;
(2) VIDEO SURVEILLANCE AND TELECOMMUNICATIONS EQUIPMENT USED FOR THE
PURPOSE OF PUBLIC SAFETY, SECURITY OF STATE GOVERNMENT FACILITIES OR
OTHER NATIONAL OR STATE SECURITY PURPOSES MANUFACTURED BY HYTERA COMMU-
NICATIONS CORPORATION, HANGZHOU HIKVISION DIGITAL TECHNOLOGY COMPANY,
DAHUA TECHNOLOGY COMPANY, OR ANY SUBSIDIARY OR AFFILIATE OF SUCH ENTI-
TIES;
(3) TELECOMMUNICATIONS OR VIDEO SURVEILLANCE SERVICES PROVIDED BY SUCH
ENTITIES AS REFERENCED IN THIS SUBDIVISION OR USING SUCH EQUIPMENT; OR
(4) TELECOMMUNICATIONS OR VIDEO SURVEILLANCE EQUIPMENT OR SERVICES
PRODUCED OR PROVIDED BY AN ENTITY THAT THE DIRECTOR OF THE DEPARTMENT OF
HOMELAND SECURITY AND EMERGENCY SERVICES, IN CONSULTATION WITH THE
SECRETARY OF STATE, REASONABLY BELIEVES TO BE AN ENTITY OWNED OR
CONTROLLED BY, OR OTHERWISE CONNECTED TO, THE GOVERNMENT OF A COVERED
FOREIGN COUNTRY.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14748-02-0
S. 7584--A 2
(5) EQUIPMENT, PRODUCTS, OR SERVICES COVERED UNDER THE PROVISIONS OF
SECTION 515 OF PUBLIC LAW 113-76, 28 STAT. 80-81, THE CONSOLIDATED
APPROPRIATIONS ACT, 2014, FOUND TO POSE A CYBER SECURITY THREAT.
(B) "COVERED FOREIGN COUNTRY" SHALL MEAN THE PEOPLE'S REPUBLIC OF
CHINA.
(C) "INTERCONNECTION ARRANGEMENT" SHALL MEAN A BUSINESS CONTRACT
BETWEEN TELECOMMUNICATIONS ORGANIZATIONS FOR THE PURPOSE OF INTERCON-
NECTING SUCH ORGANIZATIONS NETWORKS AND EXCHANGING TELECOMMUNICATIONS
TRAFFIC.
2. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW, THE STATE AND
ANY DEPARTMENT, BUREAU, BOARD, COMMISSION, AUTHORITY, OR ANY OTHER AGEN-
CY OR INSTRUMENTALITY OF THE STATE SHALL NOT:
(A) ENTER INTO A CONTRACT OR AGREEMENT TO PROCURE, OBTAIN, EXTEND OR
RENEW A CONTRACT TO PURCHASE OR OBTAIN ANY EQUIPMENT, PRODUCTS, SYSTEM
OR SERVICE THAT USES COVERED TELECOMMUNICATIONS EQUIPMENT, PRODUCTS OR
SERVICES AS A SUBSTANTIAL OR ESSENTIAL COMPONENT OF ANY SYSTEM, OR AS
CRITICAL TECHNOLOGY AS PART OF ANY SYSTEM; OR
(B) ENTER INTO A CONTRACT OR AGREEMENT WITH AN ENTITY THAT USES ANY
EQUIPMENT, PRODUCT, SYSTEM OR SERVICE THAT USES COVERED TELECOMMUNI-
CATIONS EQUIPMENT OR SERVICES AS A SUBSTANTIAL OR ESSENTIAL COMPONENT OF
ANY SYSTEM, OR AS CRITICAL TECHNOLOGY AS PART OF ANY SYSTEM.
3. (A) THE STATE AND ANY DEPARTMENT, BUREAU, BOARD, COMMISSION,
AUTHORITY, OR ANY OTHER AGENCY OR INSTRUMENTALITY OF THE STATE SHALL NOT
OBLIGATE OR EXPEND LOAN OR GRANT FUNDS TO PROCURE OR OBTAIN, EXTEND OR
RENEW A CONTRACT TO PROCURE, OBTAIN, OR ENTER INTO, EXTEND OR RENEW A
CONTRACT TO PROCURE OR OBTAIN THE EQUIPMENT, PRODUCTS, SERVICES OR
SYSTEMS DESCRIBED IN SUBDIVISION TWO OF THIS SECTION.
(B) IN FURTHERANCE OF PARAGRAPH (A) OF THIS SUBDIVISION, THE STATE AND
ANY DEPARTMENT, BUREAU, BOARD, COMMISSION, AUTHORITY, OR ANY OTHER AGEN-
CY OR INSTRUMENTALITY OF THE STATE SHALL PRIORITIZE AVAILABLE FUNDING
AND TECHNICAL SUPPORT TO ASSIST AFFECTED BUSINESSES, INSTITUTIONS AND
ORGANIZATIONS AS IS REASONABLY NECESSARY FOR THOSE AFFECTED ENTITIES TO
TRANSITION FROM COVERED COMMUNICATIONS EQUIPMENT, PRODUCTS, AND
SERVICES, TO PROCURE REPLACEMENT EQUIPMENT, PRODUCTS, AND SERVICES AS
PART OF SUCH TRANSITIONS AND TO ENSURE THAT COMMUNICATIONS SERVICE TO
USERS AND CUSTOMERS IS SUSTAINED.
4. SUBDIVISIONS TWO AND THREE OF THIS SECTION SHALL NOT APPLY TO:
(A) THE STATE AND ANY DEPARTMENT, BUREAU, BOARD, COMMISSION, AUTHORI-
TY, OR ANY OTHER AGENCY OR INSTRUMENTALITY OF THE STATE CONTRACTING WITH
AN ENTITY TO PROVIDE A SERVICE THAT CONNECTS TO THE FACILITIES OF A
THIRD-PARTY, INCLUDING, BUT NOT LIMITED TO, BACKHAUL, ROAMING OR INTER-
CONNECTION ARRANGEMENTS; OR
(B) 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.
5. (A) THE HEAD OF ANY DEPARTMENT, BUREAU, BOARD, COMMISSION, AUTHORI-
TY, OR ANY OTHER AGENCY OR INSTRUMENTALITY OF THE STATE MAY CONSIDER
WAIVER REQUESTS AND MAY GRANT SUCH WAIVER TO A REQUESTING ENTITY WHICH
SHALL WAIVE THE REQUIREMENTS OF SUBDIVISION TWO OF THIS SECTION IF SUCH
ENTITY:
(1) PROVIDES A COMPELLING JUSTIFICATION FOR ADDITIONAL TIME TO BE
GRANTED TO COMPLY WITH THE REQUIREMENTS OF SUBDIVISION TWO OF THIS
SECTION; AND
(2) INCLUDES IN SUCH WAIVER A FULL AND COMPLETE DESCRIPTION OF THE
PRESENCE OF COVERED TELECOMMUNICATIONS OR VIDEO SURVEILLANCE EQUIPMENT,
PRODUCTS, OR SERVICES IN SUCH ENTITY'S SUPPLY CHAIN AND A PHASE-OUT PLAN
S. 7584--A 3
TO ELIMINATE SUCH COVERED TELECOMMUNICATIONS OR VIDEO SURVEILLANCE
EQUIPMENT, PRODUCTS, OR SERVICES FROM SUCH ENTITY'S SYSTEMS.
(B) ANY WAIVER GRANTED PURSUANT TO THIS SUBDIVISION SHALL BE VALID FOR
A PERIOD OF NOT MORE THAN TWO YEARS FROM THE TIME SUCH WAIVER IS GRANT-
ED.
§ 2. This act shall take effect on the ninetieth day after it shall
have become a law.