Prohibits the procurement of telecommunications equipment, products, or services which originate from certain Chinese entities and allows for the department of homeland security and emergency services in consultation with the secretary of state to add additional prohibitions.
STATE OF NEW YORK
________________________________________________________________________
7584--A
IN SENATE
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:
1 Section 1. The executive law is amended by adding a new section 163-b
2 to read as follows:
3 § 163-b. Restriction on contracts for certain telecommunications
4 equipment, products, or services originating from Chinese entities that
5 pose a cyber security threat. 1. For purposes of this section, the
6 following terms shall have the following meanings:
7 (a) "Covered telecommunications equipment, products, or services"
8 shall mean:
9 (1) telecommunications equipment manufactured by Huawei Technologies
10 Company or ZTE Corporation, or any subsidiary or affiliate of such enti-
11 ties;
12 (2) video surveillance and telecommunications equipment used for the
13 purpose of public safety, security of state government facilities or
14 other national or state security purposes manufactured by Hytera Commu-
15 nications Corporation, Hangzhou Hikvision Digital Technology Company,
16 Dahua Technology Company, or any subsidiary or affiliate of such enti-
17 ties;
18 (3) telecommunications or video surveillance services provided by such
19 entities as referenced in this subdivision or using such equipment; or
20 (4) telecommunications or video surveillance equipment or services
21 produced or provided by an entity that the director of the department of
22 homeland security and emergency services, in consultation with the
23 secretary of state, reasonably believes to be an entity owned or
24 controlled by, or otherwise connected to, the government of a covered
25 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
1 (5) equipment, products, or services covered under the provisions of
2 Section 515 of Public Law 113-76, 28 Stat. 80-81, the Consolidated
3 Appropriations Act, 2014, found to pose a cyber security threat.
4 (b) "Covered foreign country" shall mean the People's Republic of
5 China.
6 (c) "Interconnection arrangement" shall mean a business contract
7 between telecommunications organizations for the purpose of intercon-
8 necting such organizations networks and exchanging telecommunications
9 traffic.
10 2. Notwithstanding any inconsistent provision of law, the state and
11 any department, bureau, board, commission, authority, or any other agen-
12 cy or instrumentality of the state shall not:
13 (a) enter into a contract or agreement to procure, obtain, extend or
14 renew a contract to purchase or obtain any equipment, products, system
15 or service that uses covered telecommunications equipment, products or
16 services as a substantial or essential component of any system, or as
17 critical technology as part of any system; or
18 (b) enter into a contract or agreement with an entity that uses any
19 equipment, product, system or service that uses covered telecommuni-
20 cations equipment or services as a substantial or essential component of
21 any system, or as critical technology as part of any system.
22 3. (a) The state and any department, bureau, board, commission,
23 authority, or any other agency or instrumentality of the state shall not
24 obligate or expend loan or grant funds to procure or obtain, extend or
25 renew a contract to procure, obtain, or enter into, extend or renew a
26 contract to procure or obtain the equipment, products, services or
27 systems described in subdivision two of this section.
28 (b) In furtherance of paragraph (a) of this subdivision, the state and
29 any department, bureau, board, commission, authority, or any other agen-
30 cy or instrumentality of the state shall prioritize available funding
31 and technical support to assist affected businesses, institutions and
32 organizations as is reasonably necessary for those affected entities to
33 transition from covered communications equipment, products, and
34 services, to procure replacement equipment, products, and services as
35 part of such transitions and to ensure that communications service to
36 users and customers is sustained.
37 4. Subdivisions two and three of this section shall not apply to:
38 (a) the state and any department, bureau, board, commission, authori-
39 ty, or any other agency or instrumentality of the state contracting with
40 an entity to provide a service that connects to the facilities of a
41 third-party, including, but not limited to, backhaul, roaming or inter-
42 connection arrangements; or
43 (b) telecommunications equipment that cannot route or redirect user
44 data traffic or permit visibility into any user data or packets that
45 such equipment transmits or otherwise handles.
46 5. (a) The head of any department, bureau, board, commission, authori-
47 ty, or any other agency or instrumentality of the state may consider
48 waiver requests and may grant such waiver to a requesting entity which
49 shall waive the requirements of subdivision two of this section if such
50 entity:
51 (1) provides a compelling justification for additional time to be
52 granted to comply with the requirements of subdivision two of this
53 section; and
54 (2) includes in such waiver a full and complete description of the
55 presence of covered telecommunications or video surveillance equipment,
56 products, or services in such entity's supply chain and a phase-out plan
S. 7584--A 3
1 to eliminate such covered telecommunications or video surveillance
2 equipment, products, or services from such entity's systems.
3 (b) Any waiver granted pursuant to this subdivision shall be valid for
4 a period of not more than two years from the time such waiver is grant-
5 ed.
6 § 2. This act shall take effect on the ninetieth day after it shall
7 have become a law.
