Bills of Congress by U.S. Congress

S.259 - Foreign Adversary Communications Transparency Act (119th Congress)

Summary

The Foreign Adversary Communications Transparency Act (S.259) directs the Federal Communications Commission (FCC) to publish a list of entities holding FCC authorizations that have certain foreign ownership. This includes entities with equity or voting interests held by a 'covered entity' (governments or entities from countries deemed adversaries) or those under the control of such entities, as determined by a national security agency.

The bill mandates the FCC to issue rules to gather information on entities holding any FCC authorization beyond specific licenses. It also provides a Paperwork Reduction Act exemption for information collection related to the Act's implementation.

The list must be updated annually, ensuring ongoing transparency regarding foreign influence in US communications infrastructure.

Expected Effects

The Act will likely increase transparency regarding foreign ownership and control of entities holding FCC licenses and authorizations. This could lead to greater scrutiny of these entities and potentially influence future decisions regarding licensing and regulatory oversight.

It may also prompt companies to restructure their ownership to avoid being listed, potentially reducing foreign adversary influence. The rulemaking process could also reveal loopholes or areas needing further legislative action.

This increased transparency could also lead to a chilling effect on legitimate foreign investment in the US communications sector.

Potential Benefits

  • Increased Transparency: The public will have access to information about foreign ownership in US communications entities.
  • National Security: Helps identify and potentially mitigate risks associated with foreign adversary control over communication infrastructure.
  • Informed Decision-Making: Allows policymakers and regulators to make more informed decisions regarding licensing and oversight.
  • Reduced Foreign Influence: May deter foreign adversaries from exerting undue influence over US communications networks.
  • Enhanced Public Awareness: Raises public awareness about potential vulnerabilities in the communications sector.

Potential Disadvantages

  • Potential for Overreach: The definition of 'covered entity' could be interpreted broadly, impacting legitimate foreign investment.
  • Compliance Costs: Companies may face increased compliance costs associated with reporting requirements.
  • Chilling Effect: Legitimate foreign investment in the US communications sector could be discouraged.
  • Administrative Burden: The FCC will face an increased administrative burden in compiling and updating the list.
  • Potential for Misinformation: The list could be misinterpreted or misused to unfairly target companies with foreign ownership.

Constitutional Alignment

The Act appears to align with the US Constitution, particularly Article I, Section 8, which grants Congress the power to regulate commerce with foreign nations. The Act does not appear to infringe upon individual liberties protected by the Bill of Rights, such as freedom of speech or religion, as it focuses on transparency and foreign influence rather than restricting expression or belief.

However, potential due process concerns could arise if the criteria for determining 'control' by a covered entity are not clearly defined and consistently applied. This could potentially lead to arbitrary or discriminatory enforcement.

Further, the Act does not appear to violate any specific constitutional provisions, and its focus on national security and transparency aligns with the government's responsibility to protect the country's interests.

Impact Assessment: Things You Care About

This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).