§ 1.80004 — Enforcement and streamlined revocation procedure.

§ 1.80004 Enforcement and streamlined revocation procedure.

(a) Enforcement. The Commission may take enforcement action against a Regulatee for failure to comply with the deadlines in § 1.80003; for an incomplete or inaccurate filing, including a false statement or representation; or if the Commission assesses that Foreign Adversary Control of the Covered Authorization may pose an unacceptable risk to national security. Prior to taking enforcement action, the Enforcement Bureau shall:

(1) Review referrals and coordinate with the applicable Licensing Bureaus and Offices where appropriate; and

(2) Consider national security risks, potential harms to the public, any effect on downstream providers, and other factors presented by the Regulatee when determining an appropriate enforcement action.

(b) Streamlined revocation procedure. To the extent consistent with applicable law, and except in cases of willfulness or those in which public health, interest, or safety requires otherwise, prior to revoking a Regulatee's Covered Authorization, the Enforcement Bureau and/or Licensing Bureau or Office:

(1) Shall issue a public Notice of Deficiency and Opportunity to Comply—consistent with the provisions of § 1.89, except that the response period shall be 30 days—and provide courtesy copy to the Regulatee's most recent contact information on file with the Commission that will:

(i) Inform the Regulatee of the specific failure to comply, such as failure to file or other identified deficiencies;

(ii) Provide thirty (30) calendar days to cure the deficiency and demonstrate why a revocation proceeding should not be initiated; and

(iii) Specify that failure to provide a full and complete response within the 30-day period will result in an Order to Show Cause commencing a revocation proceeding;

(2) May, if the Regulatee fails to cure the filing defect or respond to the Notice of Deficiency and Opportunity to Comply, or where that step is not required due to willfulness or considerations of public health, interest, or safety, pursuant to 5 U.S.C. 558(c), issue an Order to Show Cause to commence a revocation proceeding and provide the Regulatee fifteen (15) calendar days to explain why the Regulatee's Covered Authorization should not be revoked; and

(3) May, after the conclusion of the period for notice and opportunity to respond as specified in paragraphs (b)(1) and (2) of this section, issue an Order of Revocation revoking the Regulatee's Covered Authorization(s).

(c) Review of submissions—(1) Failure to comply with deadlines. The Licensing Bureaus and Offices may refer Regulatees that failed to timely file any filing required by this subpart to the Enforcement Bureau for possible enforcement action, including monetary penalties or commencement of the revocation process consistent with this Section.

(2) Incomplete or inaccurate responses. Following the receipt of an attestation or disclosure required by § 1.80003, the Licensing Bureau or Office shall make a preliminary assessment on whether it has a reasonable basis for finding that the attestation and/or disclosures submitted by the Regulatee is incomplete or inaccurate. In making a preliminary assessment, the Licensing Bureau or Office shall consider:

(i) Willfulness;

(ii) Potential national security risks;

(iii) Any effect on downstream providers;

(iv) Any adverse impact on the public; and

(v) Other factors the Licensing Bureau or Office deems relevant.