SUBCHAPTER VI—COMMUNICATIONS COMPETITION AND PRIVATIZATION
Part A—Actions To Ensure Pro-Competitive Privatization
§761. Federal Communications Commission licensing
(a) Licensing for separated entities
(1) Competition test
The Commission may not issue a license or construction permit to any separated entity, or renew or permit the assignment or use of any such license or permit, or authorize the use by any entity subject to United States jurisdiction of any space segment owned, leased, or operated by any separated entity, unless the Commission determines that such issuance, renewal, assignment, or use will not harm competition in the telecommunications market of the United States. If the Commission does not make such a determination, it shall deny or revoke authority to use space segment owned, leased, or operated by the separated entity to provide services to, from, or within the United States.
(2) Criteria for competition test
In making the determination required by paragraph (1), the Commission shall use the licensing criteria in sections 763 and 763b 1 of this title, and shall not make such a determination unless the Commission determines that the privatization of any separated entity is consistent with such criteria.
(b) Licensing for INTELSAT, Inmarsat, and successor entities
(1) Competition test
(A) In general
In considering the application of INTELSAT, Inmarsat, or their successor entities for a license or construction permit, or for the renewal or assignment or use of any such license or permit, or in considering the request of any entity subject to United States jurisdiction for authorization to use any space segment owned, leased, or operated by INTELSAT, Inmarsat, or their successor entities, to provide non-core services to, from, or within the United States, the Commission shall determine whether—
(i) after April 1, 2001, in the case of INTELSAT and its successor entities, INTELSAT and any successor entities have been privatized in a manner that will harm competition in the telecommunications markets of the United States; or
(ii) after April 1, 2000, in the case of Inmarsat and its successor entities, Inmarsat and any successor entities have been privatized in a manner that will harm competition in the telecommunications markets of the United States.
(B) Consequences of determination
If the Commission determines that such competition will be harmed or that grant of such application or request for authority is not otherwise in the public interest, the Commission shall limit through conditions or deny such application or request, and limit or revoke previous authorizations to provide non-core services to, from, or within the United States. After due notice and opportunity for comment, the Commission shall apply the same limitations, restrictions, and conditions to all entities subject to United States jurisdiction using space segment owned, leased, or operated by INTELSAT, Inmarsat, or their successor entities.
(C) National security, law enforcement, and public safety
The Commission shall not impose any limitation, condition, or restriction under subparagraph (B) in a manner that will, or is reasonably likely to, result in limitation, denial, or revocation of authority for non-core services that are used by and required for a national security agency or law enforcement department or agency of the United States, or used by and required for, and otherwise in the public interest, any other Department or Agency of the United States to protect the health and safety of the public. Such services may be obtained by the United States directly from INTELSAT, Inmarsat, or a successor entity, or indirectly through COMSAT, or authorized carriers or distributors of the successor entity.
(D) Rule of construction
Nothing in this subsection is intended to preclude the Commission from acting upon applications of INTELSAT, Inmarsat, or their successor entities prior to the latest date set out in
(2) Criteria for competition test
In making the determination required by paragraph (1), the Commission shall use the licensing criteria in sections 763, 763a, and 763c 1 of this title, and shall determine that competition in the telecommunications markets of the United States will be harmed unless the Commission finds that the privatization referred to in paragraph (1) is consistent with such criteria.
(3) Clarification: competitive safeguards
In making its licensing decisions under this subsection, the Commission shall consider whether users of non-core services provided by INTELSAT or Inmarsat or successor or separated entities are able to obtain non-core services from providers offering services other than through INTELSAT or Inmarsat or successor or separated entities, at competitive rates, terms, or conditions. Such consideration shall also include whether such licensing decisions would require users to replace equipment at substantial costs prior to the termination of its design life. In making its licensing decisions, the Commission shall also consider whether competitive alternatives in individual markets do not exist because they have been foreclosed due to anticompetitive actions undertaken by or resulting from the INTELSAT or Inmarsat systems. Such licensing decisions shall be made in a manner which facilitates achieving the purposes and goals in this subchapter and shall be subject to notice and comment.
(c) Additional considerations in determinations
In making its determinations and licensing decisions under subsections (a) and (b), the Commission shall construe such subsections in a manner consistent with the United States obligations and commitments for satellite services under the Fourth Protocol to the General Agreement on Trade in Services.
(d) Independent facilities competition
Nothing in this section shall be construed as precluding COMSAT from investing in or owning satellites or other facilities independent from INTELSAT and Inmarsat, and successor or separated entities, or from providing services through reselling capacity over the facilities of satellite systems independent from INTELSAT and Inmarsat, and successor or separated entities. This subsection shall not be construed as restricting the types of contracts which can be executed or services which may be provided by COMSAT over the independent satellites or facilities described in this subsection.
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Editorial Notes
References in Text
Statutory Notes and Related Subsidiaries
Purpose
1 See References in Text note below.
§761a. Incentives; limitation on expansion pending privatization
(a) Limitation
Until INTELSAT, Inmarsat, and their successor or separate entities are privatized in accordance with the requirements of this subchapter, INTELSAT, Inmarsat, and their successor or separate entities, respectively, shall not be permitted to provide additional services. The Commission shall take all necessary measures to implement this requirement, including denial by the Commission of licensing for such services.
(b) Orbital location incentives
Until such privatization is achieved, the United States shall oppose and decline to facilitate applications by such entities for new orbital locations to provide such services.
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Part B—Federal Communications Commission Licensing Criteria: Privatization Criteria
§763. General criteria to ensure a pro-competitive privatization of INTELSAT and Inmarsat
The President and the Commission shall secure a pro-competitive privatization of INTELSAT and Inmarsat that meets the criteria set forth in this section and sections 763a through 763c 1 of this title. In securing such privatizations, the following criteria shall be applied as licensing criteria for purposes of part A:
(1) Dates for privatization
Privatization shall be obtained in accordance with the criteria of this subchapter of—
(A) INTELSAT as soon as practicable, but no later than April 1, 2001; and
(B) Inmarsat as soon as practicable, but no later than July 1, 2000.
(2) Independence
The privatized successor entities and separated entities of INTELSAT and Inmarsat shall operate as independent commercial entities, and have a pro-competitive ownership structure. The successor entities and separated entities of INTELSAT and Inmarsat shall conduct an initial public offering in accordance with paragraph (5) to achieve such independence. Such offering shall substantially dilute the aggregate ownership of such entities by such signatories or former signatories. In determining whether a public offering attains such substantial dilution, the Commission shall take into account the purposes and intent, privatization criteria, and other provisions of this subchapter, as well as market conditions. No intergovernmental organization, including INTELSAT or Inmarsat, shall have—
(A) an ownership interest in INTELSAT or the successor or separated entities of INTELSAT; or
(B) more than minimal ownership interest in Inmarsat or the successor or separated entities of Inmarsat.
(3) Termination of privileges and immunities
The preferential treatment of INTELSAT and Inmarsat shall not be extended to any successor entity or separated entity of INTELSAT or Inmarsat. Such preferential treatment includes—
(A) privileged or immune treatment by national governments;
(B) privileges or immunities or other competitive advantages of the type accorded INTELSAT and Inmarsat and their signatories through the terms and operation of the INTELSAT Agreement and the associated Headquarters Agreement and the Inmarsat Convention; and
(C) preferential access to orbital locations.
Access to new, or renewal of access to, orbital locations shall be subject to the legal or regulatory processes of a national government that applies due diligence requirements intended to prevent the warehousing of orbital locations.
(4) Prevention of expansion during transition
During the transition period prior to privatization under this subchapter, INTELSAT and Inmarsat shall be precluded from expanding into additional services.
(5) Conversion to stock corporations
Any successor entity or separated entity created out of INTELSAT or Inmarsat shall be a national corporation or similar accepted commercial structure, subject to the laws of the nation in which incorporated, as follows:
(A) An initial public offering of securities of any successor entity or separated entity—
(i) shall be conducted, for the successor entities of INTELSAT, on or about June 30, 2005, except that the Commission may extend this deadline in consideration of market conditions and relevant business factors relating to the timing of an initial public offering, but such extensions shall not permit such offering to be conducted later than December 31, 2005; and
(ii) shall be conducted, for the successor entities of Inmarsat, not later than June 30, 2005, except that the Commission may extend this deadline to not later than December 31, 2004.
(B) The shares of any successor entities and separated entities shall be listed for trading on one or more major stock exchanges with transparent and effective securities regulation.
(C) A majority of the members of the board of directors of any successor entity or separated entity shall not be directors, employees, officers, or managers or otherwise serve as representatives of any signatory or former signatory. No member of the board of directors of any successor or separated entity shall be a director, employee, officer or manager of any intergovernmental organization remaining after the privatization.
(D) Any successor entity or separated entity shall—
(i) have a board of directors with a fiduciary obligation;
(ii) have no officers or managers who are officers or managers of any signatories or former signatories; and
(iii) have no directors, officers, or managers who hold such positions in any intergovernmental organization.
(E) Any transactions or other relationships between or among any successor entity, separated entity, INTELSAT, or Inmarsat shall be conducted on an arm's length basis.
(F) Notwithstanding subparagraphs (A) and (B), a successor entity may be deemed a national corporation and may forgo an initial public offering and public securities listing and still achieve the purposes of this section if—
(i) the successor entity certifies to the Commission that—
(I) the successor entity has achieved substantial dilution of the aggregate amount of signatory or former signatory financial interest in such entity;
(II) any signatories and former signatories that retain a financial interest in such successor entity do not possess, together or individually, effective control of such successor entity; and
(III) no intergovernmental organization has any ownership interest in a successor entity of INTELSAT or more than a minimal ownership interest in a successor entity of Inmarsat;
(ii) the successor entity provides such financial and other information to the Commission as the Commission may require to verify such certification; and
(iii) the Commission determines, after notice and comment, that the successor entity is in compliance with such certification.
(G) For purposes of subparagraph (F), the term "substantial dilution" means that a majority of the financial interests in the successor entity is no longer held or controlled, directly or indirectly, by signatories or former signatories.
(6) Regulatory treatment
Any successor entity or separated entity created after March 17, 2000, shall apply through the appropriate national licensing authorities for international frequency assignments and associated orbital registrations for all satellites.
(7) Competition policies in domiciliary country
Any successor entity or separated entity shall be subject to the jurisdiction of a nation or nations that—
(A) have effective laws and regulations that secure competition in telecommunications services;
(B) are signatories of the World Trade Organization Basic Telecommunications Services Agreement; and
(C) have a schedule of commitments in such Agreement that includes non-discriminatory market access to their satellite markets.
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Editorial Notes
References in Text
Amendments
2005—Par. (5)(D)(ii).
Par. (5)(D)(iii).
Par. (5)(D)(iv).
2004—Par. (5)(A)(i).
Par. (5)(A)(ii).
Par. (5)(F), (G).
2003—Par. (5)(A)(ii).
2002—Par. (5)(A)(i).
2001—Par. (5)(A)(ii).
Statutory Notes and Related Subsidiaries
Immigration Status of Alien Employees of INTELSAT after Privatization
Title III of
1 See References in Text note below.
§763a. Specific criteria for INTELSAT
In securing the privatizations required by
(1) 1
(
1 So in original. No par. (2) has been enacted.
§763b. Repealed. Pub. L. 109–34, §2, July 12, 2005, 119 Stat. 377
Section,
§763c. Space segment capacity of the GMDSS
The United States shall preserve the space segment capacity of the GMDSS. This section is not intended to alter the status that the GMDSS would otherwise have under United States laws and regulations of the International Telecommunication Union with respect to spectrum, orbital locations, or other operational parameters, or to be a barrier to competition for the provision of GMDSS services.
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Editorial Notes
Amendments
2005—
§763d. Encouraging market access and privatization
(a) NTIA determination
(1) Determination required
Within 180 days after March 17, 2000, the Secretary of Commerce shall, through the Assistant Secretary for Communications and Information, transmit to the Commission—
(A) a list of Member countries of INTELSAT and Inmarsat that are not Members of the World Trade Organization and that impose barriers to market access for private satellite systems; and
(B) a list of Member countries of INTELSAT and Inmarsat that are not Members of the World Trade Organization and that are not supporting pro-competitive privatization of INTELSAT and Inmarsat.
(2) Consultation
The Secretary's determinations under paragraph (1) shall be made in consultation with the Federal Communications Commission, the Secretary of State, and the United States Trade Representative, and shall take into account the totality of a country's actions in all relevant fora, including the Assemblies of Parties of INTELSAT and Inmarsat.
(b) Imposition of cost-based settlement rate
Notwithstanding—
(1) any higher settlement rate that an overseas carrier charges any United States carrier to originate or terminate international message telephone services; and
(2) any transition period that would otherwise apply,
the Commission may by rule prohibit United States carriers from paying an amount in excess of a cost-based settlement rate to overseas carriers in countries listed by the Commission pursuant to subsection (a).
(c) Settlements policy
The Commission shall, in exercising its authority to establish settlements rates for United States international common carriers, seek to advance United States policy in favor of cost-based settlements in all relevant fora on international telecommunications policy, including in meetings with parties and signatories of INTELSAT and Inmarsat.
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Part C—Deregulation and Other Statutory Changes
§765. Access to INTELSAT
(a) Access permitted
Beginning on March 17, 2000, users or providers of telecommunications services shall be permitted to obtain direct access to INTELSAT telecommunications services and space segment capacity through purchases of such capacity or services from INTELSAT. Such direct access shall be at the level commonly referred to by INTELSAT, on March 17, 2000, as "Level III".
(b) Rulemaking
Within 180 days after March 17, 2000, the Commission shall complete a rulemaking, with notice and opportunity for submission of comment by interested persons, to determine if users or providers of telecommunications services have sufficient opportunity to access INTELSAT space segment capacity directly from INTELSAT to meet their service or capacity requirements. If the Commission determines that such opportunity to access does not exist, the Commission shall take appropriate action to facilitate such direct access pursuant to its authority under this chapter and the Communications Act of 1934 [
(c) Contract preservation
Nothing in this section shall be construed to permit the abrogation or modification of any contract.
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Editorial Notes
References in Text
The Communications Act of 1934, referred to in subsec. (b), is act June 19, 1934, ch. 652,
§765a. Signatory role
(a) Limitations on signatories
(1) National security limitations
The Federal Communications Commission, after a public interest determination, in consultation with the executive branch, may restrict foreign ownership of a United States signatory if the Commission determines that not to do so would constitute a threat to national security.
(2) No signatories required
The United States Government shall not require signatories to represent the United States in INTELSAT or Inmarsat or in any successor entities after a pro-competitive privatization is achieved consistent with sections 763, 763a, and 763c 1 of this title.
(b) Clarification of privileges and immunities of COMSAT
(1) Generally not immunized
Notwithstanding any other law or executive agreement, COMSAT shall not be entitled to any privileges or immunities under the laws of the United States or any State on the basis of its status as a signatory of INTELSAT or Inmarsat.
(2) Limited immunity
COMSAT or any successor in interest shall not be liable for action taken by it in carrying out the specific, written instruction of the United States issued in connection with its relationships and activities with foreign governments, international entities, and the intergovernmental satellite organizations.
(3) No joint or several liability
If COMSAT is found liable for any action taken in its status as a signatory or a representative of the party to INTELSAT, any such liability shall be limited to the portion of the judgment that corresponds to COMSAT's percentage of the ownership of INTELSAT at the time the activity began which lead to the liability.
(4) Provisions prospective
Paragraph (1) shall not apply with respect to liability for any action taken by COMSAT before March 17, 2000.
(c) Parity of treatment
Notwithstanding any other law or executive agreement, the Commission shall have the authority to impose similar regulatory fees on the United States signatory which it imposes on other entities providing similar services.
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Editorial Notes
References in Text
1 See References in Text note below.
§765b. Elimination of procurement preferences
Nothing in this subchapter or the Communications Act of 1934 [
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Editorial Notes
References in Text
The Communications Act of 1934, referred to in text, is act June 19, 1934, ch. 652,
§765c. ITU functions
(a) Technical coordination
The Commission and United States satellite companies shall utilize the International Telecommunication Union procedures for technical coordination with INTELSAT and its successor entities and separated entities, rather than INTELSAT procedures.
(b) ITU notifying administration
The President and the Commission shall take the action necessary to ensure that the United States remains the ITU notifying administration for the privatized INTELSAT's existing and future orbital slot registrations.
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§765d. Termination of provisions of this chapter
Effective on the dates specified, the following provisions of this chapter shall cease to be effective:
(1) March 17, 2000: Paragraphs (1), (5) and (6) of
(2) Upon the transfer of assets to a successor entity and receipt by signatories or former signatories (including COMSAT) of ownership shares in the successor entity of INTELSAT in accordance with appropriate arrangements determined by INTELSAT to implement privatization:
(3) On the effective date of a Commission order determining under
(4) On the effective date of a Commission order determining under
(
Editorial Notes
References in Text
The transfer of assets and receipt by signatories of ownership shares in the successor entity of INTELSAT, referred to in par. (2), occurred on July 18, 2001. See FCC Report to Congress as Required by the ORBIT Act, FCC 02-170, 17 FCC Rcd. 11458 (released June 14, 2002).
The effective date of the Commission order relating to Inmarsat privatization, referred to in par. (3), is June 14, 2005. See In the Matter of Inmarsat Group Holdings Limited Petition for Declaratory Ruling Pursuant to Section 621(5)(F) of the ORBIT Act, Memorandum Opinion and Order, IB Docket 04-439, FCC 05-126 (released June 14, 2005).
The effective date of the Commission order relating to INTELSAT privatization, referred to in par. (4), is Apr. 15, 2005. See In the Matter of Intelsat, Ltd. Petition for Declaratory Ruling that Intelsat, Ltd. Complies With Section 621(5)(F) of the ORBIT Act, Memorandum Opinion and Order, IB Docket 05-18, FCC 05-86 (released April 15, 2005).
1 See References in Text note below.
§765e. Repealed. Pub. L. 115–141, div. P, title IV, §402(a), Mar. 23, 2018, 132 Stat. 1089
Section,
§765f. Satellite auctions
Notwithstanding any other provision of law, the Commission shall not have the authority to assign by competitive bidding orbital locations or spectrum used for the provision of international or global satellite communications services. The President shall oppose in the International Telecommunication Union and in other bilateral and multilateral fora any assignment by competitive bidding of orbital locations or spectrum used for the provision of such services.
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§765g. Exclusivity arrangements
(a) In general
No satellite operator shall acquire or enjoy the exclusive right of handling telecommunications to or from the United States, its territories or possessions, and any other country or territory by reason of any concession, contract, understanding, or working arrangement to which the satellite operator or any persons or companies controlling or controlled by the operator are parties.
(b) Exception
In enforcing the provisions of this section, the Commission—
(1) shall not require the termination of existing satellite telecommunications services under contract with, or tariff commitment to, such satellite operator; but
(2) may require the termination of new services only to the country that has provided the exclusive right to handle telecommunications, if the Commission determines the public interest, convenience, and necessity so requires.
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Part D—Negotiations To Pursue Privatization
§767. Methods to pursue privatization
The President shall secure the pro-competitive privatizations required by this subchapter in a manner that meets the criteria in part B.
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Part E—Definitions
§769. Definitions
(a) In general
As used in this subchapter:
(1) INTELSAT
The term "INTELSAT" means the International Telecommunications Satellite Organization established pursuant to the Agreement Relating to the International Telecommunications Satellite Organization (INTELSAT).
(2) Inmarsat
The term "Inmarsat" means the International Mobile Satellite Organization established pursuant to the Convention on the International Maritime Organization.
(3) Signatories
The term "signatories"—
(A) in the case of INTELSAT, or INTELSAT successors or separated entities, means a Party, or the telecommunications entity designated by a Party, that has signed the Operating Agreement and for which such Agreement has entered into force; and
(B) in the case of Inmarsat, or Inmarsat successors or separated entities, means either a Party to, or an entity that has been designated by a Party to sign, the Operating Agreement.
(4) Party
The term "Party"—
(A) in the case of INTELSAT, means a nation for which the INTELSAT agreement has entered into force; and
(B) in the case of Inmarsat, means a nation for which the Inmarsat convention has entered into force.
(5) Commission
The term "Commission" means the Federal Communications Commission.
(6) International Telecommunication Union
The term "International Telecommunication Union" means the intergovernmental organization that is a specialized agency of the United Nations in which member countries cooperate for the development of telecommunications, including adoption of international regulations governing terrestrial and space uses of the frequency spectrum as well as use of the geostationary satellite orbit.
(7) Successor entity
The term "successor entity"—
(A) means any privatized entity created from the privatization of INTELSAT or Inmarsat or from the assets of INTELSAT or Inmarsat; but
(B) does not include any entity that is a separated entity.
(8) Separated entity
The term "separated entity" means a privatized entity to whom a portion of the assets owned by INTELSAT or Inmarsat are transferred prior to full privatization of INTELSAT or Inmarsat, including in particular the entity whose structure was under discussion by INTELSAT as of March 25, 1998, but excluding ICO.
(9) Orbital location
The term "orbital location" means the location for placement of a satellite on the geostationary orbital arc as defined in the International Telecommunication Union Radio Regulations.
(10) Space segment
The term "space segment" means the satellites, and the tracking, telemetry, command, control, monitoring and related facilities and equipment used to support the operation of satellites owned or leased by INTELSAT, Inmarsat, or a separated entity or successor entity.
(11) Non-core services
The term "non-core services" means, with respect to INTELSAT provision, services other than public-switched network voice telephony and occasional-use television, and with respect to Inmarsat provision, services other than global maritime distress and safety services or other existing maritime or aeronautical services for which there are not alternative providers.
(12) Additional services
The term "additional services" means—
(A) for Inmarsat, those non-maritime or non-aeronautical mobile services in the 1.5 and 1.6 Ghz band on planned satellites or the 2 Ghz band; and
(B) for INTELSAT, direct-to-home (DTH) or direct broadcast satellite (DBS) video services, or services in the Ka or V bands.
(13) INTELSAT Agreement
The term "INTELSAT Agreement" means the Agreement Relating to the International Telecommunications Satellite Organization ("INTELSAT"), including all its annexes (TIAS 7532, 23 UST 3813).
(14) Headquarters Agreement
The term "Headquarters Agreement" means the International Telecommunication 1 Satellite Organization Headquarters Agreement (November 24, 1976) (TIAS 8542, 28 UST 2248).
(15) Operating Agreement
The term "Operating Agreement" means—
(A) in the case of INTELSAT, the agreement, including its annex but excluding all titles of articles, opened for signature at Washington on August 20, 1971, by Governments or telecommunications entities designated by Governments in accordance with the provisions of the Agreement; and
(B) in the case of Inmarsat, the Operating Agreement on the International Maritime Satellite Organization, including its annexes.
(16) Inmarsat Convention
The term "Inmarsat Convention" means the Convention on the International Maritime Satellite Organization (Inmarsat) (TIAS 9605, 31 UST 1).
(17) National corporation
The term "national corporation" means a corporation the ownership of which is held through publicly traded securities, and that is incorporated under, and subject to, the laws of a national, state, or territorial government.
(18) COMSAT
The term "COMSAT" means the corporation established pursuant to subchapter III of this chapter, or the successor in interest to such corporation.
(19) ICO
The term "ICO" means the company known, as of March 17, 2000, as ICO Global Communications, Inc.
(20) Global maritime distress and safety services or GMDSS
The term "global maritime distress and safety services" or "GMDSS" means the automated ship-to-shore distress alerting system which uses satellite and advanced terrestrial systems for international distress communications and promoting maritime safety in general. The GMDSS permits the worldwide alerting of vessels, coordinated search and rescue operations, and dissemination of maritime safety information.
(21) National security agency
The term "national security agency" means the National Security Agency, the Director of Central Intelligence and the Central Intelligence Agency, the Department of Defense, and the Coast Guard.
(b) Common terminology
Except as otherwise provided in subsection (a), terms used in this subchapter that are defined in
(
Statutory Notes and Related Subsidiaries
Change of Name
Reference to the Director of Central Intelligence or the Director of the Central Intelligence Agency in the Director's capacity as the head of the intelligence community deemed to be a reference to the Director of National Intelligence. Reference to the Director of Central Intelligence or the Director of the Central Intelligence Agency in the Director's capacity as the head of the Central Intelligence Agency deemed to be a reference to the Director of the Central Intelligence Agency. See section 1081(a), (b) of
Transfer of Functions
For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security, and for treatment of related references, see