[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2170 Introduced in Senate (IS)]
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118th CONGRESS
1st Session
S. 2170
To amend the Export Control Reform Act of 2018 to provide for a
presumption of denial of licenses for the export, reexport, or in-
country transfer of technology to end users in the People's Republic of
China or the Russian Federation, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 22, 2023
Mr. Rubio (for himself and Mr. Wicker) introduced the following bill;
which was read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
A BILL
To amend the Export Control Reform Act of 2018 to provide for a
presumption of denial of licenses for the export, reexport, or in-
country transfer of technology to end users in the People's Republic of
China or the Russian Federation, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Depriving Enemy Nations of Integral
Authorizations and Licenses Act of 2023'' or the ``DENIAL Act of
2023''.
SEC. 2. PRESUMPTION OF DENIAL FOR LICENSES FOR EXPORT, REEXPORT, OR IN-
COUNTRY TRANSFER OF TECHNOLOGY TO END USERS IN THE
PEOPLE'S REPUBLIC OF CHINA OR THE RUSSIAN FEDERATION.
Section 1756 of the Export Control Reform Act of 2018 (50 U.S.C.
4815) is amended by adding at the end the following:
``(e) Presumption of Denial for Licenses for Export, Reexport, or
In-Country Transfer of Technology To End Users in the People's Republic
of China or the Russian Federation.--
``(1) In general.--Except as provided by paragraph (2), the
Secretary shall deny an application for a license or other
authorization for the export, reexport, or in-country transfer
of technology if the end user of the technology is a covered
person.
``(2) Congressional notification and review process.--
``(A) In general.--Before approving an application
for a license or other authorization described in
paragraph (1), the Secretary shall submit to the
appropriate congressional committees a report--
``(i) specifying the intended end user of
the technology that is the subject of the
application;
``(ii) specifying the dollar value of the
technology;
``(iii) describing the technology;
``(iv) describing the proposed end use of
the technology;
``(v) describing how authorizing the
export, reexport, or in-country transfer of the
technology to the specific end user advances
the national security interests of the United
States; and
``(vi) describing how authorizing the
export, reexport, or in-country transfer of the
technology to the specific user does not
advance the national security interests of a
covered country, including--
``(I) the Made in China 2025
industrial strategy of the People's
Republic of China;
``(II) the military-civil fusion
national strategy of the People's
Republic of China, including transfer
of technology to any entity identified
as part of that strategy, including--
``(aa) any college or
university known as one of the
`Seven Sons of National
Defense';
``(bb) any college or
university that receives
funding from--
``(AA) the People's
Liberation Army; or
``(BB) the
Equipment Development
Department, or the
Science and Technology
Commission, of the
Central Military
Commission of the
People's Republic of
China;
``(cc) any college or
university in the People's
Republic of China involved in
military training and
education, including any such
college or university in
partnership with the People's
Liberation Army;
``(dd) any college or
university in the People's
Republic of China that conducts
military research or hosts
dedicated military initiatives
or laboratories, including such
a college or university
designated under the `double
first-class university plan';
``(ee) any college or
university in the People's
Republic of China that is
designated by the State
Administration for Science,
Technology, and Industry for
the National Defense to host
`joint construction' programs;
``(ff) any college or
university in the People's
Republic of China that has
launched a platform for
military-civil fusion or
created national defense
laboratories;
``(gg) any college or
university in the People's
Republic of China that conducts
research or hosts dedicated
initiatives or laboratories for
any other related security
entity beyond the People's
Liberation Army, including the
People's Armed Police, the
Ministry of Public Security,
and the Ministry of State
Security;
``(hh) any enterprise for
which the majority shareholder
or ultimate parent entity is
the Government of the People's
Republic of China at any level
of that government;
``(ii) any privately owned
company in the People's
Republic of China that--
``(AA) has received
a military production
license, such as the
Weapons and Equipment
Research and Production
Certificate, the
Equipment Manufacturing
Unit Qualification, the
Weapons and Equipment
Quality Management
System Certificate, or
the Weapons and
Equipment Research and
Production Unit
Classified
Qualification Permit;
``(BB) is otherwise
known to materially
support the military
initiatives of the
People's Republic of
China;
``(CC) has a
history of
subcontracting for the
People's Liberation
Army or its affiliates;
``(DD) is
participating in, or
receiving benefits
under, a military-civil
fusion demonstration
base; or
``(EE) has an
owner, director, or a
senior management
official who has served
as a delegate to the
National People's
Congress, a member of
the Chinese People's
Political Consultative
Conference, or a member
of the Central
Committee of the
Chinese Communist
Party; or
``(III) the Science and Technology
Foresight 2030 policy of the Russian
Federation, including transfer of
technology to any entity identified as
part of that strategy, including--
``(aa) the Advanced
Research Foundation;
``(bb) the Era Military
Innovation Technopolis;
``(cc) any college or
university that receives
funding from the Ministry of
Defense of the Russian
Federation;
``(dd) any entity for which
the majority shareholder or
ultimate parent entity is the
Government of the Russian
Federation at any level of that
government; or
``(ee) any privately owned
company in the Russian
Federation that--
``(AA) is otherwise
known to materially
support the military
initiatives of the
Russian Federation; or
``(BB) has
subcontracted for the
Ministry of Defense of
the Russian Federation
or its affiliates.
``(B) Limitation on approval during review
period.--The Secretary may not approve an application
for a license or other authorization described in
paragraph (1) during the 30-day period beginning on the
date on which the appropriate congressional committees
receive the report required by subparagraph (A) unless
the Secretary, in the report--
``(i) states that the Secretary has
determined that a pressing national security
imperative exists, such that the national
security interests of the United States
necessitate the immediate approval of the
license or other authorization; and
``(ii) provides a detailed justification
for that determination, including--
``(I) a description of the
emergency circumstances that
necessitate the immediate approval of
the license or other authorization; and
``(II) a discussion of the national
security interests involved.
``(C) Prohibition on approval if joint resolution
of disapproval enacted.--The Secretary may not approve
an application for a license or other authorization
described in paragraph (1) if, during the 30-day period
described in subparagraph (B), there is enacted into
law a joint resolution prohibiting the approval of the
application.
``(D) Consideration of joint resolution.--
``(i) Senate.--Any joint resolution under
this paragraph shall be considered in the
Senate in accordance with the provisions of
section 601(b) of the International Security
Assistance and Arms Export Control Act of 1976
(Public Law 94-329; 90 Stat. 765).
``(ii) House of representatives.--For the
purpose of expediting the consideration and
enactment of joint resolutions under this
paragraph, a motion to proceed to the
consideration of any such joint resolution
after it has been reported by the appropriate
committee shall be treated as highly privileged
in the House of Representatives.
``(iii) Rules of house of representatives
and senate.--This subparagraph is enacted by
Congress--
``(I) as an exercise of the
rulemaking power of the Senate and the
House of Representatives, respectively,
and as such is deemed a part of the
rules of each House, respectively, and
supersedes other rules only to the
extent that it is inconsistent with
such rules; and
``(II) with full recognition of the
constitutional right of either House to
change the rules (so far as relating to
the procedure of that House) at any
time, in the same manner, and to the
same extent as in the case of any other
rule of that House.
``(3) Definitions.--In this subsection:
``(A) Appropriate congressional committees.--The
term `appropriate congressional committees' means--
``(i) the Committee on Banking, Housing,
and Urban Affairs, the Committee on Foreign
Relations, and the Select Committee on
Intelligence of the Senate; and
``(ii) the Committee on Financial Services,
the Committee on Foreign Affairs, and the
Permanent Select Committee on Intelligence of
the House of Representatives.
``(B) Covered country.--The term `covered country'
means--
``(i) the People's Republic of China
(including the Hong Kong Special Administrative
Region and the Macau Special Administrative
Region); and
``(ii) the Russian Federation.
``(C) Covered person.--The term `covered person'
means--
``(i) an individual who is a citizen or
national of a covered country; or
``(ii) an entity organized under the laws
of a covered country or otherwise subject to
the jurisdiction of the government of a covered
country.''.
SEC. 3. EXPORT CONTROL TREATMENT OF SUBSIDIARIES OF ENTITIES ON THE
ENTITY LIST.
(a) In General.--Not later than 30 days after the date of the
enactment of this Act, the Secretary of Commerce shall revise part 744
of title 15, Code of Federal Regulations, to ensure that the same
requirements and restrictions that apply to an entity on the Entity
List apply to an entity owned or controlled by an entity on the Entity
List, including an entity--
(1) 50 percent or more of the ownership interest in which
is held in the aggregate, directly or indirectly, by one or
more entities on the Entity List; or
(2) that the Secretary of Commerce considers to have an
interest in all property and interests in property of an entity
in which 50 percent or more of the ownership interest is held
in the aggregate, directly or indirectly, by one or more
entities on the Entity List.
(b) Entity List Defined.--In this section, the term ``Entity List''
means the list maintained by the Bureau of Industry and Security of the
Department of Commerce and set forth in Supplement No. 4 to part 744 of
title 15, Code of Federal Regulations.
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