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115th Congress     }                              {     Rept. 115-784
                        HOUSE OF REPRESENTATIVES
 2d Session        }                              {            Part 1

======================================================================



 
        FOREIGN INVESTMENT RISK REVIEW MODERNIZATION ACT OF 2018

                                _______
                                

                 June 26, 2018.--Ordered to be printed

                                _______
                                

Mr. Hensarling, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 5841]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 5841) to modernize and strengthen the Committee 
on Foreign Investment in the United States to more effectively 
guard against the risk to the national security of the United 
States posed by certain types of foreign investment, and for 
other purposes, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Foreign Investment 
Risk Review Modernization Act of 2018''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

                TITLE I--FINDINGS AND SENSE OF CONGRESS

Sec. 101. Findings and sense of Congress.

                         TITLE II--DEFINITIONS

Sec. 201. Definitions.

 TITLE III--IMPROVEMENTS TO THE OPERATIONS OF THE COMMITTEE ON FOREIGN 
                    INVESTMENT IN THE UNITED STATES

Sec. 301. Inclusion of partnership and side agreements in notice.
Sec. 302. Declarations relating to certain covered transactions.
Sec. 303. Timing for reviews and investigations.
Sec. 304. Submission of certifications to Congress.
Sec. 305. Analysis by Director of National Intelligence.
Sec. 306. Information sharing.
Sec. 307. Action by the President.
Sec. 308. Factors to be considered.
Sec. 309. Mitigation and other actions by the Committee to address 
national security risks.
Sec. 310. Certification of notices and information.
Sec. 311. Additional regulations.

                TITLE IV--MODIFICATION OF ANNUAL REPORT

Sec. 401. Modification of annual report.
Sec. 402. Report on transactions with censorship implications.

       TITLE V--RESOURCES, SPECIAL HIRING AUTHORITY, AND OUTREACH

Sec. 501. Centralization of certain Committee functions.
Sec. 502. CFIUS resource needs.
Sec. 503. Funding.
Sec. 504. CFIUS outreach.

               TITLE VI--MISCELLANEOUS FIRRMA PROVISIONS

Sec. 601. Conforming amendment.
Sec. 602. Regulatory certainty for United States businesses.

          TITLE VII--COMMON SENSE CREDIT UNION CAPITAL RELIEF

Sec. 701. Delay in effective date.

                   TITLE VIII--EXPORT CONTROL REFORM

Sec. 801. Short title.
Sec. 802. Definitions.

          Subtitle A--Authority and Administration of Controls

Sec. 811. Short title.
Sec. 812. Statement of policy.
Sec. 813. Authority of the President.
Sec. 814. Additional authorities.
Sec. 815. Administration of export controls.
Sec. 816. Control lists.
Sec. 817. Licensing.
Sec. 818. Compliance assistance.
Sec. 819. Requirements to identify and control emerging, foundational, 
and other critical technologies in export control regulations.
Sec. 820. Review relating to countries subject to comprehensive United 
States arms embargo.
Sec. 821. Penalties.
Sec. 822. Enforcement.
Sec. 823. Administrative procedure.
Sec. 824. Annual report to Congress.
Sec. 825. Repeal.
Sec. 826. Effect on other Acts.
Sec. 827. Transition provisions.

                  Subtitle B--Anti-Boycott Act of 2018

Sec. 831. Short title.
Sec. 832. Statement of policy.
Sec. 833. Foreign boycotts.
Sec. 834. Enforcement.

Subtitle C--Sanctions Regarding Missile Proliferation and Chemical and 
                    Biological Weapons Proliferation

Sec. 841. Missile proliferation control violations.
Sec. 842. Chemical and biological weapons proliferation sanctions.

                 Subtitle D--Administrative Authorities

Sec. 851. Under Secretary of Commerce for Industry and Security.

                TITLE I--FINDINGS AND SENSE OF CONGRESS

SEC. 101. FINDINGS AND SENSE OF CONGRESS.

  (a) Findings.--The Congress finds the following:
          (1) According to a February 2016 report by the Department of 
        Commerce's International Trade Administration, 12 million 
        United States workers, equivalent to 8.5 percent of the labor 
        force, have jobs resulting from foreign investment, including 
        3.5 million jobs in the manufacturing sector alone.
          (2) In 2016, new foreign direct investment in U.S. 
        manufacturing totaled $129.4 billion.
          (3) The Department of Commerce's Bureau of Economic Analysis 
        concluded that in 2015, foreign-owned affiliates in the United 
        States--
                  (A) Contributed $894.5 billion in value added to the 
                U.S. economy;
                  (B) exported goods valued at $352.8 billion, 
                accounting for nearly a quarter of total U.S. goods 
                exports;
                  (C) undertook $56.7 billion in research and 
                development; and
                  (D) the seven largest investing countries, all of 
                which are United States allies - the United Kingdom, 
                Japan, Germany, France, Canada, Switzerland, and the 
                Netherlands - accounted for 72.1 percent of U.S. 
                affiliate value added and over 80 percent of 
                affiliates' R&D expenditures.
          (4) According to the Government Accountability Office (GAO), 
        from 2011 to 2016, the number of transactions reviewed by the 
        Committee on Foreign Investment in the United States (CFIUS) 
        grew by 55 percent, while agency staff assigned to the reviews 
        increased by 11 percent.
          (5) In light of staffing constraints at CFIUS, GAO has 
        cautioned against expanding CFIUS's authorities precipitously. 
        According to a February 2018 report (GAO-18-249), GAO noted: 
        ``Officials from Treasury and other member agencies are aware 
        of pressures on their CFIUS staff given the current workload 
        and have expressed concerns about possible workload 
        increases.''. GAO concluded: ``Without attaining an 
        understanding of the staffing levels needed to address the 
        current and future CFIUS workload, particularly if legislative 
        changes to CFIUS's authorities further expand its workload, 
        CFIUS may be limited in its ability to fulfill its objectives 
        and address threats to the national security of the United 
        States.''.
          (6) On March 30, 1954, Dwight David Eisenhower - five-star 
        general, Supreme Allied Commander, and 34th President of the 
        United States - in his ``Special Message to the Congress on 
        Foreign Economic Policy'', counseled: ``Great mutual advantages 
        to buyer and seller, to producer and consumer, to investor and 
        to the community where investment is made, accrue from high 
        levels of trade and investment.''. He continued: ``The internal 
        strength of the American economy has evolved from such a system 
        of mutual advantage. In the press of other problems and in the 
        haste to meet emergencies, this nation - and many other nations 
        of the free world - have all too often lost sight of this 
        central fact.''. President Eisenhower concluded: ``If we fail 
        in our trade policy, we may fail in all. Our domestic 
        employment, our standard of living, our security, and the 
        solidarity of the free world - all are involved.''.
  (b) Sense of Congress.--It is the sense of Congress that--
          (1) foreign investment provides substantial benefits to the 
        United States, including the promotion of economic growth, 
        productivity, innovation, competitiveness, and job creation, 
        thereby enhancing U.S. national security;
          (2) maintaining the commitment of the United States to an 
        open investment policy encourages other countries to act 
        similarly and helps expand foreign markets for U.S. businesses;
          (3) the Committee on Foreign Investment in the United States, 
        as a complement to domestic and multilateral export control 
        regimes, plays a critical role in protecting the national 
        security of the United States;
          (4) in order to maintain the Committee's effectiveness and 
        guard against mission creep, CFIUS should remain narrowly 
        focused on confronting risks related to national security;
          (5) it is essential that the member agencies of the Committee 
        are adequately resourced and able to hire appropriately 
        qualified individuals in a timely manner so that CFIUS may 
        promptly complete transaction reviews, identify and respond to 
        evolving national security risks, and enforce mitigation 
        agreements effectively;
          (6) the President should carry out international outreach to 
        promote the benefits of foreign investment for global economic 
        growth, while also assisting United States partners to address 
        national security risks; and
          (7) it is the policy of the United States to enthusiastically 
        welcome and support foreign investment, consistent with 
        national security considerations.

                         TITLE II--DEFINITIONS

SEC. 201. DEFINITIONS.

  Section 721(a) of the Defense Production Act of 1950 (50 U.S.C. 
4565(a)) is amended--
          (1) by striking paragraphs (2), (3), and (4) and inserting 
        the following:
          ``(2) Control.--The term `control' means the power, direct or 
        indirect, whether or not exercised, to determine, direct, or 
        decide important matters affecting an entity, subject to 
        regulations prescribed by the Committee.
          ``(3) Covered transaction.--
                  ``(A) In general.--The term `covered transaction' 
                means any transaction described in subparagraph (B) or 
                (C) that is proposed, pending, or completed on or after 
                the date of the enactment of the Foreign Investment 
                Risk Review Modernization Act of 2018.
                  ``(B) Transactions described.--A transaction 
                described in this subparagraph is any of the following:
                          ``(i) Any merger, acquisition, takeover, or 
                        joint venture that is proposed or pending after 
                        August 23, 1988, by or with any foreign person 
                        that could result in foreign control of any 
                        United States business.
                          ``(ii) The purchase or lease by, or 
                        concession to, a foreign person of private or 
                        public real estate that--
                                  ``(I) is--
                                          ``(aa) located in the United 
                                        States and is, or is in close 
                                        proximity to, a United States 
                                        military installation; or
                                          ``(bb) itself, or is located 
                                        at and will function as part 
                                        of, an air or sea port;
                                  ``(II) is not a single housing unit, 
                                as defined by the Bureau of the Census;
                                  ``(III) is not in an urbanized area, 
                                as set forth by the Bureau of the 
                                Census in its most recent census, 
                                except as otherwise prescribed by the 
                                Committee in regulations in 
                                consultation with the Secretary of 
                                Defense; and
                                  ``(IV) meets such other criteria as 
                                the Committee prescribes by regulation.
                          ``(iii) Any change in the rights that a 
                        foreign person has with respect to a United 
                        States business in which the foreign person has 
                        an investment, if that change is likely to 
                        result in foreign control of the United States 
                        business.
                          ``(iv) Any transaction or other device 
                        entered into or employed for the purpose of 
                        evading this section, subject to regulations 
                        prescribed by the Committee.
                  ``(C) Sensitive transactions involving countries of 
                special concern.--
                          ``(i) In general.--A transaction described in 
                        this subparagraph is any investment in an 
                        unaffiliated United States business by a 
                        foreign person that--
                                  ``(I) is--
                                          ``(aa) a national or a 
                                        government of, or a foreign 
                                        entity organized under the laws 
                                        of, a country of special 
                                        concern; or
                                          ``(bb) a foreign entity--
                                                  ``(AA) over which 
                                                control is exercised or 
                                                exercisable by a 
                                                national or a 
                                                government of, or by a 
                                                foreign entity 
                                                organized under the 
                                                laws of, a country of 
                                                special concern; or
                                                  ``(BB) in which the 
                                                government of a country 
                                                of special concern has 
                                                a substantial interest; 
                                                and
                                  ``(II) as a result of the 
                                transaction, could obtain---
                                          ``(aa) sensitive personal 
                                        data, as defined by regulations 
                                        prescribed by the Committee, of 
                                        United States citizens, if such 
                                        data may be exploited in a 
                                        manner that threatens national 
                                        security; or
                                          ``(bb) influence over 
                                        substantive decisionmaking of 
                                        the United States business 
                                        regarding the use, development, 
                                        acquisition, or release of--
                                                  ``(AA) sensitive 
                                                personal data of United 
                                                States citizens, as 
                                                described in item (aa); 
                                                or
                                                  ``(BB) critical 
                                                technologies.
                          ``(ii) Country of special concern.--For the 
                        purposes of this subparagraph, the term 
                        `country of special concern' means--
                                  ``(I) any foreign country that is 
                                subject to export restrictions pursuant 
                                to section 744.21 of title 15, Code of 
                                Federal Regulations;
                                  ``(II) any country determined by the 
                                Secretary of State to be a state 
                                sponsor of terrorism; and
                                  ``(III) any country that--
                                          ``(aa) is subject to a United 
                                        States arms embargo, as 
                                        specified in list D:5 of 
                                        Country Group D in Supplement 
                                        No. 1 to part 740 of title 15, 
                                        Code of Federal Regulations; 
                                        and
                                          ``(bb) is specified in 
                                        regulations prescribed by the 
                                        Committee.
                          ``(iii) Investment defined.--For the purposes 
                        of this subparagraph, the term `investment' 
                        means the acquisition of an equity interest, 
                        including contingent equity interest, as 
                        further defined in regulations prescribed by 
                        the Committee.
                          ``(iv) Unaffiliated united states business 
                        defined.--For the purposes of this 
                        subparagraph, with respect to an investment 
                        described under clause (i), and as further 
                        defined in regulations prescribed by the 
                        Committee, the term `unaffiliated United States 
                        business' means a United States business that 
                        is not subject to the same ultimate ownership 
                        of the foreign person undertaking the 
                        investment.
                          ``(v) Waiver.--The President may waive any 
                        requirement of this subparagraph upon reporting 
                        to the Committees on Financial Services and 
                        Foreign Affairs of the House of Representatives 
                        and the Committees on Banking, Housing, and 
                        Urban Affairs and Foreign Relations of the 
                        Senate that the waiver is important to the 
                        national interest of the United States, with a 
                        detailed explanation of the reasons therefor.
                  ``(D) Exception for air carriers.--Subparagraph 
                (B)(iii) shall not apply to a change in the rights of a 
                person with respect to an investment involving an air 
                carrier, as defined in section 40102(a)(2) of title 49, 
                United States Code, that holds a certificate issued 
                under section 41102 of that title.
                  ``(E) Transfers of certain assets pursuant to 
                bankruptcy proceedings or other defaults.--The 
                Committee shall prescribe regulations to clarify that 
                the term `covered transaction' includes any transaction 
                described in subparagraph (B) or (C) that arises 
                pursuant to a bankruptcy proceeding or other form of 
                default on debt.
          ``(4) Foreign government-controlled transaction.--The term 
        `foreign government-controlled transaction' means any covered 
        transaction that could result in control of a United States 
        business by--
                  ``(A) a foreign government;
                  ``(B) a person controlled by or acting on behalf of a 
                foreign government; or
                  ``(C) a foreign company or entity of a country of 
                special concern (as defined under paragraph (3)(C)(ii)) 
                domiciled or having its principal place of business in 
                a county of special concern that is a non-market 
                economy, except to the extent the Committee promulgates 
                regulations exempting any such company, entity, or 
                country from this presumption.'';
          (2) by amending paragraph (7) to read as follows:
          ``(7) Critical technologies.--The term `critical 
        technologies' means--
                  ``(A) defense articles or defense services covered by 
                the United States Munitions List (USML), which is set 
                forth in the International Traffic in Arms Regulations 
                (ITAR) (22 C.F.R. parts 120-130);
                  ``(B) those items specified on the Commerce Control 
                List (CCL) set forth in Supplement No. 1 to part 774 of 
                the Export Administration Regulations (EAR) (15 C.F.R. 
                parts 730-774) that are controlled pursuant to 
                multilateral regimes (i.e. for reasons of national 
                security, chemical and biological weapons 
                proliferation, nuclear nonproliferation, or missile 
                technology), as well as those that are controlled for 
                reasons of regional stability or surreptitious 
                listening;
                  ``(C) specially designed and prepared nuclear 
                equipment, parts and components, materials, software, 
                and technology specified in the Assistance to Foreign 
                Atomic Energy Activities regulations (10 C.F.R. part 
                810), and nuclear facilities, equipment, and material 
                specified in the Export and Import of Nuclear Equipment 
                and Material regulations (10 C.F.R. part 110);
                  ``(D) select agents and toxins specified in the 
                Select Agents and Toxins regulations (7 C.F.R. part 
                331, 9 C.F.R. part 121, and 42 C.F.R. part 73); and
                  ``(E) emerging, foundational, or other critical 
                technologies that are controlled pursuant to section 
                819 of the Foreign Investment Risk Review Modernization 
                Act of 2018.''; and
          (3) by adding at the end the following:
          ``(9) Foreign person.--The term `foreign person' means--
                  ``(A) any foreign national, foreign government, or 
                foreign entity; or
                  ``(B) any entity over which control is exercised or 
                exercisable by a foreign national, foreign government, 
                or foreign entity.
          ``(10) Substantial interest.--The term `substantial interest' 
        has the meaning given to such term in regulations prescribed by 
        the Committee, but does not include a voting interest of less 
        than ten percent or ownership interests held or acquired solely 
        for the purpose of passive investment.
          ``(11) United states business.--The term `United States 
        business' means any entity, irrespective of the nationality of 
        the persons that control it, engaged in interstate commerce in 
        the United States, but only to the extent of its activities in 
        interstate commerce.''.

 TITLE III--IMPROVEMENTS TO THE OPERATIONS OF THE COMMITTEE ON FOREIGN 
                    INVESTMENT IN THE UNITED STATES

SEC. 301. INCLUSION OF PARTNERSHIP AND SIDE AGREEMENTS IN NOTICE.

  Section 721(b)(1)(C) of the Defense Production Act of 1950 (50 U.S.C. 
4565(b)(1)(C)) is amended by adding at the end the following:
                          ``(iv) Inclusion of partnership and side 
                        agreements.--Subject to regulations prescribed 
                        by the Committee, the Committee may require a 
                        written notice submitted under clause (i) by a 
                        party to a covered transaction to include a 
                        copy of any partnership agreements, integration 
                        agreements, or other side agreements relating 
                        to the transaction.''.

SEC. 302. DECLARATIONS RELATING TO CERTAIN COVERED TRANSACTIONS.

  (a) In General.--Section 721(b)(1)(C) of the Defense Production Act 
of 1950 (50 U.S.C. 4565(b)(1)(C)), as amended by section 301, is 
further amended by adding at the end the following:
                          ``(v) Declarations with respect to certain 
                        covered transactions.--
                                  ``(I) Voluntary declarations.--For 
                                the purpose of expediting the review of 
                                certain covered transactions that the 
                                Committee determines are likely to pose 
                                limited risk, the Committee may 
                                prescribe regulations to permit parties 
                                to the transaction to submit a 
                                declaration with basic information 
                                regarding the transaction, unless the 
                                parties submit a written notice under 
                                clause (i).
                                  ``(II) Mandatory declarations.--
                                          ``(aa) In general.--The 
                                        Committee shall prescribe 
                                        regulations to require the 
                                        parties to a covered 
                                        transaction to submit a 
                                        declaration described in 
                                        subclause (I) with respect to 
                                        the transaction if the 
                                        transaction involves an 
                                        investment that results in the 
                                        release of critical 
                                        technologies by an unaffiliated 
                                        United States business (as 
                                        defined under subsection 
                                        (a)(3)(C)(iii)) to a foreign 
                                        person in which a foreign 
                                        government has, directly or 
                                        indirectly, a substantial 
                                        interest.
                                          ``(bb) Submission of written 
                                        notice as an alternative.--
                                        Parties to a covered 
                                        transaction for which a 
                                        declaration is required under 
                                        this clause may instead elect 
                                        to submit a written notice 
                                        under clause (i).
                                          ``(cc) Timing of 
                                        submission.--With respect to 
                                        the regulations described under 
                                        subclause (I), the Committee 
                                        may not require a declaration 
                                        to be submitted more than 30 
                                        days in advance of the 
                                        completion of the transaction.
                                  ``(III) Penalties.--The Committee may 
                                impose a penalty pursuant to subsection 
                                (h)(3)(A) with respect to a party that 
                                fails to comply with this clause.
                                  ``(IV) Committee response to 
                                declaration.--
                                          ``(aa) In general.--Upon 
                                        receiving a declaration under 
                                        this clause with respect to a 
                                        transaction, the Committee may, 
                                        at its discretion--
                                                  ``(AA) request that 
                                                the parties to the 
                                                transaction file a 
                                                written notice under 
                                                clause (i), provided 
                                                that the Committee 
                                                includes an explanation 
                                                of the reasons for the 
                                                request;
                                                  ``(BB) inform the 
                                                parties to the 
                                                transaction that the 
                                                Committee is not able 
                                                to complete action 
                                                under this section with 
                                                respect to the 
                                                transaction on the 
                                                basis of the 
                                                declaration and that 
                                                the parties may file a 
                                                written notice under 
                                                clause (i) to seek 
                                                written notification 
                                                from the Committee that 
                                                the Committee has 
                                                completed all action 
                                                under this section with 
                                                respect to the 
                                                transaction;
                                                  ``(CC) initiate a 
                                                unilateral review of 
                                                the transaction under 
                                                subparagraph (D); or
                                                  ``(DD) notify the 
                                                parties in writing that 
                                                the Committee has 
                                                completed all action 
                                                under this section with 
                                                respect to the 
                                                transaction.
                                          ``(bb) Timing.--The Committee 
                                        shall take action under item 
                                        (aa) within 15 days of 
                                        receiving a declaration under 
                                        this clause.
                                          ``(cc) Refiling of 
                                        declaration.--The Committee may 
                                        not request or recommend that a 
                                        declaration be withdrawn and 
                                        refiled, except to permit 
                                        parties to a transaction to 
                                        correct material errors or 
                                        omissions.
                                  ``(V) Regulations.--In prescribing 
                                regulations establishing requirements 
                                for declarations submitted under this 
                                clause, the Committee shall ensure that 
                                such declarations are submitted as 
                                abbreviated notifications that do not 
                                generally exceed 5 pages in length.
                                  ``(VI) Investment defined.--For the 
                                purposes of this clause, the term 
                                `investment' means the acquisition of 
                                an equity interest, including 
                                contingent equity interest, as further 
                                defined in regulations prescribed by 
                                the Committee.''.
  (b) Stipulations Regarding Transactions.--Section 721(b)(1)(C) of the 
Defense Production Act of 1950 (50 U.S.C. 4565(b)(1)(C)), as amended by 
this section, is further amended by adding at the end the following:
                          ``(vi) Stipulations regarding transactions.--
                                  ``(I) In general.--In a written 
                                notice submitted under clause (i) or a 
                                declaration submitted under clause (v) 
                                with respect to a transaction, a party 
                                to the transaction may--
                                          ``(aa) stipulate that the 
                                        transaction is a covered 
                                        transaction; and
                                          ``(bb) if the party 
                                        stipulates that the transaction 
                                        is a covered transaction under 
                                        item (aa), stipulate that the 
                                        transaction is a foreign 
                                        government-controlled 
                                        transaction.
                                  ``(II) Basis for stipulation.--A 
                                written notice submitted under clause 
                                (i) or a declaration submitted under 
                                clause (v) that includes a stipulation 
                                under subclause (I) shall include a 
                                description of the basis for the 
                                stipulation.''.

SEC. 303. TIMING FOR REVIEWS AND INVESTIGATIONS.

  Section 721(b) of the Defense Production Act of 1950 (50 U.S.C. 
4565(b)) is amended--
          (1) in paragraph (2), by striking subparagraph (C) and 
        inserting the following:
                  ``(C) Timing.--
                          ``(i) In general.--Except as provided in 
                        clause (ii), any investigation under 
                        subparagraph (A) shall be completed before the 
                        end of the 45-day period beginning on the date 
                        on which the investigation commenced.
                          ``(ii) Extension for extraordinary 
                        circumstances.--
                                  ``(I) In general.--In extraordinary 
                                circumstances (as defined by the 
                                Committee in regulations), the 
                                chairperson may, at the request of the 
                                head of the lead agency, extend an 
                                investigation under subparagraph (A) 
                                for not more than one 15-day period.
                                  ``(II) Nondelegation.--The authority 
                                of the chairperson and the head of the 
                                lead agency referred to in subclause 
                                (I) may not be delegated to any person 
                                other than the Deputy Secretary of the 
                                Treasury or the deputy head (or 
                                equivalent thereof) of the lead agency, 
                                as the case may be.
                                  ``(III) Notification to parties.--If 
                                the Committee extends the deadline 
                                under subclause (I) with respect to a 
                                covered transaction, the Committee 
                                shall notify the parties to the 
                                transaction of the extension.''; and
          (2) by adding at the end the following:
          ``(8) Tolling of deadlines during lapse in appropriations.--
        Any deadline or time limitation under this subsection shall be 
        tolled during a lapse in appropriations.''.

SEC. 304. SUBMISSION OF CERTIFICATIONS TO CONGRESS.

  Section 721(b)(3)(C) of the Defense Production Act of 1950 (50 U.S.C. 
4565(b)(3)(C)) is amended--
          (1) in clause (i), by amending subclause (II) to read as 
        follows:
                                  ``(II) a certification that all 
                                relevant national security factors, 
                                including factors enumerated in 
                                subsection (f), have received full 
                                consideration.''; and
          (2) by adding at the end the following:
                          ``(v) Authority to consolidate documents.--
                        Instead of transmitting a separate certified 
                        notice or certified report under subparagraph 
                        (A) or (B) with respect to each covered 
                        transaction, the Committee may, on a monthly 
                        basis, transmit such notices and reports in a 
                        consolidated document to the Members of 
                        Congress specified in clause (iii).''.

SEC. 305. ANALYSIS BY DIRECTOR OF NATIONAL INTELLIGENCE.

  Section 721(b)(4) of the Defense Production Act of 1950 (50 U.S.C. 
4565(b)(4)) is amended--
          (1) by striking subparagraph (A) and inserting the following:
                  ``(A) Analysis required.--
                          ``(i) In general.--The Director of National 
                        Intelligence shall expeditiously carry out a 
                        thorough analysis of any threat to the national 
                        security of the United States posed by any 
                        covered transaction, which shall include the 
                        identification of any recognized gaps in the 
                        collection of intelligence relevant to the 
                        analysis.
                          ``(ii) Views of intelligence agencies.--The 
                        Director shall seek and incorporate into the 
                        analysis required by clause (i) the views of 
                        all affected or appropriate intelligence 
                        agencies with respect to the transaction.
                          ``(iii) Updates.--At the request of the lead 
                        agency, the Director shall update the analysis 
                        conducted under clause (i) with respect to a 
                        covered transaction with respect to which an 
                        agreement was entered into under subsection 
                        (l)(3)(A).
                          ``(iv) Independence and objectivity.--The 
                        Committee shall ensure that its processes under 
                        this section preserve the ability of the 
                        Director to conduct an analysis under clause 
                        (i) that is independent, objective, and 
                        consistent with all applicable directives, 
                        policies, and analytic tradecraft standards of 
                        the intelligence community.''.
          (2) by redesignating subparagraphs (B), (C), and (D) as 
        subparagraphs (C), (D), and (E), respectively;
          (3) by inserting after subparagraph (A) the following:
                  ``(B) Basic threat information.--
                          ``(i) In general.--The Director of National 
                        Intelligence may provide the Committee with 
                        basic information regarding any threat to the 
                        national security of the United States posed by 
                        a covered transaction described in clause (ii) 
                        instead of conducting the analysis required by 
                        subparagraph (A).
                          ``(ii) Covered transaction described.--A 
                        covered transaction is described in this clause 
                        if--
                                  ``(I) the transaction is described in 
                                subsection (a)(3)(B)(ii);
                                  ``(II) the Director of National 
                                Intelligence has completed an analysis 
                                pursuant to subparagraph (A) involving 
                                each foreign person that is a party to 
                                the transaction during the 12 months 
                                preceding the review or investigation 
                                of the transaction under this section; 
                                or
                                  ``(III) the transaction otherwise 
                                meets criteria agreed upon by the 
                                Committee and the Director of National 
                                Intelligence for purposes of this 
                                subparagraph.'';
          (4) by adding at the end the following:
                  ``(F) Assessment of operational impact.--The Director 
                may provide to the Committee an assessment, separate 
                from the analyses under subparagraphs (A) and (B), of 
                any operational impact of a covered transaction on the 
                intelligence community and a description of any actions 
                that have been or will be taken to mitigate any such 
                impact.
                  ``(G) Submission to congress.--The Committee shall 
                include the analysis required by subparagraph (A) with 
                respect to a covered transaction in the report required 
                under subsection (m)(1), subject to the requirements of 
                subsection (m)(5).''.

SEC. 306. INFORMATION SHARING.

  Section 721(c) of the Defense Production Act of 1950 (50 U.S.C. 
4565(c)) is amended--
          (1) by striking ``Any information'' and inserting the 
        following:
          ``(1) In general.--Any information''; and
          (2) by adding at the end the following:
          ``(2) Exception.--Paragraph (1) shall not prohibit the 
        disclosure of information or documentary material that the 
        party filing such information or material consented to be 
        disclosed to third parties.''.

SEC. 307. ACTION BY THE PRESIDENT.

  (a) In General.--Section 721(d)(2) of the Defense Production Act of 
1950 (50 U.S.C. 4565(d)(2)) is amended by striking ``not later than 15 
days'' and all that follows and inserting the following: ``with respect 
to a covered transaction not later than 15 days after the earlier of--
                  ``(A) the date on which the investigation of the 
                transaction under subsection (b) is completed; or
                  ``(B) the date on which the Committee otherwise 
                refers the transaction to the President under 
                subsection (l)(4).''.
  (b) Civil Penalties.--Section 721(h)(3)(A) of the Defense Production 
Act of 1950 (50 U.S.C. 4565(h)(3)(A)) is amended by striking 
``including any mitigation'' and all that follows through ``subsection 
(l)'' and inserting ``including any mitigation agreement entered into, 
conditions imposed, or order issued pursuant to this section''.

SEC. 308. FACTORS TO BE CONSIDERED.

  Section 721(f) of the Defense Production Act of 1950 (50 U.S.C. 
4565(f)) is amended--
          (1) in paragraph (3), by striking the comma at the end and 
        inserting the following: ``, including the availability of 
        human resources, products, technology, materials, and other 
        supplies and services;'';
          (2) in paragraph (4), by striking ``proposed or pending'';
          (3) by striking paragraph (5);
          (4) by redesignating paragraphs (6), (7), (8), (9), (10), and 
        (11) as paragraphs (5), (6), (7), (8), (9), and (16), 
        respectively;
          (5) in paragraph (9), as so redesignated, by striking ``and'' 
        at the end;
          (6) by inserting after paragraph (9), as so redesignated, the 
        following:
          ``(10) the degree to which the covered transaction is likely 
        to threaten the ability of the United States Government to 
        acquire or maintain the equipment and systems that are 
        necessary for defense, intelligence, or other national security 
        functions;
          ``(11) the potential national security-related effects of the 
        cumulative control of any one type of critical infrastructure, 
        energy asset, material, or critical technology by a foreign 
        person;
          ``(12) whether any foreign person that would acquire control 
        of a United States business as a result of the covered 
        transaction has a history of--
                  ``(A) complying with United States laws and 
                regulations and prior adherence, if applicable, to any 
                agreement or condition, as described under (l)(1)(A); 
                and
                  ``(B) adhering to contracts or other agreements with 
                entities of the United States Government;
          ``(13) the extent to which the covered transaction is likely 
        to release, either directly or indirectly, sensitive personal 
        data of United States citizens to a foreign person that may 
        exploit that information in a manner that threatens national 
        security;
          ``(14) whether the covered transaction is likely to 
        exacerbate cybersecurity vulnerabilities or is likely to result 
        in a foreign government gaining a significant new capability to 
        engage in malicious cyber-enabled activities against the United 
        States, including such activities designed to affect the 
        outcome of any election for Federal office;
          ``(15) whether the covered transaction is likely to expose 
        any information regarding sensitive national security matters 
        or sensitive procedures or operations of a Federal law 
        enforcement agency with national security responsibilities to a 
        foreign person not authorized to receive that information; 
        and''; and
          (7) by adding at the end the following flush-left text:
``For purposes of this subsection, the phrase `the availability of 
human resources' shall be construed to consider potential losses of 
such availability resulting from reductions in the employment of United 
States persons whose knowledge or skills are critical to national 
security, including the continued production in the United States of 
items that are likely to be acquired by the Department of Defense or 
other Federal departments or agencies for the advancement of the 
national security of the United States.''.

SEC. 309. MITIGATION AND OTHER ACTIONS BY THE COMMITTEE TO ADDRESS 
                    NATIONAL SECURITY RISKS.

  Section 721(l) of the Defense Production Act of 1950 (50 U.S.C. 
4565(l)) is amended--
          (1) in paragraph (1)--
                  (A) in subparagraph (A)--
                          (i) in the heading, by striking ``In 
                        general'' and inserting ``Agreements and 
                        conditions'';
                          (ii) by striking ``The Committee'' and 
                        inserting the following:
                          ``(i) In general.--The Committee'';
                          (iii) by adding at the end the following:
                          ``(ii) Abandonment of transactions.--If a 
                        party to a covered transaction has voluntarily 
                        chosen to abandon the transaction, the 
                        Committee or lead agency, as the case may be, 
                        may negotiate, enter into or impose, and 
                        enforce any agreement or condition with any 
                        party to the covered transaction for purposes 
                        of effectuating such abandonment and mitigating 
                        any threat to the national security of the 
                        United States that arises as a result of the 
                        covered transaction.
                          ``(iii) Agreements and conditions relating to 
                        completed transactions.--The Committee or lead 
                        agency, as the case may be, may negotiate, 
                        enter into or impose, and enforce any agreement 
                        or condition with any party to a completed 
                        covered transaction in order to mitigate any 
                        interim threat to the national security of the 
                        United States that may arise as a result of the 
                        covered transaction until such time that the 
                        Committee has completed action pursuant to 
                        subsection (b) or the President has taken 
                        action pursuant to subsection (d) with respect 
                        to the transaction.'';
                  (B) by amending subparagraph (B) to read as follows:
                  ``(B) Treatment of outdated agreements or 
                conditions.--The chairperson and the head of any 
                applicable lead agency shall periodically review the 
                appropriateness of an agreement or condition described 
                under subparagraph (A) and terminate, phase out, or 
                otherwise amend any agreement or condition if a threat 
                no longer requires mitigation through the agreement or 
                condition.''; and
                  (C) by adding at the end the following:
                  ``(C) Limitations.--An agreement may not be entered 
                into or condition imposed under subparagraph (A) with 
                respect to a covered transaction unless the Committee 
                determines that the agreement or condition resolves the 
                national security concerns posed by the transaction, 
                taking into consideration whether the agreement or 
                condition is reasonably calculated to--
                          ``(i) be effective;
                          ``(ii) allow for compliance with the terms of 
                        the agreement or condition in an appropriately 
                        verifiable way; and
                          ``(iii) enable effective monitoring of 
                        compliance with and enforcement of the terms of 
                        the agreement or condition.
                  ``(D) Jurisdiction.--The provisions of section 706(b) 
                shall apply to any mitigation agreement entered into or 
                condition imposed under subparagraph (A).''; and
          (2) by adding at the end the following:
          ``(4) Referral to president.--The Committee may, at any time 
        during the review or investigation of a covered transaction 
        under subsection (b), complete the action of the Committee with 
        respect to the transaction and refer the transaction to the 
        President for action pursuant to subsection (d).
          ``(5) Risk-based analysis required.--
                  ``(A) In general.--Any determination of the Committee 
                to refer a covered transaction to the President under 
                paragraph (4), to suspend a covered transaction under 
                paragraph (6), or to negotiate, enter into, impose, or 
                enforce any agreement or condition under paragraph 
                (1)(A) with respect to a covered transaction, shall be 
                based on a risk-based analysis, conducted by the 
                Committee, of the effects on the national security of 
                the United States of the covered transaction, which 
                shall include--
                          ``(i) an assessment of the threat, 
                        vulnerabilities, and consequences to national 
                        security resulting from the transaction, as 
                        these terms are defined or clarified in 
                        guidance and regulations issued by the 
                        Committee; and
                          ``(ii) an identification of each relevant 
                        factor described in subsection (f) that the 
                        transaction may substantially implicate.
                  ``(B) Compliance plans.--
                          ``(i) In general.--In the case of a covered 
                        transaction with respect to which an agreement 
                        or condition is entered into under paragraph 
                        (1)(A), the Committee or lead agency, as the 
                        case may be, shall formulate, adhere to, and 
                        keep updated a plan for monitoring compliance 
                        with the agreement or condition.
                          ``(ii) Elements.--Each plan required by 
                        clause (i) with respect to an agreement or 
                        condition entered into under paragraph (1)(A) 
                        shall include an explanation of--
                                  ``(I) which member of the Committee 
                                will have primary responsibility for 
                                monitoring compliance with the 
                                agreement or condition;
                                  ``(II) how compliance with the 
                                agreement or condition will be 
                                monitored;
                                  ``(III) how frequently compliance 
                                reviews will be conducted;
                                  ``(IV) whether an independent entity 
                                will be utilized under subparagraph (D) 
                                to conduct compliance reviews; and
                                  ``(V) what actions will be taken if 
                                the parties fail to cooperate regarding 
                                monitoring compliance with the 
                                agreement or condition.
                  ``(C) Effect of lack of compliance.--If, at any time 
                after a mitigation agreement or condition is entered 
                into or imposed under paragraph (1)(A), the Committee 
                or lead agency, as the case may be, determines that a 
                party or parties to the agreement or condition are not 
                in compliance with the terms of the agreement or 
                condition, the Committee or lead agency may, in 
                addition to the authority of the Committee to impose 
                penalties pursuant to subsection (h)(3)(A) and to 
                unilaterally initiate a review of any covered 
                transaction under subsection (b)(1)(D)(iii)(I)--
                          ``(i) negotiate a plan of action for the 
                        party or parties to remediate the lack of 
                        compliance, with failure to abide by the plan 
                        or otherwise remediate the lack of compliance 
                        serving as the basis for the Committee to find 
                        a material breach of the agreement or 
                        condition;
                          ``(ii) require that the party or parties 
                        submit any covered transaction initiated after 
                        the date of the determination of noncompliance 
                        and before the date that is 5 years after the 
                        date of the determination to the Committee for 
                        review under subsection (b); or
                          ``(iii) seek injunctive relief.
                  ``(D) Use of independent entities to monitor 
                compliance.--If the parties to an agreement or 
                condition entered into under paragraph (1)(A) enter 
                into a contract with an independent entity from outside 
                the United States Government for the purpose of 
                monitoring compliance with the agreement or condition, 
                the Committee shall take such action as is necessary to 
                prevent any significant conflict of interest from 
                arising with respect to the entity and the parties to 
                the transaction.
                  ``(E) Successors and assigns.--Any agreement or 
                condition entered or imposed under paragraph (1)(A) 
                shall be considered binding on all successors and 
                assigns, unless and until the agreement or condition 
                terminates on its own terms or is otherwise terminated 
                by the Committee in the Committee's sole discretion.
                  ``(F) Additional compliance measures.--Subject to 
                subparagraphs (A) through (D), the Committee shall 
                develop and agree upon methods for evaluating 
                compliance with any agreement entered into or condition 
                imposed with respect to a covered transaction that will 
                allow the Committee to adequately ensure compliance 
                without unnecessarily diverting Committee resources 
                from assessing any new covered transaction for which a 
                written notice under clause (i) of subsection (b)(1)(C) 
                has been filed or for which a declaration has been 
                submitted under clause (v) of subsection (b)(1)(C), and 
                if necessary, reaching a mitigation agreement with or 
                imposing a condition on a party to such covered 
                transaction or any covered transaction for which a 
                review has been reopened for any reason.
          ``(6) Suspension of transactions.--The Committee, acting 
        through the chairperson, may suspend a proposed or pending 
        covered transaction that may pose a risk to the national 
        security of the United States for such time as the covered 
        transaction is under review or investigation under subsection 
        (b).''.

SEC. 310. CERTIFICATION OF NOTICES AND INFORMATION.

  Section 721(n) of the Defense Production Act of 1950 (50 U.S.C. 
4565(n)) is amended--
          (1) by redesignating paragraphs (1) and (2) as subparagraphs 
        (A) and (B), respectively, and by moving such subparagraphs, as 
        so redesignated, 2 ems to the right;
          (2) by striking ``Each notice'' and inserting the following:
          ``(1) In general.--Each notice''; and
          (3) by adding at the end the following:
          ``(2) Effect of failure to submit.--The Committee may not 
        complete a review under this section of a covered transaction 
        and may recommend to the President that the President suspend 
        or prohibit the transaction or require divestment under 
        subsection (d) if the Committee determines that a party to the 
        transaction has--
                  ``(A) failed to submit a statement required by 
                paragraph (1); or
                  ``(B) included false or misleading information in a 
                notice or information described in paragraph (1) or 
                omitted material information from such notice or 
                information.
          ``(3) Applicability of law on fraud and false statements.--
        The Committee shall prescribe regulations expressly providing 
        for the application of section 1001 of title 18, United States 
        Code, to all information provided to the Committee under this 
        section by any party to a covered transaction.''.

SEC. 311. ADDITIONAL REGULATIONS.

  Section 721(h)(3) of the Defense Production Act of 1950 (50 U.S.C. 
4565(h)(3)) is amended--
          (1) in subparagraph (B)(ii), by striking ``and'' at the end;
          (2) in subparagraph (C), by striking the period at the end 
        and inserting ``; and''; and
          (3) by adding at the end the following:
                  ``(D) provide that in connection with any national 
                security review or investigation of a covered 
                transaction conducted by the Committee, the Committee 
                should--
                          ``(i) consider the factors described in 
                        paragraphs (2) and (3) of subsection (f); and
                          ``(ii) as appropriate, require parties to 
                        provide the information necessary to consider 
                        such factors.''.

                TITLE IV--MODIFICATION OF ANNUAL REPORT

SEC. 401. MODIFICATION OF ANNUAL REPORT.

  Section 721(m) of the Defense Production Act of 1950 (50 U.S.C. 
4565(m)) is amended--
          (1) in paragraph (2), by amending subparagraph (A) to read as 
        follows:
                  ``(A) A list of all notices filed and all reviews or 
                investigations of covered transactions completed during 
                the period, with--
                          ``(i) a description of the outcome of each 
                        review or investigation, including whether an 
                        agreement was entered into or condition was 
                        imposed under subsection (l)(3)(A) with respect 
                        to the transaction being reviewed or 
                        investigated, and whether the President took 
                        any action under this section with respect to 
                        that transaction;
                          ``(ii) the nature of the business activities 
                        or products of the United States business with 
                        which the transaction was entered into or 
                        intended to be entered into; and
                          ``(iii) information about any withdrawal from 
                        the process.'';
          (2) in paragraph (3)--
                  (A) by striking ``critical technologies'' and all 
                that follows through ``In order to assist'' and 
                inserting ``critical technologies.--In order to 
                assist'';
                  (B) by striking subparagraph (B); and
                  (C) by redesignating clauses (i) and (ii) as 
                subparagraphs (A) and (B), respectively, and by moving 
                such subparagraphs, as so redesignated, 2 ems to the 
                left; and
          (3) by adding at the end the following:
          ``(4) Additional contents of report.--Each annual report 
        required under paragraph (1) shall contain the following 
        additional information:
                  ``(A) Statistics on compliance reviews conducted and 
                actions taken by the Committee under subsection (l)(6), 
                including subparagraph (D) of that subsection (l)(6), 
                during that period and a description of any actions 
                taken by the Committee to impose penalties or initiate 
                a unilateral review pursuant to subsection 
                (b)(1)(D)(iii)(I).
                  ``(B) Cumulative and trend information on the number 
                of declarations filed under subsection (b)(1)(C)(v), 
                the actions taken by the Committee in response to 
                declarations, the business sectors involved in the 
                declarations which have been made, and the countries 
                involved in such declarations.
                  ``(C) The number of new hires made since the 
                preceding report through the authorities described 
                under subsection (q), along with summary statistics, 
                position titles, and associated pay grades for such 
                hires and a summary of such hires' responsibilities in 
                administering this section.
          ``(5) Classification; availability of report.--
                  ``(A) Classification.--All appropriate portions of 
                the annual report required by paragraph (1) may be 
                classified.
                  ``(B) Public availability of unclassified version.--
                An unclassified version of the report required by 
                paragraph (1), as appropriate and consistent with 
                safeguarding national security and privacy, shall be 
                made available to the public. Information regarding 
                trade secrets or business confidential information may 
                be included in the classified version and may not be 
                made available to the public in the unclassified 
                version.
                  ``(C) Exceptions to freedom of information act.--The 
                exceptions to subsection (a) of section 552 of title 5, 
                United States Code, provided for under subsection (b) 
                of that section shall apply with respect to the report 
                required by paragraph (1).''.

SEC. 402. REPORT ON TRANSACTIONS WITH CENSORSHIP IMPLICATIONS.

  Not later than one year from the date of enactment of this Act, the 
Committee on Foreign Investment in the United States shall issue a 
report to the Congress, appropriate portions of which may be 
classified, on investments by foreign persons into the entertainment 
and information sectors of the United States, which shall include 
analysis of the extent to which such investments have resulted in or 
could result in direct or indirect censorship, including self-
censorship, within the United States.

       TITLE V--RESOURCES, SPECIAL HIRING AUTHORITY, AND OUTREACH

SEC. 501. CENTRALIZATION OF CERTAIN COMMITTEE FUNCTIONS.

  Section 721 of the Defense Production Act of 1950 (50 U.S.C. 4565) is 
amended by adding at the end the following:
  ``(o) Centralization of Certain Committee Functions.--
          ``(1) In general.--The chairperson, in consultation with the 
        Committee, may centralize certain functions of the Committee 
        within the Department of the Treasury for the purpose of 
        enhancing interagency coordination and collaboration in 
        carrying out the functions of the Committee under this section.
          ``(2) Rule of construction.--Nothing in this subsection shall 
        be construed as limiting the authority of any department or 
        agency represented on the Committee to represent its own 
        interests before the Committee.''.

SEC. 502. CFIUS RESOURCE NEEDS.

  (a) Unified Budget Request.--Section 721 of the Defense Production 
Act of 1950 (50 U.S.C. 4565), as amended by section 501, is further 
amended by adding at the end the following:
  ``(p) Unified Budget Request; Annual Spending Plan.--
          ``(1) Unified budget request.--
                  ``(A) In general.--The President may include, in the 
                budget of the Department of the Treasury for a fiscal 
                year (as submitted to Congress with the budget of the 
                President under section 1105(a) of title 31, United 
                States Code), a unified request for funding of all 
                operations under this section conducted by all of the 
                departments and agencies represented on the Committee.
                  ``(B) Form of budget request.--A unified request 
                under subparagraph (A) shall be detailed and include 
                the amounts and staffing levels requested for each 
                department or agency represented on the Committee to 
                carry out the functions of that department or agency 
                under this section.
          ``(2) Annual spending plan.--Not later than 90 days following 
        the date of enactment of this subsection, and annually 
        thereafter, the chairperson of the Committee shall transmit to 
        the Committees on Appropriations and Financial Services of the 
        House of Representatives and the Committees on Appropriations 
        and Banking, Housing, and Urban Affairs of the Senate a 
        detailed spending plan to expeditiously meet the requirements 
        of subsections (b), (l), and (m), including estimated 
        expenditures and staffing levels required by operations of the 
        Committee for not less than the following fiscal year at each 
        of the Committee's member agencies.
          ``(3) Waiver.--The chairperson may waive the reporting 
        requirement under paragraph (2) with respect to a fiscal year 
        for which a unified budget request described under paragraph 
        (1) has been submitted.''.
  (b) Special Hiring Authority.--Section 721 of the Defense Production 
Act of 1950 (50 U.S.C. 4565), as amended by subsection (a), is further 
amended by adding at the end the following:
  ``(q) Special Hiring Authority.--The heads of the departments and 
agencies represented on the Committee may appoint, without regard to 
the provisions of sections 3309 through 3318 of title 5, United States 
Code, candidates directly to positions in the competitive service (as 
defined in section 2102 of that title) in their respective departments 
and agencies to administer this section.''.
  (c) Testimony Required.--Section 721 of the Defense Production Act of 
1950 (50 U.S.C. 4565), as amended by subsection (d), is further amended 
by adding at the end the following:
  ``(r) Testimony.--
          ``(1) In general.--After submitting the unified budget 
        request described under subsection (p)(1), or the spending plan 
        described under subsection (p)(2), as the case may be, but not 
        later than March 31 of each year, the chairperson, or the 
        chairperson's designee, shall appear before the Committee on 
        Financial Services of the House of Representatives and present 
        testimony on--
                  ``(A) anticipated resources necessary for operations 
                of the Committee in the following fiscal year at each 
                of the Committee's member agencies;
                  ``(B) the adequacy of appropriations for the 
                Committee in the current and the previous fiscal year 
                to--
                          ``(i) ensure that thorough reviews and 
                        investigations are completed as expeditiously 
                        as possible;
                          ``(ii) monitor and enforce mitigation 
                        agreements; and
                          ``(iii) identify covered transactions for 
                        which a notice under clause (i) of subsection 
                        (b)(1)(C) or a declaration under clause (v) of 
                        subsection (b)(1)(C) was not submitted to the 
                        Committee; and
                  ``(C) management efforts to strengthen the ability of 
                the Committee to meet the requirements of this section.
          ``(2) Sunset.--This subsection shall have no force or effect 
        on the date that is five years following the date of enactment 
        of the Foreign Investment Risk Review Modernization Act of 
        2018.''.

SEC. 503. FUNDING.

  Section 721 of the Defense Production Act of 1950 (50 U.S.C. 4565), 
as amended by section 602, is further amended by adding at the end the 
following:
  ``(t) Funding.--
          ``(1) Establishment of fund.--There is established in the 
        Treasury of the United States a fund, to be known as the 
        `Committee on Foreign Investment in the United States Fund' (in 
        this subsection referred to as the `Fund'), to be administered 
        by the chairperson.
          ``(2) Authorization of appropriations for the committee.--
        There are authorized to be appropriated to the Fund such sums 
        as may be necessary to perform the functions of the Committee.
          ``(3) Filing fees.--
                  ``(A) In general.--The Committee may assess and 
                collect a fee in an amount determined by the Committee 
                in regulations, without regard to section 9701 of title 
                31, United States Code, and subject to subparagraph 
                (B), with respect to each covered transaction for which 
                a written notice is submitted to the Committee under 
                subsection (b)(1)(C)(i) or a declaration is submitted 
                to the Committee under subsection (b)(1)(C)(v).
                  ``(B) Determination of amount of fee.--
                          ``(i) In general.--The amount of the fee to 
                        be assessed under subparagraph (A) with respect 
                        to a covered transaction--
                                  ``(I) may not exceed an amount equal 
                                to the lesser of--
                                          ``(aa) 1 percent of the value 
                                        of the transaction; or
                                          ``(bb) $300,000, as such 
                                        amount is adjusted annually for 
                                        inflation pursuant to 
                                        regulations prescribed by the 
                                        Committee; and
                                  ``(II) shall be determined by the 
                                Committee after taking into 
                                consideration--
                                          ``(aa) the effect of the fee 
                                        on small business concerns (as 
                                        defined in section 3 of the 
                                        Small Business Act (15 U.S.C. 
                                        632));
                                          ``(bb) the expenses of the 
                                        Committee associated with 
                                        conducting activities under 
                                        this section;
                                          ``(cc) the effect of the fee 
                                        on foreign investment;
                                          ``(dd) the unified budget 
                                        request or annual spending 
                                        plan, as appropriate, described 
                                        in section 502 of the Foreign 
                                        Investment Risk Review 
                                        Modernization Act of 2018; and
                                          ``(ee) such other matters as 
                                        the Committee considers 
                                        appropriate.
                          ``(ii) Updates.--The Committee shall 
                        periodically reconsider and adjust the amount 
                        of the fee to be assessed under subparagraph 
                        (A) with respect to a covered transaction to 
                        ensure that the amount of the fee remains 
                        appropriate.
                  ``(C) Deposit and availability of fees.--
                Notwithstanding section 3302 of title 31, United States 
                Code, fees collected under subparagraph (A) shall--
                          ``(i) be deposited into the Fund for use in 
                        carrying out activities under this section;
                          ``(ii) to the extent and in the amounts 
                        provided in advance in appropriations Acts, be 
                        available to the chairperson;
                          ``(iii) remain available until expended; and
                          ``(iv) be in addition to any appropriations 
                        made available to the members of the Committee.
          ``(4) Transfer of funds.--To the extent provided in advance 
        in appropriations Acts, the chairperson may transfer any 
        amounts in the Fund to any other department or agency 
        represented on the Committee for the purpose of addressing 
        emerging needs in carrying out activities under this section. 
        Amounts so transferred shall be in addition to any other 
        amounts available to that department or agency for that 
        purpose.''.

SEC. 504. CFIUS OUTREACH.

  Not later than 180 days after the date of enactment of this Act, and 
every year thereafter for five years, the chairperson of the Committee 
on Foreign Investment in the United States (``CFIUS''), or the 
chairperson's designee, shall brief the Committee on Financial Services 
of the House of Representatives and the Committee on Banking, Housing, 
and Urban Affairs of the Senate on activities of CFIUS undertaken in 
order to--
          (1) educate the business community, with a particular focus 
        on the technology sector and other sectors of importance to 
        national security, on the goals and operations of CFIUS; and
          (2) disseminate to the governments of United States allies 
        best practices of CFIUS that--
                  (A) strengthen national security reviews of relevant 
                investment transactions;
                  (B) expedite such reviews when appropriate; and
                  (C) promote openness to foreign investment, 
                consistent with national security considerations.

               TITLE VI--MISCELLANEOUS FIRRMA PROVISIONS

SEC. 601. CONFORMING AMENDMENT.

  Section 721(d)(4)(A) of the Defense Production Act of 1950 (50 U.S.C. 
4565(d)(4)(A)) is amended by striking ``the foreign interest exercising 
control'' and inserting ``a foreign person that would acquire an 
interest in a United States business or its assets as a result of the 
covered transaction''.

SEC. 602. REGULATORY CERTAINTY FOR UNITED STATES BUSINESSES.

  Section 721 of the Defense Production Act of 1950 (50 U.S.C. 4565), 
as amended by section 502, is further amended by adding at the end the 
following:
  ``(s) Regulatory Certainty for United States Businesses.--With 
respect to mitigating a national security risk that results from a 
foreign person's investment in, or joint venture with, a United States 
business, a member agency of the Committee may not prescribe or 
implement regulations to require divestment by, or of, the United 
States business, unless--
          ``(1) the regulations are prescribed under this section or 
        pursuant to authorities of the President under the 
        International Emergency Economic Powers Act; or
          ``(2) the President reports to Congress in writing that the 
        regulations--
                  ``(A) are, wherever applicable, consistent with 
                regulations prescribed under this section, including 
                any such regulations pertaining to--
                          ``(i) foreign control or influence over a 
                        United States business;
                          ``(ii) the identification of emerging, 
                        foundational, or other critical technologies; 
                        and
                          ``(iii) confidentiality requirements with 
                        respect to information and documentary material 
                        regarding United States businesses; and
                  ``(B) in the case of regulations prescribed or 
                finalized following the effective date of this 
                subsection, were prescribed in consultation with the 
                chairperson of the Committee and with the head of any 
                member agency determined by the President to be 
                affected by the regulations.''.

          TITLE VII--COMMON SENSE CREDIT UNION CAPITAL RELIEF

SEC. 701. DELAY IN EFFECTIVE DATE.

  Notwithstanding any effective date set forth in the rule issued by 
the National Credit Union Administration titled ``Risk-Based Capital'' 
(published at 80 Fed. Reg. 66626 (October 29, 2015)), such final rule 
shall take effect on January 1, 2021.

                   TITLE VIII--EXPORT CONTROL REFORM

SEC. 801. SHORT TITLE.

  This title may be cited as the ``Export Control Reform Act of 2018''.

SEC. 802. DEFINITIONS.

  In this title:
          (1) Controlled.--The term ``controlled'' means the export, 
        reexport, or transfer of an item subject to the jurisdiction of 
        the United States under subtitle A.
          (2) Dual-use.--The term ``dual-use'', with respect to an 
        item, means the item has civilian applications and military, 
        terrorism, weapons of mass destruction, or law-enforcement-
        related applications.
          (3) Export.--The term ``export'', with respect to an item 
        subject to controls under subtitle A, includes--
                  (A) the shipment or transmission of the item out of 
                the United States, including the sending or taking of 
                the item out of the United States, in any manner; and
                  (B) the release or transfer of technology or source 
                code relating to the item to a foreign person in the 
                United States.
          (4) Export administration regulations.--The term ``Export 
        Administration Regulations'' means--
                  (A) the Export Administration Regulations as 
                promulgated, maintained, and amended under the 
                authority of the International Emergency Economic 
                Powers Act and codified, as of the date of the 
                enactment of this Act, in subchapter C of chapter VII 
                of title 15, Code of Federal Regulations; or
                  (B) regulations that are promulgated, maintained, and 
                amended under the authority of subtitle A on or after 
                the date of the enactment of this Act.
          (5) Foreign person.--The term ``foreign person'' means a 
        person that is not a United States person.
          (6) Item.--The term ``item'' means a commodity, software, or 
        technology.
          (7) Person.--The term ``person'' means--
                  (A) a natural person;
                  (B) a corporation, business association, partnership, 
                society, trust, financial institution, insurer, 
                underwriter, guarantor, and any other business 
                organization, any other nongovernmental entity, 
                organization, or group, or any government or agency 
                thereof; and
                  (C) any successor to any entity described in 
                subparagraph (B).
          (8) Reexport.--The term ``reexport'', with respect to an item 
        subject to controls under subtitle A, includes--
                  (A) the shipment or transmission of the item from a 
                foreign country to another foreign country, including 
                the sending or taking of the item from the foreign 
                country to the other foreign country, in any manner; 
                and
                  (B) the release or transfer of technology or source 
                code relating to the item to a foreign person outside 
                the United States.
          (9) Secretary.--Except as otherwise provided, the term 
        ``Secretary'' means the Secretary of Commerce.
          (10) Technology.--The term ``technology'' includes 
        foundational information and information and know-how necessary 
        for the development (at all stages prior to serial production), 
        production, use, operation, installation, maintenance, repair, 
        overhaul or refurbishing of an item.
          (11) Transfer.--The term ``transfer'', with respect to an 
        item subject to controls under title I, means a change in the 
        end-use or end user of the item within the same foreign 
        country.
          (12) United states.--The term ``United States'' means the 
        several States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Commonwealth of the Northern Mariana Islands, 
        American Samoa, Guam, the United States Virgin Islands, and any 
        other territory or possession of the United States.
          (13) United states person.--The term ``United States person'' 
        means--
                  (A) for purposes of subtitles A and C--
                          (i) any individual who is a citizen or 
                        national of the United States or who is an 
                        individual described in subparagraph (B) of 
                        section 274B(a)(3) of the Immigration and 
                        Nationality Act (8 U.S.C. 1324b(a)(3));
                          (ii) a corporation or other legal entity 
                        which is organized under the laws of the United 
                        States, any State or territory thereof, or the 
                        District of Columbia; and
                          (iii) any person in the United States; and
                  (B) for purposes of subtitle B, any United States 
                resident or national (other than an individual resident 
                outside the United States and employed by other than a 
                United States person), any domestic concern (including 
                any permanent domestic establishment of any foreign 
                concern) and any foreign subsidiary or affiliate 
                (including any permanent foreign establishment) of any 
                domestic concern which is controlled in fact by such 
                domestic concern, as determined under regulations by 
                the Secretary.
          (14) Weapons of mass destruction.--The term ``weapons of mass 
        destruction'' means nuclear, radiological, chemical, and 
        biological weapons and delivery systems for such weapons.

          Subtitle A--Authority and Administration of Controls

SEC. 811. SHORT TITLE.

  This subtitle may be cited as the ``Export Controls Act of 2018''.

SEC. 812. STATEMENT OF POLICY.

  The following is the policy of the United States:
          (1) The national security and foreign policy of the United 
        States require that the export, reexport, and transfer of 
        items, and specific activities of United States persons, 
        wherever located, be controlled for the following purposes:
                  (A) To control the release of items for use in--
                          (i) the proliferation of weapons of mass 
                        destruction or of conventional weapons;
                          (ii) the acquisition of destabilizing numbers 
                        or types of conventional weapons;
                          (iii) acts of terrorism;
                          (iv) military programs that could pose a 
                        threat to the security of the United States or 
                        its allies; or
                          (v) activities undertaken specifically to 
                        cause significant interference with or 
                        disruption of critical infrastructure.
                  (B) To preserve the qualitative military superiority 
                of the United States.
                  (C) To strengthen the United States industrial base.
                  (D) To carry out the foreign policy of the United 
                States, including the protection of human rights and 
                the promotion of democracy.
                  (E) To carry out obligations and commitments under 
                international agreements and arrangements, including 
                multilateral export control regimes.
                  (F) To facilitate military interoperability between 
                the United States and its North Atlantic Treaty 
                Organization (NATO) and other close allies.
                  (G) To ensure national security controls are tailored 
                to focus on those core technologies and other items 
                that are capable of being used to pose a serious 
                national security threat to the United States.
          (2) The national security of the United States requires that 
        the United States maintain its leadership in the science, 
        technology, engineering, and manufacturing sectors, including 
        foundational technology that is essential to innovation. Such 
        leadership requires that United States persons are competitive 
        in global markets. The impact of the implementation of this 
        subtitle on such leadership and competitiveness must be 
        evaluated on an ongoing basis and applied in imposing controls 
        under sections 813 and 814 to avoid negatively affecting such 
        leadership.
          (3) The national security and foreign policy of the United 
        States require that the United States participate in 
        multilateral organizations and agreements regarding export 
        controls on items that are consistent with the policy of the 
        United States, and take all the necessary steps to secure the 
        adoption and consistent enforcement, by the governments of such 
        countries, of export controls on items that are consistent with 
        such policy.
          (4) Export controls should be fully coordinated with the 
        multilateral export control regimes. Export controls that are 
        multilateral are most effective, and should be tailored to 
        focus on those core technologies and other items that are 
        capable of being used to pose a serious national security 
        threat to the United States and its allies.
          (5) Export controls applied unilaterally to items widely 
        available from foreign sources generally are less effective in 
        preventing end-users from acquiring those items.
          (6) The effective administration of export controls requires 
        a clear understanding both inside and outside the United States 
        Government of which technologies and other items are controlled 
        and an efficient process should be created to update the 
        controls, such as by removing and adding technologies and other 
        items.
          (7) The export control system must ensure that it is 
        transparent, predictable, and timely, has the flexibility to be 
        adapted to address new threats in the future, and allows 
        seamless access to and sharing of export control information 
        among all relevant United States national security and foreign 
        policy agencies.
          (8) Implementation and enforcement of United States export 
        controls require robust capabilities in monitoring, 
        intelligence, and investigation, appropriate penalties for 
        violations, and the ability to swiftly interdict unapproved 
        transfers.
          (9) Export controls should be balanced with United States 
        counterterrorism, information security, and cyber-security 
        policies to ensure the ability to export, reexport, and 
        transfer technology and other items in support of 
        counterterrorism, critical infrastructure, and other homeland 
        security priorities, while effectively preventing malicious 
        cyber terrorists from obtaining items that threaten the United 
        States and its interests, including the protection of and 
        safety of United States citizens abroad.
          (10) Export controls complement and are a critical element of 
        the national security policies underlying the laws and 
        regulations governing foreign direct investment in the United 
        States, including controlling the transfer of critical 
        technologies to certain foreign persons. Thus, the President, 
        in close coordination with the Department of Commerce, the 
        Department of Defense, the Department of State, the Department 
        of Energy, and other agencies responsible for export controls, 
        should have a regular and robust process to identify the 
        emerging and other types of critical technologies of concern 
        and regulate their release to foreign persons as warranted 
        regardless of the nature of the underlying transaction. Such 
        identification efforts should draw upon the resources and 
        expertise of all relevant parts of the United States 
        Government, industry, and academia. These efforts should be in 
        addition to traditional efforts to modernize and update the 
        lists of controlled items under the multilateral export control 
        regimes.
          (11) The authority under this subtitle may be exercised only 
        in furtherance of all of the objectives set forth in paragraphs 
        (1) through (10).

SEC. 813. AUTHORITY OF THE PRESIDENT.

  (a) Authority.--In order to carry out the policy set forth in 
paragraphs (1) through (10) of section 812, the President shall 
control--
          (1) the export, reexport, and transfer of items subject to 
        the jurisdiction of the United States, whether by United States 
        persons or by foreign persons; and
          (2) the activities of United States persons, wherever 
        located, relating to specific--
                  (A) nuclear explosive devices;
                  (B) missiles;
                  (C) chemical or biological weapons;
                  (D) whole plants for chemical weapons precursors;
                  (E) foreign maritime nuclear projects; and
                  (F) foreign military intelligence services.
  (b) Requirements.--In exercising authority under this subtitle, the 
President shall impose controls to achieve the following objectives:
          (1) To regulate the export, reexport, and transfer of items 
        described in subsection (a)(1) of United States persons or 
        foreign persons.
          (2) To regulate the activities described in subsection (a)(2) 
        of United States persons, wherever located.
          (3) To secure the cooperation of other governments and 
        multilateral organizations to impose control systems that are 
        consistent, to the extent possible, with the controls imposed 
        under subsection (a).
          (4) To maintain the leadership of the United States in 
        science, engineering, technology research and development, 
        manufacturing, and foundational technology that is essential to 
        innovation.
          (5) To protect United States technological advances by 
        prohibiting unauthorized technology transfers to foreign 
        persons in the United States or outside the United States, 
        particularly with respect to countries that may pose a 
        significant threat to the national security of the United 
        States.
          (6) To enhance the viability of commercial firms, academic 
        institutions, and research establishments, and maintain the 
        skilled workforce of such firms, institutions, and 
        establishments, that are necessary to preserving the leadership 
        of the United States described in paragraph (4).
          (7) To strengthen the United States industrial base, both 
        with respect to current and future defense requirements.
          (8) To enforce the controls through means such as 
        regulations, requirements for compliance, lists of controlled 
        items, lists of foreign persons who threaten the national 
        security or foreign policy of the United States, and guidance 
        in a form that facilitates compliance by United States persons 
        and foreign persons, in particular academic institutions, 
        scientific and research establishments, and small- and medium-
        sized businesses.
  (c) Application of Controls.--The President shall impose controls 
over the export, reexport, or transfer of items for purposes of the 
objectives described in subsections (b)(1) or (b)(2) without regard to 
the nature of the underlying transaction or any circumstances 
pertaining to the activity, including whether such export, reexport, or 
transfer occurs pursuant to a purchase order or other contract 
requirement, voluntary decision, inter-company arrangement, marketing 
effort, or during a joint venture, joint development agreement, or 
similar collaborative agreement.

SEC. 814. ADDITIONAL AUTHORITIES.

  (a) In General.--In carrying out this subtitle, the President shall--
          (1) establish and maintain lists published by the Secretary 
        of items that are controlled under this subtitle;
          (2) establish and maintain lists published by the Secretary 
        of foreign persons and end-uses that are determined to be a 
        threat to the national security and foreign policy of the 
        United States pursuant to the policy set forth in section 
        812(1)(A);
          (3) prohibit unauthorized exports, reexports, and transfers 
        of controlled items, including to foreign persons in the United 
        States or outside the United States;
          (4) restrict exports, reexports, and transfers of any 
        controlled items to any foreign person or end-use listed under 
        paragraph (2);
          (5) require licenses or other authorizations, as appropriate, 
        for exports, reexports, and transfers of controlled items, 
        including imposing conditions or restrictions on United States 
        persons and foreign persons with respect to such licenses or 
        other authorizations;
          (6) establish a process by which a license applicant may 
        request an assessment to determine whether a foreign item is 
        comparable in quality to an item controlled under this 
        subtitle, and is available in sufficient quantities to render 
        the United States export control of that item or the denial of 
        a license ineffective, including a mechanism to address that 
        disparity;
          (7) require measures for compliance with the export controls 
        established under this subtitle;
          (8) require and obtain such information from United States 
        persons and foreign persons as is necessary to carry out this 
        subtitle;
          (9) require, as appropriate, advance notice before an item is 
        exported, reexported, or transferred, as an alternative to 
        requiring a license;
          (10) require, to the extent feasible, identification of items 
        subject to controls under this subtitle in order to facilitate 
        the enforcement of such controls;
          (11) inspect, search, detain, seize, or impose temporary 
        denial orders with respect to items, in any form, that are 
        subject to controls under this subtitle, or conveyances on 
        which it is believed that there are items that have been, are 
        being, or are about to be exported, reexported, or transferred 
        in violation of this subtitle;
          (12) monitor shipments, or other means of transfer;
          (13) keep the public fully apprised of changes in policy, 
        regulations, and procedures established under this subtitle;
          (14) appoint technical advisory committees in accordance with 
        the Federal Advisory Committee Act;
          (15) create, as warranted, exceptions to licensing 
        requirements in order to further the objectives of this 
        subtitle;
          (16) establish and maintain processes to inform persons, 
        either individually by specific notice or through amendment to 
        any regulation or order issued under this subtitle, that a 
        license from the Bureau of Industry and Security of the 
        Department of Commerce is required to export; and
          (17) undertake any other action as is necessary to carry out 
        this subtitle that is not otherwise prohibited by law.
  (b) Relationship to IEEPA.--The authority under this subtitle may not 
be used to regulate or prohibit under this subtitle the export, 
reexport, or transfer of any item that may not be regulated or 
prohibited under section 203(b) of the International Emergency Economic 
Powers Act (50 U.S.C. 1702(b)), except to the extent the President has 
made a determination necessary to impose controls under subparagraph 
(A), (B), or (C) of paragraph (2) of such section.
  (c) Countries Supporting International Terrorism.--
          (1) License requirement.--
                  (A) In general.--A license shall be required for the 
                export, reexport, or transfer of items to a country if 
                the Secretary of State has made the following 
                determinations:
                          (i) The government of such country has 
                        repeatedly provided support for acts of 
                        international terrorism.
                          (ii) The export, reexport, or transfer of 
                        such items could make a significant 
                        contribution to the military potential of such 
                        country, including its military logistics 
                        capability, or could enhance the ability of 
                        such country to support acts of international 
                        terrorism.
                  (B) Determination under other provisions of law.--A 
                determination of the Secretary of State under section 
                620A of the Foreign Assistance Act of 1961 (22 U.S.C. 
                2371), section 40 of the Arms Export Control Act (22 
                U.S.C. 2780), or any other provision of law that the 
                government of a country described in subparagraph (A) 
                has repeatedly provided support for acts of 
                international terrorism shall be deemed to be a 
                determination with respect to such government for 
                purposes of clause (i) of subparagraph (A).
          (2) Notification to congress.--The Secretary of State or the 
        Secretary of Commerce shall notify the Committee on Foreign 
        Affairs of the House of Representatives and the Committee on 
        Banking, Housing, and Urban Affairs and the Committee on 
        Foreign Relations of the Senate at least 30 days before issuing 
        any license required by paragraph (1).
          (3) Publication in federal register.--Each determination of 
        the Secretary of State under paragraph (1)(A) shall be 
        published in the Federal Register, except that the Secretary of 
        State may exclude confidential information and trade secrets 
        contained in such determination.
          (4) Rescission of determination.--A determination of the 
        Secretary of State under paragraph (1)(A) may not be rescinded 
        unless the President submits to the Speaker of the House of 
        Representatives, the chairman of the Committee on Foreign 
        Affairs, and the chairman of the Committee on Banking, Housing, 
        and Urban Affairs and the chairman of the Committee on Foreign 
        Relations of the Senate--
                  (A) before the proposed rescission would take effect, 
                a report certifying that--
                          (i) there has been a fundamental change in 
                        the leadership and policies of the government 
                        of the country concerned;
                          (ii) that government is not supporting acts 
                        of international terrorism; and
                          (iii) that government has provided assurances 
                        that it will not support acts of international 
                        terrorism in the future; or
                  (B) at least 90 days before the proposed rescission 
                would take effect, a report justifying the rescission 
                and certifying that--
                          (i) the government concerned has not provided 
                        any support for acts international terrorism 
                        during the preceding 24-month period; and
                          (ii) the government concerned has provided 
                        assurances that it will not support acts of 
                        international terrorism in the future.
          (5) Disapproval of rescission.--No rescission under paragraph 
        (4)(B) of a determination under paragraph (1)(A) with respect 
        to the government of a country may be made if Congress, within 
        90 days after receipt of a report under paragraph (4)(B), 
        enacts a joint resolution described in subsection (f)(2) of 
        section 40 of the Arms Export Control Act with respect to a 
        rescission under subsection (f)(1) of such section with respect 
        to the government of such country.
          (6) Notification and briefing.--Not later than--
                  (A) ten days after initiating a review of the 
                activities of the government of the country concerned 
                within the 24-month period referred to in paragraph 
                (4)(B)(i), the Secretary of State shall notify the 
                Committee on Foreign Affairs of the House of 
                Representatives and the Committee on Foreign Relations 
                of the Senate of such initiation; and
                  (B) 20 days after the notification described in 
                paragraph (1), the Secretary of State shall brief the 
                congressional committees described in paragraph (1) on 
                the status of such review.
          (7) Contents of notification of license.--The Secretary of 
        State shall include in the notification required by paragraph 
        (2)--
                  (A) a detailed description of the items to be 
                offered, including a brief description of the 
                capabilities of any item for which a license to export, 
                reexport, or transfer the items is sought;
                  (B) the reasons why the foreign country, person, or 
                entity to which the export, reexport, or transfer is 
                proposed to be made has requested the items under the 
                export, reexport, or transfer, and a description of the 
                manner in which such country, person, or entity intends 
                to use such items;
                  (C) the reasons why the proposed export, reexport, or 
                transfer is in the national interest of the United 
                States;
                  (D) an analysis of the impact of the proposed export, 
                reexport, or transfer on the military capabilities of 
                the foreign country, person, or entity to which such 
                transfer would be made;
                  (E) an analysis of the manner in which the proposed 
                export, reexport, or transfer would affect the relative 
                military strengths of countries in the region to which 
                the items that are the subject of such export, 
                reexport, or transfer would be delivered and whether 
                other countries in the region have comparable kinds and 
                amounts of items; and
                  (F) an analysis of the impact of the proposed export, 
                reexport, or transfer on the relations of the United 
                States with the countries in the region to which the 
                items that are the subject of such export, reexport, or 
                transfer would be delivered.
  (d) Enhanced Controls.--
          (1) In general.--In furtherance of section 813(a), the 
        President shall, except to the extent authorized by a statute 
        or regulation administered by a Federal department or agency 
        other than the Department of Commerce, require a United States 
        person, wherever located, to apply for and receive a license 
        from the Department of Commerce for--
                  (A) the export, reexport, or transfer of items 
                described in paragraph (2), including items that are 
                not subject to control under this subtitle; and
                  (B) other activities that may support the design, 
                development, production, use, operation, installation, 
                maintenance, repair, overhaul, or refurbishing of, or 
                for the performance of services relating to, any such 
                items.
          (2) Items described.--The items described in this paragraph 
        include--
                  (A) nuclear explosive devices;
                  (B) missiles;
                  (C) chemical or biological weapons;
                  (D) whole plants for chemical weapons precursors; and
                  (E) foreign maritime nuclear projects that would pose 
                a risk to the national security or foreign policy of 
                the United States.
  (e) Additional Prohibitions.--The Secretary may inform United States 
persons, either individually by specific notice or through amendment to 
any regulation or order issued under this subtitle, that a license from 
the Bureau of Industry and Security of the Department of Commerce is 
required to engage in any activity if the activity involves the types 
of movement, service, or support described in subsection (d). The 
absence of any such notification does not excuse the United States 
person from compliance with the license requirements of subsection (d), 
or any regulation or order issued under this subtitle.
  (f) License Review Standards.--The Secretary shall deny an 
application to engage in any activity described in subsection (d) if 
the activity would make a material contribution to any of the items 
described in subsection (d)(2).

SEC. 815. ADMINISTRATION OF EXPORT CONTROLS.

  (a) In General.--The President shall delegate to the Secretary of 
Commerce, the Secretary of Defense, the Secretary of State, the 
Secretary of Energy, and, as appropriate, the Director of National 
Intelligence and the heads of other appropriate Federal departments and 
agencies, the authority to carry out the purposes set forth in 
subsection (b).
  (b) Purposes.--
          (1) In general.--The purpose of the delegations of authority 
        pursuant to subsection (a) are--
                  (A) to advise the President with respect to--
                          (i) identifying specific threats to the 
                        national security and foreign policy that the 
                        authority of this subtitle may be used to 
                        address; and
                          (ii) exercising the authority under this 
                        subtitle to implement policies, regulations, 
                        procedures, and actions that are necessary to 
                        effectively counteract those threats;
                  (B) to review and approve--
                          (i) criteria for including items on, and 
                        removing such an item from, a list of 
                        controlled items established under this 
                        subtitle;
                          (ii) an interagency procedure for compiling 
                        and amending any list described in clause (i);
                          (iii) criteria for including a person on a 
                        list of persons to whom exports, reexports, and 
                        transfers of items are prohibited or restricted 
                        under this subtitle;
                          (iv) standards for compliance by persons 
                        subject to controls under this subtitle; and
                          (v) policies and procedures for the end-use 
                        monitoring of exports, reexports, and transfers 
                        of items controlled under this subtitle;
                  (C) to obtain independent evaluations, including from 
                Inspectors General of the relevant departments or 
                agencies, on a periodic basis on the effectiveness of 
                the implementation of this subtitle in carrying out the 
                policy set forth in section 812; and
                  (D) to benefit from the inherent equities, 
                experience, and capabilities of the Federal officials 
                described in subsection (a), including--
                          (i) the views of the Department of Defense 
                        with respect to the national security 
                        implications of a particular control or 
                        decision;
                          (ii) the views of the Department of State 
                        with respect to the foreign policy implications 
                        of a particular control or decision;
                          (iii) the views of the Department of Energy 
                        with respect to the implications for nuclear 
                        proliferation of a particular control or 
                        decision; and
                          (iv) the views of the Department of Commerce 
                        with respect to the administration of an 
                        efficient, coherent, reliable, enforceable, and 
                        predictable export control system, and the 
                        resolution of competing views or policy 
                        objectives described in section 812.
          (2) Authority to seek information.--The Federal officials 
        described in subsection (a) may, in carrying out the purposes 
        set forth in paragraph (1), seek information and advice from 
        experts who are not officers or employees of the Federal 
        Government.
          (3) Transmittal and implementation of evaluations.--The 
        results of the independent evaluations conducted pursuant to 
        paragraph (1)(C) shall be transmitted to the President and the 
        Congress, in classified form if necessary. Subject to the 
        delegation of authority by the President, the Federal officials 
        described in subsection (a) shall determine, direct, and ensure 
        that improvements recommended in the evaluations are 
        implemented.
  (c) Sense of Congress.--It is the sense of Congress that the 
administration of export controls under this subtitle should be 
consistent with the procedures relating to export license applications 
described in Executive Order 12981 (1995).

SEC. 816. CONTROL LISTS.

  The President shall, pursuant to the delegation of authority in 
section 815, ensure that--
          (1) a process is established for regular interagency review 
        of each list established under section 814(a)(1), that pursuant 
        to such review the Secretary regularly updates such lists to 
        ensure that new items (including emerging critical 
        technologies) are appropriately controlled, and that the level 
        of control of items on the lists are adjusted as conditions 
        change;
          (2) information and expertise are obtained from officers and 
        employees from relevant Federal departments, agencies, and 
        offices and persons outside the Federal Government who have 
        technical expertise, with respect to the characteristics of the 
        items considered for each list established under section 
        814(a)(1) and the effect of controlling the items on addressing 
        the policy set forth in section 812;
          (3) each list established under section 814(a)(1) 
        appropriately identifies each entry that has been included by 
        virtue of the participation of the United States in a 
        multilateral regime, organization, or group the purpose of 
        which is consistent with and supports the policy of the United 
        States under this subtitle relating to the control of exports, 
        reexports, and transfers of items; and
          (4) each list established under section 814(a)(1) is 
        published by the Secretary in a form that facilitates 
        compliance with it and related requirements, particularly by 
        small- and medium-sized businesses, and academic institutions.

SEC. 817. LICENSING.

  (a) In General.--The President shall, pursuant to the delegation of 
authority in section 815, establish a procedure for the Department of 
Commerce to license or otherwise authorize the export, reexport, and 
transfer of items controlled under this subtitle in order to carry out 
the policy set forth in section 812 and the requirements set forth in 
section 813(b). The procedure shall ensure that--
          (1) license applications, other requests for authorization, 
        and related dispute resolution procedures are considered and 
        decisions made with the participation of appropriate 
        departments, agencies, and offices that have delegated 
        functions under this subtitle; and
          (2) licensing decisions are made in an expeditious manner, 
        with transparency to applicants on the status of license and 
        other authorization processing and the reason for denying any 
        license or request for authorization.
  (b) Sense of Congress.--It is the sense of Congress that the 
President should make best efforts to ensure that an accurate, 
consistent, and timely evaluation and processing of licenses or other 
requests for authorization to export, reexport, or transfer items 
controlled under this subtitle is accomplished within 30 days from the 
date of such license request.
  (c) Fees.--No fee may be charged in connection with the submission, 
processing, or consideration of any application for a license or other 
authorization or other request made in connection with any regulation 
in effect under the authority of this subtitle.

SEC. 818. COMPLIANCE ASSISTANCE.

  (a) System for Seeking Assistance.--The President may authorize the 
Secretary to establish a system to provide United States persons with 
assistance in complying with this subtitle, which may include a 
mechanism for providing information, in classified form as appropriate, 
who are potential customers, suppliers, or business partners with 
respect to items controlled under this subtitle, in order to further 
ensure the prevention of the export, reexport, or transfer of items 
that may pose a threat to the national security or foreign policy of 
the United States.
  (b) Security Clearances.--In order to carry out subsection (a), the 
President may issue appropriate security clearances to persons 
described in that subsection who are responsible for complying with 
this subtitle.
  (c) Assistance for Certain Businesses.--
          (1) In general.--Not later than 120 days after the date of 
        the enactment of this Act, the President shall develop and 
        submit to Congress a plan to assist small- and medium-sized 
        United States in export licensing and other processes under 
        this subtitle.
          (2) Contents.--The plan shall include, among other things, 
        arrangements for the Department of Commerce to provide 
        counseling to businesses described in paragraph (1) on filing 
        applications and identifying items controlled under this 
        subtitle, as well as proposals for seminars and conferences to 
        educate such businesses on export controls, licensing 
        procedures, and related obligations.

SEC. 819. REQUIREMENTS TO IDENTIFY AND CONTROL EMERGING, FOUNDATIONAL, 
                    AND OTHER CRITICAL TECHNOLOGIES IN EXPORT CONTROL 
                    REGULATIONS.

  (a) In General.--The President shall establish and, in coordination 
with the Secretary, the Secretary of Defense, the Secretary of Energy, 
the Secretary of State, and the heads of other departments as 
appropriate, lead a regular, ongoing interagency process to identify 
the following:
          (1) Emerging, foundational, or other critical technologies 
        that are essential to the national security of the United 
        States and that are not--
                  (A) identified in any list of items controlled for 
                export under United States law or regulations; or
                  (B) hereafter separately identified in any law or 
                regulation under the authority of a department or 
                agency responsible for administering United States 
                export controls.
          (2) Other technologies that are not identified in any list of 
        items controlled for export under United States law or 
        regulations that are essential to the national security of the 
        United States.
          (3) Subject to subsections (c) and (d), the President shall 
        require the relevant export control authority to publish 
        proposed regulations for public comment, including, as 
        appropriate, interim final rules, that would control such 
        emerging, foundational, or other critical technologies 
        identified pursuant to this subsection and control the release 
        of each such technology to destinations, end uses, or end users 
        as determined by the President.
  (b) Requirements.--The interagency process required under subsection 
(a) shall--
          (1) be informed by multiple sources of information, including 
        industry, academia, other open source and classified 
        information and transactions reviewed by the Committee on 
        Foreign Investment in the United States;
          (2) take into account the foreign development or availability 
        of such emerging, foundational, and other critical technologies 
        and the impact the controls established in subsection (c) may 
        have on the development of the technology in the United States; 
        and
          (3) the Secretary, the Secretary of Defense, the Secretary of 
        Energy, and the Secretary of State, and the heads of other 
        departments as appropriate, shall consider relevant information 
        provided by the Director of National Intelligence.
  (c) Commerce Controls.--
          (1) In general.--The Secretary is authorized to establish 
        controls, as appropriate, on technologies identified through 
        the interagency process required under subsection (a) and 
        subject to the Export Administration Regulations, including by 
        publishing additional regulations.
          (2) Levels of control.--
                  (A) In general.--The Secretary, in coordination with 
                the Secretary of Defense, the Secretary of State, and 
                the heads of other departments as appropriate, is 
                authorized to develop and apply levels of control, 
                including the requirements for a license or other 
                authorization, to export, reexport, or transfer such 
                technologies.
                  (B) Requirements.--In developing and applying the 
                levels of control for such technologies, the 
                Secretary--
                          (i) shall take into account--
                                  (I) whether a country is subject to a 
                                United States arms embargo or is 
                                otherwise subject to United States 
                                sanctions;
                                  (II) potential end users and end 
                                uses; and
                                  (III) the threat to the national 
                                security and foreign policy of the 
                                United States;
                          (ii) shall, at a minimum, require a license 
                        to export, reexport, or transfer such 
                        technologies to a country that is subject to a 
                        comprehensive United States arms embargo; and
                          (iii) may provide for appropriate license 
                        exceptions for the export, reexport, or 
                        transfer of such technologies.
                  (C) License applications submitted pursuant to 
                subparagraph (B)(ii).--For license applications 
                submitted pursuant to subparagraph (B)(ii), the 
                Secretary may, with respect to any joint venture, joint 
                development agreement, or similar collaborative 
                arrangement, require the applicant to identify, in 
                addition to the foreign participant directly involved 
                in the collaborative arrangement, any foreign person 
                with significant ownership interest in the direct 
                foreign participant.
          (3) Review of license applications.--
                  (A) In general.--The procedures set forth in 
                Executive Order 12981 (1995) (as amended) or any 
                successor Executive order, shall apply to the review of 
                applications for licenses to export, reexport, or 
                transfer technologies identified through the 
                interagency process required under subsection (a) 
                submitted to the Department of Commerce pursuant to 
                paragraph (2).
                  (B) Other information.--In addition to the procedures 
                described in subparagraph (A), the review of 
                applications for such licenses shall take into account 
                information provided by the Director of National 
                Intelligence regarding any threat to the national 
                security of the United States posed by the proposed 
                export, reexport, or transfer of such technologies.
  (d) Multilateral Controls.--
          (1) In general.--The Secretary of State, in consultation with 
        the Secretary and the Secretary of Defense and heads of other 
        departments as appropriate, shall propose to the relevant 
        multilateral export control regimes in the following year that 
        technologies identified through the interagency process 
        required under subsection (a) be added to the list of 
        technologies controlled by such regimes.
          (2) Review of continued unilateral export controls.--The 
        Secretary, with respect to those items on the Commerce Control 
        List maintained under part 774 of title 15, Code of Federal 
        Regulations, and in consultation with the Secretary of Defense 
        and the Secretary of State, and the Secretary of State, with 
        respect to those items on the United States Munitions List and 
        in consultation with the Secretary of Defense and the heads of 
        other departments as appropriate, shall determine whether 
        national security concerns warrant continued unilateral export 
        controls over technologies proposed for multilateral control 
        under paragraph (1) if the relevant multilateral export control 
        regime does not agree to list such technologies on its control 
        list within three years of a proposal by the United States.
  (e) Report.--The Secretary, the Secretary of State, and the Secretary 
of Energy, as appropriate, shall submit to the Committee on Foreign 
Investment in the United States on a semiannual basis a report on 
updates of any key actions taken pursuant to this section.
  (f) Rule of Construction.--Nothing in this section should be 
construed to alter or limit--
          (1) the authority of the President and the Secretary of State 
        to designate those items that are considered to be defense 
        articles or defense services for purposes of the Arms Export 
        Control Act (22 U.S.C. 2751 et seq.) or any other relevant law, 
        and to regulate such items; or
          (2) the authority of the President under the Atomic Energy 
        Act of 1954, the Nuclear Non-Proliferation Act of 1978, the 
        Energy Reorganization Act of 1974, this title, or any other 
        relevant law.
  (g) Sense of Congress.--It is the sense of the Congress that the 
President should request in the annual budget of the President 
submitted under section 1105(a) of title 31, United States Code, 
sufficient resources to enable the relevant departments and agencies to 
effectively implement this section.

SEC. 820. REVIEW RELATING TO COUNTRIES SUBJECT TO COMPREHENSIVE UNITED 
                    STATES ARMS EMBARGO.

  Not later than 180 days after the date of the enactment of this Act, 
the Secretary, the Secretary of Defense, the Secretary of Energy, the 
Secretary of State, and the heads of other departments as appropriate, 
shall conduct a review of--
          (1) section 744.21 of title 15, Code of Federal Regulations, 
        including to assess whether the current and anticipated risks 
        of direct or indirect diversion, such as from policies and 
        practices that effectively obscure distinctions between civil 
        and military end-users and end-uses, require that the scope of 
        control under such section should be expanded to apply to 
        exports, reexports, or transfers for military end uses and 
        military end users in countries that are subject to a 
        comprehensive United States arms embargo; and
          (2) entries on the Commerce Control List maintained under 
        part 774 of title 15, Code of Federal Regulations, that do not 
        impose license requirements for exports, reexports, or 
        transfers to countries subject to a comprehensive United States 
        arms embargo.

SEC. 821. PENALTIES.

  (a) Unlawful Acts.--
          (1) In general.--It shall be unlawful for a person to 
        violate, attempt to violate, conspire to violate, or cause a 
        violation of this subtitle or of any regulation, order, 
        license, or other authorization issued under this subtitle, 
        including any of the unlawful acts described in paragraph (2).
          (2) Specific unlawful acts.--The unlawful acts described in 
        this paragraph are the following:
                  (A) No person may engage in any conduct prohibited by 
                or contrary to, or refrain from engaging in any conduct 
                required by this subtitle, the Export Administration 
                Regulations, or any order, license or authorization 
                issued thereunder.
                  (B) No person may cause or aid, abet, counsel, 
                command, induce, procure, permit, or approve the doing 
                of any act prohibited, or the omission of any act 
                required by this subtitle, the Export Administration 
                Regulations, or any order, license or authorization 
                issued thereunder.
                  (C) No person may solicit or attempt a violation of 
                this subtitle, the Export Administration Regulations, 
                or any order, license or authorization issued 
                thereunder.
                  (D) No person may conspire or act in concert with one 
                or more other persons in any manner or for any purpose 
                to bring about or to do any act that constitutes a 
                violation of this subtitle, the Export Administration 
                Regulations, or any order, license or authorization 
                issued thereunder.
                  (E) No person may order, buy, remove, conceal, store, 
                use, sell, loan, dispose of, transfer, transport, 
                finance, forward, or otherwise service, in whole or in 
                part, or conduct negotiations to facilitate such 
                activities for, any item exported or to be exported 
                from the United States, or that is otherwise subject to 
                the Export Administration Regulations, with knowledge 
                that a violation of this subtitle, the Export 
                Administration Regulations, or any order, license or 
                authorization issued thereunder, has occurred, is about 
                to occur, or is intended to occur in connection with 
                the item unless valid authorization is obtained 
                therefor.
                  (F) No person may make any false or misleading 
                representation, statement, or certification, or falsify 
                or conceal any material fact, either directly to the 
                Department of Commerce, or an official of any other 
                United States agency, or indirectly through any other 
                person--
                          (i) in the course of an investigation or 
                        other action subject to the Export 
                        Administration Regulations;
                          (ii) in connection with the preparation, 
                        submission, issuance, use, or maintenance of 
                        any export control document or any report filed 
                        or required to be filed pursuant to the Export 
                        Administration Regulations; or
                          (iii) for the purpose of or in connection 
                        with effecting any export, reexport, or 
                        transfer of an item subject to the Export 
                        Administration Regulations or a service or 
                        other activity of a United States person 
                        described in section 814.
                  (G) No person may engage in any transaction or take 
                any other action with intent to evade the provisions of 
                this subtitle, the Export Administration Regulations, 
                or any order, license, or authorization issued 
                thereunder.
                  (H) No person may fail or refuse to comply with any 
                reporting or recordkeeping requirements of the Export 
                Administration Regulations or of any order, license, or 
                authorization issued thereunder.
                  (I) Except as specifically authorized in the Export 
                Administration Regulations or in writing by the 
                Department of Commerce, no person may alter any 
                license, authorization, export control document, or 
                order issued under the Export Administration 
                Regulations.
                  (J) No person may take any action that is prohibited 
                by a denial order issued by the Department of Commerce 
                to prevent imminent violations of this subtitle, the 
                Export Administration Regulations, or any order, 
                license or authorization issued thereunder.
          (3) Additional requirements.--For purposes of subparagraph 
        (G), any representation, statement, or certification made by 
        any person shall be deemed to be continuing in effect. Each 
        person who has made a representation, statement, or 
        certification to the Department of Commerce relating to any 
        order, license, or other authorization issued under this 
        subtitle shall notify the Department of Commerce, in writing, 
        of any change of any material fact or intention from that 
        previously represented, stated, or certified, immediately upon 
        receipt of any information that would lead a reasonably prudent 
        person to know that a change of material fact or intention had 
        occurred or may occur in the future.
  (b) Criminal Penalty.--A person who willfully commits, willfully 
attempts to commit, or willfully conspires to commit, or aids and abets 
in the commission of, an unlawful act described in subsection (a)--
          (1) shall be fined not more than $1,000,000; and
          (2) in the case of the individual, shall be imprisoned for 
        not more than 20 years, or both.
  (c) Civil Penalties.--
          (1) Authority.--The President may impose the following civil 
        penalties on a person for each violation by that person of this 
        subtitle or any regulation, order, or license issued under this 
        subtitle, for each violation:
                  (A) A fine of not more than $300,000 or an amount 
                that is twice the value of the transaction that is the 
                basis of the violation with respect to which the 
                penalty is imposed, whichever is greater.
                  (B) Revocation of a license issued under this 
                subtitle to the person.
                  (C) A prohibition on the person's ability to export, 
                reexport, or transfer any items, whether or not subject 
                to controls under this subtitle.
          (2) Procedures.--Any civil penalty under this subsection may 
        be imposed only after notice and opportunity for an agency 
        hearing on the record in accordance with sections 554 through 
        557 of title 5, United States Code.
          (3) Standards for levels of civil penalty.--The Secretary may 
        by regulation provide standards for establishing levels of 
        civil penalty under this subsection based upon factors such as 
        the seriousness of the violation, the culpability of the 
        violator, and such mitigating factors as the violator's record 
        of cooperation with the Government in disclosing the violation.
  (d) Criminal Forfeiture of Property Interest and Proceeds.--
          (1) Forfeiture.--Any person who is convicted under subsection 
        (b) of a violation of a control imposed under section 813 (or 
        any regulation, order, or license issued with respect to such 
        control) shall, in addition to any other penalty, forfeit to 
        the United States--
                  (A) any of that person's interest in, security of, 
                claim against, or property or contractual rights of any 
                kind in the tangible items that were the subject of the 
                violation;
                  (B) any of that person's interest in, security of, 
                claim against, or property or contractual rights of any 
                kind in tangible property that was used in the 
                violation; and
                  (C) any of that person's property constituting, or 
                derived from, any proceeds obtained directly or 
                indirectly as a result of the violation.
          (2) Procedures.--The procedures in any forfeiture under this 
        subsection, and the duties and authority of the courts of the 
        United States and the Attorney General with respect to any 
        forfeiture action under this subsection or with respect to any 
        property that may be subject to forfeiture under this 
        subsection, shall be governed by the provisions of section 1963 
        of title 18, United States Code.
  (e) Prior Convictions.--
          (1) License bar.--
                  (A) In general.--The Secretary may--
                          (i) deny the eligibility of any person 
                        convicted of a criminal violation described in 
                        subparagraph (B) to export, reexport, or 
                        transfer outside the United States any item, 
                        whether or not subject to controls under this 
                        subtitle, for a period of up to 10 years 
                        beginning on the date of the conviction; and
                          (ii) revoke any license or other 
                        authorization to export, reexport, or transfer 
                        items that was issued under this subtitle and 
                        in which such person has an interest at the 
                        time of the conviction.
                  (B) Violations.--The violations referred to in 
                subparagraph (A) are any criminal violations of, or 
                criminal attempt or conspiracy to violate--
                          (i) this subtitle (or any regulation, 
                        license, or order issued under this subtitle);
                          (ii) any regulation, license, or order issued 
                        under the International Emergency Economic 
                        Powers Act;
                          (iii) section 371, 554, 793, 794, or 798 of 
                        title 18, United States Code;
                          (iv) section 1001 of title 18, United States 
                        Code;
                          (v) section 4(b) of the Internal Security Act 
                        of 1950 (50 U.S.C. 783(b)); or
                          (vi) section 38 of the Arms Export Control 
                        Act (22 U.S.C. 2778).
          (2) Application to other parties.--The Secretary may exercise 
        the authority under paragraph (1) with respect to any person 
        related, through affiliation, ownership, control, position of 
        responsibility, or other connection in the conduct of trade or 
        business, to any person convicted of any violation of law set 
        forth in paragraph (1), upon a showing of such relationship 
        with the convicted party, and subject to the procedures set 
        forth in subsection (c)(2).
  (f) Other Authorities.--Nothing in subsection (c), (d), or (e) 
limits--
          (1) the availability of other administrative or judicial 
        remedies with respect to violations of this subtitle, or any 
        regulation, order, license or other authorization issued under 
        this subtitle;
          (2) the authority to compromise and settle administrative 
        proceedings brought with respect to violations of this 
        subtitle, or any regulation, order, license, or other 
        authorization issued under this subtitle; or
          (3) the authority to compromise, remit or mitigate seizures 
        and forfeitures pursuant to section 1(b) of title VI of the Act 
        of June 15, 1917 (22 U.S.C. 401(b)).

SEC. 822. ENFORCEMENT.

  (a) Authorities.--In order to enforce this subtitle, the President 
shall delegate to the heads of other appropriate Federal departments 
and agencies the authority to--
          (1) issue regulations, orders, and guidelines;
          (2) require, inspect, and obtain books, records, and any 
        other information from any person subject to the provisions of 
        this subtitle;
          (3) administer oaths or affirmations and by subpoena require 
        any person to appear and testify or to appear and produce 
        books, records, and other writings, or both;
          (4) conduct investigations (including undercover) in the 
        United States and in other countries using all applicable laws 
        of the United States, including intercepting any wire, oral, 
        and electronic communications, conducting electronic 
        surveillance, using pen registers and trap and trace devices, 
        and carrying out acquisitions, to the extent authorized under 
        chapters 119, 121, and 206 of title 18, United States Code;
          (5) inspect, search, detain, seize, or issue temporary denial 
        orders with respect to items, in any form, that are subject to 
        controls under this subtitle, or conveyances on which it is 
        believed that there are items that have been, are being, or are 
        about to be exported, reexported, or transferred in violation 
        of this subtitle, or any regulations, order, license, or other 
        authorization issued thereunder;
          (6) carry firearms;
          (7) conduct prelicense inspections and post-shipment 
        verifications; and
          (8) execute warrants and make arrests.
  (b) Enforcement of Subpoenas.--In the case of contumacy by, or 
refusal to obey a subpoena issued to, any person under subsection 
(a)(3), a district court of the United States, after notice to such 
person and a hearing, shall have jurisdiction to issue an order 
requiring such person to appear and give testimony or to appear and 
produce books, records, and other writings, regardless of format, that 
are the subject of the subpoena. Any failure to obey such order of the 
court may be punished by such court as a contempt thereof.
  (c) Best Practice Guidelines.--
          (1) In general.--The Secretary, in consultation with the 
        heads of other appropriate Federal agencies, should publish and 
        update ``best practices'' guidelines to assist persons in 
        developing and implementing, on a voluntary basis, effective 
        export control programs in compliance with the regulations 
        issued under this subtitle.
          (2) Export compliance program.--The implementation by a 
        person of an effective export compliance program and a high 
        quality overall export compliance effort by a person should 
        ordinarily be given weight as mitigating factors in a civil 
        penalty action against the person under this subtitle.
  (d) Reference to Enforcement.--For purposes of this section, a 
reference to the enforcement of, or a violation of, this subtitle 
includes a reference to the enforcement or a violation of any 
regulation, order, license or other authorization issued pursuant to 
this subtitle.
  (e) Immunity.--A person shall not be excused from complying with any 
requirements under this section because of the person's privilege 
against self-incrimination, but the immunity provisions of section 6002 
of title 18, United States Code, shall apply with respect to any 
individual who specifically claims such privilege.
  (f) Confidentiality of Information.--
          (1) Exemptions from disclosure.--
                  (A) In general.--Information obtained under this 
                subtitle may be withheld from disclosure only to the 
                extent permitted by statute, except that information 
                described in subparagraph (B) shall be withheld from 
                public disclosure and shall not be subject to 
                disclosure under section 552(b)(3) of title 5, United 
                States Code, unless the release of such information is 
                determined by the Secretary to be in the national 
                interest.
                  (B) Information described.--Information described in 
                this subparagraph is information submitted or obtained 
                in connection with an application for a license or 
                other authorization to export, reexport, or transfer 
                items, engage in other activities, a recordkeeping or 
                reporting requirement, enforcement activity, or other 
                operations under this subtitle, including--
                          (i) the license application, license, or 
                        other authorization itself;
                          (ii) classification or advisory opinion 
                        requests, and the response thereto;
                          (iii) license determinations, and information 
                        pertaining thereto;
                          (iv) information or evidence obtained in the 
                        course of any investigation; and
                          (v) information obtained or furnished in 
                        connection with any international agreement, 
                        treaty, or other obligation.
          (2) Information to the congress and GAO.--
                  (A) In general.--Nothing in this section shall be 
                construed as authorizing the withholding of information 
                from the Congress or from the Government Accountability 
                Office.
                  (B) Availability to the congress.--
                          (i) In general.--Any information obtained at 
                        any time under any provision of the Export 
                        Administration Act of 1979 (as in effect on the 
                        day before the date of the enactment of this 
                        Act and as continued in effect pursuant to the 
                        International Emergency Economic Powers Act), 
                        under the Export Administration Regulations, or 
                        under this subtitle, including any report or 
                        license application required under any such 
                        provision, shall be made available to a 
                        committee or subcommittee of Congress of 
                        appropriate jurisdiction, upon the request of 
                        the chairman or ranking minority member of such 
                        committee or subcommittee.
                          (ii) Prohibition on further disclosure.--No 
                        such committee or subcommittee, or member 
                        thereof, may disclose any information made 
                        available under clause (i), that is submitted 
                        on a confidential basis unless the full 
                        committee determines that the withholding of 
                        that information is contrary to the national 
                        interest.
                  (C) Availability to GAO.--
                          (i) In general.--Information described in 
                        clause (i) of subparagraph (B) shall be subject 
                        to the limitations contained in section 716 of 
                        title 31, United States Code.
                          (ii) Prohibition on further disclosure.--An 
                        officer or employee of the Government 
                        Accountability Office may not disclose, except 
                        to the Congress in accordance with this 
                        paragraph, any such information that is 
                        submitted on a confidential basis or from which 
                        any individual can be identified.
          (3) Information sharing.--
                  (A) In general.--Any Federal official described in 
                section 815(a) who obtains information that is relevant 
                to the enforcement of this subtitle, including 
                information pertaining to any investigation, shall 
                furnish such information to each appropriate 
                department, agency, or office with enforcement 
                responsibilities under this section to the extent 
                consistent with the protection of intelligence, 
                counterintelligence, and law enforcement sources, 
                methods, and activities.
                  (B) Exceptions.--The provisions of this paragraph 
                shall not apply to information subject to the 
                restrictions set forth in section 9 of title 13, United 
                States Code, and return information, as defined in 
                subsection (b) of section 6103 of the Internal Revenue 
                Code of 1986 (26 U.S.C. 6103(b)), may be disclosed only 
                as authorized by that section.
                  (C) Exchange of information.--The President shall 
                ensure that the heads of departments, agencies, and 
                offices with enforcement authorities under this 
                subtitle, consistent with protection of law enforcement 
                and its sources and methods--
                          (i) exchange any licensing and enforcement 
                        information with one another that is necessary 
                        to facilitate enforcement efforts under this 
                        section; and
                          (ii) consult on a regular basis with one 
                        another and with the head of other departments, 
                        agencies, and offices that obtain information 
                        subject to this paragraph, in order to 
                        facilitate the exchange of such information.
                  (D) Information sharing with federal agencies.--
                Licensing or enforcement information obtained under 
                this subtitle may be shared with heads of departments, 
                agencies, and offices that do not have enforcement 
                authorities under this subtitle on a case-by-case basis 
                at the discretion of the President. Such information 
                may be shared only when the President makes a 
                determination that the sharing of this information is 
                in the national interest.
  (g) Reporting Requirements.--In the administration of this section, 
reporting requirements shall be designed to reduce the cost of 
reporting, recordkeeping, and documentation to the extent consistent 
with effective enforcement and compilation of useful trade statistics. 
Reporting, recordkeeping, and documentation requirements shall be 
periodically reviewed and revised in the light of developments in the 
field of information technology.
  (h) Civil Forfeiture.--
          (1) In general.--Any tangible items seized under subsection 
        (a) by designated officers or employees shall be subject to 
        forfeiture to the United States in accordance with applicable 
        law, except that property seized shall be returned if the 
        property owner is not found guilty of a civil or criminal 
        violation under section 819.
          (2) Procedures.--Any seizure or forfeiture under this 
        subsection shall be carried out in accordance with the 
        procedures set forth in section 981 of title 18, United States 
        Code.

SEC. 823. ADMINISTRATIVE PROCEDURE.

  (a) In General.--The functions exercised under this subtitle shall 
not be subject to sections 551, 553 through 559, and 701 through 706 of 
title 5, United States Code.
  (b) Administrative Law Judges.--The Secretary is authorized to 
appoint an administrative law judge, and may designate administrative 
law judges from other Federal agencies who are provided pursuant to a 
legally authorized interagency agreement with the Department of 
Commerce, and consistent with the provisions of section 3105 of title 
5, United States Code.
  (c) Amendments to Regulations.--The President shall notify in advance 
the Committee on Banking, Housing, and Urban Affairs of the Senate and 
the Committee on Foreign Affairs of the House of Representatives of any 
proposed amendments to the Export Administration Regulations with an 
explanation of the intent and rationale of such amendments.

SEC. 824. ANNUAL REPORT TO CONGRESS.

  (a) In General.--The President shall submit to Congress, by December 
31 of each year, a report on the implementation of this subtitle during 
the preceding fiscal year. The report shall include a review of--
          (1) the effect of controls imposed under this subtitle on 
        exports, reexports, and transfers of items in addressing 
        threats to the national security or foreign policy of the 
        United States, including a description of licensing processing 
        times;
          (2) the impact of such controls on the scientific and 
        technological leadership of the United States;
          (3) the consistency with such controls of export controls 
        imposed by other countries;
          (4) efforts to provide exporters with compliance assistance, 
        including specific actions to assist small- and medium-sized 
        businesses;
          (5) a summary of regulatory changes from the prior fiscal 
        year;
          (6) a summary of export enforcement actions, including of 
        actions taken to implement end-use monitoring of dual-use, 
        military, and other items subject to the Export Administration 
        Regulations;
          (7) a summary of approved license applications to proscribed 
        persons;
          (8) efforts undertaken within the previous year to comply 
        with the requirements of section 819, including any critical 
        technologies identified under such section and how or whether 
        such critical technologies were controlled for export; and
          (9) a summary of industrial base assessments conducted during 
        the previous year by the Department of Commerce, including with 
        respect to counterfeit electronics, foundational technologies, 
        and other research and analysis of critical technologies and 
        industrial capabilities of key defense-related sectors.
  (b) Form.--The report required under subsection (a) shall be 
submitted in unclassified form, but may contain a classified annex.

SEC. 825. REPEAL.

  (a) In General.--The Export Administration Act of 1979 (50 U.S.C. 
App. 2401 et seq.) (as continued in effect pursuant to the 
International Emergency Economic Powers Act) is repealed.
  (b) Implementation.--The President shall implement the amendment made 
by subsection (a) by exercising the authorities of the President under 
the International Emergency Economic Powers Act (50 U.S.C. 1701 et 
seq.).

SEC. 826. EFFECT ON OTHER ACTS.

  (a) In General.--Except as otherwise provided in this subtitle, 
nothing contained in this subtitle shall be construed to modify, 
repeal, supersede, or otherwise affect the provisions of any other laws 
authorizing control over exports, reexports, or transfers of any item, 
or activities of United States persons subject to the Export 
Administration Regulations.
  (b) Coordination of Controls.--
          (1) In general.--The authority granted to the President under 
        this subtitle shall be exercised in such manner so as to 
        achieve effective coordination with all export control and 
        sanctions authorities exercised by Federal departments and 
        agencies delegated with authority under this subtitle, 
        particularly the Department of State, the Department of the 
        Treasury, and the Department of Energy.
          (2) Sense of congress.--It is the sense of Congress that in 
        order to achieve effective coordination described in paragraph 
        (1), such Federal departments and agencies--
                  (A) should continuously work to create enforceable 
                regulations with respect to the export, reexport, and 
                transfer by United States and foreign persons of 
                commodities, software, technology, and services to 
                various end uses and end users for foreign policy and 
                national security reasons;
                  (B) should regularly work to reduce complexity in the 
                system, including complexity caused merely by the 
                existence of structural, definitional, and other non-
                policy based differences between and among different 
                export control and sanctions systems; and
                  (C) should coordinate controls on items exported, 
                reexported, or transferred in connection with a foreign 
                military sale under chapter 2 of the Arms Export 
                Control Act or a commercial sale under section 38 of 
                the Arms Export Control Act to reduce as much 
                unnecessary administrative burden as possible that is a 
                result of differences between the exercise of those two 
                authorities.
  (c) Nonproliferation Controls.--Nothing in this subtitle shall be 
construed to supersede the procedures published by the President 
pursuant to section 309(c) of the Nuclear Non-Proliferation Act of 
1978.

SEC. 827. TRANSITION PROVISIONS.

  (a) In General.--All delegations, rules, regulations, orders, 
determinations, licenses, or other forms of administrative action that 
have been made, issued, conducted, or allowed to become effective under 
the Export Administration Act of 1979 (as in effect on the day before 
the date of the enactment of this Act and as continued in effect 
pursuant to the International Emergency Economic Powers Act), or the 
Export Administration Regulations, and are in effect as of the date of 
the enactment of this Act, shall continue in effect according to their 
terms until modified, superseded, set aside, or revoked under the 
authority of this subtitle.
  (b) Administrative and Judicial Proceedings.--This subtitle shall not 
affect any administrative or judicial proceedings commenced, or any 
applications for licenses made, under the Export Administration Act of 
1979 (as in effect on the day before the date of the enactment of this 
Act and as continued in effect pursuant to the International Emergency 
Economic Powers Act), or the Export Administration Regulations.
  (c) Certain Determinations and References.--
          (1) State sponsors of terrorism.--Any determination that was 
        made under section 6(j) of the Export Administration Act of 
        1979 (as in effect on the day before the date of the enactment 
        of this Act and as continued in effect pursuant to the 
        International Emergency Economic Powers Act) shall continue in 
        effect as if the determination had been made under section 
        814(c) of this Act.
          (2) Reference.--Any reference in any other provision of law 
        to a country the government of which the Secretary of State has 
        determined, for purposes of section 6(j) of the Export 
        Administration Act of 1979 (as in effect on the day before the 
        date of the enactment of this Act and as continued in effect 
        pursuant to the International Emergency Economic Powers Act), 
        is a government that has repeatedly provided support for acts 
        of international terrorism shall be deemed to refer to a 
        country the government of which the Secretary of State has 
        determined, for purposes of section 814(c), is a government 
        that has repeatedly provided support for acts of international 
        terrorism.

                  Subtitle B--Anti-Boycott Act of 2018

SEC. 831. SHORT TITLE.

  This subtitle may be cited as the ``Anti-Boycott Act of 2018''.

SEC. 832. STATEMENT OF POLICY.

  Congress declares it is the policy of the United States--
          (1) to oppose restrictive trade practices or boycotts 
        fostered or imposed by any foreign country against other 
        countries friendly to the United States or against any United 
        States person;
          (2) to encourage and, in specified cases, require United 
        States persons engaged in the export of goods or technology or 
        other information to refuse to take actions, including 
        furnishing information or entering into or implementing 
        agreements, which have the effect of furthering or supporting 
        the restrictive trade practices or boycotts fostered or imposed 
        by any foreign country against any United States person; and
          (3) to foster international cooperation and the development 
        of international rules and institutions to assure reasonable 
        access to world supplies.

SEC. 833. FOREIGN BOYCOTTS.

  (a) Prohibitions and Exceptions.--
          (1) Prohibitions.--For the purpose of implementing the 
        policies set forth in section 832, the President shall issue 
        regulations prohibiting any United States person, with respect 
        to that person's activities in the interstate or foreign 
        commerce of the United States, from taking or knowingly 
        agreeing to take any of the following actions with intent to 
        comply with, further, or support any boycott fostered or 
        imposed by any foreign country, against a country which is 
        friendly to the United States and which is not itself the 
        object of any form of boycott pursuant to United States law or 
        regulation:
                  (A) Refusing, or requiring any other person to 
                refuse, to do business with or in the boycotted 
                country, with any business concern organized under the 
                laws of the boycotted country, with any national or 
                resident of the boycotted country, or with any other 
                person, pursuant to an agreement with, a requirement 
                of, or a request from or on behalf of the boycotting 
                country. The mere absence of a business relationship 
                with or in the boycotted country with any business 
                concern organized under the laws of the boycotted 
                country, with any national or resident of the boycotted 
                country, or with any other person, does not indicate 
                the existence of the intent required to establish a 
                violation of regulations issued to carry out this 
                subparagraph.
                  (B) Refusing, or requiring any other person to 
                refuse, to employ or otherwise discriminating against 
                any United States person on the basis of race, 
                religion, sex, or national origin of that person or of 
                any owner, officer, director, or employee of such 
                person.
                  (C) Furnishing information with respect to the race, 
                religion, sex, or national origin of any United States 
                person or of any owner, officer, director, or employee 
                of such person.
                  (D) Furnishing information, or requesting the 
                furnishing of information, about whether any person 
                has, has had, or proposes to have any business 
                relationship (including a relationship by way of sale, 
                purchase, legal or commercial representation, shipping 
                or other transport, insurance, investment, or supply) 
                with or in the boycotted country, with any business 
                concern organized under the laws of the boycotted 
                country, with any national or resident of the boycotted 
                country, or with any other person which is known or 
                believed to be restricted from having any business 
                relationship with or in the boycotting country. Nothing 
                in this subparagraph shall prohibit the furnishing of 
                normal business information in a commercial context as 
                defined by the Secretary.
                  (E) Furnishing information about whether any person 
                is a member of, has made contributions to, or is 
                otherwise associated with or involved in the activities 
                of any charitable or fraternal organization which 
                supports the boycotted country.
                  (F) Paying, honoring, confirming, or otherwise 
                implementing a letter of credit which contains any 
                condition or requirement compliance with which is 
                prohibited by regulations issued pursuant to this 
                paragraph, and no United States person shall, as a 
                result of the application of this paragraph, be 
                obligated to pay or otherwise honor or implement such 
                letter of credit.
          (2) Exceptions.--Regulations issued pursuant to paragraph (1) 
        shall provide exceptions for--
                  (A) complying or agreeing to comply with 
                requirements--
                          (i) prohibiting the import of goods or 
                        services from the boycotted country or goods 
                        produced or services provided by any business 
                        concern organized under the laws of the 
                        boycotted country or by nationals or residents 
                        of the boycotted country; or
                          (ii) prohibiting the shipment of goods to the 
                        boycotting country on a carrier of the 
                        boycotted country, or by a route other than 
                        that prescribed by the boycotting country or 
                        the recipient of the shipment;
                  (B) complying or agreeing to comply with import and 
                shipping document requirements with respect to the 
                country of origin, the name of the carrier and route of 
                shipment, the name of the supplier of the shipment or 
                the name of the provider of other services, except that 
                no information knowingly furnished or conveyed in 
                response to such requirements may be stated in 
                negative, blacklisting, or similar exclusionary terms, 
                other than with respect to carriers or route of 
                shipment as may be permitted by such regulations in 
                order to comply with precautionary requirements 
                protecting against war risks and confiscation;
                  (C) complying or agreeing to comply in the normal 
                course of business with the unilateral and specific 
                selection by a boycotting country, or national or 
                resident thereof, of carriers, insurers, suppliers of 
                services to be performed within the boycotting country 
                or specific goods which, in the normal course of 
                business, are identifiable by source when imported into 
                the boycotting country;
                  (D) complying or agreeing to comply with export 
                requirements of the boycotting country relating to 
                shipments or transshipments of exports to the boycotted 
                country, to any business concern of or organized under 
                the laws of the boycotted country, or to any national 
                or resident of the boycotted country;
                  (E) compliance by an individual or agreement by an 
                individual to comply with the immigration or passport 
                requirements of any country with respect to such 
                individual or any member of such individual's family or 
                with requests for information regarding requirements of 
                employment of such individual within the boycotting 
                country; and
                  (F) compliance by a United States person resident in 
                a foreign country or agreement by such person to comply 
                with the laws of that country with respect to his 
                activities exclusively therein, and such regulations 
                may contain exceptions for such resident complying with 
                the laws or regulations of that foreign country 
                governing imports into such country of trademarked, 
                trade named, or similarly specifically identifiable 
                products, or components of products for his own use, 
                including the performance of contractual services 
                within that country, as may be defined by such 
                regulations.
          (3) Special rules.--Regulations issued pursuant to paragraphs 
        (2)(C) and (2)(F) shall not provide exceptions from paragraphs 
        (1)(B) and (1)(C).
          (4) Rule of construction.--Nothing in this subsection may be 
        construed to supersede or limit the operation of the antitrust 
        or civil rights laws of the United States.
          (5) Application.--This section shall apply to any transaction 
        or activity undertaken, by or through a United States person or 
        any other person, with intent to evade the provisions of this 
        section as implemented by the regulations issued pursuant to 
        this subsection, and such regulations shall expressly provide 
        that the exceptions set forth in paragraph (2) shall not permit 
        activities or agreements (expressed or implied by a course of 
        conduct, including a pattern of responses) otherwise 
        prohibited, which are not within the intent of such exceptions.
  (b) Foreign Policy Controls.--
          (1) In general.--In addition to the regulations issued 
        pursuant to subsection (a), regulations issued under subtitle A 
        to carry out the policies set forth in section 812(1)(D) shall 
        implement the policies set forth in this section.
          (2) Requirements.--Such regulations shall require that any 
        United States person receiving a request for the furnishing of 
        information, the entering into or implementing of agreements, 
        or the taking of any other action referred to in subsection (a) 
        shall report that fact to the Secretary, together with such 
        other information concerning such request as the Secretary may 
        require for such action as the Secretary considers appropriate 
        for carrying out the policies of that section. Such person 
        shall also report to the Secretary whether such person intends 
        to comply and whether such person has complied with such 
        request. Any report filed pursuant to this paragraph shall be 
        made available promptly for public inspection and copying, 
        except that information regarding the quantity, description, 
        and value of any goods or technology to which such report 
        relates may be kept confidential if the Secretary determines 
        that disclosure thereof would place the United States person 
        involved at a competitive disadvantage. The Secretary shall 
        periodically transmit summaries of the information contained in 
        such reports to the Secretary of State for such action as the 
        Secretary of State, in consultation with the Secretary, 
        considers appropriate for carrying out the policies set forth 
        in section 832.
  (c) Preemption.--The provisions of this section and the regulations 
issued pursuant thereto shall preempt any law, rule, or regulation of 
any of the several States or the District of Columbia, or any of the 
territories or possessions of the United States, or of any governmental 
subdivision thereof, which law, rule, or regulation pertains to 
participation in, compliance with, implementation of, or the furnishing 
of information regarding restrictive trade practices or boycotts 
fostered or imposed by foreign countries against other countries 
friendly to the United States.

SEC. 834. ENFORCEMENT.

  (a) Criminal Penalty.--A person who willfully commits, willfully 
attempts to commit, or willfully conspires to commit, or aids or abets 
in the commission of, an unlawful act section 833--
          (1) shall, upon conviction, be fined not more than 
        $1,000,000; or
          (2) if a natural person, may be imprisoned for not more than 
        20 years, or both.
  (b) Civil Penalties.--The President may impose the following civil 
penalties on a person who violates section 833 or any regulation issued 
under this subtitle:
          (1) A fine of not more than $300,000 or an amount that is 
        twice the value of the transaction that is the basis of the 
        violation with respect to which the penalty is imposed, 
        whichever is greater.
          (2) Revocation of a license issued under title I to the 
        person.
          (3) A prohibition on the person's ability to export, 
        reexport, or transfer any items controlled under subtitle A.
  (c) Procedures.--Any civil penalty or administrative sanction 
(including any suspension or revocation of authority to export) under 
this section may be imposed only after notice and opportunity for an 
agency hearing on the record in accordance with sections 554 through 
557 of title 5, United States Code, and shall be subject to judicial 
review in accordance with chapter 7 of such title.
  (d) Standards for Levels of Civil Penalty.--The President may by 
regulation provide standards for establishing levels of civil penalty 
under this section based upon factors such as the seriousness of the 
violation, the culpability of the violator, and the violator's record 
of cooperation with the Government in disclosing the violation.

Subtitle C--Sanctions Regarding Missile Proliferation and Chemical and 
                    Biological Weapons Proliferation

SEC. 841. MISSILE PROLIFERATION CONTROL VIOLATIONS.

  (a) Violations by United States Persons.--
          (1) Sanctions.--
                  (A) Sanctionable activity.--The President shall 
                impose the applicable sanctions described in 
                subparagraph (B) if the President determines that a 
                United States person knowingly--
                          (i) exports, reexports, or transfers of any 
                        item on the MTCR Annex, in violation of the 
                        provisions of section 38 (22 U.S.C. 2778) or 
                        chapter 7 of the Arms Export Control Act, 
                        subtitle A, or any regulations or orders issued 
                        under any such provisions; or
                          (ii) conspires to or attempts to engage in 
                        such export, reexport, or transfer.
                  (B) Sanctions.--The sanctions that apply to a United 
                States person under subparagraph (A) are the following:
                          (i) If the item on the MTCR Annex involved in 
                        the export, reexport, or transfer is missile 
                        equipment or technology within category II of 
                        the MTCR Annex, then the President shall deny 
                        to such United States person, for a period of 2 
                        years, licenses for the transfer of missile 
                        equipment or technology controlled under 
                        subtitle A.
                          (ii) If the item on the MTCR Annex involved 
                        in the export, reexport, or transfer is missile 
                        equipment or technology within category I of 
                        the MTCR Annex, then the President shall deny 
                        to such United States person, for a period of 
                        not less than 2 years, all licenses for items 
                        the transfer of which is controlled under 
                        subtitle A.
          (2) Discretionary sanctions.--In the case of any 
        determination referred to in paragraph (1), the President may 
        pursue any other appropriate penalties under section 820.
          (3) Waiver.--The President may waive the imposition of 
        sanctions under paragraph (1) on a person with respect to a 
        product or service if the President certifies to the Congress 
        that--
                  (A) the product or service is essential to the 
                national security of the United States; and
                  (B) such person is a sole source supplier of the 
                product or service, the product or service is not 
                available from any alternative reliable supplier, and 
                the need for the product or service cannot be met in a 
                timely manner by improved manufacturing processes or 
                technological developments.
  (b) Transfers of Missile Equipment or Technology by Foreign 
Persons.--
          (1) Sanctions.--
                  (A) Sanctionable activity.--Subject to paragraphs (3) 
                through (7), the President shall impose the applicable 
                sanctions under subparagraph (B) on a foreign person if 
                the President--
                          (i) determines that a foreign person 
                        knowingly--
                                  (I) exports, reexports, or transfers 
                                any MTCR equipment or technology that 
                                contributes to the design, development, 
                                or production of missiles in a country 
                                that is not an MTCR adherent and would 
                                be, if it were United States-origin 
                                equipment or technology, subject to the 
                                jurisdiction of the United States under 
                                subtitle A;
                                  (II) conspires to or attempts to 
                                engage in such export, reexport, or 
                                transfer; or
                                  (III) facilitates such export, 
                                reexport, or transfer by any other 
                                person; or
                          (ii) has made a determination with respect to 
                        the foreign person under section 73(a) of the 
                        Arms Export Control Act.
                  (B) Sanctions.--The sanctions that apply to a foreign 
                person under subparagraph (A) are the following:
                          (i) If the item involved in the export, 
                        reexport, or transfer is within category II of 
                        the MTCR Annex, then the President shall deny, 
                        for a period of 2 years, licenses for the 
                        transfer to such foreign person of missile 
                        equipment or technology the transfer of which 
                        is controlled under subtitle A.
                          (ii) If the item involved in the export, 
                        reexport, or transfer is within category I of 
                        the MTCR Annex, then the President shall deny, 
                        for a period of not less than 2 years, licenses 
                        for the transfer to such foreign person of 
                        items the transfer of which is controlled under 
                        subtitle A.
          (2) Inapplicability with respect to MTCR adherents.--
        Paragraph (1) does not apply with respect to--
                  (A) any export, reexport, or transfer that is 
                authorized by the laws of an MTCR adherent, if such 
                authorization is not obtained by misrepresentation or 
                fraud; or
                  (B) any export, reexport, or transfer of an item to 
                an end user in a country that is an MTCR adherent.
          (3) Effect of enforcement actions by MTCR adherents.--
        Sanctions set forth in paragraph (1) may not be imposed under 
        this subsection on a person with respect to acts described in 
        such paragraph or, if such sanctions are in effect against a 
        person on account of such acts, such sanctions shall be 
        terminated, if an MTCR adherent is taking judicial or other 
        enforcement action against that person with respect to such 
        acts, or that person has been found by the government of an 
        MTCR adherent to be innocent of wrongdoing with respect to such 
        acts.
          (4) Waiver and report to congress.--
                  (A) Waiver authority.--The President may waive the 
                application of paragraph (1) to a foreign person if the 
                President determines that such waiver is essential to 
                the national security of the United States.
                  (B) Notification and report to congress.--In the 
                event that the President decides to apply the waiver 
                described in subparagraph (A), the President shall so 
                notify the appropriate congressional committees not 
                less than 20 working days before issuing the waiver. 
                Such notification shall include a report fully 
                articulating the rationale and circumstances which led 
                the President to apply the waiver.
          (5) Additional waiver.--The President may waive the 
        imposition of sanctions under paragraph (1) on a person with 
        respect to a product or service if the President certifies to 
        the appropriate congressional committees that--
                  (A) the product or service is essential to the 
                national security of the United States; and
                  (B) such person is a sole source supplier of the 
                product or service, the product or service is not 
                available from any alternative reliable supplier, and 
                the need for the product or service cannot be met in a 
                timely manner by improved manufacturing processes or 
                technological developments.
          (6) Exceptions.--The President shall not apply the sanction 
        under this subsection prohibiting the importation of the 
        products of a foreign person--
                  (A) in the case of procurement of defense articles or 
                defense services--
                          (i) under existing contracts or subcontracts, 
                        including the exercise of options for 
                        production quantities to satisfy requirements 
                        essential to the national security of the 
                        United States;
                          (ii) if the President determines that the 
                        person to which the sanctions would be applied 
                        is a sole source supplier of the defense 
                        articles or defense services, that the defense 
                        articles or defense services are essential to 
                        the national security of the United States, and 
                        that alternative sources are not readily or 
                        reasonably available; or
                          (iii) if the President determines that such 
                        articles or services are essential to the 
                        national security of the United States under 
                        defense coproduction agreements or NATO 
                        Programs of Cooperation;
                  (B) to products or services provided under contracts 
                entered into before the date on which the President 
                publishes his intention to impose the sanctions; or
                  (C) to--
                          (i) spare parts;
                          (ii) component parts, but not finished 
                        products, essential to United States products 
                        or production;
                          (iii) routine services and maintenance of 
                        products, to the extent that alternative 
                        sources are not readily or reasonably 
                        available; or
                          (iv) information and technology essential to 
                        United States products or production.
  (c) Definitions.--In this section:
          (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                  (A) the Committee on Foreign Affairs of the House of 
                Representatives; and
                  (B) the Committee on Foreign Relations and the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate.
          (2) Defense articles; defense services.--The terms ``defense 
        articles'' and ``defense services'' mean those items on the 
        United States Munitions List as defined in section 47(7) of the 
        Arms Export Control Act (22 U.S.C. 2794 note).
          (3) Missile.--The term ``missile'' means a category I system 
        as defined in the MTCR Annex.
          (4) Missile technology control regime; mtcr.--The term 
        ``Missile Technology Control Regime'' or ``MTCR'' means the 
        policy statement, between the United States, the United 
        Kingdom, the Federal Republic of Germany, France, Italy, 
        Canada, and Japan, announced on April 16, 1987, to restrict 
        sensitive missile-relevant transfers based on the MTCR Annex, 
        and any amendments thereto.
          (5) MTCR adherent.--The term ``MTCR adherent'' means a 
        country that participates in the MTCR or that, pursuant to an 
        international understanding to which the United States is a 
        party, controls MTCR equipment or technology in accordance with 
        the criteria and standards set forth in the MTCR.
          (6) MTCR annex.--The term ``MTCR Annex'' means the Guidelines 
        and Equipment and Technology Annex of the MTCR, and any 
        amendments thereto.
          (7) Missile equipment or technology; mtcr equipment or 
        technology.--The terms ``missile equipment or technology'' and 
        ``MTCR equipment or technology'' mean those items listed in 
        category I or category II of the MTCR Annex.

SEC. 842. CHEMICAL AND BIOLOGICAL WEAPONS PROLIFERATION SANCTIONS.

  (a) Imposition of Sanctions.--
          (1) Determination by the president.--Except as provided in 
        subsection (b)(2), the President shall impose the sanction 
        described in subsection (c) if the President determines that a 
        foreign person has knowingly and materially contributed--
                  (A) through the export from the United States of any 
                item that is subject to the jurisdiction of the United 
                States under this subtitle; or
                  (B) through the export from any other country of any 
                item that would be, if they were United States goods or 
                technology, subject to the jurisdiction of the United 
                States under this subtitle,
        to the efforts by any foreign country, project, or entity 
        described in paragraph (2) to use, develop, produce, stockpile, 
        or otherwise acquire chemical or biological weapons.
          (2) Countries, projects, or entities receiving assistance.--
        Paragraph (1) applies in the case of--
                  (A) any foreign country that the President determines 
                has, at any time after January 1, 1980--
                          (i) used chemical or biological weapons in 
                        violation of international law;
                          (ii) used lethal chemical or biological 
                        weapons against its own nationals; or
                          (iii) made substantial preparations to engage 
                        in the activities described in clause (i) or 
                        (ii);
                  (B) any foreign country whose government is 
                determined for purposes of section 914(c) to be a 
                government that has repeatedly provided support for 
                acts of international terrorism; or
                  (C) any other foreign country, project, or entity 
                designated by the President for purposes of this 
                section.
          (3) Persons against which sanctions are to be imposed.--A 
        sanction shall be imposed pursuant to paragraph (1) on--
                  (A) the foreign person with respect to which the 
                President makes the determination described in that 
                paragraph;
                  (B) any successor entity to that foreign person; and
                  (C) any foreign person that is a parent, subsidiary, 
                or affiliate of that foreign person if that parent, 
                subsidiary, or affiliate knowingly assisted in the 
                activities which were the basis of that determination.
  (b) Consultations With and Actions by Foreign Government of 
Jurisdiction.--
          (1) Consultations.--If the President makes the determinations 
        described in subsection (a)(1) with respect to a foreign 
        person, the Congress urges the President to initiate 
        consultations immediately with the government with primary 
        jurisdiction over that foreign person with respect to the 
        imposition of a sanction pursuant to this section.
          (2) Actions by government of jurisdiction.--In order to 
        pursue such consultations with that government, the President 
        may delay imposition of a sanction pursuant to this section for 
        a period of up to 90 days. Following such consultations, the 
        President shall impose the sanction unless the President 
        determines and certifies to the appropriate congressional 
        committees that the Government has taken specific and effective 
        actions, including appropriate penalties, to terminate the 
        involvement of the foreign person in the activities described 
        in subsection (a)(1). The President may delay imposition of the 
        sanction for an additional period of up to 90 days if the 
        President determines and certifies to the Congress that the 
        government is in the process of taking the actions described in 
        the preceding sentence.
          (3) Report to congress.--The President shall report to the 
        appropriate congressional committees, not later than 90 days 
        after making a determination under subsection (a)(1), on the 
        status of consultations with the appropriate government under 
        this subsection, and the basis for any determination under 
        paragraph (2) of this subsection that such government has taken 
        specific corrective actions.
  (c) Sanction.--
          (1) Description of sanction.--The sanction to be imposed 
        pursuant to subsection (a)(1) is, except as provided that the 
        United States Government shall not procure, or enter into any 
        contract for the procurement of, any goods or services from any 
        person described in subsection (a)(3).
          (2) Exceptions.--The President shall not be required to apply 
        or maintain a sanction under this section--
                  (A) in the case of procurement of defense articles or 
                defense services--
                          (i) under existing contracts or subcontracts, 
                        including the exercise of options for 
                        production quantities to satisfy United States 
                        operational military requirements;
                          (ii) if the President determines that the 
                        person or other entity to which the sanctions 
                        would otherwise be applied is a sole source 
                        supplier of the defense articles or defense 
                        services, that the defense articles or defense 
                        services are essential, and that alternative 
                        sources are not readily or reasonably 
                        available; or
                          (iii) if the President determines that such 
                        articles or services are essential to the 
                        national security under defense coproduction 
                        agreements;
                  (B) to products or services provided under contracts 
                entered into before the date on which the President 
                publishes his intention to impose sanctions;
                  (C) to--
                          (i) spare parts;
                          (ii) component parts, but not finished 
                        products, essential to United States products 
                        or production; or
                          (iii) routine servicing and maintenance of 
                        products, to the extent that alternative 
                        sources are not readily or reasonably 
                        available;
                  (D) to information and technology essential to United 
                States products or production; or
                  (E) to medical or other humanitarian items.
  (d) Termination of Sanctions.--A sanction imposed pursuant to this 
section shall apply for a period of at least 12 months following the 
imposition of one sanction and shall cease to apply thereafter only if 
the President determines and certifies to the appropriate congressional 
committees that reliable information indicates that the foreign person 
with respect to which the determination was made under subsection 
(a)(1) has ceased to aid or abet any foreign government, project, or 
entity in its efforts to acquire chemical or biological weapons 
capability as described in that subsection.
  (e) Waiver.--
          (1) Criterion for waiver.--The President may waive the 
        application of any sanction imposed on any person pursuant to 
        this section if the President determines and certifies to the 
        appropriate congressional committees that such waiver is 
        important to the national security interests of the United 
        States.
          (2) Notification of and report to congress.--If the President 
        decides to exercise the waiver authority provided in paragraph 
        (1), the President shall so notify the appropriate 
        congressional committees not less than 20 days before the 
        waiver takes effect. Such notification shall include a report 
        fully articulating the rationale and circumstances which led 
        the President to exercise the waiver authority.
  (f) Definitions.--In this section:
          (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                  (A) the Committee on Foreign Affairs of the House of 
                Representatives; and
                  (B) the Committee on Foreign Relations and the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate.
          (2) Defense articles; defense services.--The terms ``defense 
        articles'' and ``defense services'' mean those items on the 
        United States Munitions List or are otherwise controlled under 
        the Arms Export Control Act.

                 Subtitle D--Administrative Authorities

SEC. 851. UNDER SECRETARY OF COMMERCE FOR INDUSTRY AND SECURITY.

  (a) Appointment.--
          (1) In general.--The President shall appoint, by and with the 
        advice and consent of the Senate, an Under Secretary of 
        Commerce for Industry and Security who shall carry out all the 
        functions of the Secretary under this title and such other 
        provisions of law that relate to the implementation of the 
        dual-use export system.
          (2) Assistant secretaries of commerce.--The President shall 
        appoint, by and with the advice and consent of the Senate, two 
        Assistant Secretaries of Commerce to assist the Under Secretary 
        in carrying out the functions described in paragraph (1).
  (b) Delegation.--
          (1) To secretary.--The President shall continue the 
        delegation of functions to the Secretary to administer and 
        enforce the export control system authorized by this title that 
        were delegated to the Secretary as of the day before the date 
        of the enactment of this Act.
          (2) To bureau of industry and security.--The Secretary shall 
        further delegate implementation of the authorities set forth in 
        this title to the Bureau of Industry and Security within the 
        Department of Commerce.

                          Purpose and Summary

    On May 16, 2018, Rep. Pittenger introduced H.R. 5841, the 
``Foreign Investment Risk Review Modernization Act of 2018'' 
(FIRRMA). This legislation would modernize the Committee on 
Foreign Investment in the United States (CFIUS), codify an 
interagency process to identify emerging technologies essential 
for United States national security, and establish a statutory 
basis for export controls involving certain commercial and 
military items.
    Since its last statutory update under the Foreign 
Investment and National Security Act of 2007 (P.L. 110-49), 
CFIUS has encountered increased risks and operational 
challenges as foreign investment transactions have grown in 
number and complexity. H.R. 5841 seeks to address these new 
challenges.
    In particular, FIRRMA would permit CFIUS to review 
sensitive non-controlling investments involving countries of 
special concern, including China, Russia, Venezuela, and state 
sponsors of terrorism. In addition, the bill includes certain 
real estate purchases or leases in close proximity to military 
installations, or at air and sea ports, under the definition of 
covered transactions. FIRRMA also establishes an ongoing 
interagency review of emerging and foundational technologies 
that are essential for national security so that their transfer 
to foreign persons is appropriately restricted.
    In response to a Government Accountability Office report 
(GAO-18-249), this legislation would further require the 
Department of the Treasury to report on CFIUS resource needs at 
each member agency in order to better ensure that CFIUS is 
adequately funded to meet its national security objectives.

                  Background and Need for Legislation


Background

    Originally formed under a 1975 executive order to monitor 
U.S. policy on foreign direct investments, the Committee on 
Foreign Investment in the United States (CFIUS) is an 
interagency committee chaired by Treasury that consists of the 
executive branch agencies that deal with national security or 
intelligence. In 1988, as part of the Omnibus Trade Act, 
Congress expanded the role of CFIUS by enacting the Exon-Florio 
amendment to the Defense Production Act. The Exon-Florio 
amendment authorized the President to suspend or prohibit 
foreign acquisitions of U.S. businesses if the foreign 
controlling interest might threaten national security. The 
President delegated this authority to CFIUS.
    The Exon-Florio amendment established a four-step process 
for exercising this authority: (1) voluntary notice by the 
companies; (2) a 30-day review to identify national security 
concerns; (3) an optional 45-day investigation to determine 
whether national security concerns required more extensive 
mitigation efforts or a recommendation to the President for 
possible denial; and (4) potentially, a Presidential decision 
to suspend or prohibit an acquisition that raised national 
security concerns.
    Most CFIUS reviews are routine. Either the panel finds no 
objection to the purchase, or the companies involved agree to 
mitigation procedures ranging from changes in the sales 
agreement to divestiture of a division or operating unit. 
Alternatively, a transaction can be withdrawn when it is clear 
the President would block it.
    In 2006, however, controversy arose over a Dubai company's 
acquisition of a number of U.S. port-operating authorities, 
which prompted the Financial Services Committee to undertake a 
major reform of CFIUS. These reforms became part of the Foreign 
Investment and National Security Act of 2007 (FINSA). That act 
generally left the CFIUS review process intact, but clarified 
and specified some timelines for the scrutiny of acquisitions. 
The legislation also required that senior Senate-confirmed 
officials from the appropriate member agencies of CFIUS certify 
to Congress that they did not object to a transaction that 
CFIUS ``approved.'' The legislation also gave Congress greater 
oversight over CFIUS and expanded the definition of ``national 
security'' to include issues relating to homeland security.

Perspectives on the current state of CFIUS

    As the size, complexity, and volume of cross-border 
transactions being undertaken in the last few years have 
increased, a variety of factors have contributed to concerns 
that the vital strategic lead the United States seeks to 
maintain over competitor countries such as China may be 
eroding. China is flexing its military muscle, creating 
security concerns throughout East Asia. Its increasingly 
hardline leadership also seeks to graduate from being a value-
adding low-cost assembly platform to an innovator and 
technological powerhouse. The unambiguous ``civil-military 
integration'' China's leaders have articulated adds to concerns 
that even relatively modest technology transfers to China may, 
in aggregate, help narrow or erase the U.S. lead in microchips, 
biotechnology, pharmaceuticals, artificial intelligence, 
quantum computing, and other technologies that may form the 
building blocks for both military and economic leadership 
throughout the 21st Century.
    As a result, both Presidents Obama and Trump took action to 
deny proposed U.S. investments by Chinese companies, including 
the December 2016 blocking of Fujian Grand Chip Investment 
Fund's acquisition of Aixtron; the breakup in January 2018 of a 
proposal that involved a Chinese purchase of MoneyGram; as well 
as the March 2018 blocking of Broadcom's purchase of Qualcomm, 
which was linked to concerns over Chinese advances in 5G 
technologies. These actions by CFIUS demonstrated its increased 
scrutiny of Chinese investments, as well as its broad 
interpretation of authorities under current law.
    At the same time, witnesses at the Financial Services 
Committee's hearings have testified that the United States 
needs continued influxes of foreign direct investment (FDI) to 
fuel the research and development, capital equipment, and 
expansion needed to keep the economy healthy, which itself is 
an element of national security. This calls for thoughtfully 
and appropriately updating CFIUS's jurisdiction rather than 
carte blanche delegation of additional powers.
    The impact on the U.S. economy of continued strong FDI is 
immense. As Nancy McLernon, president and CEO of the 
Organization for International Investment, testified at a 
December 2017 Committee hearing, she said: ``[B]etween 2010 and 
2014, two thirds of all new manufacturing jobs that were 
created can be attributed to FDI. Across the country, U.S. 
workers at FDI companies earn 24 percent higher compensation 
than the economy-wide average. In addition, these companies 
engage in high levels of research and development (R&D), 
accounting for 16 percent of all R&D performed by U.S. 
companies. They also make extensive capital investments in new 
facilities and equipment totaling nearly $100 billion dollars 
annually and produce 23 percent of U.S. exports--that's nearly 
a billion dollars of exports every single day. Further, 
international companies fuel local growth by purchasing 
hundreds of billions of dollars in goods and services from 
local U.S. suppliers--creating huge opportunities for America's 
small businesses.''
    As former Deputy Treasury Secretary Robert M. Kimmitt said 
at the same hearing, ``Any analysis of foreign direct 
investment (FDI) should begin by recognizing its important 
contribution to the US economy. . . . [Former] Treasury 
Secretary Baker described foreign investment as America's 
economic `ace in the hole,' because such investment represented 
a foreign company's strong vote of confidence in the U.S. 
market and American workers. . . . If we want to continue to 
grow well-paying FDI jobs in the United States, we must send a 
clear message that we are open to investment.''
    Concerns were raised in Committee hearings that excessive 
and indiscriminate tightening of CFIUS filters may force some 
of this needed investment overseas, not because it presents a 
threat to national security, but because stiffer scrutiny, 
especially without added resources, would drag out an already 
long CFIUS process. Additionally, some witnesses argued that 
language in the original FIRRMA proposal, introduced as H.R. 
4311 on November 8, 2017, might make it difficult for 
multinationals to export research from a U.S. laboratory it 
owns to a foreign subsidiary of the same company, or may make 
it difficult for U.S. subsidiaries of foreign companies to 
compete for the company's investment dollars.
    Rod Hunter, a former special assistant to the President and 
senior director at the National Security Council, testified 
that, while CFIUS needs to be updated, the country's export 
control process should be the principal tool for stopping the 
exfiltration of critical technology. CFIUS would be an 
``ineffective substitute,'' he said, and could create something 
of a parallel export control system. Mr. Hunter further noted, 
``Imposing such a regime on U.S. technology businesses would be 
burdensome and could undermine U.S. innovation. Uncertainty 
around CFIUS determinations could encourage investment in 
research and development to move offshore, beyond the scope of 
the bureaucratic review process. This in turn could undermine 
the U.S. innovation and technological development so essential 
for our defense industrial base and economy more broadly.''

CFIUS enhancements under H.R. 5841

    FIRRMA would extend CFIUS jurisdiction to certain sensitive 
investments involving ``countries of special concern,'' which 
include countries subject to certain export restrictions as 
well as those classified by the Secretary of State as state 
sponsors of terrorism. At the time of reporting H.R. 5841 to 
the House for its consideration, the countries of special 
concern designation applied to China, Russia, Venezuela, and 
Iran, among others. Since countries of special concern are 
defined in H.R. 5841 by reference to existing country lists 
that are updated by the federal government over time, such 
countries would also change for the purposes of CFIUS, 
reflecting future threats as they emerge.
    H.R. 5841 adopts a targeted approach in order to devote 
CFIUS's limited resources to those countries that pose the 
greatest risk with respect to foreign investment. The 
legislation does not apply new jurisdiction to all countries 
with the possibility of later exemptions (commonly referred to 
as a ``country white list''). Such an approach would dilute the 
attention CFIUS could devote to the most pressing risks, create 
unnecessary diplomatic tensions with United States allies, and, 
as proposed in other legislation, may also permit Chinese and 
Russian actors, among others, to escape appropriate CFIUS 
scrutiny by routing investments through white-listed countries. 
As a result, a white list would likely undermine rather than 
enhance national security, and is therefore not part of H.R. 
5841 as reported.
    H.R. 5841 further tailors CFIUS's jurisdiction in order to 
address the transfer of nonpublic technical information and 
decision-making influence to a subset of non-controlling 
investors involved with countries of special concern. Unlike 
other proposals, H.R. 5841 targets these transfers 
specifically; it does not permit regulators to create new 
categories of United States businesses as candidates for 
blanket scrutiny. For instance, FIRRMA refers to decision-
making regarding the use, development, acquisition, or release 
of critical technologies instead of encompassing all decision-
making over a so-called ``critical technology company.'' FIRRMA 
also excludes the term ``critical infrastructure company,'' 
which has been proposed elsewhere and could sweep up thousands 
of United States businesses with little or no relation to 
national security, or even to critical infrastructure.
    While H.R. 5841 requires certain mandatory declarations for 
transactions resulting in the release of critical technologies 
to foreign persons in which a foreign government has a 
substantial interest, the bill does not permit CFIUS to mandate 
additional declarations based on industries and economic 
sectors. Such discretion could facilitate an ill-advised 
industrial policy with no demonstrable link to national 
security. Another proposal would have based mandatory 
declarations on the foreign share of ownership in United States 
businesses, without a clear link to national security risks. 
Such a policy was excluded from H.R. 5841.
    FIRRMA appropriately expands CFIUS's jurisdiction to 
include real estate purchases or leases near United States 
military installations. This provision is designed to confront 
the problem of ``encroachment,'' where foreign persons could 
use real estate near testing ranges and other facilities for 
the purpose of collecting intelligence. It is not intended to 
capture real estate transactions where there is no risk of 
foreign surveillance. The provision also clarifies that 
investments in port property that is unconnected to the 
takeover of a United States business may be reviewed by CFIUS.
    Finally, H.R. 5841 does not include proposals to expand 
CFIUS jurisdiction to the outbound ``contribution of 
intellectual property and associated services'' to foreign 
persons via joint ventures, a policy reflected in earlier 
drafts of FIRRMA. Such transfers are already overseen by the 
U.S. export controls regime, which has substantial experience 
and expertise in assessing those transfers where CFIUS has 
none.
    As multiple stakeholders, including former CFIUS officials 
from Republican and Democratic administrations, expressed 
during Committee consideration of CFIUS reforms, adding to 
CFIUS's jurisdiction in this way would have overwhelmed CFIUS 
and threatened its ability to effectively execute its existing 
mandate, thereby putting national security at risk. Such a 
policy would have also undermined export controls' ongoing 
mission to identify and restrict the release of dual-use 
technologies; and it would have incentivized innovators to 
pursue research and development outside the United States, thus 
harming national security profoundly. H.R. 5841 therefore does 
not provide for expanding CFIUS's remit in this way. Instead, 
FIRRMA establishes an ongoing interagency process to more 
effectively identify and control emerging technologies that are 
essential to the national security of the United States.

                                Hearings

    The Subcommittee on Monetary Policy and Trade held the 
following hearings examining matters related to H.R. 5841:
           ``Examining the Operations of the Committee 
        on Foreign Investment in the United States (CFIUS),'' 
        December 14, 2017;
           ``Evaluating CFIUS: Challenges Posed by a 
        Changing Global Economy,'' January 9, 2018;
           ``Evaluating CFIUS: Administration 
        Perspectives,'' March 15, 2018;
           ``H.R. 4311, the Foreign Investment Risk 
        Review Modernization Act of 2017,'' April 12, 2018.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
May 22, 2018 and ordered H.R. 5841 to be reported favorably to 
the House as amended by a recorded vote of 53 yeas to 0 nays 
(recorded vote no. FC-176), a quorum being present.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. An 
amendment offered by Mr. Green was not agreed to by a recorded 
vote of 20 yeas to 32 nays (Record vote no. FC-175). A motion 
by Chairman Hensarling to report the bill favorably to the 
House as amended was agreed to by a recorded vote of 53 yeas to 
0 nays (Record vote no. FC-176), a quorum being present.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the findings and recommendations of 
the Committee based on oversight activities under clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
are incorporated in the descriptive portions of this report.

                    Performance Goals and Objectives

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that 
funding is authorized to meet reasonable expenses of the 
Committee on Foreign Investment in the United States, with the 
goal of 1) thoroughly undertaking CFIUS action on declarations, 
reviews, and investigations as expeditiously as possible; 2) 
promptly submitting required reports to Congress; and 3) 
staffing CFIUS in order to effectively scrutinize covered 
transactions, as defined in H.R. 5841, particularly those 
involving countries of special concern.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    The Committee has not received an estimate of new budget 
authority contained in the cost estimate prepared by the 
Director of the Congressional Budget Office pursuant to Sec. 
402 of the Congressional Budget Act of 1974. In compliance with 
clause 3(c)(2) of rule XIII of the Rules of the House, the 
Committee opines that H.R. 5841 will not establish any new 
budget or entitlement authority or create any tax expenditures.

                 Congressional Budget Office Estimates

    The cost estimate prepared by the Director of the 
Congressional Budget Office pursuant to Sec. 402 of the 
Congressional Budget Act of 1974 was not submitted timely to 
the Committee.

                       Federal Mandates Statement

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995.
    H.R. 5841 mandates declarations of no more than 5 pages in 
length for certain covered transactions involving the release 
of critical technologies to a foreign investor in which a 
foreign government has a substantial interest. The Committee 
has determined that the bill does not impose a Federal 
intergovernmental mandate on State, local, or tribal 
governments.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of the section 
102(b)(3) of the Congressional Accountability Act.

                         Earmark Identification

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                    Duplication of Federal Programs

    In compliance with clause 3(c)(5) of rule XIII of the Rules 
of the House of Representatives, the Committee states that no 
provision of the bill establishes or reauthorizes: (1) a 
program of the Federal Government known to be duplicative of 
another Federal program; (2) a program included in any report 
from the Government Accountability Office to Congress pursuant 
to section 21 of Public Law 111-139; or (3) a program related 
to a program identified in the most recent Catalog of Federal 
Domestic Assistance, published pursuant to the Federal Program 
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No. 
98-169).

                   Disclosure of Directed Rulemaking

    Pursuant to section 3(i) of H. Res. 5, (115th Congress), 
the following statement is made concerning directed rule 
makings: The Committee requires CFIUS to prescribe regulations 
regarding mandatory declarations regarding certain covered 
transactions involving the release of critical technologies to 
a foreign person in which a foreign government has a 
substantial interest.

             Section-by-Section Analysis of the Legislation


                TITLE I: FINDINGS AND SENSE OF CONGRESS

Sec. 101: Findings and Sense of Congress

    Congressional findings highlight how foreign investment 
benefits the U.S. economy, helps create millions of American 
jobs, strengthens economic cooperation with U.S. allies, and 
supports research and development (R&D).
    The findings cite a Government Accountability Office 
analysis (GAO-18-249) which shows that staffing for the 
Committee on Foreign Investment in the United States (CFIUS) 
has not kept pace with CFIUS's increased workload, leading GAO 
to caution that overly burdensome legislative changes may limit 
CFIUS's ability to address national security threats.
    The Sense of Congress expresses continued strong support 
for foreign investment, calls for CFIUS to complement export 
controls and remain narrowly focused on national security, and 
notes the importance of adequate resources for CFIUS.

                         TITLE II: DEFINITIONS

Sec. 201: Definitions

    This section codifies terms as they already operate under 
CFIUS's existing regulations, including ``control,'' ``foreign 
government-controlled transaction,'' and ``United States 
business.''
    Section 201 modifies the definition of ``covered 
transactions'' to explicitly include:
           the purchase or lease by, or concession to, 
        a foreign person of private or public real estate that 
        1) is in close proximity to a U.S. military 
        installation, or 2) is an air or sea port, or could be 
        used to function as a port, provided that the real 
        estate is not a ``single housing unit'' or in an `` 
        urbanized area,'' as classified by the Bureau of the 
        Census;
           any change in a foreign investor's rights 
        that is likely to result in foreign control of a U.S. 
        business;
           any transaction or other device employed for 
        the purpose of evading CFIUS.
    Sensitive Transactions Involving Countries of Special 
Concern: This section permits CFIUS to review a non-controlling 
investment if the foreign investor is:
           A national or a government of a ``country of 
        special concern;''
           A foreign entity organized under the laws of 
        a country of special concern;
           A foreign entity controlled by either of the 
        above; or
           A foreign entity in which a government of a 
        country of special concern has a substantial interest; 
        and
    The investment would allow that foreign person to obtain:
           Sensitive personal data of U.S. citizens 
        that could be exploited in a manner that threatens 
        national security; or
           Influence over the use, development, 
        acquisition, or release of 1) such personal data; or 2) 
        critical technologies.
    A country of special concern includes:
           Any foreign country subject to certain 
        export restrictions on military end-use items (China, 
        Russia, and Venezuela);
           Any state sponsor of terrorism (Iran, North 
        Korea, Syria, and Sudan); and
           And country that is subject to a U.S. arms 
        embargo and named as a country of special concern in 
        CFIUS regulations.
    Critical Technologies: Under this section, the definition 
of critical technologies codifies existing CFIUS regulations, 
which define critical technologies as controlled technologies 
on the U.S. Munitions List and the Commerce Control List, as 
well as controlled nuclear equipment and toxins. FIRRMA 2018 
also specifies that ``emerging technologies'' qualify as 
critical technologies if they have been controlled and made 
public following the interagency process described in Section 
819.

 TITLE III: IMPROVEMENTS TO THE OPERATIONS OF THE COMMITTEE ON FOREIGN 
                    INVESTMENT IN THE UNITED STATES

Sec. 301: Inclusion of partnership and side agreements in notice

    This section allows CFIUS to require partnership and side 
agreements to be submitted with a written notice.

Sec. 302: Declarations relating to certain covered transactions

    Under this section, CFIUS shall require short declarations 
of five pages or less--commonly referred to as ``light 
filings''--for covered transactions that result in the release 
of critical technologies by a U.S. business to a foreign person 
in which a foreign government has a substantial interest. The 
term ``substantial interest'' would be defined by regulations, 
but does not include a voting interest of less than 10 percent, 
or ownership interests held solely for passive investment 
purposes.
    CFIUS may also allow voluntary light filings for the 
purpose of expediting the review of covered transaction deemed 
to be of limited risk.
    Parties to a covered transaction may submit a written 
notice, as already provided for under current law, in lieu of a 
light filing.
    CFIUS may require a light filing to be submitted prior to 
the completion of a transaction, but not more than 30 days in 
advance.
    CFIUS may impose penalties with respect to a party that 
fails to comply with the light filing requirement.
    Committee Response to a Declaration (Light Filing): In 
response to a light filing, CFIUS may 1) request that a written 
notice be submitted; 2) inform the parties to a transaction 
that CFIUS is unable to complete action, but that parties may 
file a written notice to receive a written notification that 
action has been completed; 3) initiate a unilateral review of 
the transaction; or 3) notify the parties that it has completed 
all action with respect to the transaction.
    CFIUS must take action on a light filing within 15 days of 
receiving it, and may not request or recommend that it be 
withdrawn and refiled except to permit the correction of 
material errors or omissions.

Sec. 303: Timing for reviews and investigations

    This section allows for deadlines to be tolled during a 
lapse in appropriations, and allows for one 15-day extension to 
CFIUS's investigation phase in the case of ``extraordinary 
circumstances.''

Sec. 304: Submission of certifications to Congress

    This section requires CFIUS's notifications to Congress to 
include a certification that all relevant national security 
factors have been considered by the Committee during its 
review. Section 304 also permits Treasury to batch 
certifications and submit them to Congress monthly.

Sec. 305: Analysis by Director of National Intelligence

    Sec. 305 requires the Director of National Intelligence to 
carry out an analysis of any national security threat posed by 
a covered transaction, and describes procedures for completing 
a basic threat assessment with respect to certain real estate 
transactions.

Sec. 306: Information sharing

    CFIUS may disclose information that a party to a 
transaction has consented to be disclosed.

Sec. 307: Action by the President

    This section clarifies that the President shall take action 
not later than 15 days after the end of an investigation (as 
prescribed under current law) or 15 days after CFIUS has 
referred a transaction to the President.

Sec. 308: Factors to be considered

    Sec. 307 adds the following discretionary factors that may 
be considered by CFIUS during its reviews:
           The degree to which a covered transaction 
        threatens the United States' ability to acquire or 
        maintain equipment and systems that are necessary for 
        national security purposes;
           The potential security-related effects of 
        the cumulative control of any one type of critical 
        infrastructure, energy asset, material, or critical 
        technology by a foreign person or government;
           Whether a foreign investor has a history of 
        complying with U.S. laws;
           The extent to which a covered transaction is 
        likely to expose sensitive personal data of U.S. 
        citizens in a manner that threatens national security;
           Whether the transaction is likely to 
        exacerbate cybersecurity vulnerabilities; and
           Whether the transaction is likely to expose 
        information regarding sensitive national security 
        matters or law enforcement operations.

Sec. 309: Mitigation and other actions by the Committee to address 
        national security risks

    This section largely codifies existing CFIUS practice when 
designing agreements to mitigate a national security threat by 
requiring CFIUS to ensure that such agreements are effective 
and adhered to. It also requires the CFIUS Chairperson 
(Secretary of the Treasury) and head of a lead agency to 
periodically review the appropriateness of mitigation 
agreements, and terminate, phase out, or otherwise amend them 
if they are no longer required to mitigate a threat.

Sec. 310: Certification of notices and information

    CFIUS may not complete a review, and may recommend that the 
President suspend or prohibit a transaction, if a party to a 
transaction fails to submit a certification that a written 
notice is accurate and complete, or includes false or 
misleading information. This section applies penalties for 
false statements contained in 18 U.S.C. Sec. 1001.

                TITLE IV: MODIFICATION OF ANNUAL REPORT

Sec. 401: Modification of annual report

    This section contains requirements for the CFIUS annual 
report, which shall describe the outcome of reviews and 
investigations, and include statistics on compliance reviews 
and light filings. The annual report would also include the 
number of new hires made under CFIUS's special hiring 
authority, and allow for appropriate classification of report 
sections.

       TITLE V: RESOURCES, SPECIAL HIRING AUTHORITY, AND OUTREACH

Sec. 501: Centralization of certain committee functions

    The CFIUS Chairperson (Secretary of the Treasury) may 
centralize CFIUS functions at Treasury in order to better 
coordinate CFIUS operations.

Sec. 502: CFIUS Resource needs

    The President may include in the budget for Treasury a 
unified request for CFIUS operations across all member 
agencies. This request shall include staffing levels required 
to carry out CFIUS functions at each member agency. 
Alternatively, CFIUS must submit an annual spending plan to 
Congress with this information in each of the five years 
following enactment. House testimony by the CFIUS chairperson 
or the chairperson's designee would be required to explain 
CFIUS's anticipated resource needs and the adequacy of existing 
resources.
    The heads of CFIUS agencies are exempted from certain 
competitive service hiring requirements in order to directly 
fill positions.

Sec. 503: CFIUS outreach

    From FY19 through FY23, CFIUS's chairperson, or the 
chairperson's designee, would be required to brief the House 
Financial Services Committee and Senate Banking Committee on 
outreach activities that inform the business community of its 
activities, with a particular focus on the technology sector 
and other sectors of importance to national security.

                   TITLE VI: MISCELLANEOUS PROVISIONS

Sec. 601-602: Conforming amendment and regulatory certainty for U.S. 
        businesses

    These sections make a conforming amendment and clarify that 
a member agency of CFIUS may not prescribe or implement 
regulations to require divestment by or of a U.S. business as 
mitigation for a national security risk, unless the President 
reports that such regulations are consistent with those 
prescribed under CFIUS's authorizing statute.

          TITLE VII: COMMON SENSE CREDIT UNION CAPITAL RELIEF

Sec. 701: Delay effective date

    Delays the effective date of the National Credit Union 
Administration's ``Risk-Based Capital'' rule until January 1, 
2021.

                   TITLE VIII: EXPORT CONTROL REFORM

Subtitle A--Authority and administration of controls

    This subtitle requires the President to establish controls 
over the export of certain ``dual-use'' and military items in 
order to advance the foreign policy and national security of 
the United States. The administration of those controls would 
be delegated to the Secretary of Commerce, Secretary of 
Defense, Secretary of State, the Director of National 
Intelligences, and other appropriate Federal agencies. Subject 
to interagency review, the Department of Commerce would be 
delegated with authority to issue licenses and other 
authorization for exports. Consistent with existing law, this 
title provides authority to impose criminal and civil penalties 
for export control violations. It also provides robust 
authority to enforce such controls, including the ability to 
stop unapproved transfers. The title establishes strong 
Congressional oversight of these controls. The title also 
repeals the Export Administration Act of 1979 (EAA) and 
includes transition provisions to ensure that rules and 
regulations established under the EAA, or otherwise enforced 
through emergency decree, shall remain in effect unless changed 
or revoked under the new authority established by this title.
    Section 801. Short Title. This section establishes the 
short title for title VIII as the ``Export Control Reform Act 
of 2018.''
    Section 802. Definitions. This section includes definitions 
for the Export Control title.
    Section 811. This establishes the short title for subtitle 
A as the ``Export Controls Act of 2018.''
    Section 812. Statement of Policy. This section describes 
the purposes of U.S. export controls authorized by this Act.
    Section 813. Authority of the President. This section 
requires that the President establish controls over the export, 
reexport, and transfer of ``dual-use'' and certain military 
items, as well as establish controls over discrete activities 
relating to the proliferation of weapons of mass destruction 
and their means of delivery.
    Section 814. Additional Authorities. Section 814(a) 
requires the President to establish lists of controlled items, 
as well as lists of foreign persons and end-uses determined to 
be a threat to the United States. Section 104(a) also states 
that the President shall:
           prohibit or restrict certain exports;
           require licenses or other authorization for 
        exports of controlled items and create, as appropriate, 
        exceptions to licensing requirements;
           establish measures for compliance, 
        information gathering, and the prevention of 
        unauthorized exports;
           keep the public fully informed of changes in 
        policy and appoint technical advisory committees; and
           undertake any other action necessary to 
        implement this authority not otherwise prohibited by 
        law.
    Section 814(b) states that the authority under this title 
may not generally be used to regulate any postal, telegraphic, 
telephonic, or other personal communication that does not 
involve a transfer of anything of value.
    Section 814(c) strengthens Congressional oversight over 
rescission of a country's designation as a State Sponsor of 
Terrorism. This section would increase the period of time the 
Congress would have to review any such proposed rescission from 
45 days to 90 days, increasing the period of time a country 
must refrain from supporting terrorism before the President 
could remove such a designation from 6 months to 2 years, as 
well as requiring the President to notify the Congress when the 
Administration initiates a review of a country's designation 
and, 20 days later, brief the Congress on the status of that 
review.
    Section 814(d) establishes a license requirement for 
certain activities primarily relating to the proliferation of 
weapons of mass destruction. Section 104(e) establishes 
specific notice requirement with respect to those licensed 
activities. Section 104(f) establishes strict license review 
standards for activities representing a proliferation concern.
    Section 815. Administration of Export Controls. This 
section requires the President to delegate the administration 
of dual-use export controls to the Secretary of Commerce, the 
Secretary of Defense, the Secretary of State, the Director of 
National Intelligence, and the heads of other appropriate 
Federal Departments and agencies. A sense of Congress is added 
that such delegation should be consistent with the delegation 
of authority and export licensing practices established under 
Executive Order 12981.
    Section 816. Control Lists. Section 106 requires that the 
President establish a regular interagency review of each list 
of controlled items. In accordance with such review, the 
Secretary of Commerce is required to regularly update such 
lists to ensure that new items are appropriately controlled, 
with such controls adjusted as conditions change. Each list of 
controlled items shall be published in a form that facilitates 
compliance with it, particularly by small and medium-sized 
businesses, and academic institutions.
    Section 817. Licensing. This section requires the President 
to establish a procedure by which the Department of Commerce 
shall issue licenses or other authorization for the export, 
reexport, or transfer of items controlled under this title. It 
also states that no fee may be charged in connection with 
license applications for controlled items.
    Section 818. Compliance Assistance. This section authorizes 
the President to establish procedures to encourage closer 
collaboration between the public and private sectors in 
identifying proliferation or other export-control risks to U.S. 
national security.
    Section 819. Requirements to Identify and Control Emerging, 
Foundational, and other Critical Technologies in Export Control 
Regulations. This section requires the President to establish 
an interagency process to identify emerging, foundational, and 
other critical technologies that are not identified in any U.S. 
or multilateral export control list, but nonetheless could be 
essential to U.S. national security.
    Section 820. Review Relating to Countries Subject to a 
Comprehensive U.S. Arms Embargo. This would require the 
Secretaries of Commerce, Defense, Energy, State, and the heads 
of other departments as appropriate, to conduct a review of 
U.S. dual-use licensing policy toward countries subject to a 
comprehensive U.S. arms embargo.
    Section 821. Penalties. This section defines what acts are 
unlawful under this title. Consistent with current law, this 
section also establishes criminal and civil penalties for 
export control violations, well as authority and procedures for 
criminal forfeiture. It also authorizes the President to 
establish a basis for denying the eligibility of persons 
convicted of a criminal violation to export, as well as to 
revoke any license or other authorization from such person.
    Section 822. Enforcement. This section provides broad 
authority to the President, as delegated to appropriate Federal 
departments and agencies, to enforce U.S. export controls 
established under this title. Such measures should include the 
publication of best practices guidelines to assist industry in 
compliance with U.S. export controls. This section also 
includes provisions for protection of confidentiality of 
information relating to license applications, with exceptions 
relating to transmission of such information to the Congress 
and General Accountability Office.
    Section 823. Administrative Procedure. This section 
provides that regulations relating to U.S. dual-use export 
controls shall not be subject to several administrative 
procedures as defined in title 5 of the United States Code.
    Section 824. Annual Report to Congress. This section 
requires the President to report annually to Congress on the 
implementation of these authorities. The report shall be 
unclassified but may contain a classified annex.
    Section 825. Repeal. This section repeals the Export 
Administration Act of 1979.
    Section 826. Effect on Other Acts. This section clarifies 
that except as otherwise provided in this title, nothing 
contained in this title shall be construed to impact any 
current U.S. export control laws. It also details Congressional 
expectations about the importance of close coordination of 
controls between Executive Branch agencies delegated with such 
responsibility.
    Section 827. Transition Provisions. This section provides 
that all delegations of authority, rules, regulations, orders, 
determinations, licenses or other forms of administrative 
action that were made under the Export Administration Act, the 
International Emergency Economic Powers Act, or the Export 
Administration Regulations, and are in effect as of the date of 
enactment of this Act, shall continue in effect unless 
otherwise changed under the authority of this title. These 
transition provisions also apply to administrative and judicial 
proceedings, as well as determinations relating to state 
sponsors of terrorism.

Subtitle B--Anti-boycott Provisions

    This title incorporates the existing anti-boycott 
provisions from the expired Export Administration Act of 1979. 
These provisions discourage, and in some circumstances, 
prohibit U.S. companies from furthering or supporting the 
boycott of Israel sponsored by the Arab League, or certain 
other countries, including complying with certain requests for 
information designed to verify compliance with the boycott.
    Section 831. Short Title. This title may be cited as the 
``Anti-boycott Act of 2018.''
    Section 832. Statement of Policy. This section states that 
it is the policy of the United States to oppose restrictive 
trade practices or boycotts imposed by foreign countries 
against other countries friendly to the United States or 
against any U.S. person.
    Section 833. Foreign Boycott. This section requires the 
President to issue regulations prohibiting any U.S. person, 
with respect to that person's activities in the interstate or 
foreign commerce of the United States, from taking or knowingly 
agreeing to take certain actions with intent to comply with, 
further, or support any foreign boycott against a country that 
is friendly to the U.S. that is also contrary to U.S. law or 
policy. Certain exceptions to this general prohibition also 
apply. It further provides that these anti-boycott restrictions 
shall also be enforced through foreign policy controls 
authorized under title I. This section imposes certain 
reporting requirements on U.S. persons who receive requests to 
implement restrictive anti-boycott measures. And it provides 
that this provision preempts other state and local laws 
regarding compliance with foreign boycotts.
    Section 834. Enforcement. Consistent with existing law, 
this section provides for the imposition of criminal and civil 
penalties on a person who violates section 203 or any related 
regulation. Such penalties may only be imposed after notice and 
opportunity for a hearing in accordance with applicable 
sections of title 5, United States Code, and shall be subject 
to judicial review.

Subtitle C--Sanctions on ballistic missiles and chemical and biological 
        weapons proliferation

    In general, this title carries over sanctions from the 
expired Export Administration Act against U.S. persons and 
foreign persons who engage in commercial transactions that 
violate missile proliferation, chemical and biological weapons 
controls.
    Section 841. Missile Proliferation Control Violations. This 
section imposes sanctions against U.S. persons and foreign 
persons who engage in commercial transactions that violate 
missile proliferation controls. The section requires sanctions 
against any U.S. citizen whom the President determines to be 
engaged in exporting, transferring, conspiring to export or 
transfer, or facilitating an export or transfer of, any 
equipment or technology identified by the Missile Technology 
Control Regime Annex. The section further requires sanctions 
against any foreign person whom the President determines to be 
engaged in conduct that contributes to the design, development, 
or production of missiles in a country that is not an MTCR 
adherent. The President may also prohibit importation into the 
U.S. of products produced by the foreign person. With notice to 
Congress, the President may also waive the imposition of the 
sanctions authorized in this section.
    Section 842. Chemical and Biological Weapons Proliferation 
Sanctions. This section authorizes the President to apply 
procurement and import sanctions against foreign persons that 
he determines knowingly contribute to the use, development, 
production, stockpile, or acquisition of chemical or biological 
weapons by exporting goods or technology from the United States 
or any other country. If certain conditions are met, the 
President may delay the imposition of sanctions for up to 180 
days or utilize certain foreign policy and national security 
exceptions. The President may terminate the sanctions after 12 
months if he determines and certifies to Congress that the 
sanctioned person no longer engages in such activity. The 
President may waive the application of a sanction after a year 
of its imposition, if he determines it is in U.S. national 
security interests to do so. Not less than 20 days before a 
national security waiver is issued, the President must notify 
Congress with a full explanation of the rationale for waiving 
the sanction.

Subtitle D--Administrative Authorities

    This title and section 851 continues current delegations to 
the Secretary of Commerce and to the Bureau of Industry and 
Security, establishes and Under Secretary of Commerce to 
implement the dual-use export system, and requires the 
appointment of two Assistant Secretaries of Commerce to assist 
the Secretary in carrying out these export control functions.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                     DEFENSE PRODUCTION ACT OF 1950




           *       *       *       *       *       *       *
TITLE VII--GENERAL PROVISIONS

           *       *       *       *       *       *       *



    authority to review certain mergers, acquisitions, and takeovers

  Sec. 721. (a) Definitions.--For purposes of this section, the 
following definitions shall apply:
          (1) Committee; chairperson.--The terms ``Committee'' 
        and ``chairperson'' mean the Committee on Foreign 
        Investment in the United States and the chairperson 
        thereof, respectively.
          [(2) Control.--The term ``control'' has the meaning 
        given to such term in regulations which the Committee 
        shall prescribe.
          [(3) Covered transaction.--The term ``covered 
        transaction'' means any merger, acquisition, or 
        takeover that is proposed or pending after August 23, 
        1988, by or with any foreign person which could result 
        in foreign control of any person engaged in interstate 
        commerce in the United States.
          [(4) Foreign government-controlled transaction.--The 
        term ``foreign government-controlled transaction'' 
        means any covered transaction that could result in the 
        control of any person engaged in interstate commerce in 
        the United States by a foreign government or an entity 
        controlled by or acting on behalf of a foreign 
        government.]
          (2) Control.--The term ``control'' means the power, 
        direct or indirect, whether or not exercised, to 
        determine, direct, or decide important matters 
        affecting an entity, subject to regulations prescribed 
        by the Committee.
          (3) Covered transaction.--
                  (A) In general.--The term ``covered 
                transaction'' means any transaction described 
                in subparagraph (B) or (C) that is proposed, 
                pending, or completed on or after the date of 
                the enactment of the Foreign Investment Risk 
                Review Modernization Act of 2018.
                  (B) Transactions described.--A transaction 
                described in this subparagraph is any of the 
                following:
                          (i) Any merger, acquisition, 
                        takeover, or joint venture that is 
                        proposed or pending after August 23, 
                        1988, by or with any foreign person 
                        that could result in foreign control of 
                        any United States business.
                          (ii) The purchase or lease by, or 
                        concession to, a foreign person of 
                        private or public real estate that--
                                  (I) is--
                                          (aa) located in the 
                                        United States and is, 
                                        or is in close 
                                        proximity to, a United 
                                        States military 
                                        installation; or
                                          (bb) itself, or is 
                                        located at and will 
                                        function as part of, an 
                                        air or sea port;
                                  (II) is not a single housing 
                                unit, as defined by the Bureau 
                                of the Census;
                                  (III) is not in an urbanized 
                                area, as set forth by the 
                                Bureau of the Census in its 
                                most recent census, except as 
                                otherwise prescribed by the 
                                Committee in regulations in 
                                consultation with the Secretary 
                                of Defense; and
                                  (IV) meets such other 
                                criteria as the Committee 
                                prescribes by regulation.
                          (iii) Any change in the rights that a 
                        foreign person has with respect to a 
                        United States business in which the 
                        foreign person has an investment, if 
                        that change is likely to result in 
                        foreign control of the United States 
                        business.
                          (iv) Any transaction or other device 
                        entered into or employed for the 
                        purpose of evading this section, 
                        subject to regulations prescribed by 
                        the Committee.
                  (C) Sensitive transactions involving 
                countries of special concern.--
                          (i) In general.--A transaction 
                        described in this subparagraph is any 
                        investment in an unaffiliated United 
                        States business by a foreign person 
                        that--
                                  (I) is--
                                          (aa) a national or a 
                                        government of, or a 
                                        foreign entity 
                                        organized under the 
                                        laws of, a country of 
                                        special concern; or
                                          (bb) a foreign 
                                        entity--
                                                  (AA) over 
                                                which control 
                                                is exercised or 
                                                exercisable by 
                                                a national or a 
                                                government of, 
                                                or by a foreign 
                                                entity 
                                                organized under 
                                                the laws of, a 
                                                country of 
                                                special 
                                                concern; or
                                                  (BB) in which 
                                                the government 
                                                of a country of 
                                                special concern 
                                                has a 
                                                substantial 
                                                interest; and
                                  (II) as a result of the 
                                transaction, could obtain---
                                          (aa) sensitive 
                                        personal data, as 
                                        defined by regulations 
                                        prescribed by the 
                                        Committee, of United 
                                        States citizens, if 
                                        such data may be 
                                        exploited in a manner 
                                        that threatens national 
                                        security; or
                                          (bb) influence over 
                                        substantive 
                                        decisionmaking of the 
                                        United States business 
                                        regarding the use, 
                                        development, 
                                        acquisition, or release 
                                        of--
                                                  (AA) 
                                                sensitive 
                                                personal data 
                                                of United 
                                                States 
                                                citizens, as 
                                                described in 
                                                item (aa); or
                                                  (BB) critical 
                                                technologies.
                          (ii) Country of special concern.--For 
                        the purposes of this subparagraph, the 
                        term ``country of special concern'' 
                        means--
                                  (I) any foreign country that 
                                is subject to export 
                                restrictions pursuant to 
                                section 744.21 of title 15, 
                                Code of Federal Regulations;
                                  (II) any country determined 
                                by the Secretary of State to be 
                                a state sponsor of terrorism; 
                                and
                                  (III) any country that--
                                          (aa) is subject to a 
                                        United States arms 
                                        embargo, as specified 
                                        in list D:5 of Country 
                                        Group D in Supplement 
                                        No. 1 to part 740 of 
                                        title 15, Code of 
                                        Federal Regulations; 
                                        and
                                          (bb) is specified in 
                                        regulations prescribed 
                                        by the Committee.
                          (iii) Investment defined.--For the 
                        purposes of this subparagraph, the term 
                        ``investment'' means the acquisition of 
                        an equity interest, including 
                        contingent equity interest, as further 
                        defined in regulations prescribed by 
                        the Committee.
                          (iv) Unaffiliated united states 
                        business defined.--For the purposes of 
                        this subparagraph, with respect to an 
                        investment described under clause (i), 
                        and as further defined in regulations 
                        prescribed by the Committee, the term 
                        ``unaffiliated United States business'' 
                        means a United States business that is 
                        not subject to the same ultimate 
                        ownership of the foreign person 
                        undertaking the investment.
                          (v) Waiver.--The President may waive 
                        any requirement of this subparagraph 
                        upon reporting to the Committees on 
                        Financial Services and Foreign Affairs 
                        of the House of Representatives and the 
                        Committees on Banking, Housing, and 
                        Urban Affairs and Foreign Relations of 
                        the Senate that the waiver is important 
                        to the national interest of the United 
                        States, with a detailed explanation of 
                        the reasons therefor.
                  (D) Exception for air carriers.--Subparagraph 
                (B)(iii) shall not apply to a change in the 
                rights of a person with respect to an 
                investment involving an air carrier, as defined 
                in section 40102(a)(2) of title 49, United 
                States Code, that holds a certificate issued 
                under section 41102 of that title.
                  (E) Transfers of certain assets pursuant to 
                bankruptcy proceedings or other defaults.--The 
                Committee shall prescribe regulations to 
                clarify that the term ``covered transaction'' 
                includes any transaction described in 
                subparagraph (B) or (C) that arises pursuant to 
                a bankruptcy proceeding or other form of 
                default on debt.
          (4) Foreign government-controlled transaction.--The 
        term ``foreign government-controlled transaction'' 
        means any covered transaction that could result in 
        control of a United States business by--
                  (A) a foreign government;
                  (B) a person controlled by or acting on 
                behalf of a foreign government; or
                  (C) a foreign company or entity of a country 
                of special concern (as defined under paragraph 
                (3)(C)(ii)) domiciled or having its principal 
                place of business in a county of special 
                concern that is a non-market economy, except to 
                the extent the Committee promulgates 
                regulations exempting any such company, entity, 
                or country from this presumption.
          (5) Clarification.--The term ``national security'' 
        shall be construed so as to include those issues 
        relating to ``homeland security'', including its 
        application to critical infrastructure.
          (6) Critical infrastructure.--The term ``critical 
        infrastructure'' means, subject to rules issued under 
        this section, systems and assets, whether physical or 
        virtual, so vital to the United States that the 
        incapacity or destruction of such systems or assets 
        would have a debilitating impact on national security.
          [(7) Critical technologies.--The term ``critical 
        technologies'' means critical technology, critical 
        components, or critical technology items essential to 
        national defense, identified pursuant to this section, 
        subject to regulations issued at the direction of the 
        President, in accordance with subsection (h).]
          (7) Critical technologies.--The term ``critical 
        technologies'' means--
                  (A) defense articles or defense services 
                covered by the United States Munitions List 
                (USML), which is set forth in the International 
                Traffic in Arms Regulations (ITAR) (22 C.F.R. 
                parts 120-130);
                  (B) those items specified on the Commerce 
                Control List (CCL) set forth in Supplement No. 
                1 to part 774 of the Export Administration 
                Regulations (EAR) (15 C.F.R. parts 730-774) 
                that are controlled pursuant to multilateral 
                regimes (i.e. for reasons of national security, 
                chemical and biological weapons proliferation, 
                nuclear nonproliferation, or missile 
                technology), as well as those that are 
                controlled for reasons of regional stability or 
                surreptitious listening;
                  (C) specially designed and prepared nuclear 
                equipment, parts and components, materials, 
                software, and technology specified in the 
                Assistance to Foreign Atomic Energy Activities 
                regulations (10 C.F.R. part 810), and nuclear 
                facilities, equipment, and material specified 
                in the Export and Import of Nuclear Equipment 
                and Material regulations (10 C.F.R. part 110);
                  (D) select agents and toxins specified in the 
                Select Agents and Toxins regulations (7 C.F.R. 
                part 331, 9 C.F.R. part 121, and 42 C.F.R. part 
                73); and
                  (E) emerging, foundational, or other critical 
                technologies that are controlled pursuant to 
                section 819 of the Foreign Investment Risk 
                Review Modernization Act of 2018.
          (8) Lead agency.--The term ``lead agency'' means the 
        agency, or agencies, designated as the lead agency or 
        agencies pursuant to subsection (k)(5) for the review 
        of a transaction.
          (9) Foreign person.--The term ``foreign person'' 
        means--
                  (A) any foreign national, foreign government, 
                or foreign entity; or
                  (B) any entity over which control is 
                exercised or exercisable by a foreign national, 
                foreign government, or foreign entity.
          (10) Substantial interest.--The term ``substantial 
        interest'' has the meaning given to such term in 
        regulations prescribed by the Committee, but does not 
        include a voting interest of less than ten percent or 
        ownership interests held or acquired solely for the 
        purpose of passive investment.
          (11) United states business.--The term ``United 
        States business'' means any entity, irrespective of the 
        nationality of the persons that control it, engaged in 
        interstate commerce in the United States, but only to 
        the extent of its activities in interstate commerce.
  (b) National Security Reviews and Investigations.--
          (1) National security reviews.--
                  (A) In general.--Upon receiving written 
                notification under subparagraph (C) of any 
                covered transaction, or pursuant to a 
                unilateral notification initiated under 
                subparagraph (D) with respect to any covered 
                transaction, the President, acting through the 
                Committee--
                          (i) shall review the covered 
                        transaction to determine the effects of 
                        the transaction on the national 
                        security of the United States; and
                          (ii) shall consider the factors 
                        specified in subsection (f) for such 
                        purpose, as appropriate.
                  (B) Control by foreign government.--If the 
                Committee determines that the covered 
                transaction is a foreign government-controlled 
                transaction, the Committee shall conduct an 
                investigation of the transaction under 
                paragraph (2).
                  (C) Written notice.--
                          (i) In general.--Any party or parties 
                        to any covered transaction may initiate 
                        a review of the transaction under this 
                        paragraph by submitting a written 
                        notice of the transaction to the 
                        Chairperson of the Committee.
                          (ii) Withdrawal of notice.--No 
                        covered transaction for which a notice 
                        was submitted under clause (i) may be 
                        withdrawn from review, unless a written 
                        request for such withdrawal is 
                        submitted to the Committee by any party 
                        to the transaction and approved by the 
                        Committee.
                          (iii) Continuing discussions.--A 
                        request for withdrawal under clause 
                        (ii) shall not be construed to preclude 
                        any party to the covered transaction 
                        from continuing informal discussions 
                        with the Committee or any member 
                        thereof regarding possible resubmission 
                        for review pursuant to this paragraph.
                          (iv) Inclusion of partnership and 
                        side agreements.--Subject to 
                        regulations prescribed by the 
                        Committee, the Committee may require a 
                        written notice submitted under clause 
                        (i) by a party to a covered transaction 
                        to include a copy of any partnership 
                        agreements, integration agreements, or 
                        other side agreements relating to the 
                        transaction.
                          (v) Declarations with respect to 
                        certain covered transactions.--
                                  (I) Voluntary declarations.--
                                For the purpose of expediting 
                                the review of certain covered 
                                transactions that the Committee 
                                determines are likely to pose 
                                limited risk, the Committee may 
                                prescribe regulations to permit 
                                parties to the transaction to 
                                submit a declaration with basic 
                                information regarding the 
                                transaction, unless the parties 
                                submit a written notice under 
                                clause (i).
                                  (II) Mandatory 
                                declarations.--
                                          (aa) In general.--The 
                                        Committee shall 
                                        prescribe regulations 
                                        to require the parties 
                                        to a covered 
                                        transaction to submit a 
                                        declaration described 
                                        in subclause (I) with 
                                        respect to the 
                                        transaction if the 
                                        transaction involves an 
                                        investment that results 
                                        in the release of 
                                        critical technologies 
                                        by an unaffiliated 
                                        United States business 
                                        (as defined under 
                                        subsection 
                                        (a)(3)(C)(iii)) to a 
                                        foreign person in which 
                                        a foreign government 
                                        has, directly or 
                                        indirectly, a 
                                        substantial interest.
                                          (bb) Submission of 
                                        written notice as an 
                                        alternative.--Parties 
                                        to a covered 
                                        transaction for which a 
                                        declaration is required 
                                        under this clause may 
                                        instead elect to submit 
                                        a written notice under 
                                        clause (i).
                                          (cc) Timing of 
                                        submission.--With 
                                        respect to the 
                                        regulations described 
                                        under subclause (I), 
                                        the Committee may not 
                                        require a declaration 
                                        to be submitted more 
                                        than 30 days in advance 
                                        of the completion of 
                                        the transaction.
                                  (III) Penalties.--The 
                                Committee may impose a penalty 
                                pursuant to subsection 
                                (h)(3)(A) with respect to a 
                                party that fails to comply with 
                                this clause.
                                  (IV) Committee response to 
                                declaration.--
                                          (aa) In general.--
                                        Upon receiving a 
                                        declaration under this 
                                        clause with respect to 
                                        a transaction, the 
                                        Committee may, at its 
                                        discretion--
                                                  (AA) request 
                                                that the 
                                                parties to the 
                                                transaction 
                                                file a written 
                                                notice under 
                                                clause (i), 
                                                provided that 
                                                the Committee 
                                                includes an 
                                                explanation of 
                                                the reasons for 
                                                the request;
                                                  (BB) inform 
                                                the parties to 
                                                the transaction 
                                                that the 
                                                Committee is 
                                                not able to 
                                                complete action 
                                                under this 
                                                section with 
                                                respect to the 
                                                transaction on 
                                                the basis of 
                                                the declaration 
                                                and that the 
                                                parties may 
                                                file a written 
                                                notice under 
                                                clause (i) to 
                                                seek written 
                                                notification 
                                                from the 
                                                Committee that 
                                                the Committee 
                                                has completed 
                                                all action 
                                                under this 
                                                section with 
                                                respect to the 
                                                transaction;
                                                  (CC) initiate 
                                                a unilateral 
                                                review of the 
                                                transaction 
                                                under 
                                                subparagraph 
                                                (D); or
                                                  (DD) notify 
                                                the parties in 
                                                writing that 
                                                the Committee 
                                                has completed 
                                                all action 
                                                under this 
                                                section with 
                                                respect to the 
                                                transaction.
                                          (bb) Timing.--The 
                                        Committee shall take 
                                        action under item (aa) 
                                        within 15 days of 
                                        receiving a declaration 
                                        under this clause.
                                          (cc) Refiling of 
                                        declaration.--The 
                                        Committee may not 
                                        request or recommend 
                                        that a declaration be 
                                        withdrawn and refiled, 
                                        except to permit 
                                        parties to a 
                                        transaction to correct 
                                        material errors or 
                                        omissions.
                                  (V) Regulations.--In 
                                prescribing regulations 
                                establishing requirements for 
                                declarations submitted under 
                                this clause, the Committee 
                                shall ensure that such 
                                declarations are submitted as 
                                abbreviated notifications that 
                                do not generally exceed 5 pages 
                                in length.
                                  (VI) Investment defined.--For 
                                the purposes of this clause, 
                                the term ``investment'' means 
                                the acquisition of an equity 
                                interest, including contingent 
                                equity interest, as further 
                                defined in regulations 
                                prescribed by the Committee.
                          (vi) Stipulations regarding 
                        transactions.--
                                  (I) In general.--In a written 
                                notice submitted under clause 
                                (i) or a declaration submitted 
                                under clause (v) with respect 
                                to a transaction, a party to 
                                the transaction may--
                                          (aa) stipulate that 
                                        the transaction is a 
                                        covered transaction; 
                                        and
                                          (bb) if the party 
                                        stipulates that the 
                                        transaction is a 
                                        covered transaction 
                                        under item (aa), 
                                        stipulate that the 
                                        transaction is a 
                                        foreign government-
                                        controlled transaction.
                                  (II) Basis for stipulation.--
                                A written notice submitted 
                                under clause (i) or a 
                                declaration submitted under 
                                clause (v) that includes a 
                                stipulation under subclause (I) 
                                shall include a description of 
                                the basis for the stipulation.
                  (D) Unilateral initiation of review.--Subject 
                to subparagraph (F), the President or the 
                Committee may initiate a review under 
                subparagraph (A) of--
                          (i) any covered transaction;
                          (ii) any covered transaction that has 
                        previously been reviewed or 
                        investigated under this section, if any 
                        party to the transaction submitted 
                        false or misleading material 
                        information to the Committee in 
                        connection with the review or 
                        investigation or omitted material 
                        information, including material 
                        documents, from information submitted 
                        to the Committee; or
                          (iii) any covered transaction that 
                        has previously been reviewed or 
                        investigated under this section, if--
                                  (I) any party to the 
                                transaction or the entity 
                                resulting from consummation of 
                                the transaction intentionally 
                                materially breaches a 
                                mitigation agreement or 
                                condition described in 
                                subsection (l)(1)(A);
                                  (II) such breach is certified 
                                to the Committee by the lead 
                                department or agency monitoring 
                                and enforcing such agreement or 
                                condition as an intentional 
                                material breach; and
                                  (III) the Committee 
                                determines that there are no 
                                other remedies or enforcement 
                                tools available to address such 
                                breach.
                  (E) Timing.--Any review under this paragraph 
                shall be completed before the end of the 30-day 
                period beginning on the date of the acceptance 
                of written notice under subparagraph (C) by the 
                chairperson, or beginning on the date of the 
                initiation of the review in accordance with 
                subparagraph (D), as applicable.
                  (F) Limit on delegation of certain 
                authority.--The authority of the Committee to 
                initiate a review under subparagraph (D) may 
                not be delegated to any person, other than the 
                Deputy Secretary or an appropriate Under 
                Secretary of the department or agency 
                represented on the Committee.
          (2) National security investigations.--
                  (A) In general.--In each case described in 
                subparagraph (B), the Committee shall 
                immediately conduct an investigation of the 
                effects of a covered transaction on the 
                national security of the United States, and 
                take any necessary actions in connection with 
                the transaction to protect the national 
                security of the United States.
                  (B) Applicability.--Subparagraph (A) shall 
                apply in each case in which--
                          (i) a review of a covered transaction 
                        under paragraph (1) results in a 
                        determination that--
                                  (I) the transaction threatens 
                                to impair the national security 
                                of the United States and that 
                                threat has not been mitigated 
                                during or prior to the review 
                                of a covered transaction under 
                                paragraph (1);
                                  (II) the transaction is a 
                                foreign government-controlled 
                                transaction; or
                                  (III) the transaction would 
                                result in control of any 
                                critical infrastructure of or 
                                within the United States by or 
                                on behalf of any foreign 
                                person, if the Committee 
                                determines that the transaction 
                                could impair national security, 
                                and that such impairment to 
                                national security has not been 
                                mitigated by assurances 
                                provided or renewed with the 
                                approval of the Committee, as 
                                described in subsection (l), 
                                during the review period under 
                                paragraph (1); or
                          (ii) the lead agency recommends, and 
                        the Committee concurs, that an 
                        investigation be undertaken.
                  [(C) Timing.--Any investigation under 
                subparagraph (A) shall be completed before the 
                end of the 45-day period beginning on the date 
                on which the investigation commenced.]
                  (C) Timing.--
                          (i) In general.--Except as provided 
                        in clause (ii), any investigation under 
                        subparagraph (A) shall be completed 
                        before the end of the 45-day period 
                        beginning on the date on which the 
                        investigation commenced.
                          (ii) Extension for extraordinary 
                        circumstances.--
                                  (I) In general.--In 
                                extraordinary circumstances (as 
                                defined by the Committee in 
                                regulations), the chairperson 
                                may, at the request of the head 
                                of the lead agency, extend an 
                                investigation under 
                                subparagraph (A) for not more 
                                than one 15-day period.
                                  (II) Nondelegation.--The 
                                authority of the chairperson 
                                and the head of the lead agency 
                                referred to in subclause (I) 
                                may not be delegated to any 
                                person other than the Deputy 
                                Secretary of the Treasury or 
                                the deputy head (or equivalent 
                                thereof) of the lead agency, as 
                                the case may be.
                                  (III) Notification to 
                                parties.--If the Committee 
                                extends the deadline under 
                                subclause (I) with respect to a 
                                covered transaction, the 
                                Committee shall notify the 
                                parties to the transaction of 
                                the extension.
                  (D) Exception.--
                          (i) In general.--Notwithstanding 
                        subparagraph (B)(i), an investigation 
                        of a foreign government-controlled 
                        transaction described in subclause (II) 
                        of subparagraph (B)(i) or a transaction 
                        involving critical infrastructure 
                        described in subclause (III) of 
                        subparagraph (B)(i) shall not be 
                        required under this paragraph, if the 
                        Secretary of the Treasury and the head 
                        of the lead agency jointly determine, 
                        on the basis of the review of the 
                        transaction under paragraph (1), that 
                        the transaction will not impair the 
                        national security of the United States.
                          (ii) Nondelegation.--The authority of 
                        the Secretary or the head of an agency 
                        referred to in clause (i) may not be 
                        delegated to any person, other than the 
                        Deputy Secretary of the Treasury or the 
                        deputy head (or the equivalent thereof) 
                        of the lead agency, respectively.
                  (E) Guidance on certain transactions with 
                national security implications.--The 
                Chairperson shall, not later than 180 days 
                after the effective date of the Foreign 
                Investment and National Security Act of 2007, 
                publish in the Federal Register guidance on the 
                types of transactions that the Committee has 
                reviewed and that have presented national 
                security considerations, including transactions 
                that may constitute covered transactions that 
                would result in control of critical 
                infrastructure relating to United States 
                national security by a foreign government or an 
                entity controlled by or acting on behalf of a 
                foreign government.
          (3) Certifications to congress.--
                  (A) Certified notice at completion of 
                review.--Upon completion of a review under 
                subsection (b) that concludes action under this 
                section, the chairperson and the head of the 
                lead agency shall transmit a certified notice 
                to the members of Congress specified in 
                subparagraph (C)(iii).
                  (B) Certified report at completion of 
                investigation.--As soon as is practicable after 
                completion of an investigation under subsection 
                (b) that concludes action under this section, 
                the chairperson and the head of the lead agency 
                shall transmit to the members of Congress 
                specified in subparagraph (C)(iii) a certified 
                written report (consistent with the 
                requirements of subsection (c)) on the results 
                of the investigation, unless the matter under 
                investigation has been sent to the President 
                for decision.
                  (C) Certification procedures.--
                          (i) In general.--Each certified 
                        notice and report required under 
                        subparagraphs (A) and (B), 
                        respectively, shall be submitted to the 
                        members of Congress specified in clause 
                        (iii), and shall include--
                                  (I) a description of the 
                                actions taken by the Committee 
                                with respect to the 
                                transaction; and
                                  [(II) identification of the 
                                determinative factors 
                                considered under subsection 
                                (f).]
                                  (II) a certification that all 
                                relevant national security 
                                factors, including factors 
                                enumerated in subsection (f), 
                                have received full 
                                consideration.
                          (ii) Content of certification.--Each 
                        certified notice and report required 
                        under subparagraphs (A) and (B), 
                        respectively, shall be signed by the 
                        chairperson and the head of the lead 
                        agency, and shall state that, in the 
                        determination of the Committee, there 
                        are no unresolved national security 
                        concerns with the transaction that is 
                        the subject of the notice or report.
                          (iii) Members of congress.--Each 
                        certified notice and report required 
                        under subparagraphs (A) and (B), 
                        respectively, shall be transmitted--
                                  (I) to the Majority Leader 
                                and the Minority Leader of the 
                                Senate;
                                  (II) to the chair and ranking 
                                member of the Committee on 
                                Banking, Housing, and Urban 
                                Affairs of the Senate and of 
                                any committee of the Senate 
                                having oversight over the lead 
                                agency;
                                  (III) to the Speaker and the 
                                Minority Leader of the House of 
                                Representatives;
                                  (IV) to the chair and ranking 
                                member of the Committee on 
                                Financial Services of the House 
                                of Representatives and of any 
                                committee of the House of 
                                Representatives having 
                                oversight over the lead agency; 
                                and
                                  (V) with respect to covered 
                                transactions involving critical 
                                infrastructure, to the members 
                                of the Senate from the State in 
                                which the principal place of 
                                business of the acquired United 
                                States person is located, and 
                                the member from the 
                                Congressional District in which 
                                such principal place of 
                                business is located.
                          (iv) Signatures; limit on 
                        delegation.--
                                  (I) In general.--Each 
                                certified notice and report 
                                required under subparagraphs 
                                (A) and (B), respectively, 
                                shall be signed by the 
                                chairperson and the head of the 
                                lead agency, which signature 
                                requirement may only be 
                                delegated in accordance with 
                                subclause (II).
                                  (II) Limitation on delegation 
                                of certifications.--The 
                                chairperson and the head of the 
                                lead agency may delegate the 
                                signature requirement under 
                                subclause (I)--
                                          (aa) only to an 
                                        appropriate employee of 
                                        the Department of the 
                                        Treasury (in the case 
                                        of the Secretary of the 
                                        Treasury) or to an 
                                        appropriate employee of 
                                        the lead agency (in the 
                                        case of the lead 
                                        agency) who was 
                                        appointed by the 
                                        President, by and with 
                                        the advice and consent 
                                        of the Senate, with 
                                        respect to any notice 
                                        provided under 
                                        paragraph (1) following 
                                        the completion of a 
                                        review under this 
                                        section; or
                                          (bb) only to a Deputy 
                                        Secretary of the 
                                        Treasury (in the case 
                                        of the Secretary of the 
                                        Treasury) or a person 
                                        serving in the Deputy 
                                        position or the 
                                        equivalent thereof at 
                                        the lead agency (in the 
                                        case of the lead 
                                        agency), with respect 
                                        to any report provided 
                                        under subparagraph (B) 
                                        following an 
                                        investigation under 
                                        this section.
                          (v) Authority to consolidate 
                        documents.--Instead of transmitting a 
                        separate certified notice or certified 
                        report under subparagraph (A) or (B) 
                        with respect to each covered 
                        transaction, the Committee may, on a 
                        monthly basis, transmit such notices 
                        and reports in a consolidated document 
                        to the Members of Congress specified in 
                        clause (iii).
          (4) Analysis by director of national intelligence.--
                  [(A) In general.--The Director of National 
                Intelligence shall expeditiously carry out a 
                thorough analysis of any threat to the national 
                security of the United States posed by any 
                covered transaction. The Director of National 
                Intelligence shall also seek and incorporate 
                the views of all affected or appropriate 
                intelligence agencies with respect to the 
                transaction.]
                  (A) Analysis required.--
                          (i) In general.--The Director of 
                        National Intelligence shall 
                        expeditiously carry out a thorough 
                        analysis of any threat to the national 
                        security of the United States posed by 
                        any covered transaction, which shall 
                        include the identification of any 
                        recognized gaps in the collection of 
                        intelligence relevant to the analysis.
                          (ii) Views of intelligence 
                        agencies.--The Director shall seek and 
                        incorporate into the analysis required 
                        by clause (i) the views of all affected 
                        or appropriate intelligence agencies 
                        with respect to the transaction.
                          (iii) Updates.--At the request of the 
                        lead agency, the Director shall update 
                        the analysis conducted under clause (i) 
                        with respect to a covered transaction 
                        with respect to which an agreement was 
                        entered into under subsection 
                        (l)(3)(A).
                          (iv) Independence and objectivity.--
                        The Committee shall ensure that its 
                        processes under this section preserve 
                        the ability of the Director to conduct 
                        an analysis under clause (i) that is 
                        independent, objective, and consistent 
                        with all applicable directives, 
                        policies, and analytic tradecraft 
                        standards of the intelligence 
                        community.
                  (B) Basic threat information.--
                          (i) In general.--The Director of 
                        National Intelligence may provide the 
                        Committee with basic information 
                        regarding any threat to the national 
                        security of the United States posed by 
                        a covered transaction described in 
                        clause (ii) instead of conducting the 
                        analysis required by subparagraph (A).
                          (ii) Covered transaction described.--
                        A covered transaction is described in 
                        this clause if--
                                  (I) the transaction is 
                                described in subsection 
                                (a)(3)(B)(ii);
                                  (II) the Director of National 
                                Intelligence has completed an 
                                analysis pursuant to 
                                subparagraph (A) involving each 
                                foreign person that is a party 
                                to the transaction during the 
                                12 months preceding the review 
                                or investigation of the 
                                transaction under this section; 
                                or
                                  (III) the transaction 
                                otherwise meets criteria agreed 
                                upon by the Committee and the 
                                Director of National 
                                Intelligence for purposes of 
                                this subparagraph.
                  [(B)] (C) Timing.--The analysis required 
                under subparagraph (A) shall be provided by the 
                Director of National Intelligence to the 
                Committee not later than 20 days after the date 
                on which notice of the transaction is accepted 
                by the Committee under paragraph (1)(C), but 
                such analysis may be supplemented or amended, 
                as the Director considers necessary or 
                appropriate, or upon a request for additional 
                information by the Committee. The Director may 
                begin the analysis at any time prior to 
                acceptance of the notice, in accordance with 
                otherwise applicable law.
                  [(C)] (D) Interaction with intelligence 
                community.--The Director of National 
                Intelligence shall ensure that the intelligence 
                community remains engaged in the collection, 
                analysis, and dissemination to the Committee of 
                any additional relevant information that may 
                become available during the course of any 
                investigation conducted under subsection (b) 
                with respect to a transaction.
                  [(D)] (E) Independent role of director.--The 
                Director of National Intelligence shall be a 
                nonvoting, ex officio member of the Committee, 
                and shall be provided with all notices received 
                by the Committee under paragraph (1)(C) 
                regarding covered transactions, but shall serve 
                no policy role on the Committee, other than to 
                provide analysis under subparagraphs (A) and 
                (C) in connection with a covered transaction.
                  (F) Assessment of operational impact.--The 
                Director may provide to the Committee an 
                assessment, separate from the analyses under 
                subparagraphs (A) and (B), of any operational 
                impact of a covered transaction on the 
                intelligence community and a description of any 
                actions that have been or will be taken to 
                mitigate any such impact.
                  (G) Submission to congress.--The Committee 
                shall include the analysis required by 
                subparagraph (A) with respect to a covered 
                transaction in the report required under 
                subsection (m)(1), subject to the requirements 
                of subsection (m)(5).
          (5) Submission of additional information.--No 
        provision of this subsection shall be construed as 
        prohibiting any party to a covered transaction from 
        submitting additional information concerning the 
        transaction, including any proposed restructuring of 
        the transaction or any modifications to any agreements 
        in connection with the transaction, while any review or 
        investigation of the transaction is ongoing.
          (6) Notice of results to parties.--The Committee 
        shall notify the parties to a covered transaction of 
        the results of a review or investigation under this 
        section, promptly upon completion of all action under 
        this section.
          (7) Regulations.--Regulations prescribed under this 
        section shall include standard procedures for--
                  (A) submitting any notice of a covered 
                transaction to the Committee;
                  (B) submitting a request to withdraw a 
                covered transaction from review;
                  (C) resubmitting a notice of a covered 
                transaction that was previously withdrawn from 
                review; and
                  (D) providing notice of the results of a 
                review or investigation to the parties to the 
                covered transaction, upon completion of all 
                action under this section.
          (8) Tolling of deadlines during lapse in 
        appropriations.--Any deadline or time limitation under 
        this subsection shall be tolled during a lapse in 
        appropriations.
  (c) Confidentiality of Information.--[Any information]
          (1) In general._Any information  or documentary 
        material filed with the President or the President's 
        designee pursuant to this section shall be exempt from 
        disclosure under section 552 of title 5, United States 
        Code, and no such information or documentary material 
        may be made public, except as may be relevant to any 
        administrative or judicial action or proceeding. 
        Nothing in this subsection shall be construed to 
        prevent disclosure to either House of Congress or to 
        any duly authorized committee or subcommittee of the 
        Congress.
          (2) Exception.--Paragraph (1) shall not prohibit the 
        disclosure of information or documentary material that 
        the party filing such information or material consented 
        to be disclosed to third parties.
  (d) Action by the President.--
          (1) In general.--Subject to paragraph (4), the 
        President may take such action for such time as the 
        President considers appropriate to suspend or prohibit 
        any covered transaction that threatens to impair the 
        national security of the United States.
          (2) Announcement by the president.--The President 
        shall announce the decision on whether or not to take 
        action pursuant to paragraph (1) [not later than 15 
        days after the date on which an investigation described 
        in subsection (b) is completed.] with respect to a 
        covered transaction not later than 15 days after the 
        earlier of--
                  (A) the date on which the investigation of 
                the transaction under subsection (b) is 
                completed; or 
                  (B) the date on which the Committee otherwise 
                refers the transaction to the President under 
                subsection (l)(4). 
          (3) Enforcement.--The President may direct the 
        Attorney General of the United States to seek 
        appropriate relief, including divestment relief, in the 
        district courts of the United States, in order to 
        implement and enforce this subsection.
          (4) Findings of the president.--The President may 
        exercise the authority conferred by paragraph (1), only 
        if the President finds that--
                  (A) there is credible evidence that leads the 
                President to believe that [the foreign interest 
                exercising control] a foreign person that would 
                acquire an interest in a United States business 
                or its assets as a result of the covered 
                transaction might take action that threatens to 
                impair the national security; and
                  (B) provisions of law, other than this 
                section and the International Emergency 
                Economic Powers Act, do not, in the judgment of 
                the President, provide adequate and appropriate 
                authority for the President to protect the 
                national security in the matter before the 
                President.
          (5) Factors to be considered.--For purposes of 
        determining whether to take action under paragraph (1), 
        the President shall consider, among other factors each 
        of the factors described in subsection (f), as 
        appropriate.
  (e) Actions and Findings Nonreviewable.--The actions of the 
President under paragraph (1) of subsection (d) and the 
findings of the President under paragraph (4) of subsection (d) 
shall not be subject to judicial review.
  (f) Factors To Be Considered.--For purposes of this section, 
the President or the President's designee may, taking into 
account the requirements of national security, consider--
          (1) domestic production needed for projected national 
        defense requirements,
          (2) the capability and capacity of domestic 
        industries to meet national defense requirements, 
        including the availability of human resources, 
        products, technology, materials, and other supplies and 
        services,
          (3) the control of domestic industries and commercial 
        activity by foreign citizens as it affects the 
        capability and capacity of the United States to meet 
        the requirements of national security[,], including the 
        availability of human resources, products, technology, 
        materials, and other supplies and services;
          (4) the potential effects of the [proposed or 
        pending] transaction on sales of military goods, 
        equipment, or technology to any country--
                  (A) identified by the Secretary of State--
                          (i) under section 6(j) of the Export 
                        Administration Act of 1979, as a 
                        country that supports terrorism;
                          (ii) under section 6(l) of the Export 
                        Administration Act of 1979, as a 
                        country of concern regarding missile 
                        proliferation; or
                          (iii) under section 6(m) of the 
                        Export Administration Act of 1979, as a 
                        country of concern regarding the 
                        proliferation of chemical and 
                        biological weapons;
                  (B) identified by the Secretary of Defense as 
                posing a potential regional military threat to 
                the interests of the United States; or
                  (C) listed under section 309(c) of the 
                Nuclear Non-Proliferation Act of 1978 on the 
                ``Nuclear Non-Proliferation-Special Country 
                List'' (15 C.F.R. Part 778, Supplement No. 4) 
                or any successor list;
          [(5) the potential effects of the proposed or pending 
        transaction on United States international 
        technological leadership in areas affecting United 
        States national security;
          [(6)] (5) the potential national security-related 
        effects on United States critical infrastructure, 
        including major energy assets;
          [(7)] (6) the potential national security-related 
        effects on United States critical technologies;
          [(8)] (7) whether the covered transaction is a 
        foreign government-controlled transaction, as 
        determined under subsection (b)(1)(B);
          [(9)] (8) as appropriate, and particularly with 
        respect to transactions requiring an investigation 
        under subsection (b)(1)(B), a review of the current 
        assessment of--
                  (A) the adherence of the subject country to 
                nonproliferation control regimes, including 
                treaties and multilateral supply guidelines, 
                which shall draw on, but not be limited to, the 
                annual report on ``Adherence to and Compliance 
                with Arms Control, Nonproliferation and 
                Disarmament Agreements and Commitments'' 
                required by section 403 of the Arms Control and 
                Disarmament Act;
                  (B) the relationship of such country with the 
                United States, specifically on its record on 
                cooperating in counter-terrorism efforts, which 
                shall draw on, but not be limited to, the 
                report of the President to Congress under 
                section 7120 of the Intelligence Reform and 
                Terrorism Prevention Act of 2004; and
                  (C) the potential for transshipment or 
                diversion of technologies with military 
                applications, including an analysis of national 
                export control laws and regulations;
          [(10)] (9) the long-term projection of United States 
        requirements for sources of energy and other critical 
        resources and material; [and]
          (10) the degree to which the covered transaction is 
        likely to threaten the ability of the United States 
        Government to acquire or maintain the equipment and 
        systems that are necessary for defense, intelligence, 
        or other national security functions;
          (11) the potential national security-related effects 
        of the cumulative control of any one type of critical 
        infrastructure, energy asset, material, or critical 
        technology by a foreign person;
          (12) whether any foreign person that would acquire 
        control of a United States business as a result of the 
        covered transaction has a history of--
                  (A) complying with United States laws and 
                regulations and prior adherence, if applicable, 
                to any agreement or condition, as described 
                under (l)(1)(A); and
                  (B) adhering to contracts or other agreements 
                with entities of the United States Government;
          (13) the extent to which the covered transaction is 
        likely to release, either directly or indirectly, 
        sensitive personal data of United States citizens to a 
        foreign person that may exploit that information in a 
        manner that threatens national security;
          (14) whether the covered transaction is likely to 
        exacerbate cybersecurity vulnerabilities or is likely 
        to result in a foreign government gaining a significant 
        new capability to engage in malicious cyber-enabled 
        activities against the United States, including such 
        activities designed to affect the outcome of any 
        election for Federal office;
          (15) whether the covered transaction is likely to 
        expose any information regarding sensitive national 
        security matters or sensitive procedures or operations 
        of a Federal law enforcement agency with national 
        security responsibilities to a foreign person not 
        authorized to receive that information; and
          [(11)] (16) such other factors as the President or 
        the Committee may determine to be appropriate, 
        generally or in connection with a specific review or 
        investigation.
For purposes of this subsection, the phrase ``the availability 
of human resources'' shall be construed to consider potential 
losses of such availability resulting from reductions in the 
employment of United States persons whose knowledge or skills 
are critical to national security, including the continued 
production in the United States of items that are likely to be 
acquired by the Department of Defense or other Federal 
departments or agencies for the advancement of the national 
security of the United States.
  (g) Additional Information to Congress; Confidentiality.--
          (1) Briefing requirement on request.--The Committee 
        shall, upon request from any Member of Congress 
        specified in subsection (b)(3)(C)(iii), promptly 
        provide briefings on a covered transaction for which 
        all action has concluded under this section, or on 
        compliance with a mitigation agreement or condition 
        imposed with respect to such transaction, on a 
        classified basis, if deemed necessary by the 
        sensitivity of the information. Briefings under this 
        paragraph may be provided to the congressional staff of 
        such a Member of Congress having appropriate security 
        clearance.
          (2) Application of confidentiality provisions.--
                  (A) In general.--The disclosure of 
                information under this subsection shall be 
                consistent with the requirements of subsection 
                (c). Members of Congress and staff of either 
                House of Congress or any committee of Congress, 
                shall be subject to the same limitations on 
                disclosure of information as are applicable 
                under subsection (c).
                  (B) Proprietary information.--Proprietary 
                information which can be associated with a 
                particular party to a covered transaction shall 
                be furnished in accordance with subparagraph 
                (A) only to a committee of Congress, and only 
                when the committee provides assurances of 
                confidentiality, unless such party otherwise 
                consents in writing to such disclosure.
  (h) Regulations.--
          (1) In general.--The President shall direct, subject 
        to notice and comment, the issuance of regulations to 
        carry out this section.
          (2) Effective date.--Regulations issued under this 
        section shall become effective not later than 180 days 
        after the effective date of the Foreign Investment and 
        National Security Act of 2007.
          (3) Content.--Regulations issued under this 
        subsection shall--
                  (A) provide for the imposition of civil 
                penalties for any violation of this section, 
                [including any mitigation agreement entered 
                into or conditions imposed pursuant to 
                subsection (l)] including any mitigation 
                agreement entered into, conditions imposed, or 
                order issued pursuant to this section;
                  (B) to the extent possible--
                          (i) minimize paperwork burdens; and
                          (ii) coordinate reporting 
                        requirements under this section with 
                        reporting requirements under any other 
                        provision of Federal law; [and]
                  (C) provide for an appropriate role for the 
                Secretary of Labor with respect to mitigation 
                agreements[.]; and
                  (D) provide that in connection with any 
                national security review or investigation of a 
                covered transaction conducted by the Committee, 
                the Committee should--
                          (i) consider the factors described in 
                        paragraphs (2) and (3) of subsection 
                        (f); and
                          (ii) as appropriate, require parties 
                        to provide the information necessary to 
                        consider such factors.
  (i) Effect on Other Law.--No provision of this section shall 
be construed as altering or affecting any other authority, 
process, regulation, investigation, enforcement measure, or 
review provided by or established under any other provision of 
Federal law, including the International Emergency Economic 
Powers Act, or any other authority of the President or the 
Congress under the Constitution of the United States.
  (j) Technology Risk Assessments.--In any case in which an 
assessment of the risk of diversion of defense critical 
technology is performed by a designee of the President, a copy 
of such assessment shall be provided to any other designee of 
the President responsible for reviewing or investigating a 
merger, acquisition, or takeover under this section.
  (k) Committee on Foreign Investment in the United States.--
          (1) Establishment.--The Committee on Foreign 
        Investment in the United States, established pursuant 
        to Executive Order No. 11858, shall be a multi agency 
        committee to carry out this section and such other 
        assignments as the President may designate.
          (2) Membership.--The Committee shall be comprised of 
        the following members or the designee of any such 
        member:
                  (A) The Secretary of the Treasury.
                  (B) The Secretary of Homeland Security.
                  (C) The Secretary of Commerce.
                  (D) The Secretary of Defense.
                  (E) The Secretary of State.
                  (F) The Attorney General of the United 
                States.
                  (G) The Secretary of Energy.
                  (H) The Secretary of Labor (nonvoting, ex 
                officio).
                  (I) The Director of National Intelligence 
                (nonvoting, ex officio).
                  (J) The heads of any other executive 
                department, agency, or office, as the President 
                determines appropriate, generally or on a case-
                by-case basis.
          (3) Chairperson.--The Secretary of the Treasury shall 
        serve as the chairperson of the Committee.
          (4) Assistant secretary for the department of the 
        treasury.--There shall be established an additional 
        position of Assistant Secretary of the Treasury, who 
        shall be appointed by the President, by and with the 
        advice and consent of the Senate. The Assistant 
        Secretary appointed under this paragraph shall report 
        directly to the Undersecretary of the Treasury for 
        International Affairs. The duties of the Assistant 
        Secretary shall include duties related to the Committee 
        on Foreign Investment in the United States, as 
        delegated by the Secretary of the Treasury under this 
        section.
          (5) Designation of lead agency.--The Secretary of the 
        Treasury shall designate, as appropriate, a member or 
        members of the Committee to be the lead agency or 
        agencies on behalf of the Committee--
                  (A) for each covered transaction, and for 
                negotiating any mitigation agreements or other 
                conditions necessary to protect national 
                security; and
                  (B) for all matters related to the monitoring 
                of the completed transaction, to ensure 
                compliance with such agreements or conditions 
                and with this section.
          (6) Other members.--The chairperson shall consult 
        with the heads of such other Federal departments, 
        agencies, and independent establishments in any review 
        or investigation under subsection (a), as the 
        chairperson determines to be appropriate, on the basis 
        of the facts and circumstances of the covered 
        transaction under review or investigation (or the 
        designee of any such department or agency head).
          (7) Meetings.--The Committee shall meet upon the 
        direction of the President or upon the call of the 
        chairperson, without regard to section 552b of title 5, 
        United States Code (if otherwise applicable).
  (l) Mitigation, Tracking, and Postconsummation Monitoring and 
Enforcement.--
          (1) Mitigation.--
                  (A)  [In general] Agreements and 
                conditions.--[The Committee]
                          (i) In general._The Committee  or a 
                        lead agency may, on behalf of the 
                        Committee, negotiate, enter into or 
                        impose, and enforce any agreement or 
                        condition with any party to the covered 
                        transaction in order to mitigate any 
                        threat to the national security of the 
                        United States that arises as a result 
                        of the covered transaction.
                          (ii) Abandonment of transactions.--If 
                        a party to a covered transaction has 
                        voluntarily chosen to abandon the 
                        transaction, the Committee or lead 
                        agency, as the case may be, may 
                        negotiate, enter into or impose, and 
                        enforce any agreement or condition with 
                        any party to the covered transaction 
                        for purposes of effectuating such 
                        abandonment and mitigating any threat 
                        to the national security of the United 
                        States that arises as a result of the 
                        covered transaction.
                          (iii) Agreements and conditions 
                        relating to completed transactions.--
                        The Committee or lead agency, as the 
                        case may be, may negotiate, enter into 
                        or impose, and enforce any agreement or 
                        condition with any party to a completed 
                        covered transaction in order to 
                        mitigate any interim threat to the 
                        national security of the United States 
                        that may arise as a result of the 
                        covered transaction until such time 
                        that the Committee has completed action 
                        pursuant to subsection (b) or the 
                        President has taken action pursuant to 
                        subsection (d) with respect to the 
                        transaction.
                  [(B) Risk-based analysis required.--Any 
                agreement entered into or condition imposed 
                under subparagraph (A) shall be based on a 
                risk-based analysis, conducted by the 
                Committee, of the threat to national security 
                of the covered transaction.]
                  (B) Treatment of outdated agreements or 
                conditions.--The chairperson and the head of 
                any applicable lead agency shall periodically 
                review the appropriateness of an agreement or 
                condition described under subparagraph (A) and 
                terminate, phase out, or otherwise amend any 
                agreement or condition if a threat no longer 
                requires mitigation through the agreement or 
                condition.
                  (C) Limitations.--An agreement may not be 
                entered into or condition imposed under 
                subparagraph (A) with respect to a covered 
                transaction unless the Committee determines 
                that the agreement or condition resolves the 
                national security concerns posed by the 
                transaction, taking into consideration whether 
                the agreement or condition is reasonably 
                calculated to--
                          (i) be effective;
                          (ii) allow for compliance with the 
                        terms of the agreement or condition in 
                        an appropriately verifiable way; and
                          (iii) enable effective monitoring of 
                        compliance with and enforcement of the 
                        terms of the agreement or condition.
                  (D) Jurisdiction.--The provisions of section 
                706(b) shall apply to any mitigation agreement 
                entered into or condition imposed under 
                subparagraph (A).
          (2) Tracking authority for withdrawn notices.--
                  (A) In general.--If any written notice of a 
                covered transaction that was submitted to the 
                Committee under this section is withdrawn 
                before any review or investigation by the 
                Committee under subsection (b) is completed, 
                the Committee shall establish, as appropriate--
                          (i) interim protections to address 
                        specific concerns with such transaction 
                        that have been raised in connection 
                        with any such review or investigation 
                        pending any resubmission of any written 
                        notice under this section with respect 
                        to such transaction and further action 
                        by the President under this section;
                          (ii) specific time frames for 
                        resubmitting any such written notice; 
                        and
                          (iii) a process for tracking any 
                        actions that may be taken by any party 
                        to the transaction, in connection with 
                        the transaction, before the notice 
                        referred to in clause (ii) is 
                        resubmitted.
                  (B) Designation of agency.--The lead agency, 
                other than any entity of the intelligence 
                community (as defined in the National Security 
                Act of 1947), shall, on behalf of the 
                Committee, ensure that the requirements of 
                subparagraph (A) with respect to any covered 
                transaction that is subject to such 
                subparagraph are met.
          (3) Negotiation, modification, monitoring, and 
        enforcement.--
                  (A) Designation of lead agency.--The lead 
                agency shall negotiate, modify, monitor, and 
                enforce, on behalf of the Committee, any 
                agreement entered into or condition imposed 
                under paragraph (1) with respect to a covered 
                transaction, based on the expertise with and 
                knowledge of the issues related to such 
                transaction on the part of the designated 
                department or agency. Nothing in this paragraph 
                shall prohibit other departments or agencies in 
                assisting the lead agency in carrying out the 
                purposes of this paragraph.
                  (B) Reporting by designated agency.--
                          (i) Modification reports.--The lead 
                        agency in connection with any agreement 
                        entered into or condition imposed with 
                        respect to a covered transaction 
                        shall--
                                  (I) provide periodic reports 
                                to the Committee on any 
                                material modification to any 
                                such agreement or condition 
                                imposed with respect to the 
                                transaction; and
                                  (II) ensure that any material 
                                modification to any such 
                                agreement or condition is 
                                reported to the Director of 
                                National Intelligence, the 
                                Attorney General of the United 
                                States, and any other Federal 
                                department or agency that may 
                                have a material interest in 
                                such modification.
                          (ii) Compliance.--The Committee shall 
                        develop and agree upon methods for 
                        evaluating compliance with any 
                        agreement entered into or condition 
                        imposed with respect to a covered 
                        transaction that will allow the 
                        Committee to adequately assure 
                        compliance, without--
                                  (I) unnecessarily diverting 
                                Committee resources from 
                                assessing any new covered 
                                transaction for which a written 
                                notice has been filed pursuant 
                                to subsection (b)(1)(C), and if 
                                necessary, reaching a 
                                mitigation agreement with or 
                                imposing a condition on a party 
                                to such covered transaction or 
                                any covered transaction for 
                                which a review has been 
                                reopened for any reason; or
                                  (II) placing unnecessary 
                                burdens on a party to a covered 
                                transaction.
          (4) Referral to president.--The Committee may, at any 
        time during the review or investigation of a covered 
        transaction under subsection (b), complete the action 
        of the Committee with respect to the transaction and 
        refer the transaction to the President for action 
        pursuant to subsection (d).
          (5) Risk-based analysis required.--
                  (A) In general.--Any determination of the 
                Committee to refer a covered transaction to the 
                President under paragraph (4), to suspend a 
                covered transaction under paragraph (6), or to 
                negotiate, enter into, impose, or enforce any 
                agreement or condition under paragraph (1)(A) 
                with respect to a covered transaction, shall be 
                based on a risk-based analysis, conducted by 
                the Committee, of the effects on the national 
                security of the United States of the covered 
                transaction, which shall include--
                          (i) an assessment of the threat, 
                        vulnerabilities, and consequences to 
                        national security resulting from the 
                        transaction, as these terms are defined 
                        or clarified in guidance and 
                        regulations issued by the Committee; 
                        and
                          (ii) an identification of each 
                        relevant factor described in subsection 
                        (f) that the transaction may 
                        substantially implicate.
                  (B) Compliance plans.--
                          (i) In general.--In the case of a 
                        covered transaction with respect to 
                        which an agreement or condition is 
                        entered into under paragraph (1)(A), 
                        the Committee or lead agency, as the 
                        case may be, shall formulate, adhere 
                        to, and keep updated a plan for 
                        monitoring compliance with the 
                        agreement or condition.
                          (ii) Elements.--Each plan required by 
                        clause (i) with respect to an agreement 
                        or condition entered into under 
                        paragraph (1)(A) shall include an 
                        explanation of--
                                  (I) which member of the 
                                Committee will have primary 
                                responsibility for monitoring 
                                compliance with the agreement 
                                or condition;
                                  (II) how compliance with the 
                                agreement or condition will be 
                                monitored;
                                  (III) how frequently 
                                compliance reviews will be 
                                conducted;
                                  (IV) whether an independent 
                                entity will be utilized under 
                                subparagraph (D) to conduct 
                                compliance reviews; and
                                  (V) what actions will be 
                                taken if the parties fail to 
                                cooperate regarding monitoring 
                                compliance with the agreement 
                                or condition.
                  (C) Effect of lack of compliance.--If, at any 
                time after a mitigation agreement or condition 
                is entered into or imposed under paragraph 
                (1)(A), the Committee or lead agency, as the 
                case may be, determines that a party or parties 
                to the agreement or condition are not in 
                compliance with the terms of the agreement or 
                condition, the Committee or lead agency may, in 
                addition to the authority of the Committee to 
                impose penalties pursuant to subsection 
                (h)(3)(A) and to unilaterally initiate a review 
                of any covered transaction under subsection 
                (b)(1)(D)(iii)(I)--
                          (i) negotiate a plan of action for 
                        the party or parties to remediate the 
                        lack of compliance, with failure to 
                        abide by the plan or otherwise 
                        remediate the lack of compliance 
                        serving as the basis for the Committee 
                        to find a material breach of the 
                        agreement or condition;
                          (ii) require that the party or 
                        parties submit any covered transaction 
                        initiated after the date of the 
                        determination of noncompliance and 
                        before the date that is 5 years after 
                        the date of the determination to the 
                        Committee for review under subsection 
                        (b); or
                          (iii) seek injunctive relief.
                  (D) Use of independent entities to monitor 
                compliance.--If the parties to an agreement or 
                condition entered into under paragraph (1)(A) 
                enter into a contract with an independent 
                entity from outside the United States 
                Government for the purpose of monitoring 
                compliance with the agreement or condition, the 
                Committee shall take such action as is 
                necessary to prevent any significant conflict 
                of interest from arising with respect to the 
                entity and the parties to the transaction.
                  (E) Successors and assigns.--Any agreement or 
                condition entered or imposed under paragraph 
                (1)(A) shall be considered binding on all 
                successors and assigns, unless and until the 
                agreement or condition terminates on its own 
                terms or is otherwise terminated by the 
                Committee in the Committee's sole discretion.
                  (F) Additional compliance measures.--Subject 
                to subparagraphs (A) through (D), the Committee 
                shall develop and agree upon methods for 
                evaluating compliance with any agreement 
                entered into or condition imposed with respect 
                to a covered transaction that will allow the 
                Committee to adequately ensure compliance 
                without unnecessarily diverting Committee 
                resources from assessing any new covered 
                transaction for which a written notice under 
                clause (i) of subsection (b)(1)(C) has been 
                filed or for which a declaration has been 
                submitted under clause (v) of subsection 
                (b)(1)(C), and if necessary, reaching a 
                mitigation agreement with or imposing a 
                condition on a party to such covered 
                transaction or any covered transaction for 
                which a review has been reopened for any 
                reason.
          (6) Suspension of transactions.--The Committee, 
        acting through the chairperson, may suspend a proposed 
        or pending covered transaction that may pose a risk to 
        the national security of the United States for such 
        time as the covered transaction is under review or 
        investigation under subsection (b).
  (m) Annual Report to Congress.--
          (1) In general.--The chairperson shall transmit a 
        report to the chairman and ranking member of the 
        committee of jurisdiction in the Senate and the House 
        of Representatives, before July 31 of each year on all 
        of the reviews and investigations of covered 
        transactions completed under subsection (b) during the 
        12-month period covered by the report.
          (2) Contents of report relating to covered 
        transactions.--The annual report under paragraph (1) 
        shall contain the following information, with respect 
        to each covered transaction, for the reporting period:
                  [(A) A list of all notices filed and all 
                reviews or investigations completed during the 
                period, with basic information on each party to 
                the transaction, the nature of the business 
                activities or products of all pertinent 
                persons, along with information about any 
                withdrawal from the process, and any decision 
                or action by the President under this section.]
                  (A) A list of all notices filed and all 
                reviews or investigations of covered 
                transactions completed during the period, 
                with--
                          (i) a description of the outcome of 
                        each review or investigation, including 
                        whether an agreement was entered into 
                        or condition was imposed under 
                        subsection (l)(3)(A) with respect to 
                        the transaction being reviewed or 
                        investigated, and whether the President 
                        took any action under this section with 
                        respect to that transaction;
                          (ii) the nature of the business 
                        activities or products of the United 
                        States business with which the 
                        transaction was entered into or 
                        intended to be entered into; and
                          (iii) information about any 
                        withdrawal from the process.
                  (B) Specific, cumulative, and, as 
                appropriate, trend information on the numbers 
                of filings, investigations, withdrawals, and 
                decisions or actions by the President under 
                this section.
                  (C) Cumulative and, as appropriate, trend 
                information on the business sectors involved in 
                the filings which have been made, and the 
                countries from which the investments have 
                originated.
                  (D) Information on whether companies that 
                withdrew notices to the Committee in accordance 
                with subsection (b)(1)(C)(ii) have later 
                refiled such notices, or, alternatively, 
                abandoned the transaction.
                  (E) The types of security arrangements and 
                conditions the Committee has used to mitigate 
                national security concerns about a transaction, 
                including a discussion of the methods that the 
                Committee and any lead agency are using to 
                determine compliance with such arrangements or 
                conditions.
                  (F) A detailed discussion of all perceived 
                adverse effects of covered transactions on the 
                national security or critical infrastructure of 
                the United States that the Committee will take 
                into account in its deliberations during the 
                period before delivery of the next report, to 
                the extent possible.
          (3) Contents of report relating to [critical 
        technologies.--]
                  [(A) In general.--In order to assist] 
                critical technologies._In order to assist  
                Congress in its oversight responsibilities with 
                respect to this section, the President and such 
                agencies as the President shall designate shall 
                include in the annual report submitted under 
                paragraph (1)--
                  [(i)] (A) an evaluation of whether there is 
                credible evidence of a coordinated strategy by 
                1 or more countries or companies to acquire 
                United States companies involved in research, 
                development, or production of critical 
                technologies for which the United States is a 
                leading producer; and
                  [(ii)] (B) an evaluation of whether there are 
                industrial espionage activities directed or 
                directly assisted by foreign governments 
                against private United States companies aimed 
                at obtaining commercial secrets related to 
                critical technologies.
                  [(B) Release of unclassified study.--All 
                appropriate portions of the annual report under 
                paragraph (1) may be classified. An 
                unclassified version of the report, as 
                appropriate, consistent with safeguarding 
                national security and privacy, shall be made 
                available to the public.]
          (4) Additional contents of report.--Each annual 
        report required under paragraph (1) shall contain the 
        following additional information:
                  (A) Statistics on compliance reviews 
                conducted and actions taken by the Committee 
                under subsection (l)(6), including subparagraph 
                (D) of that subsection (l)(6), during that 
                period and a description of any actions taken 
                by the Committee to impose penalties or 
                initiate a unilateral review pursuant to 
                subsection (b)(1)(D)(iii)(I).
                  (B) Cumulative and trend information on the 
                number of declarations filed under subsection 
                (b)(1)(C)(v), the actions taken by the 
                Committee in response to declarations, the 
                business sectors involved in the declarations 
                which have been made, and the countries 
                involved in such declarations.
                  (C) The number of new hires made since the 
                preceding report through the authorities 
                described under subsection (q), along with 
                summary statistics, position titles, and 
                associated pay grades for such hires and a 
                summary of such hires' responsibilities in 
                administering this section.
          (5) Classification; availability of report.--
                  (A) Classification.--All appropriate portions 
                of the annual report required by paragraph (1) 
                may be classified.
                  (B) Public availability of unclassified 
                version.--An unclassified version of the report 
                required by paragraph (1), as appropriate and 
                consistent with safeguarding national security 
                and privacy, shall be made available to the 
                public. Information regarding trade secrets or 
                business confidential information may be 
                included in the classified version and may not 
                be made available to the public in the 
                unclassified version.
                  (C) Exceptions to freedom of information 
                act.--The exceptions to subsection (a) of 
                section 552 of title 5, United States Code, 
                provided for under subsection (b) of that 
                section shall apply with respect to the report 
                required by paragraph (1).
  (n) Certification of Notices and Assurances.--[Each notice]
          (1) In general._Each notice, and any followup 
        information, submitted under this section and 
        regulations prescribed under this section to the 
        President or the Committee by a party to a covered 
        transaction, and any information submitted by any such 
        party in connection with any action for which a report 
        is required pursuant to paragraph (3)(B) of subsection 
        (l), with respect to the implementation of any 
        mitigation agreement or condition described in 
        paragraph (1)(A) of subsection (l), or any material 
        change in circumstances, shall be accompanied by a 
        written statement by the chief executive officer or the 
        designee of the person required to submit such notice 
        or information certifying that, to the best of the 
        knowledge and belief of that person--
                  [(1)] (A) the notice or information submitted 
                fully complies with the requirements of this 
                section or such regulation, agreement, or 
                condition; and
                  [(2)] (B) the notice or information is 
                accurate and complete in all material respects.
          (2) Effect of failure to submit.--The Committee may 
        not complete a review under this section of a covered 
        transaction and may recommend to the President that the 
        President suspend or prohibit the transaction or 
        require divestment under subsection (d) if the 
        Committee determines that a party to the transaction 
        has--
                  (A) failed to submit a statement required by 
                paragraph (1); or
                  (B) included false or misleading information 
                in a notice or information described in 
                paragraph (1) or omitted material information 
                from such notice or information.
          (3) Applicability of law on fraud and false 
        statements.--The Committee shall prescribe regulations 
        expressly providing for the application of section 1001 
        of title 18, United States Code, to all information 
        provided to the Committee under this section by any 
        party to a covered transaction.
  (o) Centralization of Certain Committee Functions.--
          (1) In general.--The chairperson, in consultation 
        with the Committee, may centralize certain functions of 
        the Committee within the Department of the Treasury for 
        the purpose of enhancing interagency coordination and 
        collaboration in carrying out the functions of the 
        Committee under this section.
          (2) Rule of construction.--Nothing in this subsection 
        shall be construed as limiting the authority of any 
        department or agency represented on the Committee to 
        represent its own interests before the Committee.
  (p) Unified Budget Request; Annual Spending Plan.--
          (1) Unified budget request.--
                  (A) In general.--The President may include, 
                in the budget of the Department of the Treasury 
                for a fiscal year (as submitted to Congress 
                with the budget of the President under section 
                1105(a) of title 31, United States Code), a 
                unified request for funding of all operations 
                under this section conducted by all of the 
                departments and agencies represented on the 
                Committee.
                  (B) Form of budget request.--A unified 
                request under subparagraph (A) shall be 
                detailed and include the amounts and staffing 
                levels requested for each department or agency 
                represented on the Committee to carry out the 
                functions of that department or agency under 
                this section.
          (2) Annual spending plan.--Not later than 90 days 
        following the date of enactment of this subsection, and 
        annually thereafter, the chairperson of the Committee 
        shall transmit to the Committees on Appropriations and 
        Financial Services of the House of Representatives and 
        the Committees on Appropriations and Banking, Housing, 
        and Urban Affairs of the Senate a detailed spending 
        plan to expeditiously meet the requirements of 
        subsections (b), (l), and (m), including estimated 
        expenditures and staffing levels required by operations 
        of the Committee for not less than the following fiscal 
        year at each of the Committee's member agencies.
          (3) Waiver.--The chairperson may waive the reporting 
        requirement under paragraph (2) with respect to a 
        fiscal year for which a unified budget request 
        described under paragraph (1) has been submitted.
  (q) Special Hiring Authority.--The heads of the departments 
and agencies represented on the Committee may appoint, without 
regard to the provisions of sections 3309 through 3318 of title 
5, United States Code, candidates directly to positions in the 
competitive service (as defined in section 2102 of that title) 
in their respective departments and agencies to administer this 
section.
  (r) Testimony.--
          (1) In general.--After submitting the unified budget 
        request described under subsection (p)(1), or the 
        spending plan described under subsection (p)(2), as the 
        case may be, but not later than March 31 of each year, 
        the chairperson, or the chairperson's designee, shall 
        appear before the Committee on Financial Services of 
        the House of Representatives and present testimony on--
                  (A) anticipated resources necessary for 
                operations of the Committee in the following 
                fiscal year at each of the Committee's member 
                agencies;
                  (B) the adequacy of appropriations for the 
                Committee in the current and the previous 
                fiscal year to--
                          (i) ensure that thorough reviews and 
                        investigations are completed as 
                        expeditiously as possible;
                          (ii) monitor and enforce mitigation 
                        agreements; and
                          (iii) identify covered transactions 
                        for which a notice under clause (i) of 
                        subsection (b)(1)(C) or a declaration 
                        under clause (v) of subsection 
                        (b)(1)(C) was not submitted to the 
                        Committee; and
                  (C) management efforts to strengthen the 
                ability of the Committee to meet the 
                requirements of this section.
          (2) Sunset.--This subsection shall have no force or 
        effect on the date that is five years following the 
        date of enactment of the Foreign Investment Risk Review 
        Modernization Act of 2018.
  (s) Regulatory Certainty for United States Businesses.--With 
respect to mitigating a national security risk that results 
from a foreign person's investment in, or joint venture with, a 
United States business, a member agency of the Committee may 
not prescribe or implement regulations to require divestment 
by, or of, the United States business, unless--
          (1) the regulations are prescribed under this section 
        or pursuant to authorities of the President under the 
        International Emergency Economic Powers Act; or
          (2) the President reports to Congress in writing that 
        the regulations--
                  (A) are, wherever applicable, consistent with 
                regulations prescribed under this section, 
                including any such regulations pertaining to--
                          (i) foreign control or influence over 
                        a United States business;
                          (ii) the identification of emerging, 
                        foundational, or other critical 
                        technologies; and
                          (iii) confidentiality requirements 
                        with respect to information and 
                        documentary material regarding United 
                        States businesses; and
                  (B) in the case of regulations prescribed or 
                finalized following the effective date of this 
                subsection, were prescribed in consultation 
                with the chairperson of the Committee and with 
                the head of any member agency determined by the 
                President to be affected by the regulations.
  (t) Funding.--
          (1) Establishment of fund.--There is established in 
        the Treasury of the United States a fund, to be known 
        as the ``Committee on Foreign Investment in the United 
        States Fund'' (in this subsection referred to as the 
        ``Fund''), to be administered by the chairperson.
          (2) Authorization of appropriations for the 
        committee.--There are authorized to be appropriated to 
        the Fund such sums as may be necessary to perform the 
        functions of the Committee.
          (3) Filing fees.--
                  (A) In general.--The Committee may assess and 
                collect a fee in an amount determined by the 
                Committee in regulations, without regard to 
                section 9701 of title 31, United States Code, 
                and subject to subparagraph (B), with respect 
                to each covered transaction for which a written 
                notice is submitted to the Committee under 
                subsection (b)(1)(C)(i) or a declaration is 
                submitted to the Committee under subsection 
                (b)(1)(C)(v).
                  (B) Determination of amount of fee.--
                          (i) In general.--The amount of the 
                        fee to be assessed under subparagraph 
                        (A) with respect to a covered 
                        transaction--
                                  (I) may not exceed an amount 
                                equal to the lesser of--
                                          (aa) 1 percent of the 
                                        value of the 
                                        transaction; or
                                          (bb) $300,000, as 
                                        such amount is adjusted 
                                        annually for inflation 
                                        pursuant to regulations 
                                        prescribed by the 
                                        Committee; and
                                  (II) shall be determined by 
                                the Committee after taking into 
                                consideration--
                                          (aa) the effect of 
                                        the fee on small 
                                        business concerns (as 
                                        defined in section 3 of 
                                        the Small Business Act 
                                        (15 U.S.C. 632));
                                          (bb) the expenses of 
                                        the Committee 
                                        associated with 
                                        conducting activities 
                                        under this section;
                                          (cc) the effect of 
                                        the fee on foreign 
                                        investment;
                                          (dd) the unified 
                                        budget request or 
                                        annual spending plan, 
                                        as appropriate, 
                                        described in section 
                                        502 of the Foreign 
                                        Investment Risk Review 
                                        Modernization Act of 
                                        2018; and
                                          (ee) such other 
                                        matters as the 
                                        Committee considers 
                                        appropriate.
                          (ii) Updates.--The Committee shall 
                        periodically reconsider and adjust the 
                        amount of the fee to be assessed under 
                        subparagraph (A) with respect to a 
                        covered transaction to ensure that the 
                        amount of the fee remains appropriate.
                  (C) Deposit and availability of fees.--
                Notwithstanding section 3302 of title 31, 
                United States Code, fees collected under 
                subparagraph (A) shall--
                          (i) be deposited into the Fund for 
                        use in carrying out activities under 
                        this section;
                          (ii) to the extent and in the amounts 
                        provided in advance in appropriations 
                        Acts, be available to the chairperson;
                          (iii) remain available until 
                        expended; and
                          (iv) be in addition to any 
                        appropriations made available to the 
                        members of the Committee.
          (4) Transfer of funds.--To the extent provided in 
        advance in appropriations Acts, the chairperson may 
        transfer any amounts in the Fund to any other 
        department or agency represented on the Committee for 
        the purpose of addressing emerging needs in carrying 
        out activities under this section. Amounts so 
        transferred shall be in addition to any other amounts 
        available to that department or agency for that 
        purpose.

           *       *       *       *       *       *       *

                              ----------                              


                   EXPORT ADMINISTRATION ACT OF 1979

                              short title

  [Section 1. This Act may be cited as the ``Export 
Administration Act of 1979''.]

                               [findings

  [Sec. 2. The Congress makes the following findings:
          [(1) The ability of the United States citizens to 
        engage in international commerce is a fundamental 
        concern of United States policy.
          [(2) Exports contribute significantly to the economic 
        well-being of the United States and the stability of 
        the world economy by increasing employment and 
        production in the United States, and by earning foreign 
        exchange, thereby contributing favorably to the trade 
        balance. The restriction of exports from the United 
        States can have serious adverse effects on the balance 
        of payments and on domestic employment, particularly 
        when restrictions applied by the United States are more 
        extensive than those imposed by other countries.
          [(3) It is important for the national interest of the 
        United States that both the private sector and the 
        Federal Government place a high priority on exports, 
        consistent with the economic, security, and foreign 
        policy objectives of the United States.
          [(4) The availability of certain materials at home 
        and abroad varies so that the quantity and composition 
        of United States exports and their distribution among 
        importing countries may affect the welfare of the 
        domestic economy and may have an important bearing upon 
        fulfillment of the foreign policy of the United States.
          [(5) Exports of goods or technology without regard to 
        whether they make a significant contribution to the 
        military potential of individual countries or 
        combinations of countries may adversely affect the 
        national security of the United States.
          [(6) Uncertainty of export control policy can inhibit 
        the efforts of United States business and work to the 
        detriment of the overall attempt to improve the trade 
        balance of the United States.
          [(7) Unreasonable restrictions on access to world 
        supplies can cause worldwide political and economic 
        instability, interfere with free international trade, 
        and retard the growth and development of nations.
          [(8) It is important that the administration of 
        export controls imposed for national security purposes 
        give special emphasis to the need to control exports of 
        technology (and goods which contribute significantly to 
        the transfer of such technology) which could make a 
        significant contribution to the military potential of 
        any country or combination of countries which would be 
        detrimental to the national security of the United 
        States.
          [(9) Minimization of restrictions on exports of 
        agricultural commodities and products is of critical 
        importance to the maintenance of a sound agricultural 
        sector, to a positive contribution to the balance of 
        payments, to reducing the level of Federal expenditures 
        for agricultural support programs, and to United States 
        cooperation in efforts to eliminate malnutrition and 
        world hunger.
          [(10) It is important that the administration of 
        export controls imposed for foreign policy purposes 
        give special emphasis to the need to control exports of 
        goods and substances hazardous to the public health and 
        the environment which are banned or severely restricted 
        for use in the United States, and which, if exported, 
        could affect the international reputation of the United 
        States as a responsible trading partner.
          [(11) Availability to controlled countries of goods 
        and technology from foreign sources is a fundamental 
        concern of the United States and should be eliminated 
        through negotiations and other appropriate means 
        whenever possible.
          [(12) Excessive dependence of the United States, its 
        allies, or countries sharing common strategic 
        objectives with the United States, on energy and other 
        critical resources from potential adversaries can be 
        harmful to the mutual and individual security of all 
        those countries.

                         [declaration of policy

  [Sec. 3. The Congress makes the following declarations:
          [(1) It is the policy of the United States to 
        minimize uncertainties in export control policy and to 
        encourage trade with all countries with which the 
        United States has diplomatic or trading relations, 
        except those countries with which such trade has been 
        determined by the President to be against the national 
        interest.
          [(2) It is the policy of the United States to use 
        export controls only after full consideration of the 
        impact on the economy of the United States and only to 
        the extent necessary--
                  [(A) to restrict the export of goods and 
                technology which would make a significant 
                contribution to the military potential of any 
                other country or combination of countries which 
                would prove detrimental to the national 
                security of the United States;
                  [(B) to restrict the export of goods and 
                technology where necessary to further 
                significantly the foreign policy of the United 
                States or to fulfill its declared international 
                obligations; and
                  [(C) to restrict the export of goods where 
                necessary to protect the domestic economy from 
                the excessive drain of scarce materials and to 
                reduce the serious inflationary impact of 
                foreign demand.
          [(3) It is the policy of the United States (A) to 
        apply any necessary controls to the maximum extent 
        possible in cooperation with all nations, and (B) to 
        encourage observance of a uniform export control policy 
        by all nations with which the United States has defense 
        treaty commitments or common strategic objectives.
          [(4) It is the policy of the United States to use its 
        economic resources and trade potential to further the 
        sound growth and stability of its economy as well as to 
        further its national security and foreign policy 
        objectives.
          [(5) It is the policy of the United States--
                  [(A) to oppose restrictive trade practices or 
                boycotts fostered or imposed by foreign 
                countries against other countries friendly to 
                the United States or against any United States 
                person;
                  [(B) to encourage and, in specified cases, 
                require United States persons engaged in the 
                export of goods or technology or other 
                information to refuse to take actions, 
                including furnishing information or entering 
                into or implementing agreements, which have the 
                effect of furthering or supporting the 
                restrictive trade practices or boycotts 
                fostered or imposed by any foreign country 
                against a country friendly to the United States 
                or against any United States person; and
                  [(C) to foster international cooperation and 
                the development of international rules and 
                institutions to assure reasonable access to 
                world supplies.
          [(6) It is the policy of the United States that the 
        desirability of subjecting, or continuing to subject, 
        particular goods or technology or other information to 
        United States export controls should be subjected to 
        review by and consultation with representatives of 
        appropriate United States Government agencies and 
        private industry.
          [(7) It is the policy of the United States to use 
        export controls, including license fees, to secure the 
        removal by foreign countries of restrictions on access 
        to supplies where such restrictions have or may have a 
        serious domestic inflationary impact, have caused or 
        may cause a serious domestic shortage, or have been 
        imposed for purposes of influencing the foreign policy 
        of the United States. In effecting this policy, the 
        President shall make reasonable and prompt efforts to 
        secure the removal or reduction of such restrictions, 
        policies, or actions through international cooperation 
        and agreement before imposing export controls. No 
        action taken in fulfillment of the policy set forth in 
        this paragraph shall apply to the export of medicine or 
        medical supplies.
          [(8) It is the policy of the United States to use 
        export controls to encourage other countries to take 
        immediate steps to prevent the use of their territories 
        or resources to aid, encourage, or give sanctuary to 
        those persons involved in directing, supporting, or 
        participating in acts of international terrorism. To 
        achieve this objective, the President shall make 
        reasonable and prompt efforts to secure the removal or 
        reduction of such assistance to international 
        terrorists through international cooperation and 
        agreement before imposing export controls.
          [(9) It is the policy of the United States to 
        cooperate with other countries with which the United 
        States has defense treaty commitments or common 
        strategic objectives in restricting the export of goods 
        and technology which would make a significant 
        contribution to the military potential of any country 
        or combination of countries which would prove 
        detrimental to the security of the United States and of 
        those countries with which the United States has 
        defense treaty commitments, or common strategic 
        objectives, and to encourage other friendly countries 
        to cooperate in restricting the sale of goods and 
        technology that can harm the security of the United 
        States.
          [(10) It is the policy of the United States that 
        export trade by United States citizens be given a high 
        priority and not be controlled except when such 
        controls (A) are necessary to further fundamental 
        national security, foreign policy, or short supply 
        objectives, (B) will clearly further such objectives, 
        and (C) are administered consistent with basic 
        standards of due process.
          [(11) It is the policy of the United States to 
        minimize restrictions on the export of agricultural 
        commodities and products.
          [(12) It is the policy of the United States to 
        sustain vigorous scientific enterprise. To do so 
        involves sustaining the ability of scientists and other 
        scholars freely to communicate research findings, in 
        accordance with applicable provisions of law, by means 
        of publication, teaching, conferences, and other forms 
        of scholarly exchange.
          [(13) It is the policy of the United States to 
        control the export of goods and substances banned or 
        severely restricted for use in the United States in 
        order to foster public health and safety and to prevent 
        injury to the foreign policy of the United States as 
        well as to the credibility of the United States as a 
        responsible trading partner.
          [(14) It is the policy of the United States to 
        cooperate with countries which are allies of the United 
        States and countries which share common strategic 
        objectives with the United States in minimizing 
        dependence on imports of energy and other critial 
        resources from potential adversaries and in developing 
        alternative supplies of such resources in order to 
        minimize strategic threats posed by excessive hard 
        currency earnings derived from such resource exports by 
        countries with policies adverse to the security 
        interests of the United States.

                          [general provisions

  [Sec. 4. (a) Types of Licenses.--Under such conditions as may 
be imposed by the Secretary which are consistent with the 
provisions of this Act, the Secretary may require any of the 
following types of export licenses:
          [(1) A validated license, authorizing a specific 
        export, issued pursuant to an application by the 
        exporter.
          [(2) Validated licenses authorizing multiple exports, 
        issued pursuant to an application by the exporter, in 
        lieu of an individual validated license for each such 
        export, including, but not limited to, the following:
                  [(A) A distribution license, authorizing 
                exports of goods to approved distributors or 
                users of the goods in countries other than 
                controlled countries, except that the Secretary 
                may establish a type of distribution license 
                appropriate for consignees in the People's 
                Republic of China. The Secretary shall grant 
                the distribution license primarily on the basis 
                of the reliability of the applicant and foreign 
                consignees with respect to the prevention of 
                diversion of goods to controlled countries. The 
                Secretary shall have the responsibility of 
                determining, with the assistance of all 
                appropriate agencies, the reliability of 
                applicants and their immediate consignees. The 
                Secretary's determination shall be based on 
                appropriate investigations of each applicant 
                and periodic reviews of licensees and their 
                compliance with the terms of licenses issued 
                under this Act. Factors such as the applicant's 
                products or volume of business, or the 
                consignees' geographic location, sales 
                distribution area, or degree of foreign 
                ownership, which may be relevant with respect 
                to individual cases, shall not be determinative 
                in creating categories or general criteria for 
                the denial of applications or withdrawal of a 
                distribution license.
                  [(B) A comprehensive operations license, 
                authorizing exports and reexports of technology 
                and related goods, including items from the 
                list of militarily critical technologies 
                developed pursuant to section 5(d) of this Act 
                which are included on the control list in 
                accordance with that section, from a domestic 
                concern to and among its foreign subsidiaries, 
                affiliates, joint venturers, and licensees that 
                have long-term, contractually defined relations 
                with the exporter, are located in countries 
                other than controlled countries (except the 
                People's Republic of China), and are approved 
                by the Secretary. The Secretary shall grant the 
                license to manufacturing, laboratory, or 
                related operations on the basis of approval of 
                the exporter's systems of control, including 
                internal proprietary controls, applicable to 
                the technology and related goods to be exported 
                rather than approval of individual export 
                transactions. The Secretary and the 
                Commissioner of Customs, consistent with their 
                authorities under section 12(a) of this Act, 
                and with the assistance of all appropriate 
                agencies, shall periodically, but not less 
                frequently than annually, perform audits of 
                licensing procedures under this subparagraph in 
                order to assure the integrity and effectiveness 
                of those procedures.
                  [(C) A project license, authorizing exports 
                of goods or technology for a specified 
                activity.
                  [(D) A service supply license, authorizing 
                exports of spare or replacement parts for goods 
                previously exported.
          [(3) A general license, authorizing exports, without 
        application by the exporter.
          [(4) Such other licenses as may assist in the 
        effective and efficient implementation of this Act.
  [(b) Control List.--The Secretary shall establish and 
maintain a list (hereinafter in this Act referred to as the 
``control list'') stating license requirements (other than for 
general licenses) for exports of goods and technology under 
this Act.
  [(c) Foreign Availability.--In accordance with the provisions 
of this Act, the President shall not impose export controls for 
foreign policy or national security purposes on the export from 
the United Staes of goods or technology which he determines are 
available without restriction from sources outside the United 
States in sufficient quantities and comparable in quality to 
those produced in the United States, so as to render the 
controls ineffective in achieving their purposes unless the 
President determines that adequate evidence has been presented 
to him demonstrating that the absence of such controls would 
prove detrimental to the foreign policy or national security of 
the United States. In complying with the provisions of this 
subsection, the President shall give strong emphasis to 
bilateral or multilateral negotiations to eliminate foreign 
availability. The Secretary and the Secretary of Defense shall 
cooperate in gathering information relating to foreign 
availability, including the establishment and maintenance of a 
jointly operated computer system.
  [(d) Right of Export.--No authority or permission to export 
may be required under this Act, or under regulations issued 
under this Act, except to carry out the policies set forth in 
section 3 of this Act.
  [(e) Delegation of Authority.--The President may delegate the 
power, authority, and discretion conferred upon him by this Act 
to such departments, agencies, or officials of the Government 
as he may consider appropriate, except that no authority under 
this Act may be delegated to, or exercised by, any official of 
any department or agency the head of which is not appointed by 
the President, by and with the advice and consent of the 
Senate. The President may not delegate or transfer his power, 
authority, and discretion to overrule or modify any 
recommendation or decision made by the Secretary, the Secretary 
of Defense, or the Secretary of State pursuant to the 
provisions of this Act.
  [(f) Notification of the Public; Consultation With 
Business.--The Secretary shall keep the public fully apprised 
of changes in export control policy and procedures instituted 
in conformity with this Act with a view to encouraging trade. 
The Secretary shall meet regularly with representatives of a 
broad spectrum of enterprises, labor organizations, and 
citizens interested in or affected by export controls, in order 
to obtain their views on United States export control policy 
and the foreign availability of goods and technology.
  [(g) Fees.--No fee may be charged in connection with the 
submission or processing of an export license application.

                      [national security controls

  [Sec. 5. (a) Authority.--(1) In order to carry out the policy 
set forth in section 3(2)(A) of this Act, the President may, in 
accordance with the provisions of this section, prohibit or 
curtail the export of any goods or technology subject to the 
jurisdiction of the United States or exported by any person 
subject to the jurisdiction of the United States. The authority 
contained in this subsection includes the authority to prohibit 
or curtail the transfer of goods or technology within the 
United States to embassies and affiliates of controlled 
countries. For purposes of the preceding sentence, the term 
``affiliates'' includes both governmental entities and 
commercial entities that are controlled in fact by controlled 
countries. The authority contained in this subsection shall be 
exercised by the Secretary, in consultation with the Secretary 
of Defense, and such other departments and agencies as the 
Secretary considers appropriate, and shall be implemented by 
means of export licenses described in section 4(a) of this Act.
  [(2) Whenever the Secretary makes any revision with respect 
to any goods or technology, or with respect to the countries or 
destinations, affected by export controls imposed under this 
section, the Secretary shall publish in the Federal Register a 
notice of such revision and shall specify in such notice that 
the revision relates to controls imposed under the authority 
contained in this section.
  [(3) In issuing regulations to carry out this section, 
particular attention shall be given to the difficulty of 
devising effective safeguards to prevent a country that poses a 
threat to the security of the United States from diverting 
critical technologies to military use, the difficulty of 
devising effective safeguards to protect critical goods, and 
the need to take the effective measures to prevent the reexport 
of critical technologies from other countries to countries that 
pose a threat to the security of the United States.
  [(4)(A) No authority or permission may be required under this 
section to reexport any goods or technology subject to the 
jurisdiction of the United States to any country which 
maintains export controls on such goods or technology 
cooperatively with the United States pursuant to the agreement 
of the group known as the Coordinating Committee, or pursuant 
to an agreement described in subsection (k) of this section. 
The Secretary may require any person reexporting any goods or 
technology under this subparagraph to notify the Secretary of 
such reexports.
  [(B) Notwithstanding subparagraph (A), the Secretary may 
require authority or permission to reexport the following:
          [(i) supercomputers;
          [(ii) goods or technology for sensitive nuclear uses 
        (as defined by the Secretary);
          [(iii) devices for surreptitious interception of wire 
        or oral communications; and
          [(iv) goods or technology intended for such end users 
        as the Secretary may specify by regulation.
  [(5)(A) Except as provided in subparagraph (B), no authority 
or permission may be required under this section to reexport 
any goods or technology subject to the jurisdiction of the 
United States from any country when the goods or technology to 
be reexported are incorporated in another good and--
          [(i) the value of the controlled United States 
        content of that other good is 25 percent or less of the 
        total value of the good; or
          [(ii) the export of the goods or technology to a 
        controlled country would require only notification of 
        the participating governments of the Coordinating 
        Committee.
For purposes of this paragraph, the ``controlled United States 
content'' of a good means those goods or technology subject to 
the jurisdiction of the United States which are incorporated in 
the good, if the export of those goods or technology from the 
United States to a country, at the time that the good is 
exported to that country, would require a validated license.
  [(B) The Secretary may by regulation provide that 
subparagraph (A) does not apply to the reexport of a 
supercomputer which contains goods or technology subject to the 
jurisdiction of the United States.
  [(6) Not later than 90 days after the date of the enactment 
of this paragraph, the Secretary shall issue regulations to 
carry out paragraphs (4) and (5). Such regulations shall define 
the term ``supercomputer'' for purposes of those paragraphs.
  [(b) Policy Toward Individual Countries.--(1) In 
administering export controls for national security purposes 
under this section, the President shall establish as a list of 
controlled countries those countries set forth in section 
620(f) of the Foreign Assistance Act of 1961, except that the 
President may add any country to or remove any country from 
such list of controlled countries if he determines that the 
export of goods or technology to such country would or would 
not (as the case may be) make a significant contribution to the 
military potential of such country or a combination of 
countries which would prove detrimental to the national 
security of the United States. In determining whether a country 
is added to or removed from the list of controlled countries, 
the President shall take into account--
          [(A) the extent to which the country's policies are 
        adverse to the national security interests of the 
        United States;
          [(B) the country's Communist or non-Communist status;
          [(C) the present and potential relationship of the 
        country with the United States;
          [(D) the present and potential relationship of the 
        country with countries friendly or hostile to the 
        United States;
          [(E) the country's nuclear weapons capability and the 
        country's compliance record with respect to 
        multilateral nuclear weapons agreements to which the 
        United States is a party; and
          [(F) such other factors as the President considers 
        appropriate.
Nothing in the preceding sentence shall be interpreted to limit 
the authority of the President provided in this Act to prohibit 
or curtail the export of any goods or technology to any country 
to which exports are controlled for national security purposes 
other than countries on the list of controlled countries 
specified in this paragraph. The President shall review not 
less frequently than every three years in the case of controls 
maintained cooperatively with other nations, and annually in 
the case of all other controls, United States policy toward 
individual countries to determine whether such policy is 
appropriate in light of the factors set forth in this 
paragraph.
  [(2)(A) Except as provided in subparagraph (B), no authority 
or permission may be required under this section to export 
goods or technology to a country which maintains export 
controls on such goods or technology cooperatively with the 
United States pursuant to the agreement of the group known as 
the Coordinating Committee or pursuant to an agreement 
described in subsection (k) of this section, if the export of 
such goods or technology to the People's Republic of China or a 
controlled country on the date of the enactment of the Export 
Enhancement Act of 1988 would require only notification of the 
participating governments of the Coordinating Committee.
  [(B)(i) The Secretary may require a license for the export of 
goods or technology described in subparagraph (A) to such end 
users as the Secretary may specify by regulation.
  [(ii) The Secretary may require any person exporting goods or 
technology under this paragraph to notify the Secretary of 
those exports.
  [(C) The Secretary shall, within 3 months after the date of 
the enactment of the Export Enhancement Act of 1988, determine 
which countries referred to in subparagraph (A) are 
implementing an effective export control system consistent with 
principles agreed to in the Coordinating Committee, including 
the following:
          [(i) national laws providing appropriate civil and 
        criminal penalties and statutes of limitations 
        sufficient to deter potential violations;
          [(ii) a program to evaluate export license 
        applications that includes sufficient technical 
        expertise to assess the licensing status of exports and 
        ensure the reliability of end-users;
          [(iii) an enforcement mechanism that provides 
        authority for trained enforcement officers to 
        investigate and prevent illegal exports;
          [(iv) a system of export control documentation to 
        verify the movement of goods and technology; and
          [(v) procedures for the coordination and exchange of 
        information concerning violations of the agreement of 
        the Coordinating Committee.
The Secretary shall, at least once each year, review the 
determinations made under the preceding sentence with respect 
to all countries referred to in subparagraph (A). The Secretary 
may, as appropriate, add countries to, or remove countries 
from, the list of countries that are implementing an effective 
export control system in accordance with this subparagraph. No 
authority or permission to export may be required for the 
export of goods or technology to a country on such list.
  [(3)(A) No authority or permission may be required under this 
section to export to any country, other than a controlled 
country, any goods or technology if the export of the goods or 
technology to controlled countries would require only 
notification of the participating governments of the 
Coordinating Committee.
  [(B) The Secretary may require any person exporting any goods 
or technology under subparagraph (A) to notify the Secretary of 
those exports.
  [(c) Control List.--(1) The Secretary shall establish and 
maintain, as part of the control list, a list of all goods and 
technology subject to export controls under this section. Such 
goods and technology shall be clearly identified as being 
subject to controls under this section.
  [(2) The Secretary of Defense and other appropriate 
departments and agencies shall identify goods and technology 
for inclusion on the list referred to in paragraph (1). Those 
items which the Secretary and the Secretary of Defense concur 
shall be subject to export controls under this section shall 
comprise such list. If the Secretary and the Secretary of 
Defense are unable to concur on such items, as determined by 
the Secretary, the Secretary of Defense may, within 20 days 
after receiving notification of the Secretary's determination, 
refer the matter to the President for resolution. The Secretary 
of Defense shall notify the Secretary of any such referral. The 
President shall, not later than 20 days after such referral, 
notify the Secretary of his determination with respect to the 
inclusion of such items on the list. Failure of the Secretary 
of Defense to notify the President or the Secretary, or failure 
of the President to notify the Secretary, in accordance with 
this paragraph, shall be deemed by the Secretary to constitute 
concurrence in the implementation of the actions proposed by 
the Secretary regarding the inclusion of such items on the 
list.
  [(3) The Secretary shall conduct partial reviews of the list 
established pursuant to this subsection at least once each 
calendar quarter in order to carry out the policy set forth in 
section 3(2)(A) of this Act and the provisions of this section, 
and shall promptly make such revisions of the list as may be 
necessary after each such review. Before beginning each 
quarterly review, the Secretary shall publish notice of that 
review in the Federal Register. The Secretary shall provide a 
30-day period during each review for comment and the submission 
of data, with or without oral presentation, by interested 
Government agencies and other affected or potentially affected 
parties. After consultation with appropriate Government 
agencies, the Secretary shall make a determination of any 
revisions in the list within 30 days after the end of the 
review period. The concurrence or approval of any other 
department or agency is not required before any such revision 
is made. The Secretary shall publish in the Federal Register 
any revisions in the list, with an explanation of the reasons 
for the revisions. The Secretary shall use the data developed 
from each review in formulating United States proposals 
relating to multilateral export controls in the group known as 
the Coordinating Committee. The Secretary shall further assess, 
as part of each review, the availability from sources outside 
the United States of goods and technology comparable to those 
subject to export controls imposed under this section. All 
goods and technology on the list shall be reviewed at least 
once each year. The provisions of this paragraph apply to 
revisions of the list which consist of removing items from the 
list or making changes in categories of, or other 
specifications in, items on the list.
  [(4) The appropriate technical advisory committee appointed 
under subsection (h) of this section shall be consulted by the 
Secretary with respect to changes, pursuant to paragraph (2) or 
(3), in the list established pursuant to this subsection, and 
such technical advisory committee may submit recommendations to 
the Secretary with respect to such changes. The Secretary shall 
consider the recommendations of the technical advisory 
committee and shall inform the committee of the disposition of 
its recommendations.
  [(5)(A) Not later than 6 months after the date of the 
enactment of this paragraph, the following shall no longer be 
subject to export controls under this section:
          [(i) All goods or technology the export of which to 
        controlled countries on the date of the enactment of 
        the Export Enhancement Act of 1988 would require only 
        notification of the participating governments of the 
        Coordinating Committee, except for those goods or 
        technology on which the Coordinating Committee agrees 
        to maintain such notification requirement.
          [(ii) All medical instruments and equipment, subject 
        to the provisions of subsection (m) of this section.
  [(B) The Secretary shall submit to the Congress annually a 
report setting forth the goods and technology from which export 
controls have been removed under this paragraph.''.
  [(6)(A) Notwithstanding subsection (f) or (h)(6) of this 
section, any export control imposed under this section which is 
maintained unilaterally by the United States shall expire 6 
months after the date of the enactment of this paragraph, or 6 
months after the export control is imposed, whichever date is 
later, except that--
          [(i) any such export controls on those goods or 
        technology for which a determination of the Secretary 
        that there is no foreign availability has been made 
        under subsection (f) or (h)(6) of this section before 
        the end of the applicable 6-month period and is in 
        effect may be renewed for periods of not more than 6 
        months each, and
          [(ii) any such export controls on those goods or 
        technology with respect to which the President, by the 
        end of the applicable 6-month period, is actively 
        pursuing negotiations with other countries to achieve 
        multilateral export controls on those goods or 
        technology may be renewed for 2 periods of not more 
        than 6 months each.
  [(B) Export controls on goods or technology described in 
clause (i) or (ii) of subparagraph (A) may be renewed only if, 
before each renewal, the President submits to the Congress a 
report setting forth all the controls being renewed and stating 
the specific reasons for such renewal.
  [(7) Notwithstanding any other provision of this subsection, 
after 1 year has elapsed since the last review in the Federal 
Register on any item within a category on the control list the 
export of which to the People's Republic of China would require 
only notification of the members of the group known as the 
Coordinating Committee, an export license applicant may file an 
allegation with the Secretary that such item has not been so 
reviewed within such 1-year period. Within 90 days after 
receipt of such allegation, the Secretary--
          [(A) shall determine the truth of the allegation;
          [(B) shall, if the allegation is confirmed, commence 
        and complete the review of the item; and
          [(C) shall, pursuant to such review, submit a finding 
        for publication in the Federal Register.
In such finding, the Secretary shall identify those goods or 
technology which shall remain on the control list and those 
goods or technology which shall be removed from the control 
list. If such review and submission for publication are not 
completed within that 90-day period, the goods or technology 
encompassed by such item shall immediately be removed from the 
control list.
  [(d) Militarily Critical Technologies.--(1) The Secretary, in 
consultation with the Secretary of Defense, shall review and 
revise the list established pursuant to subsection (c), as 
prescribed in paragraph (3) of such subsection, for the purpose 
of insuring that export controls imposed under this section 
cover and (to the maximum extent consistent with the purposes 
of this Act) are limited to militarily critical goods and 
technologies and the mechanisms through which such goods and 
technologies may be effectively transferred.
  [(2) The Secretary of Defense shall bear primary 
responsibility for developing a list of militarily critical 
technologies. In developing such list, primary emphasis shall 
be given to--
          [(A) arrays of design and manufacturing know-how,
          [(B) keystone manufacturing, inspection, and test 
        equipment,
          [(C) goods accompanied by sophisticated operation, 
        application, or maintenance know-how; and
          [(D) keystone equipment with would reveal or give 
        insight into the design and manufacture of a United 
        States military system,
which are not possessed by, or available in fact from sources 
outside the United States to, controlled countries and which, 
if exported, would permit a significant advance in a military 
system of any such country.
  [(3) The list referred to in paragraph (2) shall be 
sufficiently specific to guide the determinations of any 
official exercising export licensing responsibilities under 
this Act.
  [(4) The Secretary and the Secretary of Defense shall 
integrate items on the list of militarily critical technologies 
into the control list in accordance with the requirements of 
subsection (c) of this section. The integration of items on the 
list of militarily critical technologies into the control list 
shall proceed with all deliberate speed. Any disagreement 
between the Secretary and the Secretary of Defense regarding 
the integration of an item on the list of militarily critical 
technologies into the control list shall be resolved by the 
President. Except in the case of a good or technology for which 
a validated license may be required under subsection (f)(4) or 
(h)(6) of this section, a good or technology shall be included 
on the control list only if the Secretary finds that controlled 
countries do not possess that good or technology, or a 
functionally equivalent good or technology, and the good or 
technology or functionally equivalent good or technology, is 
not available in fact to a controlled country from sources 
outside the United States in sufficient quantity and of 
comparable quality so that the requirement of a validated 
license for the export of such good or technology is or would 
be ineffective in achieving the purpose set forth in subsection 
(a) of this section. The Secretary and the Secretary of Defense 
shall jointly submit a report to the Congress, not later than 1 
year after the date of the enactment of the Export 
Administration Amendments Act of 1985, on actions taken to 
carry out this paragraph. For the purposes of this paragraph, 
assessment of whether a good or technology is functionally 
equivalent shall include consideration of the factors described 
in subsection (f)(3) of this section.
  [(5) The Secretary of Defense shall establish a procedure for 
reviewing the goods and technology on the list of militarily 
critical technologies on an ongoing basis for the purpose of 
removing from the list of militarily critical technologies any 
goods or technology that are no longer militarily critical. The 
Secretary of Defense may add to the list of militarily critical 
technologies and good or technology that the Secrtary of 
Defense determines is militarily critical, consistent with the 
provisions of paragraph (2) of this subsection. If the 
Secretary and the Secretary of Defense disagree as to whether 
any change in the list of militarily critical technologies by 
the addition or removal of a good or technology should also be 
made in the control list, consistent with the provisions of the 
fourth sentence of paragraph (4) of this subsection, the 
President shall resolve the disagreement.
  [(6) The establishment of adequate export controls for 
militarily critical technology and keystone equipment shall be 
accompanied by suitable reductions in the controls on the 
products of that technology and equipment.
  [(7) The Secretary of Defense shall, not later than 1 year 
after the date of the enactment of the Export Administration 
Amendments Act of 1985, report to the Congress on efforts by 
the Department of Defense to assess the impact that the 
transfer of goods or technology on the list of militarily 
critical technologies to controlled countries has had or will 
have on the military capabilities of those countries.
  [(e) Export Licenses.--(1) The Congress finds that the 
effectiveness and efficiency of the process of making export 
licensing determinations under this section is severely 
hampered by the large volumne of validated export license 
applications required to be submitted under this Act. 
Accordingly, it is the intent of Congress in this subsection to 
encourage the use of the multiple validated export licenses 
described in section 4(a)(2) of this Act in lieu of individual 
validated licenses.
  [(2) To the maximum extent practicable, consistent with the 
national security of the United States, the Secretary shall 
require a validated license under this section for the export 
of goods or technology only if--
          [(A) the export of such goods or technology is 
        restricted pursuant to a multilateral agreement, formal 
        or informal, to which the United States is a party and, 
        under the terms of such multilateral agreement, such 
        export requires the specific approval of the parties to 
        such multilateral agreement;
          [(B) with respect to such goods or technology, other 
        nations do not possess capabilities comparable to those 
        possessed by the United States; or
          [(C) the United States is seeking the agreement of 
        other suppliers to apply comparable controls to such 
        goods or technology and, in the judgment of the 
        Secretary, United States export controls on such goods 
        or technology, by means of such license, are necessary 
        pending the conclusion of such agreement.
  [(3) The Secretary, subject to the provisions of subsection 
(l) of this section, shall not require an individual validated 
export license for replacement parts which are exported to 
replace on a one-for-one basis parts that were in a good that 
has been lawfully exported from the United States.
  [(4) The Secretary shall periodically review the procedures 
with respect to the multiple validated export licenses, taking 
appropriate action to increase their utilization by reducing 
qualification requirements or lowering minimum thresholds, to 
combine procedures which overlap, and to eliminate those 
procedures which appear to be of marginal utility.
  [(5) The export of goods subject to export controls under 
this section shall be eligible, at the discretion of the 
Secretary, for a distribution license and other licenses 
authorizing multiple exports of goods, in accordance with 
section 4(a)(2) of this Act. The export of technology and 
related goods subject to export controls under this section 
shall be eligible for a comprehensive operations license in 
accordance with section 4(a)(2)(B) of this Act.
  [(6) Any application for a license for the export to the 
People's Republic of China of any good on which export controls 
are in effect under this section, without regard to the 
technical specifications of the good, for the purpose of 
demonstration or exhibition at a trade show shall carry a 
presumption of approval if--
          [(A) the United States exporter retains title to the 
        good during the entire period in which the good is in 
        the People's Republic of China; and
          [(B) the exporter removes the good from the People's 
        Republic of China no later than at the conclusion of 
        the trade show.
  [(f) Foreign Availability.--
          [(1) Foreign availability to controlled countries.--
        (A) The Secretary, in consultation with the Secretary 
        of Defense and other appropriate Government agencies 
        and with appropriate technical advisory committees 
        established pursuant to subsection (h) of this section, 
        shall review, on a continuing basis, the availability 
        to controlled countries, from sources outside the 
        United States, including countries which participate 
        with the United States in multilateral export controls, 
        of any goods or technology the export of which requires 
        a validated license under this section. In any case in 
        which the Secretary determines, in accordance with 
        procedures and criteria which the Secretary shall by 
        regulation establish, that any such goods or technology 
        are available in fact to controlled countries from such 
        sources in sufficient quantity and of comparable 
        quality so that the requirement of a validated license 
        for the export of such goods or technology is or would 
        be ineffective in achieving the purpose set forth in 
        subsection (a) of this section, the Secretary may not, 
        after the determination is made, require a validated 
        license for the export of such goods or technology 
        during the period of such foreign availability, unless 
        the President determines that the absence of export 
        controls under this section on the goods or technology 
        would prove detrimental to the national security of the 
        United States. In any case in which the President 
        determines under this paragraph that export controls 
        under this section must be maintained notwithstanding 
        foreign availability, the Secretary shall publish that 
        determination, together with a concise statement of its 
        basis and the estimated economic impact of the 
        decision.
          [(B) The Secretary shall approve any application for 
        a validated license which is required under this 
        section for the export of any goods or technology to a 
        controlled country and which meets all other 
        requirements for such an application, if the Secretary 
        determines that such goods or technology will, if the 
        license is denied, be available in fact to such country 
        from sources outside the United States, including 
        countries which participate with the United States in 
        multilateral export controls, in sufficient quantity 
        and of comparable quality so that denial of the license 
        would be ineffective in achieving the purpose set forth 
        in subsection (a) of this section, unless the President 
        determines that approving the license application would 
        prove detrimental to the national security of the 
        United States. In any case in which the Secretary makes 
        a determination of foreign availability under this 
        subparagraph with respect to any goods or technology, 
        the Secretary shall determine whether a determination 
        of foreign availability under subparagraph (A) with 
        respect to such goods or technology is warranted.
          [(2) Foreign availability to other than controlled 
        countries.--(A) The Secretary shall review, on a 
        continuing basis, the availability to countries other 
        than controlled countries, from sources outside the 
        United States, of any goods or technology the export of 
        which requires a validated license under this section. 
        If the Secretary determines, in accordance with 
        procedures which the Secretary shall establish, that 
        any goods or technology in sufficient quantity and of 
        comparable quality are available in fact from sources 
        outside the United States (other than availability 
        under license from a country which maintains export 
        controls on such goods or technology cooperatively with 
        the United States pursuant to the agreement of the 
        group known as the Coordinating Committee or pursuant 
        to an agreement described in subsection (k) of this 
        section), the Secretary may not, after the 
        determination is made and during the period of such 
        foreign availability, require a validated license for 
        the export of such goods or technology to any country 
        (other than a controlled country) to which the country 
        from which the goods or technology is available does 
        not place controls on the export of such goods or 
        technology. The requirement with respect to a validated 
        license in the preceding sentence shall not apply if 
        the President determines that the absence of export 
        controls under this section on the goods or technology 
        would prove detrimental to the national security of the 
        United States. In any case in which the President 
        determines under this paragraph that export controls 
        under this section must be maintained notwithstanding 
        foreign availability, the Secretary shall publish that 
        determination, together with a concise statement of its 
        basis and the estimated economic impact of the 
        decision.
          [(B) The Secretary shall approve any application for 
        a validated license which is required under this 
        section for the export of any goods or technology to a 
        country (other than a controlled country) and which 
        meets all other requirements for such an application, 
        if the Secretary determines that such goods or 
        technology are available from foreign sources to that 
        country under the criteria established in subparagraph 
        (A), unless the President determines that approving the 
        license application would prove detrimental to the 
        national security of the United States. In any case in 
        which the Secretary makes a determination of foreign 
        availability under this subparagraph with respect to 
        any goods or technology, the Secretary shall determine 
        whether a determination of foreign availability under 
        subparagraph (A) with respect to such goods or 
        technology is warranted.
          [(3) Procedures for making determinations.--(A) The 
        Secretary shall make a foreign availability 
        determination under paragraph (1) or (2) on the 
        Secretary's own initiative or upon receipt of an 
        allegation from an export license applicant that such 
        availability exists. In making any such determination, 
        the Secretary shall accept the representations of 
        applicants made in writing and supported by reasonable 
        evidence, unless such representations are contradicted 
        by reliable evidence, including scientific or physical 
        examination, expert opinion based upon adequate factual 
        information, or intelligence information. In making 
        determinations of foreign availability, the Secretary 
        may consider such factors as cost, reliability, the 
        availability and reliability of spare parts and the 
        cost and quality thereof, maintenance programs, 
        durability, quality of end products produced by the 
        item proposed for export, and scale of production. For 
        purposes of this subparagraph, ``evidence'' may include 
        such items as foreign manufacturers' catalogues, 
        brochures, or operations or maintenance manuals, 
        articles from reputable trade publications, 
        photographs, and depositions based upon eyewitness 
        accounts.
          [(B) In a case in which an allegation is received 
        from an export license applicant, the Secretary shall, 
        upon receipt of the allegation, submit for publication 
        in the Federal Register notice of such receipt. Within 
        4 months after receipt of the allegation, the Secretary 
        shall determine whether the foreign availability 
        exists, and shall so notify the applicant. If the 
        Secretary has determined that the foreign availability 
        exists, the Secretary shall, upon making such 
        determination, submit the determination for review to 
        other departments and agencies as the Secretary 
        considers appropriate. The Secretary's determination of 
        foreign availability does not require the concurrence 
        or approval of any official, department, or agency to 
        which such a determination is submitted. Not later than 
        1 month after the Secretary makes the determination, 
        the Secretary shall respond in writing to the applicant 
        and submit for publication in the Federal Register, 
        that--
                  [(i) the foreign availability does exist 
                and--
                          [(I) the requirement of a validated 
                        license has been removed,
                          [(II) the President has determined 
                        that export controls under this section 
                        must be maintained notwithstanding the 
                        foreign availability and the applicable 
                        steps are being taken under paragraph 
                        (4), or
                          [(III) in the case of a foreign 
                        availability determination under 
                        paragraph (1), the foreign availability 
                        determination will be submitted to a 
                        multilateral review process in 
                        accordance with the agreement of the 
                        Coordinating Committee for a period of 
                        not more than 4 months beginning on the 
                        date of the publication; or
                  [(ii) the foreign availability does not 
                exist.
        In any case in which the submission for publication is 
        not made within the time period specified in the 
        preceding sentence, the Secretary may not thereafter 
        require a license for the export of the goods or 
        technology with respect to which the foreign 
        availability allegation was made. In the case of a 
        foreign availability determination under paragraph (1) 
        to which clause (i)(III) applies, no license for such 
        export may be required after the end of the 9-month 
        period beginning on the date on which the allegation is 
        received.
          [(4) Negotiations to eliminate foreign 
        availability.--(A) In any case in which export controls 
        are maintained under this section notwithstanding 
        foreign availability, on account of a determination by 
        the President that the absence of the controls would 
        prove detrimental to the national security of the 
        United States, the President shall actively pursue 
        negotiations with the governments of the appropriate 
        foreign countries for the purpose of eliminating such 
        availability. No later than the commencement of such 
        negotiations, the President shall notify in writing the 
        Committee on Banking, Housing, and Urban Affairs of the 
        Senate and the Committee on Foreign Affairs of the 
        House of Representatives that he has begun such 
        negotiations and why he believes it is important to 
        national security that export controls on the goods or 
        technology involved be maintained.
          [(B) If, within 6 months after the President's 
        determination that export controls be maintained, the 
        foreign availability has not been eliminated, the 
        Secretary may not, after the end of that 6-month 
        period, require a validated license for the export of 
        the goods or technology involved. The President may 
        extend the 6-month period described in the preceding 
        sentence for an additional period of 12 months if the 
        President certifies to the Congress that the 
        negotiations involved are progressing and that the 
        absence of the export controls involved would prove 
        detrimental to the national security of the United 
        States. Whenever the President has reason to believe 
        that goods or technology subject to export controls for 
        national security purposes by the United States may 
        become available from other countries to controlled 
        countries and that such availability can be prevented 
        or eliminated by means of negotiations with such other 
        countries, the President shall promptly initiate 
        negotiations with the governments of such other 
        countries to prevent such foreign availability.
          [(C) After an agreement is reached with a country 
        pursuant to negotiations under this paragraph to 
        eliminate or prevent foreign availability of goods or 
        technology, the Secretary may not require a validated 
        license for the export of such goods or technology to 
        that country.
          [(5) Expedited licenses for items available to 
        countries other than controlled countries.--(A) In any 
        case in which the Secretary finds that any goods or 
        technology from foreign sources is of similar quality 
        to goods or technology the export of which requires a 
        validated license under this section and is available 
        to a country other than a controlled country without 
        effective restrictions, the Secretary shall designate 
        such goods or technology as eligible for export to such 
        country under this paragraph.
          [(B) In the case of goods or technology designated 
        under subparagraph (A), then 20 working days after the 
        date of formal filing with the Secretary of an 
        individual validated license application for the export 
        of those goods or technology to an eligible country, a 
        license for the transaction specified in the 
        application shall become valid and effective and the 
        goods or technology are authorized for export pursuant 
        to such license unless the license has been denied by 
        the Secretary on account of an inappropriate end user. 
        The Secretary may extend the 20-day period provided in 
        the preceding sentence for an additional period of 15 
        days if the Secretary requires additional time to 
        consider the application and so notifies the applicant.
          [(C) The Secretary may make a foreign availability 
        determination under subparagraph (A) on the Secretary's 
        own initiative, upon receipt of an allegation from an 
        export license applicant that such availability exists, 
        or upon the submission of a certification by a 
        technical advisory committee of appropriate 
        jurisdiction that such availability exists. Upon 
        receipt of such an allegation or certification, the 
        Secretary shall publish notice of such allegation or 
        certification in the Federal Register and shall make 
        the foreign availability determination within 30 days 
        after such receipt and publish the determination in the 
        Federal Register. In the case of the failure of the 
        Secretary to make and publish such determination within 
        that 30-day period, the goods or technology involved 
        shall be deemed to be designated as eligible for export 
        to the country or countries involved, for purposes of 
        subparagraph (B).
          [(D) The provisions of paragraphs (1), (2), (3), and 
        (4) do not apply with respect to determinations of 
        foreign availability under this paragraph.
          [(6) Office of foreign availability.--The Secretary 
        shall establish in the Department of Commerce an Office 
        of Foreign Availability, which shall be under the 
        direction of the Under Secretary of Commerce for Export 
        Administration. The Office shall be responsible for 
        gathering and analyzing all the necessary information 
        in order for the Secretary to make determinations of 
        foreign availability under this Act. The Secretary 
        shall make available to the Committee on Foreign 
        Affairs of the House of Representatives and the 
        Committee on Banking, Housing, and Urban Affairs of the 
        Senate at the end of each 6-month period during a 
        fiscal year information on the operations of the 
        Office, and on improvements in the Government's ability 
        to assess foreign availability, during that 6-month 
        period, including information on the training of 
        personnel, the use of computers, and the use of 
        Commercial Service Officers of the United States and 
        Foreign Commercial Service. Such information shall also 
        include a description of representative determinations 
        made under this Act during that 6-month period that 
        foreign availability did or did not exist (as the case 
        may be), together with an explanation of such 
        determinations.
          [(7) Sharing of information.--Each department or 
        agency of the United States, including any intelligence 
        agency, and all contractors with any such department or 
        agency, shall, upon the request of the Secretary and 
        consistent with the protection of intelligence sources 
        and methods, furnish information to the Office of 
        Foreign Availability concerning foreign availability of 
        goods and technology subject to export controls under 
        this Act. Each such department or agency shall allow 
        the Office of Foreign Availability access to any 
        information from a laboratory or other facility within 
        such department or agency.
          [(8) Removal of controls on less sophisticated goods 
        or technology.--In any case in which Secretary may not, 
        pursuant to paragraph (1), (2), (3), or (4) of this 
        subsection or paragraph (6) of subsection (h) of this 
        section, require a validated license for the export of 
        goods or technology, then the Secretary may not require 
        a validated license for the export of any similar goods 
        or technology whose function, technological approach, 
        performance thresholds, and other attributes that form 
        the basis for export controls under this section do not 
        exceed the technical parameters of the goods or 
        technology from which the validated license requirement 
        is removed under the applicable paragraph.
          [(9) Notice of all foreign availability 
        assessments.--Whenever the Secretary undertakes a 
        foreign availability assessment under this subsection 
        or subsection (h)(6), the Secretary shall publish 
        notice of such assessment in the Federal Register.
          [(10) Availability defined.--For purposes of this 
        subsection and subsections (f) and (h), the term 
        ``available in fact to controlled countries'' includes 
        production or availability of any goods or technology 
        in any country--
                  [(A) from which the goods or technology is 
                not restricted for export to any controlled 
                country; or
                  [(B) in which such export restrictions are 
                determined by the Secretary to be ineffective.
        For purposes of subparagraph (B), the mere inclusion of 
        goods or technology on a list of goods or technology 
        subject to bilateral or multilateral national security 
        export controls shall not alone constitute credible 
        evidence that a country provides an effective means of 
        controlling the export of such goods or technology to 
        controlled countries.
  [(g) Indexing.--(1) In order to ensure that requirements for 
validated licenses and other licenses authorizing multiple 
exports are periodically removed as goods or technology subject 
to such requirements becomes obsolete with respect to the 
national security of the United States, regulations issued by 
the Secretary may, where appropriate, provide for annual 
increases in the performance levels of goods or technology 
subject to any such licensing requirement. The regulations 
issued by the Secretary shall establish as one criterion for 
the removal of goods or technology from such license 
requirements the anticipated needs of the military of 
controlled countries. Any such goods or technology which no 
longer meets the performance levels established by the 
regulations shall be removed from the list established pursuant 
to subsection (c) of this section unless, under such exceptions 
and under such procedures as the Secretary shall prescribe, any 
other department or agency of the United States objects to such 
removal and the Secretary determines, on the basis of such 
objection, that the goods or technology shall not be removed 
from the list. The Secretary shall also consider, where 
appropriate, removing site visitation requirements for goods 
and technology which are removed from the list unless 
objections described in this subsection are raised.
  [(2)(A) In carrying out this subsection, the Secretary shall 
conduct annual reviews of the performance levels of goods or 
technology--
          [(i) which are eligible for export under a 
        distribution license,
          [(ii) below which exports to the People's Republic of 
        China require only notification of the governments 
        participating in the group known as the Coordinating 
        Committee, and
          [(iii) below which no authority or permission to 
        export may be required under subsection (b)(2) or 
        (b)(3) of this section.
The Secretary shall make appropriate adjustments to such 
performance levels based on these reviews.
  [(B) In any case in which the Secretary receives a request 
which--
          [(i) is to revise the qualification requirements or 
        minimum thresholds of any goods eligible for export 
        under a distribution license, and
          [(ii) is made by an exporter of such goods, 
        representatives of an industry which produces such 
        goods, or a technical advisory committee established 
        under subsection (h) of this section,
the Secretary, after consulting with other appropriate 
Government agencies and technical advisory committees 
established under subsection (h) of this section, shall 
determine whether to make such revision, or some other 
appropriate revision, in such qualification requirements or 
minimum thresholds. In making this determination, the Secretary 
shall take into account the availability of the goods from 
sources outside the United States. The Secretary shall make a 
determination on a request made under this subparagraph within 
90 days after the date on which the request is filed. If the 
Secretary's determination pursuant to such a request is to make 
a revision, such revision shall be implemented within 120 days 
after the date on which the request is filed and shall be 
published in the Federal Register.
  [(h) Technical Advisory Committees.--(1) Upon written request 
by representatives of a substantial segment of any industry 
which produces any goods or technology subject to export 
controls under this section or being considered for such 
controls because of their significance to the national security 
of the United States, the Secretary shall appoint a technical 
advisory committee for any such goods or technology which the 
Secretary determines are difficult to evaluate because of 
questions concerning technical matters, worldwide availability, 
and actual utilization of production and technology, or 
licensing procedures. Each such committee shall consist of 
representatives of United States industry and Government, 
including the Departments of Commerce, Defense, and State, the 
intelligence community, and, in the discretion of the 
Secretary, other Government departments and agencies. No person 
serving on any such committee who is a representative of 
industry shall serve on such committee for more than four 
consecutive years.
  [(2) Technical advisory committees established under 
paragraph (1) shall advise and assist the Secretary, the 
Secretary of Defense, and any other department, agency, or 
official of the Government of the United States to which the 
President delegates authority under this Act, with respect to 
actions designed to carry out the policy set forth in section 
3(2)(A) of this Act. Such committees, where they have expertise 
in such matters, shall be consulted with respect to questions 
involving (A) technical matters, (B) worldwide availability and 
actual utilization of production technology, (C) licensing 
procedures which affect the level of export controls applicable 
to any goods or technology, (D) revisions of the control list 
(as provided in subsection (c)(4)), including proposed 
revisions of multilateral controls in which the United States 
participates, (E) the issuance of regulations, and (F) any 
other questions relating to actions designed to carry out the 
policy set forth in section 3(2)(A) of this Act. Nothing in 
this subsection shall prevent the Secretary or the Secretary of 
Defense from consulting, at any time, with any person 
representing industry or the general public, regardless of 
whether such person is a member of a technical advisory 
committee. Members of the public shall be given a reasonable 
opportunity, pursuant to regulations prescribed by the 
Secretary, to present evidence to such committees.
  [(3) Upon request of any member of any such committee, the 
Secretary may, if the Secretary determines it appropriate, 
reimburse such member for travel, subsistence, and other 
necessary expenses incurred by such member in connection with 
the duties of such member.
  [(4) Each such committee shall elect a chairman, and shall 
meet at least every three months at the call of the chairman, 
unless the chairman determines, in consultation with the other 
members of the committee, that such a meeting is not necessary 
to achieve the purposes of this subsection. Each such committee 
shall be terminated after a period of 2 years, unless extended 
by the Secretary for additional periods of 2 years. The 
Secretary shall consult each such committee with respect to 
such termination or extension of that committee.
  [(5) To facilitate the work of the technical advisory 
committees, the Secretary, in conjunction with other 
departments and agencies participating in the administration of 
this Act, shall disclose to each such committee adequate 
information, consistent with national security, pertaining to 
the reasons for the export controls which are in effect or 
contemplated for the goods or technology with respect to which 
that committee furnishes advice.
  [(6) Whenever a technical advisory committee certifies to the 
Secretary that goods or technology with respect to which such 
committee was appointed have become available in fact, to 
controlled countries, from sources outside the United States, 
including countries which participate with the United States in 
multilateral export controls, in sufficient quantity and of 
comparable quality so that requiring a validated license for 
the export of such goods or technology would be ineffective in 
achieving the purpose set forth in subsection (a) of this 
section, the technical advisory committee shall submit that 
certification to the Congress at the same time the 
certification is made to the Secretary, together with the 
documentation for the certification. The Secretary shall 
investigate the foreign availability so certified and, not 
later than 90 days after the certification is made, shall 
submit a report to the technical advisory committee and the 
Congress stating that--
          [(A) the Secretary has removed the requirement of a 
        validated license for the export of the goods or 
        technology, on account of the foreign availability,
          [(B) the Secretary has recommended to the President 
        that negotiations be conducted to eliminate the foreign 
        availability, or
          [(C) the Secretary has determined on the basis of the 
        investigation that the foreign availability does not 
        exist.
To the extent necessary, the report may be submitted on a 
classified basis. In any case in which the Secretary has 
recommended to the President that negotiations be conducted to 
eliminate the foreign availability, the President shall 
actively pursue such negotiations with the governments of the 
appropriate foreign countries. If, within 6 months after the 
Secretary submits such report to the Congress, the foreign 
availability has not been eliminated, the Secretary may not, 
after the end of that 6-month period, require a validated 
license for the export of the goods or technology involved. The 
President may extend the 6-month period described in the 
preceding sentence for an additional period of 12 months if the 
President certifies to the Congress that the negotiations 
involved are progressing and that the absence of the export 
control involved would prove detrimental to the national 
security of the United States. After an agreement is reached 
with a country pursuant to negotiations under this paragraph to 
eliminate foreign availability of goods or technology, the 
Secretary may not require a validated license for the export of 
such goods or technology to that country.
  [(i) Multilateral Export Controls.--Recognizing the 
ineffectiveness of unilateral controls and the importance of 
uniform enforcement measures to the effectiveness of 
multilateral controls, the President shall enter into 
negotiations with the governments participating in the group 
known as the Coordinating Committee (hereinafter in this 
subsection referred to as the ``Committee'') with a view toward 
accomplishing the following objectives:
          [(1) Enhanced public understanding of the Committee's 
        purpose and procedures, including publication of the 
        list of items controlled for export by agreement of the 
        Committee, together with all notes, understandings, and 
        other aspects of such agreement of the Committee, and 
        all changes thereto.
          [(2) Periodic meetings of high-level representatives 
        of participating governments for the purpose of 
        coordinating export control policies and issuing policy 
        guidance to the Committee.
          [(3) Strengthened legal basis for each government's 
        export control system, including, as appropriate, 
        increased penalties and statutes of limitations.
          [(4) Harmonization of export control documentation by 
        the participating governments to verify the movement of 
        goods and technology subject to controls by the 
        Committee.
          [(5) Improved procedures for coordination and 
        exchange of information concerning violations of the 
        agreement of the Committee.
          [(6) Procedures for effective implementation of the 
        agreement through uniform and consistent 
        interpretations of export controls agreed to by the 
        governments participating in the Committee.
          [(7) Coordination of national licensing and 
        enforcement efforts by governments participating in the 
        Committee, including sufficient technical expertise to 
        assess the licensing status of exports and to ensure 
        end-use verification.
          [(8) More effective procedures for enforcing export 
        controls, including adequate training, resources, and 
        authority for enforcement officers to investigate and 
        prevent illegal exports.
          [(9) Agreement to provide adequate resources to 
        enhance the functioning of individual national export 
        control systems and of the Committee.
          [(10) Improved enforcement and compliance with the 
        agreement through elimination of unnecessary export 
        controls and maintenance of an effective control list.
          [(11) Agreement to enhance cooperation among members 
        of the Committee in obtaining the agreement of 
        governments outside the Committee to restrict the 
        export of goods and technology on the International 
        Control List, to establish an ongoing mechanism in the 
        Committee to coordinate planning and implementation of 
        export control measures related to such agreements, and 
        to remove items from the International Control List if 
        such items continue to be available to controlled 
        countries or if the control of the items no longer 
        serves the common strategic objectives of the members 
        of the Committee.
For purposes of reviews of the International Control List, the 
President may include as advisors of the United States 
delegation to the Committee representatives of industry who are 
knowledgeable with respect to the items being reviewed.
  [(j) Commercial Agreements With Certain Countries.--(1) Any 
United States firm, enterprise, or other nongovernmental entity 
which enters into an agreement with any agency of the 
government of a controlled country, that calls for the 
encouragement of technical cooperation and that is intended to 
result in the export from the United States to the other party 
of unpublished technical data of United States origin, shall 
report to the Secretary the agreement with such agency in 
sufficient detail.
  [(2) The provisions of paragraph (1) shall not apply to 
colleges, universities, or other educational institutions.
  [(k) Negotiations With Other Countries.--The Secretary of 
State in consultation with the Secretary of Defense, the 
Secretary of Commerce, and the heads of other appropriate 
departments and agencies, shall be responsible for conducting 
negotiations with other countries, including those countries 
not participating in the group known as the Coordinating 
Committee, regarding their cooperation in restricting the 
export of goods and technology in order to carry out the policy 
set forth in section 3(9) of this Act, as authorized by 
subsection (a) of this section, including negotiations with 
respect to which goods and technology should be subject to 
multilaterally agreed export restrictions and what conditions 
should apply for exceptions from those restrictions. In cases 
where such negotiations produce agreements on export 
restrictions comparable in practice to those maintained by the 
Coordinating Committee, the Secretary shall treat exports, 
whether by individual or multiple licenses, to countries party 
to such agreements in the same manner as exports to members of 
the Coordinating Committee are treated, including the same 
manner as exports are treated under subsection (b)(2) of this 
section and section 10(o) of this Act.
  [(l) Diversion of Controlled Goods or Technology.--(1) 
Whenever there is reliable evidence, as determined by the 
Secretary, that goods or technology which were exported subject 
to national security controls under this section to a 
controlled country have been diverted to an unauthorized use or 
consignee in violation of the conditions of an export license, 
the Secretary for as long as that diversion continues--
          [(A) shall deny all further exports, to or by the 
        party or parties responsible for that diversion or who 
        conspired in that diversion, of any goods or technology 
        subject to national security controls under this 
        section, regardless of whether such goods or technology 
        are available from sources outside the United States; 
        and
          [(B) may take such additional actions under this Act 
        with respect to the party or parties referred to in 
        subparagraph (A) as the Secretary determines are 
        appropriate in the circumstances to deter the further 
        unauthorized use of the previously exported goods or 
        technology.
  [(2) As used in this subsection, the term ``unauthorized 
use'' means the use of United States goods or technology in the 
design, production, or maintenance of any item on the United 
States Munitions List, or the military use of any item on the 
International Control List of the Coordinating Committee.
  [(m) Goods Containing Controlled Parts and Components.--
Export controls may not be imposed under this section, or under 
any other provision of law, on a good solely on the basis that 
the good contains parts or components subject to export 
controls under this section if such parts or components--
          [(1) are essential to the functioning of the good,
          [(2) are customarily included in sales of the good in 
        countries other than controlled countries, and
          [(3) comprise 25 percent or less of the total value 
        of the good,
unless the good itself, if exported, would by virtue of the 
functional characteristics of the good as a whole make a 
significant contribution to the military potential of a 
controlled country which would prove detrimental to the 
national security of the United States.
  [(n) Security Measures.--The Secretary and the Commissioner 
of Customs, consistent with their authorities under section 
12(a) of this Act, and in consultation with the Director of the 
Federal Bureau of Investigation, shall provide advice and 
technical assistance to persons engaged in the manufacture or 
handling of goods or technology subject to export controls 
under this section to develop security systems to prevent 
violations or evasions of those export controls.
  [(o) Recordkeeping.--The Secretary, the Secretary of Defense, 
and any other department or agency consulted in connection with 
a license application under this Act or a revision of a list of 
goods or technology subject to export controls under this Act, 
shall make and keep records of their respective advice, 
recommendations, or decisions in connection with any such 
license application or revision, including the factual and 
analytical basis of the advice, recommendations, or decisions.
  [(p) National Security Control Office.--To assist in carrying 
out the policy and other authorities and responsibilities of 
the Secretary of Defense under this section, there is 
established in the Department of Defense a National Security 
Control Office under the direction of the Under Secretary of 
Defense Policy. The Secretary of Defense may delegate to that 
office such of those authorities and responsibilities, together 
with such ancillary functions, as the Secretary of Defense 
considers appropriate.
  [(q) Exclusion for Agricultural Commodities.--This section 
does not authorize export controls on agricultural commodities, 
including fats, oils, and animal hides and skins.

                        [foreign policy controls

  [Sec. 6. (a) Authority.--(1) In order to carry out the policy 
set forth in paragraph (2)(B), (7), (8), or (13) of section 3 
of this Act, the President may prohibit or curtail the 
exportation of any goods, technology, or other information 
subject to the jurisdiction of the United States or exported by 
any person subject to the jurisdiction of the United States, to 
the extent necessary to further significantly the foreign 
policy of the United States or to fulfill its declared 
international obligations. The authority granted by this 
subsection shall be exercised by the Secretary, in consultation 
with the Secretary of State, the Secretary of Defense, the 
Secretary of Agriculture, the Secretary of the Treasury, the 
United States Trade Representative, and such other departments 
and agencies as the Secretary considers appropriate, and shall 
be implemented by means of export licenses issued by the 
Secretary.
  [(2) Any export control imposed under this section shall 
apply to any transaction or activity undertaken with the intent 
to evade that export control, even if that export control would 
not otherwise apply to that transaction or activity.
  [(3) Export controls maintained for foreign policy purposes 
shall expire on December 31, 1979, or one year after 
imposition, whichever is later, unless extended by the 
President in accordance with subsections (b) and (f). Any such 
extension and any subsequent extension shall not be for a 
period of more than a year.
  [(4) Whenever the Secretary denies any export license under 
this subsection, the Secretary shall specify in the notice to 
the applicant of the denial of such license that the license 
was denied under the authority contained in this subsection, 
and the reasons for such denial, with reference to the criteria 
set forth in subsection (b) of this section. The Secretary 
shall also include in such notice what, if any, modifications 
in or restrictions on the goods or technology for which the 
license was sought would allow such export to be compatible 
with controls implemented under this section, or the Secretary 
shall indicate in such notice which officers and employees of 
the Department of Commerce who are familiar with the 
application will be made reasonably available to the applicant 
for consultation with regard to such modifications or 
restrictions, if appropriate.
  [(5) In accordance with the provisions of section 10 of this 
Act, the Secretary of State shall have the right to review any 
export license application under this section which the 
Secretary of State requests to review.
  [(6) Before imposing, expanding, or extending export controls 
under this section on exports to a country which can use goods, 
technology, or information available from foreign sources and 
so incur little or no economic costs as a result of the 
controls, the President should, through diplomatic means, 
employ alternatives to export controls which offer 
opportunities of distinguishing the United States from, and 
expressing the displeasure of the United States with, the 
specific actions of that country in response to which the 
controls are proposed. Such alternatives include private 
discussions with foreign leaders, public statements in 
situations where private diplomacy is unavailable or not 
effective, withdrawal of ambassadors, and reduction of the size 
of the diplomatic staff that the country involved is permitted 
to have in the United States.
  [(b) Criteria.--(1) Subject to paragraph (2) of this 
subsection, the President may impose, extend, or expand export 
controls under this section only if the President determines 
that--
          [(A) such controls are likely to achieve the intended 
        foreign policy purpose, in light of other factors, 
        including the availability from other countries of the 
        goods or technology proposed for such controls, and 
        that foreign policy purpose cannot be achieved through 
        negotiations or other alternative means;
          [(B) the proposed controls are compatible with the 
        foreign policy objectives of the United States and with 
        overall United States policy toward the country to 
        which exports are to be subject to the proposed 
        controls;
          [(C) the reaction of other countries to the 
        imposition, extension, or expansion of such export 
        controls by the United States is not likely to render 
        the controls ineffective in achieving the intended 
        foreign policy purpose or to be counterproductive to 
        United States foreign policy interests;
          [(D) the effect of the proposed controls on the 
        export performance of the United States, the 
        competitive position of the United States in the 
        international economy, the international reputation of 
        the United States as a supplier of goods and 
        technology, or on the economic well-being of individual 
        United States companies and their employees and 
        communities does not exceed the benefit to United 
        States foreign policy objectives; and
          [(E) the United States has the ability to enforce the 
        proposed controls effectively.
  [(2) With respect to those export controls in effect under 
this section on the date of the enactment of the Export 
Administration Amendments Act of 1985, the President, in 
determining whether to extend those controls, as required by 
subsection (a)(3) of this section, shall consider the criteria 
set forth in paragraph (1) of this subsection and shall 
consider the foreign policy consequences of modifying the 
export controls.
  [(c) Consultation With Industry.--The Secretary in every 
possible instance shall consult with and seek advice from 
affected United States industries and appropriate advisory 
committees established under section 135 of the Trade Act of 
1974 before imposing any export control under this section. 
Such consultation and advice shall be with respect to the 
criteria set forth in subsection (b)(1) and such other matters 
as the Secretary considers appropriate.
  [(d) Consultation With Other Countries.--When imposing export 
controls under this section, the President shall, at the 
earliest appropriate opportunity, consult with the countries 
with which the United States maintains export controls 
cooperatively, and with such other countries as the President 
considers appropriate, with respect to the criteria set forth 
in subsection (b)(1) and such other matters as the President 
considers appropriate.
  [(e) Alternative Means.--Before resorting to the imposition 
of export controls under this section, the President shall 
determine that reasonable efforts have been made to achieve the 
purposes of the controls through negotiations or other 
alternative means.
  [(f) Consultation With the Congress.--(1) The president may 
impose or expand export controls under this section, or extend 
such controls as required by subsection (a)(3) of this section, 
only after consultation with the Congress, including the 
Committee on Foreign Affairs of the House of Representatives 
and the Committee on Banking, Housing, and Urban Affairs of the 
Senate.
  [(2) The President may not impose, expand, or extend export 
controls under this section until the President has submitted 
to the Congress a report--
          [(A) specifying the purpose of the controls;
          [(B) specifying the determinations of the President 
        (or, in the case of those export controls described in 
        subsection (b)(2), the considerations of the President) 
        with respect to each of the criteria set forth in 
        subsection (b)(1), the bases for such determinations 
        (or considerations), and any possible adverse foreign 
        policy consequences of the controls;
          [(C) describing the nature, the subjects, and the 
        results of, or the plans for, the consultation with 
        industry pursuant to subsection (c) and with other 
        countries pursuant to subsection (d);
          [(D) specifying the nature and results of any 
        alternative means attempted under subsection (e), or 
        the reasons for imposing, expanding, or extending the 
        controls without attempting any such alternative means; 
        and
          [(E) describing the availability from other countries 
        of goods or technology comparable to the goods or 
        technology subject to the proposed export controls, and 
        describing the nature and results of the efforts made 
        pursuant to subsection (h) to secure the cooperation of 
        foreign governments in controlling the foreign 
        availability of such comparable goods or technology.
Such report shall also indicate how such controls will further 
significantly the foreign policy of the United States or will 
further its declared international obligations.
  [(3) To the extent necessary to further the effectiveness of 
the export controls portions of a report required by paragraph 
(2) may be submitted to the Congress on a classified basis, and 
shall be subject to the provisions of section 12(c) of this 
Act.
  [(4) In the case of export controls under this section which 
prohibit or curtail the export of any agricultural commodity, a 
report submitted pursuant to paragraph (2) shall be deemed to 
be the report required by section 7(g)(3)(A) of this Act.
  [(5) In addition to any written report required, under this 
section, the Secretary, not less frequently than annually, 
shall present in oral testimony before the Committee on 
Banking, Housing, and Urban Affairs of the Senate and the 
Committe on Foreign Affairs of the House of Representatives a 
report on policies and actions taken by the Government to carry 
out the provisions of this section.
  [(g) Exclusion for Medicine and Medical Supplies and for 
Certain Food Exports.--This section does not authorize export 
controls on medicine or medical supplies. This section also 
does not authorize export controls on donations of goods 
(including, but not limited to, food, educational materials, 
seeds and hand tools, medicines and medical supplies, water 
resources equipment, clothing and shelter materials, and basic 
household supplies) that are intended to meet basic human 
needs. Before export controls on food are imposed, expanded, or 
extended under this section, the Secretary shall notify the 
Secretary of State in the case of export controls applicable 
with respect to any developed country and shall notify the 
Administrator of the Agency for International Development in 
the case of export controls applicable with respect to any 
developing country. The Secretary of State with respect to 
developed countries, and the Administrator with respect to 
developing countries, shall determine whether the proposed 
export control on food would cause measurable malnutrition and 
shall inform the Secretary of that determination. If the 
Secretary is informed that the proposed export controls on food 
would cause measurable malnutrition, then those controls may 
not be imposed, expanded, or extended, as the case may be, 
unless the President determines that those controls are 
necessary to protect the national security interest of the 
United States, or unless the President determines that 
arrangements are insufficient to ensure that the food will 
reach those most in need. Each such determination by the 
Secretary of State or the Administrator of the Agency for 
International Development, and any such determination by the 
President, shall be reported to the Congress, together with a 
statement of the reasons for that determination. It is the 
intent of Congress that the President not impose export 
controls under this section on any goods or technology if he 
determines that the principal effect of the export of such 
goods or technology would be to help meet basic human needs. 
The subsection shall not be construed to prohibit the President 
from imposing restrictions on the export of medicine or medical 
supplies or of food under the International Emergency Economic 
Powers Act. This subsection shall not apply to any export 
control on medicine, medical supplies, or food, except for 
donations, which is in effect on the date of the enactment of 
the Export Administration Amendments Act of 1985. 
Notwithstanding the proceding provisions of this subsection, 
the President may impose export controls under this section on 
medicine, medical supplies, food, and donations of goods in 
order to carry out the policy set forth in paragraph (13) of 
section 3 of this Act.
  [(h) Foreign Availability.--(1) In applying export controls 
under this section, the President shall take all feasible steps 
to initiate and conclude negotiations with appropriate foreign 
governments for the purpose of securing the cooperation of such 
foreign governments in controlling the export to countries and 
consigness to which the United States export controls apply of 
any goods or technology comparable to goods or technology 
controlled under this section.
  [(2) Before extending any export control pursuant to 
subsection (a)(3) of this section, the President shall evaluate 
the results of his actions under paragraph (1) of this 
subsection and shall include the results of that evaluation in 
his report to the Congress pursuant to subsection (f) of this 
section.
  [(3) If, within 6 months after the date on which export 
controls under this section are imposed or expanded, or within 
6 months after the date of the enactment of the Export 
Administration Amendments Act of 1985 in the case of export 
controls in effect on such date of enactment, the President's 
efforts under paragraph (1) are not successful in securing the 
cooperation of foreign governments described in paragraph (1) 
with respect to those export controls, the Secretary shall 
thereafter take into account the foreign availability of the 
goods or technology subject to the export controls. If the 
Secretary affirmatively determines that a good or technology 
subject to the export controls is available in sufficient 
quantity and comparable quality from sources outside the United 
States to countries subject to the export controls so that 
denial of an export license would be ineffective in achieving 
purposes of the controls, then the Secretary shall, during the 
period of such foreign availability, approve any license 
application which is required for the export of the good or 
technology and which meets all requirements for such a license. 
The Secretary shall remove the good or technology from the list 
established pursuant to subsection (1) of this section if the 
Secretary determines that such action is appropriate.
  [(4) In making a determination of foreign availability under 
paragraph (3) of this subsection, the Secretary shall follow 
the procedures set forth in section 5(f)(3) of this Act.
  [(i) International Obligations.--The provisions of 
subsections (b), (c), (d), (e), (g), and (h) shall not apply in 
any case in which the President exercises the authority 
contained in this section to impose export controls, or to 
approve or deny export license applications, in order to 
fulfill obligations of the United States pursuant to treaties 
to which the United States is a party or pursuant to other 
international agreements.
  [(j) Countries Supporting International Terrorism.--(1) A 
validated license shall be required for the export of goods or 
technology to a country if the Secretary of State has made the 
following determinations:
          [(A) The government of such country has repeatedly 
        provided support for acts of international terrorism.
          [(B) The export of such goods or technology could 
        make a significant contribution to the military 
        potential of such country, including its military 
        logistics capability, or could enhance the ability of 
        such country to support acts of international 
        terrorism.
  [(2) The Secretary and the Secretary of State shall notify 
the Committee on Foreign Affairs of the House of 
Representatives and the Committee on Banking, Housing, and 
Urban Affairs and the Committee on Foreign Relations of the 
Senate at least 30 days before issuing any validated license 
required by paragraph (1).
  [(3) Each determination of the Secretary of State under 
paragraph (1)(A), including each determination in effect on the 
date of the enactment of the Antiterrorism and Arms Export 
Amendments Act of 1989, shall be published in the Federal 
Register.
  [(4) A determination made by the Secretary of State under 
paragraph (1)(A) may not be rescinded unless the President 
submits to the Speaker of the House of Representatives and the 
chairman of the Committee on Banking, Housing, and Urban 
Affairs and the chairman of the Committee on Foreign Relations 
of the Senate--
          [(A) before the proposed rescission would take 
        effect, a report certifying that--
                  [(i) there has been a fundamental change in 
                the leadership and policies of the government 
                of the country concerned;
                  [(ii) that government is not supporting acts 
                of international terrorism; and
                  [(iii) that government has provided 
                assurances that it will not support acts of 
                international terrorism in the future; or
          [(B) at least 45 days before the proposed rescission 
        would take effect, a report justifying the rescission 
        and certifying that--
                  [(i) the government concerned has not 
                provided any support for international 
                terrorism during the preceding 6-month period; 
                and
                  [(ii) the government concerned has provided 
                assurances that it will not support acts of 
                international terrorism in the future.
          [(5)(A) As used in paragraph (1), the term 
        ``repeatedly provided support for acts of international 
        terrorism'' shall include the recurring use of any part 
        of the territory of the country as a sanctuary for 
        terrorists or terrorist organizations.
          [(B) In this paragraph--
                  [(i) the term ``territory of a country'' 
                means the land, waters, and airspace of the 
                country; and
                  [(ii) the term ``sanctuary'' means an area in 
                the territory of a country--
                          [(I) that is used by a terrorist or 
                        terrorist organization--
                                  [(aa) to carry out terrorist 
                                activities, including training, 
                                financing, and recruitment; or
                                  [(bb) as a transit point; and
                          [(II) the government of which 
                        expressly consents to, or with 
                        knowledge, allows, tolerates, or 
                        disregards such use of its territory.
          [(6) The Secretary and the Secretary of State shall 
        include in the notification required by paragraph (2)--
                  [(A) a detailed description of the goods or 
                services to be offered, including a brief 
                description of the capabilities of any article 
                for which a license to export is sought;
                  [(B) the reasons why the foreign country or 
                international organization to which the export 
                or transfer is proposed to be made needs the 
                goods or services which are the subject of such 
                export or transfer and a description of the 
                manner in which such country or organization 
                intends to use such articles, services, or 
                design and construction services;
                  [(C) the reasons why the proposed export or 
                transfer is in the national interest of the 
                United States;
                  [(D) an analysis of the impact of the 
                proposed export or transfer on the military 
                capabilities of the foreign country or 
                international organization to which such export 
                or transfer would be made;
                  [(E) an analysis of the manner in which the 
                proposed export would affect the relative 
                military strengths of countries in the region 
                to which the goods or services which are the 
                subject of such export would be delivered and 
                whether other countries in the region have 
                comparable kinds and amounts of articles, 
                services, or design and construction services; 
                and
                  [(F) an analysis of the impact of the 
                proposed export or transfer on the United 
                States relations with the countries in the 
                region to which the goods or services which are 
                the subject of such export would be delivered.
  [(k) Negotiations With Other Countries.--
          [(1) Countries participating in certain agreements.--
        The Secretary of State, in consultation with the 
        Secretary, the Secretary of Defense, and the heads of 
        other appropriate departments and agencies, shall be 
        responsible for conducting negotiations with those 
        countries participating in the groups known as the 
        Coordinating Committee, the Missile Technology Control 
        Regime, the Australia Group, and the Nuclear Suppliers' 
        Group, regarding their cooperation in restricting the 
        export of goods and technology in order to carry out--
                  [(A) the policy set forth in section 3(2)(B) 
                of this Act, and
                  [(B) United States policy opposing the 
                proliferation of chemical, biological, nuclear, 
                and other weapons and their delivery systems, 
                and effectively restricting the export of dual 
                use components of such weapons and their 
                delivery systems, in accordance with this 
                subsection and subsections (a) and (l).
        Such negotiations shall cover, among other issues, 
        which goods and technology should be subject to 
        multilaterally agreed export restrictions, and the 
        implementation of the restrictions consistent with the 
        principles identified in section 5(b)(2)(C) of this 
        Act.
          [(2) Other countries.--The Secretary of State, in 
        consultation with the Secretary, the Secretary of 
        Defense, and the heads of other appropriate departments 
        and agencies, shall be responsible for conducting 
        negotiations with countries and groups of countries not 
        referred to in paragraph (1) regarding their 
        cooperation in restricting the export of goods and 
        technology consistent with purposes set forth in 
        paragraph (1). In cases where such negotiations produce 
        agreements on export restrictions that the Secretary, 
        in consultation with the Secretary of State and the 
        Secretary of Defense, determines to be consistent with 
        the principles identified in section 5(b)(2)(C) of this 
        Act, the Secretary may treat exports, whether by 
        individual or multiple licenses, to countries party to 
        such agreements in the same manner as exports are 
        treated to countries that are MTCR adherents.
          [(3) Review of determinations.--The Secretary shall 
        annually review any determination under paragraph (2) 
        with respect to a country. For each such country which 
        the Secretary determines is not meeting the 
        requirements of an effective export control system in 
        accordance with section 5(a)(4)(D), the Secretary shall 
        restrict or eliminate any preferential licensing 
        treatment for exports to that country provided under 
        this subsection.
  [(l) Missile Technology.--
          [(1) Determination of controlled items.--The 
        Secretary, in consultation with the Secretary of State, 
        the Secretary of Defense, and the heads of other 
        appropriate departments and agencies--
                  [(A) shall establish and maintain, as part of 
                the control list established under this 
                section, a list of all dual use goods and 
                technology on the MTCR Annex; and
                  [(B) may include, as part of the control list 
                established under this section, goods and 
                technology that would provide a direct and 
                immediate impact on the development of missile 
                delivery systems and are not included in the 
                MTCR Annex but which the United States is 
                proposing to the other MTCR adherents to have 
                included in the MTCR Annex.
          [(2) Requirement of individual validated licenses.--
        The Secretary shall require an individual validated 
        license for--
                  [(A) any export of goods or technology on the 
                list established under paragraph (1) to any 
                country; and
                  [(B) any export of goods or technology that 
                the exporter knows is destined for a project or 
                facility for the design, development, or 
                manufacture of a missile in a country that is 
                not an MTCR adherent.
          [(3) Policy of denial of licenses.--(A) Licenses 
        under paragraph (2) should in general be denied if the 
        ultimate consignee of the goods or technology is a 
        facility in a country that is not an adherent to the 
        Missile Technology Control Regime and the facility is 
        designed to develop or build missiles.
          [(B) Licenses under paragraph (2) shall be denied if 
        the ultimate consignee of the goods or technology is a 
        facility in a country the government of which has been 
        determined under subsection (j) to have repeatedly 
        provided support for acts of international terrorism.
          [(4) Consultation with other departments.--(A) A 
        determination of the Secretary to approve an export 
        license under paragraph (2) for the export of goods or 
        technology to a country of concern regarding missile 
        proliferation may be made only after consultation with 
        the Secretary of Defense and the Secretary of State for 
        a period of 20 days. The countries of concern referred 
        to in the preceding sentence shall be maintained on a 
        classified list by the Secretary of State, in 
        consultation with the Secretary and the Secretary of 
        Defense.
          [(B) Should the Secretary of Defense disagree with 
        the determination of the Secretary to approve an export 
        license to which subparagraph (A) applies, the 
        Secretary of Defense shall so notify the Secretary 
        within the 20 days provided for consultation on the 
        determination. The Secretary of Defense shall at the 
        same time submit the matter to the President for 
        resolution of the dispute. The Secretary shall also 
        submit the Secretary's recommendation to the President 
        on the license application.
          [(C) The President shall approve or disapprove the 
        export license application within 20 days after 
        receiving the submission of the Secretary of Defense 
        under subparagraph (B).
          [(D) Should the Secretary of Defense fail to notify 
        the Secretary within the time period prescribed in 
        subparagraph (B), the Secretary may approve the license 
        application without awaiting the notification by the 
        Secretary of Defense. Should the President fail to 
        notify the Secretary of his decision on the export 
        license application within the time period prescribed 
        in subparagraph (C), the Secretary may approve the 
        license application without awaiting the President's 
        decision on the license application.
          [(E) Within 10 days after an export license is issued 
        under this subsection, the Secretary shall provide to 
        the Secretary of Defense and the Secretary of State the 
        license application and accompanying documents issued 
        to the applicant, to the extent that the relevant 
        Secretary indicates the need to receive such 
        application and documents.
          [(5) Information sharing.--The Secretary shall 
        establish a procedure for information sharing with 
        appropriate officials of the intelligence community, as 
        determined by the Director of Central Intelligence, and 
        other appropriate Government agencies, that will ensure 
        effective monitoring of transfers of MTCR equipment or 
        technology and other missile technology.
  [(m) Chemical and Biological Weapons.--
          [(1) Establishment of list.--The Secretary, in 
        consultation with the Secretary of State, the Secretary 
        of Defense, and the heads of other appropriate 
        departments and agencies, shall establish and maintain, 
        as part of the list maintained under this section, a 
        list of goods and technology that would directly and 
        substantially assist a foreign government or group in 
        acquiring the capability to develop, produce, 
        stockpile, or deliver chemical or biological weapons, 
        the licensing of which would be effective in barring 
        acquisition or enhancement of such capability.
          [(2) Requirement for validated licenses.--The 
        Secretary shall require a validated license for any 
        export of goods or technology on the list established 
        under paragraph (1) to any country of concern.
          [(3) Countries of concern.--For purposes of paragraph 
        (2), the term ``country of concern'' means any country 
        other than--
                  [(A) a country with whose government the 
                United States has entered into a bilateral or 
                multilateral arrangement for the control of 
                goods or technology on the list established 
                under paragraph (1); and
                  [(B) such other countries as the Secretary of 
                State, in consultation with the Secretary and 
                the Secretary of Defense, shall designate 
                consistent with the purposes of the Chemical 
                and Biological Weapons Control and Warfare 
                Elimination Act of 1991.
  [(n) Crime Control Instruments.--(1) Crime control and 
detection instruments and equipment shall be approved for 
export by the Secretary only pursuant to a validated export 
license. Notwithstanding any other provision of this Act--
          [(A) any determination of the Secretary of what goods 
        or technology shall be included on the list established 
        pursuant to subsection (1) of this section as a result 
        of the export restrictions imposed by this subsection 
        shall be made with the concurrence of the Secretary of 
        State, and
          [(B) any determination of the Secretary to approve or 
        deny an export license application to export crime 
        control or detection instruments or equipment shall be 
        made in concurrence with the recommendations of the 
        Secretary of State submitted to the Secretary with 
        respect to the application pursuant to section 10(e) of 
        this Act,
except that, if the Secretary does not agree with the Secretary 
of State with respect to any determination under subparagraph 
(A) or (B), the matter shall be referred to the President for 
resolution.
  [(2) The provisions of this subsection shall not apply with 
respect to exports to countries which are members of the North 
Atlantic Treaty Organization or to Japan, Australia, or New 
Zealand, or to such other countries as the President shall 
designate consistent with the purposes of this subsection and 
section 502B of the Foreign Assistance Act of 1961.
  [(o) Control List.--The Secretary shall establish and 
maintain, as part of the control list, a list of any goods or 
technology subject to export controls under this section, and 
the countries to which such controls apply. The Secretary shall 
clearly identify on the control list which goods or technology, 
and which countries or destinations, are subject to which types 
of controls under this section. Such list shall consist of 
goods and technology identified by the Secretary of State, with 
the concurrence of the Secretary. If the Secretary and the 
Secretary of State are unable to agree on the list, the matter 
shall be referred to the President. Such list shall be reviewed 
not less frequently than every three years in the case of 
controls maintained cooperatively with other countries, and 
annually in the case of all other controls, for the purpose of 
making such revisions as are necessary in order to carry out 
this section. During the course of such review, an assessment 
shall be made periodically of the availability from sources 
outside the United States, or any of its territories or 
possessions, of goods and technology comparable to those 
controlled for export from the United States under this 
section.
  [(p) Effect on Existing Contracts and Licenses.--The 
President may not, under this section, prohibit or curtail the 
export or reexport of goods, technology, or other information--
          [(1) in performance of a contract or agreement 
        entered into before the date on which the President 
        reports to the Congress, pursuant to subsection (f) of 
        this section, his intention to impose controls on the 
        export or reexport of such goods, technology, or other 
        information, or
          [(2) under a validated license or other authorization 
        issued under this Act,
unless and until the President determines and certifies to the 
Congress that--
          [(A) a breach of the peace poses a serious and direct 
        threat to the strategic interest of the United States,
          [(B) the prohibition or curtailment of such 
        contracts, agreements, licenses, or authorizations will 
        be instrumental in remedying the situation posing the 
        direct threat, and
          [(C) the export controls will continue only so long 
        as the direct threat persists.
  [(q) Extension of Certain Controls.--Those export controls 
imposed under this section with respect to South Africa which 
were in effect on February 28, 1982, and ceased to be effective 
on March 1, 1982, September 15, 1982, or January 20, 1983, 
shall become effective on the date of the enactment of this 
subsection, and shall remain in effect until 1 year after such 
date of enactment. At the end of that 1-year period, any of 
those controls made effective by this subsection may be 
extended by the President in accordance with subsections (b) 
and (f) of this section.
  [(r) Expanded Authority to Impose Controls.--(1) In any case 
in which the President determines that it is necessary to 
impose controls under this section without any limitation 
contained in subsection (c), (d), (e), (g), (h), or (m) of this 
section, the President may impose those controls only if the 
President submits that determination to the Congress, together 
with a report pursuant to subsection (f) of this section with 
respect to the proposed controls, and only if a law is enacted 
authorizing the imposition of those controls. If a joint 
resolution authorizing the imposition of those controls is 
introduced in either House of Congress within 30 days after the 
Congress receives the determination and report of the 
President, that joint resolution shall be referred to the 
Committee on Banking, Housing, and Urban Affairs of the Senate 
and to the appropriate committee of the House of 
Representatives. If either such committee has not reported the 
joint resolution at the end of 30 days after its referral, the 
committee shall be discharged from further consideration of the 
joint resolution.
  [(2) For purposes of this subsection, the term ``joint 
resolution'' means a joint resolution the matter after the 
resolving clause of which is as follows: ``That the Congress, 
having received on a determination of the President under 
section 6(o)(1) of the Export Administration Act of 1979 with 
respect to the export controls which are set forth in the 
report submitted to the Congress with that determination, 
authorizes the President to impose those export controls.'', 
with the date of the receipt of the determination and report 
inserted in the blank.
  [(3) In the computation of the periods of 30 days referred to 
in paragraph (1), there shall be excluded the days on which 
either House of Congress is not in session because of an 
adjournment of more than 3 days to a day certain or because of 
an adjournment of the Congress sine die.
  [(s) Spare Parts.--(1) At the same time as the President 
imposes or expands export controls under this section, the 
President shall determine whether such export controls will 
apply to replacement parts for parts in goods subject to such 
export controls.
  [(2) With respect to export controls imposed under this 
section before the date of the enactment of this subsection, an 
individual validated export license shall not be required for 
replacement parts which are exported to replace on a one-for-
one basis parts that were in a good that was lawfully exported 
from the United States, unless the President determines that 
such a license should be required for such parts.

                         [short supply controls

  [Sec. 7. (a) Authority.--(1) In order to carry out the policy 
set forth in section 3(2)(C) of this Act, the President may 
prohibit or curtail the export of any goods subject to the 
jurisdiction of the United States or exported by any person 
subject to the jurisdiction of the United States. In curtailing 
exports to carry out the policy set forth in section 3(2)(C) of 
this Act, the President shall allocate a portion of export 
licenses on the basis of factors other than a prior history of 
exportation. Such factors shall include the extent to which a 
country engages in equitable trade practices with respect to 
United States goods and treats the United States equitably in 
times of short supply.
  [(2) Upon imposing quantitative restrictions on exports of 
any goods to carry out the policy set forth in section 3(2)(C) 
of this Act, the Secretary shall include in a notice published 
in the Federal Register with respect to such restrictions an 
invitation to all interested parties to submit written comments 
within 15 days from the date of publication on the impact of 
such restrictions and the method of licensing used to implement 
them.
  [(3) In imposing export controls under this section, the 
President's authority shall include, but not be limited to, the 
imposition of export license fees.
  [(b) Monitoring.--(1) In order to carry out the policy set 
forth in section 3(2)(C) of this Act, the Secretary shall 
monitor exports, and contracts for exports, of any good (other 
than a commodity which is subject to the reporting requirements 
of section 812 of the Agricultural Act of 1970) when the volume 
of such exports in relation to domestic supply contributes, or 
may contribute, to an increase in domestic prices or a domestic 
shortage, and such price increase or shortage has, or may have, 
a serious adverse impact on the economy or any sector thereof. 
Any such monitoring shall commence at a time adequate to assure 
that the monitoring will result in a data base sufficient to 
enable policies to be developed, in accordance with section 
3(2)(C) of this Act, to mitigate a short supply situation or 
serious inflationary price rise or, if export controls are 
needed, to permit imposition of such controls in a timely 
manner. Information which the Secretary requires to be 
furnished in effecting such monitoring shall be confidential, 
except as provided in paragraph (2) of this subsection.
  [(2) The results of such monitoring shall, to the extent 
practicable, be aggregated and included in weekly reports 
setting forth, with respect to each item monitored, actual and 
anticipated exports, the destination by country, and the 
domestic and worldwide price, supply, and demand. Such reports 
may be made monthly if the Secretary determines that there is 
insufficient information to justify weekly reports.
  [(3) The Secretary shall consult with the Secretary of Energy 
to determine whether monitoring or export controls under this 
section are warranted with respect to exports of facilities, 
machinery, or equipment normally and principally used, or 
intended to be used, in the production, conversion, or 
transportation of fuels and energy (except nuclear energy), 
including, but not limited to, drilling rigs, platforms, and 
equipment; petroleum refineries, natural gas processing, 
liquefaction, and gasification plants; facilities for 
production of synthetic natural gas or synthetic crude oil; oil 
and gas pipelines, pumping stations, and associated equipment; 
and vessels for transporting oil, gas, coal, and other fuels.
  [(c) Petitions for Monitoring or Controls.--(1)(A) any 
entity, including a trade association, firm, or certified or 
recognized union or group of workers, that is representative of 
an industry or a substantial segment of an industry that 
processes metallic materials capable of being recycled may 
transmit a written petition to the Secretary requesting the 
monitoring of exports or the imposition of export controls, or 
both, with respect to any such material, in order to carry out 
the policy set forth in section 3(2)(C) of this Act.
  [(B) Each petition shall be in such form as the Secretary 
shall prescribe and shall contain information in support of the 
action requested. The petition shall include any information 
reasonably available to the petitioner indicating that each of 
the criteria set forth in paragraph (3)(A) of this subsection 
is satisfied.
  [(2) Within 15 days after receipt of any petition described 
in paragraph (1), the Secretary shall publish a notice in the 
Federal Register. The notice shall--
          [(A) include the name of the material that is the 
        subject of the petition,
          [(B) include the Schedule B number of the material as 
        set forth in the Statistical Classification of Domestic 
        and Foreign Commodities Exported from the United 
        States,
          [(C) indicate whether the petitioner is requesting 
        that controls or monitoring, or both, be imposed with 
        respect to the exportation of such material, and
          [(D) provide that interested persons shall have a 
        period of 30 days beginning on the date of publication 
        of such notice to submit to the Secretary written data, 
        views or arguments, with or without opportunity for 
        oral presentation, with respect to the matter involved.
At the request of the petitioner or any other entity described 
in paragraph (1)(A) with respect to the material that is the 
subject of the petition, or at the request of any entity 
representative of producers or exporters of such material, the 
Secretary shall conduct public hearings with respect to the 
subject of the petition, in which case the 30-day period may be 
extended to 45 days.
  [(3)(A) Within 45 days after the end of the 30- or 45-day 
period described in paragraph (2), as the case may be, the 
Secretary shall determine whether to impose monitoring or 
controls, or both, on the export of the material that is the 
subject of the petition, in order to carry out the policy set 
forth in section 3(2)(C) of this Act. In making such 
determination, the Secretary shall determine whether--
          [(i) there has been a significant increase, in 
        relation to a specific period of time, in exports of 
        such material in relation to domestic supply and 
        demand;
          [(ii) there has been a significant increase in the 
        domestic price of such material or a domestic shortage 
        of such material relative to demand;
          [(iii) exports of such material are as important as 
        any other cause of a domestic price increase or 
        shortage relative to demand found under clause (ii);
          [(iv) a domestic price increase or shortage relative 
        to demand found under clause (ii) has significantly 
        adversely affected or may significantly adversely 
        affect the national economy or any sector thereof, 
        including a domestic industry; and
          [(v) monitoring or controls, or both, are necessary 
        in order to carry out the policy set forth in section 
        3(2)(C) of this Act.
  [(B) The Secretary shall publish in the Federal Register a 
detailed statement of the reasons for the Secretary's 
determination pursuant to subparagraph (A) of whether to impose 
monitoring or controls, or both, including the findings of fact 
in support of that determination.
  [(4) Within 15 days after making a determination under 
paragraph (3) to impose monitoring or controls on the export of 
a material, the Secretary shall publish in the Federal Register 
proposed regulations with respect to such monitoring or 
controls. Within 30 days after the publication of such proposed 
regulations, and after considering any public comments on the 
proposed regulations, the Secretary shall publish and implement 
final regulations with respect to such monitoring or controls.
  [(5) For purposes of publishing notices in the Federal 
Register and scheduling public hearings pursuant to this 
subsection, the Secretary may consolidate petitions, and 
responses to such petitions which involve the same or related 
materials.
  [(6) If a petition with respect to a particular material or 
group of materials has been considered in accordance with all 
the procedures prescribed in this subsection, the Secretary may 
determine, in the absence of significantly changed 
circumstances, that any other petition with respect to the same 
material or group of materials which is filed within 6 months 
after the consideration of the prior petition has been 
completed does not merit complete consideration under this 
subsection.
  [(7) The procedures and time limits set forth in this 
subsection with respect to a petition filed under this 
subsection shall take precedence over any review undertaken at 
the initiative of the Secretary with respect to the same 
subject as that of the petition.
  [(8) The Secretary may impose monitoring or controls, on a 
temporary basis, on the export of a metallic material after a 
petition is filed under paragraph (1)(A) with respect to that 
material but before the Secretary makes a determination under 
paragraph (3) with respect to that material only if--
          [(A) the failure to take such temporary action would 
        result in irreparable harm to the entity filing the 
        petition, or to the national economy or segment 
        thereof, including a domestic industry, and
          [(B) the Secretary considers such action to be 
        necessary to carry out the policy set forth in section 
        3(2)(C) of this Act.
  [(9) The authority under this subsection shall not be 
construed to affect the authority of the Secretary under any 
other provision of this Act, except that if the Secretary 
determines, on the Secretary's own initiative, to impose 
monitoring or controls, or both, on the export of metallic 
materials capable of being recycled, under the authority of 
this section, the Secretary shall publish the reasons for such 
action in accordance with paragraph (3) (A) and (B) of this 
subsection.
  [(10) Nothing contained in this subsection shall be construed 
to preclude submission on a confidential basis to the Secretary 
of information relevant to a decision to impose or remove 
monitoring or controls under the authority of this Act, or to 
preclude consideration of such information by the Secretary in 
reaching decisions required under this subsection. The 
provisions of this paragraph shall not be construed to affect 
the applicability of section 552(b) of title 5, United States 
Code.
  [(d) Domestically Produced Crude Oil.--(1) Notwithstanding 
any other provision of this Act and notwithstanding subsection 
(u) of section 28 of the Mineral Leasing Act of 1920 (30 U.S.C. 
185), no domestically produced crude oil transported by 
pipeline over right-of-way granted pursuant to section 203 of 
the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1652) 
(except any such crude oil which (A) is exported to an adjacent 
foreign country to be refined and consumed therein in exchange 
for the same quantity of crude oil being exported from that 
country to the United States; such exchange must result through 
convenience or increased efficiency of transportation in lower 
prices for consumers of petroleum products in the United States 
as described in paragraph (2)(A)(ii) of this subsection, (B) is 
temporarily exported for convenience or increased efficiency of 
transportation across parts of an adjacent foreign country and 
reenters the United States, or (C) is transported to Canada, to 
be consumed therein, in amounts not to exceed an annual average 
of 50,000 barrels per day, in addition to exports under 
subparagraphs (A) and (B), except that any ocean transportation 
of such oil shall be by vessels documented under section 12106 
of title 46, United States Code) may be exported from the 
United States, or any of its territories and possessions, 
subject to paragraph (2) of this subsection.
  [(2) Crude oil subject to the prohibition contained in 
paragraph (1) may be exported only if--
          [(A) the President so recommends to the Congress 
        after making and publishing express findings that 
        exports of such crude oil, including exchanges--
                  [(i) will not diminish the total quantity or 
                quality of petroleum refined within, stored 
                within, or legally committed to be transported 
                to and sold within the United States;
                  [(ii) will, within 3 months following the 
                initiation of such exports or exchanges, result 
                in (I) acquisition costs to the refiners which 
                purchase the imported crude oil being lower 
                than the acquisition costs such refiners would 
                have to pay for the domestically produced oil 
                in the absence of such an export or exchange, 
                and (II) not less than 75 percent of such 
                savings in costs being reflected in wholesale 
                and retail prices of products refined from such 
                imported crude oil;
                  [(iii) will be made only pursuant to 
                contracts which may be terminated if the crude 
                oil suppliers of the United States are 
                interrupted, threatened, or diminished;
                  [(iv) are clearly necessary to protect the 
                national interest; and
                  [(v) are in accordance with the provisions of 
                this Act; and
          [(B) the President includes such findings in his 
        recommendation to the Congress and the Congress, within 
        60 days after receiving that recommendation, agrees to 
        a joint resolution which approves such exports on the 
        basis of those findings, and which is thereafter 
        enacted into law.
  [(3) Notwithstanding any other provision of this section or 
any other provision of law, including subsection (u) of section 
28 of the Mineral Leasing Act of 1920, the President may export 
oil to any country pursuant to a bilateral international oil 
supply agreement entered into by the United States with such 
nation before June 25, 1979, or to any country pursuant to the 
International Emergency Oil Sharing Plan of the International 
Energy Agency.
  [(e) Refined Petroleum Products.--(1) In any case in which 
the President determines that it is necessary to impose export 
controls on refined petroleum products in order to carry out 
the policy set forth in section 3(2)(C) of this Act, the 
President shall notify the Congress of that determination. The 
President shall also notify the Congress if and when he 
determines that such export controls are no longer necessary. 
During any period in which a determination that such export 
controls are necessary is in effect, no refined petroleum 
product may be exported except pursuant to an export license 
specifically authorizing such export. Not later than 5 days 
after an application for a license to export any refined 
petroleum product or residual fuel oil is received, the 
Secretary shall notify the Congress of such application, 
together with the name of the exporter, the destination of the 
proposed export, and the amount and price of the proposed 
export. Such notification shall be made to the chairman of the 
Committee on Foreign Affairs of the House of Representatives 
and the chairman of the Committee on Banking, Housing, and 
Urban Affairs of the Senate.
  [(2) The Secretary may not grant such license during the 30-
day period beginning on the date on which notification to the 
Congress under paragraph (1) is received, unless the President 
certifies in writing to the Speaker of the House of 
Representatives and the President pro tempore of the Senate 
that the proposed export is vital to the national interest and 
that a delay in issuing the license would adversely affect that 
interest.
  [(3) This subsection shall not apply to (A) any export 
license application for exports to a country with respect to 
which historical export quotas established by the Secretary on 
the basis of past trading relationships apply, or (B) any 
license application for exports to a country if exports under 
the license would not result in more than 250,000 barrels of 
refined petroleum products being exported from the United 
States to such country in any fiscal year.
  [(4) For purposes of this subsection, ``refined petroleum 
product'' means gasoline, kerosene, distillates, propane or 
butane gas, diesel fuel, and residual fuel oil refined within 
the United States or entered for consumption within the United 
States.
  [(5) The Secretary may extend any time period prescribed in 
section 10 of this Act to the extent necessary to take into 
account delays in action by the Secretary on a license 
application on account of the provisions of this subsection.
  [(f) Certain Petroleum Products.--Petroleum products refined 
in United States Foreign Trade Zones, or in the United States 
Territory of Guam, from foreign crude oil shall be excluded 
from any quantitative restrictions imposed under this section 
except that, if the Secretary finds that a product is in short 
supply, the Secretary may issue such regulations as may be 
necessary to limit exports.
  [(g) Agricultural Commodities.--(1) The authority conferred 
by this section shall not be exercised with respect to any 
agricultural commodity, including fats and oils or animal hides 
or skins, without the approval of the Secretary of Agriculture. 
The Secretary of Agriculture shall not approve the exercise of 
such authority with respect to any such commodity during any 
period for which the supply of such commodity is determined by 
the Secretary of Agriculture to be in excess of the 
requirements of the domestic economy except to the extent the 
President determines that such exercise of authority is 
required to carry out the policies set forth in subparagraph 
(A) or (B) of paragraph (2) of section 3 of this Act. The 
Secretary of Agriculture shall, by exercising the authorities 
which the Secretary of Agriculture has under other applicable 
provisions of law, collect data with respect to export sales of 
animal hides and skins.
  [(2) Upon approval of the Secretary, in consultation with the 
Secretary of Agriculture, agricultural commodities purchased by 
or for use in a foreign country may remain in the United States 
for export at a later date free from any quantitative 
limitations on export which may be imposed to carry out the 
policy set forth in section 3(2)(C) of this Act subsequent to 
such approval. The Secretary may not grant such approval unless 
the Secretary receives adequate assurance and, in conjunction 
with the Secretary of Agriculture, finds (A) that such 
commodities will eventually be exported, (B) that neither the 
sale nor export thereof will result in an excessive drain of 
scarce materials and have a serious domestic inflationary 
impact, (C) that storage of such commodities in the United 
States will not unduly limit the space available for storage of 
domestically owned commodities, and (D) that the purpose of 
such storage is to establish a reserve of such commodities for 
later use, not including resale to or use by another country. 
The Secretary may issue such regulations as may be necessary to 
implement this paragraph.
  [(3)(A) If the President imposes export controls on any 
agricultural commodity in order to carry out the policy set 
forth in paragraph (2)(B), (2)(C), (7), or (8) of section 3 of 
this Act, the President shall immediately transmit a report on 
such action to the Congress, setting forth the reasons for the 
controls in detail and specifying the period of time, which may 
not exceed 1 year, that the controls are proposed to be in 
effect. If the Congress, within 60 days after the date of its 
receipt of the report, adopts a joint resolution pursuant to 
paragraph (4) approving the imposition of the export controls, 
then such controls shall remain in effect for the period 
specified in the report, or until terminated by the President, 
whichever occurs first. If the Congress, within 60 days after 
the date of its receipt of such report, fails to adopt a joint 
resolution approving such controls, then such controls shall 
cease to be effective upon the expiration of that 60-day 
period.
  [(B) The provisions of subparagraph (A) and paragraph (4) 
shall not apply to export controls--
          [(i) which are extended under this Act if the 
        controls, when imposed, were approved by the Congress 
        under subparagraph (A) and paragraph (4); or
          [(ii) which are imposed with respect to a country as 
        part of the prohibition or curtailment of all exports 
        to that country.
  [(4)(A) For purposes of this paragraph, the term joint 
resolution means only a joint resolution the matter after the 
resolving clause of which is as follows: ``That, pursuant to 
section 7(g)(3) of the Export Administration Act of 1979, the 
President may impose export controls as specified in the report 
submitted to the Congress on.'', with the blank space being 
filled with the appropriate date.
  [(B) On the day on which a report is submitted to the House 
of Representatives and the Senate under paragraph (3), a joint 
resolution with respect to the export controls specified in 
such report shall be introduced (by request) in the House by 
the chairman of the Committee on Foreign Affairs, for himself 
and the ranking minority member of the Committee, or by Members 
of the House designated by the chairman and ranking minority 
member; and shall be introduced (by request) in the Senate by 
the majority leader of the Senate, for himself and the minority 
leader of the Senate, or by Members of the Senate designated by 
the majority leader and minority leader of the Senate. If 
either House is not in session on the day on which such a 
report is submitted, the joint resolution shall be introduced 
in that House, as provided in the preceding sentence, on the 
first day thereafter on which that House is in session.
  [(C) All joint resolutions introduced in the House of 
Representatives shall be referred to the appropriate committee 
and all joint resolutions introduced in the Senate shall be 
referred to the Committee on Banking, Housing, and Urban 
Affairs.
  [(D) If the committee of either House to which a joint 
resolution has been referred has not reported the joint 
resolution at the end of 30 days after its referral, the 
committee shall be discharged from further consideration of the 
joint resolution or of any other joint resolution introduced 
with respect to the same matter.
  [(E) A joint resolution under this paragraph shall be 
considered in the Senate in accordance with the provisions of 
section 601(b)(4) of the International Security Assistance and 
Arms Export Control Act of 1976. For the purpose of expediting 
the consideration and passage of joint resolutions reported or 
discharged pursuant to the provisions of this paragraph, it 
shall be in order for the Committee on Rules of the House of 
Representatives to present for consideration a resolution of 
the House of Representatives providing procedures for the 
immediate consideration of a joint resolution under this 
paragraph which may be similar, if applicable, to the 
procedures set forth in section 601(b)(4) of the International 
Security Assistance and Arms Export Control Act of 1976.
  [(F) In the case of a joint resolution described in 
subparagraph (A), if, before the passage by one House of a 
joint resolution of that House, that House receives a 
resolution with respect to the same matter from the other 
House, then--
          [(i) the procedure in that House shall be the same as 
        if no joint resolution had been received from the other 
        House; but
          [(ii) the vote on final passage shall be on the joint 
        resolution of the other House.
  [(5) In the computation of the period of 60 days referred to 
in paragraph (3) and the period of 30 days referred to in 
subparagraph (D) of paragraph (4), there shall be excluded the 
days on which either House of Congress is not in session 
because of an adjournment of more than 3 days to a day certain 
or because of an adjournment of the Congress sine die.
  [(h) Barter Agreements.--(1) The exportation pursuant to a 
barter agreement of any goods which may lawfully be exported 
from the United States, for any goods which may lawfully be 
imported into the United States, may be exempted, in accordance 
with paragraph (2) of this subsection, from any quantitative 
limitation on exports (other than any reporting requirement) 
imposed to carry out the policy set forth in section 3(2)(C) of 
this Act.
  [(2) the Secretary shall grant an exemption under paragraph 
(1) if the Secretary finds, after consulation with the 
appropriate department or agency of the United States, that--
          [(A) for the period during which the barter agreement 
        is to be performed--
                  [(i) the average annual quantity of the goods 
                to be exported pursuant to the barter agreement 
                will not be required to satisfy the average 
                amount of such goods estimated to be required 
                annually by the domestic economy and will be 
                surplus thereto; and
                  [(ii) the average annual quantity of the 
                goods to be imported will be less than the 
                average amount of such goods estimated to be 
                required annually to supplement domestic 
                production; and
          [(B) the parties to such barter agreement have 
        demonstrated adequately that they intend, and have the 
        capacity, to perform such barter agreement.
  [(3) For purposes of this subsection, the term ``barter 
agreement'' means any agreement which is made for the exchange, 
without monetary consideration, of any goods produced in the 
United States for any goods produced outside of the United 
States.
  [(4) This subsection shall apply only with respect to barter 
agreements entered into after the effective date of this Act.
  [(i) Unprocessed Red Cedar.--(1) The Secretary shall require 
a validated license, under the authority contained in 
subsection (a) of this section, for the export of unprocessed 
western red cedar (Thuja plicata) logs, harvested from State or 
Federal lands. The Secretary shall impose quanitiative 
restrictions upon the export of unprocessed western red cedar 
logs during the 3-year period beginning on the effective date 
of this Act as follows:
          [(A) Not more than thirty million board feet scribner 
        of such logs may be exported during the first year of 
        such 3-year period.
          [(B) Not more than fifteen million board feet 
        scribner of such logsmay be exported during the second 
        year of such period.
          [(C) Not more than five million board feet scribner 
        of such logs may be exported during the third year of 
        such period.
After the end of such 3-year period, no unprocessed western red 
cedar logs harvested from State or Federal lands may be 
exported from the United States.
  [(2) To the maximum extent practicable, the Secretary shall 
utilize the multiple validated export licenses described in 
section 4(a)(2) of ths Act in lieu of validated licenses for 
exports under this subsection.
  [(3) The Secretary shall allocate export licenses to 
exporters pursuant to this subsection on the basis of a prior 
history of exportation by such exporters and such other factors 
as the Secretary considers necessary and appropriate to 
minimize any hardship to the producers of western red cedar and 
to further the foreign policy of the United States.
  [(4) Unprocessed western red cedar logs shall not be 
considered to be an agricultural commodity for purposes of 
subsection (g) of this section.
  [(5) As used in this subsection, the term ``unprocessed 
western red cedar'' means red cedar timber which has not been 
processed into--
          [(A) lumber of American Lumber Standards Grades of 
        Number 3 dimension or better, or Pacific Lumber 
        Inspection Bureau Export R-List Grades of Number 3 
        common or better;
          [(B) chips, pulp, and pulp products;
          [(C) veneer and plywood;
          [(D) poles, posts, or pilings cut or treated with 
        preservative for use as such and not intended to be 
        further processed; or
          [(E) shakes and shingles.
  [(j) Effect of Controls on Existing Contracts.--The export 
restrictions contained in subsection (i) of this section and 
any export controls imposed under this section shall not affect 
any contract to harvest unprocessed western red cedar from 
State lands which was entered into before October 1, 1979, and 
the performance of which would make the red cedar available for 
export. Any export controls imposed under this section on any 
agricultural commodity (including fats, oils, and animal hides 
and skins) or on any forest product or fishery product, shall 
not affect any contract to export entered into before the date 
on which such controls are imposed. For purposes of this 
subsection, the term ``contract to export'' includes, but is 
not limited to, an export sales agreement and an agreement to 
invest in an enterprise which involves the export of goods or 
technology.
  [(k) Oil Exports for Use by United States Military 
Facilities.--For purposes of subsection (d) of this section, 
and for purposes of any export controls imposed under this Act, 
shipments of crude oil, refined petroleum products, or 
partially refined petroleum products from the United States for 
use by the Department of Defense or United States-supported 
installations or facilities shall not be considered to be 
exports.

                           [foreign boycotts

  [Sec. 8. (a) Prohibitions and Exceptions.--(1) For the 
purpose of implementing the policies set forth in subparagraph 
(A) or (B) of paragraph (5) of section 3 of this Act, the 
President shall issue regulations prohibiting any United States 
person, with respect to his activities in the interstate or 
foreign commerce of the United States, from taking or knowingly 
agreeing to take any of the following actions with intent to 
comply with, further, or support any boycott fostered or 
imposed by a foreign country against a country which is 
friendly to the United States and which is not itself the 
object of any form of boycott pursuant to United States law or 
regulation:
          [(A) Refusing, or requiring any other person to 
        refuse, to do business with or in the boycotted 
        country, with any business concern organized under the 
        laws of the boycotted country, with any national or 
        resident of the boycotted country, or with any other 
        person, pursuant to an agreement with, a requirement 
        of, or a request from or on behalf of the boycotting 
        country. The mere absence of a business relationship 
        with or in the boycotted country with any business 
        concern organized under the laws of the boycotted 
        country, with any national or resident of the boycotted 
        country, or with any other person, does not indicate 
        the existence of the intent required to establish a 
        violation of regulations issued to carry out this 
        subparagraph.
          [(B) Refusing, or requiring any other person to 
        refuse, to employ or otherwise discriminating against 
        any United States person on the basis of race, 
        religion, sex, or national origin of that person or of 
        any owner, officer, director, or employee of such 
        person.
          [(C) Furnishing information with respect to the race, 
        religion, sex, or national origin of any United States 
        person or of any owner, officer, director, or employee 
        of such person.
          [(D) Furnishing information about whether any person 
        has, has had, or proposes to have any business 
        relationship (including a relationship by way of sale, 
        purchase, legal or commercial representation, shipping 
        or other transport, insurance, investment, or supply) 
        with or in the boycotted country, with any business 
        concern organized under the laws of the boycotted 
        country, with any national or resident of the boycotted 
        country, or with any other person which is known or 
        believed to be restricted from having any business 
        relationship with or in the boycotting country. Nothing 
        in this paragraph shall prohibit the furnishing of 
        normal business information in a commercial context as 
        defined by the Secretary.
          [(E) Furnishing information about whether any person 
        is a member of, has made contribution to, or is 
        otherwise associated with or involved in the activities 
        of any charitable or fraternal organization which 
        supports the boycotted country.
          [(F) Paying, honoring, confirming, or otherwise 
        implementing a letter of credit which contains any 
        condition or requirement compliance with which is 
        prohibited by regulations issued pursuant to this 
        paragraph, and no United States person shall, as a 
        result of the application of this paragraph, be 
        obligated to pay or otherwise honor or implement such 
        letter of credit.
  [(2) Regulations issued pursuant to paragraph (1) shall 
provide exceptions for--
          [(A) complying or agreeing to comply with 
        requirements (i) prohibiting the import of goods or 
        services from the boycotted country or goods produced 
        or services provided by any business concern organized 
        under the laws of the boycotted country or by nationals 
        or residents of the boycotted country, or (ii) 
        prohibiting the shipment of goods to the boycotted 
        country on a carrier of the boycotted country, or by a 
        route other than that prescribed by the boycotting 
        country or the recipient of the shipment;
          [(B) complying or agreeing to comply with import and 
        shipping document requirements with respect to the 
        country of origin, the name of the carrier and route of 
        shipment, the name of the supplier of the shipment or 
        the name of the provider of other services, except that 
        no information knowingly furnished or conveyed in 
        response to such requirements may be stated in 
        negative, blacklisting, or similar exclusionary terms, 
        other than with respect to carriers or route of 
        shipment as may be permitted by such regulations in 
        order to comply with precautionary requirements 
        protecting against war risks and confiscation;
          [(C) complying or agreeing to comply in the normal 
        course of business with the unilateral and specific 
        selection by a boycotting country, or national or 
        resident thereof, of carriers, insurers, suppliers of 
        services to be performed within the boycotting country 
        or specific goods which, in the normal course of 
        business, are identifiable by source when imported into 
        the boycotting country;
          [(D) complying or agreeing to comply with export 
        requirements of the boycotting country relating to 
        shipments or transshipments of exports to the boycotted 
        country, to any business concern of or organized under 
        the laws of the boycotted country, or to any national 
        or resident of the boycotted country;
          [(E) compliance by an individual or agreement by an 
        individual to comply with the immigration or passport 
        requirements of any country with respect to such 
        individual or any member of such individual's family or 
        with requests for information regarding requirements of 
        employment of such individual within the boycotting 
        country; and
          [(F) compliance by a United States person resident in 
        a foreign country or agreement by such person to comply 
        with the laws of that country with respect to his 
        activities exclusively therein, and such regulations 
        may contain exceptions for such resident complying with 
        the laws or regulations of that foreign country 
        governing imports into such country of trademarked, 
        trade named, or similarly specifically identifiable 
        products, or components of products for his own use, 
        including the performance of contractual services 
        within that country, as may be defined by such 
        regulations.
  [(3) Regulations issued pursuant to paragraphs (2)(C) and 
(2)(F) shall not provide exceptions from paragraphs (1)(B) and 
(1)(C).
  [(4) Nothing in this subsection may be construed to supersede 
or limit the operation of the antitrust, or civil rights laws 
of the United States.
  [(5) This section shall apply to any transaction or activity 
undertaken, by or through a United States person or any other 
person, with intent to evade the provisions of this section as 
implemented by the regulations issued pursuant to this 
subsection, and such regulations shall expressly provide that 
the exceptions set forth in paragraph (2) shall not permit 
activities or agreements (expressed or implied by a course of 
conduct, including a pattern of responses) otherwise 
prohibited, which are not within the intent of such exceptions.
  [(b) Foreign Policy Controls.--(1) In addition to the 
regulations issued pursuant to subsection (a) of this section, 
regulations issued under section 6 of this Act shall implement 
the policies set forth in section 3(5).
  [(2) Such regulations shall require that any United States 
person receiving a request for the furnishing of information, 
the entering into or implementing of agreements, or the taking 
of any other action referred to in section 3(5) shall report 
that fact to the Secretary, together with such other 
information concerning such request as the Secretary may 
require for such action as the Secretary considers appropriate 
for carrying out the policies of that section. Such person 
shall also report to the Secretary whether such person intends 
to comply and whether such person has complied with such 
request. Any report filed pursuant to this paragraph shall be 
made available promptly for public inspection and copying, 
except that information regarding the quantity, description, 
and value of any goods or technology to which such report 
relates may be kept confidential if the Secretary determines 
that disclosure thereof would place the United States person 
involved at a competitive disadvantage. The Secretary shall 
periodically transmit summaries of the information contained in 
such reports to the Secretary of State for such action as the 
Secretary of State, in consultation with the Secretary, 
considers appropriate for carrying out the policies set forth 
in section 3(5) of this Act.
  [(c) Preemption.--The provisions of this section and the 
regulations issued pursuant thereto shall preempt any law, 
rule, or regulation of any of the several States or the 
District of Columbia, or any of the territories or possessions 
of the United States, or of any governmental subdivision 
thereof, which law, rule, or regulation pertains to 
participation in, compliance with, implementation of, or the 
furnishing of information regarding restrictive trade practices 
or boycotts fostered or imposed by foreign countries against 
other countries.

          [procedures for hardship relief from export controls

  [Sec. 9. (a) Filing of Petitions.--Any person who, in such 
person's domestic manufacturing process or other domestic 
business operation, utilizes a product produced abroad in whole 
or in part from a good historically obtained from the United 
States but which has been made subject to export controls, or 
any person who historically has exported such a good, may 
transmit a petition of hardship to the Secretary requesting an 
exemption from such controls in order to alleviate any unique 
hardship resulting from the imposition of such controls. A 
petition under this section shall be in such form as the 
Secretary shall prescribe and shall contain information 
demonstrating the need for the relief requested.
  [(b) Decision of the Secretary.--Not later than 30 days after 
receipt of any petition under subsection (a), the Secretary 
shall transmit a written decision to the petitioner granting or 
denying the requested relief. Such decision shall contain a 
statement setting forth the Secretary's basis for the grant or 
denial. Any exemption granted may be subject to such conditions 
as the Secretary considers appropriate.
  [(c) Factors To Be Considered.--For purposes of this section, 
the Secretary's decision with respect to the grant or denial of 
relief from unique hardship resulting directly or indirectly 
from the imposition of export controls shall reflect the 
Secretary's consideration of factors such as the following:
          [(1) Whether denial would cause a unique hardship to 
        the petitioner which can be alleviated only by granting 
        an exception to the applicable regulations. In 
        determining whether relief shall be granted, the 
        Secretary shall take into account--
                  [(A) ownership of material for which there is 
                no practicable domestic market by virtue of the 
                location or nature of the material;
                  [(B) potential serious financial loss to the 
                applicant if not granted an exception;
                  [(C) inability to obtain, except through 
                import, an item essential for domestic use 
                which is produced abroad from the good under 
                control;
                  [(D) the extent to which denial would 
                conflict, to the particular detriment of the 
                applicant, with other national policies 
                including those reflected in any international 
                agreement to which the United States is a 
                party;
                  [(E) possible adverse effects on the economy 
                (including unemployment) in any locality or 
                region of the United States; and
                  [(F) other relevant factors, including the 
                applicant's lack of an exporting history during 
                any base period that may be established with 
                respect to export quotas for the particular 
                good.
          [(2) The effect a finding in favor of the applicant 
        would have on attainment of the basic objectives of the 
        short supply control program.
In all cases, the desire to sell at higher prices and thereby 
obtain greater profits shall not be considered as evidence of a 
unique hardship, nor will circumstances where the hardship is 
due to imprudent acts or failure to act on the part of the 
petitioner.

[procedures for processing export license applications; other inquiries

  [Sec. 10. (a) Primary Responsibility of the Secretary.--(1) 
All export license applications required under this Act shall 
be submitted by the applicant to the Secretary. All 
determinations with respect to any such application shall be 
made by the Secretary, subject to the procedures provided in 
this section.
  [(2) It is the intent of the Congress that a determination 
with respect to any export license application be made to the 
maximum extent possible by the Secretary without referral of 
such application to any other department or agency of the 
Government.
  [(3) To the extent necessary, the Secretary shall seek 
information and recommendations from the Government departments 
and agencies concerned with aspects of United States domestic 
and foreign polices and operations having an important bearing 
on exports. Such departments and agencies shall cooperate fully 
in rendering such information and recommendations.
  [(b) Initial Screening.--Within 10 days after the date on 
which any export license application is submitted pursuant to 
subsection (a)(1), the Secretary shall--
          [(1) sent the applicant an acknowledgment of the 
        receipt of the application and the date of the receipt;
          [(2) submit to this applicant a written description 
        of the procedures required by this section, the 
        responsibilities of the Secretary and of other 
        departments and agenices with respect to the 
        application and the rights of the applicant;
          [(3) return the application without action if the 
        application is improperly completed or if additional 
        information is required, with sufficient information to 
        permit the application to be properly resubmitted, in 
        which case of such application is resubmitted, it shall 
        be treated as a new application for the purpose of 
        calculating the time periods prescribed in this 
        section;
          [(4) determine whether it is necessary to refer the 
        application to any other department or agency and, if 
        such referral is determined to be necessary, inform the 
        applicant of any such department or agency to which the 
        application will be referred; and
          [(5) determine whether it is necessary to submit the 
        application to a multilateral review process, pursuant 
        to a multilateral agreement, formal or informal, to 
        which the United States is a part and, if so inform the 
        applicant of this requirement.
  [(c) Action on Certain Applications.--Except as provided in 
subsection (o), in each case in which the Secretary determines 
that it is not necessary to refer an application to any other 
department or agency for its information and recommendations, a 
license shall be formally issued or denied within 60 days after 
a properly completed application has been submited pursuant to 
this section.
  [(d) Referral to Other Departments and Agencies.--Except in 
the case of exports described in subsection (o), in each case 
in which the Secretary determines that it is necessary to refer 
an application to any other department or agency for its 
information and recommendations, the Secretary shall, within 20 
days after the submission of a properly completed application--
          [(1) refer the application, together with all 
        necessary analysis and recommendations of the 
        Department of Commerce, concurrently to all such 
        departments or agencies; and
          [(2) if the applicant so requests, provide the 
        applicant with an opportunity to review for accuracy 
        any documentation to be referred to any such department 
        or agency with respect to such application for the 
        purpose of describing the export in question in order 
        to determine whether such documentation accurately 
        describes the proposed export.
Notwithstanding the 10-day period set forth in subsection (b), 
in the case of exports described in subsection (o), in each 
case in which the Secretary determines that it is necessary to 
refer an application to any other department or agency for its 
information and recommendations, the Secretary shall, 
immediately upon receipt of the properly completed application, 
refer the application to such department or agency for its 
review. Such review shall be concurrent with that of the 
Department of Commerce.
  [(e) Action by Other Departments and Agencies.--(1) Any 
department or agency to which an application is referred 
pursuant to subsection (d) shall submit to the Secretary the 
information or recommendations requested with respect to the 
application. The information or recommendations shall be 
submitted within 20 days after the department or agency 
receives the application or, in the case of exports described 
in subsection (o), before the expiration of the time periods 
permitted by that subsection. Except as provided in paragraph 
(2), any such department or agency which does not submit its 
recommendations within the time period prescribed in the 
preceding sentence shall be deemed by the Secretary to have no 
objection to the approval of such application.
  [(2)(A) Except in the case of exports described in subsection 
(o), if the head of any such department or agency notifies the 
Secretary before the expiration of the time period provided in 
paragraph (1) for submission of its recommendations that more 
time is required for review by such department or agency, such 
department or agency shall have an additional 20-day period to 
submit its recommendations to the Secretary. If such department 
or agency does not submit its recommendations within the time 
period prescribed by the preceding sentence, it shall be deemed 
by the Secretary to have no objection to the approval of such 
application.
  [(B) In the case of exports described in subsection (o), if 
the head of any such department or agency notifies the 
Secretary, before the expiration of the 15-day period provided 
in subsection (o)(1), that more time is required for review by 
such department or agency, the Secretary shall notify the 
applicant, pursuant to subsection (o)(1)(C), that additional 
time is required to consider the application, and such 
department or agency shall have additional time to consider the 
application within the limits permitted by subsection (o)(2). 
If such department or agency does not submit its 
recommendations within the time periods permitted under 
subsection (o), it shall be deemed by the Secretary to have no 
objection to the approval of such application.
  [(f) Action by the Secretary.--(1) Within 60 days after 
receipt of the recommendations of other departments and 
agencies with respect to a license application, as provided in 
subsection (e), the Secretary shall formally issue or deny the 
license. In deciding whether to issue or deny a license, the 
Secretary shall take into account any recommendation of a 
department or agency with respect to the application in 
question. In cases where the Secretary receives conflicting 
recommendations, the Secretary shall, within the 60-day period 
provided for in this subsection, take such action as may be 
necessary to resolve such conflicting recommendations. The 
provisions of this paragraph shall not apply in the case of 
exports described in subsection (o).
  [(2) In cases where the Secretary receives questions or 
negative considerations or recommendations from any other 
department or agency with respect to an application, the 
Secretary shall, to the maximum extent consistent with the 
national security and foreign policy of the United States, 
inform the applicant in writing of the specific questions 
raised and any such negative considerations or recommendations. 
Before a final determination with respect to the application in 
made, the applicant shall be entitled--
          [(A) to respond in writing to such questions, 
        considerations, or recommendations within 30 days after 
        receipt of such information from the Secretary; and
          [(B) upon the filing of a written request with the 
        Secretary within 15 days after the receipt of such 
        information, to respond in person to the department or 
        agency raising such questions, considerations, or 
        recommendations.
The provisions of this paragraph shall not apply in the case of 
exports described in subsection (o).
  [(3) In cases where the Secretary has determined that an 
application should be denied, the applicant shall be informed 
in writing, within 5 days after such determination is made, 
of--
          [(A) the determination,
          [(B) the statutory basis for the proposed denial,
          [(C) the policies set forth in section 3 of this Act 
        which would be furthered by the proposed denial,
          [(D) what if any modifications in or restrictions on 
        the goods or technology for which the license was 
        sought would allow such export to be compatible with 
        export controls imposed under this Act,
          [(E) which officers and employees of the Department 
        of Commerce who are familar with the application will 
        be made reasonably available to the applicant for 
        considerations with regard to such modifications or 
        restrictions, if appropriate,
          [(F) to the extent consistent with the national 
        security and foreign policy of the United States, the 
        specific considerations which led to the determination 
        to deny the application, and
          [(G) the availability of appeal procedures.
The Secretary shall allow the applicant at least 30 days to 
respond to the Secretary's determination before the license 
application is denied. In the event decisions on license 
applications are deferred inconsistent with the provisions of 
this section, the applicant shall be so informed in writing 
within 5 days after such deferral.
  [(4) If the Secretary determines that a particular 
application or set of applications is of exceptional importance 
and complexity, and that additional time is required for 
negotiations to modify the application or applications, the 
Secretary may extend any time period prescribed in this 
section. The Secretary shall notify the Congress and the 
applicant of such extension and the reasons therefor. The 
provisions of this paragraph shall not apply in the case of 
exports described in subsection (o).
  [(g) Special Procedures for Secretary of Defense.--(1) 
Notwithstanding any other provision of this section, the 
Secretary of Defense is authorized to review any proposed 
export of any goods or technology to any country to which 
exports are controlled for national security purposes and, 
whenever the Secretary of Defense determines that the export of 
such goods or technology will make a significant contribution, 
which would prove detrimental to the national security of the 
United States, to the military potential of any such country, 
to recommend to the President that such export be disapproved.
  [(2) Notwithstanding any other provision of law, the 
Secretary of Defense shall determine, in consultation with the 
Secretary, and confirm in writing the types and categories of 
transactions which should be reviewed by the Secretary of 
Defense in order to make a determination referred to in 
paragraph (1). Whenever a license or other authority is 
requested for the export to any country to which exports are 
controlled for national security purposes of goods or 
technology within any such type or category, the Secretary 
shall notify the Secretary of Defense of such request, and the 
Secretary may not issue any license or other authority pursuant 
to such request before the expiration of the period within 
which the President may disapprove such export. The Secretary 
of Defense shall carefully consider any notification submitted 
by the Secretary pursuant to this paragraph and, not later than 
20 days after notification of the request, shall--
          [(A) recommend to the President and the Secretary 
        that he disapprove any request for the export of the 
        goods or technology involved to the particular country 
        if the Secretary of Defense determines that the export 
        of such goods or technology will make a significant 
        contribution, which would prove detrimental to the 
        national security of the United States, to the military 
        potential of such country or any other country;
          [(B) notify the Secretary that he would recommend 
        approval subject to specified conditions; or
          [(C) recommend to the Secretary that the export of 
        goods or technology be approved.
Whenever the Secretary of Defense makes a recommendation to the 
President pursuant to paragraph (2)(A), the Secretary shall 
also submit his recommendation to the President on the request 
to export if the Secretary differs with the Secretary of 
Defense. If the President notifies the Secretary, with 20 days 
after receiving a recommendation from the Secretary of Defense, 
that he disapproves such export, no license or other authority 
may be issued for the export of such goods or technology to 
such country. If the Secretary of Defense fails to make a 
recommendation or notification under this paragraph within the 
20-day period specified in the third sentence, or if the 
President, within 20 days after receiving a recommendation from 
the Secretary of Defense with respect to an export, fails to 
notify the Secretary that he approves or disapproves the 
export, the Secretary shall approve or deny the request for a 
license or other authority to export without such 
recommendation or notification.
  [(3) The Secretary shall approve or disapprove a license 
application, and issue or deny a license, in accordance with 
the provisions of this subsection, and, to the extent 
applicable, in accordance with the time periods and procedures 
otherwise set forth in this section.
  [(h) Multilateral Controls.--In any case in which an 
application, which has been finally approved under subsection 
(c), (f), or (g) of this section, is required to be submitted 
to a multilateral review process, pursuant to a multilateral 
agreement, formal or informal, to which the United States is a 
party, the license shall not be issued as prescribed in such 
subsections, but the Secretary shall notify the applicant of 
the approval of the application (and the date of such approval) 
by the Secretary subject to such multilateral review. The 
license shall be issued upon approval of the application under 
such multilateral review. If such multilateral review has not 
resulted in a determination with respect to the application 
within 40 days after such date, the Secretary's approval of the 
license shall be final and the license shall be issued, unless 
the Secretary determines that issuance of the license would 
prove detrimental to the national security of the United 
States. At the time at which the Secretary makes such a 
determination, the Secretary shall notify the applicant of the 
determination and shall notify the Congress of the 
determination, the reasons for the determination, the reasons 
for which the multilateral review could not be concluded within 
such 40-day period, and the actions planned or being taken by 
the United States Government to secure conclusion of the 
multilateral review. At the end of every 40-day period after 
such notification to Congress, the Secretary shall advise the 
applicant and the Congress of the status of the application, 
and shall report to the Congress in detail on the reasons for 
the further delay and any further actions being taken by the 
United States Government to secure conclusion of the 
multilateral review. In addition, at the time at which the 
Secretary issues or denies the license upon conclusion of the 
multilateral review, the Secretary shall notify the Congress of 
such issuance or denial and of the total time required for the 
multilateral review.
  [(i) Records.--The Secretary and any department or agency to 
which any application is referred under this section shall keep 
accurate records with respect to all applications considered by 
the Secretary or by any such department or agency, including, 
in the case of the Secretary, any dissenting recommendations 
received from any such department or agency.
  [(j) Appeal and Court Action.--(1) The Secretary shall 
establish appropriate procedures for any applicant to appeal to 
the Secretary the denial of an export license application of 
the applicant.
  [(2) In any case in which any action prescribed in this 
section is not taken on a license application within the time 
periods established by this section (except in the case of a 
time period extended under subsection (f)(4) of which the 
applicant is notified), the applicant may file a petition with 
the Secretary requesting compliance with the requirements of 
this section. When such petition is filed, the Secretary shall 
take immediate steps to correct the situation giving rise to 
the petition and shall immediately notify the applicant of such 
steps.
  [(3) If, within 20 days after a petition is filed under 
paragraph (2), the processing of the application has not been 
brought into conformity with the requirements of this section, 
or the application has been brought into conformity with such 
requirements but the Secretary has not so notified the 
applicant, the applicant may bring an action in an appropriate 
United States district court for a restraining order, a 
temporary or permanent injunction, or other appropriate relief, 
to require compliance with the requirements of this section. 
The United States district courts shall have jurisdiction to 
provide such relief, as appropriate.
  [(k) Changes in Requirements for Applications.--Except as 
provided in subsection (b)(3) of this section, in any case in 
which, after a license application is submitted, the Secretary 
changes the requirements for such a license application, the 
Secretary may request appropriate additional information of the 
applicant, but the Secretary may not return the application to 
the applicant without action because it fails to meet the 
changed requirements.
  [(l) Other Inquiries.--(1) In any case in which the Secretary 
receives a written request asking for the proper classification 
of a good or technology on the control list, the Secretary 
shall, within 10 working days after receipt of the request, 
inform the person making the request of the proper 
classification.
  [(2) In any case in which the Secretary receives a written 
request for information about the applicability of export 
license requirements under this Act to a proposed export 
transaction or series of transactions, the Secretary shall, 
within 30 days after receipt of the request, reply with that 
information to the person making the request.
  [(m) Small Business Assistance.--Not later than 120 days 
after the date of the enactment of this subsection, the 
Secretary shall develop and transmit to the Congress a plan to 
assist small businesses in the export licensing application 
process under this Act. The plan shall include, among other 
things, arrangements for counseling small businesses on filing 
applications and identifying goods or technology on the control 
list, proposals for seminars and conferences to educate small 
businesses on export controls and licensing procedures, and the 
preparation of informational brochures. The Secretary shall, 
not later than 120 days after the date of the enactment of the 
Export Enhancement Act of 1988, report to the Congress on steps 
taken to implement the plan developed under this subsection to 
assist small businesses in the export licensing application 
process.
  [(n) Reports on License Applications.--(1) Not later than 180 
days after the date of the enactment of this subsection, and 
not later than the end of each 3-month period thereafter, the 
Secretary shall submit to the Committee on Foreign Affairs of 
the House of Representatives and to the Committee on Banking, 
Housing, and Urban Affairs of the Senate a report listing--
          [(A) all applications on which action was completed 
        during the preceding 3-month period and which required 
        a period longer than the period permitted under 
        subsection (c), (f)(1), or (h) of this section, as the 
        case may be, before notification of a decision to 
        approve or deny the application was sent to the 
        applicant; and
          [(B) in a separate section, all applications which 
        have been in process for a period longer than the 
        period permitted under subsection (c), (f)(1), or (h) 
        of this section, as the case may be, and upon which 
        final action has not been taken.
  [(2) With regard to each application, each listing shall 
identify--
          [(A) the application case number;
          [(B) the value of the goods or technology to which 
        the application relates;
          [(C) the country of destination of the goods or 
        technology;
          [(D) the date on which the application was received 
        by the Secretary;
          [(E) the date on which the Secretary approved or 
        denied the application;
          [(F) the date on which the notification of approval 
        or denial of the application was sent to the applicant; 
        and
          [(G) the total number of days which elapsed between 
        receipt of the application, in its properly completed 
        form, and the earlier of the last day of the 3-month 
        period to which the report relates, or the date on 
        which notification of approval or denial of the 
        application was sent to the applicant.
  [(3) With respect to an application which was referred to 
other departments or agencies, the listing shall also include--
          [(A) the departments or agencies to which the 
        application was referred;
          [(B) the date or dates of such referral; and
          [(C) the date or dates on which recommendations were 
        received from those departments or agencies.
  [(4) With respect to an application referred to any other 
department or agency which did not submit or has not submitted 
its recommendations on the application within the period 
permitted under subsection (e) of this section to submit such 
recommendations, the listing shall also include--
          [(A) the office responsible for processing the 
        application and the position of the officer responsible 
        for the office; and
          [(B) the period of time that elapsed before the 
        recommendations were submitted or that has elapsed 
        since referral of the application, as the case may be.
  [(5) Each report shall also provide an introduction which 
contains--
          [(A) summary of the number of applications described 
        in paragraph (1)(A) and (B) of this subsection, and the 
        value of the goods or technology involved in the 
        applications, grouped according to--
                  [(i) the number of days which elapsed before 
                action on the applications was completed, or 
                which has elapsed without action on the 
                applications being completed, as follows: 61 to 
                75 days, 76 to 90 days, 91 to 105 days, 106 to 
                120 days, and more than 120 days; and
                  [(ii) the number of days which elapsed before 
                action on the applications was completed, or 
                which has elapsed without action on the 
                applications being completed, beyond the period 
                permitted under subsection (c), (f)(1), or (h) 
                of this section for the processing of 
                applications, as follows: not more than 15 
                days, 16 to 30 days, 31 to 45 days, 46 to 60 
                days, and more than 60 days; and
          [(B) a summary by country of destination of the 
        number of applications described in paragraph (1)(A) 
        and (B) of this subsection, and the value of the goods 
        or technology involved in applications, on which action 
        was not completed within 60 days.
  [(o) Exports to Members of Coordinating Committee.--(1) 
Fifteen working days after the date of formal filing with the 
Secretary of an individual validated license application for 
the export of goods or technology to a country that maintains 
export controls on such goods or technology pursuant to the 
agreement of the governments participating in the group known 
as the coordinating Committee, a license for the transaction 
specified in the application shall become valid and effective 
and the goods or technology are authorized for export pursuant 
to such license unless--
          [(A) the application has been otherwise approved by 
        the Secretary, in which case it shall be valid and 
        effective according to the terms of the approval;
          [(B) the application has been denied by the Secretary 
        pursuant to this section and the applicant has been so 
        informed, or the applicant has been informed, pursuant 
        to subsection (f)(3) of this section, that the 
        application should be denied; or
          [(C) the Secretary requires additional time to 
        consider the application and the applicant has been so 
        informed.
  [(2) In the event that the Secretary notifies an applicant 
pursuant to paragraph (1)(C) that the Secretary notifies an 
applicant pursuant to paragraph (1)(C) that more time is 
required to consider an individual validated license 
application, a license for the transaction specified in the 
application shall become valid and effective and the goods or 
technology are authorized for export pursuant to such license 
30 working days after the date that such license application 
was formally filed with the Secretary unless--
          [(A) the application has been otherwise approved by 
        the Secretary, in which case it shall be valid and 
        effective according to the terms of the approval; or
          [(B) the application has been denied by the Secretary 
        pursuant to this section and the applicant has been so 
        informed, or the applicant has been informed, pursuant 
        to subsection (f)(3) of this section, that the 
        application should be denied.
  [(3) In reviewing an individual license application subject 
to this subsection, the Secretary shall evaluate the 
information set forth in the application and the reliability of 
the end-user.
  [(4) Nothing in this subsection shall affect the scope or 
availability of licenses authorizing multiple exports set forth 
in section 4(a)(2) of this Act.
  [(5) The provisions of this subsection shall take effect 4 
months after the date of the enactment of the Export 
Administration Amendments Act of 1985.

                              [violations

  [Sec. 11. (a) In General.--Except as provided in subsection 
(b) of this section, whoever knowingly violates or conspires to 
or attempts to violate any provision of this Act or any 
regulation, order, or license issued thereunder shall be fined 
not more than five times the value of the exports involved or 
$50,000, whichever is greater, or imprisoned not more than 5 
years, or both.
  [(b) Willful Violations.--(1) Whoever willfully violates or 
conspires to or attempts to violate any provision of this Act 
or any regulation, order, or license issued thereunder, with 
knowledge that the exports involved will be used for the 
benefit of, or that the destination or intended destination of 
the goods or technology involved is, any controlled country or 
any country to which exports are controlled for foreign policy 
purposes--
          [(A) except in the case of an individual, shall be 
        fined not more than five times the value of the exports 
        involved or $1,000,000, whichever is greater; and
          [(B) in the case of an individual, shall be fined not 
        more than $250,000, or imprisoned not more than 10 
        years, or both.
  [(2) Any person who is issued a validated license under this 
Act for the export of any good or technology to a controlled 
country and who, with knowledge that such a good or technology 
is being used by such controlled country for military or 
intelligence gathering purposes contrary to the conditions 
under which the license was issued, willfully fails to report 
such use of the Secretary of Defense--
          [(A) except in the case of an individual, shall be 
        fined not more than five times the value of the exports 
        involved or $1,000,000, whichever is greater; and
          [(B) in the case of an individual, shall be fined not 
        more than $250,000, or imprisoned not more than 5 
        years, or both.
  [(3) Any person who possesses any goods or technology--
          [(A) with the intent to export such goods or 
        technology in violation of an export control imposed 
        under section 5 or 6 of this Act or any regulation, 
        order, or license issued with respect to such control, 
        or
          [(B) knowing or having reason to believe that the 
        goods or technology would be so exported,
shall, in the case of a violation of an export control imposed 
under section 5 (or any regulation, order, or license issued 
with respect to such control), be subject to the penalties set 
forth in paragraph (1) of this subsection and shall, in the 
case of a violation of an export control imposed under section 
6 (or any regulation, order, or license issued with respect to 
such control), be subject to the penalties set forth in 
subsection (a).
  [(4) Any person who takes any action with the intent to evade 
the provisions of this act or any regulation, order, or license 
issued under this Act shall be subject to the penalties set 
forth in subsection (a), except that in the case of an evasion 
of an export control imposed under section 5 or 6 of this act 
(or any regulation, order, or license issued with respect to 
such control), such person shall be subject to the penalties 
set forth in paragraph (1) of this subsection.
  [(5) Nothing in this subsection or subsection (a) shall limit 
the power of the Secretary to define by regulations violations 
under this Act.
  [(c) Civil Penalties; Administrative Sanctions.--(1) The 
Secretary (and officers and employees of the Department of 
Commerce specifically designated by the Secretary) may impose a 
civil penalty not to exceed $10,000 for each violation of this 
Act or any regulation, order, or license issued under this act, 
either in addition to or in lieu of any other liability or 
penalty which may be imposed, except that the civil penalty for 
each such violation involving national security controls 
imposed under section 5 of this Act or controls imposed on the 
export of defense articles and defense services under section 
38 of the Arms Export Control Act may not exceed $100,000.
  [(2)(A) The authority under this Act to suspend or revoke the 
authority of any United States person to export goods or 
technology may be used with respect to any violation of the 
regulations issued pursuant to section 8(a) of this Act.
  [(B) Any administrative sanction (including any civil penalty 
or any suspension or revocation of authority to export) imposed 
under this Act for a violation of the regulations issued 
pursuant to section 8(a) of this Act may be imposed only after 
notice and opportunity for an agency hearing on the record in 
accordance with sections 554 through 557 of title 5, United 
States Code.
  [(C) Any charging letter or other document initiating 
administrative proceedings for the imposition of sanctions for 
violations of the regulations issued pursuant to section 8(a) 
of this Act shall be made available for public inspection and 
copying.
  [(3) An exception may not be made to any order issued under 
this Act which revokes the authority of a United States person 
to export goods or technology unless the Committee on Foreign 
Affairs of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate are first 
consulted concerning the exception.
  [(4) The President may by regulation provide standards for 
establishing levels of civil penalty provided in this 
subsection based upon the seriousness of the violation, the 
culpability of the violator, and the violator's record of 
cooperation with the Government in disclosing the violation.
  [(d) Payment of Penalties.--The payment of any penalty 
imposed pursuant to subsection (c) may be made a condition, for 
a period not exceeding one year after the imposition of such 
penalty, to the granting, restoration, or continuing validity 
of any export license, permission, or privilege granted or to 
be granted to the person upon whom such penalty is imposed. In 
addition, the payment of any penalty imposed under subsection 
(c) may be deferred or suspended in whole or in part for a 
period of time no longer than any probation period (which may 
exceed one year) that may be imposed upon such person. Such a 
deferral or suspension shall not operate as a bar to the 
collection of the penalty in the event that the conditions of 
the suspension, deferral, or probation are not fulfilled.
  [(e) Refunds.--Any amount paid in satisfaction of any penalty 
imposed pursuant to subsection (c), or any amounts realized 
from the forefeiture of any property interest or proceeds 
pursuant to subsection (g), shall be covered into the Treasury 
as a miscellaneous receipt. The head of the department or 
agency concerned may, in his discretion, refund any such 
penalty imposed pursuant to subsection (c), within 2 years 
after payment, on the ground of a material error of fact or law 
in the imposition of the penalty. Notwithstanding section 
1346(a) of title 28, United States Code, no action for the 
refund of any such penalty may be maintained in any court.
  [(f) Actions for Recovery of Penalties.--In the event of the 
failure of any person to pay a penalty imposed pursuant to 
subsection (c) a civil action for the recovery thereof may, in 
the discretion of the head of the department or agency 
concerned, be brought in the name of the United States. In any 
such action the court shall determine de novo all issues 
necessary to the establishment of liability. Except as provided 
in this subsection and in subsection (d), no such liabilty 
shall be asserted, claimed, or recovered upon by the United 
States in any way unless it has previously been reduced to 
judgment.
  [(g) Forfeiture of Property Interest and Proceeds.--(1) Any 
person who is convicted under subsection (a) or (b) of a 
violation of an export control imposed under section 5 of this 
Act (or any regulation, order, or license issued with respect 
to such control) shall, in addition to any other penalty, 
forfeit to the United States--
          [(A) any of that person's interest in, security of, 
        claim against, or property or contractual rights of any 
        kind in the goods or tangible items that were the 
        subject of the violation;
          [(B) any of that person's interest in, security of, 
        claim against, or property or contractual rights of any 
        kind in tangible property that was used in the export 
        or attempt to export that was the subject of the 
        violation; and
          [(C) any of that person's property constituting, or 
        derived from, any proceeds obtained directly or 
        indirectly as a result of the violation.
  [(2) The procedures in any forfeiture under this subsection, 
and the duties and authority of the courts of the United States 
and the Attorney General with respect to any forfeiture action 
under this subsection or with respect to any property that may 
be subject to forfeiture under this subsection, shall be 
governed by the provisions of section 1963 of title 18, United 
States Code.
  [(h) Prior Convictions.--(1) No person convicted of a 
violation of this Act (or any regulation, license, or order 
issued under this Act), any regulation, license, or order 
issued under the International Emergency Economic Powers Act, 
section 793, 794, or 798 of title 18, United States Code, 
section 4(b) on the Internal Security Act of 1950 (50 U.S.C. 
783(b)), or section 38 of the Arms Export Control Act (22 
U.S.C. 2778) shall be eligible, at the discretion of the 
Secretary, to apply for or use any export license under this 
Act for a period of up to 10 years from the date of the 
conviction. The Secretary may revoke any export license under 
this Act in which such person has an interest at the time of 
the conviction.
  [(2) The Secretary may exercise the authority under paragraph 
(1) with respect to any person related, through affiliation, 
ownership, control, or position of responsibility, to any 
person convicted of any violation of law set forth in paragraph 
(1), upon a showing of such relationship with the convicted 
party, and subject to the procedures set forth in section 13(c) 
of this Act.
  [(i) Other Authorities.--Nothing in subsection (c), (d), (f), 
(g), or (h) limits--
          [(1) the availability of other administrative or 
        judicial remedies with respect to violations of this 
        Act, or any regulation, order, or license issued under 
        this Act;
          [(2) the authority to compromise and settle, 
        administrative proceedings brought with respect to 
        violations of this Act, or any regulation, order, or 
        license issued under this Act; or
          [(3) the authority to compromise, remit or mitigate 
        seizures and forfeitures pursuant to section 1(b) of 
        title VI of the Act of June 15, 1917 (22 U.S.C. 
        401(b)).

                [multilateral export control violations

  [Sec. 11A. (a) Determination by the President.--The 
President, subject to subsection (c), shall apply sanctions 
under subsection (b) for a period of not less than 2 years and 
not more than 5 years, if the President determines that--
          [(1) a foreign person has violated any regulation 
        issued by a country to control exports for national 
        security purposes pursuant to the agreement of the 
        group known as the Coordinating Committee, and
          [(2) such violation has resulted in substantial 
        enhancement of Soviet and East bloc capabilities in 
        submarine or antisubmarine warfare, ballistic or 
        antiballistic missile technology, strategic aircraft, 
        command, control, communications and intelligence, or 
        other critical technologies as determined by the 
        President, on the advice of the National Security 
        Council, to represent a serious adverse impact on the 
        strategic balance of forces.
The President shall notify the Congress of each action taken 
under this section. This section, except subsections (h) and 
(j), applies only to violations that occur after the date of 
the enactment of the Export Enhancement Act of 1988.
  [(b) Sanctions.--The sanctions referred to in subsection (a) 
shall apply to the foreign person committing the violation, as 
well as to any parent, affiliate, subsidiary, and successor 
entity of the foreign person, and, except as provided in 
subsection (c), are as follows:
          [(1) a prohibition on contracting with, and 
        procurement of products and services from, a sanctioned 
        person, by any department, agency, or instrumentality 
        of the United States Government, and
          [(2) a prohibition on importation into the United 
        States of all products produced by a sanctioned person.
  [(c) Exceptions.--The President shall not apply sanctions 
under this section--
          [(1) in the case of procurement of defense articles 
        or defense services--
                  [(A) under existing contracts or 
                subcontracts, including the exercise of options 
                for production quantities to satisfy United 
                States operational military requirements;
                  [(B) if the President determines that the 
                foreign person or other entity to which the 
                sanctions would otherwise be applied is a sole 
                source supplier of essential defense articles 
                or services and no alternative supplier can be 
                identified; or
                  [(C) if the President determines that such 
                articles or services are essential to the 
                national security under defense coproduction 
                agreements; or
          [(2) to--
                  [(A) products or services provided under 
                contracts or other binding agreements (as such 
                terms are defined by the President in 
                regulations) entered into before the date on 
                which the President notifies the Congress of 
                the intention to impose the sanctions;
                  [(B) spare parts;
                  [(C) component parts, but not finished 
                products, essential to United States products 
                or production;
                  [(D) routine servicing and maintenance of 
                products; or
                  [(E) information and technology.
  [(d) Exclusion.--The President shall not apply sanctions 
under this section to a parent, affiliate, subsidiary, and 
successor entity of a foreign person if the President 
determines that--
          [(1) the parent, affiliate, subsidiary, or successor 
        entity (as the case may be) has not knowingly violated 
        the export control regulation violated by the foreign 
        person, and
          [(2) the government of the country with jurisdiction 
        over the parent, affiliate, subsidiary, or successor 
        entity had in effect, at the time of the violation by 
        the foreign person, an effective export control system 
        consistent with principles agreed to in the 
        Coordinating Committee, including the following:
                  [(A) national laws providing appropriate 
                civil and criminal penalties and statutes of 
                limitations sufficient to deter potential 
                violations;
                  [(B) a program to evaluate export license 
                applications that includes sufficient technical 
                expertise to assess the licensing status of 
                exports and ensure the reliability of end-
                users;
                  [(C) an enforcement mechanism that provides 
                authority for trained enforcement officers to 
                investigate and prevent illegal exports;
                  [(D) a system of export control documentation 
                to verify the movement of goods and technology; 
                and
                  [(E) procedures for the coordination and 
                exchange of information concerning violations 
                of the agreement of the Coordinating Committee.
  [(e) Definitions.--For purposes of this section--
          [(1) the term ``component part'' means any article 
        which is not usable for its intended functions without 
        being imbedded in or integrated into any other product 
        and which, if used in production of a finished product, 
        would be substantially transformed in that process;
          [(2) the term ``finished product'' means any article 
        which is usable for its intended functions without 
        being imbedded or integrated into any other product, 
        but in no case shall such term be deemed to include an 
        article produced by a person other than a sanctioned 
        person that contains parts or components of the 
        sanctioned person if the parts or components have been 
        substantially transformed during production of the 
        finished product; and
          [(3) the term ``sanctioned person'' means a foreign 
        person, and any parent, affiliate, subsidiary, or 
        successor entity of the foreign person, upon whom 
        sanctions have been imposed under this section.
  [(f) Subsequent Modifications of Sanctions.--The President 
may, after consultation with the Congress, limit the scope of 
sanctions applied to a parent, affiliate, subsidiary, or 
successor entity of the foreign person determined to have 
committed the violation on account of which the sanctions were 
imposed if the President determines that--
          [(1) the parent, affiliate, subsidiary, or successor 
        entity (as the case may be) has not, on the basis of 
        available evidence, itself violated the export control 
        regulation involved, either directly or through a 
        course of conduct;
          [(2) the government with jurisdiction over the 
        parent, affiliate, subsidiary, or successor entity has 
        improved its export control system as measured by the 
        criteria set forth in subsection (d)(2);
          [(3) the parent, affiliate, subsidiary, or successor 
        entity, has instituted improvements in internal 
        controls sufficient to detect and prevent violations of 
        the export control regime implemented under paragraph 
        (2); and
          [(4) the impact of the sanctions imposed on the 
        parent, affiliate, subsidiary, or successor entity is 
        proportionate to the increased defense expenditures 
        imposed on the United States.
Notwithstanding the preceding sentence, the President may not 
limit the scope of the sanction referred to in subsection 
(b)(1) with respect to the parent of the foreign person 
determined to have committed the violation, until that sanction 
has been in effect for at least 2 years.
  [(g) Reports to Congress.--The President shall include in the 
annual report submitted under section 14, a report on the 
status of any sanctions imposed under this section, including 
any exceptions, exclusions, or modifications of sanctions that 
have been applied under subsection (c), (d), or (f).
  [(h) Discretionary Imposition of Sanctions.--If the President 
determines that a foreign person has violated a regulation 
issued by a country to control exports for national security 
purposes pursuant to the agreement of the group known as the 
Coordinating Committee, but in a case in which subsection 
(a)(2) may not apply, the President may apply the sanctions 
referred to in subsection (b) against that foreign person for a 
period of not more than 5 years.
  [(i) Compensation for Diversion of Militarily Critical 
Technologies to Controlled Countries.--(1) In cases in which 
sanctions have been applied against a foreign person under 
subsection (a), the President shall initiate discussions with 
the foreign person and the government with jurisdiction over 
that foreign person regarding compensation on the part of the 
foreign person in an amount proportionate to the costs of 
research and development and procurement of new defensive 
systems by the United States and the allies of the United 
States to counteract the effect of the technological advance 
achieved by the Soviet Union as a result of the violation by 
that foreign person.
  [(2) The President shall, at the time that discussions are 
initiated under paragraph (1), report to the Congress that such 
discussions are being undertaken, and shall report to the 
Congress the outcome of those discussions.
  [(j) Other Actions by the President.--Upon making a 
determination under subsection (a) or (h), the President 
shall--
          [(1) initiate consultations with the foreign 
        government with jurisdiction over the foreign person 
        who committed the violation involved, in order to seek 
        prompt remedial action by that government;
          [(2) initiate discussions with the governments 
        participating in the Coordinating Committee regarding 
        the violation and means to ensure that similar 
        violations do not occur; and
          [(3) consult with and report to the Congress on the 
        nature of the violation and the actions the President 
        proposes to take, or has taken, to rectify the 
        situation.
  [(k) Damages for Certain Violations.--(1) In any case in 
which the President makes a determination under subsection (a), 
the Secretary of Defense shall determine the costs of restoring 
the military preparedness of the United States on account of 
the violation involved. The Secretary of Defense shall notify 
the Attorney General of his determination, and the Attorney 
General may bring an action for damages, in any appropriate 
district court of the United States, to recover such costs 
against the person who committed the violation, any person that 
is owned or controlled by the person who committed the 
violation, and any person who owns and controls the person who 
committed the violation.
  [(3) The total amount awarded in any case brought under 
paragraph (2) shall be determined by the court in light of the 
facts and circumstances, but shall not exceed the amount of the 
net loss to the national security of the United States. An 
action under this subsection shall be commenced not later than 
3 years after the violation occurs, or one year after the 
violation is discovered, whichever is later.
  [(l) Definition.--For purposes of this section, the term 
``foreign person'' means any person other than a United States 
person.

               [missile proliferation control violations

  [Sec. 11B. (a) Violations by United States Persons.--
          [(1) Sanctions.--(A) If the President determines that 
        a United States person knowingly--
                  [(i) exports, transfers, or otherwise engages 
                in the trade of any item on the MTCR Annex, in 
                violation of the provisions of section 38 (22 
                U.S.C. 2778) or chapter 7 of the Arms Export 
                Control Act, section 5 or 6 of this Act, or any 
                regulations or orders issued under any such 
                provisions,
                  [(ii) conspires to or attempts to engage in 
                such export, transfer, or trade, or
                  [(iii) facilitates such export, transfer, or 
                trade by any other person,
        then the President shall impose the applicable 
        sanctions described in subparagraph (B).
          [(B) The sanctions which apply to a United States 
        person under subparagraph (A) are the following:
                  [(i) If the item on the MTCR Annex involved 
                in the export, transfer, or trade is missile 
                equipment or technology within category II of 
                the MTCR Annex, then the President shall deny 
                to such United States person, for a period of 2 
                years, licenses for the transfer of missile 
                equipment or technology controlled under this 
                Act.
                  [(ii) If the item on the MTCR Annex involved 
                in the export, transfer, or trade is missile 
                equipment or technology within category I of 
                the MTCR Annex, then the President shall deny 
                to such United States person, for a period of 
                not less than 2 years, all licenses for items 
                the export of which is controlled under this 
                Act.
          [(2) Discretionary sanctions.--In the case of any 
        determination referred to in paragraph (1), the 
        Secretary may pursue any other appropriate penalties 
        under section 11 of this Act.
          [(3) Waiver.--The President may waive the imposition 
        of sanctions under paragraph (1) on a person with 
        respect to a product or service if the President 
        certifies to the Congress that--
                  [(A) the product or service is essential to 
                the national security of the United States; and
                  [(B) such person is a sole source supplier of 
                the product or service, the product or service 
                is not available from any alternative reliable 
                supplier, and the need for the product or 
                service cannot be met in a timely manner by 
                improved manufacturing processes or 
                technological developments.
  [(b) Transfers of Missile Equipment or Technology by Foreign 
Persons.--
          [(1) Sanctions.--(A) Subject to paragraphs (3) 
        through (7), if the President determines that a foreign 
        person, after the date of the enactment of this 
        section, knowingly--
                  [(i) exports, transfers, or otherwise engages 
                in the trade of any MTCR equipment or 
                technology that contributes to the design, 
                development, or production of missiles in a 
                country that is not an MTCR adherent and would 
                be, if it were United States-origin equipment 
                or technology, subject to the jurisdiction of 
                the United States under this Act,
                  [(ii) conspires to or attempts to engage in 
                such export, transfer, or trade, or
                  [(iii) facilitates such export, transfer, or 
                trade by any other person,
        or if the President has made a determination with 
        respect to a foreign person under section 73(a) of the 
        Arms Export Control Act, then the President shall 
        impose on that foreign person the applicable sanctions 
        under subparagraph (B).
          [(B) The sanctions which apply to a foreign person 
        under subparagraph (A) are the following:
                  [(i) If the item involved in the export, 
                transfer, or trade is within category II of the 
                MTCR Annex, then the President shall deny, for 
                a period of 2 years, licenses for the transfer 
                to such foreign person of missile equipment or 
                technology the export of which is controlled 
                under this Act.
                  [(ii) If the item involved in the export, 
                transfer, or trade is within category I of the 
                MTCR Annex, then the President shall deny, for 
                a period of not less than 2 years, licenses for 
                the transfer to such foreign person of items 
                the export of which is controlled under this 
                Act.
                  [(iii) If, in addition to actions taken under 
                clauses (i) and (ii), the President determines 
                that the export, transfer, or trade has 
                substantially contributed to the design, 
                development, or production of missiles in a 
                country that is not an MTCR adherent, then the 
                President shall prohibit, for a period of not 
                less than 2 years, the importation into the 
                United States of products produced by that 
                foreign person.
          [(2) Inapplicability with respect to mtcr 
        adherents.--Paragraph (1) does not apply with respect 
        to--
                  [(A) any export, transfer, or trading 
                activity that is authorized by the laws of an 
                MTCR adherent, if such authorization is not 
                obtained by misrepresentation or fraud; or
                  [(B) any export, transfer, or trade of an 
                item to an end user in a country that is an 
                MTCR adherent.
          [(3) Effect of enforcement actions by mtcr 
        adherents.--Sanctions set forth in paragraph (1) may 
        not be imposed under this subsection on a person with 
        respect to acts described in such paragraph or, if such 
        sanctions are in effect against a person on account of 
        such acts, such sanctions shall be terminated, if an 
        MTCR adherent is taking judicial or other enforcement 
        action against that person with respect to such acts, 
        or that person has been found by the government of an 
        MTCR adherent to be innocent of wrongdoing with respect 
        to such acts.
          [(4) Advisory opinions.--The Secretary, in 
        consultation with the Secretary of State and the 
        Secretary of Defense, may, upon the request of any 
        person, issue an advisory opinion to that person as to 
        whether a proposed activity by that person would 
        subject that person to sanctions under this subsection. 
        Any person who relies in good faith on such an advisory 
        opinion which states that the proposed activity would 
        not subject a person to such sanctions, and any person 
        who thereafter engages in such activity, may not be 
        made subject to such sanctions on account of such 
        activity.
          [(5) Waiver and report to congress.--(A) In any case 
        other than one in which an advisory opinion has been 
        issued under paragraph (4) stating that a proposed 
        activity would not subject a person to sanctions under 
        this subsection, the President may waive the 
        application of paragraph (1) to a foreign person if the 
        President determines that such waiver is essential to 
        the national security of the United States.
          [(B) In the event that the President decides to apply 
        the waiver described in subparagraph (A), the President 
        shall so notify the Congress not less than 20 working 
        days before issuing the waiver. Such notification shall 
        include a report fully articulating the rationale and 
        circumstances which led the President to apply the 
        waiver.
          [(6) Additional waiver.--The President may waive the 
        imposition of sanctions under paragraph (1) on a person 
        with respect to a product or service if the President 
        certifies to the Congress that--
                  [(A) the product or service is essential to 
                the national security of the United States; and
                  [(B) such person is a sole source supplier of 
                the product or service, the product or service 
                is not available from any alternative reliable 
                supplier, and the need for the product or 
                service cannot be met in a timely manner by 
                improved manufacturing processes or 
                technological developments.
          [(7) Exceptions.--The President shall not apply the 
        sanction under this subsection prohibiting the 
        importation of the products of a foreign person--
                  [(A) in the case of procurement of defense 
                articles or defense services--
                          [(i) under existing contracts or 
                        subcontracts, including the exercise of 
                        options for production quantities to 
                        satisfy requirements essential to the 
                        national security of the United States;
                          [(ii) if the President determines 
                        that the person to which the sanctions 
                        would be applied is a sole source 
                        supplier of the defense articles and 
                        services, that the defense articles or 
                        services are essential to the national 
                        security of the United States, and that 
                        alternative sources are not readily or 
                        reasonably available; or
                          [(iii) if the President determines 
                        that such articles or services are 
                        essential to the national security of 
                        the United States under defense 
                        coproduction agreements or NATO 
                        Programs of Cooperation;
                  [(B) to products or services provided under 
                contracts entered into before the date on which 
                the President publishes his intention to impose 
                the sanctions; or
                  [(C) to--
                          [(i) spare parts,
                          [(ii) component parts, but not 
                        finished products, essential to United 
                        States products or production,
                          [(iii) routine services and 
                        maintenance of products, to the extent 
                        that alternative sources are not 
                        readily or reasonably available, or
                          [(iv) information and technology 
                        essential to United States products or 
                        production.
  [(c) Definitions.--For purposes of this section and 
subsection (k) and (l) of section 6--
          [(1) the term ``missile'' means a category I system 
        as defined in the MTCR Annex, and any other unmanned 
        delivery system of similar capability, as well as the 
        specially designed production facilities for these 
        systems;
          [(2) the term ``Missile Technology Control Regime'' 
        or ``MTCR'' means the policy statement, between the 
        United States, the United Kingdom, the Federal Republic 
        of Germany, France, Italy, Canada, and Japan, announced 
        on April 16, 1987, to restrict sensitive missile-
        relevant transfers based on the MTCR Annex, and any 
        amendments thereto;
          [(3) the term ``MTCR adherent'' means a country that 
        participates in the MTCR or that, pursuant to an 
        international understanding to which the United States 
        is a party, controls MTCR equipment or technology in 
        accordance with the criteria and standards set forth in 
        the MTCR;
          [(4) the term ``MTCR Annex'' means the Guidelines and 
        Equipment and Technology Annex of the MTCR, and any 
        amendments thereto;
          [(5) the terms ``missile equipment or technology'' 
        and ``MTCR equipment or technology'' mean those items 
        listed in category I or category II of the MTCR Annex;
          [(6) the term ``foreign person'' means any person 
        other than a United States person;
          [(7)(A) the term ``person'' means a natural person as 
        well as a corporation, business association, 
        partnership, society, trust, any other nongovernmental 
        entity, organization, or group, and any governmental 
        entity operating as a business enterprise, and any 
        successor of any such entity; and
          [(B) in the case of countries where it may be 
        impossible to identify a specific governmental entity 
        referred to in subparagraph (A), the term ``person'' 
        means--
                  [(i) all activities of that government 
                relating to the development or production of 
                any missile equipment or technology; and
                  [(ii) all activities of that government 
                affecting the development or production of 
                aircraft, electronics, and space systems or 
                equipment; and
          [(8) the term ``otherwise engaged in the trade of'' 
        means, with respect to a particular export or transfer, 
        to be a freight forwarder or designated exporting 
        agent, or a consignee or end user of the item to be 
        exported or transferred.

        [chemical and biological weapons proliferation sanctions

  [Sec. 11C. (a) Imposition of Sanctions.--
          [(1) Determination by the president.--Except as 
        provided in subsection (b)(2), the President shall 
        impose both of the sanctions described in subsection 
        (c) if the President determines that a foreign person, 
        on or after the date of the enactment of this section, 
        has knowingly and materially contributed--
                  [(A) through the export from the United 
                States of any goods or technology that are 
                subject to the jurisdiction of the United 
                States under this Act, or
                  [(B) through the export from any other 
                country of any goods or technology that would 
                be, if they were United States goods or 
                technology, subject to the jurisdiction of the 
                United States under this Act,
        to the efforts by any foreign country, project, or 
        entity described in paragraph (2) to use, develop, 
        produce, stockpile, or otherwise acquire chemical or 
        biological weapons.
          [(2) Countries, projects, or entities receiving 
        assistance.--Paragraph (1) applies in the case of--
                  [(A) any foreign country that the President 
                determines has, at any time after January 1, 
                1980--
                          [(i) used chemical or biological 
                        weapons in violation of international 
                        law;
                          [(ii) used lethal chemical or 
                        biological weapons against its own 
                        nationals; or
                          [(iii) made substantial preparations 
                        to engage in the activities described 
                        in clause (i) or (ii);
                  [(B) any foreign country whose government is 
                determined for purposes of section 6(j) of this 
                Act to be a government that has repeatedly 
                provided support for acts of international 
                terrorism; or
                  [(C) any other foreign country, project, or 
                entity designated by the President for purposes 
                of this section.
          [(3) Persons against which sanctions are to be 
        imposed.--Sanctions shall be imposed pursuant to 
        paragraph (1) on--
                  [(A) the foreign person with respect to which 
                the President makes the determination described 
                in that paragraph;
                  [(B) any successor entity to that foreign 
                person;
                  [(C) any foreign person that is a parent or 
                subsidiary of that foreign person if that 
                parent or subsidiary knowingly assisted in the 
                activities which were the basis of that 
                determination; and
                  [(D) any foreign person that is an affiliate 
                of that foreign person if that affiliate 
                knowingly assisted in the activities which were 
                the basis of that determination and if that 
                affiliate is controlled in fact by that foreign 
                person.
  [(b) Consultations With and Actions by Foreign Government of 
Jurisdiction.--
          [(1) Consultations.--If the President makes the 
        determinations described in subsection (a)(1) with 
        respect to a foreign person, the Congress urges the 
        President to initiate consultations immediately with 
        the government with primary jurisdiction over that 
        foreign person with respect to the imposition of 
        sanctions pursuant to this section.
          [(2) Actions by government of jurisdiction.--In order 
        to pursue such consultations with that government, the 
        President may delay imposition of sanctions pursuant to 
        this section for a period of up to 90 days. Following 
        these consultations, the President shall impose 
        sanctions unless the President determines and certifies 
        to the Congress that that government has taken specific 
        and effective actions, including appropriate penalties, 
        to terminate the involvement of the foreign person in 
        the activities described in subsection (a)(1). The 
        President may delay imposition of sanctions for an 
        additional period of up to 90 days if the President 
        determines and certifies to the Congress that that 
        government is in the process of taking the actions 
        described in the preceding sentence.
          [(3) Report to congress.--The President shall report 
        to the Congress, not later than 90 days after making a 
        determination under subsection (a)(1), on the status of 
        consultations with the appropriate government under 
        this subsection, and the basis for any determination 
        under paragraph (2) of this subsection that such 
        government has taken specific corrective actions.
  [(c) Sanctions.--
          [(1) Description of sanctions.--The sanctions to be 
        imposed pursuant to subsection (a)(1) are, except as 
        provided in paragraph (2) of this subsection, the 
        following:
                  [(A) Procurement sanction.--The United States 
                Government shall not procure, or enter into any 
                contract for the procurement of, any goods or 
                services from any person described in 
                subsection (a)(3).
                  [(B) Import sanctions.--The importation into 
                the United States of products produced by any 
                person described in subsection (a)(3) shall be 
                prohibited.
          [(2) Exceptions.--The President shall not be required 
        to apply or maintain sanctions under this section--
                  [(A) in the case of procurement of defense 
                articles or defense services--
                          [(i) under existing contracts or 
                        subcontracts, including the exercise of 
                        options for production quantities to 
                        satisfy United States operational 
                        military requirements;
                          [(ii) if the President determines 
                        that the person or other entity to 
                        which the sanctions would otherwise be 
                        applied is a sole source supplier of 
                        the defense articles or services, that 
                        the defense articles or services are 
                        essential, and that alternative sources 
                        are not readily or reasonably 
                        available; or
                          [(iii) if the President determines 
                        that such articles or services are 
                        essential to the national security 
                        under defense coproduction agreements;
                  [(B) to products or services provided under 
                contracts entered into before the date on which 
                the President publishes his intention to impose 
                sanctions;
                  [(C) to--
                          [(i) spare parts,
                          [(ii) component parts, but not 
                        finished products, essential to United 
                        States products or production, or
                          [(iii) routine servicing and 
                        maintenance of products, to the extent 
                        that alternative sources are not 
                        readily or reasonably available;
                  [(D) to information and technology essential 
                to United States products or production; or
                  [(E) to medical or other humanitarian items.
  [(d) Termination of Sanctions.--The sanctions imposed 
pursuant to this section shall apply for a period of at least 
12 months following the imposition of sanctions and shall cease 
to apply thereafter only if the President determines and 
certifies to the Congress that reliable information indicates 
that the foreign person with respect to which the determination 
was made under subsection (a)(1) has ceased to aid or abet any 
foreign government, project, or entity in its efforts to 
acquire chemical or biological weapons capability as described 
in that subsection.
  [(e) Waiver.--
          [(1) Criterion for waiver.--The President may waive 
        the application of any sanction imposed on any person 
        pursuant to this section, after the end of the 12-month 
        period beginning on the date on which that sanction was 
        imposed on that person, if the President determines and 
        certifies to the Congress that such waiver is important 
        to the national security interests of the United 
        States.
          [(2) Notification of and report to congress.--If the 
        President decides to exercise the waiver authority 
        provided in paragraph (1), the President shall so 
        notify the Congress not less than 20 days before the 
        waiver takes effect. Such notification shall include a 
        report fully articulating the rationale and 
        circumstances which led the President to exercise the 
        waiver authority.
  [(f) Definition of Foreign Person.--For the purposes of this 
section, the term ``foreign person'' means--
          [(1) an individual who is not a citizen of the United 
        States or an alien admitted for permanent residence to 
        the United States; or
          [(2) a corporation, partnership, or other entity 
        which is created or organized under the laws of a 
        foreign country or which has its principal place of 
        business outside the United States.

                              [enforcement

  [Sec. 12. (a) General Authority.--(1) To the extent necessary 
or appropriate to the enforcement of this Act or to the 
imposition of any penalty, forfeiture, or liability arising 
under the Export Control Act of 1949 or the Export 
Administration Act of 1969, the head of any department or 
agency exercising any function thereunder (and officers or 
employees of such department or agency specifically designated 
by the head thereof) may make such investigations within the 
United States, and the Commissioner of Customs (and officers or 
employees of the United States Customs Service specifically 
designated by the Commissioner) may make such investigations 
outside of the United States, and the head of such department 
of agency (and such officers or employees) may obtain such 
information from, require such reports or the keeping of such 
records by, make such inspection of the books, records, and 
other writings, premises, or property of, and take the sworn 
testimony of, any person. In addition, such officers or 
employees may administer oaths or affirmations, and may be 
subpena require any person to appear and testify or to appear 
and produce books, records, and other writings, or both, and in 
the case of contumacy by, or refusal to obey a subpena issued 
to, any such person, a district court of the United States, 
after notice to any such person and hearing, shall have 
jurisdiction to issue an order requiring such person to appear 
and give testimony or to appear and produce books, records, and 
other writings, or both, and any failure to obey such order of 
the court may be punished by such court as a contempt thereof. 
In addition to the authority conferred by this paragraph, the 
Secretary (and officers or employees of the Department of 
Commerce designated by the Secretary) may conduct, outside the 
United States, pre-license investigations and post-shipment 
verifications of items licensed for export, and investigations 
in the enforcement of section 8 of this Act.
  [(2)(A) Subject to subparagraph (B) of this paragraph, the 
United States Customs Service is authorized, in the enforcement 
of this Act, to search, detain (after search), and seize goods 
or technology at those ports of entry or exit from the United 
States where officers of the Customs Service are authorized by 
law to conduct such searches, detentions, and seizures, and at 
those places outside the United States where the Customs 
Service, pursuant to agreements or other arrangements with 
other countries, is authorized to perform enforcement 
activities.
  [(B) An officer of the United States Customs Service may do 
the following in carrying out enforcement authority under this 
Act:
          [(i) Stop, search, and examine a vehicle, vessel, 
        aircraft, or person on which or whom such officer has 
        reasonable cause to suspect there are any goods or 
        technology that has been, is being, or is about to be 
        exported from the United States in violation of this 
        Act.
          [(ii) Search any package or container in which such 
        officer has reasonable cause to suspect there are any 
        goods or technology that has been, is being, or is 
        about to be exported from the United States in 
        violation of this Act.
          [(iii) Detain (after search) or seize and secure for 
        trial any goods or technology on or about such vehicle, 
        vessel, aircraft, or person, or in such package or 
        container, if such officer has probable cause to 
        believe the goods or technology has been, is being, or 
        is about to be exported from the United States in 
        violation of this Act.
          [(iv) Make arrests without warrant for any violation 
        of this Act committed in his or her presence or view or 
        if the officer has probable cause to believe that the 
        person to be arrested has committed or is committing 
        such a violation.
The arrest authority conferred by clause (iv) of this 
subparagraph is in addition to any arrest authority under other 
laws. The Customs Service may not detain for more than 20 days 
any shipment of goods or technology eligible for export under a 
general license under section 4(a)(3). In a case in which such 
detention is on account of a disagreement between the Secretary 
and the head of any other department or agency with export 
license authority under other provisions of law concerning the 
export license requirements for such goods or technology, such 
disagreement shall be resolved within that 20-day period. At 
the end of that 20-day period, the Customs Service shall either 
release the goods or technology, or seize the goods or 
technology as authorized by other provisions of law.
  [(3)(A) Subject to subparagraph (B) of this paragraph, the 
Secretary shall have the responsibility for the enforcement of 
section 8 of this Act and, in the enforcement of the other 
provisions of this Act, the Secretary is authorized to search, 
detain (after search), and seize goods or technology at those 
places within the United States other than those ports 
specified in paragraph (2)(A) of this subsection. The search, 
detention (after search), or seizure of goods or technology at 
those ports and places specified in paragraph (2)(A) may be 
conducted by officers or employees of the Department of 
Commerce designated by the Secretary with the concurrence of 
the Commissioner of Customs or a person designated by the 
Commissioner.
  [(B) The Secretary may designate any employee of the Office 
of Export Enforcement of the Department of Commerce to do the 
following in carrying out enforcement authority under this Act:
          [(i) Execute any warrant or other process issued by a 
        court or officer of competent jurisdiction with respect 
        to the enforcement of the provisions of this Act.
          [(ii) Make arrests without warrant for any violation 
        of this Act committed in his or her presence or view, 
        or if the officer or employee has probable cause to 
        believe that the person to be arrested has committed or 
        is committing such a violation.
          [(iii) Carry firearms in carrying out any activity 
        described in clause (i) or (ii).
  [(4) The authorities first conferred by the Export 
Administration Amendments Act of 1985 under paragraph (3) shall 
be exercised pursuant to guidelines approved by the Attorney 
General. Such guidelines shall be issued not later than 120 
days after the date of the enactment of the Export 
Administration Amendments Act of 1985.
  [(5) All cases involving violations of this Act shall be 
referred to the Secretary for purposes of determining civil 
penalties and administrative sanctions under section 11(c) of 
this Act, or to the Attorney General for criminal action in 
accordance with this Act.
  [(6) Nothwithstanding any other provision of law, the United 
States Customs Service may expend in the enforcement of export 
controls under this Act not more than $12,000,000 in the fiscal 
year 1985 and not more than $14,000,000 in the fiscal year 
1986.
  [(7) Not later than 90 days after the date of the enactment 
of the Export Administration Amendments Act of 1985, the 
Secretary, with the concurrence of the Secretary of the 
Treasury, shall publish in the Federal Register procedures 
setting forth, in accordance with this subsection, the 
responsibilities of the Department of Commerce and the United 
States Customs Service in the enforcement of this Act. In 
addition, the Secretary, with the concurrence of the Secretary 
of the Treasury, may publish procedures for the sharing of 
information in accordance with subsection (c)(3) of this 
section, and procedures for the submission to the appropriate 
departments and agencies by private persons of information 
relating to the enforcement of this Act.
  [(8) For purposes of this section, a reference to the 
enforcement of this Act or to a violation of this Act includes 
a reference to the enforcement or a violation of any 
regulation, order, or license issued under this Act.
  [(b) Immunity.--No person shall be excused from complying 
with any requirements under this section because of his 
privilege against self-incrimination, but the immunity 
provisions of section 6002 of title 18, United States Code, 
shall apply with respect to any individual who specifically 
claims such privilege.
  [(c) Confidentiality.--(1) Except as otherwise provided by 
the third sentence of section 8(b)(2) and by section 
11(c)(2)(C) of this Act, information obtained under this Act on 
or before June 30, 1980, which is deemed confidential, 
including Shippers' Export Declarations, or with reference to 
which a request for confidential treatment is made by the 
person furnishing such information, shall be exempt from 
disclosure under section 552 of title 5, United States Code, 
and such information shall not be published or disclosed unless 
the Secretary determines that the withholding thereof is 
contrary to the national interest. Information obtained under 
this Act after June 30, 1980, may be withheld only to the 
extent permitted by statute, except that information obtained 
for the purpose of consideration of, or concerning, license 
applications under this Act shall be withheld from public 
disclosure unless the release of such information is determined 
by the Secretary to be in the national interest. Enactment of 
this subsection shall not affect any judicial proceeding 
commenced under section 552 of title 5, United States Code, to 
obtain access to boycott reports submitted prior to October 31, 
1976, which was pending on May 15, 1979; but such proceeding 
shall be continued as if this Act had not been enacted.
  [(2) Nothing in this Act shall be construed as authorizing 
the withholding of information from the Congress or from the 
General Accounting Office. All information at any time under 
this Act or previous Acts regarding the control of exports, 
including any report or license application required under this 
Act, shall be made available to any committee or subcommittee 
of Congress of appropriate jurisdiction upon request of the 
chairman or ranking minority member of such committee or 
subcommittee. No such committee or subcommittee, or member 
thereof, shall disclose any information obtained under this Act 
or previous Acts regarding the control of exports which is 
submitted on a confidential basis unless the full committee 
determines that the withholding of that information is contrary 
to the national interest. Notwithstanding paragraph (1) of this 
subsection, information referred to in the second sentence of 
this paragraph shall, consistent with the protection of 
intelligence, counterintelligence, and law enforcement sources, 
methods, and activities, as determined by the agency that 
originally obtained the information, and consistent with the 
provisions of section 313 of the Budget and Accounting Act, 
1921, be made available only by that agency, upon request, to 
the Comptroller General of the United States or to any officer 
or employee of the General Accounting Office who is authorized 
by the Comptroller General to have access to such information. 
No officer or employee of the General Accounting Office shall 
disclose, except to the Congress in accordance with this 
paragraph, any such information which is submitted on a 
confidential basis and from which any individual can be 
identified.
  [(3) Any department or agency which obtains information which 
is relevant to the enforcement of this Act, including 
information pertaining to any investigation, shall furnish such 
information to each department or agency with enforcement 
responsibilities under this Act to the extent consistent with 
the protection of intelligence, counterintelligence, and law 
enforcement sources, methods, and activities. The provisions of 
this paragraph shall not apply to information subject to the 
restrictions set forth in section 9 of title 13, United States 
Code; and return information, as defined in subsection (b) of 
section 6103 of the Internal Revenue Code of 1954, may be 
disclosed only as authorized by such section. The Secretary and 
the Commissioner of Customs, upon request, shall exchange any 
licensing and enforcement information with each other which is 
necessary to facilitate enforcement efforts and effective 
license decisions. The Secretary, the Attorney General, and the 
Commissioner of Customs shall consult on a continuing basis 
with one another and with the heads of other departments and 
agencies which obtain information subject to this paragraph, in 
order to facilitate the exchange of such information.
  [(d) Reporting Requirements.--In the administration of this 
Act, reporting requirements shall be so designed as to reduce 
the cost of reporting, recordkeeping, and export documentation 
required under this Act to the extent feasible consistent with 
effective enforcement and compilation of useful trade 
statistics. Reporting, recordkeeping, and export documentation 
requirements shall be periodically reviewed and revised in the 
light of developments in the field of information technology.
  [(e) Simplification of Regulations.--The Secretary, in 
consultation with appropriate United States Government 
departments and agencies and with appropriate technical 
advisory committees established under section 5(h), shall 
review the regulations issued under this Act and the commodity 
control list in order to determine how compliance with the 
provisions of this Act can be facilitated by simplifying such 
regulations, by simplifying or clarifying such list, or by any 
other means.

             [administrative procedure and judicial review

  [Sec. 13. (a) Exemption.--Except as provided in section 
11(c)(2) and subsection (c) of this section, the functions 
exercised under this Act are excluded from the operation of 
sections 551, 553 through 559, and 701 through 706 of title 5, 
United States Code.
  [(b) Public Participation.--It is the intent of the Congress 
that, to the extent practicable, all regulations imposing 
controls on exports under this Act be issued in proposed form 
with meaningful opportunity for public comment before taking 
effect. In cases where a regulation imposing controls under 
this Act is issued with immediate effect, it is the intent of 
the Congress that meaningful opportunity for public comment 
also be provided and that the regulation be reissued in final 
form after public comments have been fully considered.
  [(c) Procedures Relating to Civil Penalties and Sanctions.--
(1) In any case in which a civil penalty or other civil 
sanction (other than a temporary denial order or a penalty or 
sanction for a violation of section 8) is sought under section 
11 of this Act, the charged party is entitled to receive a 
formal complaint specifying the charges and, at his or her 
request, to contest the charges in a hearing before an 
administrative law judge. Subject to the provisions of this 
subsection, any such hearing shall be conducted in accordance 
with sections 556 and 557 of title 5, United States Code. With 
the approval of the administrative law judge, the Government 
may present evidence in camera in the presence of the charged 
party or his or her representative. After the hearing, the 
administrative law judge shall make findings of fact and 
conclusions of law in a written decision, which shall be 
referred to the Secretary. The Secretary shall, in a written 
order, affirm, modify, or vacate the decision of the 
administrative law judge within 30 days after receiving the 
decison. The order of the Secretary shall be final and is not 
subject to judicial review, except as provided in paragraph 
(3).
  [(2) The proceedings described in paragraph (1) shall be 
concluded within a period of 1 year after the complaint is 
submitted, unless the administrative law judge extends such 
period for good cause shown.
  [(3) The order of the Secretary under paragraph (1) shall be 
final, except that the charged party may, within 15 days after 
the order is issued, appeal the order in the United States 
Court of Appeals for the District of Columbia Circuit, which 
shall have jurisdiction of the appeal. The court may, while the 
appeal is pending, stay the order of the Secretary. The court 
may review only those issues necessary to determine liability 
for the civil penalty or other sanction involved. In an appeal 
filed under this paragraph, the court shall set aside any 
finding of fact for which the court finds there is not 
substantial evidence on the record and any conclusion of law 
which the court finds to be arbitrary, capricious, an abuse of 
discretion, or otherwise not in accordance with law.
  [(4) An administrative law judge referred to in this 
subsection shall be appointed by the Secretary from among those 
considered qualified for selection and appointment under 
section 3105 of title 5, United States Code. Any person who, 
for at least 2 of the 10 years immediately preceding the date 
of the enactment of the Export Administration Amendments Act of 
1985, has served as a hearing commissioner of the Department of 
Commerce shall be included among these considered as qualified 
for selection and appointment to such position.
  [(d) Imposition of Temporary Denial Orders.--(1) In any case 
in which it is necessary, in the public interest, to prevent an 
imminent violation of this Act or any regulation, order, or 
license issued under this Act, the Secretary may, without a 
hearing, issue an order temporarily denying United States 
export privileges (hereinafter in this subsection referred to 
as a ``temporary denial order'') to a person. A temporary 
denial order may be effective no longer than 180 days unless 
renewed in writing by the Secretary for additional 180-day 
periods in order to prevent such an imminent violation, except 
that a temporary denial order may be renewed only after notice 
and an opportunity for a hearing is provided.
  [(2) A temporary denial order shall define the imminent 
violation and state why the temporary denial order was granted 
without a hearing. The person or persons subject to the 
issuance or renewal of a temporary denial order may file an 
appeal of the issuance or renewal of the temporary denial order 
with an administrative law judge who shall, within 10 working 
days after the appeal is filed, recommend that the temporary 
denial order be affirmed, modified, or vacated. Parties may 
submit briefs and other material to the judge. The 
recommendation of the administrative law judge shall be 
submitted to the Secretary who shall either accept, reject, or 
modify the recommendation by written order within 5 working 
days after receiving the recommendation. The written order of 
the Secretary under the preceding sentence shall be final and 
is not subject to judicial review, except as provided in 
paragraph (3). The temporary denial order shall be affirmed 
only if it is reasonable to believe that the order is required 
in the public interest to prevent an imminent violation of this 
Act or any regulation, order, or license issued under this Act. 
All materials submitted to the administrative law judge and the 
Secretary shall constitute the administrative record for 
purposes of review by the courts.
  [(3) An order of the Secretary affirming, in whole or in 
part, the issuance of a temporary denial order may, within 15 
days after the order is issued, be appealed by a person subject 
to the order to the United States Court of Appeals for the 
District of Columbia Circuit, which shall have jurisdiction of 
the appeal. The court may review only those issues necessary to 
determine whether the standard for issuing the temporary denial 
order has been met. The court shall vacate the Secretary's 
order if the court finds that the Secretary's order is 
arbitrary, capricious, an abuse of discretion, or otherwise not 
in accordance with law.
  [(e) Appeals From License Denials.--A determination of the 
Secretary, under section 10(f) of this Act, to deny a license 
may be appealed by the applicant to an administrative law judge 
who shall have the authority to conduct proceedings to 
determine only whether the item sought to be exported is in 
fact on the control list. Such proceedings shall be conducted 
within 90 days after the appeal is filed. Any determination by 
an administrative law judge under this subsection and all 
materials filed before such judge in the proceedings shall be 
reviewed by the Secretary, who shall either affirm or vacate 
the determination in a written decision within 30 days after 
receiving the determination. The Secretary's written decision 
shall be final and is not subject to judicial review. Subject 
to the limitations provided in section 12(c) of this Act, the 
Secretary's decision shall be published in the Federal 
Register.

                             [annual report

  [Sec. 14. (a) Contents.--Not later than December 31 of each 
year, the Secretary shall submit to the Congress a report on 
the administration of this Act during the preceding fiscal 
year. All agencies shall cooperate fully with the Secretary in 
providing information for such report. Such report shall 
include detailed information with respect to--
          [(1) the implementation of the policies set forth in 
        section 3;
          [(2) general licensing activities under sections 5, 
        6, and 7, and any changes in the exercise of the 
        authorities contained in sections 5(a), 6(a), and 7(a);
          [(3) the results of the review of United States 
        policy toward individual countries pursuant to section 
        5(b);
          [(4) the results, in as much detail as may be 
        included consistent with the national security and the 
        need to maintain the confidentiality of proprietary 
        information, of the actions, including reviews and 
        revisions of export controls maintained for national 
        security purposes, required by section 5(c)(3);
          [(5) actions taken to carry our section 5(d);
          [(6) changes in categories of items under export 
        control referred to in section 5(e);
          [(7) determinations of foreign availability made 
        under section 5(f), the citeria used to make such 
        determinations, the removal of any export controls 
        under such section, and any evidence demonstrating a 
        need to impose export controls for national security 
        purposes notwithstanding foreign availability;
          [(8) actions taken in compliance with section 
        5(f)(6);
          [(9) the operation of the indexing system under 
        section 5(g);
          [(10) consultations with the technical advisory 
        committees established pursuant to section 5(h), the 
        use made of the advice rendered by such committees, and 
        the contributions of such committees toward 
        implementing the policies set forth in this Act;
          [(11) the effectiveness of export controls imposed 
        under section 6 in furthering the foreign policy of the 
        United States;
          [(12) export controls and monitoring under section 7;
          [(13) the information contained in the reports 
        required by section 7(b)(2), together with an analysis 
        of--
                  [(A) the impact on the economy and world 
                trade of shortages or increased prices for 
                commodities subject to monitoring under this 
                Act or section 812 of the Agricultural Act of 
                1970;
                  [(B) the worldwide supply of such 
                commodities; and
                  [(C) actions being taken by other countries 
                in response to such shortages or increased 
                prices;
          [(14) actions taken by the President and the 
        Secretary to carry out the antiboycott policies set 
        forth in section 3(5) of this Act;
          [(15) organizational and procedural changes 
        undertaken in furtherance of the policies set forth in 
        this Act, including changes to increase the efficiency 
        of the export licensing process and to fulfill the 
        requirements of section 10, including an accounting of 
        appeals received, court orders issued, and actions 
        taken pursuant thereto under subsection (j) of such 
        section;
          [(16) delegations of authority by the President as 
        provided in section 4(e) of this Act;
          [(17) efforts to keep the business sector of the 
        Nation informed with respect to policies and procedures 
        adopted under this Act;
          [(18) any reviews undertaken in furtherance of the 
        policies of this Act, including the results of the 
        review required by section 12(d), and any action taken, 
        on the basis of the review required by section 12(e), 
        to simplify regulations issued under this Act;
          [(19) violations under section 11 and enforcement 
        activities under section 12; and
          [(20) the issuance of regulations under the authority 
        of this Act, including an explanation of each case in 
        which regulations were not issued in accordance with 
        the first sentence of section 13(b).
  [(b) Report on Certain Export Controls.--To the extent that 
the President determines that the policies set forth in section 
3 of this Act require the control of the export of goods and 
technology other than those subject to multilateral controls, 
or require more stringent controls than the multilateral 
controls, the President shall include in each annual report the 
reasons for the need to impose, or to continue to impose, such 
controls and the estimated domestic economic impact on the 
various industries affected by such controls.
  [(c) Report on Negotiations.--The President shall include in 
each annual report a detailed report on the progress of the 
negotiations required by section 5(i), until such negotiations 
are concluded.
  [(d) Report on Exports to Controlled Countries.--The 
Secretary shall include in each annual report a detailed report 
which lists every license for exports to controlled countries 
which was approved under this Act during the preceding fiscal 
year. Such report shall specify to whom the license was 
granted, the type of goods or technology exported, and the 
country receiving the goods or technology. The information 
required by this subsection shall be subject to the provisions 
of section 12(c) of this Act.
  [(e) Report on Domestic Economic Impact of Exports to 
Controlled Countries.--The Secretary shall include in each 
annual report a detailed description of the extent of injury to 
United States industry and the extent of job displacement 
caused by United States exports of goods and technology to 
controlled countries. The annual report shall also include a 
full analysis of the consequences of exports of turnkey plants 
and manufacturing facilities to controlled countries which are 
used by such countries to produce goods for export to the 
United States or to compete with United States products in 
export markets.
  [(f) Annual Report of the President.--The President shall 
submit an annual report to the Congress estimating the 
additional defense expenditures of the United States arising 
from illegal technology transfers, focusing on estimated 
defense costs arising from illegal technology transfers that 
resulted in a serious adverse impact on the strategic balance 
of forces. These estimates shall be based on assessment by the 
intelligence community of any technology transfers that 
resulted in such serious adverse impact. This report may have a 
classified annex covering any information of a sensitive 
nature.

                [administrative and regulatory authority

  [Sec. 15. (a) Under Secretary of Commerce.--The President 
shall appoint, by and with the advice and consent of the 
Senate, an Under Secretary of Commerce for Export 
Administration who shall carry out all functions of the 
Secretary under this Act and such other statutes that relate to 
national security which were delegated to the office of the 
Assistant Secretary of Commerce for Trade Administration before 
the date of the enactment of the Export Administration 
Amendments Act of 1985, and such other functions under this Act 
which were delegated to such office before such date of 
enactment, as the Secretary may delegate. The President shall 
appoint, by and with the advice and consent of the Senate, two 
Assistant Secretaries of Commerce to assist the Under Secretary 
in carrying out such functions.
  [(b) Issuance of Regulations.--The President and the 
Secretary may issue such regulations as are necessary to carry 
out the provisions of this Act. Any such regulations issued to 
carry out the provisions of section 5(a), 6(a), 7(a), or (8)(b) 
may apply to the financing, transporting, or other servicing of 
exports and the participation therein by any person. Any such 
regulations the purpose of which is to carry out the provisions 
of section 5, or of section 4(a) for the purpose of 
administering the provisions of section 5, may be issued only 
after the regulations are submitted for review to the Secretary 
of Defense, the Secretary of State, such other departments and 
agencies as the Secretary considers appropriate, and the 
appropriate technical advisory committee. The preceding 
sentence does not require the concurrence or approval of any 
official, department, or agency to which such regulations are 
submitted.
  [(c) Amendments to Regulations.--If the Secretary proposes to 
amend regulations issued under this Act, the Secretary shall 
report to the Committee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Foreign Affairs of the House 
of Representatives on the intent and rationale of such 
amendments. Such report shall evaluate the cost and burden to 
United States exporters of the proposed amendments in relation 
to any enhancement of licensing objectives. The Secretary shall 
consult with the technical advisory committees authorized under 
section 5(h) of this Act in formulating or amending regulations 
issued under this Act. The procedures defined by regulations in 
effect on January 1, 1984, with respect to sections 4 and 5 of 
this Act, shall remain in effect unless the Secretary 
determines, on the basis of substantial and reliable evidence, 
that specific change is necessary to enhance the prevention of 
diversions of exports which would prove detrimental to the 
national security of the United States or to reduce the 
licensing and paperwork burden on exporters and their 
distributors.

                              [definitions

  [Sec. 16. As used in this Act--
          [(1) the term ``person'' includes the singular and 
        the plural and any individual, partnership, 
        corporation, or other form of association, including 
        any government or agency thereof;
          [(2) the term ``United States person'' means any 
        United States resident or national (other than an 
        individual resident outside the United States and 
        employed by other than a United States person), any 
        domestic concern (including any permanent domestic 
        establishment of any foreign concern) and any foreign 
        subsidiary or affiliate (including any permanent 
        foreign establishment) of any domestic concern which is 
        controlled in fact by such domestic concern, as 
        determined under regulations of the President;
          [(3) the term ``good'' means any article, natural or 
        manmade substance, material, supply or manufactured 
        product, including inspection and test equipment, and 
        excluding technical data;
          [(4) the term ``technology'' means the information 
        and knowhow (whether in tangible form, such as models, 
        prototypes, drawings, sketches, diagrams, blueprints, 
        or manuals, or in intangible form, such as training or 
        technical services) that can be used to design, 
        produce, manufacture, utilize, or reconstruct goods, 
        including computer software and technical data, but not 
        the goods themselves;
          [(5) the term ``export'' means--
                  [(A) an actual shipment, transfer, or 
                tramsmission of goods or technology out of the 
                United States;
                  [(B) a transfer of goods or technology in the 
                United States to an embassy or affiliate of a 
                controlled country; or
                  [(C) a transfer to any person of goods or 
                technology either within the United States or 
                outside of the United States with the knowledge 
                or intent that the goods or technology will be 
                shipped, transferred, or transmitted to an 
                unauthorized recipient;
          [(6) the term ``controlled country'' means a 
        controlled country under section 5(b)(1) of this Act;
          [(7) the term ``United States'' means the States of 
        the United States, the District of Columbia, and any 
        commonwealth, territory, dependency, or possession of 
        the United States, and includes the outer Continental 
        Shelf, as defined in section 2(a) of the Outer 
        Continental Shelf Lands Act (43 U.S.C. 1331(a)); and
          [(8) the term ``Secretary'' means the Secretary of 
        Commerce.

                         [effect on other acts

  [Sec. 17. (a) In General.--Except as otherwise provided in 
this Act, nothing contained in this Act shall be construed to 
modify, repeal, supersede, or otherwise affect the provisions 
of any other laws authorizing control over exports of any 
commodity.
  [(b) Coordination of Controls.--The authority granted to the 
President under this Act shall be exercised in such manner as 
to achieve effective coordination with the authority exercised 
under section 38 of the Arms Export Control Act (22 U.S.C. 
2778).
  [(c) Civil Aircraft Equipment.--Notwithstanding any other 
provision of law, any product (1) which is standard equipment 
certified by the Federal Aviation Administration, in civil 
aircraft and is an integral part of such aircraft, and (2) 
which is to be exported to a country other than a controlled 
country, shall be subject to export controls exclusively under 
this Act. Any such product shall not be subject to controls 
under section 38(b)(2) of the Arms Export Control Act.
  [(d) Nonproliferation Controls.--(1) Nothing in section 5 or 
6 of this Act shall be construed to supersede the procedures 
published by the President pursuant to section 309(c) of the 
Nuclear Non-Proliferation Act of 1978.
  [(2) With respect to any export license application which, 
under the procedures published by the President pursuant to 
section 309(c) of the Nuclear Non-Proliferation Act of 1978, is 
referred to the Subgroup on Nuclear Export Coordination or 
other interagency group, the provisions of section 10 of this 
Act shall apply with respect to such license application only 
to the extent that they are consistent with such published 
procedures, except that if the processing of any such 
application under such procedures is not completed within 180 
days after the receipt of the application by the Secretary, the 
applicant shall have the rights of appeal and court action 
provided in section 10(j) of this Act.
  [(e) Termination of Other Authority.--On October 1, 1979, the 
Mutual Defense Assistance Control Act of 1951 (22 U.S.C. 1611-
1613d), is superseded.
  [(f) Agricultural Act of 1970.--Nothing in this Act shall 
affect the provisions of the last sentence of section 812 of 
the Agricultural Act of 1970 (7 U.S.C. 612c-3).

                    [authorization of appropriations

  [Sec. 18. (a) Requirement of Authorizing Legislation.--(1) 
Notwithstanding any other provisions of law, money appropriated 
to the Department of Commerce for expenses to carry out the 
purposes of this Act may be obligated or expended only if--
          [(A) the appropriation thereof has been previously 
        authorized by law enacted on or after the date of the 
        enactment of the Export Administration Amendments Act 
        of 1985; or
          [(B) the amount of all such obligations and 
        expenditures does not exceed an amount previously 
        prescribed by law enacted on or after such date.
  [(2) To the extent that legislation enacted after the making 
of an appropriation to carry out the purposes of this Act 
authorizes the obligation or expenditure thereof, the 
limitation contained in paragraph (1) shall have no effect.
  [(3) The provisions of this subsection shall not be 
superseded except by a provision of law enacted after the date 
of the enactment of the Export Administration Amendments Act of 
1985 which specifically repeals, modifies, or supersedes the 
provisions of this subsection.
  [(b) Authorization.--There are authorized to be appropriated 
to the Department of Commerce to carry out the purposes of this 
Act--
          [(1) $42,813,000 for the fiscal year 1993;
          [(2) such sums as may be necessary for the fiscal 
        year 1994; and
          [(3) such additional amounts, for each such fiscal 
        year, as may be necessary for increases in salary, pay, 
        retirement, other employee benefits authorized by law, 
        and other nondiscretionary costs.

                            [effective date

  [Sec. 19. (a) Effective Date.--This Act shall take effect 
upon the expiration of the Export Administration Act of 1969.
  [(b) Issuance of Regulations.--(1) Regulations implementing 
the provisions of section 10 of this Act shall be issued and 
take effect not later than July 1, 1980.
  [(2) Regulations implementing the provisions of section 7(c) 
of this Act shall be issued and take effect not later than 
January 1, 1980.

                           [termination date

  [Sec. 20. The authority granted by this Act terminates on 
August 20, 2001.

                          [savings provisions

  [Sec. 21. (a) In General.--All, delegations, rules, 
regulations, orders, determinations, licenses, or other forms 
of administrative action which have been made, issued, 
conducted, or allowed to become effective under the Export 
Control Act of 1949 or the Export Administration Act of 1969 
and which are in effect at the time this Act takes effect shall 
continue in effect according to their terms until modified, 
superseded, set aside, or revoked under this Act.
  [(b) Administrative Proceedings.--This Act shall not apply to 
any administrative proceedings commenced or any application for 
a license made, under the Export Administration Act of 1969, 
which is pending at the time this Act takes effect.

                         [technical amendments

  [Sec. 22. (a) Section 38(e) of the Arms Export Control Act 
(22 U.S.C. 2778(e)) is amended by striking out ``sections 6(c), 
(d), (e), and (f) and 7(a) and (c) of the Export Administration 
Act of 1969'' and inserting in lieu thereof ``subsections (c), 
(d), (e), and (f) of section 11 of the Export Administration 
Act of 1979, and by subsections (a) and (c) of section 12 of 
such Act''.
  [(b)(1) Section 103(c) of the Energy Policy and Conservation 
Act (42 U.S.C. 6212(c)) is amended--
          [(A) by striking out ``1969'' and inserting in lieu 
        thereof ``1979''; and
          [(B) by striking out ``(A)'' and inserting in lieu 
        thereof ``(C)''.
  [(2) Section 254(e)(3) of such Act (42 U.S.C. 6274(e)(3)) is 
amended by striking out ``section 7 of the Export 
Administration Act of 1969'' and inserting in lieu thereof 
``section 12 of the Export Administration Act of 1979''.
  [(c) Section 993(c)(2)(D) of the Internal Revenue Code of 
1954 (26 U.S.C. 993(c)(2)(D)i) s amended--
          [(1) by striking out ``403(b) of the Export 
        Administration Act of 1969 (50 U.S.C. App. 2403(b))'' 
        and inserting in lieu thereof ``7(a) of the Export 
        Administration Act of 1979''; and
          [(2) by striking out ``(A)'' and inserting in lieu 
        thereof ``(C)''.

          [international investment survey act authorizations

  [Sec. 23. (a) Section 9 of the International Investment 
Survey Act of 1976 (22 U.8.C. 3108) is amended to read as 
follows: * * *
  [(b) The amendment made by subsection (a) shall take effect 
on October 1,1979.

                             [miscellaneous

  [Sec. 24.  Section 402 of the Agricultural Trade Development 
and Assistance Act of 1954 is amended by inserting ``or beer'' 
in the second sentence immediately after ``wine''.]

                                  [all]