[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1883 Reported in House (RH)]





                                                 Union Calendar No. 189

106th CONGRESS

  1st Session

                               H. R. 1883

                      [Report No. 106-315, Part I]

_______________________________________________________________________

                                 A BILL

   To provide for the application of measures to foreign persons who 
transfer to Iran certain goods, services, or technology, and for other 
                               purposes.

_______________________________________________________________________

                           September 14, 1999

    Reported from the Committee on International Relations with an 
                               amendment

                           September 14, 1999

 Referral to the Committee on Science extended for a period ending not 
                     later than September 14, 1999

                           September 14, 1999

  Committee on Science discharged; committed to the Committee of the 
    Whole House on the State of the Union and ordered to be printed





                                                 Union Calendar No. 189
106th CONGRESS
  1st Session
                                H. R. 1883

                      [Report No. 106-315, Part I]

   To provide for the application of measures to foreign persons who 
transfer to Iran certain goods, services, or technology, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 20, 1999

  Mr. Gilman (for himself, Mr. Gejdenson, Mr. Sensenbrenner, and Mr. 
   Berman) introduced the following bill; which was referred to the 
Committee on International Relations, and in addition to the Committee 
on Science, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

                           September 14, 1999

    Reported from the Committee on International Relations with an 
                               amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                           September 14, 1999

 Referral to the Committee on Science extended for a period ending not 
                     later than September 14, 1999

                           September 14, 1999

 Additional sponsors: Mr. Norwood, Mr. Shows, Mr. Pastor, Mr. Bachus, 
    Mr. Forbes, Mr. Stump, Mr. Campbell, Mr. King, Mr. Gordon, Mr. 
  Ackerman, Mr. Bilirakis, Mr. Crowley, Mr. Sherman, Mr. Tierney, Mr. 
  Gutierrez, Mr. Salmon, Mr. McGovern, Mr. Graham, Mr. McIntosh, Mr. 
 Holt, Ms. Schakowsky, Mr. Ford, Mr. Pallone, Mr. Dixon, Mrs. Myrick, 
Mrs. Morella, Mr. Armey, Ms. Woolsey, Mr. Doyle, Mr. Wynn, Mr. Weiner, 
Mr. McCollum, Mr. Scarborough, Mr. Coble, Mrs. Northup, Mr Shadegg, Mr. 
 Gonzalez, Mr. Frost, Mr. Menendez, Mr. Hayes, Mr. Foley, Mrs. Lowey, 
 Mr. Wexler, Mr. Deutsch, Mr. McNulty, Mr. Hayworth, Mr. Kingston, Ms. 
 Dunn, Mr. Farr of California, Mrs. Thurman, Mr. Engel, Mr. McIntyre, 
   Ms. Granger, Mr. Weller, Mr. Smith of Washington, Mr. Maloney of 
Connecticut, Mr. Wu, Mr. Horn, Mr. Visclosky, Ms. Eshoo, Mr. Etheridge, 
 Mr. Lucas of Oklahoma, Mr. Rothman, Mr. Camp, Mr. Green of Wisconsin, 
Mr. Underwood, Ms. Ros-Lehtinen, Mr. Stearns, Mr. Sabo, Mr. Porter, Mr. 
   McDermott, Mr. Lucas of Kentucky, Mr. Thompson of California, Mr. 
Nethercutt, Mr. Klink, Mr. Bliley, Mr. Goodling, Mr. Baird, Mr. Deal of 
Georgia, Mr. Turner, Mr. Weygand, Mr. Nadler, Mr. Simpson, Mr. Holden, 
   Mr. Hoeffel, Ms. Rivers, Mr. Borski, Ms. Berkley, Mr. DeLay, Mr. 
 Shimkus, Mr. Pombo, Mr. Sessions, Mr. Cannon, Mr. Levin, Ms. Sanchez, 
 Mr. Hill of Montana, Mr. Payne, Mr. Vento, Mr. Pascrell, Mr. Metcalf, 
Mr. Hall of Texas, Mr. Cunningham, Mr. Miller of Florida, Mr. Tancredo, 
 Ms. DeLauro, Mrs. Maloney of New York, Mr. Aderholt, Mr. Dicks, Mrs. 
Tauscher, Mr. Burr of North Carolina, Mr. Sweeney, Mr. Abercrombie, Mr. 
 Duncan, Mr. Hunter, Mr. Clyburn, Mr. Skelton, Mr. Rodriguez, Mr. Gary 
Miller of California, Mr. LoBiondo, Mr. Lazio, Mr. Baker, Mr. Green of 
   Texas, Mr. Kleczka, Mr. LaTourette, Mr. Bateman, Mr. Mascara, Ms. 
 Baldwin, Mr. Linder, Mr. Whitfield, Mr. Hinchey, Mr. Knollenberg, Mr. 
 Bereuter, Mr. Wicker, Mr. Barton of Texas, Mr. Sununu, Mr. Terry, Mr. 
       Costello, Mr. Cook, Mr. Bilbray, Mr. Waxman, Mr. Frank of 
    Massachusetts, Mr. Kildee, Mr. Vitter, Ms. Lee, Mrs. Kelly, Mr. 
Boehlert, Mr. Strickland, Mr. Cardin, Ms. Pryce of Ohio, Mrs. McCarthy 
   of New York, Mr. Watts of Oklahoma, Mr. Fletcher, Mr. Bryant, Mr. 
  Largent, Ms. DeGette, Mr. Towns, Mr. Wolf, Mrs. Cubin, Mr. Brady of 
 Pennsylvania, Mr. Stupak, Mr. Markey, Ms. Stabenow, Mr. Blagojevich, 
  Mr. Hefley, Mr. Davis of Illinois, Mr. Kennedy of Rhode Island, Mr. 
 Kind, Mr. Matsui, Mr. Andrews, Mr. Tiahrt, Mr. Weldon of Florida, Mr. 
Ryan of Wisconsin, Mr. Wamp, Mr. Reynolds, Ms. Pelosi, Mr. DeMint, Mr. 
  Delahunt, Mr. Fossella, Mrs. Napolitano, Mr. Minge, Mr. Phelps, Mr. 
 Dreier, Mr. Lewis of Georgia, Mr. Leach, Mr. Souder, Mr. Isakson, Mr. 
 Tanner, Mr. Kolbe, Mr. Calvert, Mr. Cramer, Mr. Coyne, Mr. Pickering, 
   Mr. Barcia, Mr. Sisisky, Mrs. Meek of Florida, Mr. Franks of New 
Jersey, Mrs. Jones of Ohio, Mr. Smith of Michigan, Mr. Allen, Ms. Brown 
of Florida, Mr. Inslee, Mr. Moore, Mr. Larson, Mr. Luther, Mr. Sanford, 
   Mr. Kuykendall, Mr. Ryun of Kansas, Mr. Chabot, Mr. Oberstar, Mr. 
Nussle, Mr. Gilchrest, Mr. Boyd, Mr. Hastings of Florida, Mr. Becerra, 
 Mr. Stenholm, Mr. Ramstad, Mr. Ose, Mr. Young of Alaska, Mr. Clement, 
  Ms. Kaptur, Mr. Lantos, Mr. Gephardt, Ms. McCarthy of Missouri, Mr. 
            Walden of Oregon, Mr. Hutchinson, and Mr. Shays

                           September 14, 1999

  Committee on Science discharged; committed to the Committee of the 
    Whole House on the State of the Union and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on May 20, 
                                 1999]

_______________________________________________________________________

                                 A BILL


 
   To provide for the application of measures to foreign persons who 
transfer to Iran certain goods, services, or technology, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Iran Nonproliferation Act of 1999''.

SEC. 2. REPORTS ON PROLIFERATION TO IRAN.

    (a) Reports.--The President shall, at the times specified in 
subsection (b), submit to the Committee on International Relations of 
the House of Representatives and the Committee on Foreign Relations of 
the Senate a report identifying every foreign person with respect to 
whom there is credible information indicating that that person, on or 
after January 1, 1999, transferred to Iran--
            (1) goods, services, or technology listed on--
                    (A) the Nuclear Suppliers Group Guidelines for the 
                Export of Nuclear Material, Equipment and Technology 
                (published by the International Atomic Energy Agency as 
                Information Circular INFCIRC/254/Rev.3/Part 1, and 
                subsequent revisions) and Guidelines for Transfers of 
                Nuclear-Related Dual-Use Equipment, Material, and 
                Related Technology (published by the International 
                Atomic Energy Agency as Information Circular INFCIRC/
                254/Rev.3/Part 2, and subsequent revisions);
                    (B) the Missile Technology Control Regime Equipment 
                and Technology Annex of June 11, 1996, and subsequent 
                revisions;
                    (C) the lists of items and substances relating to 
                biological and chemical weapons the export of which is 
                controlled by the Australia Group;
                    (D) the Schedule One or Schedule Two list of toxic 
                chemicals and precursors the export of which is 
                controlled pursuant to the Convention on the 
                Prohibition of the Development, Production, Stockpiling 
                and Use of Chemical Weapons and on Their Destruction; 
                or
                    (E) the Wassenaar Arrangement list of Dual Use 
                Goods and Technologies and Munitions list of July 12, 
                1996, and subsequent revisions; or
            (2) goods, services, or technology not listed on any list 
        identified in paragraph (1) but which nevertheless would be, if 
        they were United States goods, services, or technology, 
        prohibited for export to Iran because of their potential to 
        make a material contribution to the development of nuclear, 
        biological, or chemical weapons, or of ballistic or cruise 
        missile systems.
    (b) Timing of Reports.--The reports under subsection (a) shall be 
submitted not later than 90 days after the date of the enactment of 
this Act, not later than 6 months after such date of enactment, and not 
later than the end of each 6-month period thereafter.
    (c) Exceptions.--Any foreign person who--
            (1) was identified in a previous report submitted under 
        subsection (a) on account of a particular transfer, or
            (2) has engaged in a transfer on behalf of, or in concert 
        with, the Government of the United States,
 is not required to be identified on account of that same transfer in 
any report submitted thereafter under this section, except to the 
degree that new information has emerged indicating that the particular 
transfer may have continued, or been larger, more significant, or 
different in nature than previously reported under this section.
    (d) Submission in Classified Form.--When the President considers it 
appropriate, reports submitted under subsection (a), or appropriate 
parts thereof, may be submitted in classified form.

SEC. 3. APPLICATION OF MEASURES TO CERTAIN FOREIGN PERSONS.

    (a) Application of Measures.--Subject to sections 4 and 5, the 
President is authorized to apply with respect to each foreign person 
identified in a report submitted pursuant to section 2(a), for such 
period of time as he may determine, any or all of the measures 
described in subsection (b).
    (b) Description of Measures.--The measures referred to in 
subsections (a) are the following:
            (1) Executive order 12938 prohibitions.--The measures set 
        forth in subsections (b) and (c) of section 4 of Executive 
        Order 12938 shall be applied with respect to that person.
            (2) Arms export prohibition.--The United States Government 
        shall not sell to that foreign person any item on the United 
        States Munitions List as in effect on August 8, 1995, and shall 
        terminate sales to that person of any defense articles, defense 
        services, or design and construction services under the Arms 
        Export Control Act.
            (3) Dual use export prohibition.--The President shall deny 
        licenses and suspend existing licenses for the transfer to that 
        person of items the export of which is controlled under the 
        Export Administration Act of 1979 or the Export Administration 
        Regulations.
    (c) Effective Date of Measures.--Measures applied pursuant to 
subsection (a) shall be effective with respect to a foreign person no 
later than--
            (1) 90 days after the report identifying the foreign person 
        is submitted, if the report is submitted on or before the date 
        required by section 2(b);
            (2) 90 days after the date required by section 2(b) for 
        submitting the report, if the report identifying the foreign 
        person is submitted within 60 days after that date; or
            (3) on the date that the report identifying the foreign 
        person is submitted, if that report is submitted more than 60 
        days after the date required by section 2(b).
    (d) Publication in Federal Register.--The application of measures 
to a foreign person pursuant to subsection (a) shall be announced by 
notice published in the Federal Register.

SEC. 4. PROCEDURES IF MEASURES ARE NOT APPLIED.

    (a) Requirement To Notify Congress.--Should the President not 
exercise the authority of section 3(a) to apply any or all of the 
measures described in section 3(b) with respect to a foreign person 
identified in a report submitted pursuant to section 2(a), he shall so 
notify the Committee on International Relations of the House of 
Representatives and the Committee on Foreign Relations of the Senate no 
later than the effective date under section 3(c) for measures with 
respect to that person.
    (b) Written Justification.--Any notification submitted by the 
President under subsection (a) shall include a written justification 
describing in detail the facts and circumstances relating specifically 
to the foreign person identified in a report submitted pursuant to 
section 2(a) that support the President's decision not to exercise the 
authority of section 3(a) with respect to that person.
    (c) Submission in Classified Form.--When the President considers it 
appropriate, the notification of the President under subsection (a), 
and the written justification under subsection (b), or appropriate 
parts thereof, may be submitted in classified form.

SEC. 5. DETERMINATION EXEMPTING FOREIGN PERSON FROM SECTIONS 3 AND 4.

    (a) In General.--Sections 3 and 4 shall not apply to a foreign 
person 15 days after the President reports to the Committee on 
International Relations of the House of Representatives and the 
Committee on Foreign Relations of the Senate that the President has 
determined, on the basis of information provided by that person, or 
otherwise obtained by the President, that--
            (1) the person did not, on or after January 1, 1999, 
        knowingly transfer to Iran the goods, services, or technology 
        the apparent transfer of which caused that person to be 
        identified in a report submitted pursuant to section 2(a);
            (2) the goods, services, or technology the transfer of 
        which caused that person to be identified in a report submitted 
        pursuant to section 2(a) did not materially contribute to 
        Iran's efforts to develop nuclear, biological, or chemical 
        weapons, or ballistic or cruise missile systems;
            (3) the person is subject to the primary jurisdiction of a 
        government that is an adherent to one or more relevant 
        nonproliferation regime, and the transfer of goods, services, 
        or technology which caused that person to be identified in a 
        report submitted pursuant to section 2(a) was made consistent 
        with the guidelines and parameters of all such relevant regimes 
        of which such government is an adherent; or
            (4) the government with primary jurisdiction over the 
        person has imposed meaningful penalties on that person on 
        account of the transfer of the goods, services, or technology 
        which caused that person to be identified in a report submitted 
        pursuant to section 2(a).
    (b) Submission in Classified Form.--When the President considers it 
appropriate, the determination and report of the President under 
subsection (a), or appropriate parts thereof, may be submitted in 
classified form.

SEC. 6. RESTRICTION ON EXTRAORDINARY PAYMENTS IN CONNECTION WITH THE 
              INTERNATIONAL SPACE STATION.

    (a) Restriction on Extraordinary Payments in Connection With the 
International Space Station.--Notwithstanding any other provision of 
law, no agency of the United States Government may make extraordinary 
payments in connection with the International Space Station to the 
Russian Space Agency, any organization or entity under the jurisdiction 
or control of the Russian Space Agency, or any other organization, 
entity, or element of the Government of the Russian Federation, unless, 
during the fiscal year in which the extraordinary payments in 
connection with the International Space Station are to be made, the 
President has made the determination described in subsection (b), and 
reported such determination to the Committee on International Relations 
and the Committee on Science of the House of Representatives and the 
Committee on Foreign Relations and the Committee on Commerce, Science, 
and Transportation of the Senate.
    (b) Determination Regarding Russian Cooperation in Preventing 
Proliferation to Iran.--The determination referred to in subsection (a) 
is a determination by the President that--
            (1) it is the policy of the Government of the Russian 
        Federation to oppose the proliferation to Iran of weapons of 
        mass destruction and missile systems capable of delivering such 
        weapons;
            (2) the Government of the Russian Federation (including the 
        law enforcement, export promotion, export control, and 
        intelligence agencies of such government) has demonstrated and 
        continues to demonstrate through the implementation of concrete 
        steps a sustained commitment to seek out and prevent the 
        transfer to Iran of goods, services, and technology that could 
        make a material contribution to the development of nuclear, 
        biological, or chemical weapons, or of ballistic or cruise 
        missile systems, including through the imposition of meaningful 
        penalties on persons who make such transfers; and
            (3) neither the Russian Space Agency, nor any organization 
        or entity under the jurisdiction or control of the Russian 
        Space Agency, has, during the 1-year period prior to the date 
        of the determination pursuant to this subsection, made 
        transfers to Iran reportable under section 2(a) of this Act 
        (other than transfers with respect to which a determination 
pursuant to section 5 has been or will be made).
    (c) Prior Notification.--Not less than 30 days before making a 
determination under subsection (b), the President shall notify the 
Committee on International Relations and the Committee on Science of 
the House of Representatives and the Committee on Foreign Relations and 
the Committee on Commerce, Science, and Transportation of the Senate of 
his intention to make such determination.
    (d) Written Justification.--A determination of the President under 
subsection (b) and a prior notification under subsection (c) shall 
include a written justification describing in detail the facts and 
circumstances supporting the President's conclusion.
    (e) Submission in Classified Form.--When the President considers it 
appropriate, a determination of the President under subsection (b), a 
prior notification under subsection (c), and a written justification 
under subsection (d), or appropriate parts thereof, may be submitted in 
classified form.
    (f) Service Module Exception.--(1) The National Aeronautics and 
Space Administration may make extraordinary payments that would 
otherwise be prohibited under this section to the Russian Space Agency, 
any organization or entity under the jurisdiction of the Russian Space 
Agency, or any subcontractor thereof for the construction, testing, 
preparation, delivery, launch, or maintenance of the Service Module 
if--
            (A) the President has notified Congress at least 5 days 
        before making such payments;
            (B) no report has been made under section 2 with respect to 
        an activity of the entity to receive such payment, and the 
        President has no information of any activity that would require 
        such a report; and
            (C) the United States will receive a share of ownership of 
        the Service Module commensurate with the value of the 
        extraordinary payments made.
    (2) For purposes of this subsection, the term ``maintenance'' means 
activities which cannot be performed by the National Aeronautics and 
Space Administration and which must be performed in order for the 
Service Module to provide environmental control, life support, and 
orbital maintenance functions which cannot be performed by an 
alternative means at the time of payment.
    (3) This subsection shall cease to be effective 60 days after a 
United States propulsion module is in place at the International Space 
Station.

SEC. 7. DEFINITIONS.

    For purposes of this Act, the following terms have the following 
meanings:
            (1) Extraordinary payments in connection with the 
        international space station.--The term ``extraordinary payments 
        in connection with the International Space Station'' means 
        payments in cash or in kind made or to be made by the United 
        States Government--
                    (A) for work on the International Space Station 
                which the Russian Government pledged at any time to 
                provide at its expense; or
                    (B) for work on the International Space Station, or 
                for the purchase of goods or services relating to human 
                space flight, that are not required to be made under 
                the terms of a contract or other agreement that was in 
                effect on January 1, 1999, as those terms were in 
                effect on such date.
            (2) Foreign person; person.--The terms ``foreign person'' 
        and ``person'' mean--
                    (A) a natural person that is an alien;
                    (B) a corporation, business association, 
                partnership, society, trust, or any other 
                nongovernmental entity, organization, or group, that is 
                organized under the laws of a foreign country or has 
                its principal place of business in a foreign country;
                    (C) any foreign governmental entity operating as a 
                business enterprise; and
                    (D) any successor, subunit, or subsidiary of any 
                entity described in subparagraph (B) or (C).
            (3) Executive order 12938.--The term ``Executive Order 
        12938'' means Executive Order 12938 as in effect on January 1, 
        1999.
            (4) Adherent to relevant nonproliferation regime.--A 
        government is an ``adherent'' to a ``relevant nonproliferation 
        regime'' if that government--
                    (A) is a member of the Nuclear Suppliers Group with 
                respect to a transfer of goods, services, or technology 
                described in section 2(a)(1)(A);
                    (B) is a member of the Missile Technology Control 
                Regime with respect to a transfer of goods, services, 
                or technology described in section 2(a)(1)(B), or is a 
                party to a binding international agreement with the 
                United States that was in effect on January 1, 1999, to 
                control the transfer of such goods, services, or 
                technology in accordance with the criteria and 
                standards set forth in the Missile Technology Control 
                Regime;
                    (C) is a member of the Australia Group with respect 
                to a transfer of goods, services, or technology 
                described in section 2(a)(1)(C);
                    (D) is a party to the Convention on the Prohibition 
                of the Development, Production, Stockpiling and Use of 
                Chemical Weapons and on Their Destruction with respect 
                to a transfer of goods, services, or technology 
                described in section 2(a)(1)(D); or
                    (E) is a member of the Wassenaar Arrangement with 
                respect to a transfer of goods, services, or technology 
                described in section 2(a)(1)(E).
            (5) Organization or entity under the jurisdiction or 
        control of the russian space agency.--(A) The term 
        ``organization or entity under the jurisdiction or control of 
        the Russian Space Agency'' means an organization or entity 
        that--
                    (i) was made part of the Russian Space Agency upon 
                its establishment on February 25, 1992;
                    (ii) was transferred to the Russian Space Agency by 
                decree of the Russian Government on July 25, 1994, or 
                May 12, 1998;
                    (iii) was or is transferred to the Russian Space 
                Agency by decree of the Russian Government at any other 
                time before, on, or after the date of the enactment of 
                this Act; or
                    (iv) is a joint stock company in which the Russian 
                Space Agency has at any time held controlling interest.
            (B) Any organization or entity described in subparagraph 
        (A) shall be deemed to be under the jurisdiction or control of 
        the Russian Space Agency regardless of whether--
                    (i) such organization or entity, after being part 
                of or transferred to the Russian Space Agency, is 
                removed from or transferred out of the Russian Space 
                Agency; or
                    (ii) the Russian Space Agency, after holding a 
                controlling interest in such organization or entity, 
                divests its controlling interest.