[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1707 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1707

To provide that the Secretary of Commerce has jurisdiction over exports 
    of commercial satellites and related items, to provide certain 
procedures for exports of commercial satellites and related items, and 
                           for other purpose.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 3, 2001

 Mr. Berman (for himself and Mr. Rohrabacher) introduced the following 
 bill; which was referred to the Committee on International Relations, 
and in addition to the Committee on Armed Services, 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

_______________________________________________________________________

                                 A BILL


 
To provide that the Secretary of Commerce has jurisdiction over exports 
    of commercial satellites and related items, to provide certain 
procedures for exports of commercial satellites and related items, and 
                           for other purpose.

    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 ``Satellite Trade and Security Act of 
2001''.

SEC. 2. EXPORT CONTROLS ON SATELLITES AND RELATED ITEMS.

    Notwithstanding any other provision of law, all satellites and 
related items that were on the Commerce Control List of dual-use items 
in the Export Administration Regulations (15 C.F.R. part 730 et seq.) 
on October 16, 1998, and any other dual-use communications satellites 
and related items shall, subject to sections 3, 4, and 5, be controlled 
under the Export Administration Act of 1979 (in effect or as continued 
in effect under the International Emergency Economic Powers Act) or by 
the Secretary of Commerce under any successor Act to the Export 
Administration Act of 1979.

SEC. 3. EXPORT LICENSE PROCEDURES.

    (a) Referral to Other Departments and Agencies.--The Secretary of 
Commerce (in this Act referred to as the ``Secretary'') shall refer to 
the Secretary of Defense, the Secretary of State, and the heads of 
other departments and agencies that the Secretary considers 
appropriate, all applications for licenses to export satellites and 
related items.
    (b) Required Consultations With Intelligence Community.--The 
Secretary, the Secretary of Defense and the Secretary of State, as 
appropriate, shall consult with the Director of Central Intelligence 
during the review of any application for a license involving the 
overseas launch of a commercial satellite of United States origin.
    (c) Time Period for Referrals.--Within 30 days after the Secretary 
refers an export license application under this section, each 
department or agency to which an export license application has been 
referred shall provide the Secretary with a recommendation to either 
approve or deny the license application. A department or agency that 
fails to provide a recommendation within that 30-day period shall be 
deemed to have no objection to the decision of the Secretary on the 
license application.
    (d) Interagency Dispute Resolution Process.--If there is no 
agreement among the Secretary, the Secretary of Defense, and the 
Secretary of State to issue or deny a license to which this section 
applies, then the Secretary shall refer the license application to an 
interagency dispute resolution process established by the President. 
The dispute resolution process shall be completed within a period of 60 
days. A license pursuant to the application shall not be issued or 
denied until the Secretary, the Secretary of Defense, and the Secretary 
of State agree to issue or deny the license, or until the President 
makes a determination to issue or deny the license.

SEC. 4. NATIONAL SECURITY CONTROLS ON SATELLITE EXPORTS TO CERTAIN 
              DESTINATIONS.

    Notwithstanding any other provision of law, the following shall 
apply to all licenses to export satellites or related items for launch 
in, or by nationals of, any country that is not a member of the North 
Atlantic Treaty Organization or a major non-NATO ally of the United 
States:
            (1) Mandatory technology control plans.--All export 
        licenses shall require a technology transfer control plan 
        approved by the Secretary of Defense and an encryption 
        technology transfer control plan approved by the Director of 
        the National Security Agency. The technology transfer control 
        plan shall be prepared by the Department of Defense and the 
        licensee, and shall set forth security arrangements for the 
        launch of the satellite, both before and during launch 
        operations.
            (2) Mandatory monitoring and reimbursement.--
                    (A) Monitoring of proposed foreign launch of 
                satellites.--In any case in which a license is approved 
                for the export of a satellite or related items for 
                launch in a foreign country, the Secretary of Defense 
                shall monitor all aspects of the launch in order to 
                ensure that no unauthorized transfer of technology 
                occurs, including technical assistance and technical 
                data. The number of persons providing security for the 
                launch of the satellite shall be sufficient to maintain 
                24-hour, 7-day per week security of the satellite or 
                related items and related launch vehicle and other 
                sensitive technology.
                    (B) Contents of monitoring.--The monitoring under 
                subparagraph (A) shall cover, but not be limited to--
                            (i) technical discussions and activities, 
                        including the design, development, operation, 
                        maintenance, modification, and repair of 
                        satellites, satellite components, missiles, 
                        launch facilities, launch vehicles and other 
                        related equipment;
                            (ii) satellite processing and launch 
                        activities, including launch preparation, 
                        satellite transportation, integration of the 
                        satellite with the launch vehicle, testing and 
                        checkout prior to launch, satellite launch, and 
                        return of equipment to the United States;
                            (iii) activities related to launch failure, 
                        delay, or cancellation, including post-launch 
                        failure investigations; and
                            (iv) all other aspects of the launch.
                    (C) Reimbursement.--The Secretary of Defense shall 
                require the licensee to agree to reimburse the 
                Department of Defense for all costs associated with the 
                provision of security for the launch vehicle or related 
                items. All reimbursements received under this paragraph 
                shall be credited to current appropriations available 
                for the payment of the costs incurred in providing such 
                services.
            (3) Mandatory state department export licenses for post-
        crash investigations.--In the event of the failure of a launch 
        from a foreign country of a satellite of United States origin--
                    (A) the activities of United States persons or 
                entities in connection with any subsequent 
                investigation of the failure are subject to the 
                controls established under section 38 of the Arms 
                Export Control Act, including requirements for licenses 
                issued by the Secretary of State for participation in 
                that investigation;
                    (B) officials of the Department of Defense shall 
                monitor all activities associated with the 
                investigation to insure against unauthorized transfer 
                of technical data or services; and
                    (C) the Secretary of Defense shall establish and 
                implement a technology transfer control plan for the 
                conduct of the investigation to prevent the transfer of 
                information that could be used by the foreign country 
                to improve its missile or space launch capabilities.
            (4) Mandatory notification and certification.--All 
        technology transfer control plans for satellites or related 
        items shall require any United States person involved in the 
        export of a satellite of United States origin or related items 
        to notify the Department of Defense in advance of all meetings 
        and interactions with any foreign person or entity providing 
        launch services and require the United States person to certify 
        after the launch that it has complied with this notification 
        requirement.
            (5) Mandatory intelligence community review.--The Secretary 
        of Commerce shall provide to the Director of Central 
        Intelligence copies of all export license applications and 
        technical assistance agreements submitted for approval in 
        connection with launches of satellites in foreign countries to 
        verify the legitimacy of the stated end-user or end-users.
            (6) Mandatory sharing of approved licenses and 
        agreements.--The Secretary of Commerce shall provide copies of 
        all approved export licenses and technical assistance 
        agreements associated with launches of satellites in foreign 
        countries to the Secretary of State, the Secretary of Defense, 
        the Secretary of Energy, and the Director of Central 
        Intelligence.
            (7) Mandatory notification to congress on licenses.--Upon 
        issuing a license for the export of a satellite or related 
        items for launch in a foreign country, the Secretary of 
        Commerce shall so notify Congress.
            (8) Mandatory reporting on monitoring activities.--The 
        Secretary of Defense shall provide to Congress an annual report 
        on the monitoring of all launches in foreign countries of 
        satellites of United States origin.
            (9) Safeguards program.--The Secretary of Defense shall 
        continue its program to recruit, train and maintain a staff 
        dedicated to monitoring launches in foreign countries of 
        satellites and related items of United States origin.

SEC. 5. DEFINITIONS.

    In this Act:
            (1) Major non-nato ally of the united states.--The term 
        ``major non-NATO ally of the United States'' means a country 
        designated as a major non-NATO ally for purposes of the Foreign 
        Assistance Act of 1961.
            (2) Related items.--The term ``related items'' means the 
        satellite fuel, ground support equipment, test equipment, 
        payload adapter or interface hardware, replacement parts, and 
        nonembedded solid propellant orbit transfer engines described 
        in the report submitted to Congress by the Department of State 
        on February 6, 1998, pursuant to section 38(f) of the Arms 
        Export Control Act (22 U.S.C. 2778(f)).
            (3) United states person.--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.

SEC. 6. CONFORMING AMENDMENTS.

    (a) 1999 NDAA.--(1) Section 1513(a) of the Strom Thurmond National 
Defense Authorization Act for Fiscal Year 1999 (22 U.S.C. 2778 note) is 
repealed.
    (2) Section 1513(c) of that Act is amended by striking ``(1) 
Subsection (a)'' and all that follows through ``(2)''.
    (3) Section 1514 of that Act, and the item relating to that section 
in the table of contents of that Act, are repealed.
    (b) 2000 NDAA.--(1) Section 1404 of the National Defense 
Authorization Act for Fiscal Year 2000 (22 U.S.C. 2778 note) is 
amended--
            (A) in the matter preceding paragraph (1), by striking 
        ``1514 of the Strom Thurmond National Defense Authorization Act 
        for Fiscal Year 1999 (22 U.S.C. 2778 note)'' and inserting ``4 
        of the Satellite Trade and Security Act of 2001''; and
            (B) in paragraph (1), by striking ``1514(a)(1) of the Strom 
        Thurmond National Defense Authorization Act for Fiscal Year 
        1999 (22 U.S.C. 2778 note)'' and inserting ``section 4(1) of 
        the Satellite Trade and Security Act of 2001''.
    (2) Section 1409 of that Act (22 U.S.C. 2278 note) is amended--
            (A) in subsection (a)(7), in the matter preceding 
        subparagraph (A), by striking ``1514(a)(2)(A) of the Strom 
        Thurmond National Defense Authorization Act for Fiscal Year 
        1999 (Public Law 105-261; 112 Stat. 2175; 22 U.S.C. 2778 
        note)'' and inserting ``4(2)(C) of the Satellite Trade and 
        Security Act of 2001''; and
            (B) in subsection (b)(1), by striking ``1514(a)(8) of the 
        Strom Thurmond National Defense Authorization Act for Fiscal 
        Year 1999'' and inserting ``4(8) of the Satellite Trade and 
        Security Act of 2001''.
    (3) Section 1410 of that Act, and the item relating to that section 
in the table of contents of that Act, are repealed.
    (4) Section 1411 of that Act is amended--
            (A) by striking subsection (a); and
            (B) by redesignating subsections (b) and (c) as subsections 
        (a) and (b), respectively.
    (5) Section 1412(d) of that Act is amended by striking ``Secretary 
of State'' and inserting ``Secretary of Commerce''.
    (c) Additional Conforming Amendments.--(1) Section 1309 of the 
Admiral James W. Nance and Meg Donovan Foreign Relations Authorization 
Act, Fiscal Years 2000 and 2001 (as enacted by Public Law 106-113; 113 
Stat. 1501A-460) is amended--
            (A) by amending the section heading to read as follows:

``SEC. 1309. OFFICE OF DEFENSE TRADE CONTROLS.'';

            (B) by striking subsections (a) and (c); and
            (C) in subsection (b), by striking ``(b) Financial and 
        Personnel Resources.--''.
    (2) The table of contents of that Act is amended by striking the 
item relating to section 1309 and inserting the following:

``Sec. 1309. Office of Defense Trade Controls.''.

SEC. 7. EFFECTIVE DATE.

    (a) In General.--This Act and the amendments made by this Act shall 
take effect on the date of the enactment of this Act, and shall apply 
to any export license application made under the Arms Export Control 
Act before such date of enactment which is pending on such date, and to 
any export license application made on or after such date.
    (b) Transfer of Pending Applications.--Any export license 
application made under the Arms Export Control Act before the date of 
the enactment of this Act, to which section 2 of this Act applies and 
which is pending on such date of enactment, shall be transferred to the 
Department of Commerce upon the enactment of this Act.
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