[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4965 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 4965

To impose sanctions on foreign entities that engage in certain nuclear 
           proliferation activities, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 22, 2004

 Mr. Lantos (for himself, Ms. Ros-Lehtinen, Mr. Berman, Mr. Ackerman, 
 and Mr. Sherman) introduced the following bill; which was referred to 
                the Committee on International Relations

_______________________________________________________________________

                                 A BILL


 
To impose sanctions on foreign entities that engage in certain nuclear 
           proliferation activities, 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 ``Nuclear Black-Market Elimination 
Act''.

TITLE I--SANCTIONS FOR NUCLEAR ENRICHMENT AND REPROCESSING TRANSFERS BY 
                            FOREIGN PERSONS

SEC. 101. AUTHORITY TO IMPOSE SANCTIONS.

    Notwithstanding any other provision of law, the President is 
authorized to prohibit, for a period of not less than three years, any 
transaction or dealing by a United States person or within the United 
States with any foreign person or entity that the President determines 
sells, transfers, brokers, finances, assists, delivers or otherwise 
provides or receives, on or after the date of the enactment of this 
Act--
            (1) nuclear enrichment or reprocessing equipment, 
        materials, or technology to--
                    (A) any country for which an additional protocol 
                with the International Atomic Energy Agency for the 
                application of safeguards (as derived from IAEA 
                document INFCIRC/540 and related corrections and 
                additions) is not in force; or
                    (B) to any country that the President determines is 
                developing, constructing, manufacturing, or acquiring a 
                nuclear explosive device; or
            (2) designs, equipment, or specific information to assist 
        in the development, construction, manufacture, or acquisition 
        of a nuclear explosive device by a non-nuclear weapon state.

SEC. 102. PRESIDENTIAL DETERMINATION.

    (a) Determination.--If the President receives credible information 
or evidence regarding any activity described in section 101(a) by a 
foreign person or entity, the President shall promptly make a 
determination as to whether, in his judgment, such activity occurred.
    (b) Report.--If the President makes an affirmative determination 
under subsection (a), the President shall, within 5 days after making 
the determination, report the fact and substance of the determination 
to the appropriate congressional committees.
    (c) Publication of Determination.--If the President makes an 
affirmative determination under subsection (a), the President shall 
publish in the Federal Register, not later than 15 days after reporting 
such determination to the Committees under subsection (b), the identity 
of each foreign person or entity that is subject to that determination 
and on whom sanctions have been imposed under section 101(a), the 
reasons for the sanctions, and period during which the sanctions will 
be in effect.

SEC. 103. ADDITIONAL REPORTS.

    (a) Possible Activity.--The President shall submit to the 
appropriate congressional committees, not later than January 30th of 
each year, a report containing all credible information regarding the 
activities described in section 101(a), regardless of whether the 
President determines that such activities did in his judgment occur.
    (b) Transactions by Foreign Persons.--The President shall submit to 
the appropriate congressional committees, not later than June 30th of 
each year, a report that identifies any foreign person or entity that 
engages in transactions or dealings with foreign persons or entities on 
whom sanctions are in effect under section 101(a) that--
            (1) would be prohibited transactions or dealings subject to 
        sanctions under section 101(a) if those transactions or 
        dealings had been conducted by United States persons or within 
        the United States; and
            (2) could make material contributions to a nuclear 
        enrichment, reprocessing, or nuclear weapon development 
        program.
The report under this subsection shall be unclassified to the maximum 
extent feasible, but may also include a classified annex.

    TITLE II--INCENTIVES FOR PROLIFERATION INTERDICTION COOPERATION

SEC. 201. AUTHORITY TO PROVIDE ASSISTANCE.

    Notwithstanding any other provision of law, the President is 
authorized to provide, on such terms as he deems appropriate, 
assistance under section 202 to any country that cooperates with the 
United States and with other countries allied with the United States to 
prevent the transport and transshipment of items of proliferation 
concern in its national territory or airspace or in vessels under its 
control or registry.

SEC. 202. TYPES OF ASSISTANCE.

    The assistance authorized under section 201 is the following:
            (1) Assistance under section 23 of the Arms Export Control 
        Act (22 U.S.C. 2763).
            (2) Assistance under chapter 4 of part II of the Foreign 
        Assistance Act of 1961, notwithstanding section 531(e) or 
        660(a) of that Act.
            (3) Drawdown of defense equipment and services under 
        section 516 of the Foreign Assistance Act of 1961.

SEC. 203. CONGRESSIONAL NOTIFICATION.

    Assistance authorized under this title may not be provided until at 
least 30 days after the date on which the President has provided notice 
thereof to the appropriate congressional committees, in accordance with 
the procedures applicable to reprogramming notifications under section 
634A(a) of the Foreign Assistance Act of 1961.

SEC. 204. LIMITATION.

    Assistance may be provided to a country under section 201 in no 
more than 3 fiscal years.

SEC. 205. USE OF ASSISTANCE.

     To the extent practicable, assistance provided under this title 
shall be used to enhance the capability of the recipient country to 
prevent the transport and transshipment of items of proliferation 
concern in its national territory or airspace, or in vessels under its 
control or registry, including through the development of a legal 
framework in that country to enhance such capability.

SEC. 206. AUTHORIZATION OF APPROPRIATIONS.

    (a) Appropriations.--There is authorized to be appropriated 
$250,000,000 to carry out this title.
    (b) Availability.--Amounts appropriated pursuant to subsection (a) 
are authorized to remain available until expended.

SEC. 207. LIMITATION ON SHIP TRANSFERS.

    Notwithstanding any other provision of law, the United States may 
not transfer any excess defense article that is a vessel to a country 
that has not provided written assurances to the United States that it 
will support and assist efforts by the United States to interdict items 
of proliferation concern.

SEC. 208. LIMITATION ON AIRCRAFT TRANSFERS.

    Notwithstanding any other provision of law, the United States may 
not transfer any excess defense article that is an aircraft to any 
country that has not provided written assurances to the United States 
that it will support and assist efforts by the United States to 
interdict items of proliferation concern.

       TITLE III--ROLLBACK OF KHAN NUCLEAR PROLIFERATION NETWORK

SEC. 301. COOPERATION OF PAKISTAN.

    (a) Limitation.--Notwithstanding any other provision of law, the 
President may not provide, in any fiscal year, more than 75 percent of 
United States assistance to Pakistan unless the President determines 
and certifies to the appropriate congressional committees that 
Pakistan--
            (1) has verifiably halted any cooperation with any state in 
        the development of nuclear or missile technology, material, or 
        equipment, or any other technology, material, or equipment that 
        is useful for the development of weapons of mass destruction, 
        including exports of such technology, material, or equipment; 
        and
            (2) is fully sharing with the United States all information 
        relevant to the A.Q. Khan proliferation network, and has 
        provided full access to A.Q. Khan and his associates and any 
        documentation, declarations, affidavits, or other material that 
        bears upon their proliferation network activities and contacts.
    (b) Waiver.--
            (1) Authority.--The President may waive the requirements of 
        subsection (a) in a fiscal year if--
                    (A) the President has certified to the appropriate 
                congressional committees that--
                            (i) the waiver is in the vital interest of 
                        the national security of the United States;
                            (ii) the waiver will promote Pakistan's 
                        cooperation in achieving the conditions set 
                        forth in paragraphs (1) and (2) of subsection 
                        (a); and
                            (iii) Pakistan's lack of cooperation is not 
                        significantly hindering efforts of the United 
                        States to investigate and eliminate the Khan 
                        proliferation network and any successor 
                        networks; and
                    (B) 30 days have elapsed since making the 
                certification under subparagraph (A).
            (2) Briefing.--Within 5 days after making a certification 
        under paragraph (1), the Secretary of State shall brief the 
        appropriate congressional committees on the degree to which 
        Pakistan has or has not satisfied the conditions set forth in 
        paragraphs (1) and (2) of subsection (a)(1).
            (3) Limitation.--The waiver authority under paragraph (1) 
        may not be exercised in two successive fiscal years.

SEC. 302. IDENTIFICATION OF PROLIFERATION NETWORK HOST COUNTRIES.

    (a) Report.--Not later than 30 days after the date of the enactment 
of this Act, the President shall submit a report to the appropriate 
congressional committees that identifies any country in which 
manufacturing, brokering, shipment, transshipment, or other significant 
activity occurs that is related to the transactions carried out by the 
various elements and entities of the A.Q. Khan nuclear proliferation 
network.
    (b) Additional Information.--After the report is submitted under 
subsection (a), the President shall submit to the appropriate 
congressional committees any additional information described in 
subsection (a) with respect to any country, as such information becomes 
available.

SEC. 303. SUSPENSION OF ARMS SALES LICENSES AND DELIVERIES TO 
              PROLIFERATION NETWORK HOST COUNTRIES.

    (a) Suspension.--Upon submission of the report and any additional 
information under section 302 to the appropriate congressional 
committees, the President shall suspend all licenses issued under the 
Arms Export Control Act, and shall prohibit any licenses to be issued 
under that Act, to any country identified in the report or additional 
information, until such time as the President certifies to the 
appropriate congressional committees that such country--
            (1) has--
                    (A) fully investigated the activities of any person 
                or entity within its territory that has participated in 
                the Khan nuclear proliferation network; and
                    (B) taken effective steps to permanently halt all 
                such activities;
            (2) is fully cooperating with the United States in 
        investigating and eliminating the Khan nuclear proliferation 
        network and any successor networks operating within its 
        territory; and
            (3) has enacted new laws, promulgated decrees or 
        regulations, or established practices designed to prevent 
        future such activities from occurring within its territory.
    (b) Waiver.--The President may waive the requirements of subsection 
(a) in a fiscal year if--
            (1) the President has certified to the appropriate 
        congressional committees that the waiver is in the vital 
        interest of the national security of the United States; and
            (2) 5 days have elapsed since making the certification 
        under paragraph (1).

                      TITLE IV--GENERAL PROVISIONS

SEC. 401. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        International Relations of the House of Representatives and the 
        Committee on Foreign Relations of the Senate.
            (2) Excess defense article.--The term ``excess defense 
        article'' has the meaning given that term in section 644(g) of 
        the Foreign Assistance Act of 1961 (22 U.S.C. 2403(g)).
            (3) Foreign person.--The term ``foreign person'' means a 
        person other than a United States person.
            (4) Items of proliferation concern.--The term ``items of 
        proliferation concern'' means any equipment, materials, or 
        technology that could materially support the research, 
        development, manufacturing, or acquisition by any means of a 
        nuclear explosive device, a chemical or biological weapon, or 
        missile with a payload of 500 kilograms or greater and with a 
        range of 300 kilometers or greater.
            (5) Non-nuclear weapon state.--The term ``non-nuclear 
        weapon state'' means any state other than the United States, 
        the United Kingdom, France, the Russian Federation, or the 
        People's Republic of China.
            (6) Person.--The term ``person''--
                    (A) 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, or 
                subsidiary, subunit, or parent entity thereof, and any 
                successor of any such entity; and
                    (B) in the case of a country where it may be 
                impossible to identify a specific governmental entity 
                referred to in subparagraph (A), means all activities 
                of that government relating to the development or 
                production of any nuclear equipment or technology.
            (7) United states assistance.--The term ``United States 
        assistance'' means assistance under the foreign operations, 
        export financing, and related programs appropriations Act for a 
        fiscal year, and assistance under the Foreign Assistance Act of 
        1961.
            (8) United states person.--The term ``United States 
        person'' has the meaning given that term in section 14 of the 
        Iran and Libya Sanctions Act of 1996 (22 U.S.C. 1701 note).
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