<enum>I</enum><header>Export Administration Act of 1979</header> <section id="H45F55854F40D4760A3C59D03C25C6930"><enum>101.</enum><header>Violations</header> <subsection id="H4A0F9030ACD9491FA8D0550F2F7D17B2"><enum>(a)</enum><header>Criminal penalties</header><text display-inline="yes-display-inline">Section 11 of the Export Administration Act of 1979 (50 U.S.C. App. 2410) is amended by striking subsections (a) and (b) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H2240362221384F859A34EA8E4D01D98A" style="OLC"> <subsection id="H77D1B5D57F3642A298F6BEA7DA08DFCB"><enum>(a)</enum><header>Criminal penalties</header> <paragraph id="H9FA65DBCFB7641BCB669CCD8F16B61FB"><enum>(1)</enum><header>Violations by an individual</header><text display-inline="yes-display-inline">Any individual who willfully violates, conspires to violate, attempts to violate, or aids or abets in the commission of a violation of any provision of this Act or any regulation, license, or order issued under this Act shall be fined not more than $1,000,000, imprisoned for not more than 20 years, or both, for each violation.</text> </paragraph><paragraph id="HB88F1E9073E740AE8D827B5E9F424EFC"><enum>(2)</enum><header>Violations by a person other than an individual</header><text display-inline="yes-display-inline">Any person, other than an individual, who willfully violates, conspires to violate, attempts to violate, or aids or abets in the commission of a violation of any provision of this Act or any regulation, license, or order issued under this Act shall be fined not more than 10 times the value of the exports involved or $5,000,000, whichever amount is greater, for each violation.</text> </paragraph></subsection><subsection id="HCC9E758AF12143639BB7A79FBA549D02"><enum>(b)</enum><header>Regulatory authority not affected</header><text>Nothing in subsection (a) limits the authority of the Secretary to define by regulations violations under this Act.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H8A34274F37464D918379B2543FFAF4FD"><enum>(b)</enum><header>Civil penalties</header><text>Section 11(c)(1) of the Export Administration Act of 1979 (50 U.S.C. 2410(c)(1)) is amended to read as follows: <quote>(1) The Secretary may impose a civil penalty for each violation of this Act, or any regulation, license, or order issued under this Act, in an amount not to exceed the greater of $250,000, or an amount that is twice the value of the transaction that is the basis of the violation. A civil penalty under this paragraph may be in addition to, or in lieu of, any other liability or penalty that may be imposed for such a violation.</quote></text> </subsection><subsection id="HB1EB974E106D45FE9CC11C3ED9971A8D"><enum>(c)</enum><header>Forfeiture</header><text>Section 11(g) of the Export Administration Act of 1979 (50 U.S.C. App. 2410) is amended to read as follows:</text> <quoted-block id="H128557B3A0CF4E44AD59FB4DBB74DC3C" style="OLC"> <subsection id="HC801641B8B6D4C0C91D749C4946EF2EA"><enum>(g)</enum><header>Forfeiture of property interest and proceeds</header> <paragraph id="H873E213E5BAB438EA7489C6C0552CE30"><enum>(1)</enum><header>Criminal forfeiture</header><text display-inline="yes-display-inline">Any person who is convicted of a violation under paragraph (1) or (2) of subsection (a) shall, in addition to any other penalty, forfeit to the United States such person’s—</text> <subparagraph id="H96BE1039AB814F09A28C378512D980A3"><enum>(A)</enum><text>security or other interest in, claim against, or property or contractual rights of any kind in, the real or personal property that was the subject of the violation;</text> </subparagraph><subparagraph id="HD2221522B902411681172D4DB79677A9"><enum>(B)</enum><text>interest in any property, real or personal, constituting or traceable to gross profits or other proceeds obtained from the violation; and</text> </subparagraph><subparagraph id="H0A69F50588864FCFB8BC4AC4C94E3B6B"><enum>(C)</enum><text>interest in any property, real or personal, used or intended to be used to commit or to promote the commission of the violation.</text> </subparagraph></paragraph><paragraph id="H6B2DBEBE28F044C9B5ABF39D28D9073F"><enum>(2)</enum><header>Civil forfeiture</header><text>Any person convicted of a violation under subsection (a), or subject to a civil penalty as set forth in subsection (c), shall forfeit to the United States such person’s interest in—</text> <subparagraph id="H91ACF9906DC7483FB0797B76BDDEEA78"><enum>(A)</enum><text>any security or other interest in, claim against, or property or contractual rights of any kind in, the real or personal property that was the subject of the violation;</text> </subparagraph><subparagraph id="H6C165A80958849F4895BACCA0D23A39A"><enum>(B)</enum><text>any property, real or personal, constituting or traceable to gross profits or other proceeds obtained because of the act or acts constituting the violation; and</text> </subparagraph><subparagraph id="H9CD8DA5233D147BEB13402F52129D804"><enum>(C)</enum><text>any property, real or personal, used or intended to be used to commit or to promote the commission of the violation.</text> </subparagraph></paragraph><paragraph id="H43321B1A975741DA820DC4F95051487A"><enum>(3)</enum><header>Procedures</header><text>Forfeiture under this subsection shall be carried out in accordance with the procedures set forth in chapter 46 of title 18, United States Code.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H29251B61E09A46C7A28665B43C93894F"><enum>(d)</enum><header>Temporary denial orders</header><text>Section 11 of the Export Administration Act of 1979 (50 U.S.C. App. 2410) is amended—</text> <paragraph id="H64445D9B4F294310847FBCFF1EC52399"><enum>(1)</enum><text>by redesignating subsection (i) as subsection (j);</text> </paragraph><paragraph id="H6DA903D230BD4DA58CE707FEAF299840"><enum>(2)</enum><text>by inserting after subsection (h) the following:</text> <quoted-block display-inline="no-display-inline" id="H5262202F943B4807AF64474C0DB97972" style="OLC"> <subsection id="H52E02A381EF64FF084018D24B46E7C67"><enum>(i)</enum><header>Imposition of temporary denial orders</header> <paragraph id="HFBD57556E1144BD1BD3461AD6AAE2543"><enum>(1)</enum><header>Authority of the secretary</header><text>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 (in this subsection referred to as a <term>temporary denial order</term>) 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. The Secretary shall publish notice of the issuance of a temporary denial order in the Federal Register and may provide notice of the issuance of the order to the person that is the subject of the order by such additional means as the Secretary considers appropriate.</text> </paragraph><paragraph id="H7E3ECE07A89847D6B86FE174368EEF93"><enum>(2)</enum><header>Procedures</header><text>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.</text> </paragraph><paragraph id="H3919DE6CB64F4A87A4FE876F6A128F05"><enum>(3)</enum><header>Appeals</header><text>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.</text> </paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="HE93456F935A84C518D3104FB61A1BD6D"><enum>(3)</enum><text>in subsection (j), as redesignated, by striking <quote>or (h)</quote> and inserting <quote>(h), or (i)</quote>.</text> </paragraph></subsection><subsection id="H2F54074B45FB45238EE123C496162248"><enum>(e)</enum><header>Conforming amendments</header><text display-inline="yes-display-inline">Section 13 of the Export Administration Act of 1979 (50 U.S.C. App. 2412) is amended—</text> <paragraph id="HF91C2862338241E89F723C6E13711FE0"><enum>(1)</enum><text>by striking subsection (d); and</text> </paragraph><paragraph id="HFEB6605DDA244431AC0CBBA4FCAF2F2D"><enum>(2)</enum><text>by redesignating subsection (e) as subsection (d).</text> </paragraph></subsection><subsection id="H2A0B6F01058C475AA1EA54508C667410"><enum>(f)</enum><header>Effective date</header><text>The amendments made by this section apply with respect to acts constituting violations under section 11 of the Export Administration Act of 1979 that occur on or after the date of the enactment of this Act.</text> </subsection></section><section id="H9582893B30124339BC94DF18D6E3F673"><enum>102.</enum><header>Enforcement</header> <subsection id="H5406D9CAC19B4057A28496AF870D5922"><enum>(a)</enum><header>Findings</header><text display-inline="yes-display-inline">The Congress finds the following:</text> <paragraph id="HB225B7B4B7574BD99DA43EB5E3CA14A3"><enum>(1)</enum><text display-inline="yes-display-inline">On July 1, 2010, the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (Public Law 111–195) was signed into law by the President of the United States.</text> </paragraph><paragraph id="HDB201282991D4624A5460D98CFFDD2A4"><enum>(2)</enum><text display-inline="yes-display-inline">Section 305 of that Act provides the Department of Commerce with the authority to enforce the provisions of that Act as well as the Export Administration Act of 1979.</text> </paragraph><paragraph id="H5A1E1D07780848139A29990C7F635959"><enum>(3)</enum><text display-inline="yes-display-inline">Statutory authority to conduct investigations overseas, as well as undercover authority, is necessary for the Office of Export Enforcement of the Department of Commerce to combat increasingly complex international proliferation activities involving Iran and other hostile state and non-state actors.</text> </paragraph></subsection><subsection id="H0F375E090FAC4B5EBD517FB14E08CB94"><enum>(b)</enum><header>Enforcement authority</header><text display-inline="yes-display-inline">Section 12 of the Export Administration Act of 1979 (50 U.S.C. App. 2411) is amended—</text> <paragraph id="HE8EEDBD796D24BFBBEB2B8D9C5C31A25"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="HE2B8B4FA94E4491083CA18B0B77B356A"><enum>(A)</enum><text>in paragraph (1), in the first sentence, by striking <quote>within the United States, and</quote> and inserting <quote>within the United States, the Secretary of Commerce (and officers and employees of the Department of Commerce specifically designated by the Secretary of Commerce) may conduct investigations outside of the United States and, in addition,</quote>;</text> </subparagraph><subparagraph id="HAE7AE6B6C5A1441DB6A9933A4E27EC86"><enum>(B)</enum><text>by striking paragraph (6) and redesignating paragraphs (7) and (8) as paragraphs (6) and (7), respectively; and</text> </subparagraph><subparagraph id="HEE5631CDA6414CE487D7AECC7B9DA013"><enum>(C)</enum><text>in paragraph (7) (as redesignated) by inserting before the period the following: <quote>, and the enforcement or a violation of the Export Administration Regulations as maintained and amended under the authority of the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)</quote>; and</text> </subparagraph></paragraph><paragraph id="HD01CF16E57B04C3884501570D907706E"><enum>(2)</enum><text>by adding at the end the following new subsections:</text> <quoted-block id="HAC2C8CD988994F55AAC3988EC820170D" style="OLC"> <subsection id="HE8E9DA8BD17A4F32B2CE8306A96454ED"><enum>(f)</enum><header>Forfeiture</header> <paragraph id="H178E77717A5D48B0AFC202447ED4EF70"><enum>(1)</enum><header>In general</header><text>Any tangible items lawfully seized under subsection (a) by designated officers or employees shall be subject to forfeiture to the United States.</text> </paragraph><paragraph id="H6136F64F746047E18554B35DB8B0863C"><enum>(2)</enum><header>Procedures</header><text>Any seizure or forfeiture under this subsection shall be carried out in accordance with the procedures set forth in chapter 46 of title 18, United States Code.</text> </paragraph></subsection><subsection id="H840904AA51E04F079DE398F3954C6B81"><enum>(g)</enum><header>Undercover investigation operations</header> <paragraph id="H5B3D499F109A4D6F910F66289B9B5F71"><enum>(1)</enum><header>Use of funds</header><text>With respect to any undercover investigative operation conducted by the Office of Export Enforcement of the Department of Commerce that is necessary for the detection and prosecution of violations under this Act—</text> <subparagraph id="HA29C1DB61547429BA9EE9191EC7AE3F4"><enum>(A)</enum><text>funds made available for export enforcement under this Act may be used to purchase property, buildings and other facilities, and to lease equipment, conveyances, and space within the United States, without regard to sections 1341 and 3324 of title 31, United States Code, section 8141 of title 40, United States Code, and sections 3901(a), 3903, 4501 through 4506, 4706, 6301(a), and 6306 of title 41, United States Code;</text> </subparagraph><subparagraph id="H56117BF26D944F28B727F977315E329C"><enum>(B)</enum><text>funds made available for export enforcement under this Act may be used to establish or to acquire proprietary corporations or business entities as part of an undercover operation, and to operate such corporations or business entities on a commercial basis, without regard to sections 1341, 3324, and 9102 of title 31, United States Code;</text> </subparagraph><subparagraph id="H529B88A0705247C1BECF22D121E8423F"><enum>(C)</enum><text>funds made available for export enforcement under this Act and the proceeds from undercover operations may be deposited in banks or other financial institutions without regard to section 648 of title 18, United States Code, and section 3302 of title 31, United States Code; and</text> </subparagraph><subparagraph id="H0DB3A55D73624D3C9DE59D8231F739B1"><enum>(D)</enum><text>the proceeds from undercover operations may be used to offset necessary and reasonable expenses incurred in such operations without regard to section 3302 of title 31, United States Code, if the Secretary (or the Secretary’s designee) certifies, in writing, that the action authorized by subparagraph (A), (B), or (C) for which the funds would be used is necessary for the conduct of the undercover operation.</text> </subparagraph></paragraph><paragraph id="H2C13DD24288B49F4831E30D37D3E1D8D"><enum>(2)</enum><header>Disposition of business entities</header><text>If a corporation or business entity established or acquired as part of an undercover operation has a net value of more than $250,000 and is to be liquidated, sold, or otherwise disposed of, the Secretary shall report the circumstances to the Comptroller General of the United States as much in advance of such disposition as the Secretary determines is practicable. The proceeds of the liquidation, sale, or other disposition, after obligations incurred by the corporation or business entity are met, shall be deposited in the Treasury of the United States as miscellaneous receipts. Any property or equipment purchased pursuant to paragraph (1)(A) may be retained for subsequent use in undercover operations under this subsection. When such property or equipment is no longer needed, it shall be considered as surplus and disposed of as surplus government property.</text> </paragraph><paragraph id="H52372A2D5F21471EB23A883090AD7779"><enum>(3)</enum><header>Deposit of proceeds</header><text>As soon as the proceeds from an undercover investigative operation of the Office of Export Enforcement of the Department of Commerce with respect to which an action is authorized and carried out under this subsection are no longer needed for the conduct of such operation, the proceeds or the balance of the proceeds remaining at the time shall be deposited into the Treasury of the United States as miscellaneous receipts.</text> </paragraph><paragraph id="H5807727C79FF4263A975DBFFFCDE2049"><enum>(4)</enum><header>Audit and report</header> <subparagraph id="HF66FB28CB64346E9875ECB2E6B280A80"><enum>(A)</enum><header>Audit</header><text>The Secretary shall conduct a detailed financial audit of each closed undercover operation of the Office of Export Enforcement of the Department of Commerce. Not later than 180 days after an undercover operation is closed, the Secretary shall submit to the Congress a report on the results of that audit.</text> </subparagraph><subparagraph id="H24FFF34D927A4A4F81706E5E1BFCC46C"><enum>(B)</enum><header>Report</header><text>The Secretary shall submit annually to the Congress a report, which may be included in the annual report under section 14(a), including the following information:</text> <clause id="H40AB875AEA174B38A7110122CF1E0CDF"><enum>(i)</enum><text>The number of undercover investigative operations pending as of the end of the period for which the report is submitted.</text> </clause><clause id="H6BA771A039D24B159BBADD23D9D5AACE"><enum>(ii)</enum><text>The number of undercover investigative operations commenced in the 1-year period preceding the period for which the report is submitted.</text> </clause><clause id="HDF303EBE8C44485E9E19BE36B4FCB523"><enum>(iii)</enum><text>The number of undercover investigative operations closed in the 1-year period preceding the period for which such report is submitted and, with respect to each such closed undercover operation, the results obtained and any civil claims made with respect to such operation.</text> </clause></subparagraph><subparagraph id="H0DA6C4B7922746ABB5D23B3B1AED215F"><enum>(C)</enum><header>Definitions</header><text>In this paragraph:</text> <clause id="H36D195762EB9400A87E0C1E09570AF75"><enum>(i)</enum><header>Closed</header><text>The term <term>closed</term>, with respect to an undercover investigative operation, refers to the earliest point in time at which all criminal proceedings (other than appeals) pursuant to the investigative operation are concluded, or covert activities pursuant to such operation are concluded, whichever occurs later.</text> </clause><clause id="H255F8A1890544AE4A53545EE35E5FC4F"><enum>(ii)</enum><header>Undercover investigative operation and undercover operation</header> <subclause id="HF3C03C08E3864A3B9CCD8183C57B0034"><enum>(I)</enum><header>In general</header><text>Subject to subclause (II), the terms <term>undercover investigative operation</term> and <term>undercover operation</term> mean any undercover investigative operation conducted by the Office of Export Enforcement of the Department of Commerce in which the gross receipts (excluding interest earned) exceed $25,000, or expenditures (other than expenditures for salaries of employees) exceed $75,000.</text> </subclause><subclause id="H87F3546AB4C9469A9C3B87269F179EF9"><enum>(II)</enum><header>Exception</header><text>The report to Congress required by subparagraph (B) shall be made with respect to undercover investigative operations conducted by the Office of Export Enforcement of the Department of Commerce without regard to the gross receipts and expenditures limitations under subclause (I).</text> </subclause></clause></subparagraph></paragraph></subsection><subsection id="H2695230A33E8428498209381696064BC"><enum>(h)</enum><header>Authorization for bureau of industry and security</header><text>The Secretary may authorize, without fiscal year limitation, the expenditure of funds transferred to, paid to, received by, or made available to the Bureau of Industry and Security of the Department of Commerce as a reimbursement in accordance with section 9703 of title 31, United States Code (as added by Public Law 102–393).</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HEC1E169D637145C8BAB6AC69992C47F2"><enum>(c)</enum><header>Effective date</header> <paragraph id="HA602A8DC960E4E8AA8B7C4F63972ABE4"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to paragraphs (2) and (3), the amendments made by subsection (a) shall take effect on the date of the enactment of this Act.</text> </paragraph><paragraph id="H9F8D9B3A29F94EEDBD187CF9B4873026"><enum>(2)</enum><header>Forfeiture</header><text>Section 12(f) of the Export Administration Act of 1979, as added by subsection (a)(2) of this section, shall apply to items seized on or after the date of the enactment of this Act.</text> </paragraph><paragraph id="HD6C349C964384D498DED1BB84A2A8175"><enum>(3)</enum><header>Undercover operations</header><text>Section 12(g) of the Export Administration Act of 1979, as added by subsection (a)(2) of this section, shall apply with respect to undercover investigative operations commenced on or after the date of the enactment of this Act.</text> </paragraph></subsection></section><section id="H4AE7CF8309B64200A7156B7673FC26CD"><enum>103.</enum><header>Administrative and regulatory authority</header><text display-inline="no-display-inline">Section 15 of the Export Administration Act of 1979 (50 U.S.C. App. 2414) is amended—</text> <paragraph id="HC6C3F72CDC3343BAA17A62980D3EEB5F"><enum>(1)</enum><text>in subsection (a), in the first sentence—</text> <subparagraph id="HD9D6E2183CE64369A962EB3F13EE4F27"><enum>(A)</enum><text>by striking <quote>Under Secretary of Commerce for Export Administration</quote> and inserting <quote>Under Secretary of Commerce for Industry and Security</quote>; and</text> </subparagraph><subparagraph id="HBB148EED66EE497AA3961D4826A80897"><enum>(B)</enum><text>by striking <quote>such other statutes</quote> and all that follows through the end of the sentence and in inserting <quote>other statutes that the Secretary has delegated to the Under Secretary of Commerce for Industry and Security or any predecessor (including the Under Secretary of Commerce for Export Administration and the Assistant Secretary of Commerce for Trade Administration) as of the date of the enactment of the Export Administration Renewal Act of 2011, or may delegate to the Under Secretary of Commerce for Industry and Security on or after that date.</quote>;</text> </subparagraph></paragraph><paragraph id="H8A2663485C4F42E0AA88542C2CB8BC94"><enum>(2)</enum><text>in subsection (b)—</text> <subparagraph id="H67F98ED539F342D383A5BE2DD37DD503"><enum>(A)</enum><text>by striking <quote>the President and the Secretary</quote> and inserting—</text> <quoted-block display-inline="no-display-inline" id="HCCFD1323A8774563A7D8E63C5D4419B7" style="OLC"> <paragraph id="HD19D66331C1548A5BA69AFF994E10351"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The President and the Secretary</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph><subparagraph id="HE522E4129DD84330821744FCD92FE221"><enum>(B)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HB77EF94FA39A46B690E5006A2705E4B1" style="OLC"> <paragraph id="HA3A3FE0E5FAF4A809F7D7140A77C9F65"><enum>(2)</enum><header>Advance notice to congress</header><text display-inline="yes-display-inline">Any significant regulations issued pursuant to this Act shall be provided to the Committee on Foreign Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate not less than 30 days in advance of the publication of the regulations in the Federal Register, unless exigent circumstances require the Secretary to shorten that 30-day period.</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H2E296F2A89C44A649D9E08F015CB7AC2"><enum>(3)</enum><text>in subsection (c)—</text> <subparagraph id="H47428112AD21490688072A32BB566C9A"><enum>(A)</enum><text>by inserting after the first sentence the following: <quote>The Secretary shall submit the report under the preceding sentence not less than 30 days in advance of the publication of the proposed amendments in the Federal Register, unless exigent circumstances require the Secretary to shorten that 30-day period.</quote>; and</text> </subparagraph><subparagraph id="HBB136AA87A3545A39A91B6843FC6E1CB"><enum>(B)</enum><text>in the succeeding sentence, by striking <quote>evaluate the cost and burden to United States exporters</quote> and inserting <quote>include the text of the proposed amendments, as well as evaluate the economic and national security impact on the United States</quote>.</text> </subparagraph></paragraph></section><section id="H3864F554BBBB4FDC80F4C578011E7927"><enum>104.</enum><header>Authorization of appropriations</header><text display-inline="no-display-inline">Section 18(b) of the Export Administration Act of 1979 (50 U.S.C. App. 2417(b)) is amended—</text> <paragraph id="H6FA272AE6DF84DA2AB8877AA510B3521"><enum>(1)</enum><text>by striking paragraphs (1) and (2) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H796716C8E4EF419E8BF804332993AEAF" style="OLC"> <paragraph id="H7AD068C98C8347358791527C365A3537"><enum>(1)</enum><text display-inline="yes-display-inline">$100,141,000 for fiscal year 2012; $101,643,115 for fiscal year 2013; $103,167,647 for fiscal year 2014; and $104,926,000 for fiscal year 2015; and</text> </paragraph><after-quoted-block>; and </after-quoted-block></quoted-block> </paragraph><paragraph id="H74454DE8B16843CFB538AE40CDC55E13"><enum>(2)</enum><text>by redesignating paragraph (3) as paragraph (2).</text> </paragraph></section><section id="H6032F9B040D9438F83565D4E627879EE"><enum>105.</enum><header>Termination date</header><text display-inline="no-display-inline">Section 20 of the Export Administration Act of 1979 (50 U.S.C. App. 2419) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H5BB015A84C5E4865AB95F266773D04ED" style="traditional"> <section id="HE14EB44DD29A449DAD87073C527ACE7E"><enum>20.</enum><header>Termination date</header><text display-inline="yes-display-inline">The authority granted by this Act terminates on September 30, 2015, except that the authority granted by sections 11 and 12 shall not terminate.</text> </section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H927E76A9802B42598F3BE967D84E29DE"><enum>106.</enum><header>Foreign policy controls</header> <subsection id="HC7D2127464E24592A372903BF804FCA2"><enum>(a)</enum><header>Terrorist states</header><text display-inline="yes-display-inline">Section 6(j)(4) of the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)(4)) is amended—</text> <paragraph id="H93B4ABCA50C74FB98E2DA99A3D725753"><enum>(1)</enum><text>in the matter preceding subparagraph (A), by striking <quote>the Speaker</quote> and inserting <quote>the chairman of the Committee on Foreign Affairs</quote>; and</text> </paragraph><paragraph id="H34E718453C9F449B9A8011B5195F78F5"><enum>(2)</enum><text>in subparagraph (B)—</text> <subparagraph id="HA2045A1014E54FFEAA56D7C66AC05765"><enum>(A)</enum><text>in clause (i), by striking <quote>6-month period; and</quote> and inserting <quote>36-month period;</quote>;</text> </subparagraph><subparagraph id="HD8E432EDFAB442E885816E7D043F18A2"><enum>(B)</enum><text>in clause (ii), by striking the period at the end and inserting a semicolon; and</text> </subparagraph><subparagraph id="H9547E8756FE74137B45673217ACF0F22"><enum>(C)</enum><text display-inline="yes-display-inline">by adding after clause (ii) the following:</text> <quoted-block display-inline="no-display-inline" id="H9F3D30BA12844ED18FF4A872E1FE2B68" style="OLC"> <clause id="H721A67B5F34546F6A92975E712A1673B" indent="up1"><enum>(iii)</enum><text display-inline="yes-display-inline">that government is not a <quote>country of proliferation concern</quote> as defined in section 1055(g)(2) of the National Defense Authorization Act for Fiscal Year 2010 (50 U.S.C. 2371(g)(2)); and</text> </clause><clause id="HFEEC621E56364DED9148CEDED9AEC823" indent="up1"><enum>(iv)</enum><text display-inline="yes-display-inline">that government has provided assurances that it will not knowingly facilitate, directly or indirectly, the proliferation of nuclear materials, items, or technology in the future.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></subsection><subsection id="HF25EC0ECC08E48299C4C91E863870717"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="H566E9CA2B3754AF2945323127EFA9E48"><enum>(1)</enum><header>Foreign assistance act of 1961</header><text display-inline="yes-display-inline">Section 620A(c) of the Foreign Assistance Act of 1961 (22 U.S.C. 2371(c)) is amended—</text> <subparagraph id="H6A6CEBFA5F934915A44669636E54C7E0"><enum>(A)</enum><text display-inline="yes-display-inline">in the matter preceding paragraph (1), by striking <quote>the Speaker</quote> and inserting <quote>the chairman of the Committee on Foreign Affairs</quote>; and</text> </subparagraph><subparagraph id="H78D350A16417422A9B2D2C58E91E924C"><enum>(B)</enum><text>in paragraph (2)—</text> <clause id="H18D962D55B2449E4BD92A932ABF60FA8"><enum>(i)</enum><text>in subparagraph (A), by striking <quote>6-month period; and</quote> and inserting <quote>36-month period;</quote>;</text> </clause><clause id="H690CF4B3A8F3470CBDB1879287AF62B4"><enum>(ii)</enum><text>in subparagraph (B), by striking the period at the end and inserting a semicolon; and</text> </clause><clause id="H394D0918C06240DA97AE9356A9E9971C"><enum>(iii)</enum><text>by adding after subparagraph (B) the following:</text> <quoted-block display-inline="no-display-inline" id="HE9B8003E14DF418590F550D64BEDAB8C" style="OLC"> <subparagraph id="HE553F992CDAF414C8D60D58F4299C89C"><enum>(C)</enum><text display-inline="yes-display-inline">that government is not a <quote>country of proliferation concern</quote> as defined in section 1055(g)(2) of the National Defense Authorization Act for Fiscal Year 2010 (50 U.S.C. 2371(g)(2)); and</text> </subparagraph><subparagraph id="H61E9B7F479AD4D3390852CC448373BCF"><enum>(D)</enum><text>that government has provided assurances that it will not knowingly facilitate, directly or indirectly, the proliferation of nuclear materials, items, or technology in the future.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </clause></subparagraph></paragraph><paragraph id="H7F7CAE622143465CA7702AC5F6833DFD"><enum>(2)</enum><header>Arms export control act</header><text>Section 40(f)(1) of the Arms Export Control Act (22 U.S.C. 2780(f)(1)) is amended—</text> <subparagraph id="HE41CD8E9BA8E45F590DFCD724AA05B6B"><enum>(A)</enum><text display-inline="yes-display-inline">in the matter preceding subparagraph (A), by striking <quote>the Speaker</quote> and inserting <quote>the chairman of the Committee on Foreign Affairs</quote>; and</text> </subparagraph><subparagraph id="HCAFE670E3B224A18B603F88316C16156"><enum>(B)</enum><text>in subparagraph (B)—</text> <clause display-inline="no-display-inline" id="HF453BB5C8659415E9A4F8F7238574B37"><enum>(i)</enum><text>in clause (i), by striking <quote>6-month period; and</quote> and inserting <quote>36-month period;</quote>;</text> </clause><clause id="H76D974B02A8D4B62A5705EBEACC3F465"><enum>(ii)</enum><text>in clause (ii), by striking the period at the end and inserting a semicolon; and</text> </clause><clause id="H44D7DB9421A24134A9D81D0CF0371884"><enum>(iii)</enum><text display-inline="yes-display-inline">by adding after clause (ii) the following:</text> <quoted-block display-inline="no-display-inline" id="H4705BC65962B4948BF28C67E397002C8" style="OLC"> <clause id="H5403228BCA0E46B39D92F07E8DA40DB9" indent="up1"><enum>(iii)</enum><text display-inline="yes-display-inline">that government is not a <quote>country of proliferation concern</quote> as defined in section 1055(g)(2) of the National Defense Authorization Act for Fiscal Year 2010 (50 U.S.C. 2371(g)(2)); and</text> </clause><clause id="HCE7AE6A5F23A44ABB91C5C7F1FC951D1" indent="up1"><enum>(iv)</enum><text display-inline="yes-display-inline">that government has provided assurances that it will not knowingly facilitate, directly or indirectly, the proliferation of nuclear materials, items, or technology in the future.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </clause></subparagraph></paragraph></subsection></section><section id="H1CED5B5D6B564BC7B9676D5DDA28AF2A"><enum>107.</enum><header>Technical and conforming amendments</header> <subsection display-inline="no-display-inline" id="HDB29115A043F45778D02D0F64C5B58C1"><enum>(a)</enum><header>Renaming of under secretary</header> <paragraph id="HAA368F4B5F574441996969B689588C66"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Section 5(f)(6) of the Export Administration Act of 1979 (50 U.S.C. App. 2404(f)(6)) is amended by striking <quote>Under Secretary of Commerce for Export Administration</quote> and inserting <quote>Under Secretary of Commerce for Industry and Security</quote>.</text> </paragraph><paragraph id="H61A16FC6A3644B9F95E2D71218C72472"><enum>(2)</enum><header>Conforming amendment</header><text>Section 5314 of title 5, United States Code, is amended by striking <quote>Under Secretary of Commerce for Export Administration</quote> and inserting <quote>Under Secretary of Commerce for Industry and Security</quote>.</text> </paragraph></subsection><subsection id="H801C304DD93548CFB8A4BC7FB3E170B7"><enum>(b)</enum><header>Amendments to title 31, united states code</header> <paragraph id="H041CBC5B9CE1457E8AABF671438132FE"><enum>(1)</enum><text>Section 9703(a) of title 31, United States Code (as added by Public Law 102–393), is amended, in the matter preceding paragraph (1), by striking <quote>or the United States Coast Guard</quote> and inserting, <quote>, the United States Coast Guard, or the Bureau of Industry and Security of the Department of Commerce</quote>.</text> </paragraph><paragraph id="HB0B006570AA6443AACC84A0268944096"><enum>(2)</enum><text>Section 9703(o)(1) of title 31, United States Code (as added by Public Law 102–393) is amended by adding at the end the following: <quote>In addition, for purposes of this section, the Bureau of Industry and Security of the Department of Commerce shall be considered to be a Department of the Treasury law enforcement organization.</quote>.</text> </paragraph></subsection><subsection id="H1EBB8DAD863C41CDA9290A0129A74B67"><enum>(c)</enum><header>Civil forfeiture proceedings</header><text>Section 983(i)(2) of title 18, United States Code, is amended—</text> <paragraph id="H12147069C36B480B90DCE20574DA3E2F"><enum>(1)</enum><text>by striking <quote>or</quote> at the end of subparagraph (D);</text> </paragraph><paragraph id="H35C808FCEDA842A8884475286C1392D8"><enum>(2)</enum><text>by striking the period at the end of subparagraph (E) and inserting <quote>; or</quote>; and</text> </paragraph><paragraph id="HB995EEB2EC3B441296CAA8EEFF9C50BE"><enum>(3)</enum><text>by adding at the end the following new subparagraph:</text> <quoted-block id="H854B31AACB29498597F4AF4CCF9B9A46" style="OLC"> <subparagraph id="H4830EDD1A88946F3823C3F1960B13464"><enum>(F)</enum><text>the Export Administration Act of 1979.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H99E401030A6647A9BE2421363F624A68"><enum>(d)</enum><header>Clerical amendment</header><text>Paragraph (3) of section 11A(k) of the Export Administration Act of 1979 (50 U.S.C. App. 2410A(k)(3)) is amended—</text> <paragraph id="HF0045C713BEC48A08EF65EC1E4C4B0F6"><enum>(1)</enum><text>by redesignating that paragraph as paragraph (2); and</text> </paragraph><paragraph id="H9F5BC0DE43C14ED0A2DB09475937C202"><enum>(2)</enum><text>by striking <quote>paragraph (2)</quote> and inserting <quote>paragraph (1)</quote>.</text> </paragraph></subsection><subsection commented="no" id="H817ABEF443204F569112D6B9DD54D86E"><enum>(e)</enum><header>Annual report</header><text display-inline="yes-display-inline">Section 14(a)(15) of the Export Administration Act of 1979 (50 U.S.C. App. 2413(a)(15)) is amended by striking <quote>the export licensing process and</quote> and inserting export licensing, an assessment of the impact of licensing exemptions on licensing caseloads, numbers of licensing officers, and the budget of the Bureau of Industry and Security, and efforts.</text> </subsection></section><section id="H35ED7DA56D664B7EAEBA223057EB6AEE"><enum>108.</enum><header>Reports by Comptroller General on export control vulnerabilities</header> <subsection id="H24BC5F7233A546ED8DFBF6F3A546426E"><enum>(a)</enum><header>In general</header><text>Not later than the date that is 1 year, 2 years, and 3 years after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the appropriate congressional committees a report assessing any progress made in resolving export control issues identified by the Government Accountability Office in—</text> <paragraph id="HB829664203A94742AA209B112B90B728"><enum>(1)</enum><text>its report (GAO–09–767T) entitled <quote>Export Controls: Fundamental Reexamination of System Is Needed to Help Protect Critical Technologies</quote>, dated June 4, 2009; and</text> </paragraph><paragraph id="H27AF1F37722D4BE0B7BFFBC66F9BEDD8"><enum>(2)</enum><text>its report (GAO–11–278) entitled <quote>High-Risk Series: An Update</quote>, dated February 16, 2011.</text> </paragraph></subsection><subsection id="H96FB2439E0B34F1E9AEE2CED24346C9A"><enum>(b)</enum><header>Appropriate congressional committees</header><text>For purposes of subsection (a), the term <term>appropriate congressional committees</term> means—</text> <paragraph id="HDA9C5EF36A694E46BB85FD0E4A8A730E"><enum>(1)</enum><text>the Committee on Foreign Affairs and the Committee on Armed Services of the House of Representatives; and</text> </paragraph><paragraph id="H155C622E131C42A99541A20042312BC4"><enum>(2)</enum><text>the Committee on Banking, Housing, and Urban Affairs, the Committee on Armed Services, and the Committee on Foreign Relations of the Senate.</text> </paragraph></subsection></section><section id="H1047832685184B1EB7F911B8C9FE9858"><enum>109.</enum><header>Effective date</header><text display-inline="no-display-inline">Subject to sections 101(f) and 102(b), this title and the amendments made by this title shall take effect on the date of the enactment of this Act.</text> </section>

Short title

This Act may be cited as the

Export Administration Renewal Act of 2011

<enum>I</enum><header>Export Administration Act of 1979</header> <section id="H45F55854F40D4760A3C59D03C25C6930"><enum>101.</enum><header>Violations</header> <subsection id="H4A0F9030ACD9491FA8D0550F2F7D17B2"><enum>(a)</enum><header>Criminal penalties</header><text display-inline="yes-display-inline">Section 11 of the Export Administration Act of 1979 (50 U.S.C. App. 2410) is amended by striking subsections (a) and (b) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H2240362221384F859A34EA8E4D01D98A" style="OLC"> <subsection id="H77D1B5D57F3642A298F6BEA7DA08DFCB"><enum>(a)</enum><header>Criminal penalties</header> <paragraph id="H9FA65DBCFB7641BCB669CCD8F16B61FB"><enum>(1)</enum><header>Violations by an individual</header><text display-inline="yes-display-inline">Any individual who willfully violates, conspires to violate, attempts to violate, or aids or abets in the commission of a violation of any provision of this Act or any regulation, license, or order issued under this Act shall be fined not more than $1,000,000, imprisoned for not more than 20 years, or both, for each violation.</text> </paragraph><paragraph id="HB88F1E9073E740AE8D827B5E9F424EFC"><enum>(2)</enum><header>Violations by a person other than an individual</header><text display-inline="yes-display-inline">Any person, other than an individual, who willfully violates, conspires to violate, attempts to violate, or aids or abets in the commission of a violation of any provision of this Act or any regulation, license, or order issued under this Act shall be fined not more than 10 times the value of the exports involved or $5,000,000, whichever amount is greater, for each violation.</text> </paragraph></subsection><subsection id="HCC9E758AF12143639BB7A79FBA549D02"><enum>(b)</enum><header>Regulatory authority not affected</header><text>Nothing in subsection (a) limits the authority of the Secretary to define by regulations violations under this Act.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H8A34274F37464D918379B2543FFAF4FD"><enum>(b)</enum><header>Civil penalties</header><text>Section 11(c)(1) of the Export Administration Act of 1979 (50 U.S.C. 2410(c)(1)) is amended to read as follows: <quote>(1) The Secretary may impose a civil penalty for each violation of this Act, or any regulation, license, or order issued under this Act, in an amount not to exceed the greater of $250,000, or an amount that is twice the value of the transaction that is the basis of the violation. A civil penalty under this paragraph may be in addition to, or in lieu of, any other liability or penalty that may be imposed for such a violation.</quote></text> </subsection><subsection id="HB1EB974E106D45FE9CC11C3ED9971A8D"><enum>(c)</enum><header>Forfeiture</header><text>Section 11(g) of the Export Administration Act of 1979 (50 U.S.C. App. 2410) is amended to read as follows:</text> <quoted-block id="H128557B3A0CF4E44AD59FB4DBB74DC3C" style="OLC"> <subsection id="HC801641B8B6D4C0C91D749C4946EF2EA"><enum>(g)</enum><header>Forfeiture of property interest and proceeds</header> <paragraph id="H873E213E5BAB438EA7489C6C0552CE30"><enum>(1)</enum><header>Criminal forfeiture</header><text display-inline="yes-display-inline">Any person who is convicted of a violation under paragraph (1) or (2) of subsection (a) shall, in addition to any other penalty, forfeit to the United States such person’s—</text> <subparagraph id="H96BE1039AB814F09A28C378512D980A3"><enum>(A)</enum><text>security or other interest in, claim against, or property or contractual rights of any kind in, the real or personal property that was the subject of the violation;</text> </subparagraph><subparagraph id="HD2221522B902411681172D4DB79677A9"><enum>(B)</enum><text>interest in any property, real or personal, constituting or traceable to gross profits or other proceeds obtained from the violation; and</text> </subparagraph><subparagraph id="H0A69F50588864FCFB8BC4AC4C94E3B6B"><enum>(C)</enum><text>interest in any property, real or personal, used or intended to be used to commit or to promote the commission of the violation.</text> </subparagraph></paragraph><paragraph id="H6B2DBEBE28F044C9B5ABF39D28D9073F"><enum>(2)</enum><header>Civil forfeiture</header><text>Any person convicted of a violation under subsection (a), or subject to a civil penalty as set forth in subsection (c), shall forfeit to the United States such person’s interest in—</text> <subparagraph id="H91ACF9906DC7483FB0797B76BDDEEA78"><enum>(A)</enum><text>any security or other interest in, claim against, or property or contractual rights of any kind in, the real or personal property that was the subject of the violation;</text> </subparagraph><subparagraph id="H6C165A80958849F4895BACCA0D23A39A"><enum>(B)</enum><text>any property, real or personal, constituting or traceable to gross profits or other proceeds obtained because of the act or acts constituting the violation; and</text> </subparagraph><subparagraph id="H9CD8DA5233D147BEB13402F52129D804"><enum>(C)</enum><text>any property, real or personal, used or intended to be used to commit or to promote the commission of the violation.</text> </subparagraph></paragraph><paragraph id="H43321B1A975741DA820DC4F95051487A"><enum>(3)</enum><header>Procedures</header><text>Forfeiture under this subsection shall be carried out in accordance with the procedures set forth in chapter 46 of title 18, United States Code.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H29251B61E09A46C7A28665B43C93894F"><enum>(d)</enum><header>Temporary denial orders</header><text>Section 11 of the Export Administration Act of 1979 (50 U.S.C. App. 2410) is amended—</text> <paragraph id="H64445D9B4F294310847FBCFF1EC52399"><enum>(1)</enum><text>by redesignating subsection (i) as subsection (j);</text> </paragraph><paragraph id="H6DA903D230BD4DA58CE707FEAF299840"><enum>(2)</enum><text>by inserting after subsection (h) the following:</text> <quoted-block display-inline="no-display-inline" id="H5262202F943B4807AF64474C0DB97972" style="OLC"> <subsection id="H52E02A381EF64FF084018D24B46E7C67"><enum>(i)</enum><header>Imposition of temporary denial orders</header> <paragraph id="HFBD57556E1144BD1BD3461AD6AAE2543"><enum>(1)</enum><header>Authority of the secretary</header><text>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 (in this subsection referred to as a <term>temporary denial order</term>) 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. The Secretary shall publish notice of the issuance of a temporary denial order in the Federal Register and may provide notice of the issuance of the order to the person that is the subject of the order by such additional means as the Secretary considers appropriate.</text> </paragraph><paragraph id="H7E3ECE07A89847D6B86FE174368EEF93"><enum>(2)</enum><header>Procedures</header><text>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.</text> </paragraph><paragraph id="H3919DE6CB64F4A87A4FE876F6A128F05"><enum>(3)</enum><header>Appeals</header><text>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.</text> </paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="HE93456F935A84C518D3104FB61A1BD6D"><enum>(3)</enum><text>in subsection (j), as redesignated, by striking <quote>or (h)</quote> and inserting <quote>(h), or (i)</quote>.</text> </paragraph></subsection><subsection id="H2F54074B45FB45238EE123C496162248"><enum>(e)</enum><header>Conforming amendments</header><text display-inline="yes-display-inline">Section 13 of the Export Administration Act of 1979 (50 U.S.C. App. 2412) is amended—</text> <paragraph id="HF91C2862338241E89F723C6E13711FE0"><enum>(1)</enum><text>by striking subsection (d); and</text> </paragraph><paragraph id="HFEB6605DDA244431AC0CBBA4FCAF2F2D"><enum>(2)</enum><text>by redesignating subsection (e) as subsection (d).</text> </paragraph></subsection><subsection id="H2A0B6F01058C475AA1EA54508C667410"><enum>(f)</enum><header>Effective date</header><text>The amendments made by this section apply with respect to acts constituting violations under section 11 of the Export Administration Act of 1979 that occur on or after the date of the enactment of this Act.</text> </subsection></section><section id="H9582893B30124339BC94DF18D6E3F673"><enum>102.</enum><header>Enforcement</header> <subsection id="H5406D9CAC19B4057A28496AF870D5922"><enum>(a)</enum><header>Findings</header><text display-inline="yes-display-inline">The Congress finds the following:</text> <paragraph id="HB225B7B4B7574BD99DA43EB5E3CA14A3"><enum>(1)</enum><text display-inline="yes-display-inline">On July 1, 2010, the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (Public Law 111–195) was signed into law by the President of the United States.</text> </paragraph><paragraph id="HDB201282991D4624A5460D98CFFDD2A4"><enum>(2)</enum><text display-inline="yes-display-inline">Section 305 of that Act provides the Department of Commerce with the authority to enforce the provisions of that Act as well as the Export Administration Act of 1979.</text> </paragraph><paragraph id="H5A1E1D07780848139A29990C7F635959"><enum>(3)</enum><text display-inline="yes-display-inline">Statutory authority to conduct investigations overseas, as well as undercover authority, is necessary for the Office of Export Enforcement of the Department of Commerce to combat increasingly complex international proliferation activities involving Iran and other hostile state and non-state actors.</text> </paragraph></subsection><subsection id="H0F375E090FAC4B5EBD517FB14E08CB94"><enum>(b)</enum><header>Enforcement authority</header><text display-inline="yes-display-inline">Section 12 of the Export Administration Act of 1979 (50 U.S.C. App. 2411) is amended—</text> <paragraph id="HE8EEDBD796D24BFBBEB2B8D9C5C31A25"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="HE2B8B4FA94E4491083CA18B0B77B356A"><enum>(A)</enum><text>in paragraph (1), in the first sentence, by striking <quote>within the United States, and</quote> and inserting <quote>within the United States, the Secretary of Commerce (and officers and employees of the Department of Commerce specifically designated by the Secretary of Commerce) may conduct investigations outside of the United States and, in addition,</quote>;</text> </subparagraph><subparagraph id="HAE7AE6B6C5A1441DB6A9933A4E27EC86"><enum>(B)</enum><text>by striking paragraph (6) and redesignating paragraphs (7) and (8) as paragraphs (6) and (7), respectively; and</text> </subparagraph><subparagraph id="HEE5631CDA6414CE487D7AECC7B9DA013"><enum>(C)</enum><text>in paragraph (7) (as redesignated) by inserting before the period the following: <quote>, and the enforcement or a violation of the Export Administration Regulations as maintained and amended under the authority of the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)</quote>; and</text> </subparagraph></paragraph><paragraph id="HD01CF16E57B04C3884501570D907706E"><enum>(2)</enum><text>by adding at the end the following new subsections:</text> <quoted-block id="HAC2C8CD988994F55AAC3988EC820170D" style="OLC"> <subsection id="HE8E9DA8BD17A4F32B2CE8306A96454ED"><enum>(f)</enum><header>Forfeiture</header> <paragraph id="H178E77717A5D48B0AFC202447ED4EF70"><enum>(1)</enum><header>In general</header><text>Any tangible items lawfully seized under subsection (a) by designated officers or employees shall be subject to forfeiture to the United States.</text> </paragraph><paragraph id="H6136F64F746047E18554B35DB8B0863C"><enum>(2)</enum><header>Procedures</header><text>Any seizure or forfeiture under this subsection shall be carried out in accordance with the procedures set forth in chapter 46 of title 18, United States Code.</text> </paragraph></subsection><subsection id="H840904AA51E04F079DE398F3954C6B81"><enum>(g)</enum><header>Undercover investigation operations</header> <paragraph id="H5B3D499F109A4D6F910F66289B9B5F71"><enum>(1)</enum><header>Use of funds</header><text>With respect to any undercover investigative operation conducted by the Office of Export Enforcement of the Department of Commerce that is necessary for the detection and prosecution of violations under this Act—</text> <subparagraph id="HA29C1DB61547429BA9EE9191EC7AE3F4"><enum>(A)</enum><text>funds made available for export enforcement under this Act may be used to purchase property, buildings and other facilities, and to lease equipment, conveyances, and space within the United States, without regard to sections 1341 and 3324 of title 31, United States Code, section 8141 of title 40, United States Code, and sections 3901(a), 3903, 4501 through 4506, 4706, 6301(a), and 6306 of title 41, United States Code;</text> </subparagraph><subparagraph id="H56117BF26D944F28B727F977315E329C"><enum>(B)</enum><text>funds made available for export enforcement under this Act may be used to establish or to acquire proprietary corporations or business entities as part of an undercover operation, and to operate such corporations or business entities on a commercial basis, without regard to sections 1341, 3324, and 9102 of title 31, United States Code;</text> </subparagraph><subparagraph id="H529B88A0705247C1BECF22D121E8423F"><enum>(C)</enum><text>funds made available for export enforcement under this Act and the proceeds from undercover operations may be deposited in banks or other financial institutions without regard to section 648 of title 18, United States Code, and section 3302 of title 31, United States Code; and</text> </subparagraph><subparagraph id="H0DB3A55D73624D3C9DE59D8231F739B1"><enum>(D)</enum><text>the proceeds from undercover operations may be used to offset necessary and reasonable expenses incurred in such operations without regard to section 3302 of title 31, United States Code, if the Secretary (or the Secretary’s designee) certifies, in writing, that the action authorized by subparagraph (A), (B), or (C) for which the funds would be used is necessary for the conduct of the undercover operation.</text> </subparagraph></paragraph><paragraph id="H2C13DD24288B49F4831E30D37D3E1D8D"><enum>(2)</enum><header>Disposition of business entities</header><text>If a corporation or business entity established or acquired as part of an undercover operation has a net value of more than $250,000 and is to be liquidated, sold, or otherwise disposed of, the Secretary shall report the circumstances to the Comptroller General of the United States as much in advance of such disposition as the Secretary determines is practicable. The proceeds of the liquidation, sale, or other disposition, after obligations incurred by the corporation or business entity are met, shall be deposited in the Treasury of the United States as miscellaneous receipts. Any property or equipment purchased pursuant to paragraph (1)(A) may be retained for subsequent use in undercover operations under this subsection. When such property or equipment is no longer needed, it shall be considered as surplus and disposed of as surplus government property.</text> </paragraph><paragraph id="H52372A2D5F21471EB23A883090AD7779"><enum>(3)</enum><header>Deposit of proceeds</header><text>As soon as the proceeds from an undercover investigative operation of the Office of Export Enforcement of the Department of Commerce with respect to which an action is authorized and carried out under this subsection are no longer needed for the conduct of such operation, the proceeds or the balance of the proceeds remaining at the time shall be deposited into the Treasury of the United States as miscellaneous receipts.</text> </paragraph><paragraph id="H5807727C79FF4263A975DBFFFCDE2049"><enum>(4)</enum><header>Audit and report</header> <subparagraph id="HF66FB28CB64346E9875ECB2E6B280A80"><enum>(A)</enum><header>Audit</header><text>The Secretary shall conduct a detailed financial audit of each closed undercover operation of the Office of Export Enforcement of the Department of Commerce. Not later than 180 days after an undercover operation is closed, the Secretary shall submit to the Congress a report on the results of that audit.</text> </subparagraph><subparagraph id="H24FFF34D927A4A4F81706E5E1BFCC46C"><enum>(B)</enum><header>Report</header><text>The Secretary shall submit annually to the Congress a report, which may be included in the annual report under section 14(a), including the following information:</text> <clause id="H40AB875AEA174B38A7110122CF1E0CDF"><enum>(i)</enum><text>The number of undercover investigative operations pending as of the end of the period for which the report is submitted.</text> </clause><clause id="H6BA771A039D24B159BBADD23D9D5AACE"><enum>(ii)</enum><text>The number of undercover investigative operations commenced in the 1-year period preceding the period for which the report is submitted.</text> </clause><clause id="HDF303EBE8C44485E9E19BE36B4FCB523"><enum>(iii)</enum><text>The number of undercover investigative operations closed in the 1-year period preceding the period for which such report is submitted and, with respect to each such closed undercover operation, the results obtained and any civil claims made with respect to such operation.</text> </clause></subparagraph><subparagraph id="H0DA6C4B7922746ABB5D23B3B1AED215F"><enum>(C)</enum><header>Definitions</header><text>In this paragraph:</text> <clause id="H36D195762EB9400A87E0C1E09570AF75"><enum>(i)</enum><header>Closed</header><text>The term <term>closed</term>, with respect to an undercover investigative operation, refers to the earliest point in time at which all criminal proceedings (other than appeals) pursuant to the investigative operation are concluded, or covert activities pursuant to such operation are concluded, whichever occurs later.</text> </clause><clause id="H255F8A1890544AE4A53545EE35E5FC4F"><enum>(ii)</enum><header>Undercover investigative operation and undercover operation</header> <subclause id="HF3C03C08E3864A3B9CCD8183C57B0034"><enum>(I)</enum><header>In general</header><text>Subject to subclause (II), the terms <term>undercover investigative operation</term> and <term>undercover operation</term> mean any undercover investigative operation conducted by the Office of Export Enforcement of the Department of Commerce in which the gross receipts (excluding interest earned) exceed $25,000, or expenditures (other than expenditures for salaries of employees) exceed $75,000.</text> </subclause><subclause id="H87F3546AB4C9469A9C3B87269F179EF9"><enum>(II)</enum><header>Exception</header><text>The report to Congress required by subparagraph (B) shall be made with respect to undercover investigative operations conducted by the Office of Export Enforcement of the Department of Commerce without regard to the gross receipts and expenditures limitations under subclause (I).</text> </subclause></clause></subparagraph></paragraph></subsection><subsection id="H2695230A33E8428498209381696064BC"><enum>(h)</enum><header>Authorization for bureau of industry and security</header><text>The Secretary may authorize, without fiscal year limitation, the expenditure of funds transferred to, paid to, received by, or made available to the Bureau of Industry and Security of the Department of Commerce as a reimbursement in accordance with section 9703 of title 31, United States Code (as added by Public Law 102–393).</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HEC1E169D637145C8BAB6AC69992C47F2"><enum>(c)</enum><header>Effective date</header> <paragraph id="HA602A8DC960E4E8AA8B7C4F63972ABE4"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to paragraphs (2) and (3), the amendments made by subsection (a) shall take effect on the date of the enactment of this Act.</text> </paragraph><paragraph id="H9F8D9B3A29F94EEDBD187CF9B4873026"><enum>(2)</enum><header>Forfeiture</header><text>Section 12(f) of the Export Administration Act of 1979, as added by subsection (a)(2) of this section, shall apply to items seized on or after the date of the enactment of this Act.</text> </paragraph><paragraph id="HD6C349C964384D498DED1BB84A2A8175"><enum>(3)</enum><header>Undercover operations</header><text>Section 12(g) of the Export Administration Act of 1979, as added by subsection (a)(2) of this section, shall apply with respect to undercover investigative operations commenced on or after the date of the enactment of this Act.</text> </paragraph></subsection></section><section id="H4AE7CF8309B64200A7156B7673FC26CD"><enum>103.</enum><header>Administrative and regulatory authority</header><text display-inline="no-display-inline">Section 15 of the Export Administration Act of 1979 (50 U.S.C. App. 2414) is amended—</text> <paragraph id="HC6C3F72CDC3343BAA17A62980D3EEB5F"><enum>(1)</enum><text>in subsection (a), in the first sentence—</text> <subparagraph id="HD9D6E2183CE64369A962EB3F13EE4F27"><enum>(A)</enum><text>by striking <quote>Under Secretary of Commerce for Export Administration</quote> and inserting <quote>Under Secretary of Commerce for Industry and Security</quote>; and</text> </subparagraph><subparagraph id="HBB148EED66EE497AA3961D4826A80897"><enum>(B)</enum><text>by striking <quote>such other statutes</quote> and all that follows through the end of the sentence and in inserting <quote>other statutes that the Secretary has delegated to the Under Secretary of Commerce for Industry and Security or any predecessor (including the Under Secretary of Commerce for Export Administration and the Assistant Secretary of Commerce for Trade Administration) as of the date of the enactment of the Export Administration Renewal Act of 2011, or may delegate to the Under Secretary of Commerce for Industry and Security on or after that date.</quote>;</text> </subparagraph></paragraph><paragraph id="H8A2663485C4F42E0AA88542C2CB8BC94"><enum>(2)</enum><text>in subsection (b)—</text> <subparagraph id="H67F98ED539F342D383A5BE2DD37DD503"><enum>(A)</enum><text>by striking <quote>the President and the Secretary</quote> and inserting—</text> <quoted-block display-inline="no-display-inline" id="HCCFD1323A8774563A7D8E63C5D4419B7" style="OLC"> <paragraph id="HD19D66331C1548A5BA69AFF994E10351"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The President and the Secretary</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph><subparagraph id="HE522E4129DD84330821744FCD92FE221"><enum>(B)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HB77EF94FA39A46B690E5006A2705E4B1" style="OLC"> <paragraph id="HA3A3FE0E5FAF4A809F7D7140A77C9F65"><enum>(2)</enum><header>Advance notice to congress</header><text display-inline="yes-display-inline">Any significant regulations issued pursuant to this Act shall be provided to the Committee on Foreign Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate not less than 30 days in advance of the publication of the regulations in the Federal Register, unless exigent circumstances require the Secretary to shorten that 30-day period.</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H2E296F2A89C44A649D9E08F015CB7AC2"><enum>(3)</enum><text>in subsection (c)—</text> <subparagraph id="H47428112AD21490688072A32BB566C9A"><enum>(A)</enum><text>by inserting after the first sentence the following: <quote>The Secretary shall submit the report under the preceding sentence not less than 30 days in advance of the publication of the proposed amendments in the Federal Register, unless exigent circumstances require the Secretary to shorten that 30-day period.</quote>; and</text> </subparagraph><subparagraph id="HBB136AA87A3545A39A91B6843FC6E1CB"><enum>(B)</enum><text>in the succeeding sentence, by striking <quote>evaluate the cost and burden to United States exporters</quote> and inserting <quote>include the text of the proposed amendments, as well as evaluate the economic and national security impact on the United States</quote>.</text> </subparagraph></paragraph></section><section id="H3864F554BBBB4FDC80F4C578011E7927"><enum>104.</enum><header>Authorization of appropriations</header><text display-inline="no-display-inline">Section 18(b) of the Export Administration Act of 1979 (50 U.S.C. App. 2417(b)) is amended—</text> <paragraph id="H6FA272AE6DF84DA2AB8877AA510B3521"><enum>(1)</enum><text>by striking paragraphs (1) and (2) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H796716C8E4EF419E8BF804332993AEAF" style="OLC"> <paragraph id="H7AD068C98C8347358791527C365A3537"><enum>(1)</enum><text display-inline="yes-display-inline">$100,141,000 for fiscal year 2012; $101,643,115 for fiscal year 2013; $103,167,647 for fiscal year 2014; and $104,926,000 for fiscal year 2015; and</text> </paragraph><after-quoted-block>; and </after-quoted-block></quoted-block> </paragraph><paragraph id="H74454DE8B16843CFB538AE40CDC55E13"><enum>(2)</enum><text>by redesignating paragraph (3) as paragraph (2).</text> </paragraph></section><section id="H6032F9B040D9438F83565D4E627879EE"><enum>105.</enum><header>Termination date</header><text display-inline="no-display-inline">Section 20 of the Export Administration Act of 1979 (50 U.S.C. App. 2419) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H5BB015A84C5E4865AB95F266773D04ED" style="traditional"> <section id="HE14EB44DD29A449DAD87073C527ACE7E"><enum>20.</enum><header>Termination date</header><text display-inline="yes-display-inline">The authority granted by this Act terminates on September 30, 2015, except that the authority granted by sections 11 and 12 shall not terminate.</text> </section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H927E76A9802B42598F3BE967D84E29DE"><enum>106.</enum><header>Foreign policy controls</header> <subsection id="HC7D2127464E24592A372903BF804FCA2"><enum>(a)</enum><header>Terrorist states</header><text display-inline="yes-display-inline">Section 6(j)(4) of the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)(4)) is amended—</text> <paragraph id="H93B4ABCA50C74FB98E2DA99A3D725753"><enum>(1)</enum><text>in the matter preceding subparagraph (A), by striking <quote>the Speaker</quote> and inserting <quote>the chairman of the Committee on Foreign Affairs</quote>; and</text> </paragraph><paragraph id="H34E718453C9F449B9A8011B5195F78F5"><enum>(2)</enum><text>in subparagraph (B)—</text> <subparagraph id="HA2045A1014E54FFEAA56D7C66AC05765"><enum>(A)</enum><text>in clause (i), by striking <quote>6-month period; and</quote> and inserting <quote>36-month period;</quote>;</text> </subparagraph><subparagraph id="HD8E432EDFAB442E885816E7D043F18A2"><enum>(B)</enum><text>in clause (ii), by striking the period at the end and inserting a semicolon; and</text> </subparagraph><subparagraph id="H9547E8756FE74137B45673217ACF0F22"><enum>(C)</enum><text display-inline="yes-display-inline">by adding after clause (ii) the following:</text> <quoted-block display-inline="no-display-inline" id="H9F3D30BA12844ED18FF4A872E1FE2B68" style="OLC"> <clause id="H721A67B5F34546F6A92975E712A1673B" indent="up1"><enum>(iii)</enum><text display-inline="yes-display-inline">that government is not a <quote>country of proliferation concern</quote> as defined in section 1055(g)(2) of the National Defense Authorization Act for Fiscal Year 2010 (50 U.S.C. 2371(g)(2)); and</text> </clause><clause id="HFEEC621E56364DED9148CEDED9AEC823" indent="up1"><enum>(iv)</enum><text display-inline="yes-display-inline">that government has provided assurances that it will not knowingly facilitate, directly or indirectly, the proliferation of nuclear materials, items, or technology in the future.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></subsection><subsection id="HF25EC0ECC08E48299C4C91E863870717"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="H566E9CA2B3754AF2945323127EFA9E48"><enum>(1)</enum><header>Foreign assistance act of 1961</header><text display-inline="yes-display-inline">Section 620A(c) of the Foreign Assistance Act of 1961 (22 U.S.C. 2371(c)) is amended—</text> <subparagraph id="H6A6CEBFA5F934915A44669636E54C7E0"><enum>(A)</enum><text display-inline="yes-display-inline">in the matter preceding paragraph (1), by striking <quote>the Speaker</quote> and inserting <quote>the chairman of the Committee on Foreign Affairs</quote>; and</text> </subparagraph><subparagraph id="H78D350A16417422A9B2D2C58E91E924C"><enum>(B)</enum><text>in paragraph (2)—</text> <clause id="H18D962D55B2449E4BD92A932ABF60FA8"><enum>(i)</enum><text>in subparagraph (A), by striking <quote>6-month period; and</quote> and inserting <quote>36-month period;</quote>;</text> </clause><clause id="H690CF4B3A8F3470CBDB1879287AF62B4"><enum>(ii)</enum><text>in subparagraph (B), by striking the period at the end and inserting a semicolon; and</text> </clause><clause id="H394D0918C06240DA97AE9356A9E9971C"><enum>(iii)</enum><text>by adding after subparagraph (B) the following:</text> <quoted-block display-inline="no-display-inline" id="HE9B8003E14DF418590F550D64BEDAB8C" style="OLC"> <subparagraph id="HE553F992CDAF414C8D60D58F4299C89C"><enum>(C)</enum><text display-inline="yes-display-inline">that government is not a <quote>country of proliferation concern</quote> as defined in section 1055(g)(2) of the National Defense Authorization Act for Fiscal Year 2010 (50 U.S.C. 2371(g)(2)); and</text> </subparagraph><subparagraph id="H61E9B7F479AD4D3390852CC448373BCF"><enum>(D)</enum><text>that government has provided assurances that it will not knowingly facilitate, directly or indirectly, the proliferation of nuclear materials, items, or technology in the future.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </clause></subparagraph></paragraph><paragraph id="H7F7CAE622143465CA7702AC5F6833DFD"><enum>(2)</enum><header>Arms export control act</header><text>Section 40(f)(1) of the Arms Export Control Act (22 U.S.C. 2780(f)(1)) is amended—</text> <subparagraph id="HE41CD8E9BA8E45F590DFCD724AA05B6B"><enum>(A)</enum><text display-inline="yes-display-inline">in the matter preceding subparagraph (A), by striking <quote>the Speaker</quote> and inserting <quote>the chairman of the Committee on Foreign Affairs</quote>; and</text> </subparagraph><subparagraph id="HCAFE670E3B224A18B603F88316C16156"><enum>(B)</enum><text>in subparagraph (B)—</text> <clause display-inline="no-display-inline" id="HF453BB5C8659415E9A4F8F7238574B37"><enum>(i)</enum><text>in clause (i), by striking <quote>6-month period; and</quote> and inserting <quote>36-month period;</quote>;</text> </clause><clause id="H76D974B02A8D4B62A5705EBEACC3F465"><enum>(ii)</enum><text>in clause (ii), by striking the period at the end and inserting a semicolon; and</text> </clause><clause id="H44D7DB9421A24134A9D81D0CF0371884"><enum>(iii)</enum><text display-inline="yes-display-inline">by adding after clause (ii) the following:</text> <quoted-block display-inline="no-display-inline" id="H4705BC65962B4948BF28C67E397002C8" style="OLC"> <clause id="H5403228BCA0E46B39D92F07E8DA40DB9" indent="up1"><enum>(iii)</enum><text display-inline="yes-display-inline">that government is not a <quote>country of proliferation concern</quote> as defined in section 1055(g)(2) of the National Defense Authorization Act for Fiscal Year 2010 (50 U.S.C. 2371(g)(2)); and</text> </clause><clause id="HCE7AE6A5F23A44ABB91C5C7F1FC951D1" indent="up1"><enum>(iv)</enum><text display-inline="yes-display-inline">that government has provided assurances that it will not knowingly facilitate, directly or indirectly, the proliferation of nuclear materials, items, or technology in the future.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </clause></subparagraph></paragraph></subsection></section><section id="H1CED5B5D6B564BC7B9676D5DDA28AF2A"><enum>107.</enum><header>Technical and conforming amendments</header> <subsection display-inline="no-display-inline" id="HDB29115A043F45778D02D0F64C5B58C1"><enum>(a)</enum><header>Renaming of under secretary</header> <paragraph id="HAA368F4B5F574441996969B689588C66"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Section 5(f)(6) of the Export Administration Act of 1979 (50 U.S.C. App. 2404(f)(6)) is amended by striking <quote>Under Secretary of Commerce for Export Administration</quote> and inserting <quote>Under Secretary of Commerce for Industry and Security</quote>.</text> </paragraph><paragraph id="H61A16FC6A3644B9F95E2D71218C72472"><enum>(2)</enum><header>Conforming amendment</header><text>Section 5314 of title 5, United States Code, is amended by striking <quote>Under Secretary of Commerce for Export Administration</quote> and inserting <quote>Under Secretary of Commerce for Industry and Security</quote>.</text> </paragraph></subsection><subsection id="H801C304DD93548CFB8A4BC7FB3E170B7"><enum>(b)</enum><header>Amendments to title 31, united states code</header> <paragraph id="H041CBC5B9CE1457E8AABF671438132FE"><enum>(1)</enum><text>Section 9703(a) of title 31, United States Code (as added by Public Law 102–393), is amended, in the matter preceding paragraph (1), by striking <quote>or the United States Coast Guard</quote> and inserting, <quote>, the United States Coast Guard, or the Bureau of Industry and Security of the Department of Commerce</quote>.</text> </paragraph><paragraph id="HB0B006570AA6443AACC84A0268944096"><enum>(2)</enum><text>Section 9703(o)(1) of title 31, United States Code (as added by Public Law 102–393) is amended by adding at the end the following: <quote>In addition, for purposes of this section, the Bureau of Industry and Security of the Department of Commerce shall be considered to be a Department of the Treasury law enforcement organization.</quote>.</text> </paragraph></subsection><subsection id="H1EBB8DAD863C41CDA9290A0129A74B67"><enum>(c)</enum><header>Civil forfeiture proceedings</header><text>Section 983(i)(2) of title 18, United States Code, is amended—</text> <paragraph id="H12147069C36B480B90DCE20574DA3E2F"><enum>(1)</enum><text>by striking <quote>or</quote> at the end of subparagraph (D);</text> </paragraph><paragraph id="H35C808FCEDA842A8884475286C1392D8"><enum>(2)</enum><text>by striking the period at the end of subparagraph (E) and inserting <quote>; or</quote>; and</text> </paragraph><paragraph id="HB995EEB2EC3B441296CAA8EEFF9C50BE"><enum>(3)</enum><text>by adding at the end the following new subparagraph:</text> <quoted-block id="H854B31AACB29498597F4AF4CCF9B9A46" style="OLC"> <subparagraph id="H4830EDD1A88946F3823C3F1960B13464"><enum>(F)</enum><text>the Export Administration Act of 1979.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H99E401030A6647A9BE2421363F624A68"><enum>(d)</enum><header>Clerical amendment</header><text>Paragraph (3) of section 11A(k) of the Export Administration Act of 1979 (50 U.S.C. App. 2410A(k)(3)) is amended—</text> <paragraph id="HF0045C713BEC48A08EF65EC1E4C4B0F6"><enum>(1)</enum><text>by redesignating that paragraph as paragraph (2); and</text> </paragraph><paragraph id="H9F5BC0DE43C14ED0A2DB09475937C202"><enum>(2)</enum><text>by striking <quote>paragraph (2)</quote> and inserting <quote>paragraph (1)</quote>.</text> </paragraph></subsection><subsection commented="no" id="H817ABEF443204F569112D6B9DD54D86E"><enum>(e)</enum><header>Annual report</header><text display-inline="yes-display-inline">Section 14(a)(15) of the Export Administration Act of 1979 (50 U.S.C. App. 2413(a)(15)) is amended by striking <quote>the export licensing process and</quote> and inserting export licensing, an assessment of the impact of licensing exemptions on licensing caseloads, numbers of licensing officers, and the budget of the Bureau of Industry and Security, and efforts.</text> </subsection></section><section id="H35ED7DA56D664B7EAEBA223057EB6AEE"><enum>108.</enum><header>Reports by Comptroller General on export control vulnerabilities</header> <subsection id="H24BC5F7233A546ED8DFBF6F3A546426E"><enum>(a)</enum><header>In general</header><text>Not later than the date that is 1 year, 2 years, and 3 years after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the appropriate congressional committees a report assessing any progress made in resolving export control issues identified by the Government Accountability Office in—</text> <paragraph id="HB829664203A94742AA209B112B90B728"><enum>(1)</enum><text>its report (GAO–09–767T) entitled <quote>Export Controls: Fundamental Reexamination of System Is Needed to Help Protect Critical Technologies</quote>, dated June 4, 2009; and</text> </paragraph><paragraph id="H27AF1F37722D4BE0B7BFFBC66F9BEDD8"><enum>(2)</enum><text>its report (GAO–11–278) entitled <quote>High-Risk Series: An Update</quote>, dated February 16, 2011.</text> </paragraph></subsection><subsection id="H96FB2439E0B34F1E9AEE2CED24346C9A"><enum>(b)</enum><header>Appropriate congressional committees</header><text>For purposes of subsection (a), the term <term>appropriate congressional committees</term> means—</text> <paragraph id="HDA9C5EF36A694E46BB85FD0E4A8A730E"><enum>(1)</enum><text>the Committee on Foreign Affairs and the Committee on Armed Services of the House of Representatives; and</text> </paragraph><paragraph id="H155C622E131C42A99541A20042312BC4"><enum>(2)</enum><text>the Committee on Banking, Housing, and Urban Affairs, the Committee on Armed Services, and the Committee on Foreign Relations of the Senate.</text> </paragraph></subsection></section><section id="H1047832685184B1EB7F911B8C9FE9858"><enum>109.</enum><header>Effective date</header><text display-inline="no-display-inline">Subject to sections 101(f) and 102(b), this title and the amendments made by this title shall take effect on the date of the enactment of this Act.</text> </section><enum>II</enum><header>Control of Generic Parts and Components</header> <section id="H0100951B2A9E45D5A97D2D28C606E219"><enum>201.</enum><header>Treatment of generic components or parts</header><text display-inline="no-display-inline">Section 38(a)(1) of the Arms Export Control Act (22 U.S.C. 2778(a)(1)) is amended by adding at the end the following: <quote>Nothing in this section shall be construed to require the President to include as a defense article any component, accessory, attachment, or part associated with any end-item included on the United States Munitions List, if such component, attachment, or part does not have specialized or unique military or intelligence capability or significance such that control under the Arms Export Control Act is warranted.</quote>.</text> </section><section id="H5B4ACEF29E454318BA51E602BA1E15C5"><enum>202.</enum><header>Interagency process for subsequent control of items removed from U.S. Munitions List</header> <subsection id="H34B71C7424184B7CABACF337E0CCA62E"><enum>(a)</enum><header>Level of export controls on items removed from United States Munitions List</header><text>If an item is removed from the United States Munitions List under section 38(f) of the Arms Export Control Act (22 U.S.C. 2778(f)), the item may not be made subject to export controls that are less restrictive than the export controls that are imposed on the item at the time it is removed from the Munitions List, unless the President—</text> <paragraph id="HC7423B2662C84FFB95485E308358F491"><enum>(1)</enum><text display-inline="yes-display-inline">determines that such less restrictive controls are appropriate and in the national security and economic interests of the United States; and</text> </paragraph><paragraph id="HE5B0C1DD98A749D48F99118017CC8EAF"><enum>(2)</enum><text display-inline="yes-display-inline">complies with the 30-day notification requirement set forth in section 15(b)(2) of the Export Administration Act of 1979 with respect to the proposed controls, together with a description of, and justification for, the less restrictive controls.</text> </paragraph></subsection><subsection id="H6C0906C4A5CF4B68B9BB2DE2D522FFF9"><enum>(b)</enum><header>Consensus of department heads</header><text display-inline="yes-display-inline">The President shall ensure, through interagency procedures or regulation, that when an item that is removed from the United States Munitions List under section 38(f) of the Arms Export Control Act is subject to controls under the Export Administration Act of 1979, the Secretaries of State, Defense, and Commerce concur on all subsequent modifications to the export controls on the item.</text> </subsection></section><section id="H57C9A8646DB7448CAEF75464154A629F"><enum>203.</enum><header>Exports to certain countries</header> <subsection id="HBF89001C34574B2EA56659FAF60F8C6E"><enum>(a)</enum><header>Exports to China</header> <paragraph id="HAF17AC8C64EA4D77A0A3B57A5B9292A3"><enum>(1)</enum><header>Presumption of denial</header><text display-inline="yes-display-inline">There shall be a presumption of denial of any application for a license or other approval to export to the People’s Republic of China any item that is removed from the United States Munitions List under section 38 of the Arms Export Control Act and is listed on the <quote>Very Sensitive List</quote> or <quote>Sensitive List’</quote> of the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies.</text> </paragraph><paragraph id="H236F019F8DE14BDCB0D8C84FE67477FF"><enum>(2)</enum><header>Waiver</header><text display-inline="yes-display-inline">The President may waive the application of paragraph (1) on a case-by-case basis if the President—</text> <subparagraph id="H928300EE8E1047F3A621DF264B397587"><enum>(A)</enum><text>determines that the waiver is in the national security and economic interest of the United States; and</text> </subparagraph><subparagraph id="H835CE17C1AF543FB82E1BA4E7137EF04"><enum>(B)</enum><text>at least 15 days before the waiver is to take effect, the President submits to the Committee on Foreign Affairs of the House of Representatives and the Committees on Banking, Finance, and Urban Affairs and on Foreign Relations of the Senate a report describing the reasons for the waiver.</text> </subparagraph></paragraph></subsection><subsection id="H878E6D3DBA98456D83A13FB3C761ECCE"><enum>(b)</enum><header>Exports to certain countries</header><text display-inline="yes-display-inline">An application for a license or other approval to export any item that is removed from the United States Munitions List under section 38 of the Arms Export Control Act for export to any country or end-user that is subject to section 126.1 of title 22, Code of Federal Regulations (and any successor regulations), or to a multilateral arms embargo under the United Nations Security Council shall be denied.</text> </subsection></section><section id="HDCC53C6BD0F54CAE983D1D29B9AD509E"><enum>204.</enum><header>Effective date</header> <subsection id="H47F86D68B47647158BCBF4FA0FAE12D9"><enum>(a)</enum><header>Section <enum-in-header>201</enum-in-header></header><text display-inline="yes-display-inline">Section 201 shall take effect on the date of the enactment of this Act.</text> </subsection><subsection id="H9B24A4D93094447F92F652D130FBF0FA"><enum>(b)</enum><header>Section <enum-in-header>202</enum-in-header></header><text>Section 202 shall apply with respect to any item removed from the United States Munitions List on or after the date of the enactment of this Act.</text> </subsection><subsection id="H3713FDB63533418CB07848D93B32B476"><enum>(c)</enum><header>Section <enum-in-header>203</enum-in-header></header><text display-inline="yes-display-inline">Section 203 shall apply to any application for a license or other approval to export that is made on or after the date of the enactment of this Act.</text> </subsection></section>