[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5841 Introduced in House (IH)]

<DOC>






115th CONGRESS
  2d Session
                                H. R. 5841

To modernize and strengthen the Committee on Foreign Investment in the 
    United States to more effectively guard against the risk to the 
   national security of the United States posed by certain types of 
              foreign investment, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 16, 2018

Mr. Pittenger introduced the following bill; which was referred to the 
  Committee on Foreign Affairs, and in addition to the Committees on 
   Financial Services, Energy and Commerce, Intelligence (Permanent 
   Select), and Oversight and Government Reform, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
To modernize and strengthen the Committee on Foreign Investment in the 
    United States to more effectively guard against the risk to the 
   national security of the United States posed by certain types of 
              foreign investment, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.
                TITLE I--FINDINGS AND SENSE OF CONGRESS

Sec. 101. Findings and sense of Congress.
                         TITLE II--DEFINITIONS

Sec. 201. Definitions.
 TITLE III--IMPROVEMENTS TO THE OPERATIONS OF THE COMMITTEE ON FOREIGN 
                    INVESTMENT IN THE UNITED STATES

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

Sec. 401. Modification of annual report.
       TITLE V--RESOURCES, SPECIAL HIRING AUTHORITY, AND OUTREACH

Sec. 501. Centralization of certain Committee functions.
Sec. 502. CFIUS resource needs.
Sec. 503. CFIUS outreach.
               TITLE VI--MISCELLANEOUS FIRRMA PROVISIONS

Sec. 601. Conforming amendment.
Sec. 602. Regulatory certainty for United States businesses.
          TITLE VII--COMMON SENSE CREDIT UNION CAPITAL RELIEF

Sec. 701. Delay in effective date.
                   TITLE VIII--EXPORT CONTROL REFORM

Sec. 801. Short title.
Sec. 802. Definitions.
          Subtitle A--Authority and Administration of Controls

Sec. 811. Short title.
Sec. 812. Statement of policy.
Sec. 813. Authority of the President.
Sec. 814. Additional authorities.
Sec. 815. Administration of export controls.
Sec. 816. Control lists.
Sec. 817. Licensing.
Sec. 818. Compliance assistance.
Sec. 819. Requirements to identify and control emerging, foundational, 
                            and other critical technologies in export 
                            control regulations.
Sec. 820. Review relating to countries subject to comprehensive United 
                            States arms embargo.
Sec. 821. Penalties.
Sec. 822. Enforcement.
Sec. 823. Administrative procedure.
Sec. 824. Annual report to Congress.
Sec. 825. Repeal.
Sec. 826. Effect on other Acts.
Sec. 827. Transition provisions.
                  Subtitle B--Anti-Boycott Act of 2018

Sec. 831. Short title.
Sec. 832. Statement of policy.
Sec. 833. Foreign boycotts.
Sec. 834. Enforcement.
Subtitle C--Sanctions Regarding Missile Proliferation and Chemical and 
                    Biological Weapons Proliferation

Sec. 841. Missile proliferation control violations.
Sec. 842. Chemical and biological weapons proliferation sanctions.
                 Subtitle D--Administrative Authorities

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

                TITLE I--FINDINGS AND SENSE OF CONGRESS

SEC. 101. FINDINGS AND SENSE OF CONGRESS.

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

                         TITLE II--DEFINITIONS

SEC. 201. DEFINITIONS.

    Section 721(a) of the Defense Production Act of 1950 (50 U.S.C. 
4565(a)) is amended--
            (1) by striking paragraphs (2), (3), and (4) and inserting 
        the following:
            ``(2) Control.--The term `control' means the power, direct 
        or indirect, whether or not exercised, to determine, direct, or 
        decide important matters affecting an entity, subject to 
        regulations prescribed by the Committee.
            ``(3) Covered transaction.--
                    ``(A) In general.--The term `covered transaction' 
                means any transaction described in subparagraph (B) or 
                (C) that is proposed, pending, or completed on or after 
                the date of the enactment of the Foreign Investment 
                Risk Review Modernization Act of 2018.
                    ``(B) Transactions described.--A transaction 
                described in this subparagraph is any of the following:
                            ``(i) Any merger, acquisition, takeover, or 
                        joint venture that is proposed or pending after 
                        August 23, 1988, by or with any foreign person 
                        that could result in foreign control of any 
                        United States business.
                            ``(ii) The purchase or lease by, or 
                        concession to, a foreign person of private or 
                        public real estate that--
                                    ``(I) is--
                                            ``(aa) located in the 
                                        United States and is, or is in 
                                        close proximity to, a United 
                                        States military installation; 
                                        or
                                            ``(bb) itself, or is 
                                        located at and will function as 
                                        part of, an air or sea port;
                                    ``(II) is not a single housing 
                                unit, as defined by the Bureau of the 
                                Census;
                                    ``(III) is not in an urbanized 
                                area, as set forth by the Bureau of the 
                                Census in its most recent census, 
                                except as otherwise prescribed by the 
                                Committee in regulations in 
                                consultation with the Secretary of 
                                Defense; and
                                    ``(IV) meets such other criteria as 
                                the Committee prescribes by regulation.
                            ``(iii) Any change in the rights that a 
                        foreign person has with respect to a United 
                        States business in which the foreign person has 
                        an investment, if that change is likely to 
                        result in foreign control of the United States 
                        business.
                            ``(iv) Any transaction or other device 
                        entered into or employed for the purpose of 
                        evading this section, subject to regulations 
                        prescribed by the Committee.
                    ``(C) Sensitive transactions involving countries of 
                special concern.--
                            ``(i) In general.--A transaction described 
                        in this subparagraph is any investment in an 
                        unaffiliated United States business by a 
                        foreign person that--
                                    ``(I) is--
                                            ``(aa) a national or a 
                                        government of, or a foreign 
                                        entity organized under the laws 
                                        of, a country of special 
                                        concern; or
                                            ``(bb) a foreign entity--

                                                    ``(AA) over which 
                                                control is exercised or 
                                                exercisable by a 
                                                national or a 
                                                government of, or by a 
                                                foreign entity 
                                                organized under the 
                                                laws of, a country of 
                                                special concern; or

                                                    ``(BB) in which the 
                                                government of a country 
                                                of special concern has 
                                                a substantial interest; 
                                                and

                                    ``(II) as a result of the 
                                transaction, could obtain---
                                            ``(aa) sensitive personal 
                                        data, as defined by regulations 
                                        prescribed by the Committee, of 
                                        United States citizens, if such 
                                        data may be exploited in a 
                                        manner that threatens national 
                                        security; or
                                            ``(bb) influence over 
                                        substantive decisionmaking of 
                                        the United States business 
                                        regarding the use, development, 
                                        acquisition, or release of--

                                                    ``(AA) sensitive 
                                                personal data of United 
                                                States citizens, as 
                                                described in item (aa); 
                                                or

                                                    ``(BB) critical 
                                                technologies.

                                    ``(III) Countries of special 
                                concern.--For the purposes of this 
                                subparagraph, the term `countries of 
                                special concern' means--
                                            ``(aa) any foreign country 
                                        that is subject to export 
                                        restrictions pursuant to 
                                        section 744.21 of title 15, 
                                        Code of Federal Regulations;
                                            ``(bb) any country 
                                        determined by the Secretary of 
                                        State to be a state sponsor of 
                                        terrorism; and
                                            ``(cc) any country that--

                                                    ``(AA) is subject 
                                                to a United States arms 
                                                embargo, as specified 
                                                in list D:5 of Country 
                                                Group D in Supplement 
                                                No. 1 to part 740 of 
                                                title 15, Code of 
                                                Federal Regulations; 
                                                and

                                                    ``(BB) is 
                                                identified as a country 
                                                of special concern in 
                                                regulations prescribed 
                                                by the Committee.

                            ``(ii) Investment defined.--For the 
                        purposes of this subparagraph, the term 
                        `investment' means the acquisition of an equity 
                        interest, including contingent equity interest, 
                        as further defined in regulations prescribed by 
                        the Committee.
                            ``(iii) Unaffiliated united states business 
                        defined.--For the purposes of this 
                        subparagraph, with respect to an investment 
                        described under clause (i), and as further 
                        defined in regulations prescribed by the 
                        Committee, the term `unaffiliated United States 
                        business' means a United States business that 
                        is not subject to the same ultimate ownership 
                        of the foreign person undertaking the 
                        investment.
                            ``(iv) Waiver.--The President may waive any 
                        requirement of this subparagraph upon reporting 
                        to the Committees on Financial Services and 
                        Foreign Affairs of the House and the Committees 
                        on Banking, Housing, and Urban Affairs and 
                        Foreign Relations of the Senate that the waiver 
                        is important to the national interest of the 
                        United States, with a detailed explanation of 
                        the reasons therefor.
                    ``(D) Transfers of certain assets pursuant to 
                bankruptcy proceedings or other defaults.--The 
                Committee shall prescribe regulations to clarify that 
                the term `covered transaction' includes any transaction 
                described in subparagraphs (B) or (C) that arises 
                pursuant to a bankruptcy proceeding or other form of 
                default on debt.
            ``(4) Foreign government-controlled transaction.--The term 
        `foreign government-controlled transaction' means any covered 
        transaction that could result in control of a United States 
        business by a foreign government or a person controlled by or 
        acting on behalf of a foreign government.'';
            (2) by amending paragraph (7) to read as follows:
            ``(7) Critical technologies.--The term `critical 
        technologies' means--
                    ``(A) defense articles or defense services covered 
                by the United States Munitions List (USML), which is 
                set forth in the International Traffic in Arms 
                Regulations (ITAR) (22 C.F.R. parts 120-130);
                    ``(B) those items specified on the Commerce Control 
                List (CCL) set forth in Supplement No. 1 to part 774 of 
                the Export Administration Regulations (EAR) (15 C.F.R. 
                parts 730-774) that are controlled pursuant to 
                multilateral regimes (i.e. for reasons of national 
                security, chemical and biological weapons 
                proliferation, nuclear nonproliferation, or missile 
                technology), as well as those that are controlled for 
                reasons of regional stability or surreptitious 
                listening;
                    ``(C) specially designed and prepared nuclear 
                equipment, parts and components, materials, software, 
                and technology specified in the Assistance to Foreign 
                Atomic Energy Activities regulations (10 C.F.R. part 
                810), and nuclear facilities, equipment, and material 
                specified in the Export and Import of Nuclear Equipment 
                and Material regulations (10 C.F.R. part 110);
                    ``(D) select agents and toxins specified in the 
                Select Agents and Toxins regulations (7 C.F.R. part 
                331, 9 C.F.R. part 121, and 42 C.F.R. part 73); and
                    ``(E) emerging, foundational, or other critical 
                technologies that are controlled pursuant to section 
                819 of the Foreign Investment Risk Review Modernization 
                Act of 2018.''; and
            (3) by adding at the end the following:
            ``(9) Foreign person.--The term `foreign person' means--
                    ``(A) any foreign national, foreign government, or 
                foreign entity; or
                    ``(B) any entity over which control is exercised or 
                exercisable by a foreign national, foreign government, 
                or foreign entity.
            ``(10) Substantial interest.--The term `substantial 
        interest' has the meaning given to such term in regulations 
        prescribed by the Committee, but does not include a voting 
        interest of less than ten percent or ownership interests held 
        or acquired solely for the purpose of passive investment.
            ``(11) United states business.--The term `United States 
        business' means any entity, irrespective of the nationality of 
        the persons that control it, engaged in interstate commerce in 
        the United States, but only to the extent of its activities in 
        interstate commerce.''.

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

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

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

SEC. 302. DECLARATIONS RELATING TO CERTAIN COVERED TRANSACTIONS.

    (a) In General.--Section 721(b)(1)(C) of the Defense Production Act 
of 1950 (50 U.S.C. 4565(b)(1)(C)), as amended by section 301, is 
further amended by adding at the end the following:
                            ``(v) Declarations with respect to certain 
                        covered transactions.--
                                    ``(I) Voluntary declarations.--For 
                                the purpose of expediting the review of 
                                certain covered transactions that the 
                                Committee determines are likely to pose 
                                limited risk, the Committee may 
                                prescribe regulations to permit parties 
                                to the transaction to submit a 
                                declaration with basic information 
                                regarding the transaction, unless the 
                                parties submit a written notice under 
                                clause (i).
                                    ``(II) Mandatory declarations.--
                                            ``(aa) In general.--The 
                                        Committee may prescribe 
                                        regulations to require the 
                                        parties to a covered 
                                        transaction to submit a 
                                        declaration described in 
                                        subclause (I) with respect to 
                                        the transaction if the 
                                        transaction involves an 
                                        investment that results in the 
                                        acquisition, directly or 
                                        indirectly, of a substantial 
                                        interest in a United States 
                                        business by a foreign person in 
                                        which a foreign government has, 
                                        directly or indirectly, a 
                                        substantial interest.
                                            ``(bb) Submission of 
                                        written notice as an 
                                        alternative.--Parties to a 
                                        covered transaction for which a 
                                        declaration is required under 
                                        this clause may instead elect 
                                        to submit a written notice 
                                        under clause (i).
                                            ``(cc) Timing of 
                                        submission.--With respect to 
                                        the regulations described under 
                                        subclause (I), the Committee 
                                        may not require a declaration 
                                        to be submitted more than 30 
                                        days in advance of the 
                                        completion of the transaction.
                                    ``(III) Penalties.--The Committee 
                                may impose a penalty pursuant to 
                                subsection (h)(3)(A) with respect to a 
                                party that fails to comply with this 
                                clause.
                                    ``(IV) Committee response to 
                                declaration.--
                                            ``(aa) In general.--Upon 
                                        receiving a declaration under 
                                        this clause with respect to a 
                                        transaction, the Committee may, 
                                        at its discretion--

                                                    ``(AA) request that 
                                                the parties to the 
                                                transaction file a 
                                                written notice under 
                                                clause (i), provided 
                                                that the Committee 
                                                includes an explanation 
                                                of the reasons for the 
                                                request;

                                                    ``(BB) inform the 
                                                parties to the 
                                                transaction that the 
                                                Committee is not able 
                                                to complete action 
                                                under this section with 
                                                respect to the 
                                                transaction on the 
                                                basis of the 
                                                declaration and that 
                                                the parties may file a 
                                                written notice under 
                                                clause (i) to seek 
                                                written notification 
                                                from the Committee that 
                                                the Committee has 
                                                completed all action 
                                                under this section with 
                                                respect to the 
                                                transaction;

                                                    ``(CC) initiate a 
                                                unilateral review of 
                                                the transaction under 
                                                subparagraph (D); or

                                                    ``(DD) notify the 
                                                parties in writing that 
                                                the Committee has 
                                                completed all action 
                                                under this section with 
                                                respect to the 
                                                transaction.

                                            ``(bb) Timing.--The 
                                        Committee shall take action 
                                        under item (aa) within 15 days 
                                        of receiving a declaration 
                                        under this clause.
                                            ``(cc) Refiling of 
                                        declaration.--The Committee may 
                                        not request or recommend that a 
                                        declaration be withdrawn and 
                                        refiled, except to permit 
                                        parties to a transaction to 
                                        correct material errors or 
                                        omissions.
                                    ``(V) Regulations.--In prescribing 
                                regulations establishing requirements 
                                for declarations submitted under this 
                                clause, the Committee shall ensure that 
                                such declarations are submitted as 
                                abbreviated notifications that do not 
                                generally exceed 5 pages in length.
                                    ``(VI) Investment defined.--For the 
                                purposes of this clause, the term 
                                `investment' means the acquisition of 
                                an equity interest, including 
                                contingent equity interest, as further 
                                defined in regulations prescribed by 
                                the Committee.''.
    (b) Stipulations Regarding Transactions.--Section 721(b)(1)(C) of 
the Defense Production Act of 1950 (50 U.S.C. 4565(b)(1)(C)), as 
amended by this section, is further amended by adding at the end the 
following:
                            ``(viii) Stipulations regarding 
                        transactions.--
                                    ``(I) In general.--In a written 
                                notice submitted under clause (i) or a 
                                declaration submitted under clause (v) 
                                with respect to a transaction, a party 
                                to the transaction may--
                                            ``(aa) stipulate that the 
                                        transaction is a covered 
                                        transaction; and
                                            ``(bb) if the party 
                                        stipulates that the transaction 
                                        is a covered transaction under 
                                        item (aa), stipulate that the 
                                        transaction is a foreign 
                                        government-controlled 
                                        transaction.
                                    ``(II) Basis for stipulation.--A 
                                written notice submitted under clause 
                                (i) or a declaration submitted under 
                                clause (v) that includes a stipulation 
                                under subclause (I) shall include a 
                                description of the basis for the 
                                stipulation.''.

SEC. 303. TIMING FOR REVIEWS AND INVESTIGATIONS.

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

SEC. 304. SUBMISSION OF CERTIFICATIONS TO CONGRESS.

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

SEC. 305. ANALYSIS BY DIRECTOR OF NATIONAL INTELLIGENCE.

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

SEC. 306. INFORMATION SHARING.

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

SEC. 307. ACTION BY THE PRESIDENT.

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

SEC. 308. FACTORS TO BE CONSIDERED.

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

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

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

SEC. 310. CERTIFICATION OF NOTICES AND INFORMATION.

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

                TITLE IV--MODIFICATION OF ANNUAL REPORT

SEC. 401. MODIFICATION OF ANNUAL REPORT.

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

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

SEC. 501. CENTRALIZATION OF CERTAIN COMMITTEE FUNCTIONS.

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

SEC. 502. CFIUS RESOURCE NEEDS.

    (a) Unified Budget Request.--Section 721 of the Defense Production 
Act of 1950 (50 U.S.C. 4565), as amended by section 501, is further 
amended by adding at the end the following:
    ``(p) Unified Budget Request.--
            ``(1) In general.--The President may include, in the budget 
        of the Department of the Treasury for a fiscal year (as 
        submitted to Congress with the budget of the President under 
        section 1105(a) of title 31, United States Code), a unified 
        request for funding of all operations under this section 
        conducted by all of the departments and agencies represented on 
        the Committee.
            ``(2) Form of budget request.--A unified request under 
        paragraph (1) shall be detailed and include the amounts and 
        staffing levels requested for each department or agency 
        represented on the Committee to carry out the functions of that 
        department or agency under this section.''.
    (b) Annual Spending Plan.--Not later than 90 days following the 
date of enactment of this Act, and annually thereafter, the chairperson 
of the Committee on Foreign Investment in the United States shall 
transmit to the Committees on Appropriations and Financial Services of 
the House of Representatives and the Committees on Appropriations and 
Banking, Housing, and Urban Affairs of the Senate a detailed spending 
plan to expeditiously meet the requirements of subsections (b), (l), 
and (m) of section 721 of the Defense Production Act of 1950, as 
amended by this Act, including estimated expenditures and staffing 
levels required by operations of the Committee for not less than the 
following fiscal year at each of the Committee's member agencies.
    (c) Waiver.--The chairperson may waive the reporting requirement 
under subsection (b) with respect to a fiscal year for which a unified 
budget request described under section 721(p) of the Defense Production 
Act of 1950 has been submitted.
    (d) Special Hiring Authority.--Section 721 of the Defense 
Production Act of 1950 (50 U.S.C. 4565), as amended by subsection (a), 
is further amended by adding at the end the following:
    ``(q) Special Hiring Authority.--The heads of the departments and 
agencies represented on the Committee may appoint, without regard to 
the provisions of sections 3309 through 3318 of title 5, United States 
Code, candidates directly to positions in the competitive service (as 
defined in section 2102 of that title) in their respective departments 
and agencies to administer this section.''.
    (e) Testimony Required.--Section 721 of the Defense Production Act 
of 1950 (50 U.S.C. 4565), as amended by subsection (d), is further 
amended by adding at the end the following:
    ``(r) Testimony.--
            ``(1) In general.--After submitting the unified budget 
        request described under subsection (p), or the spending plan 
        described under section 502 of the Foreign Investment Risk 
        Review Modernization Act of 2018, as the case may be, but not 
        later than March 31 of each year, the chairperson, or the 
        chairperson's designee, shall appear before the Committee on 
        Financial Services of the House of Representatives and present 
        testimony on--
                    ``(A) anticipated resources necessary for 
                operations of the Committee in the following fiscal 
                year at each of the Committee's member agencies;
                    ``(B) the adequacy of appropriations for the 
                Committee in the current and the previous fiscal year 
                to--
                            ``(i) ensure that thorough reviews and 
                        investigations are completed as expeditiously 
                        as possible;
                            ``(ii) monitor and enforce mitigation 
                        agreements; and
                            ``(iii) identify covered transactions for 
                        which a notice under clause (i) of subsection 
                        (b)(1)(C) or a declaration under clause (v) of 
                        subsection (b)(1)(C) was not submitted to the 
                        Committee; and
                    ``(C) management efforts to strengthen the ability 
                of the Committee to meet the requirements of this 
                section.
            ``(2) Sunset.--This subsection shall have no force or 
        effect on the date that is five years following the date of 
        enactment of the Foreign Investment Risk Review Modernization 
        Act of 2018.''.

SEC. 503. CFIUS OUTREACH.

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

               TITLE VI--MISCELLANEOUS FIRRMA PROVISIONS

SEC. 601. CONFORMING AMENDMENT.

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

SEC. 602. REGULATORY CERTAINTY FOR UNITED STATES BUSINESSES.

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

          TITLE VII--COMMON SENSE CREDIT UNION CAPITAL RELIEF

SEC. 701. DELAY IN EFFECTIVE DATE.

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

                   TITLE VIII--EXPORT CONTROL REFORM

SEC. 801. SHORT TITLE.

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

SEC. 802. DEFINITIONS.

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

          Subtitle A--Authority and Administration of Controls

SEC. 811. SHORT TITLE.

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

SEC. 812. STATEMENT OF POLICY.

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

SEC. 813. AUTHORITY OF THE PRESIDENT.

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

SEC. 814. ADDITIONAL AUTHORITIES.

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

SEC. 815. ADMINISTRATION OF EXPORT CONTROLS.

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

SEC. 816. CONTROL LISTS.

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

SEC. 817. LICENSING.

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

SEC. 818. COMPLIANCE ASSISTANCE.

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

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

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

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

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

SEC. 821. PENALTIES.

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

SEC. 822. ENFORCEMENT.

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

SEC. 823. ADMINISTRATIVE PROCEDURE.

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

SEC. 824. ANNUAL REPORT TO CONGRESS.

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

SEC. 825. REPEAL.

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

SEC. 826. EFFECT ON OTHER ACTS.

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

SEC. 827. TRANSITION PROVISIONS.

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

                  Subtitle B--Anti-Boycott Act of 2018

SEC. 831. SHORT TITLE.

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

SEC. 832. STATEMENT OF POLICY.

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

SEC. 833. FOREIGN BOYCOTTS.

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

SEC. 834. ENFORCEMENT.

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

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

SEC. 841. MISSILE PROLIFERATION CONTROL VIOLATIONS.

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

SEC. 842. CHEMICAL AND BIOLOGICAL WEAPONS PROLIFERATION SANCTIONS.

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

                 Subtitle D--Administrative Authorities

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

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