[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2170 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                S. 2170

    To amend the Export Control Reform Act of 2018 to provide for a 
   presumption of denial of licenses for the export, reexport, or in-
country transfer of technology to end users in the People's Republic of 
        China or the Russian Federation, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 22, 2023

 Mr. Rubio (for himself and Mr. Wicker) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
    To amend the Export Control Reform Act of 2018 to provide for a 
   presumption of denial of licenses for the export, reexport, or in-
country transfer of technology to end users in the People's Republic of 
        China or the Russian Federation, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Depriving Enemy Nations of Integral 
Authorizations and Licenses Act of 2023'' or the ``DENIAL Act of 
2023''.

SEC. 2. PRESUMPTION OF DENIAL FOR LICENSES FOR EXPORT, REEXPORT, OR IN-
              COUNTRY TRANSFER OF TECHNOLOGY TO END USERS IN THE 
              PEOPLE'S REPUBLIC OF CHINA OR THE RUSSIAN FEDERATION.

    Section 1756 of the Export Control Reform Act of 2018 (50 U.S.C. 
4815) is amended by adding at the end the following:
    ``(e) Presumption of Denial for Licenses for Export, Reexport, or 
In-Country Transfer of Technology To End Users in the People's Republic 
of China or the Russian Federation.--
            ``(1) In general.--Except as provided by paragraph (2), the 
        Secretary shall deny an application for a license or other 
        authorization for the export, reexport, or in-country transfer 
        of technology if the end user of the technology is a covered 
        person.
            ``(2) Congressional notification and review process.--
                    ``(A) In general.--Before approving an application 
                for a license or other authorization described in 
                paragraph (1), the Secretary shall submit to the 
                appropriate congressional committees a report--
                            ``(i) specifying the intended end user of 
                        the technology that is the subject of the 
                        application;
                            ``(ii) specifying the dollar value of the 
                        technology;
                            ``(iii) describing the technology;
                            ``(iv) describing the proposed end use of 
                        the technology;
                            ``(v) describing how authorizing the 
                        export, reexport, or in-country transfer of the 
                        technology to the specific end user advances 
                        the national security interests of the United 
                        States; and
                            ``(vi) describing how authorizing the 
                        export, reexport, or in-country transfer of the 
                        technology to the specific user does not 
                        advance the national security interests of a 
                        covered country, including--
                                    ``(I) the Made in China 2025 
                                industrial strategy of the People's 
                                Republic of China;
                                    ``(II) the military-civil fusion 
                                national strategy of the People's 
                                Republic of China, including transfer 
                                of technology to any entity identified 
                                as part of that strategy, including--
                                            ``(aa) any college or 
                                        university known as one of the 
                                        `Seven Sons of National 
                                        Defense';
                                            ``(bb) any college or 
                                        university that receives 
                                        funding from--

                                                    ``(AA) the People's 
                                                Liberation Army; or

                                                    ``(BB) the 
                                                Equipment Development 
                                                Department, or the 
                                                Science and Technology 
                                                Commission, of the 
                                                Central Military 
                                                Commission of the 
                                                People's Republic of 
                                                China;

                                            ``(cc) any college or 
                                        university in the People's 
                                        Republic of China involved in 
                                        military training and 
                                        education, including any such 
                                        college or university in 
                                        partnership with the People's 
                                        Liberation Army;
                                            ``(dd) any college or 
                                        university in the People's 
                                        Republic of China that conducts 
                                        military research or hosts 
                                        dedicated military initiatives 
                                        or laboratories, including such 
                                        a college or university 
                                        designated under the `double 
                                        first-class university plan';
                                            ``(ee) any college or 
                                        university in the People's 
                                        Republic of China that is 
                                        designated by the State 
                                        Administration for Science, 
                                        Technology, and Industry for 
                                        the National Defense to host 
                                        `joint construction' programs;
                                            ``(ff) any college or 
                                        university in the People's 
                                        Republic of China that has 
                                        launched a platform for 
                                        military-civil fusion or 
                                        created national defense 
                                        laboratories;
                                            ``(gg) any college or 
                                        university in the People's 
                                        Republic of China that conducts 
                                        research or hosts dedicated 
                                        initiatives or laboratories for 
                                        any other related security 
                                        entity beyond the People's 
                                        Liberation Army, including the 
                                        People's Armed Police, the 
                                        Ministry of Public Security, 
                                        and the Ministry of State 
                                        Security;
                                            ``(hh) any enterprise for 
                                        which the majority shareholder 
                                        or ultimate parent entity is 
                                        the Government of the People's 
                                        Republic of China at any level 
                                        of that government;
                                            ``(ii) any privately owned 
                                        company in the People's 
                                        Republic of China that--

                                                    ``(AA) has received 
                                                a military production 
                                                license, such as the 
                                                Weapons and Equipment 
                                                Research and Production 
                                                Certificate, the 
                                                Equipment Manufacturing 
                                                Unit Qualification, the 
                                                Weapons and Equipment 
                                                Quality Management 
                                                System Certificate, or 
                                                the Weapons and 
                                                Equipment Research and 
                                                Production Unit 
                                                Classified 
                                                Qualification Permit;

                                                    ``(BB) is otherwise 
                                                known to materially 
                                                support the military 
                                                initiatives of the 
                                                People's Republic of 
                                                China;

                                                    ``(CC) has a 
                                                history of 
                                                subcontracting for the 
                                                People's Liberation 
                                                Army or its affiliates;

                                                    ``(DD) is 
                                                participating in, or 
                                                receiving benefits 
                                                under, a military-civil 
                                                fusion demonstration 
                                                base; or

                                                    ``(EE) has an 
                                                owner, director, or a 
                                                senior management 
                                                official who has served 
                                                as a delegate to the 
                                                National People's 
                                                Congress, a member of 
                                                the Chinese People's 
                                                Political Consultative 
                                                Conference, or a member 
                                                of the Central 
                                                Committee of the 
                                                Chinese Communist 
                                                Party; or

                                    ``(III) the Science and Technology 
                                Foresight 2030 policy of the Russian 
                                Federation, including transfer of 
                                technology to any entity identified as 
                                part of that strategy, including--
                                            ``(aa) the Advanced 
                                        Research Foundation;
                                            ``(bb) the Era Military 
                                        Innovation Technopolis;
                                            ``(cc) any college or 
                                        university that receives 
                                        funding from the Ministry of 
                                        Defense of the Russian 
                                        Federation;
                                            ``(dd) any entity for which 
                                        the majority shareholder or 
                                        ultimate parent entity is the 
                                        Government of the Russian 
                                        Federation at any level of that 
                                        government; or
                                            ``(ee) any privately owned 
                                        company in the Russian 
                                        Federation that--

                                                    ``(AA) is otherwise 
                                                known to materially 
                                                support the military 
                                                initiatives of the 
                                                Russian Federation; or

                                                    ``(BB) has 
                                                subcontracted for the 
                                                Ministry of Defense of 
                                                the Russian Federation 
                                                or its affiliates.

                    ``(B) Limitation on approval during review 
                period.--The Secretary may not approve an application 
                for a license or other authorization described in 
                paragraph (1) during the 30-day period beginning on the 
                date on which the appropriate congressional committees 
                receive the report required by subparagraph (A) unless 
                the Secretary, in the report--
                            ``(i) states that the Secretary has 
                        determined that a pressing national security 
                        imperative exists, such that the national 
                        security interests of the United States 
                        necessitate the immediate approval of the 
                        license or other authorization; and
                            ``(ii) provides a detailed justification 
                        for that determination, including--
                                    ``(I) a description of the 
                                emergency circumstances that 
                                necessitate the immediate approval of 
                                the license or other authorization; and
                                    ``(II) a discussion of the national 
                                security interests involved.
                    ``(C) Prohibition on approval if joint resolution 
                of disapproval enacted.--The Secretary may not approve 
                an application for a license or other authorization 
                described in paragraph (1) if, during the 30-day period 
                described in subparagraph (B), there is enacted into 
                law a joint resolution prohibiting the approval of the 
                application.
                    ``(D) Consideration of joint resolution.--
                            ``(i) Senate.--Any joint resolution under 
                        this paragraph shall be considered in the 
                        Senate in accordance with the provisions of 
                        section 601(b) of the International Security 
                        Assistance and Arms Export Control Act of 1976 
                        (Public Law 94-329; 90 Stat. 765).
                            ``(ii) House of representatives.--For the 
                        purpose of expediting the consideration and 
                        enactment of joint resolutions under this 
                        paragraph, a motion to proceed to the 
                        consideration of any such joint resolution 
                        after it has been reported by the appropriate 
                        committee shall be treated as highly privileged 
                        in the House of Representatives.
                            ``(iii) Rules of house of representatives 
                        and senate.--This subparagraph is enacted by 
                        Congress--
                                    ``(I) as an exercise of the 
                                rulemaking power of the Senate and the 
                                House of Representatives, respectively, 
                                and as such is deemed a part of the 
                                rules of each House, respectively, and 
                                supersedes other rules only to the 
                                extent that it is inconsistent with 
                                such rules; and
                                    ``(II) with full recognition of the 
                                constitutional right of either House to 
                                change the rules (so far as relating to 
                                the procedure of that House) at any 
                                time, in the same manner, and to the 
                                same extent as in the case of any other 
                                rule of that House.
            ``(3) Definitions.--In this subsection:
                    ``(A) Appropriate congressional committees.--The 
                term `appropriate congressional committees' means--
                            ``(i) the Committee on Banking, Housing, 
                        and Urban Affairs, the Committee on Foreign 
                        Relations, and the Select Committee on 
                        Intelligence of the Senate; and
                            ``(ii) the Committee on Financial Services, 
                        the Committee on Foreign Affairs, and the 
                        Permanent Select Committee on Intelligence of 
                        the House of Representatives.
                    ``(B) Covered country.--The term `covered country' 
                means--
                            ``(i) the People's Republic of China 
                        (including the Hong Kong Special Administrative 
                        Region and the Macau Special Administrative 
                        Region); and
                            ``(ii) the Russian Federation.
                    ``(C) Covered person.--The term `covered person' 
                means--
                            ``(i) an individual who is a citizen or 
                        national of a covered country; or
                            ``(ii) an entity organized under the laws 
                        of a covered country or otherwise subject to 
                        the jurisdiction of the government of a covered 
                        country.''.

SEC. 3. EXPORT CONTROL TREATMENT OF SUBSIDIARIES OF ENTITIES ON THE 
              ENTITY LIST.

    (a) In General.--Not later than 30 days after the date of the 
enactment of this Act, the Secretary of Commerce shall revise part 744 
of title 15, Code of Federal Regulations, to ensure that the same 
requirements and restrictions that apply to an entity on the Entity 
List apply to an entity owned or controlled by an entity on the Entity 
List, including an entity--
            (1) 50 percent or more of the ownership interest in which 
        is held in the aggregate, directly or indirectly, by one or 
        more entities on the Entity List; or
            (2) that the Secretary of Commerce considers to have an 
        interest in all property and interests in property of an entity 
        in which 50 percent or more of the ownership interest is held 
        in the aggregate, directly or indirectly, by one or more 
        entities on the Entity List.
    (b) Entity List Defined.--In this section, the term ``Entity List'' 
means the list maintained by the Bureau of Industry and Security of the 
Department of Commerce and set forth in Supplement No. 4 to part 744 of 
title 15, Code of Federal Regulations.
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