[Congressional Record Volume 146, Number 115 (Monday, September 25, 2000)]
[House]
[Pages H8021-H8022]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    EXPORT ADMINISTRATION MODIFICATION AND CLARIFICATION ACT OF 2000

  Mr. GILMAN. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 5239) to provide for increased penalties for violations of 
the Export Administration Act of 1979 and for other purposes, as 
amended.
  The Clerk read as follows:

                               H.R. 5239

       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 ``Export Administration 
     Modification and Clarification Act of 2000''.

     SEC. 2. CONTINUATION OF THE EXPORT CONTROL REGULATIONS UNDER 
                   IEEPA.

       To the extent that the President exercises the authorities 
     of the International Emergency Economic Powers Act to carry 
     out the provisions of the Export Administration Act of 1979 
     in order to continue in full force and effect the export 
     control system maintained by the Export Administration 
     Regulations issued under that Act, including regulations 
     issued under section 8 of that Act, the following shall 
     apply:
       (1)(A) Subject to subparagraph (B), the penalties for 
     violations of the regulations continued pursuant to the 
     International Emergency Economic Powers Act shall be the same 
     as the penalties for violations under section 11 of the 
     Export Administration Act of 1979, as if that section were 
     amended--

[[Page H8022]]

       (i) by amending subsection (a) to read as follows:
       ``(a) In General.--Except as provided in subsection (b), 
     whoever knowingly violates or conspires to or attempts to 
     violate any provision of this Act or any license, order, or 
     regulation issued under this Act--
       ``(1) except in the case of an individual, shall be fined 
     not more than $500,000 or 5 times the value of any exports 
     involved, whichever is greater; and
       ``(2) in the case of an individual, shall be fined not more 
     than $250,000 or 5 times the value of any exports involved, 
     whichever is greater, or imprisoned not more than 5 years, or 
     both.'';
       (ii) in subsection (b)--
       (I) in paragraphs (1)(A) and (2)(A), by striking ``five 
     times'' and inserting ``10 times'';
       (II) in paragraph (1)(B), by striking ``$250,000'' and 
     inserting ``$500,000''; and
       (III) in paragraph (2)(B), by striking ``$250,000, or 
     imprisoned not more than 5 years'' and inserting ``$500,000, 
     or imprisoned not more than 10 years'';
       (iii) in subsection (c)(1)--
       (I) by striking ``$10,000'' and inserting ``$250,000''; and
       (II) by striking ``except that the civil penalty'' and all 
     that follows through the end of the paragraph and inserting 
     ``except that the civil penalty for a violation of the 
     regulations issued pursuant to section 8 may not exceed 
     $50,000.''; and
       (iv) in subsection (h)(1), by striking ``or section 38 of 
     the Arms Export Control Act (22 U.S.C. 2778)'' and inserting 
     ``section 38 of the Arms Export Control Act (22 U.S.C. 2778), 
     section 16 of the Trading with the enemy Act (50 U.S.C. 16), 
     or, to the extent the violation involves the export of goods 
     or technology controlled under this or any other Act or 
     defense articles or defense services controlled under the 
     Arms Export Control Act, section 371 of title 18, United 
     States Code,''.
       (B) The penalties in effect on the day before the date of 
     enactment of this Act for violations of the Export 
     Administration Regulations, as continued in effect under the 
     International Emergency Economic Powers Act, shall continue 
     to apply in the case of any penalty assessed for, or 
     violations based on, voluntary disclosures of information 
     made by a person before such date of enactment.
       (2) The authorities set forth in section 12(a) of the 
     Export Administration Act of 1979 may be exercised in 
     carrying out the regulations continued pursuant to the 
     International Emergency Economic Powers Act.
       (3) The provisions of sections 12(c) and 13 of the Export 
     Administration Act of 1979 shall apply in carrying out the 
     regulations continued pursuant to the International Emergency 
     Economic Powers Act.
       (4) The continuation of the provisions of the Export 
     Administration Regulations pursuant to the International 
     Emergency Economic Powers Act shall not be construed as not 
     having satisfied the requirements of that Act.

     SEC. 3. APPLICABILITY.

       Paragraphs (2), (3), and (4) of section 2 shall be applied 
     as if enacted on August 20, 1994.

     SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Department 
     of Commerce to carry out the Export Administration Act of 
     1979, as continued in effect under the International 
     Emergency Economic Powers Act, $72,000,000 for fiscal year 
     2001.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
York (Mr. Gilman) and the gentleman from North Dakota (Mr. Pomeroy) 
each will control 20 minutes.
  The Chair recognizes the gentleman from New York (Mr. Gilman).


                             General Leave

  Mr. GILMAN. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
on H.R. 5239, as amended.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New York?
  There was no objection.
  Mr. GILMAN. Mr. Speaker, I yield myself such time as I may consume.
  (Mr. GILMAN asked and was given permission to revise and extend his 
remarks.)
  Mr. GILMAN. Mr. Speaker, I rise in strong support of H.R. 5239, the 
Export Administration Modification and Clarification Act of 2000, that 
will strengthen the enforcement of our export control system by 
increasing the penalties against those who would knowingly violate its 
regulations and provisions.
  This bipartisan measure was approved by voice vote last week by the 
Committee on International Relations.
  H.R. 5239 is virtually identical to a provision, H.R. 973, a security 
assistance bill, which passed the House in June of last year also with 
bipartisan support. Since the Export Administration Act, or EAA, lapsed 
in August of 1994, the Administration has used the authorities in the 
International Emergency Economic Powers Act to administer our export 
control system. But in some key areas, the administration has less 
authority under HEEPA than under the EAA of 1979.
  For example, the penalties for violations of the Export 
Administration Regulations that occur under IEEPA, both criminal and 
civil, are substantially lower than those available for violations that 
occur under the EAA. Even these penalties are too low, having been 
eroded by inflation over the last 20 years.
  This measure that we are introducing today significantly increases 
the penalties available to our enforcement authorities at the Bureau of 
Export Administration in the Department of Commerce. It also ensures 
that the Department can maintain its ability to protect from public 
disclosure information concerning export license applications, the 
licenses themselves, and related export enforcement information.
  In view of the lapse of the EAA over the past 5\1/2\ years, the 
Department is coming under mounting legal challenges and is currently 
defending against two separate lawsuits seeking public release of 
export licensing information subject to the confidentiality provisions 
of section 12(c) of the EAA.
  The text includes a technical and perfecting amendment which, one, 
adds a reference to the Department of Commerce's authority to deny 
export privileges for those persons providing false statements and 
export control cases; and, two, removes a provision providing for the 
retroactive application of higher penalties in certain instances.
  Accordingly, I urge my colleagues to support the passage of this 
bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. POMEROY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, we see this matter very much as the gentleman from New 
York (Chairman Gilman) has outlined. The Export Administration Act has 
been the principle authority for the regulation in the export of dual-
use items from the United States. When this bill lapsed in August of 
1994, the President invoked the International Emergency Economic Powers 
Act and other authorities to continue the export control system, 
including the Export Administration Regulations.
  Now, there has been a recent court ruling that calls into question 
whether or not the government can essentially hide behind emergency 
powers to revive an expired law. This calls into question the Commerce 
Department's ability to keep sensitive export information provided by 
exporters from public disclosure using the EAA's confidentiality 
provision.
  We have got to pass this law to make sure that they can keep the 
information confidential so that the exporters will fully use the 
Commerce Department's assistance in exporting our products.
  We have got a record trade-in balance. We need to export more. We 
need to pass this law as an important part of making certain that the 
Commerce Department is there to provide as much assistance as possible 
in moving products overseas.
  For that reason, we fully concur that this is passed.
  Mr. Speaker, I yield back the balance of my time.
  Mr. GILMAN. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from New York (Mr. Gilman) that the House suspend the rules 
and pass the bill, H.R. 5239, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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