[Congressional Record Volume 165, Number 99 (Thursday, June 13, 2019)]
[Senate]
[Pages S3490-S3491]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 406. Mr. BENNET submitted an amendment intended to be proposed by
him to the bill S. 1790, to authorize appropriations for fiscal year
2020 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:
At the end of subtitle F of title XII, insert the
following:
SEC. 1272. REPORT ON EXPORT OF CERTAIN SATELLITES TO ENTITIES
WITH CERTAIN BENEFICIAL OWNERSHIP STRUCTURES.
(a) In General.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of Commerce, in
consultation with the heads of appropriate agencies, shall
submit to the appropriate congressional committees a report
on addressing the threat or potential threat posed by the
export, reexport, or in-country transfer of satellites
described in section 1261(c)(1) of the National Defense
Authorization Act for Fiscal Year 2013 (Public Law 112-239;
22 U.S.C. 2778 note) to entities described in subsection (b).
(b) Entities Described.--
(1) In general.--An entity described in this subsection is
an entity the beneficial owner of which is--
(A) an individual who is a citizen or national of a country
described in section 1261(c)(2) of the National Defense
Authorization Act for Fiscal Year 2013;
(B) an entity organized under the laws of or otherwise
subject to the jurisdiction of such a country;
(C) the government of such a country; or
(D) any other individual or entity the Secretary determines
may detrimentally affect the national security of the United
States.
(2) Determination of beneficial ownership.--For purposes of
paragraph (1), the Secretary shall identify a person as the
beneficial owner of an entity--
(A) in a manner that is not less stringent than the manner
set forth in section 240.13d-3 of title 17, Code of Federal
Regulations (as in effect on the date of the enactment of
this Act); and
(B) based on a threshold, to be determined by the
Secretary, based on an assessment of whether the person's
position would give the person an opportunity to control the
use of a satellite described in section 1261(c)(1) of the
National Defense Authorization Act for Fiscal Year 2013 and
exported, reexported, or transferred in country to the
entity.
(c) Elements.--The report required by subsection (a) shall
include the following:
(1) An evaluation of whether satellites described in
section 1261(c)(1) of the National
[[Page S3491]]
Defense Authorization Act for Fiscal Year 2013 have been
exported, reexported, or transferred in-country, directly or
indirectly, to entities described in subsection (b).
(2) An examination of the effect on national security of
the potential export, reexport, or in-country transfer of
satellites in compliance with section 1261(c) of the National
Defense Authorization Act for Fiscal Year 2013 in
circumstances in which the services, bandwidth, or functions
of the satellites could subsequently be leased or sold to, or
otherwise used by, an entity described in subsection (b).
(3) An examination of the effect on national security of
not limiting the export, reexport, or in-country transfer of
such satellites to entities described in subsection (b).
(4) Recommendations for, and an assessment of the
effectiveness of, a licensing condition that would prohibit
or limit the export, reexport, or in-country transfer of such
satellites to, or the use of such satellites by, entities
described in subsection (b).
(5) An assessment, based on realistic and justifiable
assumptions and forecasts, of the economic implications of
and potential harm caused by a licensing condition described
in paragraph (4) on the United States industries that develop
or produce satellites and commercial telecommunications
equipment that do not have direct national security ties,
including any costs identified under paragraph (3).
(6) An evaluation of the resources necessary to ensure the
ability of the Bureau of Industry and Security of the
Department of Commerce--
(A) to adequately identify and analyze the beneficial
owners of entities in decisions relating to--
(i) issuing licenses for the export, reexport, or in-
country transfer of such satellites to such entities; or
(ii) the ultimate end uses and end-users of such
satellites; and
(B) when evaluating such a decision--
(i) to have full knowledge of the potential end-user of the
satellite and the current beneficial owner of the entity; and
(ii) to be able to determine whether issuing the license
would be inconsistent with the goal of preventing entities
described in subsection (b) from accessing or using such
satellites.
(d) Form.--The report required by subsection (a) shall be
submitted in unclassified form, but may include a classified
annex.
(e) Appropriate Congressional Committees Defined.--In this
section, the term ``appropriate congressional committees''
means--
(1) the Committee on Armed Services and the Committee on
Banking, Housing, and Urban Affairs of the Senate; and
(2) the Committee on Armed Services and the Committee on
Financial Services of the House of Representatives.
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