[Congressional Record Volume 169, Number 123 (Tuesday, July 18, 2023)]
[Senate]
[Pages S3072-S3073]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 893. Mr. RUBIO submitted an amendment intended to be proposed by
him to the bill S. 2226, to authorize appropriations for fiscal year
2024 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 G of title X, add the following:
SEC. 1083. 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;
[[Page S3073]]
``(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. 1084. 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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