To provide that the Secretary of Commerce has jurisdiction over exports of commercial satellites and related items, to provide certain procedures for exports of commercial satellites and related items, and for other purpose.

May 3, 2001

Mr. BERMAN (for himself and Mr. ROHRABACHER) introduced the following bill; which was referred to the Committee on International Relations, and in addition to the Committee on Armed Services, 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

To provide that the Secretary of Commerce has jurisdiction over exports of commercial satellites and related items, to provide certain procedures for exports of commercial satellites and related items, and for other purpose.

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 `Satellite Trade and Security Act of 2001'.

SEC. 2. EXPORT CONTROLS ON SATELLITES AND RELATED ITEMS.

Notwithstanding any other provision of law, all satellites and related items that were on the Commerce Control List of dual-use items in the Export Administration Regulations (15 C.F.R. part 730 et seq.) on October 16, 1998, and any other dual-use communications satellites and related items shall, subject to sections 3, 4, and 5, be controlled under the Export Administration Act of 1979 (in effect or as continued in effect under the International Emergency Economic Powers Act) or by the Secretary of Commerce under any successor Act to the Export Administration Act of 1979.

SEC. 3. EXPORT LICENSE PROCEDURES.

(a) REFERRAL TO OTHER DEPARTMENTS AND AGENCIES- The Secretary of Commerce (in this Act referred to as the `Secretary') shall refer to the Secretary of Defense, the Secretary of State, and the heads of other departments and agencies that the Secretary considers appropriate, all applications for licenses to export satellites and related items.

(b) REQUIRED CONSULTATIONS WITH INTELLIGENCE COMMUNITY- The Secretary, the Secretary of Defense and the Secretary of State, as appropriate, shall consult with the Director of Central Intelligence during the review of any application for a license involving the overseas launch of a commercial satellite of United States origin.

(c) TIME PERIOD FOR REFERRALS- Within 30 days after the Secretary refers an export license application under this section, each department or agency to which an export license application has been referred shall provide the Secretary with a recommendation to either approve or deny the license application. A department or agency that fails to provide a recommendation within that 30-day period shall be deemed to have no objection to the decision of the Secretary on the license application.

(d) INTERAGENCY DISPUTE RESOLUTION PROCESS- If there is no agreement among the Secretary, the Secretary of Defense, and the Secretary of State to issue or deny a license to which this section applies, then the Secretary shall refer the license application to an interagency dispute resolution process established by the President. The dispute resolution process shall be completed within a period of 60 days. A license pursuant to the application shall not be issued or denied until the Secretary, the Secretary of Defense, and the Secretary of State agree to issue or deny the license, or until the President makes a determination to issue or deny the license.

SEC. 4. NATIONAL SECURITY CONTROLS ON SATELLITE EXPORTS TO CERTAIN DESTINATIONS.

Notwithstanding any other provision of law, the following shall apply to all licenses to export satellites or related items for launch in, or by nationals of, any country that is not a member of the North Atlantic Treaty Organization or a major non-NATO ally of the United States:

(1) MANDATORY TECHNOLOGY CONTROL PLANS- All export licenses shall require a technology transfer control plan approved by the Secretary of Defense and an encryption technology transfer control plan approved by the Director of the National Security Agency. The technology transfer control plan shall be prepared by the Department of Defense and the licensee, and shall set forth security arrangements for the launch of the satellite, both before and during launch operations.

(2) MANDATORY MONITORING AND REIMBURSEMENT-

(A) MONITORING OF PROPOSED FOREIGN LAUNCH OF SATELLITES- In any case in which a license is approved for the export of a satellite or related items for launch in a foreign country, the Secretary of Defense shall monitor all aspects of the launch in order to ensure that no unauthorized transfer of technology occurs, including technical assistance and technical data. The number of persons providing security for the launch of the satellite shall be sufficient to maintain 24-hour, 7-day per week security of the satellite or related items and related launch vehicle and other sensitive technology.

(B) CONTENTS OF MONITORING- The monitoring under subparagraph (A) shall cover, but not be limited to--

(i) technical discussions and activities, including the design, development, operation, maintenance, modification, and repair of satellites, satellite components, missiles, launch facilities, launch vehicles and other related equipment;

(ii) satellite processing and launch activities, including launch preparation, satellite transportation, integration of the satellite with the launch vehicle, testing and checkout prior to launch, satellite launch, and return of equipment to the United States;

(iii) activities related to launch failure, delay, or cancellation, including post-launch failure investigations; and

(iv) all other aspects of the launch.

(C) REIMBURSEMENT- The Secretary of Defense shall require the licensee to agree to reimburse the Department of Defense for all costs associated with the provision of security for the launch vehicle or related items. All reimbursements received under this paragraph shall be credited to current appropriations available for the payment of the costs incurred in providing such services.

(3) MANDATORY STATE DEPARTMENT EXPORT LICENSES FOR POST-CRASH INVESTIGATIONS- In the event of the failure of a launch from a foreign country of a satellite of United States origin--

(A) the activities of United States persons or entities in connection with any subsequent investigation of the failure are subject to the controls established under section 38 of the Arms Export Control Act, including requirements for licenses issued by the Secretary of State for participation in that investigation;

(B) officials of the Department of Defense shall monitor all activities associated with the investigation to insure against unauthorized transfer of technical data or services; and

(C) the Secretary of Defense shall establish and implement a technology transfer control plan for the conduct of the investigation to prevent the transfer of information that could be used by the foreign country to improve its missile or space launch capabilities.

(4) MANDATORY NOTIFICATION AND CERTIFICATION- All technology transfer control plans for satellites or related items shall require any United States person involved in the export of a satellite of United States origin or related items to notify the Department of Defense in advance of all meetings and interactions with any foreign person or entity providing launch services and require the United States person to certify after the launch that it has complied with this notification requirement.

(5) MANDATORY INTELLIGENCE COMMUNITY REVIEW- The Secretary of Commerce shall provide to the Director of Central Intelligence copies of all export license applications and technical assistance agreements submitted for approval in connection with launches of satellites in foreign countries to verify the legitimacy of the stated end-user or end-users.

(6) MANDATORY SHARING OF APPROVED LICENSES AND AGREEMENTS- The Secretary of Commerce shall provide copies of all approved export licenses and technical assistance agreements associated with launches of satellites in foreign countries to the Secretary of State, the Secretary of Defense, the Secretary of Energy, and the Director of Central Intelligence.

(7) MANDATORY NOTIFICATION TO CONGRESS ON LICENSES- Upon issuing a license for the export of a satellite or related items for launch in a foreign country, the Secretary of Commerce shall so notify Congress.

(8) MANDATORY REPORTING ON MONITORING ACTIVITIES- The Secretary of Defense shall provide to Congress an annual report on the monitoring of all launches in foreign countries of satellites of United States origin.

(9) SAFEGUARDS PROGRAM- The Secretary of Defense shall continue its program to recruit, train and maintain a staff dedicated to monitoring launches in foreign countries of satellites and related items of United States origin.

SEC. 5. DEFINITIONS.

In this Act:

(1) MAJOR NON-NATO ALLY OF THE UNITED STATES- The term `major non-NATO ally of the United States' means a country designated as a major non-NATO ally for purposes of the Foreign Assistance Act of 1961.

(2) RELATED ITEMS- The term `related items' means the satellite fuel, ground support equipment, test equipment, payload adapter or interface hardware, replacement parts, and nonembedded solid propellant orbit transfer engines described in the report submitted to Congress by the Department of State on February 6, 1998, pursuant to section 38(f) of the Arms Export Control Act (22 U.S.C. 2778(f)).

(3) UNITED STATES PERSON- The term `United States person' means 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 of the President.

SEC. 6. CONFORMING AMENDMENTS.

(a) 1999 NDAA- (1) Section 1513(a) of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (22 U.S.C. 2778 note) is repealed.

(2) Section 1513(c) of that Act is amended by striking `(1) Subsection (a)' and all that follows through `(2)'.

(3) Section 1514 of that Act, and the item relating to that section in the table of contents of that Act, are repealed.

(b) 2000 NDAA- (1) Section 1404 of the National Defense Authorization Act for Fiscal Year 2000 (22 U.S.C. 2778 note) is amended--

(A) in the matter preceding paragraph (1), by striking `1514 of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (22 U.S.C. 2778 note)' and inserting `4 of the Satellite Trade and Security Act of 2001'; and

(B) in paragraph (1), by striking `1514(a)(1) of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (22 U.S.C. 2778 note)' and inserting `section 4(1) of the Satellite Trade and Security Act of 2001'.

(2) Section 1409 of that Act (22 U.S.C. 2278 note) is amended--

(A) in subsection (a)(7), in the matter preceding subparagraph (A), by striking `1514(a)(2)(A) of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 2175; 22 U.S.C. 2778 note)' and inserting `4(2)(C) of the Satellite Trade and Security Act of 2001'; and

(B) in subsection (b)(1), by striking `1514(a)(8) of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999' and inserting `4(8) of the Satellite Trade and Security Act of 2001'.

(3) Section 1410 of that Act, and the item relating to that section in the table of contents of that Act, are repealed.

(4) Section 1411 of that Act is amended--

(A) by striking subsection (a); and

(B) by redesignating subsections (b) and (c) as subsections (a) and (b), respectively.

(5) Section 1412(d) of that Act is amended by striking `Secretary of State' and inserting `Secretary of Commerce'.

(c) ADDITIONAL CONFORMING AMENDMENTS- (1) Section 1309 of the Admiral James W. Nance and Meg Donovan Foreign Relations Authorization Act, Fiscal Years 2000 and 2001 (as enacted by Public Law 106-113; 113 Stat. 1501A-460) is amended--

(A) by amending the section heading to read as follows:

`SEC. 1309. OFFICE OF DEFENSE TRADE CONTROLS.';

(B) by striking subsections (a) and (c); and

(C) in subsection (b), by striking `(b) FINANCIAL AND PERSONNEL RESOURCES- '.

(2) The table of contents of that Act is amended by striking the item relating to section 1309 and inserting the following:

`Sec. 1309. Office of Defense Trade Controls.'.

SEC. 7. EFFECTIVE DATE.

(a) IN GENERAL- This Act and the amendments made by this Act shall take effect on the date of the enactment of this Act, and shall apply to any export license application made under the Arms Export Control Act before such date of enactment which is pending on such date, and to any export license application made on or after such date.

(b) TRANSFER OF PENDING APPLICATIONS- Any export license application made under the Arms Export Control Act before the date of the enactment of this Act, to which section 2 of this Act applies and which is pending on such date of enactment, shall be transferred to the Department of Commerce upon the enactment of this Act.

END