,,ii ,calendar ,no4 #dib #aaeth ,,congress #b;d ,session ,h4 ,r4 #ehda ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #bg1 #bjah,received2 read twice and placed on the calendar ,,an ,,act ,to modernize and strengthen the ,committee on ,foreign ,investment in the ,united ,states to more effectively guard against the risk to the national security of the ,united ,states posed by certain types of foreign investment1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,foreign ,investment ,risk ,review ,modernization ,act of #bjah4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,title ,i--,findings and ,sense of ,congress ,sec4 #aja4 ,findings and sense of ,congress4 ,title ,,ii--,definitions ,sec4 #bja4 ,definitions4 ,title ,,iii--,improvements to the ,operations of the ,committee on ,foreign ,investment in the ,united ,states ,sec4 #cja4 ,inclusion of partnership and side agreements in notice4 ,sec4 #cjb4 ,declarations relating to certain covered transactions4 ,sec4 #cjc4 ,timing for reviews and investigations4 ,sec4 #cjd4 ,submission of certifications to ,congress4 ,sec4 #cje4 ,analysis by ,director of ,national ,intelligence4 ,sec4 #cjf4 ,information sharing4 ,sec4 #cjg4 ,action by the ,president4 ,sec4 #cjh4 ,factors to be considered4 ,sec4 #cji4 ,mitigation and other actions by the ,committee to address national security risks4 ,sec4 #caj4 ,certification of notices and information4 ,sec4 #caa4 ,additional regulations4 ,title ,,iv--,modification of annual report ,sec4 #dja4 ,modification of annual report4 ,sec4 #djb4 ,report on transactions with censorship implications4 ,sec4 #djc4 ,notice to ,congress by the ,committee4 ,title ,v--,resources1 special hiring authority1 and outreach ,sec4 #eja4 ,centralization of certain ,committee functions4 ,sec4 #ejb4 ,,cfius resource needs4 ,sec4 #ejc4 ,funding4 ,title ,,vi--,miscellaneous ,,firrma provisions ,sec4 #fja4 ,conforming amendment4 ,sec4 #fjb4 ,regulatory certainty for ,united ,states businesses4 ,sec4 #fjc4 ,cooperation with ,united ,states allies and partners4 ,title ,,vii--,common ,sense ,credit ,union ,capital ,relief ,sec4 #gja4 ,delay in effective date4 ,title ,,viii--,export ,control ,reform ,sec4 #hja4 ,short title4 ,sec4 #hjb4 ,definitions4 ,subtitle ,a--,authority and administration of controls ,sec4 #haa4 ,short title4 ,sec4 #hab4 ,statement of policy4 ,sec4 #hac4 ,authority of the ,president4 ,sec4 #had4 ,additional authorities4 ,sec4 #hae4 ,administration of export controls4 ,sec4 #haf4 ,licensing4 ,sec4 #hag4 ,compliance assistance4 ,sec4 #hah4 ,requirements to identify and control emerging1 foundational1 and other critical technologies in export control regulations4 ,sec4 #hai4 ,review relating to countries subject to comprehensive ,united ,states arms embargo4 ,sec4 #hbj4 ,penalties4 ,sec4 #hba4 ,enforcement4 ,sec4 #hbb4 ,administrative procedure4 ,sec4 #hbc4 ,review of interagency dispute resolution process4 ,sec4 #hbd4 ,coordination with other agencies on commodity classification and removal of export controls4 ,sec4 #hbe4 ,annual report to ,congress4 ,sec4 #hbf4 ,repeal4 ,sec4 #hbg4 ,effect on other ,acts4 ,sec4 #hbh4 ,transition provisions4 ,subtitle ,b--,anti-,boycott ,act of #bjah ,sec4 #hca4 ,short title4 ,sec4 #hcb4 ,statement of policy4 ,sec4 #hcc4 ,foreign boycotts4 ,sec4 #hcd4 ,enforcement4 ,subtitle ,c--,sanctions ,regarding ,missile ,proliferation and ,chemical and ,biological ,weapons ,proliferation ,sec4 #hda4 ,missile proliferation control violations4 ,sec4 #hdb4 ,chemical and biological weapons proliferation sanctions4 ,subtitle ,d--,administrative authorities ,sec4 #hea4 ,under ,secretary of ,commerce for ,industry and ,security4 ,i ,findings and ,sense of ,congress #aja4 ,findings and sense of ,congress 7a7 ,findings ,the ,congress finds the following3 7#a7 ,according to a ,february #bjaf report by the ,department of ,commerce's ,international ,trade ,administration1 #ab million ,united ,states workers1 equivalent to #h4e percent of the labor force1 have jobs resulting from foreign investment1 including #c4e million jobs in the manufacturing sector alone4 7#b7 ,in #bjaf1 new foreign direct investment in ,u4,s4 manufacturing totaled #abi4d billion4 7#c7 ,the ,department of ,commerce's ,bureau of ,economic ,analysis concluded that in #bjae1 foreign-owned affiliates in the ,united ,states-- 7,a7 ,contributed #hid4e billion in value added to the ,u4,s4 economy2 7,b7 exported goods valued at #ceb4h billion1 accounting for nearly a quarter of total ,u4,s4 goods exports2 7,c7 undertook #ef4g billion in research and development2 and 7,d7 the seven largest investing countries1 all of which are ,united ,states allies - the ,united ,kingdom1 ,japan1 ,germany1 ,france1 ,canada1 ,switzerland1 and the ,netherlands - accounted for #gb4a percent of ,u4,s4 affiliate value added and over #hj percent of affiliates' ,r,d expenditures4 7#d7 ,according to the ,government ,accountability ,office 7,,gao71 from #bjaa to #bjaf1 the number of transactions reviewed by the ,committee on ,foreign ,investment in the ,united ,states 7,,cfius7 grew by #ee percent1 while agency staff assigned to the reviews increased by #aa percent4 7#e7 ,according to a ,february #bjah report 7,,gao-#ah-bdi71 ,,gao noted3 ,officials from ,treasury and other member agencies are aware of pressures on their ,,cfius staff given the current workload and have expressed concerns about possible workload increases44 ,,gao concluded3 ,without attaining an understanding of the staffing levels needed to address the current and future ,,cfius workload1 particularly if legislative changes to ,,cfius's authorities further expand its workload1 ,,cfius may be limited in its ability to fulfill its objectives and address threats to the national security of the ,united ,states44 7#f7 ,on ,march #cj1 #aied1 ,dwight ,david ,eisenhower - five-star general1 ,supreme ,allied ,commander1 and #cdth ,president of the ,united ,states - in his ,special ,message to the ,congress on ,foreign ,economic ,policy1 counseled3 ,great mutual advantages to buyer and seller1 to producer and consumer1 to investor and to the community where investment is made1 accrue from high levels of trade and investment44 ,he continued3 ,the internal strength of the ,american economy has evolved from such a system of mutual advantage4 ,in the press of other problems and in the haste to meet emergencies1 this nation - and many other nations of the free world - have all too often lost sight of this central fact44 ,president ,eisenhower concluded3 ,if we fail in our trade policy1 we may fail in all4 ,our domestic employment1 our standard of living1 our security1 and the solidarity of the free world - all are involved44 7b7 ,sense of ,congress ,it is the sense of ,congress that-- 7#a7 foreign investment provides substantial benefits to the ,united ,states1 including the promotion of economic growth1 productivity1 innovation1 competitiveness1 and job creation1 thereby enhancing ,u4,s4 national security2 7#b7 maintaining the commitment of the ,united ,states to an open investment policy encourages other countries to act similarly and helps expand foreign markets for ,u4,s4 businesses2 7#c7 at the same time1 national security risks related to foreign investment1 particularly those emanating from countries such as ,china and ,russia1 warrant an appropriate modernization of the processes and authorities of the ,committee on ,foreign ,investment in the ,united ,states2 7#d7 the ,committee on ,foreign ,investment in the ,united ,states1 as a complement to domestic and multilateral export control regimes1 plays a critical role in protecting the national security of the ,united ,states2 7#e7 in order to maintain the ,committee's effectiveness and guard against mission creep1 ,,cfius should remain narrowly focused on confronting risks related to national security2 7#f7 it is essential that the member agencies of the ,committee are adequately resourced and able to hire appropriately qualified individuals in a timely manner so that ,,cfius may promptly complete transaction reviews1 identify and respond to evolving national security risks1 and enforce mitigation agreements effectively2 7#g7 the ,president should carry out international outreach to promote the benefits of foreign investment for global economic growth1 while also assisting ,united ,states partners to address national security risks2 and 7#h7 it is the policy of the ,united ,states to enthusiastically welcome and support foreign investment1 consistent with national security considerations4 ,,ii ,definitions #bja4 ,definitions ,section #gba7;a7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7;a77 is amended-- 7#a7 by striking paragraphs 7#b71 7#c71 and 7#d7 and inserting the following3 7#b7 ,control ,the term control means the power1 direct or indirect1 whether or not exercised1 to determine1 direct1 or decide important matters affecting an entity1 subject to regulations prescribed by the ,committee4 7#c7 ,covered transaction 7,a7 ,in general ,the term covered transaction means any transaction described in subparagraph 7,b7 or 7,c7 that is proposed1 pending1 or completed on or after the date of the enactment of the ,foreign ,investment ,risk ,review ,modernization ,act of #bjah4 7,b7 ,transactions described ,a transaction described in this subparagraph is any of the following3 7i7 ,any merger1 acquisition1 takeover1 or joint venture that is proposed or pending after ,august #bc1 #aihh1 by or with any foreign person that could result in foreign control of any ,united ,states business4 7ii7 ,the purchase or lease by1 or concession to1 a foreign person of private or public real estate that-- 7,i7 is located in the ,united ,states and-- 7aa7 is1 or is in close proximity to1 a ,united ,states military installation or another facility or property of the ,united ,states ,government that is sensitive for reasons relating to national security and-- 7,,aa7 could reasonably provide the foreign person the ability to collect intelligence on activities being conducted at such an installation1 facility1 or property2 or 7,,bb7 could otherwise expose national security activities at such an installation1 facility1 or property to the risk of foreign surveillance2 or 7bb7 is itself1 or is located at and could function as part of1 an air or sea port2 7,,ii7 is not a single housing unit1 as defined by the ,bureau of the ,census2 7,,iii7 is not in an urbanized area1 as set forth by the ,bureau of the ,census in its most recent census1 except as otherwise prescribed by the ,committee in regulations in consultation with the ,secretary of ,defense2 and 7,,iv7 meets such other criteria as the ,committee prescribes by regulation1 except that such criteria may not expand the categories of real estate to which this clause applies beyond the categories described in this clause4 7iii7 ,any change in the rights that a foreign person has with respect to a ,united ,states business in which the foreign person has an investment1 if that change could result in-- 7,i7 foreign control of the ,united ,states business2 or 7,,ii7 an investment described in subparagraph 7,c74 7iv7 ,any transaction or other device entered into or employed for the purpose of evading this section1 subject to regulations prescribed by the ,committee4 7,c7 ,sensitive transactions involving countries of special concern 7i7 ,in general ,a transaction described in this subparagraph is any investment in an unaffiliated ,united ,states business by a foreign person that-- 7,i7 is-- 7aa7 a national or a government of1 or a foreign entity organized under the laws of1 a country of special concern2 or 7bb7 a foreign entity-- 7,,aa7 over which control is exercised or exercisable by a national or a government of1 or by a foreign entity organized under the laws of1 a country of special concern2 or 7,,bb7 in which the government of a country of special concern has a substantial interest2 and 7,,ii7 as a result of the transaction1 could obtain--- 7aa7 sensitive personal data1 as defined by regulations prescribed by the ,committee1 of ,united ,states citizens1 if such data may be exploited in a manner that threatens national security2 7bb7 involvement1 other than through voting of shares1 in substantive decisionmaking of the ,united ,states business regarding-- 7,,aa7 the use1 development1 acquisition1 or release of sensitive personal data of ,united ,states citizens 7as described in item 7aa772 7,,bb7 the use1 development1 acquisition1 or release of critical technologies2 or 7,,cc7 the management or operations of ,united ,states critical infrastructure1 as specified in regulations prescribed by the ,committee2 or 7cc7 material nonpublic technical information in the possession of the ,united ,states business4 7ii7 ,country of special concern ,for the purposes of this subparagraph1 the term country of special concern means-- 7,i7 any foreign country that is subject to export restrictions pursuant to section #gdd4ba of title #ae1 ,code of ,federal ,regulations2 7,,ii7 any country determined by the ,secretary of ,state to be a state sponsor of terrorism2 and 7,,iii7 any country that-- 7aa7 is subject to a ,united ,states arms embargo1 as specified in list ,d3#e of ,country ,group ,d in ,supplement ,no4 #a to part #gdj of title #ae1 ,code of ,federal ,regulations2 and 7bb7 is specified in regulations prescribed by the ,committee4 7iii7 ,investment defined ,for the purposes of this subparagraph1 the term investment means the acquisition of an equity interest1 including contingent equity interest1 as further defined in regulations prescribed by the ,committee4 7iv7 ,material nonpublic technical information defined 7,i7 ,in general ,for the purposes of this subparagraph1 and subject to regulations prescribed by the ,committee1 the term material nonpublic technical information means information that-- 7aa7 could create or reveal significant vulnerabilities in ,united ,states critical infrastructure1 as specified in regulations prescribed by the ,committee2 or 7bb7 could be essential to design1 develop1 test1 produce1 or manufacture critical technologies1 as specified in regulations prescribed by the ,committee4 7,,ii7 ,exemption for financial information ,notwithstanding subclause 7,i71 for the purposes of this subparagraph1 the term material nonpublic technical information does not include financial information regarding the performance of a ,united ,states business4 7v7 ,regulations with respect to critical infrastructure ,for purposes of this subparagraph1 regulations prescribed by the ,committee regarding ,united ,states critical infrastructure shall include criteria to limit application to critical infrastructure that is likely to be of importance to the national security of the ,united ,states4 7vi7 ,unaffiliated ,united ,states business defined ,for the purposes of this subparagraph1 with respect to an investment described under clause 7i71 and as further defined in regulations prescribed by the ,committee1 the term unaffiliated ,united ,states business means a ,united ,states business that is not subject to the same ultimate ownership of the foreign person undertaking the investment4 7vii7 ,exemption ,the ,president may exempt a country from the definition of a country of special concern under clause 7ii71 for up to one year at a time1 upon reporting to the ,committees on ,financial ,services and ,foreign ,affairs of the ,house of ,representatives and the ,committees on ,banking1 ,housing1 and ,urban ,affairs and ,foreign ,relations of the ,senate that the exemption is important to the national interest of the ,united ,states1 with a detailed explanation of the reasons therefor4 7,d7 ,exception for air carriers ,subparagraph 7,b77iii7 shall not apply to a change in the rights of a person with respect to an investment involving an air carrier1 as defined in section #djajb7;a77#b7 of title #di1 ,united ,states ,code1 that holds a certificate issued under section #daajb of that title4 7,e7 ,transfers of certain assets pursuant to bankruptcy proceedings or other defaults ,the ,committee shall prescribe regulations to clarify that the term covered transaction includes any transaction described in subparagraph 7,b7 or 7,c7 that arises pursuant to a bankruptcy proceeding or other form of default on debt4 7,f7 ,definition of close proximity ,in prescribing regulations with respect to subparagraph 7,b77ii77,i77aa71 the ,committee shall ensure that the term close proximity only applies to a distance or distances within which the purchase1 lease1 or concession of real estate could pose a national security risk in connection with a ,united ,states military installation or another facility or property of the ,united ,states ,government4 7#d7 ,foreign government-controlled transaction ,the term foreign government-controlled transaction means any covered transaction that could result in control of a ,united ,states business by-- 7,a7 a foreign government2 7,b7 a person controlled by or acting on behalf of a foreign government2 or 7,c7 a foreign company or entity of a country of special concern 7as defined under paragraph 7#c77;,c77ii77 domiciled or having its principal place of business in a county of special concern that is a non-market economy1 except to the extent the ,committee promulgates regulations exempting any such company1 entity1 or country from this presumption4 2 7#b7 by amending paragraph 7#g7 to read as follows3 7#g7 ,critical technologies ,the term critical technologies means-- 7,a7 defense articles or defense services covered by the ,united ,states ,munitions ,list 7,,usml71 which is set forth in the ,international ,traffic in ,arms ,regulations 7,,itar7 7#bb ,,cfr parts #abj-acj72 7,b7 those items specified on the ,commerce ,control ,list 7,,ccl7 set forth in ,supplement ,no4 #a to part #ggd of the ,export ,administration ,regulations 7,,ear7 7#ae ,,cfr parts #gcj-ggd7 that are controlled pursuant to multilateral regimes 7i4e4 for reasons of national security1 chemical and biological weapons proliferation1 nuclear nonproliferation1 or missile technology71 as well as those that are controlled for reasons of regional stability or surreptitious listening2 7,c7 specially designed and prepared nuclear equipment1 parts and components1 materials1 software1 and technology specified in the ,assistance to ,foreign ,atomic ,energy ,activities regulations 7#aj ,,cfr part #haj71 and nuclear facilities1 equipment1 and material specified in the ,export and ,import of ,nuclear ,equipment and ,material regulations 7#aj ,,cfr part #aaj72 7,d7 select agents and toxins specified in the ,select ,agents and ,toxins regulations 7#g ,,cfr part #cca1 #i ,,cfr part #aba1 and #db ,,cfr part #gc72 and 7,e7 emerging1 foundational1 or other critical technologies that are controlled pursuant to section #hah of the ,foreign ,investment ,risk ,review ,modernization ,act of #bjah4 2 and 7#c7 by adding at the end the following3 7#i7 ,foreign person ,the term foreign person means-- 7,a7 any foreign national1 foreign government1 or foreign entity2 or 7,b7 any entity over which control is exercised or exercisable by a foreign national1 foreign government1 or foreign entity4 7#aj7 ,substantial interest ,the term substantial interest has the meaning given to such term in regulations prescribed by the ,committee1 but does not include a voting interest of less than ten percent or ownership interests held or acquired solely for the purpose of passive investment4 7#aa7 ,united ,states business ,the term ,united ,states business means any entity1 irrespective of the nationality of the persons that control it1 engaged in interstate commerce in the ,united ,states1 but only to the extent of its activities in interstate commerce4 4 ,,iii ,improvements to the ,operations of the ,committee on ,foreign ,investment in the ,united ,states #cja4 ,inclusion of partnership and side agreements in notice ,section #gba7;b77#a77;,c7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7;b77#a77;,c77 is amended by adding at the end the following3 7iv7 ,inclusion of partnership and side agreements ,subject to regulations prescribed by the ,committee1 the ,committee may require a written notice submitted under clause 7i7 by a party to a covered transaction to include a copy of any partnership agreements1 integration agreements1 or other side agreements relating to the transaction4 4 #cjb4 ,declarations relating to certain covered transactions 7a7 ,in general ,section #gba7;b77#a77;,c7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7;b77#a77;,c771 as amended by section #cja1 is further amended by adding at the end the following3 7v7 ,declarations with respect to certain covered transactions 7,i7 ,voluntary declarations ,for the purpose of expediting the review of certain covered transactions that the ,committee determines are likely to pose limited risk1 the ,committee may prescribe regulations to permit parties to the transaction to submit a declaration with basic information regarding the transaction1 unless the parties submit a written notice under clause 7i74 7,,ii7 ,mandatory declarations 7aa7 ,in general ,the ,committee shall prescribe regulations to require the parties to a covered transaction to submit a declaration described in subclause 7,i7 with respect to the transaction if the transaction involves an investment that results in the release of critical technologies by an unaffiliated ,united ,states business 7as defined under subsection 7a77#c77;,c77vi77 to a foreign person in which a foreign government has1 directly or indirectly1 a substantial interest4 7bb7 ,submission of written notice as an alternative ,parties to a covered transaction for which a declaration is required under this clause may instead elect to submit a written notice under clause 7i74 7cc7 ,timing of submission ,with respect to the regulations described under subclause 7,i71 the ,committee may not require a declaration to be submitted more than #de days in advance of the completion of the transaction4 7,,iii7 ,penalties ,the ,committee may impose a penalty pursuant to subsection 7h77#c77;,a7 with respect to a party that fails to comply with this clause4 7,,iv7 ,committee response to declaration 7aa7 ,in general ,upon receiving a declaration under this clause with respect to a transaction1 the ,committee may1 at its discretion-- 7,,aa7 request that the parties to the transaction file a written notice under clause 7i71 provided that the ,committee includes an explanation of the reasons for the request2 7,,bb7 inform the parties to the transaction that the ,committee is not able to complete action under this section with respect to the transaction on the basis of the declaration and that the parties may file a written notice under clause 7i7 to seek written notification from the ,committee that the ,committee has completed all action under this section with respect to the transaction2 7,,cc7 initiate a unilateral review of the transaction under subparagraph 7,d72 or 7,,dd7 notify the parties in writing that the ,committee has completed all action under this section with respect to the transaction4 7bb7 ,timing ,the ,committee shall take action under item 7aa7 within #cj days of receiving a declaration under this clause4 7cc7 ,refiling of declaration ,the ,committee may not request or recommend that a declaration be withdrawn and refiled1 except to permit parties to a transaction to correct material errors or omissions4 7,v7 ,regulations ,in prescribing regulations establishing requirements for declarations submitted under this clause1 the ,committee shall ensure that such declarations are submitted as abbreviated notifications that do not generally exceed #e pages in length4 7,,vi7 ,investment defined ,for the purposes of this clause1 the term investment means the acquisition of an equity interest1 including contingent equity interest1 as further defined in regulations prescribed by the ,committee4 4 7b7 ,stipulations regarding transactions ,section #gba7;b77#a77;,c7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7;b77#a77;,c771 as amended by this section1 is further amended by adding at the end the following3 7vi7 ,stipulations regarding transactions 7,i7 ,in general ,in a written notice submitted under clause 7i7 or a declaration submitted under clause 7v7 with respect to a transaction1 a party to the transaction may-- 7aa7 stipulate that the transaction is a covered transaction2 and 7bb7 if the party stipulates that the transaction is a covered transaction under item 7aa71 stipulate that the transaction is a foreign government-controlled transaction4 7,,ii7 ,basis for stipulation ,a written notice submitted under clause 7i7 or a declaration submitted under clause 7v7 that includes a stipulation under subclause 7,i7 shall include a description of the basis for the stipulation4 4 #cjc4 ,timing for reviews and investigations ,section #gba7;b7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7;b77 is amended-- 7#a7 in paragraph 7#a77;,e71 by striking #cj-;day and inserting #de-;day2 7#b7 in paragraph 7#b71 by striking subparagraph 7,c7 and inserting the following3 7,c7 ,timing 7i7 ,in general ,except as provided in clause 7ii71 any investigation under subparagraph 7,a7 shall be completed before the end of the #de-;day period beginning on the date on which the investigation commenced4 7ii7 ,extension for extraordinary circumstances 7,i7 ,in general ,in extraordinary circumstances 7as defined by the ,committee in regulations71 the chairperson may1 at the request of the head of the lead agency1 extend an investigation under subparagraph 7,a7 for not more than one #ae-;day period4 7,,ii7 ,nondelegation ,the authority of the chairperson and the head of the lead agency referred to in subclause 7,i7 may not be delegated to any person other than the ,deputy ,secretary of the ,treasury or the deputy head 7or equivalent thereof7 of the lead agency1 as the case may be4 7,,iii7 ,notification to parties ,if the ,committee extends the deadline under subclause 7,i7 with respect to a covered transaction1 the ,committee shall notify the parties to the transaction of the extension4 2 and 7#c7 by adding at the end the following3 7#h7 ,tolling of deadlines during lapse in appropriations ,any deadline or time limitation under this subsection shall be tolled during a lapse in appropriations4 4 #cjd4 ,submission of certifications to ,congress ,section #gba7;b77#c77;,c7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7;b77#c77;,c77 is amended-- 7#a7 in clause 7i71 by amending subclause 7,,ii7 to read as follows3 7,,ii7 a certification that all relevant national security factors1 including factors enumerated in subsection 7f71 have received full consideration4 2 and 7#b7 by adding at the end the following3 7v7 ,authority to consolidate documents ,instead of transmitting a separate certified notice or certified report under subparagraph 7,a7 or 7,b7 with respect to each covered transaction1 the ,committee may1 on a monthly basis1 transmit such notices and reports in a consolidated document to the ,members of ,congress specified in clause 7iii74 4 #cje4 ,analysis by ,director of ,national ,intelligence ,section #gba7;b77#d7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7;b77#d77 is amended-- 7#a7 by striking subparagraph 7,a7 and inserting the following3 7,a7 ,analysis required 7i7 ,in general ,the ,director of ,national ,intelligence shall expeditiously carry out a thorough analysis of any threat to the national security of the ,united ,states posed by any covered transaction1 which shall include the identification of any recognized gaps in the collection of intelligence relevant to the analysis4 7ii7 ,views of intelligence agencies ,the ,director shall seek and incorporate into the analysis required by clause 7i7 the views of all affected or appropriate intelligence agencies with respect to the transaction4 7iii7 ,updates ,at the request of the lead agency1 the ,director shall update the analysis conducted under clause 7i7 with respect to a covered transaction with respect to which an agreement was entered into under subsection 7l77#c77;,a74 7iv7 ,independence and objectivity ,the ,committee shall ensure that its processes under this section preserve the ability of the ,director to conduct an analysis under clause 7i7 that is independent1 objective1 and consistent with all applicable directives1 policies1 and analytic tradecraft standards of the intelligence community4 4 7#b7 by redesignating subparagraphs 7,b71 7,c71 and 7,d7 as subparagraphs 7,c71 7,d71 and 7,e71 respectively2 7#c7 by inserting after subparagraph 7,a7 the following3 7,b7 ,basic threat information 7i7 ,in general ,the ,director of ,national ,intelligence may provide the ,committee with basic information regarding any threat to the national security of the ,united ,states posed by a covered transaction described in clause 7ii7 instead of conducting the analysis required by subparagraph 7,a74 7ii7 ,covered transaction described ,a covered transaction is described in this clause if-- 7,i7 the transaction is described in subsection 7a77#c77;,b77ii72 7,,ii7 the ,director of ,national ,intelligence has completed an analysis pursuant to subparagraph 7,a7 involving each foreign person that is a party to the transaction during the #ab months preceding the review or investigation of the transaction under this section2 or 7,,iii7 the transaction otherwise meets criteria agreed upon by the ,committee and the ,director of ,national ,intelligence for purposes of this subparagraph4 2 7#d7 in subparagraph 7,c71 as so redesignated1 by striking #bj days and inserting #cj days2 and 7#e7 by adding at the end the following3 7,f7 ,assessment of operational impact ,the ,director may provide to the ,committee an assessment1 separate from the analyses under subparagraphs 7,a7 and 7,b71 of any operational impact of a covered transaction on the intelligence community and a description of any actions that have been or will be taken to mitigate any such impact4 7,g7 ,submission to ,congress ,the ,committee shall include the analysis required by subparagraph 7,a7 with respect to a covered transaction in the report required under subsection 7m77#a71 subject to the requirements of subsection 7m77#e74 4 #cjf4 ,information sharing ,section #gba7;c7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7;c77 is amended-- 7#a7 by striking ,any information and inserting the following3 7#a7 ,in general ,any information 2 and 7#b7 by adding at the end the following3 7#b7 ,exception ,paragraph 7#a7 shall not prohibit the disclosure of information or documentary material that the party filing such information or material consented to be disclosed to third parties4 4 #cjg4 ,action by the ,president 7a7 ,in general ,section #gba7;d77#b7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7;d77#b77 is amended by striking not later than #ae days and all that follows and inserting the following3 with respect to a covered transaction not later than #ae days after the earlier of-- 7,a7 the date on which the investigation of the transaction under subsection 7b7 is completed2 or 7,b7 the date on which the ,committee otherwise refers the transaction to the ,president under subsection 7l77#d74 4 7b7 ,civil penalties ,section #gba7;h77#c77;,a7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7;h77#c77;,a77 is amended by striking including any mitigation and all that follows through subsection 7l7 and inserting including any mitigation agreement entered into1 conditions imposed1 or order issued pursuant to this section4 #cjh4 ,factors to be considered ,section #gba7;f7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7;f77 is amended-- 7#a7 in paragraph 7#c71 by striking the comma at the end and inserting the following3 1 including the availability of human resources1 products1 technology1 materials1 and other supplies and services22 7#b7 in paragraph 7#d71 by striking proposed or pending2 7#c7 by striking paragraph 7#e72 7#d7 by redesignating paragraphs 7#f71 7#g71 7#h71 7#i71 7#aj71 and 7#aa7 as paragraphs 7#e71 7#f71 7#g71 7#h71 7#i71 and 7#af71 respectively2 7#e7 in paragraph 7#i71 as so redesignated1 by striking and at the end2 7#f7 by inserting after paragraph 7#i71 as so redesignated1 the following3 7#aj7 the degree to which the covered transaction is likely to threaten the ability of the ,united ,states ,government to acquire or maintain the equipment and systems that are necessary for defense1 intelligence1 or other national security functions2 7#aa7 the potential national security-related effects of the cumulative control of any one type of critical infrastructure1 energy asset1 material1 or critical technology by a foreign person2 7#ab7 whether any foreign person that would acquire control of a ,united ,states business as a result of the covered transaction has a history of-- 7,a7 complying with ,united ,states laws and regulations and prior adherence1 if applicable1 to any agreement or condition1 as described under 7l77#a77;,a72 and 7,b7 adhering to contracts or other agreements with entities of the ,united ,states ,government2 7#ac7 the extent to which the covered transaction is likely to release1 either directly or indirectly1 sensitive personal data of ,united ,states citizens to a foreign person that may exploit that information in a manner that threatens national security2 7#ad7 whether the covered transaction is likely to exacerbate cybersecurity vulnerabilities or is likely to result in a foreign government gaining a significant new capability to engage in malicious cyber-enabled activities against the ,united ,states1 including such activities designed to affect the outcome of any election for ,federal office2 7#ae7 whether the covered transaction is likely to expose any information regarding sensitive national security matters or sensitive procedures or operations of a ,federal law enforcement agency with national security responsibilities to a foreign person not authorized to receive that information2 and 2 and 7#g7 by adding at the end the following flush-left text3 ,for purposes of this subsection1 the phrase the availability of human resources shall be construed to consider potential losses of such availability resulting from reductions in the employment of ,united ,states persons whose knowledge or skills are critical to national security1 including the continued production in the ,united ,states of items that are likely to be acquired by the ,department of ,defense or other ,federal departments or agencies for the advancement of the national security of the ,united ,states44 #cji4 ,mitigation and other actions by the ,committee to address national security risks ,section #gba7l7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7l77 is amended-- 7#a7 in paragraph 7#a7-- 7,a7 in subparagraph 7,a7-- 7i7 in the heading1 by striking ,in general and inserting ,agreements and conditions2 7ii7 by striking ,the ,committee and inserting the following3 7i7 ,in general ,the ,committee 2 7iii7 by adding at the end the following3 7ii7 ,abandonment of transactions ,if a party to a covered transaction has voluntarily chosen to abandon the transaction1 the ,committee or lead agency1 as the case may be1 may negotiate1 enter into or impose1 and enforce any agreement or condition with any party to the covered transaction for purposes of effectuating such abandonment and mitigating any threat to the national security of the ,united ,states that arises as a result of the covered transaction4 7iii7 ,agreements and conditions relating to completed transactions ,the ,committee or lead agency1 as the case may be1 may negotiate1 enter into or impose1 and enforce any agreement or condition with any party to a completed covered transaction in order to mitigate any interim threat to the national security of the ,united ,states that may arise as a result of the covered transaction until such time that the ,committee has completed action pursuant to subsection 7b7 or the ,president has taken action pursuant to subsection 7d7 with respect to the transaction4 2 7,b7 by amending subparagraph 7,b7 to read as follows3 7,b7 ,treatment of outdated agreements or conditions ,the chairperson and the head of any applicable lead agency shall periodically review the appropriateness of an agreement or condition described under subparagraph 7,a7 and terminate1 phase out1 or otherwise amend any agreement or condition if a threat no longer requires mitigation through the agreement or condition4 2 and 7,c7 by adding at the end the following3 7,c7 ,limitations ,an agreement may not be entered into or condition imposed under subparagraph 7,a7 with respect to a covered transaction unless the ,committee determines that the agreement or condition resolves the national security concerns posed by the transaction1 taking into consideration whether the agreement or condition is reasonably calculated to-- 7i7 be effective2 7ii7 allow for compliance with the terms of the agreement or condition in an appropriately verifiable way2 and 7iii7 enable effective monitoring of compliance with and enforcement of the terms of the agreement or condition4 7,d7 ,jurisdiction ,the provisions of section #gjf7;b7 shall apply to any mitigation agreement entered into or condition imposed under subparagraph 7,a74 2 and 7#b7 by adding at the end the following3 7#d7 ,referral to ,president ,the ,committee may1 at any time during the review or investigation of a covered transaction under subsection 7b71 complete the action of the ,committee with respect to the transaction and refer the transaction to the ,president for action pursuant to subsection 7d74 7#e7 ,risk-based analysis required 7,a7 ,in general ,any determination of the ,committee to refer a covered transaction to the ,president under paragraph 7#d71 to suspend a covered transaction under paragraph 7#f71 or to negotiate1 enter into1 impose1 or enforce any agreement or condition under paragraph 7#a77;,a7 with respect to a covered transaction1 shall be based on a risk-based analysis1 conducted by the ,committee1 of the effects on the national security of the ,united ,states of the covered transaction1 which shall include-- 7i7 an assessment of the threat1 vulnerabilities1 and consequences to national security resulting from the transaction1 as these terms are defined or clarified in guidance and regulations issued by the ,committee2 and 7ii7 an identification of each relevant factor described in subsection 7f7 that the transaction may substantially implicate4 7,b7 ,compliance plans 7i7 ,in general ,in the case of a covered transaction with respect to which an agreement or condition is entered into under paragraph 7#a77;,a71 the ,committee or lead agency1 as the case may be1 shall formulate1 adhere to1 and keep updated a plan for monitoring compliance with the agreement or condition4 7ii7 ,elements ,each plan required by clause 7i7 with respect to an agreement or condition entered into under paragraph 7#a77;,a7 shall include an explanation of-- 7,i7 which member of the ,committee will have primary responsibility for monitoring compliance with the agreement or condition2 7,,ii7 how compliance with the agreement or condition will be monitored2 7,,iii7 how frequently compliance reviews will be conducted2 7,,iv7 whether an independent entity will be utilized under subparagraph 7,d7 to conduct compliance reviews2 and 7,v7 what actions will be taken if the parties fail to cooperate regarding monitoring compliance with the agreement or condition4 7,c7 ,effect of lack of compliance ,if1 at any time after a mitigation agreement or condition is entered into or imposed under paragraph 7#a77;,a71 the ,committee or lead agency1 as the case may be1 determines that a party or parties to the agreement or condition are not in compliance with the terms of the agreement or condition1 the ,committee or lead agency may1 in addition to the authority of the ,committee to impose penalties pursuant to subsection 7h77#c77;,a7 and to unilaterally initiate a review of any covered transaction under subsection 7b77#a77;,d77iii77,i7-- 7i7 negotiate a plan of action for the party or parties to remediate the lack of compliance1 with failure to abide by the plan or otherwise remediate the lack of compliance serving as the basis for the ,committee to find a material breach of the agreement or condition2 7ii7 require that the party or parties submit any covered transaction initiated after the date of the determination of noncompliance and before the date that is #e years after the date of the determination to the ,committee for review under subsection 7b72 or 7iii7 seek injunctive relief4 7,d7 ,use of independent entities to monitor compliance ,if the parties to an agreement or condition entered into under paragraph 7#a77;,a7 enter into a contract with an independent entity from outside the ,united ,states ,government for the purpose of monitoring compliance with the agreement or condition1 the ,committee shall take such action as is necessary to prevent any significant conflict of interest from arising with respect to the entity and the parties to the transaction4 7,e7 ,successors and assigns ,any agreement or condition entered or imposed under paragraph 7#a77;,a7 shall be considered binding on all successors and assigns1 unless and until the agreement or condition terminates on its own terms or is otherwise terminated by the ,committee in the ,committee's sole discretion4 7,f7 ,additional compliance measures ,subject to subparagraphs 7,a7 through 7,d71 the ,committee shall develop and agree upon methods for evaluating compliance with any agreement entered into or condition imposed with respect to a covered transaction that will allow the ,committee to adequately ensure compliance without unnecessarily diverting ,committee resources from assessing any new covered transaction for which a written notice under clause 7i7 of subsection 7b77#a77;,c7 has been filed or for which a declaration has been submitted under clause 7v7 of subsection 7b77#a77;,c71 and if necessary1 reaching a mitigation agreement with or imposing a condition on a party to such covered transaction or any covered transaction for which a review has been reopened for any reason4 7#f7 ,suspension of transactions ,the ,committee1 acting through the chairperson1 may suspend a proposed or pending covered transaction that may pose a risk to the national security of the ,united ,states for such time as the covered transaction is under review or investigation under subsection 7b74 4 #caj4 ,certification of notices and information ,section #gba7n7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7n77 is amended-- 7#a7 by redesignating paragraphs 7#a7 and 7#b7 as subparagraphs 7,a7 and 7,b71 respectively1 and by moving such subparagraphs1 as so redesignated1 #b ems to the right2 7#b7 by striking ,each notice and inserting the following3 7#a7 ,in general ,each notice 2 and 7#c7 by adding at the end the following3 7#b7 ,effect of failure to submit ,the ,committee may not complete a review under this section of a covered transaction and may recommend to the ,president that the ,president suspend or prohibit the transaction or require divestment under subsection 7d7 if the ,committee determines that a party to the transaction has-- 7,a7 failed to submit a statement required by paragraph 7#a72 or 7,b7 included false or misleading information in a notice or information described in paragraph 7#a7 or omitted material information from such notice or information4 7#c7 ,applicability of law on fraud and false statements ,the ,committee shall prescribe regulations expressly providing for the application of section #ajja of title #ah1 ,united ,states ,code1 to all information provided to the ,committee under this section by any party to a covered transaction4 4 #caa4 ,additional regulations ,section #gba7;h77#c7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7;h77#c77 is amended-- 7#a7 in subparagraph 7,b77ii71 by striking and at the end2 7#b7 in subparagraph 7,c71 by striking the period at the end and inserting 2 and2 and 7#c7 by adding at the end the following3 7,d7 provide that in connection with any national security review or investigation of a covered transaction conducted by the ,committee1 the ,committee should-- 7i7 consider the factors described in paragraphs 7#b7 and 7#c7 of subsection 7f72 and 7ii7 as appropriate1 require parties to provide the information necessary to consider such factors4 4 ,,iv ,modification of annual report #dja4 ,modification of annual report ,section #gba7m7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7m77 is amended-- 7#a7 in paragraph 7#b71 by amending subparagraph 7,a7 to read as follows3 7,a7 ,a list of all notices filed and all reviews or investigations of covered transactions completed during the period1 with-- 7i7 a description of the outcome of each review or investigation1 including whether an agreement was entered into or condition was imposed under subsection 7l77#c77;,a7 with respect to the transaction being reviewed or investigated1 and whether the ,president took any action under this section with respect to that transaction2 7ii7 the nature of the business activities or products of the ,united ,states business with which the transaction was entered into or intended to be entered into2 7iii7 information about any withdrawal from the process2 and 7iv7 the mean and median number of days required to complete reviews and investigations during the period4 2 7#b7 in paragraph 7#c7-- 7,a7 by striking critical technologies and all that follows through ,in order to assist and inserting critical technologies4--,in order to assist2 7,b7 by striking subparagraph 7,b72 and 7,c7 by redesignating clauses 7i7 and 7ii7 as subparagraphs 7,a7 and 7,b71 respectively1 and by moving such subparagraphs1 as so redesignated1 #b ems to the left2 and 7#c7 by adding at the end the following3 7#d7 ,additional contents of report ,each annual report required under paragraph 7#a7 shall contain the following additional information3 7,a7 ,statistics on compliance reviews conducted and actions taken by the ,committee under subsection 7l77#f71 including subparagraph 7,d7 of that subsection 7l77#f71 during that period and a description of any actions taken by the ,committee to impose penalties or initiate a unilateral review pursuant to subsection 7b77#a77;,d77iii77,i74 7,b7 ,cumulative and trend information on the number of declarations filed under subsection 7b77#a77;,c77v71 the actions taken by the ,committee in response to declarations1 the business sectors involved in the declarations which have been made1 the countries involved in such declarations1 and the mean and median number of days required to respond to such declarations1 as described in subsection 7b77#a77;,c77v77,,iv71 during that period 4 7,c7 ,the number of new hires made since the preceding report through the authorities described under subsection 7q71 along with summary statistics1 position titles1 and associated pay grades for such hires and a summary of such hires' responsibilities in administering this section4 7#e7 ,classification2 availability of report 7,a7 ,classification ,all appropriate portions of the annual report required by paragraph 7#a7 may be classified4 7,b7 ,public availability of unclassified version ,an unclassified version of the report required by paragraph 7#a71 as appropriate and consistent with safeguarding national security and privacy1 shall be made available to the public4 ,information regarding trade secrets or business confidential information may be included in the classified version and may not be made available to the public in the unclassified version4 7,c7 ,exceptions to ,freedom of ,information ,act ,the exceptions to subsection 7a7 of section #eeb of title #e1 ,united ,states ,code1 provided for under subsection 7b7 of that section shall apply with respect to the report required by paragraph 7#a74 4 #djb4 ,report on transactions with censorship implications ,not later than one year from the date of enactment of this ,act1 the ,committee on ,foreign ,investment in the ,united ,states shall issue a report to the ,congress1 appropriate portions of which may be classified1 on investments by foreign persons into the entertainment and information sectors of the ,united ,states1 which shall include analysis of the extent to which such investments have resulted in or could result in direct or indirect censorship1 including self-censorship1 within the ,united ,states4 #djc4 ,notice to ,congress by the ,committee ,section #gba of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe71 as amended by section #ejc1 is further amended by adding at the end the following3 7v7 ,notice to ,congress by the ,committee ,if the ,committee recommends that the ,president suspend or prohibit a covered transaction because such transaction threatens to impair the national security of the ,united ,states1 the ,committee shall1 in the classified version of the annual report described under subsection 7m71 notify ,congress of each such recommendation and1 upon request1 provide a classified briefing on the recommendation4 4 ,v ,resources1 special hiring authority1 and outreach #eja4 ,centralization of certain ,committee functions ,section #gba of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7 is amended by adding at the end the following3 7o7 ,centralization of certain committee functions 7#a7 ,in general ,the chairperson1 in consultation with the ,committee1 may centralize certain functions of the ,committee within the ,department of the ,treasury for the purpose of enhancing interagency coordination and collaboration in carrying out the functions of the ,committee under this section4 7#b7 ,rule of construction ,nothing in this subsection shall be construed as limiting the authority of any department or agency represented on the ,committee to represent its own interests before the ,committee4 4 #ejb4 ,,cfius resource needs 7a7 ,unified budget request ,section #gba of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe71 as amended by section #eja1 is further amended by adding at the end the following3 7p7 ,unified budget request2 annual spending plan 7#a7 ,unified budget request 7,a7 ,in general ,the ,president may include1 in the budget of the ,department of the ,treasury for a fiscal year 7as submitted to ,congress with the budget of the ,president under section #aaje7;a7 of title #ca1 ,united ,states ,code71 a unified request for funding of all operations under this section conducted by all of the departments and agencies represented on the ,committee4 7,b7 ,form of budget request ,a unified request under subparagraph 7,a7 shall be detailed and include the amounts and staffing levels requested for each department or agency represented on the ,committee to carry out the functions of that department or agency under this section4 7#b7 ,annual spending plan ,not later than #ij days following the date of enactment of this subsection1 and annually thereafter1 the chairperson of the ,committee shall transmit to the ,committees on ,appropriations and ,financial ,services of the ,house of ,representatives and the ,committees on ,appropriations and ,banking1 ,housing1 and ,urban ,affairs of the ,senate a detailed spending plan to expeditiously meet the requirements of subsections 7b71 7l71 and 7m71 including estimated expenditures and staffing levels required by operations of the ,committee for not less than the following fiscal year at each of the ,committee's member agencies4 7#c7 ,waiver ,the chairperson may waive the reporting requirement under paragraph 7#b7 with respect to a fiscal year for which a unified budget request described under paragraph 7#a7 has been submitted4 4 7b7 ,special hiring authority ,section #gba of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe71 as amended by subsection 7a71 is further amended by adding at the end the following3 7q7 ,special hiring authority ,the heads of the departments and agencies represented on the ,committee may appoint1 without regard to the provisions of sections #ccji through #ccah of title #e1 ,united ,states ,code1 candidates directly to positions in the competitive service 7as defined in section #bajb of that title7 in their respective departments and agencies to administer this section4 4 7c7 ,testimony required ,section #gba of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe71 as amended by subsection 7d71 is further amended by adding at the end the following3 7r7 ,testimony 7#a7 ,in general ,after submitting the unified budget request described under subsection 7p77#a71 or the spending plan described under subsection 7p77#b71 as the case may be1 but not later than ,march #ca of each year1 the chairperson1 or the chairperson's designee1 shall appear before the ,committee on ,financial ,services of the ,house of ,representatives and present testimony on-- 7,a7 anticipated resources necessary for operations of the ,committee in the following fiscal year at each of the ,committee's member agencies2 7,b7 the adequacy of appropriations for the ,committee in the current and the previous fiscal year to-- 7i7 ensure that thorough reviews and investigations are completed as expeditiously as possible2 7ii7 monitor and enforce mitigation agreements2 and 7iii7 identify covered transactions for which a notice under clause 7i7 of subsection 7b77#a77;,c7 or a declaration under clause 7v7 of subsection 7b77#a77;,c7 was not submitted to the ,committee2 7,c7 management efforts to strengthen the ability of the ,committee to meet the requirements of this section2 and 7,d7 activities of the ,committee undertaken in order to-- 7i7 educate the business community1 with a particular focus on the technology sector and other sectors of importance to national security1 on the goals and operations of the ,committee2 7ii7 disseminate to the governments of ,united ,states allies best practices of the ,committee that-- 7,i7 strengthen national security reviews of relevant investment transactions2 and 7,,ii7 expedite such reviews when appropriate2 and 7iii7 promote openness to foreign investment1 consistent with national security considerations4 7#b7 ,sunset ,this subsection shall have no force or effect on the date that is #g years following the date of enactment of the ,foreign ,investment ,risk ,review ,modernization ,act of #bjah4 4 #ejc4 ,funding ,section #gba of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe71 as amended by section #fjc1 is further amended by adding at the end the following3 7u7 ,funding 7#a7 ,establishment of fund ,there is established in the ,treasury of the ,united ,states a fund1 to be known as the ,committee on ,foreign ,investment in the ,united ,states ,fund 7in this subsection referred to as the ,fund71 to be administered by the chairperson4 7#b7 ,authorization of appropriations for the committee ,there are authorized to be appropriated to the ,fund for each of fiscal years #bjai through #bjbc #bj1jjj1jjj to perform the functions of the ,committee4 7#c7 ,filing fees 7,a7 ,in general ,the ,committee may assess and collect a fee in an amount determined by the ,committee in regulations1 without regard to section #igja of title #ca1 ,united ,states ,code1 and subject to subparagraph 7,b71 with respect to each covered transaction for which a written notice is submitted to the ,committee under subsection 7b77#a77;,c77i7 or a declaration is submitted to the ,committee under subsection 7b77#a77;,c77v74 7,b7 ,determination of amount of fee 7i7 ,in general ,the amount of the fee to be assessed under subparagraph 7,a7 with respect to a covered transaction-- 7,i7 may not exceed an amount equal to the lesser of-- 7aa7 #a percent of the value of the transaction2 or 7bb7 #cjj1jjj1 as such amount is adjusted annually for inflation pursuant to regulations prescribed by the ,committee2 and 7,,ii7 shall be determined by the ,committee after taking into consideration-- 7aa7 the effect of the fee on small business concerns 7as defined in section #c of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb772 7bb7 the expenses of the ,committee associated with conducting activities under this section2 7cc7 the effect of the fee on foreign investment2 7dd7 the unified budget request or annual spending plan1 as appropriate1 described in section #ejb of the ,foreign ,investment ,risk ,review ,modernization ,act of #bjah2 and 7ee7 such other matters as the ,committee considers appropriate4 7ii7 ,updates ,the ,committee shall periodically reconsider and adjust the amount of the fee to be assessed under subparagraph 7,a7 with respect to a covered transaction to ensure that the amount of the fee remains appropriate4 7,c7 ,deposit and availability of fees ,notwithstanding section #ccjb of title #ca1 ,united ,states ,code1 fees collected under subparagraph 7,a7 shall-- 7i7 be deposited into the ,fund for use in carrying out activities under this section2 7ii7 to the extent and in the amounts provided in advance in appropriations ,acts1 be available to the chairperson2 7iii7 remain available until expended2 and 7iv7 be in addition to any appropriations made available to the members of the ,committee4 7#d7 ,transfer of funds ,to the extent provided in advance in appropriations ,acts1 the chairperson may transfer any amounts in the ,fund to any other department or agency represented on the ,committee for the purpose of addressing emerging needs in carrying out activities under this section4 ,amounts so transferred shall be in addition to any other amounts available to that department or agency for that purpose4 4 ,,vi ,miscellaneous ,,firrma provisions #fja4 ,conforming amendment ,section #gba7;d77#d77;,a7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7;d77#d77;,a77 is amended by striking the foreign interest exercising control and inserting a foreign person that would acquire an interest in a ,united ,states business or its assets as a result of the covered transaction4 #fjb4 ,regulatory certainty for ,united ,states businesses ,section #gba of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe71 as amended by section #ejb1 is further amended by adding at the end the following3 7s7 ,regulatory certainty for ,united ,states businesses 7#a7 ,in general ,with respect to mitigating a national security risk that results from a foreign person's investment in1 or joint venture with1 a ,united ,states business1 a member agency of the ,committee may not prescribe or implement regulations to require divestment by1 or of1 the ,united ,states business1 unless-- 7,a7 the regulations are prescribed under this section or pursuant to authorities of the ,president under the ,international ,emergency ,economic ,powers ,act2 or 7,b7 the ,president reports to ,congress in writing that the regulations-- 7i7 are1 wherever applicable1 consistent with regulations prescribed under this section1 including any such regulations pertaining to-- 7,i7 foreign control or influence over a ,united ,states business2 7,,ii7 the identification of emerging1 foundational1 or other critical technologies2 and 7,,iii7 confidentiality requirements with respect to information and documentary material regarding ,united ,states businesses2 and 7ii7 in the case of regulations prescribed or finalized following the effective date of this subsection1 were prescribed in consultation with the chairperson of the ,committee and with the head of any member agency determined by the ,president to be affected by the regulations4 7#b7 ,exception for procurement authority ,paragraph 7#a7 shall not apply to an action by a member agency if the head of the member agency determines that such action is necessary for procurement purposes of the agency or for matters related to the management of the agency's supply chain4 4 #fjc4 ,cooperation with ,united ,states allies and partners ,section #gba of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe71 as amended by section #fjb1 is further amended by adding at the end the following3 7t7 ,cooperation with ,united ,states allies and partners 7#a7 ,in general ,the chairperson1 in consultation with other members of the ,committee1 is authorized to lead a formal process for the regular exchange of information with governments of countries that are allies or partners of the ,united ,states1 in the discretion of the chairperson1 to protect the national security of the ,united ,states and those countries4 7#b7 ,requirements ,the process described under paragraph 7#a7 shall1 in the discretion of the chairperson-- 7,a7 be designed to facilitate the harmonization of action with respect to trends in investment and technology that could pose risks to the national security of the ,united ,states and countries that are allies or partners of the ,united ,states2 7,b7 provide for the sharing of information with respect to specific technologies and entities acquiring such technologies as appropriate to ensure national security2 and 7,c7 include consultations and meetings with representatives of the governments of such countries on a recurring basis4 4 ,,vii ,common ,sense ,credit ,union ,capital ,relief #gja4 ,delay in effective date ,notwithstanding any effective date set forth in the rule issued by the ,national ,credit ,union ,administration titled ,risk-,based ,capital 7published at #hj ,fed4 ,reg4 #fffbf 7,october #bi1 #bjae771 such final rule shall take effect on ,january #a1 #bjba4 ,,viii ,export ,control ,reform #hja4 ,short title ,this title may be cited as the ,export ,control ,reform ,act of #bjah4 #hjb4 ,definitions ,in this title3 7#a7 ,controlled ,the term controlled refers to an item subject to the jurisdiction of the ,united ,states under subtitle ,a4 7#b7 ,dual-use ,the term dual-use1 with respect to an item1 means the item has civilian applications and military1 terrorism1 weapons of mass destruction1 or law-enforcement-related applications4 7#c7 ,export ,the term export1 with respect to an item subject to controls under subtitle ,a1 includes-- 7,a7 the shipment or transmission of the item out of the ,united ,states1 including the sending or taking of the item out of the ,united ,states1 in any manner2 and 7,b7 the release or transfer of technology or source code relating to the item to a foreign person in the ,united ,states4 7#d7 ,export administration regulations ,the term ,export ,administration ,regulations means-- 7,a7 the ,export ,administration ,regulations as promulgated1 maintained1 and amended under the authority of the ,international ,emergency ,economic ,powers ,act and codified1 as of the date of the enactment of this ,act1 in subchapter ,c of chapter ,,vii of title #ae1 ,code of ,federal ,regulations2 or 7,b7 regulations that are promulgated1 maintained1 and amended under the authority of subtitle ,a on or after the date of the enactment of this ,act4 7#e7 ,foreign person ,the term foreign person means-- 7,a7 any natural person who is not a lawful permanent resident of the ,united ,states1 citizen of the ,united ,states1 or any other protected individual 7as such term is defined in section #bgd;,b7a77#c7 of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #acbd;b7a77#c772 7,b7 any corporation1 business association1 partnership1 trust1 society or any other entity or group that is not incorporated in the ,united ,states or organized to do business in the ,united ,states1 as well as international organizations1 foreign governments and any agency or subdivision of a foreign government 7e4g41 diplomatic mission74 7#f7 ,item ,the term item means a commodity1 software1 or technology4 7#g7 ,person ,the term person means-- 7,a7 a natural person2 7,b7 a corporation1 business association1 partnership1 society1 trust1 financial institution1 insurer1 underwriter1 guarantor1 and any other business organization1 any other nongovernmental entity1 organization1 or group1 or any government or agency thereof2 and 7,c7 any successor to any entity described in subparagraph 7,b74 7#h7 ,reexport ,the term reexport1 with respect to an item subject to controls under subtitle ,a1 includes-- 7,a7 the shipment or transmission of the item from a foreign country to another foreign country1 including the sending or taking of the item from the foreign country to the other foreign country1 in any manner2 and 7,b7 the release or transfer of technology or source code relating to the item to a foreign person outside the ,united ,states4 7#i7 ,secretary ,except as otherwise provided1 the term ,secretary means the ,secretary of ,commerce4 7#aj7 ,technology ,the term technology includes foundational information and information and know-how necessary for the development 7at all stages prior to serial production71 production1 use1 operation1 installation1 maintenance1 repair1 overhaul or refurbishing of an item4 7#aa7 ,transfer ,the term transfer1 with respect to an item subject to controls under title ,i1 means a change in the end-use or end user of the item within the same foreign country4 7#ab7 ,united ,states ,the term ,united ,states means the several ,states1 the ,district of ,columbia1 the ,commonwealth of ,puerto ,rico1 the ,commonwealth of the ,northern ,mariana ,islands1 ,american ,samoa1 ,guam1 the ,united ,states ,virgin ,islands1 and any other territory or possession of the ,united ,states4 7#ac7 ,united ,states person ,the term ,united ,states person means-- 7,a7 for purposes of subtitles ,a and ,c-- 7i7 any individual who is a citizen or national of the ,united ,states or who is an individual described in subparagraph 7,b7 of section #bgd;,b7a77#c7 of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #acbd;b7a77#c772 7ii7 a corporation or other legal entity which is organized under the laws of the ,united ,states1 any ,state or territory thereof1 or the ,district of ,columbia2 and 7iii7 any person in the ,united ,states2 and 7,b7 for purposes of subtitle ,b1 any ,united ,states resident or national 7other than an individual resident outside the ,united ,states and employed by other than a ,united ,states person71 any domestic concern 7including any permanent domestic establishment of any foreign concern7 and any foreign subsidiary or affiliate 7including any permanent foreign establishment7 of any domestic concern which is controlled in fact by such domestic concern1 as determined under regulations by the ,secretary4 7#ad7 ,weapons of mass destruction ,the term weapons of mass destruction means nuclear1 radiological1 chemical1 and biological weapons and delivery systems for such weapons4 ,a ,authority and administration of controls #haa4 ,short title ,this subtitle may be cited as the ,export ,controls ,act of #bjah4 #hab4 ,statement of policy ,the following is the policy of the ,united ,states3 7#a7 ,to use export controls only after full consideration of the impact on the economy of the ,united ,states and only to the extent necessary-- 7,a7 to restrict the exports of items which would make a significant contribution to the military potential of any other country or combination of countries which would prove detrimental to the national security of the ,united ,states2 and 7,b7 to restrict the export of items if necessary to further significantly the foreign policy of the ,united ,states or to fulfill its declared international obligations4 7#b7 ,the national security and foreign policy of the ,united ,states require that the export1 reexport1 and transfer of items1 and specific activities of ,united ,states persons1 wherever located1 be controlled for the following purposes3 7,a7 ,to control the release of items for use in-- 7i7 the proliferation of weapons of mass destruction or of conventional weapons2 7ii7 the acquisition of destabilizing numbers or types of conventional weapons2 7iii7 acts of terrorism2 7iv7 military programs that could pose a threat to the security of the ,united ,states or its allies2 or 7v7 activities undertaken specifically to cause significant interference with or disruption of critical infrastructure4 7,b7 ,to preserve the qualitative military superiority of the ,united ,states4 7,c7 ,to strengthen the ,united ,states industrial base4 7,d7 ,to carry out the foreign policy of the ,united ,states1 including the protection of human rights and the promotion of democracy4 7,e7 ,to carry out obligations and commitments under international agreements and arrangements1 including multilateral export control regimes4 7,f7 ,to facilitate military interoperability between the ,united ,states and its ,north ,atlantic ,treaty ,organization 7,,nato7 and other close allies4 7,g7 ,to ensure national security controls are tailored to focus on those core technologies and other items that are capable of being used to pose a serious national security threat to the ,united ,states4 7#c7 ,the national security of the ,united ,states requires that the ,united ,states maintain its leadership in the science1 technology1 engineering1 and manufacturing sectors1 including foundational technology that is essential to innovation4 ,such leadership requires that ,united ,states persons are competitive in global markets4 ,the impact of the implementation of this subtitle on such leadership and competitiveness must be evaluated on an ongoing basis and applied in imposing controls under sections #hac and #had to avoid negatively affecting such leadership4 7#d7 ,the national security and foreign policy of the ,united ,states require that the ,united ,states participate in multilateral organizations and agreements regarding export controls on items that are consistent with the policy of the ,united ,states1 and take all the necessary steps to secure the adoption and consistent enforcement1 by the governments of such countries1 of export controls on items that are consistent with such policy4 7#e7 ,export controls should be coordinated with the multilateral export control regimes4 ,export controls that are multilateral are most effective1 and should be tailored to focus on those core technologies and other items that are capable of being used to pose a serious national security threat to the ,united ,states and its allies4 7#f7 ,export controls applied unilaterally to items widely available from foreign sources generally are less effective in preventing end-users from acquiring those items4 ,application of unilateral export controls should be limited for purposes of protecting specific ,united ,states national security and foreign policy interests4 7#g7 ,the effective administration of export controls requires a clear understanding both inside and outside the ,united ,states ,government of which items are controlled and an efficient process should be created to update the controls1 such as by adding or removing such items4 7#h7 ,the export control system must ensure that it is transparent1 predictable1 and timely1 has the flexibility to be adapted to address new threats in the future1 and allows seamless access to and sharing of export control information among all relevant ,united ,states national security and foreign policy agencies4 7#i7 ,implementation and enforcement of ,united ,states export controls require robust capabilities in monitoring1 intelligence1 and investigation1 appropriate penalties for violations1 and the ability to swiftly interdict unapproved transfers4 7#aj7 ,export controls complement and are a critical element of the national security policies underlying the laws and regulations governing foreign direct investment in the ,united ,states1 including controlling the transfer of critical technologies to certain foreign persons4 ,thus1 the ,president1 in coordination with the ,secretary1 the ,secretary of ,defense1 the ,secretary of ,state1 the ,secretary of ,energy1 and the heads of other ,federal agencies1 as appropriate1 should have a regular and robust process to identify the emerging and other types of critical technologies of concern and regulate their release to foreign persons as warranted regardless of the nature of the underlying transaction4 ,such identification efforts should draw upon the resources and expertise of all relevant parts of the ,united ,states ,government1 industry1 and academia4 ,these efforts should be in addition to traditional efforts to modernize and update the lists of controlled items under the multilateral export control regimes4 7#aa7 ,the authority under this subtitle may be exercised only in furtherance of all of the objectives set forth in paragraphs 7#a7 through 7#aj74 #hac4 ,authority of the ,president 7a7 ,authority ,in order to carry out the policy set forth in paragraphs 7#a7 through 7#aj7 of section #hab1 the ,president shall control-- 7#a7 the export1 reexport1 and transfer of items subject to the jurisdiction of the ,united ,states1 whether by ,united ,states persons or by foreign persons2 and 7#b7 the activities of ,united ,states persons1 wherever located1 relating to specific-- 7,a7 nuclear explosive devices2 7,b7 missiles2 7,c7 chemical or biological weapons2 7,d7 whole plants for chemical weapons precursors2 7,e7 foreign maritime nuclear projects2 and 7,f7 foreign military intelligence services4 7b7 ,requirements ,in exercising authority under this subtitle to carry out the policy set forth in paragraphs 7#a7 through 7#aj7 of section #hab1 the ,president shall-- 7#a7 regulate the export1 reexport1 and transfer of items described in subsection 7a77#a7 of ,united ,states persons or foreign persons2 7#b7 regulate the activities described in subsection 7a77#b7 of ,united ,states persons1 wherever located2 7#c7 secure the cooperation of other governments and multilateral organizations to impose control systems that are consistent1 to the extent possible1 with the controls imposed under subsection 7a72 7#d7 maintain the leadership of the ,united ,states in science1 engineering1 technology research and development1 manufacturing1 and foundational technology that is essential to innovation2 7#e7 protect ,united ,states technological advances by prohibiting unauthorized technology transfers to foreign persons in the ,united ,states or outside the ,united ,states1 particularly with respect to countries that may pose a significant threat to the national security of the ,united ,states2 7#f7 strengthen the ,united ,states industrial base1 both with respect to current and future defense requirements2 and 7#g7 enforce the controls through means such as regulations1 requirements for compliance1 lists of controlled items1 lists of foreign persons who threaten the national security or foreign policy of the ,united ,states1 and guidance in a form that facilitates compliance by ,united ,states persons and foreign persons1 in particular academic institutions1 scientific and research establishments1 and small- and medium-sized businesses4 7c7 ,application of controls ,the ,president shall impose controls over the export1 reexport1 or transfer of items for purposes of the objectives described in subsections 7b77#a7 or 7b77#b7 without regard to the nature of the underlying transaction or any circumstances pertaining to the activity1 including whether such export1 reexport1 or transfer occurs pursuant to a purchase order or other contract requirement1 voluntary decision1 inter-company arrangement1 marketing effort1 or during a joint venture1 joint development agreement1 or similar collaborative agreement4 #had4 ,additional authorities 7a7 ,in general ,in carrying out this subtitle on behalf of the ,president1 the ,secretary1 in consultation with the ,secretary of ,state1 the ,secretary of ,defense1 the ,secretary of ,energy1 and the heads of other ,federal agencies as appropriate1 shall-- 7#a7 establish and maintain a list of items that are controlled under this subtitle2 7#b7 establish and maintain a list of foreign persons and end-uses that are determined to be a threat to the national security and foreign policy of the ,united ,states pursuant to the policy set forth in section #hab7b77;,a72 7#c7 prohibit unauthorized exports1 reexports1 and transfers of controlled items1 including to foreign persons in the ,united ,states or outside the ,united ,states2 7#d7 restrict exports1 reexports1 and transfers of any controlled items to any foreign person or end-use listed under paragraph 7#b72 7#e7 require licenses or other authorizations1 as appropriate1 for exports1 reexports1 and transfers of controlled items1 including imposing conditions or restrictions on ,united ,states persons and foreign persons with respect to such licenses or other authorizations2 7#f7 establish a process for an assessment to determine whether a foreign item is comparable in quality to an item controlled under this subtitle1 and is available in sufficient quantities to render the ,united ,states export control of that item or the denial of a license ineffective1 including a mechanism to address that disparity2 7#g7 require measures for compliance with the export controls established under this subtitle2 7#h7 require and obtain such information from ,united ,states persons and foreign persons as is necessary to carry out this subtitle2 7#i7 require1 to the extent feasible1 identification of items subject to controls under this subtitle in order to facilitate the enforcement of such controls2 7#aj7 inspect1 search1 detain1 or seize1 or impose temporary denial orders with respect to items1 in any form1 that are subject to controls under this subtitle1 or conveyances on which it is believed that there are items that have been1 are being1 or are about to be exported1 reexported1 or transferred in violation of this subtitle2 7#aa7 monitor shipments1 or other means of transfer2 7#ab7 keep the public fully apprised of changes in policy1 regulations1 and procedures established under this subtitle2 7#ac7 appoint technical advisory committees in accordance with the ,federal ,advisory ,committee ,act2 7#ad7 create1 as warranted1 exceptions to licensing requirements in order to further the objectives of this subtitle2 7#ae7 establish and maintain processes to inform persons1 either individually by specific notice or through amendment to any regulation or order issued under this subtitle1 that a license from the ,bureau of ,industry and ,security of the ,department of ,commerce is required to export2 and 7#af7 undertake any other action as is necessary to carry out this subtitle that is not otherwise prohibited by law4 7b7 ,relationship to ,,ieepa ,the authority under this subtitle may not be used to regulate or prohibit under this subtitle the export1 reexport1 or transfer of any item that may not be regulated or prohibited under section #bjc7;b7 of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agjb7;b771 except to the extent the ,president has made a determination necessary to impose controls under subparagraph 7,a71 7,b71 or 7,c7 of paragraph 7#b7 of such section4 7c7 ,countries supporting international terrorism 7#a7 ,commerce license requirement 7,a7 ,in general ,a license shall be required for the export1 reexport1 or transfer of items1 the control of which is implemented pursuant to subsection 7a7 by the ,secretary1 to a country if the ,secretary of ,state has made the following determinations3 7i7 ,the government of such country has repeatedly provided support for acts of international terrorism4 7ii7 ,the export1 reexport1 or transfer of such items could make a significant contribution to the military potential of such country1 including its military logistics capability1 or could enhance the ability of such country to support acts of international terrorism4 7,b7 ,determination under other provisions of law ,a determination of the ,secretary of ,state under section #fbj;,a of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bcga71 section #dj of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bghj71 or any other provision of law that the government of a country described in subparagraph 7,a7 has repeatedly provided support for acts of international terrorism shall be deemed to be a determination with respect to such government for purposes of clause 7i7 of subparagraph 7,a74 7#b7 ,notification to ,congress 7,a7 ,in general ,the ,secretary of ,state and the ,secretary shall notify the ,committee on ,foreign ,affairs of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs and the ,committee on ,foreign ,relations of the ,senate at least #cj days before any license is issued as required by paragraph 7#a74 7,b7 ,contents ,the ,secretary of ,state shall include in the notification required under subparagraph 7,a7-- 7i7 a detailed description of the items to be offered1 including a brief description of the capabilities of any item for which a license to export1 reexport1 or transfer the items is sought2 7ii7 the reasons why the foreign country1 person1 or entity to which the export1 reexport1 or transfer is proposed to be made has requested the items under the export1 reexport1 or transfer1 and a description of the manner in which such country1 person1 or entity intends to use such items2 7iii7 the reasons why the proposed export1 reexport1 or transfer is in the national interest of the ,united ,states2 7iv7 an analysis of the impact of the proposed export1 reexport1 or transfer on the military capabilities of the foreign country1 person1 or entity to which such transfer would be made2 7v7 an analysis of the manner in which the proposed export1 reexport1 or transfer would affect the relative military strengths of countries in the region to which the items that are the subject of such export1 reexport1 or transfer would be delivered and whether other countries in the region have comparable kinds and amounts of items2 and 7vi7 an analysis of the impact of the proposed export1 reexport1 or transfer on the relations of the ,united ,states with the countries in the region to which the items that are the subject of such export1 reexport1 or transfer would be delivered4 7#c7 ,publication in ,federal ,register ,each determination of the ,secretary of ,state under paragraph 7#a77;,a77i7 shall be published in the ,federal ,register1 except that the ,secretary of ,state may exclude confidential information and trade secrets contained in such determination4 7#d7 ,rescission of determination ,a determination of the ,secretary of ,state under paragraph 7#a77;,a77i7 may not be rescinded unless the ,president submits to the ,speaker of the ,house of ,representatives1 the chairman of the ,committee on ,foreign ,affairs1 and the chairman of the ,committee on ,banking1 ,housing1 and ,urban ,affairs and the chairman of the ,committee on ,foreign ,relations of the ,senate-- 7,a7 before the proposed rescission would take effect1 a report certifying that-- 7i7 there has been a fundamental change in the leadership and policies of the government of the country concerned2 7ii7 that government is not supporting acts of international terrorism2 and 7iii7 that government has provided assurances that it will not support acts of international terrorism in the future2 or 7,b7 at least #ij days before the proposed rescission would take effect1 a report justifying the rescission and certifying that-- 7i7 the government concerned has not provided any support for acts international terrorism during the preceding #bd-month period2 and 7ii7 the government concerned has provided assurances that it will not support acts of international terrorism in the future4 7#e7 ,disapproval of rescission ,no rescission under paragraph 7#d77;,b7 of a determination under paragraph 7#a77;,a7 with respect to the government of a country may be made if ,congress1 within #ij days after receipt of a report under paragraph 7#d77;,b71 enacts a joint resolution described in subsection 7f77#b7 of section #dj of the ,arms ,export ,control ,act with respect to a rescission under subsection 7f77#a7 of such section with respect to the government of such country4 7#f7 ,notification and briefing ,not later than-- 7,a7 ten days after initiating a review of the activities of the government of the country concerned within the #bd-month period referred to in paragraph 7#d77;,b77i71 the ,secretary of ,state shall notify the ,committee on ,foreign ,affairs of the ,house of ,representatives and the ,committee on ,foreign ,relations of the ,senate of such initiation2 and 7,b7 #bj days after the notification described in paragraph 7#a71 the ,secretary of ,state shall brief the congressional committees described in paragraph 7#a7 on the status of such review4 7#g7 ,waiver ,the ,president may waive the requirement under paragraph 7#a7 that a license shall be required for the export1 reexport1 or transfer of items1 the control of which is implemented pursuant to subsection 7a7 by the ,secretary1 to a country if the ,president-- 7,a7 determines that to do so is essential to the national security interests of the ,united ,states2 and 7,b7 consults with the ,committee on ,foreign ,affairs of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs and the ,committee on ,foreign ,relations of the ,senate not less than #ae days prior to the waiver taking effect4 7d7 ,enhanced controls 7#a7 ,in general ,in furtherance of section #hac7;a71 the ,president shall1 except to the extent authorized by a statute or regulation administered by a ,federal department or agency other than the ,department of ,commerce1 require a ,united ,states person1 wherever located1 to apply for and receive a license from the ,department of ,commerce for-- 7,a7 the export1 reexport1 or transfer of items described in paragraph 7#b71 including items that are not subject to control under this subtitle2 and 7,b7 other activities that may support the design1 development1 production1 use1 operation1 installation1 maintenance1 repair1 overhaul1 or refurbishing of1 or for the performance of services relating to1 any such items4 7#b7 ,items described ,the items described in this paragraph include-- 7,a7 nuclear explosive devices2 7,b7 missiles2 7,c7 chemical or biological weapons2 7,d7 whole plants for chemical weapons precursors2 and 7,e7 foreign maritime nuclear projects that would pose a risk to the national security or foreign policy of the ,united ,states4 7e7 ,additional prohibitions ,the ,secretary may inform ,united ,states persons1 either individually by specific notice or through amendment to any regulation or order issued under this subtitle1 that a license from the ,bureau of ,industry and ,security of the ,department of ,commerce is required to engage in any activity if the activity involves the types of movement1 service1 or support described in subsection 7d74 ,the absence of any such notification does not excuse the ,united ,states person from compliance with the license requirements of subsection 7d71 or any regulation or order issued under this subtitle4 7f7 ,license review standards ,the ,secretary shall deny an application to engage in any activity described in subsection 7d7 if the activity would make a material contribution to any of the items described in subsection 7d77#b74 #hae4 ,administration of export controls 7a7 ,in general ,the ,president shall rely on1 including through delegations1 as appropriate1 to the ,secretary1 the ,secretary of ,defense1 the ,secretary of ,state1 the ,secretary of ,energy1 the ,director of ,national ,intelligence1 and the heads of other ,federal agencies as appropriate1 to exercise the authority to carry out the purposes set forth in subsection 7b74 7b7 ,purposes 7#a7 ,in general ,the purposes of this section include to-- 7,a7 advise the ,president with respect to-- 7i7 identifying specific threats to the national security and foreign policy that the authority of this subtitle may be used to address2 and 7ii7 exercising the authority under this subtitle to implement policies1 regulations1 procedures1 and actions that are necessary to effectively counteract those threats2 7,b7 review and approve-- 7i7 criteria for including items on1 and removing such an item from1 a list of controlled items established under this subtitle2 7ii7 an interagency procedure for compiling and amending any list described in clause 7i72 7iii7 criteria for including a person on a list of persons to whom exports1 reexports1 and transfers of items are prohibited or restricted under this subtitle2 7iv7 standards for compliance by persons subject to controls under this subtitle2 and 7v7 policies and procedures for the end-use monitoring of exports1 reexports1 and transfers of items controlled under this subtitle2 7,c7 obtain independent evaluations1 including from ,inspectors ,general of the relevant departments or agencies1 on a periodic basis on the effectiveness of the implementation of this subtitle in carrying out the policy set forth in section #hab2 and 7,d7 benefit from the inherent equities1 experience1 and capabilities of the ,federal officials described in subsection 7a71 including-- 7i7 the views of the ,department of ,defense with respect to the national security implications of a particular control or decision2 7ii7 the views of the ,department of ,state with respect to foreign policy implications of a particular control or decision1 including views relating to national security2 7iii7 the views of the ,department of ,energy with respect to the implications for nuclear proliferation of a particular control or decision2 7iv7 the views of the ,department of ,commerce with respect to the administration of an efficient1 coherent1 reliable1 enforceable1 and predictable export control system1 including views relating to national security1 and the resolution of competing views or policy objectives described in section #hab2 and 7v7 the views of other ,federal agencies1 including the ,department of ,homeland ,security and the ,department of ,justice1 with respect to enforceability of a particular control or decision4 7#b7 ,transmittal and implementation of evaluations ,the results of the independent evaluations conducted pursuant to paragraph 7#a77;,c7 shall be transmitted to the ,president and the ,congress1 in classified form if necessary4 ,subject to the delegation of authority by the ,president1 the ,federal officials described in subsection 7a7 shall determine1 direct1 and ensure that improvements recommended in the evaluations are implemented4 7c7 ,sense of ,congress ,it is the sense of ,congress that the administration of export controls under this subtitle should be consistent with the procedures relating to export license applications described in ,executive ,order #abiha 7#aiie74 #haf4 ,licensing 7a7 ,in general ,the ,president shall1 as set forth in section #hae7;a71 establish a procedure for the ,department of ,commerce to license or otherwise authorize the export1 reexport1 and transfer of items controlled under this subtitle in order to carry out the policy set forth in section #hab and the requirements set forth in section #hac7;b74 ,the procedure shall ensure that-- 7#a7 license applications and other requests for authorization are considered and decisions made with the participation of appropriate ,federal agencies1 as appropriate2 and 7#b7 licensing decisions are made in an expeditious manner1 with transparency to applicants on the status of license and other authorization processing and the reason for denying any license or request for authorization4 7b7 ,sense of ,congress ,it is the sense of ,congress that the ,president should make best efforts to ensure that an accurate1 consistent1 and timely evaluation and processing of licenses or other requests for authorization to export1 reexport1 or transfer items controlled under this subtitle is generally accomplished within #cj days from the date of such license request4 7c7 ,fees ,no fee may be charged in connection with the submission1 processing1 or consideration of any application for a license or other authorization or other request made in connection with any regulation in effect under the authority of this subtitle4 7d7 ,additional procedural requirements 7#a7 ,in general ,the procedure required under subsection 7a7 shall provide for the assessment of the impact of a proposed export of an item on the ,united ,states defense industrial base and the denial of an application for a license or a request for an authorization of any export that would have a significant negative impact on such defense industrial base1 as described in paragraph 7#c74 7#b7 ,information from applicant ,the procedure required under subsection 7a7 shall also require an applicant for a license to provide the information necessary to make the assessment provided under paragraph 7#a71 including whether the purpose or effect of the export is to allow for the significant production of items relevant for the defense industrial base outside the ,united ,states4 7#c7 ,significantly negative impact defined ,a significant negative impact on the ,united ,states defense industrial base is the following3 7,a7 ,a reduction in the availability of an item produced in the ,united ,states that is likely to be acquired by the ,department of ,defense or other ,federal department or agency for the advancement of the national security of the ,united ,states1 or for the production of an item in the ,united ,states for the ,department of ,defense or other agency for the advancement of the national security of the ,united ,states4 7,b7 ,a reduction in the production in the ,united ,states of an item that is the result of research and development carried out1 or funded by1 the ,department of ,defense or other ,federal department or agency to advance the national security of the ,united ,states1 or a federally funded research and development center4 7,c7 ,a reduction in the employment of ,united ,states persons whose knowledge and skills are necessary for the continued production in the ,united ,states of an item that is likely to be acquired by the ,department of ,defense or other ,federal department or agency for the advancement of the national security of the ,united ,states4 #hag4 ,compliance assistance 7a7 ,system for seeking assistance ,the ,president may authorize the ,secretary to establish a system to provide ,united ,states persons with assistance in complying with this subtitle1 which may include a mechanism for providing information1 in classified form as appropriate1 who are potential customers1 suppliers1 or business partners with respect to items controlled under this subtitle1 in order to further ensure the prevention of the export1 reexport1 or transfer of items that may pose a threat to the national security or foreign policy of the ,united ,states4 7b7 ,security clearances ,in order to carry out subsection 7a71 the ,president may issue appropriate security clearances to persons described in that subsection who are responsible for complying with this subtitle4 7c7 ,assistance for certain businesses 7#a7 ,in general ,not later than #abj days after the date of the enactment of this ,act1 the ,president shall develop and submit to ,congress a plan to assist small- and medium-sized ,united ,states in export licensing and other processes under this subtitle4 7#b7 ,contents ,the plan shall include1 among other things1 arrangements for the ,department of ,commerce to provide counseling to businesses described in paragraph 7#a7 on filing applications and identifying items controlled under this subtitle1 as well as proposals for seminars and conferences to educate such businesses on export controls1 licensing procedures1 and related obligations4 #hah4 ,requirements to identify and control emerging1 foundational1 and other critical technologies in export control regulations 7a7 ,identification of technologies 7#a7 ,in general ,the ,president shall establish and1 in coordination with the ,secretary1 the ,secretary of ,defense1 the ,secretary of ,energy1 the ,secretary of ,state1 and the heads of other ,federal agencies as appropriate1 lead a regular1 ongoing interagency process to identify emerging and foundational technologies that-- 7,a7 are essential to the national security of the ,united ,states2 and 7,b7 are not critical technologies described in subparagraphs 7,a7 through 7,d7 of section #gba7;a77#g7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7;a77#g774 7#b7 ,interagency process ,the interagency process required under paragraph 7#a7 shall-- 7,a7 be informed by multiple sources of information1 including-- 7i7 publicly available information2 7ii7 classified information1 including relevant information provided by the ,director of ,national ,intelligence2 7iii7 information relating to reviews and investigations of transactions by the ,committee on ,foreign ,investment in the ,united ,states under section #gba of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe72 and 7iv7 information provided by the advisory committees established by the ,secretary to advise the ,under ,secretary of ,commerce for ,industry and ,security on controls under the ,export ,administration ,regulations1 including the ,emerging ,technology and ,research ,advisory ,committee4 7,b7 take into account-- 7i7 the development of emerging and foundational technologies in other countries2 7ii7 the effect export controls imposed pursuant to this section may have on the development of the technologies in the ,united ,states2 and 7iii7 the effectiveness of export controls imposed pursuant to this section on limiting the proliferation of emerging and foundational technologies to foreign countries2 7,c7 provide for the nomination of an emerging or foundational technology to be identified under subsection 7a7 by the ,secretary1 the ,secretary of ,defense1 the ,secretary of ,state1 the ,secretary of ,energy1 or the heads of other ,federal agencies as appropriate2 7,d7 ensure that1 not later than #fj days after the nomination of an emerging or foundational technology under subparagraph 7,c71 the ,secretary makes a determination1 in coordination with the ,secretary of ,defense1 the ,secretary of ,state1 the ,secretary of ,energy1 and the heads of other ,federal agencies as appropriate1 regarding whether additional or modified controls on the technology under this section are warranted1 including through informing a person that a license is required to export the technology1 or that more time and input from the sources described in this paragraph is needed before a final determination is made to issue a rule to impose controls over such technology2 and 7,e7 include a notice and comment period4 7b7 ,commerce controls 7#a7 ,in general ,the ,secretary shall1 except to the extent inconsistent with the authorities described in subsection 7a77#a77;,b71 establish appropriate controls on the export1 reexport1 or transfer of technology identified pursuant to subsection 7a7 and subject to the ,export ,administration ,regulations1 including by publishing additional regulations4 7#b7 ,levels of control 7,a7 ,in general ,the ,secretary may1 in coordination with the ,secretary of ,defense1 the ,secretary of ,energy1 the ,secretary of ,state1 and the heads of other ,federal agencies as appropriate1 specify the level of control to apply under paragraph 7#a7 with respect to the export of technology described in that paragraph1 including a requirement for a license or other authorization1 to export1 reexport1 or transfer of that technology4 7,b7 ,considerations ,in determining under subparagraph 7,a7 the level of control that is appropriate for technology described in paragraph 7#a71 the ,secretary shall take into account-- 7i7 lists of countries to which exports from the ,united ,states are restricted2 and 7ii7 the potential end uses and end users of the technology4 7,c7 ,minimum requirements ,the ,secretary shall1 at a minimum and except as required by paragraph 7#d71 require a license to export1 reexport1 or transfer technology described in paragraph 7#a7 to or in a country subject to an embargo1 including an arms embargo1 imposed by the ,united ,states4 7#c7 ,review of license applications 7,a7 ,procedures ,the procedures set forth in ,executive ,order #abiha 7#ej ,u4,s4,c4 #dfjc note2 relating to the administration of export controls7 or any successor order1 shall apply to the review of an application for a license for the export1 reexport1 or transfer of technology described in paragraph 7#a74 7,b7 ,consideration of information relating to national security ,in reviewing an application for a license or other authorization for the export1 reexport1 or transfer of technology described in paragraph 7#a71 the ,secretary shall take into account information provided by the ,director of ,national ,intelligence regarding any threat to the national security of the ,united ,states posed by the proposed export1 reexport1 or transfer4 ,the ,director of ,national ,intelligence shall provide such information on the request of the ,secretary4 7,c7 ,disclosure relating to collaborative arrangements ,in the case of an application for a license or other authorization for the export1 reexport1 or transfer of technology described in paragraph 7#a7 submitted by or on behalf of a joint venture1 joint development agreement1 or similar collaborative arrangement1 the ,secretary may require the applicant to identify1 in addition to any foreign person participating in the arrangement1 any foreign person with significant ownership interest in a foreign person participating in the arrangement4 7#d7 ,exceptions 7,a7 ,mandatory exception ,the ,secretary may not control under this subsection the export of any technology described in paragraph 7#a7 if the regulation of that technology is prohibited under any other provision of law4 7,b7 ,regulatory exemptions ,in prescribing regulations under paragraph 7#a71 the ,secretary may include appropriate regulatory exemptions to the requirements of that paragraph for the export1 reexport1 or transfer of technology described in paragraph 7#a74 7c7 ,multilateral controls 7#a7 ,in general ,the ,secretary of ,state1 in coordination with the ,secretary1 the ,secretary of ,defense1 the ,secretary of ,energy1 and heads of other ,federal agencies as appropriate1 shall propose to the relevant multilateral export control regimes in the following year that a technology identified through the interagency process required under subsection 7a7 be added to the list of technology controlled by such regimes4 7#b7 ,review of continued unilateral export controls ,the ,secretary1 with respect to those items on the ,commerce ,control ,list maintained under part #ggd of title #ae1 ,code of ,federal ,regulations1 and in coordination with the ,secretary of ,defense1 the ,secretary of ,energy1 and the ,secretary of ,state1 and the ,secretary of ,state1 with respect to those items on the ,united ,states ,munitions ,list and in coordination with the ,secretary of ,defense and the heads of other ,federal agencies as appropriate1 shall determine whether national security concerns warrant continued unilateral export controls over a technology proposed for multilateral control under paragraph 7#a7 if the relevant multilateral export control regime does not agree to list such technology on its control list within three years of a proposal by the ,united ,states4 7d7 ,report ,not later than #ahj days after the date of the enactment of this ,act1 and not less frequently than every #ahj days thereafter1 the ,secretary1 in coordination with the ,secretary of ,defense1 the ,secretary of ,state1 the ,secretary of ,energy1 and the heads of other ,federal agencies as appropriate1 shall submit to the ,committee on ,foreign ,investment in the ,united ,states on a semiannual basis a report on updates of any key actions taken pursuant to this section4 7e7 ,rule of construction ,nothing in this section shall be construed to alter or limit-- 7#a7 the authority of the ,president and the ,secretary of ,state to designate those items that are considered to be defense articles or defense services for purposes of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgea et seq47 or to otherwise regulate such items2 or 7#b7 the authority of the ,president under the ,atomic ,energy ,act of #aied 7#db ,u4,s4,c4 #bjaa et seq471 the ,nuclear ,non-,proliferation ,act of #aigh 7#bb ,u4,s4,c4 #cbja et seq471 the ,energy ,reorganization ,act of #aigd 7#db ,u4,s4,c4 #ehja et seq471 this title1 or any other provision of law relating to the control of exports4 7f7 ,sense of ,congress ,it is the sense of the ,congress that the ,president should request in the annual budget of the ,president submitted under section #aaje7;a7 of title #ca1 ,united ,states ,code1 sufficient resources to enable the relevant departments and agencies to effectively implement this section4 #hai4 ,review relating to countries subject to comprehensive ,united ,states arms embargo 7a7 ,in general ,the ,secretary1 the ,secretary of ,defense1 the ,secretary of ,energy1 the ,secretary of ,state1 and the heads of other ,federal agencies as appropriate1 shall conduct a review of-- 7#a7 section #gdd4ba of title #ae1 ,code of ,federal ,regulations1 including to assess whether the current and anticipated risks of direct or indirect diversion1 such as from policies and practices that effectively obscure distinctions between civil and military end-users and end-uses1 require that the scope of control under such section should be expanded to apply to exports1 reexports1 or transfers for military end uses and military end users in countries that are subject to a comprehensive ,united ,states arms embargo and countries that are subject to a ,united ,nations arms embargo2 7#b7 entries on the ,commerce ,control ,list maintained under part #ggd of title #ae1 ,code of ,federal ,regulations1 that do not impose license requirements for exports1 reexports1 or transfers of items to countries subject to a comprehensive ,united ,states arms embargo2 7#c7 whether there should be a presumption of denial for an application for a license to export1 reexport1 or transfer an item on the ,commerce ,control ,list subject to national security controls or regional stability controls under part #gdb of the ,export ,administration ,regulations if that item is reasonably likely to contribute1 directly or indirectly1 to the military or intelligence capabilities of any country with respect to which the ,united ,states has in place an arms embargo1 sanctions1 or comparable restrictions1 including to or within any country listed in ,country ,group ,d3#e in ,supplement ,no4 #a to part #gdj of the ,export ,administration ,regulations2 7#d7 whether there should be a presumption of denial for an application for a license to export1 reexport1 or transfer an emerging or foundational technology identified in section #hah7;a7 to or within a country identified in section #gdd4ba of title #ae1 ,code of ,federal ,regulations or ,country ,group ,e in ,supplement ,no4 #a to part #gdj of the ,export ,administration ,regulations2 and 7#e7 without limiting the effect of paragraphs 7#c7 and 7#d71 whether there should be a presumption of approval for an application for a license to export1 reexport1 or transfer an item on the ,commerce ,control ,list if that item is for a civil end use4 7b7 ,implementation of results of review ,not later than #bgj days after the date of the enactment of this ,act1 the ,secretary shall implement the results of the review conducted under subsection 7a74 #hbj4 ,penalties 7a7 ,unlawful acts 7#a7 ,in general ,it shall be unlawful for a person to violate1 attempt to violate1 conspire to violate1 or cause a violation of this subtitle or of any regulation1 order1 license1 or other authorization issued under this subtitle1 including any of the unlawful acts described in paragraph 7#b74 7#b7 ,specific unlawful acts ,the unlawful acts described in this paragraph are the following3 7,a7 ,no person may engage in any conduct prohibited by or contrary to1 or refrain from engaging in any conduct required by this subtitle1 the ,export ,administration ,regulations1 or any order1 license or authorization issued thereunder4 7,b7 ,no person may cause or aid1 abet1 counsel1 command1 induce1 procure1 permit1 or approve the doing of any act prohibited1 or the omission of any act required by this subtitle1 the ,export ,administration ,regulations1 or any order1 license or authorization issued thereunder4 7,c7 ,no person may solicit or attempt a violation of this subtitle1 the ,export ,administration ,regulations1 or any order1 license or authorization issued thereunder4 7,d7 ,no person may conspire or act in concert with one or more other persons in any manner or for any purpose to bring about or to do any act that constitutes a violation of this subtitle1 the ,export ,administration ,regulations1 or any order1 license or authorization issued thereunder4 7,e7 ,no person may order1 buy1 remove1 conceal1 store1 use1 sell1 loan1 dispose of1 transfer1 transport1 finance1 forward1 or otherwise service1 in whole or in part1 or conduct negotiations to facilitate such activities for1 any item exported or to be exported from the ,united ,states1 or that is otherwise subject to the ,export ,administration ,regulations1 with knowledge that a violation of this subtitle1 the ,export ,administration ,regulations1 or any order1 license or authorization issued thereunder1 has occurred1 is about to occur1 or is intended to occur in connection with the item unless valid authorization is obtained therefor4 7,f7 ,no person may make any false or misleading representation1 statement1 or certification1 or falsify or conceal any material fact1 either directly to the ,department of ,commerce1 or an official of any other ,united ,states agency1 including the ,department of ,homeland ,security and the ,department of ,justice1 or indirectly through any other person-- 7i7 in the course of an investigation or other action subject to the ,export ,administration ,regulations2 7ii7 in connection with the preparation1 submission1 issuance1 use1 or maintenance of any export control document or any report filed or required to be filed pursuant to the ,export ,administration ,regulations2 or 7iii7 for the purpose of or in connection with effecting any export1 reexport1 or transfer of an item subject to the ,export ,administration ,regulations or a service or other activity of a ,united ,states person described in section #had4 7,g7 ,no person may engage in any transaction or take any other action with intent to evade the provisions of this subtitle1 the ,export ,administration ,regulations1 or any order1 license1 or authorization issued thereunder4 7,h7 ,no person may fail or refuse to comply with any reporting or recordkeeping requirements of the ,export ,administration ,regulations or of any order1 license1 or authorization issued thereunder4 7,i7 ,except as specifically authorized in the ,export ,administration ,regulations or in writing by the ,department of ,commerce1 no person may alter any license1 authorization1 export control document1 or order issued under the ,export ,administration ,regulations4 7,j7 ,no person may take any action that is prohibited by a denial order issued by the ,department of ,commerce to prevent imminent violations of this subtitle1 the ,export ,administration ,regulations1 or any order1 license or authorization issued thereunder4 7#c7 ,additional requirements ,for purposes of subparagraph 7,g71 any representation1 statement1 or certification made by any person shall be deemed to be continuing in effect4 ,each person who has made a representation1 statement1 or certification to the ,department of ,commerce relating to any order1 license1 or other authorization issued under this subtitle shall notify the ,department of ,commerce1 in writing1 of any change of any material fact or intention from that previously represented1 stated1 or certified1 immediately upon receipt of any information that would lead a reasonably prudent person to know that a change of material fact or intention had occurred or may occur in the future4 7b7 ,criminal penalty ,a person who willfully commits1 willfully attempts to commit1 or willfully conspires to commit1 or aids and abets in the commission of1 an unlawful act described in subsection 7a7-- 7#a7 shall be fined not more than #a1jjj1jjj2 and 7#b7 in the case of the individual1 shall be imprisoned for not more than #bj years1 or both4 7c7 ,civil penalties 7#a7 ,authority ,the ,president may impose the following civil penalties on a person for each violation by that person of this subtitle or any regulation1 order1 or license issued under this subtitle1 for each violation3 7,a7 ,a fine of not more than #cjj1jjj or an amount that is twice the value of the transaction that is the basis of the violation with respect to which the penalty is imposed1 whichever is greater4 7,b7 ,revocation of a license issued under this subtitle to the person4 7,c7 ,a prohibition on the person's ability to export1 reexport1 or transfer any items1 whether or not subject to controls under this subtitle4 7#b7 ,procedures ,any civil penalty under this subsection may be imposed only after notice and opportunity for an agency hearing on the record in accordance with sections #eed through #eeg of title #e1 ,united ,states ,code4 7#c7 ,standards for levels of civil penalty ,the ,secretary may by regulation provide standards for establishing levels of civil penalty under this subsection based upon factors such as the seriousness of the violation1 the culpability of the violator1 and such mitigating factors as the violator's record of cooperation with the ,government in disclosing the violation4 7d7 ,criminal forfeiture of property interest and proceeds 7#a7 ,forfeiture ,any person who is convicted under subsection 7b7 of a violation of a control imposed under section #hac 7or any regulation1 order1 or license issued with respect to such control7 shall1 in addition to any other penalty1 forfeit to the ,united ,states-- 7,a7 any of that person's interest in1 security of1 claim against1 or property or contractual rights of any kind in the tangible items that were the subject of the violation2 7,b7 any of that person's interest in1 security of1 claim against1 or property or contractual rights of any kind in tangible property that was used in the violation2 and 7,c7 any of that person's property constituting1 or derived from1 any proceeds obtained directly or indirectly as a result of the violation4 7#b7 ,procedures ,the procedures in any forfeiture under this subsection1 and the duties and authority of the courts of the ,united ,states and the ,attorney ,general with respect to any forfeiture action under this subsection or with respect to any property that may be subject to forfeiture under this subsection1 shall be governed by the provisions of section #aifc of title #ah1 ,united ,states ,code4 7e7 ,prior convictions 7#a7 ,license bar 7,a7 ,in general ,the ,secretary may-- 7i7 deny the eligibility of any person convicted of a criminal violation described in subparagraph 7,b7 to export1 reexport1 or transfer outside the ,united ,states any item1 whether or not subject to controls under this subtitle1 for a period of up to #aj years beginning on the date of the conviction2 and 7ii7 revoke any license or other authorization to export1 reexport1 or transfer items that was issued under this subtitle and in which such person has an interest at the time of the conviction4 7,b7 ,violations ,the violations referred to in subparagraph 7,a7 are any criminal violations of1 or criminal attempt or conspiracy to violate-- 7i7 this subtitle 7or any regulation1 license1 or order issued under this subtitle72 7ii7 any regulation1 license1 or order issued under the ,international ,emergency ,economic ,powers ,act2 7iii7 section #cga1 #eed1 #gic1 #gid1 or #gih of title #ah1 ,united ,states ,code2 7iv7 section #ajja of title #ah1 ,united ,states ,code2 7v7 section #d7;b7 of the ,internal ,security ,act of #aiej 7#ej ,u4,s4,c4 #ghc7;b772 or 7vi7 section #ch of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bggh74 7#b7 ,application to other parties ,the ,secretary may exercise the authority under paragraph 7#a7 with respect to any person related1 through affiliation1 ownership1 control1 position of responsibility1 or other connection in the conduct of trade or business1 to any person convicted of any violation of law set forth in paragraph 7#a71 upon a showing of such relationship with the convicted party1 and subject to the procedures set forth in subsection 7c77#b74 7f7 ,other authorities ,nothing in subsection 7c71 7d71 or 7e7 limits-- 7#a7 the availability of other administrative or judicial remedies with respect to violations of this subtitle1 or any regulation1 order1 license or other authorization issued under this subtitle2 7#b7 the authority to compromise and settle administrative proceedings brought with respect to violations of this subtitle1 or any regulation1 order1 license1 or other authorization issued under this subtitle2 or 7#c7 the authority to compromise1 remit or mitigate seizures and forfeitures pursuant to section #a7;b7 of title ,,vi of the ,act of ,june #ae1 #aiag 7#bb ,u4,s4,c4 #dja7;b774 #hba4 ,enforcement 7a7 ,authorities ,in order to enforce this subtitle1 the ,secretary1 on behalf of the ,president shall exercise1 in addition to relevant enforcement authorities of other ,federal agencies1 the authority to-- 7#a7 issue orders and guidelines2 7#b7 require1 inspect1 and obtain books1 records1 and any other information from any person subject to the provisions of this subtitle2 7#c7 administer oaths or affirmations and by subpoena require any person to appear and testify or to appear and produce books1 records1 and other writings1 or both2 7#d7 conduct investigations 7including undercover7 in the ,united ,states and in other countries using all applicable laws of the ,united ,states1 including intercepting any wire1 oral1 and electronic communications1 conducting electronic surveillance1 using pen registers and trap and trace devices1 and carrying out acquisitions1 to the extent authorized under chapters #aai1 #aba1 and #bjf of title #ah1 ,united ,states ,code2 7#e7 inspect1 search1 detain1 seize1 or issue temporary denial orders with respect to items1 in any form1 that are subject to controls under this subtitle1 or conveyances on which it is believed that there are items that have been1 are being1 or are about to be exported1 reexported1 or transferred in violation of this subtitle1 or any regulations1 order1 license1 or other authorization issued thereunder2 7#f7 carry firearms2 7#g7 conduct prelicense inspections and post-shipment verifications2 and 7#h7 execute warrants and make arrests4 7b7 ,enforcement of subpoenas ,in the case of contumacy by1 or refusal to obey a subpoena issued to1 any person under subsection 7a77#c71 a district court of the ,united ,states1 after notice to such person and a hearing1 shall have jurisdiction to issue an order requiring such person to appear and give testimony or to appear and produce books1 records1 and other writings1 regardless of format1 that are the subject of the subpoena4 ,any failure to obey such order of the court may be punished by such court as a contempt thereof4 7c7 ,best practice guidelines 7#a7 ,in general ,the ,secretary1 in consultation with the heads of other appropriate ,federal agencies1 should publish and update best practices guidelines to assist persons in developing and implementing1 on a voluntary basis1 effective export control programs in compliance with the regulations issued under this subtitle4 7#b7 ,export compliance program ,the implementation by a person of an effective export compliance program and a high quality overall export compliance effort by a person should ordinarily be given weight as mitigating factors in a civil penalty action against the person under this subtitle4 7d7 ,reference to enforcement ,for purposes of this section1 a reference to the enforcement of1 or a violation of1 this subtitle includes a reference to the enforcement or a violation of any regulation1 order1 license or other authorization issued pursuant to this subtitle4 7e7 ,immunity ,a person shall not be excused from complying with any requirements under this section because of the person's privilege against self-incrimination1 but the immunity provisions of section #fjjb of title #ah1 ,united ,states ,code1 shall apply with respect to any individual who specifically claims such privilege4 7f7 ,confidentiality of information 7#a7 ,exemptions from disclosure 7,a7 ,in general ,information obtained under this subtitle may be withheld from disclosure only to the extent permitted by statute1 except that information described in subparagraph 7,b7 shall be withheld from public disclosure and shall not be subject to disclosure under section #eeb7;b77#c7 of title #e1 ,united ,states ,code1 unless the release of such information is determined by the ,secretary to be in the national interest4 7,b7 ,information described ,information described in this subparagraph is information submitted or obtained in connection with an application for a license or other authorization to export1 reexport1 or transfer items1 engage in other activities1 a recordkeeping or reporting requirement1 enforcement activity1 or other operations under this subtitle1 including-- 7i7 the license application1 license1 or other authorization itself2 7ii7 classification or advisory opinion requests1 and the response thereto2 7iii7 license determinations1 and information pertaining thereto2 7iv7 information or evidence obtained in the course of any investigation2 and 7v7 information obtained or furnished in connection with any international agreement1 treaty1 or other obligation4 7#b7 ,information to the ,congress and ,,gao 7,a7 ,in general ,nothing in this section shall be construed as authorizing the withholding of information from the ,congress or from the ,government ,accountability ,office4 7,b7 ,availability to the ,congress 7i7 ,in general ,any information obtained at any time under any provision of the ,export ,administration ,act of #aigi 7as in effect on the day before the date of the enactment of this ,act and as continued in effect pursuant to the ,international ,emergency ,economic ,powers ,act71 under the ,export ,administration ,regulations1 or under this subtitle1 including any report or license application required under any such provision1 shall be made available to a committee or subcommittee of ,congress of appropriate jurisdiction1 upon the request of the chairman or ranking minority member of such committee or subcommittee4 7ii7 ,prohibition on further disclosure ,no such committee or subcommittee1 or member thereof1 may disclose any information made available under clause 7i71 that is submitted on a confidential basis unless the full committee determines that the withholding of that information is contrary to the national interest4 7,c7 ,availability to ,,gao 7i7 ,in general ,information described in clause 7i7 of subparagraph 7,b7 shall be subject to the limitations contained in section #gaf of title #ca1 ,united ,states ,code4 7ii7 ,prohibition on further disclosure ,an officer or employee of the ,government ,accountability ,office may not disclose1 except to the ,congress in accordance with this paragraph1 any such information that is submitted on a confidential basis or from which any individual can be identified4 7#c7 ,information sharing 7,a7 ,in general ,any ,federal official described in section #hae7;a7 who obtains information that is relevant to the enforcement of this subtitle1 including information pertaining to any investigation1 shall furnish such information to each appropriate department1 agency1 or office with enforcement responsibilities under this section to the extent consistent with the protection of intelligence1 counterintelligence1 and law enforcement sources1 methods1 and activities4 7,b7 ,exceptions ,the provisions of this paragraph shall not apply to information subject to the restrictions set forth in section #i of title #ac1 ,united ,states ,code1 and return information1 as defined in subsection 7b7 of section #fajc of the ,internal ,revenue ,code of #aihf 7#bf ,u4,s4,c4 #fajc7;b771 may be disclosed only as authorized by that section4 7,c7 ,exchange of information ,the ,president shall ensure that the heads of departments1 agencies1 and offices with enforcement authorities under this subtitle1 consistent with protection of law enforcement and its sources and methods-- 7i7 exchange any licensing and enforcement information with one another that is necessary to facilitate enforcement efforts under this section2 and 7ii7 consult on a regular basis with one another and with the head of other departments1 agencies1 and offices that obtain information subject to this paragraph1 in order to facilitate the exchange of such information4 7,d7 ,information sharing with ,federal agencies ,licensing or enforcement information obtained under this subtitle may be shared with departments1 agencies1 and offices that do not have enforcement authorities under this subtitle on a case-by-case basis4 7g7 ,reporting requirements ,in the administration of this section1 reporting requirements shall be designed to reduce the cost of reporting1 recordkeeping1 and documentation to the extent consistent with effective enforcement and compilation of useful trade statistics4 ,reporting1 recordkeeping1 and documentation requirements shall be periodically reviewed and revised in the light of developments in the field of information technology4 7h7 ,civil forfeiture 7#a7 ,in general ,any tangible items seized under subsection 7a7 by designated officers or employees shall be subject to forfeiture to the ,united ,states in accordance with applicable law1 except that property seized shall be returned if the property owner is not found guilty of a civil or criminal violation under section #hai4 7#b7 ,procedures ,any seizure or forfeiture under this subsection shall be carried out in accordance with the procedures set forth in section #iha of title #ah1 ,united ,states ,code4 7i7 ,rule of construction ,nothing in this ,act shall be construed to limit or otherwise affect the enforcement authorities of the ,department of ,homeland ,security which may also complement those set forth herein4 #hbb4 ,administrative procedure 7a7 ,in general ,the functions exercised under this subtitle shall not be subject to sections #eea1 #eec through #eei1 and #gja through #gjf of title #e1 ,united ,states ,code4 7b7 ,administrative law judges ,the ,secretary is authorized to appoint an administrative law judge1 and may designate administrative law judges from other ,federal agencies who are provided pursuant to a legally authorized interagency agreement with the ,department of ,commerce1 and consistent with the provisions of section #caje of title #e1 ,united ,states ,code4 7c7 ,amendments to regulations ,the ,president shall notify in advance the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,foreign ,affairs of the ,house of ,representatives of any proposed amendments to the ,export ,administration ,regulations with an explanation of the intent and rationale of such amendments4 #hbc4 ,review of interagency dispute resolution process 7a7 ,in general ,the ,president shall review and evaluate the interagency export license referral1 review1 and escalation processes for dual-use items and munitions under the licensing jurisdiction of the ,department of ,commerce or any other ,federal agency1 as appropriate1 to determine whether current practices and procedures are consistent with established national security and foreign policy objectives4 7b7 ,report ,not later than #ahj days after the date of the enactment of this ,act1 the ,president shall submit to the appropriate congressional committees a report that contains the results of the review carried out under subsection 7a74 7c7 ,operating ,committee for ,export ,policy ,in any case in which the ,operating ,committee for ,export ,policy established by ,executive ,order #abiha 7,december #e1 #aiia2 relating to ,administration of ,export ,controls7 is meeting to conduct an interagency dispute resolution relating to applications for export licenses under the ,export ,administration ,regulations1 matters relating to jet engine hot section technology1 commercial communication satellites1 and emerging or foundational technology shall be decided by majority vote4 7d7 ,appropriate congressional committees defined ,in this section1 the term appropriate congressional committees means-- 7#a7 the ,committee on ,armed ,services and the ,committee on ,foreign ,affairs of the ,house of ,representatives2 and 7#b7 the ,committee on ,armed ,services and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate4 #hbd4 ,coordination with other agencies on commodity classification and removal of export controls 7a7 ,in general ,notwithstanding any other provision of law1 the ,secretary shall coordinate with the ,secretary of ,defense1 the ,secretary of ,state1 and the ,secretary of ,energy before taking any of the actions described in subsection 7b74 7b7 ,actions described ,the actions described in this subsection are the following3 7#a7 ,amending the ,commerce ,control ,list set forth in ,supplement ,no4 #a to part #ggd of the ,export ,administration ,regulations to remove an item from the list4 7#b7 ,providing a commodity classification determination under section #gdh4c of the ,export ,administration ,regulations1 including with respect to-- 7,a7 #fjj series items2 7,b7 commercial communication satellites 7,,eccn #ix#eae72 7,c7 emerging and foundational technologies identified under section #hah7;a72 7,d7 specially designed items under part #ggd of title #ae1 ,code of ,federal ,regulations2 or 7,e7 any other items that the ,secretary1 in coordination with the ,secretary of ,defense1 the ,secretary of ,state1 and the ,secretary of ,energy1 identifies and mutually determines is materially significant enough to warrant interagency consultation before the ,secretary determines to add the item to the ,commerce ,control ,list and provide the item with a ,export ,control ,classification ,number 7,,eccn74 7#c7 ,amending the ,commerce ,control ,list to remove any control imposed pursuant to subsection 7b7 of section #hah on the export1 reexport1 or transfer of an emerging or foundational technology identified under subsection 7a7 of that section4 7#d7 ,amending the ,export ,administration ,regulations to expand the scope or application of a license exception authorized by section #gdj of the ,export ,administration ,regulations4 #hbe4 ,annual report to ,congress 7a7 ,in general ,the ,president shall submit to ,congress1 by ,december #ca of each year1 a report on the implementation of this subtitle during the preceding fiscal year4 ,the report shall include a review of-- 7#a7 the effect of controls imposed under this subtitle on exports1 reexports1 and transfers of items in addressing threats to the national security or foreign policy of the ,united ,states1 including a description of licensing processing times2 7#b7 the impact of such controls on the scientific and technological leadership of the ,united ,states2 7#c7 the consistency with such controls of export controls imposed by other countries2 7#d7 efforts to provide exporters with compliance assistance1 including specific actions to assist small- and medium-sized businesses2 7#e7 a summary of regulatory changes from the prior fiscal year2 7#f7 a summary of export enforcement actions1 including of actions taken to implement end-use monitoring of dual-use1 military1 and other items subject to the ,export ,administration ,regulations2 7#g7 a summary of approved license applications to proscribed persons2 7#h7 efforts undertaken within the previous year to comply with the requirements of section #hai1 including any critical technologies identified under such section and how or whether such critical technologies were controlled for export2 and 7#i7 a summary of industrial base assessments conducted during the previous year by the ,department of ,commerce1 including with respect to counterfeit electronics1 foundational technologies1 and other research and analysis of critical technologies and industrial capabilities of key defense-related sectors4 7b7 ,form ,the report required under subsection 7a7 shall be submitted in unclassified form1 but may contain a classified annex4 #hbf4 ,repeal 7a7 ,in general ,the ,export ,administration ,act of #aigi 7#ej ,u4,s4,c4 ,app4 #bdja et seq47 7as continued in effect pursuant to the ,international ,emergency ,economic ,powers ,act7 is repealed4 7b7 ,implementation ,the ,president shall implement the amendment made by subsection 7a7 by exercising the authorities of the ,president under the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq474 #hbg4 ,effect on other ,acts 7a7 ,in general ,except as otherwise provided in this subtitle1 nothing contained in this subtitle shall be construed to modify1 repeal1 supersede1 or otherwise affect the provisions of any other laws authorizing control over exports1 reexports1 or transfers of any item1 or activities of ,united ,states persons subject to the ,export ,administration ,regulations4 7b7 ,coordination of controls 7#a7 ,in general ,the authority granted to the ,president under this subtitle shall be exercised in such manner so as to achieve effective coordination with all export control and sanctions authorities exercised by ,federal departments and agencies delegated with authority under this subtitle1 particularly the ,department of ,state1 the ,department of the ,treasury1 and the ,department of ,energy4 7#b7 ,sense of ,congress ,it is the sense of ,congress that in order to achieve effective coordination described in paragraph 7#a71 such ,federal departments and agencies-- 7,a7 should continuously work to create enforceable regulations with respect to the export1 reexport1 and transfer by ,united ,states and foreign persons of commodities1 software1 technology1 and services to various end uses and end users for foreign policy and national security reasons2 7,b7 should regularly work to reduce complexity in the system1 including complexity caused merely by the existence of structural1 definitional1 and other non-policy based differences between and among different export control and sanctions systems2 and 7,c7 should coordinate controls on items exported1 reexported1 or transferred in connection with a foreign military sale under chapter #b of the ,arms ,export ,control ,act or a commercial sale under section #ch of the ,arms ,export ,control ,act to reduce as much unnecessary administrative burden as possible that is a result of differences between the exercise of those two authorities4 7c7 ,nonproliferation controls ,nothing in this subtitle shall be construed to supersede the procedures published by the ,president pursuant to section #cji7;c7 of the ,nuclear ,non-,proliferation ,act of #aigh4 #hbh4 ,transition provisions 7a7 ,in general ,all delegations1 rules1 regulations1 orders1 determinations1 licenses1 or other forms of administrative action that have been made1 issued1 conducted1 or allowed to become effective under the ,export ,administration ,act of #aigi 7as in effect on the day before the date of the enactment of this ,act and as continued in effect pursuant to the ,international ,emergency ,economic ,powers ,act71 or the ,export ,administration ,regulations1 and are in effect as of the date of the enactment of this ,act1 shall continue in effect according to their terms until modified1 superseded1 set aside1 or revoked under the authority of this subtitle4 7b7 ,administrative and judicial proceedings ,this subtitle shall not affect any administrative or judicial proceedings commenced1 or any applications for licenses made1 under the ,export ,administration ,act of #aigi 7as in effect on the day before the date of the enactment of this ,act and as continued in effect pursuant to the ,international ,emergency ,economic ,powers ,act71 or the ,export ,administration ,regulations4 7c7 ,certain determinations and references 7#a7 ,state sponsors of terrorism ,any determination that was made under section #f7;j7 of the ,export ,administration ,act of #aigi 7as in effect on the day before the date of the enactment of this ,act and as continued in effect pursuant to the ,international ,emergency ,economic ,powers ,act7 shall continue in effect as if the determination had been made under section #had7;c7 of this ,act4 7#b7 ,reference ,any reference in any other provision of law to a country the government of which the ,secretary of ,state has determined1 for purposes of section #f7;j7 of the ,export ,administration ,act of #aigi 7as in effect on the day before the date of the enactment of this ,act and as continued in effect pursuant to the ,international ,emergency ,economic ,powers ,act71 is a government that has repeatedly provided support for acts of international terrorism shall be deemed to refer to a country the government of which the ,secretary of ,state has determined1 for purposes of section #had7;c71 is a government that has repeatedly provided support for acts of international terrorism4 ,b ,anti-,boycott ,act of #bjah #hca4 ,short title ,this subtitle may be cited as the ,anti-,boycott ,act of #bjah4 #hcb4 ,statement of policy ,congress declares it is the policy of the ,united ,states-- 7#a7 to oppose restrictive trade practices or boycotts fostered or imposed by any foreign country against other countries friendly to the ,united ,states or against any ,united ,states person2 7#b7 to encourage and1 in specified cases1 require ,united ,states persons engaged in the export of goods or technology or other information to refuse to take actions1 including furnishing information or entering into or implementing agreements1 which have the effect of furthering or supporting the restrictive trade practices or boycotts fostered or imposed by any foreign country against a country friendly to the ,united ,states or any ,united ,states person2 and 7#c7 to foster international cooperation and the development of international rules and institutions to assure reasonable access to world supplies4 #hcc4 ,foreign boycotts 7a7 ,prohibitions and exceptions 7#a7 ,prohibitions ,for the purpose of implementing the policies set forth in section #hcb1 the ,president shall issue regulations prohibiting any ,united ,states person1 with respect to that person's activities in the interstate or foreign commerce of the ,united ,states1 from taking or knowingly agreeing to take any of the following actions with intent to comply with1 further1 or support any boycott fostered or imposed by any foreign country1 against a country which is friendly to the ,united ,states and which is not itself the object of any form of boycott pursuant to ,united ,states law or regulation3 7,a7 ,refusing1 or requiring any other person to refuse1 to do business with or in the boycotted country1 with any business concern organized under the laws of the boycotted country1 with any national or resident of the boycotted country1 or with any other person1 pursuant to an agreement with1 a requirement of1 or a request from or on behalf of the boycotting country4 ,the mere absence of a business relationship with or in the boycotted country with any business concern organized under the laws of the boycotted country1 with any national or resident of the boycotted country1 or with any other person1 does not indicate the existence of the intent required to establish a violation of regulations issued to carry out this subparagraph4 7,b7 ,refusing1 or requiring any other person to refuse1 to employ or otherwise discriminating against any ,united ,states person on the basis of race1 religion1 sex1 or national origin of that person or of any owner1 officer1 director1 or employee of such person4 7,c7 ,furnishing information with respect to the race1 religion1 sex1 or national origin of any ,united ,states person or of any owner1 officer1 director1 or employee of such person4 7,d7 ,furnishing information about whether any person has1 has had1 or proposes to have any business relationship 7including a relationship by way of sale1 purchase1 legal or commercial representation1 shipping or other transport1 insurance1 investment1 or supply7 with or in the boycotted country1 with any business concern organized under the laws of the boycotted country1 with any national or resident of the boycotted country1 or with any other person which is known or believed to be restricted from having any business relationship with or in the boycotting country4 ,nothing in this subparagraph shall prohibit the furnishing of normal business information in a commercial context as defined by the ,secretary4 7,e7 ,furnishing information about whether any person is a member of1 has made contributions to1 or is otherwise associated with or involved in the activities of any charitable or fraternal organization which supports the boycotted country4 7,f7 ,paying1 honoring1 confirming1 or otherwise implementing a letter of credit which contains any condition or requirement compliance with which is prohibited by regulations issued pursuant to this paragraph1 and no ,united ,states person shall1 as a result of the application of this paragraph1 be obligated to pay or otherwise honor or implement such letter of credit4 7#b7 ,exceptions ,regulations issued pursuant to paragraph 7#a7 shall provide exceptions for-- 7,a7 complying or agreeing to comply with requirements-- 7i7 prohibiting the import of goods or services from the boycotted country or goods produced or services provided by any business concern organized under the laws of the boycotted country or by nationals or residents of the boycotted country2 or 7ii7 prohibiting the shipment of goods to the boycotting country on a carrier of the boycotted country1 or by a route other than that prescribed by the boycotting country or the recipient of the shipment2 7,b7 complying or agreeing to comply with import and shipping document requirements with respect to the country of origin1 the name of the carrier and route of shipment1 the name of the supplier of the shipment or the name of the provider of other services1 except that no information knowingly furnished or conveyed in response to such requirements may be stated in negative1 blacklisting1 or similar exclusionary terms1 other than with respect to carriers or route of shipment as may be permitted by such regulations in order to comply with precautionary requirements protecting against war risks and confiscation2 7,c7 complying or agreeing to comply in the normal course of business with the unilateral and specific selection by a boycotting country1 or national or resident thereof1 of carriers1 insurers1 suppliers of services to be performed within the boycotting country or specific goods which1 in the normal course of business1 are identifiable by source when imported into the boycotting country2 7,d7 complying or agreeing to comply with export requirements of the boycotting country relating to shipments or transshipments of exports to the boycotted country1 to any business concern of or organized under the laws of the boycotted country1 or to any national or resident of the boycotted country2 7,e7 compliance by an individual or agreement by an individual to comply with the immigration or passport requirements of any country with respect to such individual or any member of such individual's family or with requests for information regarding requirements of employment of such individual within the boycotting country2 and 7,f7 compliance by a ,united ,states person resident in a foreign country or agreement by such person to comply with the laws of that country with respect to his activities exclusively therein1 and such regulations may contain exceptions for such resident complying with the laws or regulations of that foreign country governing imports into such country of trademarked1 trade named1 or similarly specifically identifiable products1 or components of products for his own use1 including the performance of contractual services within that country1 as may be defined by such regulations4 7#c7 ,special rules ,regulations issued pursuant to paragraphs 7#b77;,c7 and 7#b77;,f7 shall not provide exceptions from paragraphs 7#a77;,b7 and 7#a77;,c74 7#d7 ,rule of construction ,nothing in this subsection may be construed to supersede or limit the operation of the antitrust or civil rights laws of the ,united ,states4 7#e7 ,application ,this section shall apply to any transaction or activity undertaken1 by or through a ,united ,states person or any other person1 with intent to evade the provisions of this section as implemented by the regulations issued pursuant to this subsection1 and such regulations shall expressly provide that the exceptions set forth in paragraph 7#b7 shall not permit activities or agreements 7expressed or implied by a course of conduct1 including a pattern of responses7 otherwise prohibited1 which are not within the intent of such exceptions4 7b7 ,foreign policy controls 7#a7 ,in general ,in addition to the regulations issued pursuant to subsection 7a71 regulations issued under subtitle ,a to carry out the policies set forth in section #hab7a77;,d7 shall implement the policies set forth in this section4 7#b7 ,requirements ,such regulations shall require that any ,united ,states person receiving a request for the furnishing of information1 the entering into or implementing of agreements1 or the taking of any other action referred to in subsection 7a7 shall report that fact to the ,secretary1 together with such other information concerning such request as the ,secretary may require for such action as the ,secretary considers appropriate for carrying out the policies of that section4 ,such person shall also report to the ,secretary whether such person intends to comply and whether such person has complied with such request4 ,any report filed pursuant to this paragraph shall be made available promptly for public inspection and copying1 except that information regarding the quantity1 description1 and value of any goods or technology to which such report relates may be kept confidential if the ,secretary determines that disclosure thereof would place the ,united ,states person involved at a competitive disadvantage4 ,the ,secretary shall periodically transmit summaries of the information contained in such reports to the ,secretary of ,state for such action as the ,secretary of ,state1 in consultation with the ,secretary1 considers appropriate for carrying out the policies set forth in section #hcb4 7c7 ,preemption ,the provisions of this section and the regulations issued pursuant thereto shall preempt any law1 rule1 or regulation of any of the several ,states or the ,district of ,columbia1 or any of the territories or possessions of the ,united ,states1 or of any governmental subdivision thereof1 which law1 rule1 or regulation pertains to participation in1 compliance with1 implementation of1 or the furnishing of information regarding restrictive trade practices or boycotts fostered or imposed by foreign countries against other countries friendly to the ,united ,states4 #hcd4 ,enforcement 7a7 ,criminal penalty ,a person who willfully commits1 willfully attempts to commit1 or willfully conspires to commit1 or aids or abets in the commission of1 an unlawful act section #hcc-- 7#a7 shall1 upon conviction1 be fined not more than #a1jjj1jjj2 or 7#b7 if a natural person1 may be imprisoned for not more than #bj years1 or both4 7b7 ,civil penalties ,the ,president may impose the following civil penalties on a person who violates section #hcc or any regulation issued under this subtitle3 7#a7 ,a fine of not more than #cjj1jjj or an amount that is twice the value of the transaction that is the basis of the violation with respect to which the penalty is imposed1 whichever is greater4 7#b7 ,revocation of a license issued under title ,i to the person4 7#c7 ,a prohibition on the person's ability to export1 reexport1 or transfer any items controlled under subtitle ,a4 7c7 ,procedures ,any civil penalty or administrative sanction 7including any suspension or revocation of authority to export7 under this section may be imposed only after notice and opportunity for an agency hearing on the record in accordance with sections #eed through #eeg of title #e1 ,united ,states ,code1 and shall be subject to judicial review in accordance with chapter #g of such title4 7d7 ,standards for levels of civil penalty ,the ,president may by regulation provide standards for establishing levels of civil penalty under this section based upon factors such as the seriousness of the violation1 the culpability of the violator1 and the violator's record of cooperation with the ,government in disclosing the violation4 ,c ,sanctions ,regarding ,missile ,proliferation and ,chemical and ,biological ,weapons ,proliferation #hda4 ,missile proliferation control violations 7a7 ,violations by ,united ,states persons 7#a7 ,sanctions 7,a7 ,sanctionable activity ,the ,president shall impose the applicable sanctions described in subparagraph 7,b7 if the ,president determines that a ,united ,states person knowingly-- 7i7 exports1 reexports1 or transfers of any item on the ,,mtcr ,annex1 in violation of the provisions of section #ch 7#bb ,u4,s4,c4 #bggh7 or chapter #g of the ,arms ,export ,control ,act1 subtitle ,a1 or any regulations or orders issued under any such provisions2 or 7ii7 conspires to or attempts to engage in such export1 reexport1 or transfer4 7,b7 ,sanctions ,the sanctions that apply to a ,united ,states person under subparagraph 7,a7 are the following3 7i7 ,if the item on the ,,mtcr ,annex involved in the export1 reexport1 or transfer is missile equipment or technology within category ,,ii of the ,,mtcr ,annex1 then the ,president shall deny to such ,united ,states person1 for a period of #b years1 licenses for the transfer of missile equipment or technology controlled under subtitle ,a4 7ii7 ,if the item on the ,,mtcr ,annex involved in the export1 reexport1 or transfer is missile equipment or technology within category ,i of the ,,mtcr ,annex1 then the ,president shall deny to such ,united ,states person1 for a period of not less than #b years1 all licenses for items the transfer of which is controlled under subtitle ,a4 7#b7 ,discretionary sanctions ,in the case of any determination referred to in paragraph 7#a71 the ,president may pursue any other appropriate penalties under section #hbj4 7#c7 ,waiver ,the ,president may waive the imposition of sanctions under paragraph 7#a7 on a person with respect to a product or service if the ,president certifies to the ,congress that-- 7,a7 the product or service is essential to the national security of the ,united ,states2 and 7,b7 such person is a sole source supplier of the product or service1 the product or service is not available from any alternative reliable supplier1 and the need for the product or service cannot be met in a timely manner by improved manufacturing processes or technological developments4 7b7 ,transfers of missile equipment or technology by foreign persons 7#a7 ,sanctions 7,a7 ,sanctionable activity ,subject to paragraphs 7#c7 through 7#g71 the ,president shall impose the applicable sanctions under subparagraph 7,b7 on a foreign person if the ,president-- 7i7 determines that a foreign person knowingly-- 7,i7 exports1 reexports1 or transfers any ,,mtcr equipment or technology that contributes to the design1 development1 or production of missiles in a country that is not an ,,mtcr adherent and would be1 if it were ,united ,states-origin equipment or technology1 subject to the jurisdiction of the ,united ,states under subtitle ,a2 7,,ii7 conspires to or attempts to engage in such export1 reexport1 or transfer2 or 7,,iii7 facilitates such export1 reexport1 or transfer by any other person2 or 7ii7 has made a determination with respect to the foreign person under section #gc7;a7 of the ,arms ,export ,control ,act4 7,b7 ,sanctions ,the sanctions that apply to a foreign person under subparagraph 7,a7 are the following3 7i7 ,if the item involved in the export1 reexport1 or transfer is within category ,,ii of the ,,mtcr ,annex1 then the ,president shall deny1 for a period of #b years1 licenses for the transfer to such foreign person of missile equipment or technology the transfer of which is controlled under subtitle ,a4 7ii7 ,if the item involved in the export1 reexport1 or transfer is within category ,i of the ,,mtcr ,annex1 then the ,president shall deny1 for a period of not less than #b years1 licenses for the transfer to such foreign person of items the transfer of which is controlled under subtitle ,a4 7#b7 ,inapplicability with respect to ,,mtcr adherents ,paragraph 7#a7 does not apply with respect to-- 7,a7 any export1 reexport1 or transfer that is authorized by the laws of an ,,mtcr adherent1 if such authorization is not obtained by misrepresentation or fraud2 or 7,b7 any export1 reexport1 or transfer of an item to an end user in a country that is an ,,mtcr adherent4 7#c7 ,effect of enforcement actions by ,,mtcr adherents ,sanctions set forth in paragraph 7#a7 may not be imposed under this subsection on a person with respect to acts described in such paragraph or1 if such sanctions are in effect against a person on account of such acts1 such sanctions shall be terminated1 if an ,,mtcr adherent is taking judicial or other enforcement action against that person with respect to such acts1 or that person has been found by the government of an ,,mtcr adherent to be innocent of wrongdoing with respect to such acts4 7#d7 ,waiver and report to ,congress 7,a7 ,waiver authority ,the ,president may waive the application of paragraph 7#a7 to a foreign person if the ,president determines that such waiver is essential to the national security of the ,united ,states4 7,b7 ,notification and report to ,congress ,in the event that the ,president decides to apply the waiver described in subparagraph 7,a71 the ,president shall so notify the appropriate congressional committees not less than #bj working days before issuing the waiver4 ,such notification shall include a report fully articulating the rationale and circumstances which led the ,president to apply the waiver4 7#e7 ,additional waiver ,the ,president may waive the imposition of sanctions under paragraph 7#a7 on a person with respect to a product or service if the ,president certifies to the appropriate congressional committees that-- 7,a7 the product or service is essential to the national security of the ,united ,states2 and 7,b7 such person is a sole source supplier of the product or service1 the product or service is not available from any alternative reliable supplier1 and the need for the product or service cannot be met in a timely manner by improved manufacturing processes or technological developments4 7#f7 ,exceptions ,the ,president shall not apply the sanction under this subsection prohibiting the importation of the products of a foreign person-- 7,a7 in the case of procurement of defense articles or defense services-- 7i7 under existing contracts or subcontracts1 including the exercise of options for production quantities to satisfy requirements essential to the national security of the ,united ,states2 7ii7 if the ,president determines that the person to which the sanctions would be applied is a sole source supplier of the defense articles or defense services1 that the defense articles or defense services are essential to the national security of the ,united ,states1 and that alternative sources are not readily or reasonably available2 or 7iii7 if the ,president determines that such articles or services are essential to the national security of the ,united ,states under defense coproduction agreements or ,,nato ,programs of ,cooperation2 7,b7 to products or services provided under contracts entered into before the date on which the ,president publishes his intention to impose the sanctions2 or 7,c7 to-- 7i7 spare parts2 7ii7 component parts1 but not finished products1 essential to ,united ,states products or production2 7iii7 routine services and maintenance of products1 to the extent that alternative sources are not readily or reasonably available2 or 7iv7 information and technology essential to ,united ,states products or production4 7c7 ,definitions ,in this section3 7#a7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7,a7 the ,committee on ,foreign ,affairs of the ,house of ,representatives2 and 7,b7 the ,committee on ,foreign ,relations and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate4 7#b7 ,defense articles2 defense services ,the terms defense articles and defense services mean those items on the ,united ,states ,munitions ,list as defined in section #dg7g7 of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgid note74 7#c7 ,missile ,the term missile means a category ,i system as defined in the ,,mtcr ,annex4 7#d7 ,missile technology control regime2 ,,mtcr ,the term ,missile ,technology ,control ,regime or ,,mtcr means the policy statement1 between the ,united ,states1 the ,united ,kingdom1 the ,federal ,republic of ,germany1 ,france1 ,italy1 ,canada1 and ,japan1 announced on ,april #af1 #aihg1 to restrict sensitive missile-relevant transfers based on the ,,mtcr ,annex1 and any amendments thereto4 7#e7 ,,mtcr adherent ,the term ,,mtcr adherent means a country that participates in the ,,mtcr or that1 pursuant to an international understanding to which the ,united ,states is a party1 controls ,,mtcr equipment or technology in accordance with the criteria and standards set forth in the ,,mtcr4 7#f7 ,,mtcr annex ,the term ,,mtcr ,annex means the ,guidelines and ,equipment and ,technology ,annex of the ,,mtcr1 and any amendments thereto4 7#g7 ,missile equipment or technology2 ,,mtcr equipment or technology ,the terms missile equipment or technology and ,,mtcr equipment or technology mean those items listed in category ,i or category ,,ii of the ,,mtcr ,annex4 #hdb4 ,chemical and biological weapons proliferation sanctions 7a7 ,imposition of sanctions 7#a7 ,determination by the ,president ,except as provided in subsection 7b77#b71 the ,president shall impose the sanction described in subsection 7c7 if the ,president determines that a foreign person has knowingly and materially contributed-- 7,a7 through the export from the ,united ,states of any item that is subject to the jurisdiction of the ,united ,states under this subtitle2 or 7,b7 through the export from any other country of any item that would be1 if they were ,united ,states goods or technology1 subject to the jurisdiction of the ,united ,states under this subtitle1 to the efforts by any foreign country1 project1 or entity described in paragraph 7#b7 to use1 develop1 produce1 stockpile1 or otherwise acquire chemical or biological weapons4 7#b7 ,countries1 projects1 or entities receiving assistance ,paragraph 7#a7 applies in the case of-- 7,a7 any foreign country that the ,president determines has1 at any time after ,january #a1 #aihj-- 7i7 used chemical or biological weapons in violation of international law2 7ii7 used lethal chemical or biological weapons against its own nationals2 or 7iii7 made substantial preparations to engage in the activities described in clause 7i7 or 7ii72 7,b7 any foreign country whose government is determined for purposes of section #iad7;c7 to be a government that has repeatedly provided support for acts of international terrorism2 or 7,c7 any other foreign country1 project1 or entity designated by the ,president for purposes of this section4 7#c7 ,persons against which sanctions are to be imposed ,a sanction shall be imposed pursuant to paragraph 7#a7 on-- 7,a7 the foreign person with respect to which the ,president makes the determination described in that paragraph2 7,b7 any successor entity to that foreign person2 and 7,c7 any foreign person that is a parent1 subsidiary1 or affiliate of that foreign person if that parent1 subsidiary1 or affiliate knowingly assisted in the activities which were the basis of that determination4 7b7 ,consultations with and actions by foreign government of jurisdiction 7#a7 ,consultations ,if the ,president makes the determinations described in subsection 7a77#a7 with respect to a foreign person1 the ,congress urges the ,president to initiate consultations immediately with the government with primary jurisdiction over that foreign person with respect to the imposition of a sanction pursuant to this section4 7#b7 ,actions by government of jurisdiction ,in order to pursue such consultations with that government1 the ,president may delay imposition of a sanction pursuant to this section for a period of up to #ij days4 ,following such consultations1 the ,president shall impose the sanction unless the ,president determines and certifies to the appropriate congressional committees that the ,government has taken specific and effective actions1 including appropriate penalties1 to terminate the involvement of the foreign person in the activities described in subsection 7a77#a74 ,the ,president may delay imposition of the sanction for an additional period of up to #ij days if the ,president determines and certifies to the ,congress that the government is in the process of taking the actions described in the preceding sentence4 7#c7 ,report to ,congress ,the ,president shall report to the appropriate congressional committees1 not later than #ij days after making a determination under subsection 7a77#a71 on the status of consultations with the appropriate government under this subsection1 and the basis for any determination under paragraph 7#b7 of this subsection that such government has taken specific corrective actions4 7c7 ,sanction 7#a7 ,description of sanction ,the sanction to be imposed pursuant to subsection 7a77#a7 is1 except as provided that the ,united ,states ,government shall not procure1 or enter into any contract for the procurement of1 any goods or services from any person described in subsection 7a77#c74 7#b7 ,exceptions ,the ,president shall not be required to apply or maintain a sanction under this section-- 7,a7 in the case of procurement of defense articles or defense services-- 7i7 under existing contracts or subcontracts1 including the exercise of options for production quantities to satisfy ,united ,states operational military requirements2 7ii7 if the ,president determines that the person or other entity to which the sanctions would otherwise be applied is a sole source supplier of the defense articles or defense services1 that the defense articles or defense services are essential1 and that alternative sources are not readily or reasonably available2 or 7iii7 if the ,president determines that such articles or services are essential to the national security under defense coproduction agreements2 7,b7 to products or services provided under contracts entered into before the date on which the ,president publishes his intention to impose sanctions2 7,c7 to-- 7i7 spare parts2 7ii7 component parts1 but not finished products1 essential to ,united ,states products or production2 or 7iii7 routine servicing and maintenance of products1 to the extent that alternative sources are not readily or reasonably available2 7,d7 to information and technology essential to ,united ,states products or production2 or 7,e7 to medical or other humanitarian items4 7d7 ,termination of sanctions ,a sanction imposed pursuant to this section shall apply for a period of at least #ab months following the imposition of one sanction and shall cease to apply thereafter only if the ,president determines and certifies to the appropriate congressional committees that reliable information indicates that the foreign person with respect to which the determination was made under subsection 7a77#a7 has ceased to aid or abet any foreign government1 project1 or entity in its efforts to acquire chemical or biological weapons capability as described in that subsection4 7e7 ,waiver 7#a7 ,criterion for waiver ,the ,president may waive the application of any sanction imposed on any person pursuant to this section if the ,president determines and certifies to the appropriate congressional committees that such waiver is important to the national security interests of the ,united ,states4 7#b7 ,notification of and report to ,congress ,if the ,president decides to exercise the waiver authority provided in paragraph 7#a71 the ,president shall so notify the appropriate congressional committees not less than #bj days before the waiver takes effect4 ,such notification shall include a report fully articulating the rationale and circumstances which led the ,president to exercise the waiver authority4 7f7 ,definitions ,in this section3 7#a7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7,a7 the ,committee on ,foreign ,affairs of the ,house of ,representatives2 and 7,b7 the ,committee on ,foreign ,relations and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate4 7#b7 ,defense articles2 defense services ,the terms defense articles and defense services mean those items on the ,united ,states ,munitions ,list or are otherwise controlled under the ,arms ,export ,control ,act4 ,d ,administrative authorities #hea4 ,under ,secretary of ,commerce for ,industry and ,security 7a7 ,in general ,the ,president shall appoint1 by and with the advice and consent of the ,senate1 an ,under ,secretary of ,commerce for ,industry and ,security who shall carry out all the functions of the ,secretary under this title and such other provisions of law that relate to the implementation of the dual-use export system4 7b7 ,assistant ,secretaries of ,commerce ,the ,president shall appoint1 by and with the advice and consent of the ,senate1 two ,assistant ,secretaries of ,commerce to assist the ,under ,secretary in carrying out the functions described in paragraph 7#a74 ,passed the ,house of ,representatives ,june #bf1 #bjah4,karen ,l4 ,haas1,clerk ,june #bg1 #bjah,received2 read twice and placed on the calendar