China Nonproliferation Act

.--
            (1) Definition.--For purposes of this section, a joint 
        resolution means a resolution introduced by any Member of 
        Congress after the date the notification described in section 3 
        is received, the resolving clause of which contains only the 
        following: ``That Congress does not agree with the 
        justification contained in the notification submitted by the 
        President pursuant to the China Nonproliferation Act on 
        ______________ and that the President shall exercise the 
        mandatory measures under section 4 of the Act and one or all of 
        the tier ____ measures under that Act.''; with the first blank 
        space being filled with the appropriate date and the second 
        blank space being filled with the appropriate tier.
            (2) Referral to committee.--
                    (A) Senate.--A joint resolution introduced in the 
                Senate shall be referred to the Committee on Foreign 
                Relations of the Senate.
                    (B) House of representatives.--A joint resolution 
                introduced in the House of Representatives shall be 
                referred to the Committee on International Relations of 
                the House of Representatives.
                    (C) Reporting.--A joint resolution may not be 
                reported before the 8th day after the date on which the 
                joint resolution is introduced.
            (3) Discharge of committee.--If the committee to which a 
        joint resolution is referred in either House has not reported 
        the joint resolution (or an identical joint resolution) at the 
        end of 15 calendar days during which that House is in 
session after the date on which the joint resolution is introduced--
                    (A) the committee shall be deemed to be discharged 
                from further consideration of the joint resolution; and
                    (B) the joint resolution shall be placed on the 
                appropriate calendar of that House.
            (4) Floor consideration.--
                    (A) In general.--
                            (i) Motion to proceed to consideration.--
                        When the committee to which a joint resolution 
                        is referred in either House has reported, or 
                        has been deemed to be discharged (under 
                        paragraph (3)) from further consideration of, a 
                        joint resolution--
                                    (I) it is at any time thereafter in 
                                order (even though a previous motion to 
                                the same effect has been disagreed to) 
                                for any Member of that House to move to 
                                proceed to the consideration of the 
                                joint resolution; and
                                    (II) all points of order against 
                                the joint resolution (and against 
                                consideration of the joint resolution) 
                                are waived.
                            (ii) Treatment of motion.--A motion under 
                        clause (i)--
                                    (I) is privileged in the Senate and 
                                is highly privileged in the House of 
                                Representatives;
                                    (II) is not debatable; and
                                    (III) is not subject to amendment, 
                                a motion to postpone, or a motion to 
                                proceed to the consideration of other 
                                business.
                            (iii) No motion to reconsider.--A motion to 
                        reconsider the vote by which a motion under 
                        clause (i) is agreed to or disagreed to shall 
                        not be in order.
                            (iv) Agreement to motion.--If a motion 
                        under clause (i) is agreed to, the joint 
                        resolution shall remain the unfinished business 
                        of the House until the House disposes of the 
                        joint resolution.
                    (B) Debate.--
                            (i) Time.--Debate on a joint resolution, 
                        and on all debatable motions and appeals in 
                        connection with consideration of a joint 
                        resolution, shall be limited to not more than 
                        10 hours, which shall be divided equally 
                        between those favoring and those opposing the 
                        joint resolution. A motion further to limit 
                        debate is in order and not debatable.
                            (ii) Amendments and motions out of order.--
                        An amendment to a joint resolution, a motion to 
                        postpone, to proceed to the consideration of 
                        other business, or to recommit such a joint 
                        resolution, or a motion to reconsider the vote 
                        by which such a joint resolution is agreed to 
                        or disagreed to is not in order.
                    (C) Vote on final passage.--A vote on final passage 
                of the joint resolution shall be taken in each House on 
                or before the close of the 15th calendar day during 
                which that House is in session after the resolution is 
                reported by the committee of that House to which it was 
                referred, or after the committee has been discharged 
                from further consideration of the resolution.
                    (D) Rulings of the chair of procedure.--Appeals 
                from the decisions of the Chair relating to the 
                application of the rules of either House to the 
                procedure relating to a joint resolution shall be 
                decided without debate.
            (5) Coordination with action by other house.--
                    (A) In general.--If, before the passage by 1 House 
                of a joint resolution of that House, that House 
                receives from the other House a joint resolution, the 
                procedures stated in this paragraph shall apply.
                    (B) No referral.--The joint resolution of the other 
                House shall not be referred to a committee.
                    (C) Procedure.--With respect to a joint resolution 
                of the House receiving the joint resolution--
                            (i) the procedure in that House shall be 
                        the same as if no joint resolution had been 
                        received from the other House; but
                            (ii) the vote on final passage shall be on 
                        the joint resolution of the other House.
            (6) Rules of the senate and the house of representatives.--
        This subsection is enacted by Congress--
                    (A) as an exercise of the rulemaking power of the 
                Senate and the House of Representatives, respectively; 
                and
                            (i) is deemed a part of the rules of each 
                        House, respectively, but applicable only with 
                        respect to the procedure to be followed in that 
                        House in the case of a joint resolution; and
                            (ii) supersedes other rules only to the 
                        extent that the subsection is inconsistent with 
                        those rules; and
                    (B) with full recognition of the constitutional 
                right of either House to change the rules (so far as 
                the rules relate to the procedure of that House) at any 
                time, in the same manner and to the same extent as in 
                the case of any other rule of that House.

SEC. 7. DETERMINATION EXEMPTING PERSON OR THE PEOPLE'S REPUBLIC OF 
              CHINA FROM SECTIONS 4 AND 5.

    (a) In General.--Sections 4 and 5 shall not apply to a person or to 
the People's Republic of China 15 days after the President reports to 
the Committee on International Relations of the House of 
Representatives, the Committee on Foreign Relations of the Senate, the 
Committee on Armed Services of the Senate, the Select Committee on 
Intelligence of the Senate, and the Committee on Governmental Affairs 
of the Senate, that the President has determined, on the basis of 
information provided by that person, or otherwise obtained by the 
President, that--
            (1) the person did not, on or after January 1, 2000, 
        knowingly transfer to or export from the People's Republic of 
        China the goods, services, or technology the apparent transfer 
        or export of which caused that person to be identified in a 
        report submitted pursuant to section 3(a);
            (2) the person is subject to the primary jurisdiction of a 
        government that is an adherent to one or more relevant 
        nonproliferation regimes, the person was identified in a report 
        submitted pursuant to section 3(a) with respect to a transfer 
        of goods, services, or technology described in section 3(a)(1), 
        and such transfer was made consistent with the guidelines and 
        parameters of all such relevant regimes of which such 
        government is an adherent; or
            (3) it is important to the national security of the United 
        States not to apply the provisions of section 4 or 5.
    (b) Opportunity To Provide Information.--Congress urges the 
President--
            (1) in every appropriate case, to contact in a timely 
        fashion each person identified in each report submitted 
        pursuant to section 3(a), or the government with primary 
        jurisdiction over such person, in order to afford such person 
        or government, the opportunity to provide explanatory, 
        exculpatory, or other additional information with respect to 
        the transfer that caused such person to be identified in a 
        report submitted pursuant to section 3(a); and
            (2) to exercise the authority in subsection (a) in all 
        cases where information obtained from a foreign person 
        identified in a report submitted pursuant to section 3(a), or 
        from the government with primary jurisdiction over such person, 
        establishes that the exercise of such authority is warranted.
    (c) Submission in Classified Form.--The determination and report of 
the President under subsection (a) should be submitted in unclassified 
form, with classified annexes as necessary.

SEC. 8. NOTIFICATION TO SECURITIES COMMISSION OF INCLUSION IN REPORT.

    (a) Definitions.--In this section, the following definitions shall 
apply:
            (1) Commission.--The term ``Commission'' means the 
        Securities and Exchange Commission.
            (2) Registered national securities association.--The term 
        ``registered national securities association'' means an 
        association registered under section 15A(b) of the Securities 
        Exchange Act of 1934 (15 U.S.C. 78o-3(b)).
            (3) Registered national securities exchange.--The term 
        ``registered national securities exchange'' means a national 
        securities exchange registered under 6 of the Securities 
        Exchange Act of 1934 (15 U.S.C. 78f).
            (4) Registration statement.--The term ``registration 
        statement'' has the same meaning as in section 2 of the 
        Securities Act of 1933 (15 U.S.C. 77b).
            (5) Securities laws.--The terms ``securities laws'' and 
        ``security'' have the same meanings as in section 3 of the 
        Securities Exchange Act of 1934 (15 U.S.C. 78c).
    (b) Notification to the Commission.--Each report prepared by the 
President under section 3 shall be transmitted to the Commission at the 
times specified in section 3(b).
    (c) Regulations.--Not later than 6 months after the date of 
enactment of this Act, the Commission shall promulgate regulations--
            (1) to ensure that securities investors are notified of the 
        identity of any person included in a report prepared by the 
        President under section 3, the securities of which are listed, 
        or authorized for listing, on a registered national securities 
        exchange (or tier or segment thereof) or by a registered 
        national securities association; and
            (2) to require each person included in a report of the 
        President under section 3 to provide notice of such inclusion 
        in each written report, statement, or other filing or notice 
        required from that person under the securities laws, 
        including--
                    (A) any registration statement;
                    (B) any annual or quarterly report, statement, or 
                other filing or notice;
                    (C) any proxy, consent, authorization, information 
                statement, or other notice required to be sent to 
                shareholders with respect to any security registered 
                pursuant to the securities laws;
                    (D) any report, statement, or other filing or 
                notice required in connection with an initial public 
                offering; and
                    (E) any report, statement, or other filing required 
                in connection with a merger, acquisition, tender offer, 
                or similar transaction.

Summary: Requires the President to include in the report information: (1) on any action taken by a person identified in a prior annual report that establishes that the person has discontinued, rectified, or mitigated a prior proliferation activity identified under this Act. (2) on measures taken against such persons or against China in response to proliferation activities. And (3) other specified information. Requires submission of such reports in unclassified form, with classified annexes as necessary. Directs the President to apply certain measures for at least 12 months to each person identified in the annual report. Includes among such measures: (1) those set forth Executive Order No. 12938. (2) prohibition of US Government transfers or sales to such person of any item on the US Munitions List, and termination of all sales and after-sale servicing to such person of any defense articles, defense services, or design and construction services under the Arms Export Control Act. (3) denial of licenses, suspension of existing licenses, and termination of all transfers or sales and after-sale servicing for the transfer to such person of any item the export of which is controlled under the Export Administration Act of 1979 or the Export Administration regulations. (4) prohibition of US Government procurement of any goods or services from such person. (5) prohibition of US assistance to such person in the form of grants, loans, credits, guarantees, or otherwise. (6) immediate suspension of any agreements or efforts for the co-development or co-production with such person of any item on the US Munitions List. Sets conditions for the lifting of such measures. Requires the President to apply additional specified tier 1, tier 2, and tier 3 measures against China if certain circumstances exist. Requires one or more tier 2 measures if a person's proliferation activities are not rectified, or a person has engaged in additional proliferation activities, one year after imposition of section (4) measures, and one or more tier 3 measures if similar circumstances exist two years after imposition of section (4) measures. Sets forth procedures for congressional review of any presidential decision not to impose sanctions under this Act, or to exempt a person or China from such sanctions. Mandates imposition of such sanctions if Congress disapproves by joint resolution the President's decision. Requires transmittal to the Securities and Exchange Commission (SEC) of the President's annual report under this Act. Requires the SEC to promulgate regulations to: (1) ensure that securities investors are notified of the identity of any person in the report the securities of which are listed, or authorized for listing, on a registered national securities exchange or by a registered national securities association. And (2) require each person included in such a report to provide notice of such inclusion in each written report, registration statement, or other filing or notice required from that person under the securities laws.