To end American subsidization of entities contributing to weapons proliferation.

SECTION 1. PROLIFERATOR DESUBSIDIZATION.

    (a) Annual Report.--The Director of Central Intelligence shall 
submit an annual report to the Members of Congress specified in 
subsection (f) containing the information described in subsection (b). 
The first such report shall be submitted not later than 30 days after 
the date of the enactment of this Act and subsequent reports shall be 
submitted annually thereafter. Each such report shall be submitted in 
classified form.
    (b) Identification of Foreign Entities Transferring Items or 
Technologies.--Each report shall identify each covered entity which 
during the preceding 2 years transferred a controlled item to another 
entity for use in any of the following:
            (1) A missile project of concern (as determined by the 
        Director of Central Intelligence).
            (2) Activities to develop, produce, stockpile, or deliver 
        chemical or biological weapons.
            (3) Nuclear activities in countries that do not maintain 
        full scope International Atomic Energy Agency safeguards or 
        equivalent full scope safeguards.
    (c) Prohibition of Subsidies for Proliferator Entities.--Subject to 
subsection (d), the following shall be applicable with respect to each 
entity identified in the most recent report under subsection (a):
            (1) The Export-Import Bank of the United States may not 
        issue any guarantee, insurance, or extension of credit, or 
        approve any participation in an extension of credit, that would 
        be used to conduct business with that entity.
            (2) The Overseas Private Investment Corporation may not 
        issue any insurance, reinsurance, or guarantee, or provide any 
        financing, that would be used to conduct business with that 
        entity.
            (3) No license may be approved for the transfer to that 
        entity of--
                    (A) any controlled item;
                    (B) any other item for which a validated license is 
                required under section 5, 6(l), or 6(m) of the Export 
                Administration Act of 1979 or for which a validated 
                license is required under that Act pursuant to section 
                309(c) of the Nuclear Non-Proliferation Act of 1978;
                    (C) any other item on the United States Munitions 
                List; or
                    (D) any other item controlled for export under the 
                Atomic Energy Act of 1954.
            (4) The Secretary of Energy may not approve a request under 
        section 57b.(2) of the Atomic Energy Act of 1954 to engage, 
        directly or indirectly, in the production of special nuclear 
        material by that entity.
    (d) Removal of Prohibition.--The prohibition under subsection (c) 
shall cease to apply with respect to an entity if the Director of 
Central Intelligence submits a certification in writing to the Members 
of Congress specified in subsection (f) that the entity has ceased to 
make transfers described in subsection (b) and is unlikely to resume 
such transfers.
    (e) Definitions.--For the purposes of this section:
            (1) Controlled item.--(A) The term ``controlled item'' 
        means any of the following items (including technology):
                    (i) Any item on the MTCR Annex.
                    (ii) An item listed for control by the Australia 
                Group.
                    (iii) Any item listed for control by the Nuclear 
                Suppliers Group.
            (B) Australia group.--The term ``Australia Group'' means 
        the multilateral regime in which the United States participates 
        that seeks to prevent the proliferation of chemical and 
        biological weapons.
            (C)  MTCR annex.--The term ``MTCR Annex'' has the meaning 
        given that term in section 74 of the Arms Export Control Act 
        (22 U.S.C. 2797c).
            (D) Nuclear suppliers' group.--The term ``Nuclear 
        Suppliers' Group'' means the multilateral arrangement in which 
        the United States participates whose purpose is to restrict the 
        transfers of items with relevance to the nuclear fuel cycle or 
        nuclear explosive applications.
            (2) Covered entity.--The term ``covered entity'' means a 
        foreign person, corporation, business association, partnership, 
        society, trust, or other nongovernmental organization or group 
        or any government entity operating as a business. Such term 
        includes any successor to any such entity.
            (3) Missile project.--(A) The term ``missile project'' 
        means a project or facility for the design, development, or 
        manufacture of a missile.
            (B) The term ``missile'' has the meaning given that term in 
        section 74 of the Arms Export Control Act (22 U.S.C. 2797c).
    (f) Specified Members of Congress.--The Members of Congress 
referred to in this subsection are the following:
            (1) The chairman and ranking minority party member of the 
        following committees of the House of Representatives: the 
        Committee on International Relations, the Committee on National 
        Security, the Permanent Select Committee on Intelligence, and 
        the Committee on Appropriations.
            (2) The chairman and ranking minority party member of the 
        following committees of the Senate: the Committee on Foreign 
        Relations, the Committee on Armed Services, the Select 
        Committee on Intelligence, the Committee on Appropriations, and 
        the Committee on Governmental Affairs.

Summary: Requires the Director of Central Intelligence (DCI) to submit to the chairmen and ranking minority members of specified congressional committees an annual report identifying each foreign entity which, during the preceding two years, transferred a controlled item to another entity for: (1) a missile project of concern. (2) activities to develop, produce, stockpile, or deliver chemical or biological weapons. Or (3) nuclear activities in countries that do not maintain full International Atomic Energy Agency safeguards or equivalent full scope safeguards. Prohibits certain economic and export subsidies with respect to identified countries. Waives such prohibition if the DCI certifies to such members that the entity has ceased to make such transfers and is unlikely to resume doing so.