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[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1644 Reported in House (RH)]

<DOC>

                                                  Union Calendar No. 55
115th CONGRESS
  1st Session
                                H. R. 1644

                      [Report No. 115-98, Part I]

  To enhance sanctions with respect to transactions relating to North 
                     Korea, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 21, 2017

  Mr. Royce of California (for himself, Mr. Engel, Mr. Yoho, and Mr. 
   Sherman) introduced the following bill; which was referred to the 
Committee on Foreign Affairs, and in addition to the Committees on Ways 
   and Means, Financial Services, Transportation and Infrastructure, 
Oversight and Government Reform, and the Judiciary, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

                             April 28, 2017

   Additional sponsors: Mr. Connolly, Mr. Bera, Mr. Abraham, Ms. Ros-
  Lehtinen, Mr. Cook, Ms. Gabbard, Mr. Wilson of South Carolina, Mr. 
 Keating, Mr. Sires, Mr. Cicilline, Mr. Chabot, Mr. Poe of Texas, Mr. 
  Austin Scott of Georgia, Mr. Guthrie, Mr. Barr, Mr. McCaul, Mr. Ted 
 Lieu of California, Mrs. Wagner, Mrs. Mimi Walters of California, and 
                        Mr. Sam Johnson of Texas

                             April 28, 2017

    Reported from the Committee on Foreign Affairs with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                             April 28, 2017

 The Committees on Ways and Means, Financial Services, Transportation 
and Infrastructure, Oversight and Government Reform, and the Judiciary 
discharged; committed to the Committee of the Whole House on the State 
                 of the Union and ordered to be printed
 [For text of introduced bill, see copy of bill as introduced on March 
                               21, 2017]

_______________________________________________________________________

                                 A BILL

 
  To enhance sanctions with respect to transactions relating to North 
                     Korea, and for other purposes.

 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Korean Interdiction and 
Modernization of Sanctions Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.

  TITLE I--SANCTIONS TO ENFORCE AND IMPLEMENT UNITED NATIONS SECURITY 
                 COUNCIL SANCTIONS AGAINST NORTH KOREA

Sec. 101. Modification and expansion of requirements for the 
                            designation of persons.
Sec. 102. Prohibition on indirect correspondent accounts.
Sec. 103. Limitations on foreign assistance to noncompliant 
                            governments.
Sec. 104. Amendments to enhance inspection authorities.
Sec. 105. Enforcing compliance with United Nations shipping sanctions 
                            against North Korea.
Sec. 106. Report on cooperation between North Korea and Iran.
Sec. 107. Report on implementation of United Nations Security Council 
                            resolutions by other governments.
Sec. 108. Briefing on measures to deny specialized financial messaging 
                            services to designated North Korean 
                            financial institutions.

    TITLE II--SANCTIONS WITH RESPECT TO HUMAN RIGHTS ABUSES BY THE 
                       GOVERNMENT OF NORTH KOREA

Sec. 201. Sanctions for forced labor and slavery overseas of North 
                            Koreans.
Sec. 202. Modifications to sanctions suspension and waiver authorities.
Sec. 203. Reward for informants.
Sec. 204. Determination on designation of North Korea as a state 
                            sponsor of terrorism.

                     TITLE III--GENERAL AUTHORITIES

Sec. 301. Authority to consolidate reports.
Sec. 302. Rule of construction.
Sec. 303. Regulatory authority.
Sec. 304. Limitation on funds.

SEC. 3. DEFINITIONS.

    (a) Amendments to Definitions in the North Korea Sanctions and 
Policy Enhancement Act of 2016.--
            (1) Applicable executive order.--Section 3(1)(A) of the 
        North Korea Sanctions and Policy Enhancement Act of 2016 (22 
        U.S.C. 9202(1)(A)) is amended--
                    (A) by striking ``or Executive Order 13694'' and 
                inserting ``Executive Order 13694''; and
                    (B) by inserting ``or Executive Order 13722 (50 
                U.S.C. 1701 note; relating to blocking the property of 
                the Government of North Korea and the Workers' Party of 
                Korea, and Prohibiting Certain Transactions With 
                Respect to North Korea),'' before ``to the extent''.
            (2) Applicable united nations security council 
        resolution.--Section 3(2)(A) of the North Korea Sanctions and 
        Policy Enhancement Act of 2016 (22 U.S.C. 9202(2)(A)) is 
        amended by striking ``or 2094 (2013)'' and inserting ``2094 
        (2013), 2270 (2016), or 2321 (2016)''.
            (3) Foreign person.--Section 3 of the North Korea Sanctions 
        and Policy Enhancement Act of 2016 (22 U.S.C. 9202) is 
        amended--
                    (A) by redesignating paragraphs (5) through (14) as 
                paragraphs (6) through (15), respectively; and
                    (B) by inserting after paragraph (4) the following 
                new paragraph:
            ``(5) Foreign person.--The term `foreign person' means--
                    ``(A) an individual who is not a United States 
                citizen or an alien lawfully admitted for permanent 
                residence to the United States; or
                    ``(B) an entity that is not a United States 
                person.''.
            (4) Luxury goods.--Paragraph (9) of section 3 of the North 
        Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
        9202), as redesignated by paragraph (3) of this subsection, is 
        amended--
                    (A) in subparagraph (A), by striking ``and'' at the 
                end;
                    (B) in subparagraph (B), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(C) also includes any items so designated under 
                an applicable United Nations Security Council 
                resolution.''.
            (5) North korean person.--Section 3 of the North Korea 
        Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 9202), 
        as amended by paragraph (3) of this subsection, is further 
        amended--
                    (A) by redesignating paragraphs (13) through (15) 
                as paragraphs (14) through (16), respectively; and
                    (B) by inserting after paragraph (12) the following 
                new paragraph:
            ``(13) North korean person.--The term `North Korean person' 
        means--
                    ``(A) a North Korean citizen or national; or
                    ``(B) an entity owned or controlled by the 
                Government of North Korea or by a North Korean citizen 
                or national.''.
    (b) Definitions for Purposes of This Act.--In this Act:
            (1) Applicable united nations security council resolution; 
        luxury goods.--The terms ``applicable United Nations Security 
        Council resolution'' and ``luxury goods'' have the meanings 
        given those terms, respectively, in section 3 of the North 
        Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
        9202), as amended by subsection (a).
            (2) Appropriate congressional committees; government of 
        north korea; united states person.--The terms ``appropriate 
        congressional committees'', ``Government of North Korea'', and 
        ``United States person'' have the meanings given those terms, 
        respectively, in section 3 of the North Korea Sanctions and 
        Policy Enhancement Act of 2016 (22 U.S.C. 9202).
            (3) Foreign person; north korean person.--The terms 
        ``foreign person'' and ``North Korean person'' have the 
        meanings given those terms, respectively, in paragraph (5) and 
        paragraph (13) of section 3 of the North Korea Sanctions and 
        Policy Enhancement Act of 2016 (22 U.S.C. 9202(5) and 
        9202(13)), as added by subsection (a).
            (4) Prohibited weapons program.--The term ``prohibited 
        weapons program'' means--
                    (A) any program related to the development of 
                nuclear, chemical, or biological weapons, and their 
                means of delivery, including ballistic missiles; and
                    (B) any program to develop any related materials 
                with respect to a program described in subparagraph 
                (A).

  TITLE I--SANCTIONS TO ENFORCE AND IMPLEMENT UNITED NATIONS SECURITY 
                 COUNCIL SANCTIONS AGAINST NORTH KOREA

SEC. 101. MODIFICATION AND EXPANSION OF REQUIREMENTS FOR THE 
              DESIGNATION OF PERSONS.

    (a) Expansion of Mandatory Designations.--Section 104(a) of the 
North Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
9214(a)) is amended--
            (1) in paragraph (9), by striking ``; or'' and inserting 
        ``or any defense article or defense service (as such terms are 
        defined in section 47 of the Arms Export Control Act (22 U.S.C. 
        2794));'';
            (2) by redesignating paragraph (10) as paragraph (15);
            (3) by inserting after paragraph (9) the following new 
        paragraphs:
            ``(10) knowingly, directly or indirectly, purchases or 
        otherwise acquires from North Korea any significant amounts of 
        gold, titanium ore, vanadium ore, copper, silver, nickel, zinc, 
        or rare earth minerals;
            ``(11) knowingly, directly or indirectly, sells or 
        transfers to North Korea any significant amounts of rocket, 
        aviation, or jet fuel (except for use by a civilian passenger 
        aircraft outside North Korea, exclusively for consumption 
        during its flight to North Korea or its return flight);
            ``(12) knowingly, directly or indirectly, provides fuel, 
        supplies, or bunkering services to, or facilitates a 
        significant transaction or transactions to operate or maintain, 
        a vessel or aircraft that is designated under an applicable 
        Executive order or an applicable United Nations Security 
        Council resolution, or that is owned or controlled by a person 
        designated under an applicable Executive order or applicable 
        United Nations Security Council resolution;
            ``(13) knowingly, directly or indirectly, insures, 
        registers, facilitates the registration of, or maintains 
        insurance or a registration for, a vessel owned or controlled 
        by the Government of North Korea, except as specifically 
        approved by the United Nations Security Council;
            ``(14) knowingly, directly or indirectly, maintains a 
        correspondent account (as defined in section 201A(d)(1)) with 
        any North Korean financial institution, except as specifically 
        approved by the United Nations Security Council; or''; and
            (4) in paragraph (15), as so redesignated, by striking 
        ``(9)'' and inserting ``(14)''.
    (b) Expansion of Additional Discretionary Designations.--Section 
104(b)(1) of the North Korea Sanctions and Policy Enhancement Act of 
2016 (22 U.S.C. 9214(b)(1)) is amended--
            (1) in subparagraph (A), by striking ``pursuant to an 
        applicable United Nations Security Council resolution;'' and 
        inserting the following: ``pursuant to--
                            ``(i) an applicable United Nations Security 
                        Council resolution;
                            ``(ii) any regulation promulgated under 
                        section 404; or
                            ``(iii) any applicable Executive order;'';
            (2) in subparagraph (B)(iii), by striking ``or'' at the 
        end;
            (3) in subparagraph (C), by striking the period at the end 
        and inserting a semicolon; and
            (4) by adding at the end the following new subparagraphs:
                    ``(D) knowingly, directly or indirectly, purchased 
                or otherwise acquired from the Government of North 
                Korea significant quantities of coal, iron, or iron 
                ore, in excess of the limitations provided in 
                applicable United Nations Security Council resolutions;
                    ``(E) knowingly, directly or indirectly, purchased 
                or otherwise acquired significant types or amounts of 
                textiles from the Government of North Korea;
                    ``(F) knowingly facilitated any transfer of funds 
                or property of the Government of North Korea that 
                materially contributes to any violation of an 
                applicable United National Security Council resolution;
                    ``(G) knowingly, directly or indirectly, 
                facilitated a significant transfer to or from the 
                Government of North Korea of bulk cash, precious 
                metals, gemstones, or other stores of value not 
                described under subsection (a)(10);
                    ``(H) knowingly, directly or indirectly, sold, 
                transferred, or otherwise provided significant amounts 
                of crude oil, condensates, refined petroleum, other 
                types of petroleum or petroleum byproducts, liquified 
                natural gas, or other natural gas resources to the 
                Government of North Korea (except for heavy fuel oil, 
                gasoline, or diesel fuel for humanitarian use or as 
                excepted under subsection (a)(11));
                    ``(I) knowingly, directly or indirectly, engaged 
                in, facilitated, or was responsible for the online 
                commercial activities of the Government of North Korea, 
                including online gambling;
                    ``(J) knowingly, directly or indirectly, purchased 
                or otherwise acquired fishing rights from the 
                Government of North Korea;
                    ``(K) knowingly, directly or indirectly, provided 
                significant telephonic, telegraphic, telecommunications 
                or other data services, in whole or in part, into or 
                out of North Korea, in excess of services needed for 
                humanitarian or diplomatic purposes (other than 
                services that are excepted under section 203(b)(1) of 
                the International Emergency Economic Powers Act (50 
                U.S.C. 1702(b)(1)));
                    ``(L) knowingly, directly or indirectly, purchased 
                or otherwise acquired significant types or amounts of 
                food or agricultural products from the Government of 
                North Korea;
                    ``(M) knowingly, directly or indirectly, engaged 
                in, facilitated, or was responsible for the exportation 
                of workers from North Korea in a manner intended to 
                generate significant revenue, directly or indirectly, 
                for use by the Government of North Korea or by the 
                Workers' Party of Korea;
                    ``(N) knowingly conducted a significant transaction 
                or transactions in North Korea's transportation, 
                mining, energy, or financial services industries; or
                    ``(O) except as specifically approved by the United 
                Nations Security Council, and other than through a 
                correspondent account as described in subsection 
                (a)(14), knowingly facilitated the operation of any 
                branch, subsidiary, or office of a North Korean 
                financial institution.''.
    (c) Mandatory and Discretionary Asset Blocking.--Section 104(c) of 
the North Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
9214(c)) is amended--
            (1) by striking ``of a designated person'' and inserting 
        ``of a person designated under subsection (a)'';
            (2) by striking ``The President'' and inserting the 
        following:
            ``(1) Mandatory asset blocking.--The President''; and
            (3) by adding at the end the following new paragraph:
            ``(2) Discretionary asset blocking.--The President may also 
        exercise such powers, in the same manner and to the same extent 
        described in paragraph (1), with respect to a person designated 
        under subsection (b).''.
    (d) Designation of Additional Persons.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the President shall submit to the 
        appropriate congressional committees a report including a 
        determination as to whether reasonable grounds exist, and an 
        explanation of the reasons for any determination that such 
        grounds do not exist, to designate, pursuant to section 104 of 
        the North Korea Sanctions and Policy Enhancement Act of 2016 
        (22 U.S.C. 9214), as amended by this section, each of the 
        following:
                    (A) The Korea Shipowners' Protection and Indemnity 
                Association, a North Korean insurance company, with 
                respect to facilitating imports, exports, and reexports 
                of arms and related materiel to and from North Korea, 
                or for other activities prohibited by such section 104.
                    (B) Chinpo Shipping Company (Private) Limited, a 
                Singapore corporation, with respect to facilitating 
                imports, exports, and reexports of arms and related 
                materiel to and from North Korea.
                    (C) The Central Bank of the Democratic People's 
                Republic of Korea, with respect to the sale of gold to, 
                the receipt of gold from, or the import or export of 
                gold by the Government of North Korea.
                    (D) Kumgang Economic Development Corporation (KKG), 
                with respect to being an entity controlled by Bureau 39 
                of the Workers' Party of the Government of North Korea.
                    (E) Sam Pa, also known as Xu Jinghua, Xu Songhua, 
                Sa Muxu, Samo, Sampa, or Sam King, and any entities 
                owned or controlled by such individual, with respect to 
                transactions with KKG.
                    (F) The Chamber of Commerce of the Democratic 
                People's Republic of Korea, with respect to the 
                exportation of workers in violation of section 
                104(a)(5) or of section 104(b)(1)(M) of such Act, as 
                amended by subsection (b) of this section.
            (2) Form.--The report submitted under paragraph (1) may 
        contain a classified annex.

SEC. 102. PROHIBITION ON INDIRECT CORRESPONDENT ACCOUNTS.

    (a) In General.--Title II of the North Korea Sanctions and Policy 
Enhancement Act of 2016 (22 U.S.C. 9221 et seq.) is amended by 
inserting after section 201 the following new section:

``SEC. 201A. PROHIBITION ON INDIRECT CORRESPONDENT ACCOUNTS.

    ``(a) In General.--Except as provided in subsection (b), if a 
United States financial institution has or obtains knowledge that a 
correspondent account established, maintained, administered, or managed 
by that institution for a foreign financial institution is being used 
by the foreign financial institution to provide financial services 
indirectly to any person, foreign government, or financial institution 
designated under section 104, the United States financial institution 
shall ensure that such correspondent account is no longer used to 
provide such services.
    ``(b) Exception.--A United States financial institution is 
authorized to process transfers of funds to or from North Korea, or for 
the direct or indirect benefit of any person, foreign government, or 
financial institution that is designated under section 104, only if the 
transfer--
            ``(1) arises from, and is ordinarily incident and necessary 
        to give effect to, an underlying transaction that has been 
        authorized by a specific or general license issued by the 
        Secretary of the Treasury; and
            ``(2) does not involve debiting or crediting a North Korean 
        account.
    ``(c) Definitions.--In this section:
            ``(1) Correspondent account.--The term `correspondent 
        account' has the meaning given that term in section 5318A of 
        title 31, United States Code.
            ``(2) United states financial institution.--The term 
        `United States financial institution' means has the meaning 
        given that term in section 510.310 of title 31, Code of Federal 
        Regulations, as in effect on the date of the enactment of this 
        section.
            ``(3) Foreign financial institution.--The term `foreign 
        financial institution' has the meaning given that term in 
        section 1010.605 of title 31, Code of Federal Regulations, as 
        in effect on the date of the enactment of this section.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
the North Korea Sanctions and Policy Enhancement Act of 2016 is amended 
by inserting after the item relating to section 201 the following new 
item:

``Sec. 201A. Prohibition on indirect correspondent accounts.''.

SEC. 103. LIMITATIONS ON FOREIGN ASSISTANCE TO NONCOMPLIANT 
              GOVERNMENTS.

    Section 203 of the North Korea Sanctions and Policy Enhancement Act 
of 2016 (22 U.S.C. 9223) is amended--
            (1) in subsection (b)--
                    (A) in the heading, by striking ``Transactions in 
                Lethal Military Equipment'' and inserting 
                ``Transactions in Defense Articles or Defense 
                Services'';
                    (B) in paragraph (1), by striking ``that provides 
                lethal military equipment to the Government of North 
                Korea'' and inserting ``that provides to or receives 
                from the Government of North Korea a defense article or 
                defense service, as such terms are defined in section 
                47 of the Arms Export Control Act (22 U.S.C. 2794)''; 
                and
                    (C) in paragraph (2), by striking ``1 year'' and 
                inserting ``2 years'';
            (2) in subsection (d), by striking ``or emergency'' and 
        inserting ``maternal and child health, disease prevention and 
        response, or''; and
            (3) by adding at the end the following new subsection:
    ``(e) Report on Arms Trafficking Involving North Korea.--
            ``(1) In general.--Not later than 180 days after the date 
        of the enactment of this subsection, and every 180 days 
        thereafter for 5 years, the Secretary of State shall submit to 
        the appropriate congressional committees a report that 
        specifically describes the compliance of foreign countries and 
        other foreign jurisdictions with the requirement to curtail the 
        trade described in subsection (b)(1).
            ``(2) Form.--The report required under paragraph (1) shall 
        be submitted in unclassified form but may contain a classified 
        annex.''.

SEC. 104. AMENDMENTS TO ENHANCE INSPECTION AUTHORITIES.

    Title II of the North Korea Sanctions and Policy Enhancement Act of 
2016 (22 U.S.C. 9221 et seq.), as amended by section 102 of this Act, 
is further amended by striking section 205 and inserting the following:

``SEC. 205. ENHANCED INSPECTION AUTHORITIES.

    ``(a) Report Required.--
            ``(1) In general.--Not later than 180 days after the date 
        of the enactment of this section, and annually thereafter for 5 
        years, the President shall submit to the appropriate 
        congressional committees a report--
                    ``(A) identifying the operators of foreign sea 
                ports and airports that have knowingly--
                            ``(i) failed to implement or enforce 
                        regulations to inspect ships, aircraft, cargo, 
                        or conveyances in transit to or from North 
                        Korea, as required by applicable United Nations 
                        Security Council resolutions;
                            ``(ii) facilitated the transfer, 
                        transshipment, or conveyance of significant 
                        types or quantities of cargo, vessels, or 
                        aircraft owned or controlled by persons 
                        designated under applicable United Nations 
                        Security Council resolutions; or
                            ``(iii) facilitated any of the activities 
                        described in section 104(a);
                    ``(B) describing the extent to which the 
                requirements of applicable United Nations Security 
                Council resolutions to de-register any vessel owned, 
                controlled, or operated by the Government of North 
                Korea have been implemented by other foreign countries;
                    ``(C) describing the compliance of the Islamic 
                Republic of Iran with the sanctions mandated in 
                applicable United Nations Security Council resolutions;
                    ``(D) identifying vessels, aircraft, and 
                conveyances owned or controlled by the Reconnaissance 
                General Bureau of the Workers' Party of Korea; and
                    ``(E) describing the diplomatic and enforcement 
                efforts by the President to secure the full 
                implementation of the applicable United Nations 
                Security Council resolutions, as described in 
                subparagraphs (A) through (C).
            ``(2) Form.--The report required under paragraph (1) shall 
        be submitted in unclassified form but may contain a classified 
        annex.
    ``(b) Specific Findings.--Each report required under subsection (a) 
shall include specific findings with respect to the following ports and 
airports:
            ``(1) The ports of Dandong, Dalian, and any other port in 
        the People's Republic of China that the President deems 
        appropriate.
            ``(2) The ports of Abadan, Bandar-e-Abbas, Chabahar, 
        Bandar-e-Khomeini, Bushehr Port, Asaluyeh Port, Kish, Kharg 
        Island, Bandar-e-Lenge, and Khorramshahr, and Tehran Imam 
        Khomeini International Airport, in the Islamic Republic of 
        Iran.
            ``(3) The ports of Nakhodka, Vanino, and Vladivostok, in 
        the Russian Federation.
            ``(4) The ports of Latakia, Banias, and Tartous, and 
        Damascus International Airport, in the Syrian Arab Republic.
    ``(c) Enhanced Security Targeting Requirements.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary of Homeland Security may, using the Automated 
        Targeting System operated by the National Targeting Center of 
        U.S. Customs and Border Protection, require enhanced screening 
        procedures to determine whether physical inspections are 
        warranted of any cargo bound for or landed in the United States 
        that--
                    ``(A) has been transported through a sea port or 
                airport the operator of which has been identified by 
                the President in accordance with subsection (a)(1) as 
                having repeatedly failed to comply with applicable 
                United Nations Security Council resolutions;
                    ``(B) is aboard a vessel or aircraft, or within a 
                conveyance that has, within the last 365 days, entered 
                the territory, waters, or airspace of North Korea, or 
                landed in any of the sea ports or airports of North 
                Korea; or
                    ``(C) is registered by a country or jurisdiction 
                whose compliance has been identified by the President 
                as deficient pursuant to subsection (a)(2).
            ``(2) Exception for food, medicine, and humanitarian 
        shipments.--Paragraph (1) shall not apply to any vessel, 
        aircraft, or conveyance that has entered the territory, waters, 
        or airspace of North Korea, or landed in any of the sea ports 
        or airports of North Korea, exclusively for the purposes 
        described in section 208(b)(3)(B), or to import food, medicine, 
        or supplies into North Korea to meet the humanitarian needs of 
        the North Korean people.
    ``(d) Seizure and Forfeiture.--A vessel, aircraft, or conveyance 
used to facilitate any of the activities described in section 104(a) 
under the jurisdiction of the United States may be seized and forfeited 
under--
            ``(1) chapter 46 of title 18, United States Code; or
            ``(2) part V of title IV of the Tariff Act of 1930 (19 
        U.S.C. 1581 et seq.).''.

SEC. 105. ENFORCING COMPLIANCE WITH UNITED NATIONS SHIPPING SANCTIONS 
              AGAINST NORTH KOREA.

    (a) In General.--The Ports and Waterways Safety Act (33 U.S.C. 1221 
et seq.) is amended by adding at the end the following new section:

``SEC. 16. PROHIBITION ON ENTRY AND OPERATION.

    ``(a) Prohibition.--
            ``(1) In general.--Except as otherwise provided in this 
        section, no vessel described in subsection (b) may enter or 
        operate in the navigable waters of the United States or 
        transfer cargo in any port or place under the jurisdiction of 
        the United States.
            ``(2) Limitation on application.--
                    ``(A) Determination by secretary of state.--
                Paragraph (1) shall not apply with respect to a vessel 
                described in subsection (b)(2) if the Secretary of 
                State determines that the vessel is no longer 
                registered as described in that subsection.
                    ``(B) Notice.--The Secretary of State shall publish 
                a notice in the Federal Register of each determination 
                made under subparagraph (A).
    ``(b) Vessels Described.--A vessel referred to in subsection (a) is 
a foreign vessel for which a notice of arrival is required to be filed 
under section 4(a)(5), and that--
            ``(1) is on the most recent list of vessels published in 
        Federal Register under subsection (c)(2); or
            ``(2) more than 180 days after the publication of such 
        list, is knowingly registered, pursuant to the 1958 Convention 
        on the High Seas entered into force on September 30, 1962, by a 
        government the agents or instrumentalities of which are 
        maintaining a registration of a vessel that is included on such 
        list.
    ``(c) Information and Publication.--The Secretary of the department 
in which the Coast Guard is operating, in consultation with the 
Secretary of State, shall--
            ``(1) maintain timely information on the registrations of 
        all foreign vessels over 300 gross tons that are--
                    ``(A) owned or operated by or on behalf of the 
                Government of North Korea or a North Korean person;
                    ``(B) owned or operated by or on behalf of any 
                country in which a sea port or airport is located, the 
                operator of which the President has identified in the 
                most recent report submitted under section 205(a)(1) of 
                the North Korea Sanctions and Policy Enhancement Act of 
                2016; or
                    ``(C) owned or operated by or on behalf of any 
                country identified by the President as a country that 
                has not complied with the applicable United Nations 
                Security Council resolutions (as such term is defined 
                in section 3 of such Act); and
            ``(2) not later than 180 days after the date of the 
        enactment of this section, and periodically thereafter, publish 
        in the Federal Register a list of the vessels described in 
        paragraph (1).
    ``(d) Notification of Governments.--
            ``(1) In general.--The Secretary of State shall notify each 
        government, the agents or instrumentalities of which are 
        maintaining a registration of a foreign vessel that is included 
        on a list published under subsection (c)(2), not later than 30 
        days after such publication, that all vessels registered under 
        such government's authority are subject to the prohibition 
        under subsection (a).
            ``(2) Additional notification.--In the case of a government 
        that continues to maintain a registration for a vessel that is 
        included on such list after receiving an initial notification 
        under paragraph (1), the Secretary shall issue an additional 
        notification to such government not later than 120 days after 
        the publication of a list under subsection (c)(2).
    ``(e) Notification of Vessels.--Upon receiving a notice of arrival 
under section 4(a)(5) from a vessel described in subsection (b), the 
Secretary of the department in which the Coast Guard is operating shall 
notify the master of such vessel that the vessel may not enter or 
operate in the navigable waters of the United States or transfer cargo 
in any port or place under the jurisdiction of the United States, 
unless--
            ``(1) the Secretary of State has made a determination under 
        subsection (a)(2); or
            ``(2) the Secretary of the department in which the Coast 
        Guard is operating allows provisional entry of the vessel, or 
        transfer of cargo from the vessel, under subsection (f).
    ``(f) Provisional Entry or Cargo Transfer.--Notwithstanding any 
other provision of this section, the Secretary of the department in 
which the Coast Guard is operating may allow provisional entry of, or 
transfer of cargo from, a vessel, if such entry or transfer is 
necessary for the safety of the vessel or persons aboard.
    ``(g) Right of Innocent Passage.--This section shall not be 
construed as authority to restrict the right of innocent passage as 
recognized under international law.
    ``(h) Foreign Vessel Defined.--In this section, the term `foreign 
vessel' has the meaning given that term in section 110 of title 46, 
United States Code.''.
    (b) Conforming Amendments.--
            (1) Special powers.--Section 4(b)(2) of the Ports and 
        Waterways Safety Act (33 U.S.C. 1223(b)(2)) is amended by 
        inserting ``or 16'' after ``section 9''.
            (2) Denial of entry.--Section 13(e) of the Ports and 
        Waterways Safety Act (33 U.S.C. 1232(e)) is amended by striking 
        ``section 9'' and inserting ``section 9 or 16''.

SEC. 106. REPORT ON COOPERATION BETWEEN NORTH KOREA AND IRAN.

    (a) In General.--Not later than 90 days after the date of the 
enactment of this Act, and annually thereafter for 5 years, the 
President shall submit to the appropriate congressional committees a 
report that includes--
            (1) an assessment of the extent of cooperation (including 
        through the transfer of goods, services, or technology) between 
        North Korea and Iran relating to their respective nuclear, 
        ballistic missile development, chemical or biological weapons 
        development, or conventional weapons programs;
            (2) the names of any Iranian or North Korean persons that 
        have knowingly engaged in or directed--
                    (A) the provision of material support to such 
                programs; or
                    (B) the exchange of information between North Korea 
                and Iran with respect to such programs; and
            (3) a determination whether any of the activities described 
        in paragraphs (1) and (2) violate United Nations Security 
        Council Resolution 2231 (2015).
    (b) Form.--The report required under subsection (a) shall be 
submitted in unclassified form but may contain a classified annex.

SEC. 107. REPORT ON IMPLEMENTATION OF UNITED NATIONS SECURITY COUNCIL 
              RESOLUTIONS BY OTHER GOVERNMENTS.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, and every 180 days thereafter for 5 years, the 
President shall submit to the appropriate congressional committees a 
report that evaluates the degree to which the governments of other 
countries have knowingly failed to--
            (1) close the representative offices of persons designated 
        under applicable United Nations Security Council resolutions;
            (2) expel any North Korean nationals, including diplomats, 
        working on behalf of such persons;
            (3) prohibit the opening of new branches, subsidiaries, or 
        representative offices of North Korean financial institutions 
        within the jurisdictions of such governments; or
            (4) expel any representatives of North Korean financial 
        institutions.
    (b) Form.--The report required under subsection (a) shall be 
submitted in unclassified form but may contain a classified annex.

SEC. 108. BRIEFING ON MEASURES TO DENY SPECIALIZED FINANCIAL MESSAGING 
              SERVICES TO DESIGNATED NORTH KOREAN FINANCIAL 
              INSTITUTIONS.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, and every 180 days thereafter for 5 years, the 
President shall provide to the appropriate congressional committees a 
briefing that includes the following information:
            (1) A list of each person or foreign government the 
        President has identified that directly provides specialized 
        financial messaging services to, or enables or facilitates 
        direct or indirect access to such messaging services for, any 
        North Korean financial institution (as such term is defined in 
        section 3 of the North Korea Sanctions and Policy Enhancement 
        Act of 2016 (22 U.S.C. 9202)) designated under an applicable 
        United Nations Security Council resolution.
            (2) A detailed assessment of the status of efforts by the 
        Secretary of the Treasury to work with the relevant authorities 
        in the home jurisdictions of such specialized financial 
        messaging providers to end such provision or access.
    (b) Form.--The briefing required under subsection (a) may be 
classified.

    TITLE II--SANCTIONS WITH RESPECT TO HUMAN RIGHTS ABUSES BY THE 
                       GOVERNMENT OF NORTH KOREA

SEC. 201. SANCTIONS FOR FORCED LABOR AND SLAVERY OVERSEAS OF NORTH 
              KOREANS.

    (a) Sanctions for Trafficking in Persons.--
            (1) In general.--Section 302(b) of the North Korea 
        Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
        9241(b)) is amended--
                    (A) in paragraph (1), by striking ``and'' at the 
                end;
                    (B) in paragraph (2), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) a list of foreign persons that employ North Korean 
        laborers.''.
            (2) Additional determinations; reports.--With respect to 
        any country identified in section 302(b)(2) of the North Korea 
        Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
        9241(b)(2)), as amended by paragraph (1), the report required 
        under section 302(a) of such Act shall--
                    (A) include a determination whether each person 
                identified in section 302(b)(3) of such Act (as amended 
                by paragraph (1)) who is a national or a citizen of 
                such identified country meets the criteria for 
                sanctions under--
                            (i) section 111 of the Trafficking Victims 
                        Protection Act of 2000 (22 U.S.C. 7108) 
                        (relating to the prevention of trafficking in 
                        persons); or
                            (ii) section 104(a) or 104(b)(1) of the 
                        North Korea Sanctions and Policy Enhancement 
                        Act of 2016 (22 U.S.C. 9214(a)), as amended by 
                        section 101 of this Act;
                    (B) be included in the report required under 
                section 110(b) of the Trafficking Victims Protection 
                Act of 2000 (22 U.S.C. 7107(b)) (relating to the annual 
                report on trafficking in persons); and
                    (C) be considered in any determination that the 
                government of such country has made serious and 
                sustained efforts to eliminate severe forms of 
                trafficking in persons, as such term is defined for 
                purposes of the Trafficking Victims Protection Act of 
                2000.
    (b) Sanctions on Foreign Persons That Employ North Korean Labor.--
            (1) In general.--Title III of the North Korea Sanctions and 
        Policy Enhancement Act of 2016 (22 U.S.C. 9241 et seq.) is 
        amended by inserting after section 302 the following new 
        sections:

``SEC. 302A. REBUTTABLE PRESUMPTION APPLICABLE TO GOODS MADE WITH NORTH 
              KOREAN LABOR.

    ``(a) In General.--Except as provided in subsection (b), any goods, 
wares, articles, and merchandise mined, produced, or manufactured 
wholly or in part by the labor of North Korean nationals or citizens 
shall be deemed to be prohibited under section 307 of the Tariff Act of 
1930 (19 U.S.C. 1307) and shall not be entitled to entry at any of the 
ports of the United States.
    ``(b) Exception.--The prohibition described in subsection (a) shall 
not apply if the Commissioner of U.S. Customs and Border Protection 
finds, by clear and convincing evidence, that the goods, wares, 
articles, or merchandise described in such paragraph were not produced 
with convict labor, forced labor, or indentured labor under penal 
sanctions.

``SEC. 302B. SANCTIONS ON FOREIGN PERSONS EMPLOYING NORTH KOREAN LABOR.

    ``(a) In General.--Except as provided in subsection (c), the 
President shall designate any person identified under section 302(b)(3) 
for the imposition of sanctions under subsection (b).
    ``(b) Imposition of Sanctions.--
            ``(1) In general.--The President shall impose the sanctions 
        described in paragraph (2) with respect to any person 
        designated under subsection (a).
            ``(2) Sanctions described.--The sanctions described in this 
        paragraph are sanctions pursuant to the International Emergency 
        Economic Powers Act (50 U.S.C. 1701 et seq.) to block and 
        prohibit all transactions in property and interests in property 
        of a person designated under subsection (a), if such property 
        and interests in property are in the United States, come within 
        the United States, or are or come within the possession or 
        control of a United States person.
    ``(c) Exception.--
            ``(1) In general.--A person may not be designated under 
        subsection (a) if the President certifies to the appropriate 
        congressional committees that the President has received 
        reliable assurances from such person that--
                    ``(A) the employment of North Korean laborers does 
                not result in the direct or indirect transfer of 
                convertible currency, luxury goods, or other stores of 
                value to the Government of North Korea;
                    ``(B) all wages and benefits are provided directly 
                to the laborers, and are held, as applicable, in 
                accounts within the jurisdiction in which they reside 
                in locally denominated currency; and
                    ``(C) the laborers are subject to working 
                conditions consistent with international standards.
            ``(2) Recertification.--Not later than 180 days after the 
        date on which the President transmits to the appropriate 
        congressional committees an initial certification under 
        paragraph (1), and every 180 days thereafter, the President 
        shall--
                    ``(A) transmit a recertification stating that the 
                conditions described in such paragraph continue to be 
                met; or
                    ``(B) if such recertification cannot be 
                transmitted, impose the sanctions described in 
                subsection (b) beginning on the date on which the 
                President determines that such recertification cannot 
                be transmitted.''.
            (2) Clerical amendment.--The table of contents in section 
        1(b) of the North Korea Sanctions and Policy Enhancement Act of 
        2016 is amended by inserting after the item relating to section 
        302 the following new items:

``Sec. 302A. Rebuttable presumption applicable to goods made with North 
                            Korean labor.
``Sec. 302B. Sanctions on foreign persons employing North Korean 
                            labor.''.

SEC. 202. MODIFICATIONS TO SANCTIONS SUSPENSION AND WAIVER AUTHORITIES.

    (a) Exemptions, Waivers, and Removals of Designation.--
            (1) Exemptions.--Section 208(a) of the North Korea 
        Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
        9228(a)) is amended in the matter preceding paragraph (1)--
                    (A) by inserting ``201A,'' after ``104,''; and
                    (B) by inserting ``302A, 302B,'' after ``209,''.
            (2) Humanitarian waiver.--Section 208(b) of the North Korea 
        Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
        9228(b)(1)) is amended--
                    (A) by inserting ``201A,'' after ``104,'' in each 
                place it appears; and
                    (B) by inserting ``302A, 302B,'' after ``209(b),'' 
                in each place it appears.
            (3) Waiver.--Section 208(c) of the North Korea Sanctions 
        and Policy Enhancement Act of 2016 (22 U.S.C. 9228(c)) is 
        amended in the matter preceding paragraph (1)--
                    (A) by inserting ``201A,'' after ``104,''; and
                    (B) by inserting ``302A, 302B,'' after ``209(b),''.
    (b) Support for Family Reunification for Korean-Americans.--Section 
402(2) of the North Korea Sanctions and Policy Enhancement Act of 2016 
(22 U.S.C. 9252(2)) is amended--
            (1) in subparagraph (D), by striking ``and'' at the end;
            (2) in subparagraph (E), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(F) planning for unrestricted family 
                reunification meetings, including for those individuals 
                in the Korean-American community who maintain family 
                ties with relatives in North Korea.''.

SEC. 203. REWARD FOR INFORMANTS.

    Section 36(b) of the State Department Basic Authorities Act of 1956 
(22 U.S.C. 2708(b)), is amended--
            (1) in paragraph (9), by striking ``or'' at the end;
            (2) in paragraph (10), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following new paragraphs:
            ``(11) the identification or location of any person who, 
        while acting at the direction of or under the control of a 
        foreign government, aids or abets a violation of section 1030 
        of title 18, United States Code; or
            ``(12) the disruption of financial mechanisms of any person 
        who has engaged in the conduct described in sections 104(a) or 
        104(b)(1) of the North Korea Sanctions and Policy Enhancement 
        Act of 2016 (22 U.S.C. 2914(a) or (b)(1)).''.

SEC. 204. DETERMINATION ON DESIGNATION OF NORTH KOREA AS A STATE 
              SPONSOR OF TERRORISM.

    (a) Determination.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the Secretary of State shall submit 
        to the appropriate congressional committees a determination 
        whether North Korea meets the criteria for designation as a 
        state sponsor of terrorism.
            (2) Form.--The determination required by paragraph (1) 
        shall be submitted in unclassified form but may include a 
        classified annex, if appropriate.
    (b) State Sponsor of Terrorism Defined.--For purposes of this 
section, the term ``state sponsor of terrorism'' means a country the 
government of which the Secretary of State has determined, for purposes 
of section 6(j) of the Export Administration Act of 1979 (50 U.S.C. 
4605(j)) (as in effect pursuant to the International Emergency Economic 
Powers Act), section 620A of the Foreign Assistance Act of 1961 (22 
U.S.C. 2371), section 40 of the Arms Export Control Act (22 U.S.C. 
2780), or any other provision of law, is a government that has 
repeatedly provided support for acts of international terrorism.

                     TITLE III--GENERAL AUTHORITIES

SEC. 301. AUTHORITY TO CONSOLIDATE REPORTS.

    Any reports required to be submitted to the appropriate 
congressional committees under this Act or any amendment made by this 
Act that are subject to deadlines for submission consisting of similar 
units of time may be consolidated into a single report that is 
submitted to appropriate congressional committees pursuant to the 
earlier of such deadlines. The consolidated reports must contain all 
information required under this Act or any amendment made by this Act, 
in addition to all other elements mandated by previous law.

SEC. 302. RULE OF CONSTRUCTION.

    Nothing in this Act shall be construed to limit the authority or 
obligation of the President to apply the sanctions described in section 
104 of the North Korea Sanctions and Policy Enhancement Act of 2016 (22 
U.S.C. 9214), as amended by section 101 of this Act, with regard to 
persons who meet the criteria for designation under such section, or in 
any other provision of law.

SEC. 303. REGULATORY AUTHORITY.

    (a) In General.--The President shall, not later than 180 days after 
the date of the enactment of this Act, promulgate regulations as 
necessary for the implementation of this Act and the amendments made by 
this Act.
    (b) Notification to Congress.--Not fewer than 10 days before the 
promulgation of a regulation under subsection (a), the President shall 
notify and provide to the appropriate congressional committees the 
proposed regulation, specifying the provisions of this Act or the 
amendments made by this Act that the regulation is implementing.

SEC. 304. LIMITATION ON FUNDS.

    No additional funds are authorized to carry out the requirements of 
this Act or of the amendments made by this Act. Such requirements shall 
be carried out using amounts otherwise authorized.
                                                  Union Calendar No. 55

115th CONGRESS

  1st Session

                               H. R. 1644

                      [Report No. 115-98, Part I]

_______________________________________________________________________

                                 A BILL

  To enhance sanctions with respect to transactions relating to North 
                     Korea, and for other purposes.

_______________________________________________________________________

                             April 28, 2017

    Reported from the Committee on Foreign Affairs with an amendment

                             April 28, 2017

 The Committees on Ways and Means, Financial Services, Transportation 
and Infrastructure, Oversight and Government Reform, and the Judiciary 
discharged; committed to the Committee of the Whole House on the State 
                 of the Union and ordered to be printed
```