II

103D CONGRESS

1ST SESSION S. 1496

To amend the Export Administration Act of 1979 to provide for updated

indexing standards for emerging technologies, and for other purposes.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 29 (legislative day, SEPTEMBER 27), 1993

Mrs. FEINSTEIN (for herself, Mr. KERRY, and Mrs. MURRAY) introduced the

following bill; which was read twice and referred to the Committee on

Banking, Housing, and Urban Affairs

A BILL

To amend the Export Administration Act of 1979 to provide

for updated indexing standards for emerging technologies, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘High Technology

5 Indexation Act of 1993’’.

6 SEC. 2. INDEXING STANDARDS.

7 Section 5(g) of the Export Administration Act of

8 1979 (50 U.S.C. App. 2404(g)) is amended to read as

9 follows:
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1 ‘‘(g) INDEXING.—

2 ‘‘(1) REMOVAL OF OBSOLETE REQUIRE3 MENTS.—

4 ‘‘(A) IN GENERAL.—In order to ensure

5 that requirements for validated licenses and

6 other licenses authorizing multiple exports are

7 periodically removed as goods or technology

8 subject to such requirements become obsolete

9 with respect to the national security or the poli10 cies of the United States, not later than 6

11 months after the date of enactment of the High

12 Technology Indexation Act of 1993, the Sec13 retary shall establish, in response to rec14 ommendations of technical advisory committees

15 under paragraph (2), indexing standards which

16 provide for increases in the performance levels

17 of goods or technology described in paragraph

18 (2)(A) that are subject to any such licensing re19 quirements.

20 ‘‘(B) EMPHASIS.—The indexing standards

21 required under subparagraph (A) shall empha22 size the technical specifications of goods or

23 technology below which no authority or permis24 sion to export is required.
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1 ‘‘(C) REMOVAL OF CONTROLS.—With re2 spect to goods or technology referred to in sub3 paragraph (B) which no longer require licensing

4 under the increased performance level stand5 ards established in accordance with subpara6 graph (A)—

7 ‘‘(i) the removal of controls on exports

8 of such goods or technology to controlled

9 countries shall be incorporated into United

10 States proposals to all multilateral re11 gimes; and

12 ‘‘(ii) controls under this section on ex13 ports of such goods or technology to coun14 tries other than controlled countries shall

15 be removed, after consultations with the

16 multilateral regimes, as appropriate, un17 less—

18 ‘‘(I) the Secretary, after con19 sultation with the Secretary of De20 fense, the Secretary of State, and the

21 heads of other appropriate executive

22 departments (as defined in section

23 101 of title 5, United States Code),

24 makes a determination that removal

25 of controls on the goods or technology
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1 will permit exports that will be det2 rimental to the national security or

3 the policies of the United States; and

4 ‘‘(II) the Secretary reports that

5 determination in writing, together

6 with a description of the specific an7 ticipated impact on the national secu8 rity or the policies of the United

9 States, to the Committee on Foreign

10 Affairs of the House of Representa11 tives and the Committee on Banking,

12 Housing, and Urban Affairs of the

13 Senate.

14 ‘‘(D) OTHER CONSIDERATIONS.—The Sec15 retary shall also consider, where appropriate,

16 eliminating site visitation requirements for

17 goods and technology from which export con18 trols have been removed under this paragraph.

19 ‘‘(2) RECOMMENDATIONS.—

20 ‘‘(A) IN GENERAL.—In carrying out this

21 subsection, the Secretary shall direct the tech22 nical advisory committees appointed under sub23 section (h) to recommend indexing standards

24 for goods or technology—
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1 ‘‘(i) which are eligible for export

2 under a distribution license;

3 ‘‘(ii) which are eligible for favorable

4 consideration under the rules of the Co5 ordinating Committee;

6 ‘‘(iii) below which exports require only

7 notification of the governments participat8 ing in the Coordinating Committee; and

9 ‘‘(iv) below which no authority or per10 mission to export may be required under

11 this section.

12 ‘‘(B) SUBMISSION AND DETERMINATION

13 OF ACCEPTANCE.—The technical advisory com14 mittees shall submit their recommendations for

15 indexing standards as they are made to the Sec16 retary, who shall determine, not later than 30

17 days after each submission, or not later than 45

18 days after a submission in the event of an ob19 jection by the head of any other executive de20 partment, whether to accept the standards or to

21 refer them back to the appropriate technical ad22 visory committee for further consideration.

23 ‘‘(C) TIMING OF PROPOSALS.—The propos24 als referred to in paragraph (1)(C)(i) shall be

25 made at the next meeting of the Coordinating
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1 Committee, or any other multilateral regime, at

2 which list review is conducted, that is held after

3 the indexing standards established under this

4 subsection are applied to the goods or tech5 nology involved.

6 ‘‘(3) POLICIES.—For purposes of this sub7 section, the term ‘policies of the United States’

8 means foreign policy and the non-proliferation poli9 cies referred to in section 6.’’.

10 SEC. 3. SUPERCOMPUTER EXPORTS.

11 (a) SUPERCOMPUTER EXPORTS AND REEXPORTS.—

12 Section 5(a) of the Export Administration Act of 1979

13 (50 U.S.C. 2404(a)) is amended by adding at the end the

14 following new paragraph:

15 ‘‘(7) SUPERCOMPUTER DEFINITION.—

16 ‘‘(A) PERFORMANCE-BASED INDEXING

17 SYSTEM.—The Secretary shall, not later than 6

18 months after the date of the enactment of this

19 paragraph, publish in the Federal Register a

20 performance-based indexing system in order to

21 ensure that the definition of ‘supercomputer’

22 under paragraph (6)(A) and all controls and se23 curity safeguard procedures applicable to

24 supercomputer exports and reexports are com-
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1 mensurate with technological advances in the

2 supercomputer industry.

3 ‘‘(B) SECURITY SAFEGUARD PROCE4 DURES.—Under the indexing system published

5 in accordance with subparagraph (A), for des6 tinations in any country (other than a con7 trolled country) that is a party to and, as deter8 mined by the President, is adhering to the

9 Treaty on the Non-Proliferation of Nuclear

10 Weapons (done at Washington, London, and

11 Moscow on July 1, 1968) or the Treaty for the

12 Prohibition of Nuclear Weapons in Latin Amer13 ica (done at Mexico on February 14, 1967), no

14 security safeguard procedures may be required

15 in connection with any export or reexport of a

16 supercomputer with a composite theoretical per17 formance at or below approximately 15 percent

18 of the composite theoretical performance of the

19 average of the 2 most powerful supercomputers

20 currently available commercially in the United

21 States or elsewhere.

22 ‘‘(C) ADVISORY COMMITTEE INPUT.—Be23 fore publishing the performance-based indexing

24 system under subparagraph (A), the Secretary

25 shall seek the views of the appropriate technical
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1 advisory committees appointed under subsection

2 (h), and other interested parties.

3 ‘‘(D) REPORTS TO CONGRESS.—Not later

4 than 2 weeks after publication of such system

5 in the Federal Register, the Secretary shall sub6 mit a written report to the Committee on For7 eign Affairs of the House of Representatives

8 and the Committee on Banking, Housing, and

9 Urban Affairs of the Senate, that includes—

10 ‘‘(i) the text of the Federal Register

11 notice;

12 ‘‘(ii) a summary of the views ex13 pressed by the technical advisory commit14 tees and other interested parties with re15 spect to the performance-based indexing

16 system; and

17 ‘‘(iii) a description of how the per18 formance-based indexing system addresses

19 the views of the technical advisory commit20 tees appointed under subsection (h) and

21 other interested parties.

22 ‘‘(E) DEFINITION.—For purposes of this

23 paragraph, the term ‘security safeguard proce24 dures’ means procedures that are required by

25 the Department of Commerce, as a condition of
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1 an authorization to export or reexport a

2 supercomputer, primarily to restrict access to

3 and resale of such supercomputer.’’.

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