Calendar No. 375

106TH CONGRESS

1ST SESSION H. R. 1883

AN ACT

To provide for the application of measures to foreign persons who transfer to Iran certain goods,

services, or technology, and for other purposes.

NOVEMBER 3, 1999

Read the second time and placed on the calendar
II

Calendar No. 375

106TH CONGRESS

1ST SESSION H. R. 1883

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 15, 1999

Received

NOVEMBER 2, 1999

Read the first time

NOVEMBER 3, 1999

Read the second time and placed on the calendar

AN ACT

To provide for the application of measures to foreign persons

who transfer to Iran certain goods, services, or technology, 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,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Iran Nonproliferation

3 Act of 1999’’.

4 SEC. 2. REPORTS ON PROLIFERATION TO IRAN.

5 (a) REPORTS.—The President shall, at the times

6 specified in subsection (b), submit to the Committee on

7 International Relations of the House of Representatives

8 and the Committee on Foreign Relations of the Senate

9 a report identifying every foreign person with respect to

10 whom there is credible information indicating that that

11 person, on or after January 1, 1999, transferred to Iran—

12 (1) goods, services, or technology listed on—

13 (A) the Nuclear Suppliers Group Guide14 lines for the Export of Nuclear Material, Equip15 ment and Technology (published by the Inter16 national Atomic Energy Agency as Information

17 Circular INFCIRC/254/Rev.3/Part 1, and sub18 sequent revisions) and Guidelines for Transfers

19 of Nuclear-Related Dual-Use Equipment, Mate20 rial, and Related Technology (published by the

21 International Atomic Energy Agency as Infor22 mation Circular INFCIRC/254/Rev.3/Part 2,

23 and subsequent revisions);

24 (B) the Missile Technology Control Regime

25 Equipment and Technology Annex of June 11,

26 1996, and subsequent revisions;
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1 (C) the lists of items and substances relat2 ing to biological and chemical weapons the ex3 port of which is controlled by the Australia

4 Group;

5 (D) the Schedule One or Schedule Two list

6 of toxic chemicals and precursors the export of

7 which is controlled pursuant to the Convention

8 on the Prohibition of the Development, Produc9 tion, Stockpiling and Use of Chemical Weapons

10 and on Their Destruction; or

11 (E) the Wassenaar Arrangement list of

12 Dual Use Goods and Technologies and Muni13 tions list of July 12, 1996, and subsequent revi14 sions; or

15 (2) goods, services, or technology not listed on

16 any list identified in paragraph (1) but which never17 theless would be, if they were United States goods,

18 services, or technology, prohibited for export to Iran

19 because of their potential to make a material con20 tribution to the development of nuclear, biological, or

21 chemical weapons, or of ballistic or cruise missile

22 systems.

23 (b) TIMING OF REPORTS.—The reports under sub24 section (a) shall be submitted not later than 90 days after

25 the date of the enactment of this Act, not later than 6
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1 months after such date of enactment, and not later than

2 the end of each 6-month period thereafter.

3 (c) EXCEPTIONS.—Any foreign person who—

4 (1) was identified in a previous report sub5 mitted under subsection (a) on account of a par6 ticular transfer; or

7 (2) has engaged in a transfer on behalf of, or

8 in concert with, the Government of the United

9 States,

10 is not required to be identified on account of that same

11 transfer in any report submitted thereafter under this sec12 tion, except to the degree that new information has

13 emerged indicating that the particular transfer may have

14 continued, or been larger, more significant, or different

15 in nature than previously reported under this section.

16 (d) SUBMISSION IN CLASSIFIED FORM.—When the

17 President considers it appropriate, reports submitted

18 under subsection (a), or appropriate parts thereof, may

19 be submitted in classified form.

20 SEC. 3. APPLICATION OF MEASURES TO CERTAIN FOREIGN

21 PERSONS.

22 (a) APPLICATION OF MEASURES.—Subject to sec23 tions 4 and 5, the President is authorized to apply with

24 respect to each foreign person identified in a report sub25 mitted pursuant to section 2(a), for such period of time
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1 as he may determine, any or all of the measures described

2 in subsection (b).

3 (b) DESCRIPTION OF MEASURES.—The measures re4 ferred to in subsections (a) are the following:

5 (1) EXECUTIVE ORDER NO. 12938 PROHIBI6 TIONS.—The measures set forth in subsections (b)

7 and (c) of section 4 of Executive Order No. 12938

8 shall be applied with respect to that person.

9 (2) ARMS EXPORT PROHIBITION.—The United

10 States Government shall not sell to that foreign per11 son any item on the United States Munitions List

12 as in effect on August 8, 1995, and shall terminate

13 sales to that person of any defense articles, defense

14 services, or design and construction services under

15 the Arms Export Control Act.

16 (3) DUAL USE EXPORT PROHIBITION.—The

17 President shall deny licenses and suspend existing li18 censes for the transfer to that person of items the

19 export of which is controlled under the Export Ad20 ministration Act of 1979 or the Export Administra21 tion Regulations.

22 (c) EFFECTIVE DATE OF MEASURES.—Measures ap23 plied pursuant to subsection (a) shall be effective with re24 spect to a foreign person no later than—
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1 (1) 90 days after the report identifying the for2 eign person is submitted, if the report is submitted

3 on or before the date required by section 2(b);

4 (2) 90 days after the date required by section

5 2(b) for submitting the report, if the report identi6 fying the foreign person is submitted within 60 days

7 after that date; or

8 (3) on the date that the report identifying the

9 foreign person is submitted, if that report is sub10 mitted more than 60 days after the date required by

11 section 2(b).

12 (d) PUBLICATION IN FEDERAL REGISTER.—The ap13 plication of measures to a foreign person pursuant to sub14 section (a) shall be announced by notice published in the

15 Federal Register.

16 SEC. 4. PROCEDURES IF MEASURES ARE NOT APPLIED.

17 (a) REQUIREMENT TO NOTIFY CONGRESS.—Should

18 the President not exercise the authority of section 3(a)

19 to apply any or all of the measures described in section

20 3(b) with respect to a foreign person identified in a report

21 submitted pursuant to section 2(a), he shall so notify the

22 Committee on International Relations of the House of

23 Representatives and the Committee on Foreign Relations

24 of the Senate no later than the effective date under section

25 3(c) for measures with respect to that person.
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1 (b) WRITTEN JUSTIFICATION.—Any notification sub2 mitted by the President under subsection (a) shall include

3 a written justification describing in detail the facts and

4 circumstances relating specifically to the foreign person

5 identified in a report submitted pursuant to section 2(a)

6 that support the President’s decision not to exercise the

7 authority of section 3(a) with respect to that person.

8 (c) SUBMISSION IN CLASSIFIED FORM.—When the

9 President considers it appropriate, the notification of the

10 President under subsection (a), and the written justifica11 tion under subsection (b), or appropriate parts thereof,

12 may be submitted in classified form.

13 SEC. 5. DETERMINATION EXEMPTING FOREIGN PERSON

14 FROM SECTIONS 3 AND 4.

15 (a) IN GENERAL.—Sections 3 and 4 shall not apply

16 to a foreign person 15 days after the President reports

17 to the Committee on International Relations of the House

18 of Representatives and the Committee on Foreign Rela19 tions of the Senate that the President has determined, on

20 the basis of information provided by that person, or other21 wise obtained by the President, that—

22 (1) the person did not, on or after January 1,

23 1999, knowingly transfer to Iran the goods, services,

24 or technology the apparent transfer of which caused
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1 that person to be identified in a report submitted

2 pursuant to section 2(a);

3 (2) the goods, services, or technology the trans4 fer of which caused that person to be identified in

5 a report submitted pursuant to section 2(a) did not

6 materially contribute to Iran’s efforts to develop nu7 clear, biological, or chemical weapons, or ballistic or

8 cruise missile systems;

9 (3) the person is subject to the primary juris10 diction of a government that is an adherent to one

11 or more relevant nonproliferation regimes, the per12 son was identified in a report submitted pursuant to

13 section 2(a) with respect to a transfer of goods,

14 services, or technology described in section 2(a)(1),

15 and such transfer was made consistent with the

16 guidelines and parameters of all such relevant re17 gimes of which such government is an adherent; or

18 (4) the government with primary jurisdiction

19 over the person has imposed meaningful penalties on

20 that person on account of the transfer of the goods,

21 services, or technology which caused that person to

22 be identified in a report submitted pursuant to sec23 tion 2(a).

24 (b) SUBMISSION IN CLASSIFIED FORM.—When the

25 President considers it appropriate, the determination and
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1 report of the President under subsection (a), or appro2 priate parts thereof, may be submitted in classified form.

3 SEC. 6. RESTRICTION ON EXTRAORDINARY PAYMENTS IN

4 CONNECTION WITH THE INTERNATIONAL

5 SPACE STATION.

6 (a) RESTRICTION ON EXTRAORDINARY PAYMENTS IN

7 CONNECTION WITH THE INTERNATIONAL SPACE STA8 TION.—Notwithstanding any other provision of law, no

9 agency of the United States Government may make ex10 traordinary payments in connection with the International

11 Space Station to the Russian Space Agency, any organiza12 tion or entity under the jurisdiction or control of the Rus13 sian Space Agency, or any other organization, entity, or

14 element of the Government of the Russian Federation, un15 less, during the fiscal year in which the extraordinary pay16 ments in connection with the International Space Station

17 are to be made, the President has made the determination

18 described in subsection (b), and reported such determina19 tion to the Committee on International Relations and the

20 Committee on Science of the House of Representatives

21 and the Committee on Foreign Relations and the Com22 mittee on Commerce, Science, and Transportation of the

23 Senate.

24 (b) DETERMINATION REGARDING RUSSIAN CO25 OPERATION IN PREVENTING PROLIFERATION TO IRAN.—
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1 The determination referred to in subsection (a) is a deter2 mination by the President that—

3 (1) it is the policy of the Government of the

4 Russian Federation to oppose the proliferation to

5 Iran of weapons of mass destruction and missile sys6 tems capable of delivering such weapons;

7 (2) the Government of the Russian Federation

8 (including the law enforcement, export promotion,

9 export control, and intelligence agencies of such gov10 ernment) has demonstrated and continues to dem11 onstrate through the implementation of concrete

12 steps a sustained commitment to seek out and pre13 vent the transfer to Iran of goods, services, and

14 technology that could make a material contribution

15 to the development of nuclear, biological, or chemical

16 weapons, or of ballistic or cruise missile systems, in17 cluding through the imposition of meaningful pen18 alties on persons who make such transfers; and

19 (3) neither the Russian Space Agency, nor any

20 organization or entity under the jurisdiction or con21 trol of the Russian Space Agency, has, during the 1-

22 year period prior to the date of the determination

23 pursuant to this subsection, made transfers to Iran

24 reportable under section 2(a) of this Act (other than
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1 transfers with respect to which a determination pur2 suant to section 5 has been or will be made).

3 (c) PRIOR NOTIFICATION.—Not less than 5 days be4 fore making a determination under subsection (b), the

5 President shall notify the Committee on International Re6 lations and the Committee on Science of the House of

7 Representatives and the Committee on Foreign Relations

8 and the Committee on Commerce, Science, and Transpor9 tation of the Senate of his intention to make such deter10 mination.

11 (d) WRITTEN JUSTIFICATION.—A determination of

12 the President under subsection (b) shall include a written

13 justification describing in detail the facts and cir14 cumstances supporting the President’s conclusion.

15 (e) SUBMISSION IN CLASSIFIED FORM.—When the

16 President considers it appropriate, a determination of the

17 President under subsection (b), a prior notification under

18 subsection (c), and a written justification under subsection

19 (d), or appropriate parts thereof, may be submitted in

20 classified form.

21 (f) EXCEPTION FOR CREW SAFETY.—

22 (1) EXCEPTION.—The National Aeronautics

23 and Space Administration may make extraordinary

24 payments that would otherwise be prohibited under

25 this section to the Russian Space Agency or any or-
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1 ganization or entity under the jurisdiction or control

2 of the Russian Space Agency if the President has

3 notified the Congress in writing that such payments

4 are necessary to prevent the imminent loss of life by

5 or grievous injury to individuals aboard the Inter6 national Space Station.

7 (2) REPORT.—Not later than 30 days after no8 tifying Congress that the National Aeronautics and

9 Space Administration will make extraordinary pay10 ments under paragraph (1), the President shall sub11 mit to Congress a report describing—

12 (A) the extent to which the provisions of

13 subsection (b) had been met as of the date of

14 notification; and

15 (B) the measures that the National Aero16 nautics and Space Administration is taking to

17 ensure that—

18 (i) the conditions posing a threat of

19 imminent loss of life by or grievous injury

20 to individuals aboard the International

21 Space Station necessitating the extraor22 dinary payments are not repeated; and

23 (ii) it is no longer necessary to make

24 extraordinary payments in order to prevent

25 imminent loss of life by or grievous injury
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1 to individuals aboard the International

2 Space Station.

3 (g) SERVICE MODULE EXCEPTION.—(1) The Na4 tional Aeronautics and Space Administration may make

5 extraordinary payments that would otherwise be prohib6 ited under this section to the Russian Space Agency, any

7 organization or entity under the jurisdiction or control of

8 the Russian Space Agency, or any subcontractor thereof

9 for the construction, testing, preparation, delivery, launch,

10 or maintenance of the Service Module if—

11 (A) the President has notified Congress at least

12 5 days before making such payments;

13 (B) no report has been made under section 2

14 with respect to an activity of the entity to receive

15 such payment, and the President has no information

16 of any activity that would require such a report; and

17 (C) the United States will receive goods or serv18 ices of value to the United States commensurate

19 with the value of the extraordinary payments made.

20 (2) For purposes of this subsection, the term ‘‘main21 tenance’’ means activities which cannot be performed by

22 the National Aeronautics and Space Administration and

23 which must be performed in order for the Service Module

24 to provide environmental control, life support, and orbital
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1 maintenance functions which cannot be performed by an

2 alternative means at the time of payment.

3 (3) This subsection shall cease to be effective 60 days

4 after a United States propulsion module is in place at the

5 International Space Station.

6 (h) EXCEPTION.—Notwithstanding subsections (a)

7 and (b), no agency of the United States Government may

8 make extraordinary payments in connection with the

9 International Space Station to any foreign person subject

10 to measures applied pursuant to—

11 (1) section 3 of this Act; or

12 (2) section 4 of Executive Order No. 12938

13 (November 14, 1994), as amended by Executive

14 Order No. 13094 (July 28, 1998).

15 Such payments shall also not be made to any other entity

16 if the agency of the United States Government anticipates

17 that such payments will be passed on to such a foreign

18 person.

19 SEC. 7. DEFINITIONS.

20 For purposes of this Act, the following terms have

21 the following meanings:

22 (1) EXTRAORDINARY PAYMENTS IN CONNEC23 TION WITH THE INTERNATIONAL SPACE STATION.—

24 The term ‘‘extraordinary payments in connection

25 with the International Space Station’’ means pay-
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1 ments in cash or in kind made or to be made by the

2 United States Government—

3 (A) for work on the International Space

4 Station which the Russian Government pledged

5 at any time to provide at its expense; or

6 (B) for work on the International Space

7 Station, or for the purchase of goods or services

8 relating to human space flight, that are not re9 quired to be made under the terms of a con10 tract or other agreement that was in effect on

11 January 1, 1999, as those terms were in effect

12 on such date.

13 (2) FOREIGN PERSON; PERSON.—The terms

14 ‘‘foreign person’’ and ‘‘person’’ mean—

15 (A) a natural person that is an alien;

16 (B) a corporation, business association,

17 partnership, society, trust, or any other non18 governmental entity, organization, or group,

19 that is organized under the laws of a foreign

20 country or has its principal place of business in

21 a foreign country;

22 (C) any foreign governmental entity oper23 ating as a business enterprise; and
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1 (D) any successor, subunit, or subsidiary

2 of any entity described in subparagraph (B) or

3 (C).

4 (3) EXECUTIVE ORDER NO. 12938.—The term

5 ‘‘Executive Order No. 12938’’ means Executive

6 Order No. 12938 as in effect on January 1, 1999.

7 (4) ADHERENT TO RELEVANT NONPROLIFERA8 TION REGIME.—A government is an ‘‘adherent’’ to a

9 ‘‘relevant nonproliferation regime’’ if that

10 government—

11 (A) is a member of the Nuclear Suppliers

12 Group with respect to a transfer of goods, serv13 ices, or technology described in section

14 2(a)(1)(A);

15 (B) is a member of the Missile Technology

16 Control Regime with respect to a transfer of

17 goods, services, or technology described in sec18 tion 2(a)(1)(B), or is a party to a binding inter19 national agreement with the United States that

20 was in effect on January 1, 1999, to control the

21 transfer of such goods, services, or technology

22 in accordance with the criteria and standards

23 set forth in the Missile Technology Control Re24 gime;
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1 (C) is a member of the Australia Group

2 with respect to a transfer of goods, services, or

3 technology described in section 2(a)(1)(C);

4 (D) is a party to the Convention on the

5 Prohibition of the Development, Production,

6 Stockpiling and Use of Chemical Weapons and

7 on Their Destruction with respect to a transfer

8 of goods, services, or technology described in

9 section 2(a)(1)(D); or

10 (E) is a member of the Wassenaar Ar11 rangement with respect to a transfer of goods,

12 services, or technology described in section

13 2(a)(1)(E).

14 (5) ORGANIZATION OR ENTITY UNDER THE JU15 RISDICTION OR CONTROL OF THE RUSSIAN SPACE

16 AGENCY.—(A) The term ‘‘organization or entity

17 under the jurisdiction or control of the Russian

18 Space Agency’’ means an organization or entity

19 that—

20 (i) was made part of the Russian Space

21 Agency upon its establishment on February 25,

22 1992;

23 (ii) was transferred to the Russian Space

24 Agency by decree of the Russian Government

25 on July 25, 1994, or May 12, 1998;
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1 (iii) was or is transferred to the Russian

2 Space Agency by decree of the Russian Govern3 ment at any other time before, on, or after the

4 date of the enactment of this Act; or

5 (iv) is a joint stock company in which the

6 Russian Space Agency has at any time held

7 controlling interest.

8 (B) Any organization or entity described in subpara9 graph (A) shall be deemed to be under the jurisdic10 tion or control of the Russian Space Agency regard11 less of whether—

12 (i) such organization or entity, after being

13 part of or transferred to the Russian Space

14 Agency, is removed from or transferred out of

15 the Russian Space Agency; or

16 (ii) the Russian Space Agency, after hold17 ing a controlling interest in such organization

18 or entity, divests its controlling interest.

Passed the House of Representatives September 14,

1999.

Attest: JEFF TRANDAHL,

Clerk.