I

107TH CONGRESS

1ST SESSION H. R. 1707

To provide that the Secretary of Commerce has jurisdiction over exports

of commercial satellites and related items, to provide certain procedures

for exports of commercial satellites and related items, and for other

purpose.

IN THE HOUSE OF REPRESENTATIVES

MAY 3, 2001

Mr. BERMAN (for himself and Mr. ROHRABACHER) introduced the following

bill; which was referred to the Committee on International Relations, and

in addition to the Committee on Armed Services, 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

A BILL

To provide that the Secretary of Commerce has jurisdiction

over exports of commercial satellites and related items,

to provide certain procedures for exports of commercial

satellites and related items, and for other purpose.

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 ‘‘Satellite Trade and

5 Security Act of 2001’’.
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1 SEC. 2. EXPORT CONTROLS ON SATELLITES AND RELATED

2 ITEMS.

3 Notwithstanding any other provision of law, all sat4 ellites and related items that were on the Commerce Con5 trol List of dual-use items in the Export Administration

6 Regulations (15 C.F.R. part 730 et seq.) on October 16,

7 1998, and any other dual-use communications satellites

8 and related items shall, subject to sections 3, 4, and 5,

9 be controlled under the Export Administration Act of

10 1979 (in effect or as continued in effect under the Inter11 national Emergency Economic Powers Act) or by the Sec12 retary of Commerce under any successor Act to the Export

13 Administration Act of 1979.

14 SEC. 3. EXPORT LICENSE PROCEDURES.

15 (a) REFERRAL TO OTHER DEPARTMENTS AND

16 AGENCIES.—The Secretary of Commerce (in this Act re17 ferred to as the ‘‘Secretary’’) shall refer to the Secretary

18 of Defense, the Secretary of State, and the heads of other

19 departments and agencies that the Secretary considers ap20 propriate, all applications for licenses to export satellites

21 and related items.

22 (b) REQUIRED CONSULTATIONS WITH INTEL23 LIGENCE COMMUNITY.—The Secretary, the Secretary of

24 Defense and the Secretary of State, as appropriate, shall

25 consult with the Director of Central Intelligence during

26 the review of any application for a license involving the
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1 overseas launch of a commercial satellite of United States

2 origin.

3 (c) TIME PERIOD FOR REFERRALS.—Within 30 days

4 after the Secretary refers an export license application

5 under this section, each department or agency to which

6 an export license application has been referred shall pro7 vide the Secretary with a recommendation to either ap8 prove or deny the license application. A department or

9 agency that fails to provide a recommendation within that

10 30-day period shall be deemed to have no objection to the

11 decision of the Secretary on the license application.

12 (d) INTERAGENCY DISPUTE RESOLUTION PROC13 ESS.—If there is no agreement among the Secretary, the

14 Secretary of Defense, and the Secretary of State to issue

15 or deny a license to which this section applies, then the

16 Secretary shall refer the license application to an inter17 agency dispute resolution process established by the Presi18 dent. The dispute resolution process shall be completed

19 within a period of 60 days. A license pursuant to the appli20 cation shall not be issued or denied until the Secretary,

21 the Secretary of Defense, and the Secretary of State agree

22 to issue or deny the license, or until the President makes

23 a determination to issue or deny the license.
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1 SEC. 4. NATIONAL SECURITY CONTROLS ON SATELLITE EX2 PORTS TO CERTAIN DESTINATIONS.

3 Notwithstanding any other provision of law, the fol4 lowing shall apply to all licenses to export satellites or re5 lated items for launch in, or by nationals of, any country

6 that is not a member of the North Atlantic Treaty Organi7 zation or a major non-NATO ally of the United States:

8 (1) MANDATORY TECHNOLOGY CONTROL

9 PLANS.—All export licenses shall require a tech10 nology transfer control plan approved by the Sec11 retary of Defense and an encryption technology

12 transfer control plan approved by the Director of the

13 National Security Agency. The technology transfer

14 control plan shall be prepared by the Department of

15 Defense and the licensee, and shall set forth security

16 arrangements for the launch of the satellite, both be17 fore and during launch operations.

18 (2) MANDATORY MONITORING AND REIMBURSE19 MENT.—

20 (A) MONITORING OF PROPOSED FOREIGN

21 LAUNCH OF SATELLITES.—In any case in which

22 a license is approved for the export of a satellite

23 or related items for launch in a foreign country,

24 the Secretary of Defense shall monitor all as25 pects of the launch in order to ensure that no

26 unauthorized transfer of technology occurs, in-
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1 cluding technical assistance and technical data.

2 The number of persons providing security for

3 the launch of the satellite shall be sufficient to

4 maintain 24-hour, 7-day per week security of

5 the satellite or related items and related launch

6 vehicle and other sensitive technology.

7 (B) CONTENTS OF MONITORING.—The

8 monitoring under subparagraph (A) shall cover,

9 but not be limited to—

10 (i) technical discussions and activities,

11 including the design, development, oper12 ation, maintenance, modification, and re13 pair of satellites, satellite components, mis14 siles, launch facilities, launch vehicles and

15 other related equipment;

16 (ii) satellite processing and launch ac17 tivities, including launch preparation, sat18 ellite transportation, integration of the sat19 ellite with the launch vehicle, testing and

20 checkout prior to launch, satellite launch,

21 and return of equipment to the United

22 States;

23 (iii) activities related to launch fail24 ure, delay, or cancellation, including post25 launch failure investigations; and
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1 (iv) all other aspects of the launch.

2 (C) REIMBURSEMENT.—The Secretary of

3 Defense shall require the licensee to agree to

4 reimburse the Department of Defense for all

5 costs associated with the provision of security

6 for the launch vehicle or related items. All reim7 bursements received under this paragraph shall

8 be credited to current appropriations available

9 for the payment of the costs incurred in pro10 viding such services.

11 (3) MANDATORY STATE DEPARTMENT EXPORT

12 LICENSES FOR POST-CRASH INVESTIGATIONS.—In

13 the event of the failure of a launch from a foreign

14 country of a satellite of United States origin—

15 (A) the activities of United States persons

16 or entities in connection with any subsequent

17 investigation of the failure are subject to the

18 controls established under section 38 of the

19 Arms Export Control Act, including require20 ments for licenses issued by the Secretary of

21 State for participation in that investigation;

22 (B) officials of the Department of Defense

23 shall monitor all activities associated with the

24 investigation to insure against unauthorized

25 transfer of technical data or services; and
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1 (C) the Secretary of Defense shall estab2 lish and implement a technology transfer con3 trol plan for the conduct of the investigation to

4 prevent the transfer of information that could

5 be used by the foreign country to improve its

6 missile or space launch capabilities.

7 (4) MANDATORY NOTIFICATION AND CERTIFI8 CATION.—All technology transfer control plans for

9 satellites or related items shall require any United

10 States person involved in the export of a satellite of

11 United States origin or related items to notify the

12 Department of Defense in advance of all meetings

13 and interactions with any foreign person or entity

14 providing launch services and require the United

15 States person to certify after the launch that it has

16 complied with this notification requirement.

17 (5) MANDATORY INTELLIGENCE COMMUNITY

18 REVIEW.—The Secretary of Commerce shall provide

19 to the Director of Central Intelligence copies of all

20 export license applications and technical assistance

21 agreements submitted for approval in connection

22 with launches of satellites in foreign countries to

23 verify the legitimacy of the stated end-user or end24 users.
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1 (6) MANDATORY SHARING OF APPROVED LI2 CENSES AND AGREEMENTS.—The Secretary of Com3 merce shall provide copies of all approved export li4 censes and technical assistance agreements associ5 ated with launches of satellites in foreign countries

6 to the Secretary of State, the Secretary of Defense,

7 the Secretary of Energy, and the Director of Central

8 Intelligence.

9 (7) MANDATORY NOTIFICATION TO CONGRESS

10 ON LICENSES.—Upon issuing a license for the export

11 of a satellite or related items for launch in a foreign

12 country, the Secretary of Commerce shall so notify

13 Congress.

14 (8) MANDATORY REPORTING ON MONITORING

15 ACTIVITIES.—The Secretary of Defense shall provide

16 to Congress an annual report on the monitoring of

17 all launches in foreign countries of satellites of

18 United States origin.

19 (9) SAFEGUARDS PROGRAM.—The Secretary of

20 Defense shall continue its program to recruit, train

21 and maintain a staff dedicated to monitoring

22 launches in foreign countries of satellites and related

23 items of United States origin.

24 SEC. 5. DEFINITIONS.

25 In this Act:
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1 (1) MAJOR NON-NATO ALLY OF THE UNITED

2 STATES.—The term ‘‘major non-NATO ally of the

3 United States’’ means a country designated as a

4 major non-NATO ally for purposes of the Foreign

5 Assistance Act of 1961.

6 (2) RELATED ITEMS.—The term ‘‘related

7 items’’ means the satellite fuel, ground support

8 equipment, test equipment, payload adapter or inter9 face hardware, replacement parts, and nonembedded

10 solid propellant orbit transfer engines described in

11 the report submitted to Congress by the Department

12 of State on February 6, 1998, pursuant to section

13 38(f) of the Arms Export Control Act (22 U.S.C.

14 2778(f)).

15 (3) UNITED STATES PERSON.—The term

16 ‘‘United States person’’ means any United States

17 resident or national (other than an individual resi18 dent outside the United States and employed by

19 other than a United States person), any domestic

20 concern (including any permanent domestic estab21 lishment of any foreign concern), and any foreign

22 subsidiary or affiliate (including any permanent for23 eign establishment) of any domestic concern which is

24 controlled in fact by such domestic concern, as de25 termined under regulations of the President.
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1 SEC. 6. CONFORMING AMENDMENTS.

2 (a) 1999 NDAA.—(1) Section 1513(a) of the Strom

3 Thurmond National Defense Authorization Act for Fiscal

4 Year 1999 (22 U.S.C. 2778 note) is repealed.

5 (2) Section 1513(c) of that Act is amended by strik6 ing ‘‘(1) Subsection (a)’’ and all that follows through

7 ‘‘(2)’’.

8 (3) Section 1514 of that Act, and the item relating

9 to that section in the table of contents of that Act, are

10 repealed.

11 (b) 2000 NDAA.—(1) Section 1404 of the National

12 Defense Authorization Act for Fiscal Year 2000 (22

13 U.S.C. 2778 note) is amended—

14 (A) in the matter preceding paragraph (1), by

15 striking ‘‘1514 of the Strom Thurmond National

16 Defense Authorization Act for Fiscal Year 1999 (22

17 U.S.C. 2778 note)’’ and inserting ‘‘4 of the Satellite

18 Trade and Security Act of 2001’’; and

19 (B) in paragraph (1), by striking ‘‘1514(a)(1)

20 of the Strom Thurmond National Defense Author21 ization Act for Fiscal Year 1999 (22 U.S.C. 2778

22 note)’’ and inserting ‘‘section 4(1) of the Satellite

23 Trade and Security Act of 2001’’.

24 (2) Section 1409 of that Act (22 U.S.C. 2278 note)

25 is amended—
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1 (A) in subsection (a)(7), in the matter pre2 ceding subparagraph (A), by striking

3 ‘‘1514(a)(2)(A) of the Strom Thurmond National

4 Defense Authorization Act for Fiscal Year 1999

5 (Public Law 105–261; 112 Stat. 2175; 22 U.S.C.

6 2778 note)’’ and inserting ‘‘4(2)(C) of the Satellite

7 Trade and Security Act of 2001’’; and

8 (B) in subsection (b)(1), by striking

9 ‘‘1514(a)(8) of the Strom Thurmond National De10 fense Authorization Act for Fiscal Year 1999’’ and

11 inserting ‘‘4(8) of the Satellite Trade and Security

12 Act of 2001’’.

13 (3) Section 1410 of that Act, and the item relating

14 to that section in the table of contents of that Act, are

15 repealed.

16 (4) Section 1411 of that Act is amended—

17 (A) by striking subsection (a); and

18 (B) by redesignating subsections (b) and (c) as

19 subsections (a) and (b), respectively.

20 (5) Section 1412(d) of that Act is amended by strik21 ing ‘‘Secretary of State’’ and inserting ‘‘Secretary of Com22 merce’’.

23 (c) ADDITIONAL CONFORMING AMENDMENTS.—(1)

24 Section 1309 of the Admiral James W. Nance and Meg

25 Donovan Foreign Relations Authorization Act, Fiscal
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1 Years 2000 and 2001 (as enacted by Public Law 106–

2 113; 113 Stat. 1501A–460) is amended—

3 (A) by amending the section heading to read as

4 follows:

5 ‘‘SEC. 1309. OFFICE OF DEFENSE TRADE CONTROLS.’’;

6 (B) by striking subsections (a) and (c); and

7 (C) in subsection (b), by striking ‘‘(b) FINAN8 CIAL AND PERSONNEL RESOURCES.—’’.

9 (2) The table of contents of that Act is amended by

10 striking the item relating to section 1309 and inserting

11 the following:

‘‘Sec. 1309. Office of Defense Trade Controls.’’.

12 SEC. 7. EFFECTIVE DATE.

13 (a) IN GENERAL.—This Act and the amendments

14 made by this Act shall take effect on the date of the enact15 ment of this Act, and shall apply to any export license

16 application made under the Arms Export Control Act be17 fore such date of enactment which is pending on such

18 date, and to any export license application made on or

19 after such date.

20 (b) TRANSFER OF PENDING APPLICATIONS.—Any

21 export license application made under the Arms Export

22 Control Act before the date of the enactment of this Act,

23 to which section 2 of this Act applies and which is pending
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1 on such date of enactment, shall be transferred to the De2 partment of Commerce upon the enactment of this Act.

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