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 subse-
quently 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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Satellite Trade and
Security Act of 2001’’.
SEC. 2. EXPORT CONTROLS ON SATELLITES AND RELATED
ITEMS.
Notwithstanding any other provision of law, all sat-
ellites and related items that were on the Commerce Con-
trol List of dual-use items in the Export Administration
Regulations (15 C.F.R. part 730 et seq.) on October 16,
1998, and any other dual-use communications satellites
and related items shall, subject to sections 3, 4, and 5,
be controlled under the Export Administration Act of
1979 (in effect or as continued in effect under the Inter-
national Emergency Economic Powers Act) or by the Sec-
retary of Commerce under any successor Act to the Export
Administration Act of 1979.
SEC. 3. EXPORT LICENSE PROCEDURES.
(a) REFERRAL
TO
OTHER
DEPARTMENTS
AND
AGENCIES.—The Secretary of Commerce (in this Act re-
ferred to as the ‘‘Secretary’’) shall refer to the Secretary
of Defense, the Secretary of State, and the heads of other
departments and agencies that the Secretary considers ap-
propriate, all applications for licenses to export satellites
and related items.
(b) REQUIRED
CONSULTATIONS
WITH
INTEL-
LIGENCE COMMUNITY.—The Secretary, the Secretary of
Defense and the Secretary of State, as appropriate, shall
consult with the Director of Central Intelligence during
the review of any application for a license involving the
overseas launch of a commercial satellite of United States
origin.
(c) TIME PERIOD FOR REFERRALS.—Within 30 days
after the Secretary refers an export license application
under this section, each department or agency to which
an export license application has been referred shall pro-
vide the Secretary with a recommendation to either ap-
prove or deny the license application. A department or
agency that fails to provide a recommendation within that
30-day period shall be deemed to have no objection to the
decision of the Secretary on the license application.
(d) INTERAGENCY
DISPUTE
RESOLUTION
PROC-
ESS.—If there is no agreement among the Secretary, the
Secretary of Defense, and the Secretary of State to issue
or deny a license to which this section applies, then the
Secretary shall refer the license application to an inter-
agency dispute resolution process established by the Presi-
dent. The dispute resolution process shall be completed
within a period of 60 days. A license pursuant to the appli-
cation shall not be issued or denied until the Secretary,
the Secretary of Defense, and the Secretary of State agree
to issue or deny the license, or until the President makes
a determination to issue or deny the license.
SEC. 4. NATIONAL SECURITY CONTROLS ON SATELLITE EX-
PORTS TO CERTAIN DESTINATIONS.
Notwithstanding any other provision of law, the fol-
lowing shall apply to all licenses to export satellites or re-
lated items for launch in, or by nationals of, any country
that is not a member of the North Atlantic Treaty Organi-
zation or a major non-NATO ally of the United States:
(1) 
MANDATORY
TECHNOLOGY
CONTROL
PLANS.—All export licenses shall require a tech-
nology transfer control plan approved by the Sec-
retary of Defense and an encryption technology
transfer control plan approved by the Director of the
National Security Agency. The technology transfer
control plan shall be prepared by the Department of
Defense and the licensee, and shall set forth security
arrangements for the launch of the satellite, both be-
fore and during launch operations.
(2) MANDATORY MONITORING AND REIMBURSE-
MENT.—
(A) MONITORING OF PROPOSED FOREIGN
LAUNCH OF SATELLITES.—In any case in which
a license is approved for the export of a satellite
or related items for launch in a foreign country,
the Secretary of Defense shall monitor all as-
pects of the launch in order to ensure that no
unauthorized transfer of technology occurs, in-
cluding technical assistance and technical data.
The number of persons providing security for
the launch of the satellite shall be sufficient to
maintain 24-hour, 7-day per week security of
the satellite or related items and related launch
vehicle and other sensitive technology.
(B) CONTENTS
OF
MONITORING.—The
monitoring under subparagraph (A) shall cover,
but not be limited to—
(i) technical discussions and activities,
including the design, development, oper-
ation, maintenance, modification, and re-
pair of satellites, satellite components, mis-
siles, launch facilities, launch vehicles and
other related equipment;
(ii) satellite processing and launch ac-
tivities, including launch preparation, sat-
ellite transportation, integration of the sat-
ellite with the launch vehicle, testing and
checkout prior to launch, satellite launch,
and return of equipment to the United
States;
(iii) activities related to launch fail-
ure, delay, or cancellation, including post-
launch failure investigations; and
(iv) all other aspects of the launch.
(C) REIMBURSEMENT.—The Secretary of
Defense shall require the licensee to agree to
reimburse the Department of Defense for all
costs associated with the provision of security
for the launch vehicle or related items. All reim-
bursements received under this paragraph shall
be credited to current appropriations available
for the payment of the costs incurred in pro-
viding such services.
(3) MANDATORY STATE DEPARTMENT EXPORT
LICENSES
FOR
POST-CRASH
INVESTIGATIONS.—In
the event of the failure of a launch from a foreign
country of a satellite of United States origin—
(A) the activities of United States persons
or entities in connection with any subsequent
investigation of the failure are subject to the
controls established under section 38 of the
Arms Export Control Act, including require-
ments for licenses issued by the Secretary of
State for participation in that investigation;
(B) officials of the Department of Defense
shall monitor all activities associated with the
investigation to insure against unauthorized
transfer of technical data or services; and
(C) the Secretary of Defense shall estab-
lish and implement a technology transfer con-
trol plan for the conduct of the investigation to
prevent the transfer of information that could
be used by the foreign country to improve its
missile or space launch capabilities.
(4) MANDATORY NOTIFICATION AND CERTIFI-
CATION.—All technology transfer control plans for
satellites or related items shall require any United
States person involved in the export of a satellite of
United States origin or related items to notify the
Department of Defense in advance of all meetings
and interactions with any foreign person or entity
providing launch services and require the United
States person to certify after the launch that it has
complied with this notification requirement.
(5) MANDATORY
INTELLIGENCE
COMMUNITY
REVIEW.—The Secretary of Commerce shall provide
to the Director of Central Intelligence copies of all
export license applications and technical assistance
agreements submitted for approval in connection
with launches of satellites in foreign countries to
verify the legitimacy of the stated end-user or end-
users.
(6) MANDATORY
SHARING
OF
APPROVED
LI-
CENSES AND AGREEMENTS.—The Secretary of Com-
merce shall provide copies of all approved export li-
censes and technical assistance agreements associ-
ated with launches of satellites in foreign countries
to the Secretary of State, the Secretary of Defense,
the Secretary of Energy, and the Director of Central
Intelligence.
(7) MANDATORY NOTIFICATION TO CONGRESS
ON LICENSES.—Upon issuing a license for the export
of a satellite or related items for launch in a foreign
country, the Secretary of Commerce shall so notify
Congress.
(8) MANDATORY REPORTING ON MONITORING
ACTIVITIES.—The Secretary of Defense shall provide
to Congress an annual report on the monitoring of
all launches in foreign countries of satellites of
United States origin.
(9) SAFEGUARDS PROGRAM.—The Secretary of
Defense shall continue its program to recruit, train
and maintain a staff dedicated to monitoring
launches in foreign countries of satellites and related
items of United States origin.
SEC. 5. DEFINITIONS.
In this Act:
(1) MAJOR NON-NATO ALLY OF THE UNITED
STATES.—The term ‘‘major non-NATO ally of the
United States’’ means a country designated as a
major non-NATO ally for purposes of the Foreign
Assistance Act of 1961.
(2) RELATED
ITEMS.—The term ‘‘related
items’’ means the satellite fuel, ground support
equipment, test equipment, payload adapter or inter-
face hardware, replacement parts, and nonembedded
solid propellant orbit transfer engines described in
the report submitted to Congress by the Department
of State on February 6, 1998, pursuant to section
38(f) of the Arms Export Control Act (22 U.S.C.
2778(f)).
(3) 
UNITED
STATES
PERSON.—The 
term
‘‘United States person’’ means any United States
resident or national (other than an individual resi-
dent outside the United States and employed by
other than a United States person), any domestic
concern (including any permanent domestic estab-
lishment of any foreign concern), and any foreign
subsidiary or affiliate (including any permanent for-
eign establishment) of any domestic concern which is
controlled in fact by such domestic concern, as de-
termined under regulations of the President.
SEC. 6. CONFORMING AMENDMENTS.
(a) 1999 NDAA.—(1) Section 1513(a) of the Strom
Thurmond National Defense Authorization Act for Fiscal
Year 1999 (22 U.S.C. 2778 note) is repealed.
(2) Section 1513(c) of that Act is amended by strik-
ing ‘‘(1) Subsection (a)’’ and all that follows through
‘‘(2)’’.
(3) Section 1514 of that Act, and the item relating
to that section in the table of contents of that Act, are
repealed.
(b) 2000 NDAA.—(1) Section 1404 of the National
Defense Authorization Act for Fiscal Year 2000 (22
U.S.C. 2778 note) is amended—
(A) in the matter preceding paragraph (1), by
striking ‘‘1514 of the Strom Thurmond National
Defense Authorization Act for Fiscal Year 1999 (22
U.S.C. 2778 note)’’ and inserting ‘‘4 of the Satellite
Trade and Security Act of 2001’’; and
(B) in paragraph (1), by striking ‘‘1514(a)(1)
of the Strom Thurmond National Defense Author-
ization Act for Fiscal Year 1999 (22 U.S.C. 2778
note)’’ and inserting ‘‘section 4(1) of the Satellite
Trade and Security Act of 2001’’.
(2) Section 1409 of that Act (22 U.S.C. 2278 note)
is amended—
(A) in subsection (a)(7), in the matter pre-
ceding 
subparagraph 
(A), 
by 
striking
‘‘1514(a)(2)(A) of the Strom Thurmond National
Defense Authorization Act for Fiscal Year 1999
(Public Law 105–261; 112 Stat. 2175; 22 U.S.C.
2778 note)’’ and inserting ‘‘4(2)(C) of the Satellite
Trade and Security Act of 2001’’; and
(B) 
in 
subsection 
(b)(1), 
by 
striking
‘‘1514(a)(8) of the Strom Thurmond National De-
fense Authorization Act for Fiscal Year 1999’’ and
inserting ‘‘4(8) of the Satellite Trade and Security
Act of 2001’’.
(3) Section 1410 of that Act, and the item relating
to that section in the table of contents of that Act, are
repealed.
(4) Section 1411 of that Act is amended—
(A) by striking subsection (a); and
(B) by redesignating subsections (b) and (c) as
subsections (a) and (b), respectively.
(5) Section 1412(d) of that Act is amended by strik-
ing ‘‘Secretary of State’’ and inserting ‘‘Secretary of Com-
merce’’.
(c) ADDITIONAL CONFORMING AMENDMENTS.—(1)
Section 1309 of the Admiral James W. Nance and Meg
Donovan Foreign Relations Authorization Act, Fiscal
Years 2000 and 2001 (as enacted by Public Law 106–
113; 113 Stat. 1501A–460) is amended—
(A) by amending the section heading to read as
follows:
‘‘SEC. 1309. OFFICE OF DEFENSE TRADE CONTROLS.’’;
(B) by striking subsections (a) and (c); and
(C) in subsection (b), by striking ‘‘(b) FINAN-
CIAL AND PERSONNEL RESOURCES.—’’.
(2) The table of contents of that Act is amended by
striking the item relating to section 1309 and inserting
the following:
‘‘Sec. 1309. Office of Defense Trade Controls.’’.
SEC. 7. EFFECTIVE DATE.
(a) IN GENERAL.—This Act and the amendments
made by this Act shall take effect on the date of the enact-
ment of this Act, and shall apply to any export license
application made under the Arms Export Control Act be-
fore such date of enactment which is pending on such
date, and to any export license application made on or
after such date.
(b) TRANSFER OF PENDING APPLICATIONS.—Any
export license application made under the Arms Export
Control Act before the date of the enactment of this Act,
to which section 2 of this Act applies and which is pending
on such date of enactment, shall be transferred to the De-
partment of Commerce upon the enactment of this Act.
Æ