Title: Otto Warmbier Banking Restrictions Involving North Korea Act of 2017
Policy area: International Affairs

Summary:
Banking Restrictions Involving North Korea (BRINK) Act of 2017
This bill requires the President to: (1) submit to Congress a list of financial institutions that are providing financial or banking support to the government of North Korea; (2) impose specified financial and asset blocking sanctions on an institution that has knowingly engaged in such conduct, and (3) impose specified civil penalties upon a U.S. institution based upon whether it has taken steps to prevent a recurrence of such conduct.
The President: (1) may suspend, renew, or terminate sanctions subject to prior congressional notification and review; and (2) may not take an action if Congress enacts a joint resolution of disapproval of such action.
The President shall prohibit, with specified exceptions, transactions involving the manufacture, sale, purchase, transfer, import, or export of certain North Korean goods, services, or technology (covered property) by a U.S. person or such transactions that are conducted in the United States.
The President may impose specified sanctions with respect to: (1) persons providing specialized financial messaging services to North Korean financial institutions or sanctioned persons, and (2) governments that fail to take specified actions against North Korean financial institutions or persons designated under a United Nations Security Council resolution.
A state or local government may divest its assets from, or prohibit investment of its assets in, any person engaging in investment activities involving North Korean covered property valued at more than $10,000.
The bill expresses the sense of Congress with respect to: (1) blocking of property of North Korean officials, (2) divestiture of certain employee benefit plan funds involving North Korean covered property, and (3) the Kaesong Industrial Complex and North Korean nuclear disarmament.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1591 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  1st Session
                                S. 1591

To impose sanctions with respect to the Democratic People's Republic of 
                     Korea, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 19, 2017

 Mr. Van Hollen (for himself and Mr. Toomey) introduced the following 
 bill; which was read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To impose sanctions with respect to the Democratic People's Republic of 
                     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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Banking 
Restrictions Involving North Korea (BRINK) Act of 2017''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
TITLE I--FINANCIAL REQUIREMENTS AND SANCTIONS RELATING TO TRANSACTIONS 
                         INVOLVING NORTH KOREA

Sec. 101. Sanctions with respect to financial institutions providing 
                            support to the Government of North Korea.
Sec. 102. Expansion of licensing requirements for transactions in North 
                            Korean covered property.
Sec. 103. Authorization of imposition of sanctions with respect to the 
                            provision of specialized financial 
                            messaging services to North Korean 
                            financial institutions and sanctioned 
                            persons.
Sec. 104. Authorization of imposition of sanctions with respect to 
                            governments that fail to comply with United 
                            Nations Security Council sanctions against 
                            North Korea.
Sec. 105. Grants to conduct research on financial networks and 
                            financial methods of the Government of 
                            North Korea.
Sec. 106. Report on use by the Government of North Korea of beneficial 
                            ownership rules to access the international 
                            financial system.
Sec. 107. Sense of Congress on identification and blocking of property 
                            of North Korean officials.
Sec. 108. Sense of Congress regarding the Kaesong Industrial Complex.
                 TITLE II--DIVESTMENT FROM NORTH KOREA

Sec. 201. Authority of State and local governments to divest from 
                            companies that invest in North Korea.
Sec. 202. Safe harbor for changes of investment policies by asset 
                            managers.
Sec. 203. Sense of Congress regarding certain ERISA plan investments.
Sec. 204. Rule of construction.
                     TITLE III--GENERAL AUTHORITIES

Sec. 301. Rulemaking.
Sec. 302. Authority to consolidate reports.
Sec. 303. Rule of construction.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Since 2006, the United Nations Security Council has 
        approved 5 resolutions imposing sanctions against North Korea 
        under chapter VII of the United Nations Charter, which--
                    (A) prohibit the use, development, and 
                proliferation of weapons of mass destruction by the 
                Government of North Korea;
                    (B) prohibit the transfer of arms and related 
                materiel to or by the Government of North Korea;
                    (C) prohibit the transfer of luxury goods to North 
                Korea;
                    (D) restrict access by the Government of North 
                Korea to the financial system and require due diligence 
                on the part of financial institutions to prevent the 
                financing of proliferation involving the Government of 
                North Korea;
                    (E) restrict North Korean shipping, including the 
                reflagging of ships owned or controlled by the 
                Government of North Korea;
                    (F) limit the sale by the Government of North Korea 
                of precious metals, iron, coal, vanadium, and rare 
                earth minerals; and
                    (G) prohibit the transfer to North Korea of rocket, 
                aviation, or jet fuel.
            (2) The Government of North Korea has threatened to carry 
        out nuclear attacks against the United States and South Korea 
        and has sent clandestine agents to kidnap or murder the 
        citizens of foreign countries and murder dissidents in exile.
            (3) The Federal Bureau of Investigation has determined that 
        the Government of North Korea was responsible for cyberattacks 
        against the United States and South Korea.
            (4) In February 2016, the Director of National Intelligence 
        reported that the Government of North Korea is ``committed to 
        developing a long-range, nuclear-armed missile that is capable 
        of posing a direct threat to the United States'' and some arms 
        control experts have estimated that the Government of North 
        Korea may acquire this capability by 2020.
            (5) The Government of North Korea tested its 5th and 
        largest nuclear device on September 9, 2016.
            (6) The Government of North Korea has increased the pace of 
        its missile testing, including the test of a submarine-launched 
        ballistic missile, potentially furthering the development of 
        capability to attack the United States with a nuclear weapon.
            (7) Financial transactions and investments that provide 
        financial resources to the Government of North Korea, and that 
        fail to incorporate adequate safeguards against the misuse of 
        those financial resources, pose an undue risk of contributing 
        to--
                    (A) weapons of mass destruction programs of that 
                government; and
                    (B) prohibited imports or exports of arms and 
                related materiel, services, or technology by that 
                government.
            (8) The strict enforcement of sanctions is essential to the 
        efforts by the international community to achieve the peaceful, 
        complete, verifiable, and irreversible dismantlement of weapons 
        of mass destruction programs of the Government of North Korea.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Applicable executive order; applicable united nations 
        security council resolution; government of north korea; north 
        korea.--The terms ``applicable Executive order'', ``applicable 
        United Nations Security Council resolution'', ``Government of 
        North Korea'', and ``North Korea'' have the meanings given 
        those terms in section 3 of the North Korea Sanctions and 
        Policy Enhancement Act of 2016 (22 U.S.C. 9202).
            (2) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Banking, Housing, and Urban 
                Affairs and the Committee on Foreign Relations of the 
                Senate; and
                    (B) the Committee on Financial Services and the 
                Committee on Foreign Affairs of the House of 
                Representatives.
            (3) Knowingly.--The term ``knowingly'', with respect to 
        conduct, a circumstance, or a result, means that a person has 
        actual knowledge, or should have known, of the conduct, the 
        circumstance, or the result.
            (4) North korean covered property.--
                    (A) In general.--The term ``North Korean covered 
                property'' includes any goods, services, or 
                technology--
                            (i) that are in North Korea;
                            (ii) that are made with significant amounts 
                        of North Korean labor, materials, goods, or 
                        technology;
                            (iii) in which the Government of North 
                        Korea or a North Korean financial institution 
                        has a significant interest or exercises 
                        significant control; or
                            (iv) in which a designated person has a 
                        significant interest or exercises significant 
                        control.
                    (B) Designated person.--In this paragraph, the term 
                designated person means a person who is designated 
                under--
                            (i) an applicable Executive order;
                            (ii) an applicable United Nations Security 
                        Council resolution; or
                            (iii) section 104 of the North Korea 
                        Sanctions and Policy Enhancement Act of 2016 
                        (22 U.S.C. 9204).
            (5) North korean financial institution.--The term ``North 
        Korean financial institution'' includes--
                    (A) any North Korean financial institution, as 
                defined in section 3 of the North Korea Sanctions and 
                Policy Enhancement Act of 2016 (22 U.S.C. 9202);
                    (B) any financial agency, as defined in section 
                5312 of title 31, United States Code, that is owned or 
                controlled by the Government of North Korea;
                    (C) any money transmitting business, as defined in 
                section 5330(d) of title 31, United States Code, that 
                is owned or controlled by the Government of North 
                Korea; and
                    (D) any financial institution that is a joint 
                venture between any person and the Government of North 
                Korea.
            (6) Secretary.--Unless otherwise specified, the term 
        ``Secretary'' means the Secretary of the Treasury.
            (7) United states financial institution.--The term ``United 
        States financial institution'' means a financial institution 
        that--
                    (A) is a United States person, regardless of where 
                the person operates; or
                    (B) operates or does business in the United States, 
                including by conducting wire transfers through 
                correspondent banks in the United States.
            (8) United states person.--The term ``United States 
        person'' means--
                    (A) a citizen or resident of the United States or a 
                national of the United States (as defined in section 
                101(a) of the Immigration and Nationality Act (8 U.S.C. 
                1101(a))); and
                    (B) an entity that is organized under the laws of 
                the United States or any jurisdiction within the United 
                States, including a foreign subsidiary of such an 
                entity.

TITLE I--FINANCIAL REQUIREMENTS AND SANCTIONS RELATING TO TRANSACTIONS 
                         INVOLVING NORTH KOREA

SEC. 101. SANCTIONS WITH RESPECT TO FINANCIAL INSTITUTIONS PROVIDING 
              SUPPORT TO THE GOVERNMENT OF NORTH KOREA.

    (a) Report on Noncompliant Financial Institutions.--
            (1) In general.--Not later than 60 days after the date of 
        the enactment of this Act, and every 180 days thereafter, the 
        President shall submit to the appropriate congressional 
        committees and publish in the Federal Register a report that 
        contains a list of any financial institutions that the 
        President has identified as having engaged in, during the one-
        year period preceding the submission of the report, the 
        following conduct:
                    (A) Dealing in North Korean covered property.
                    (B) Providing correspondent or interbank services 
                to one or more North Korean financial institutions.
                    (C) Failing to apply enhanced due diligence to 
                prevent North Korean financial institutions from 
                gaining access to correspondent or interbank services 
                in the United States or provided by United States 
                persons.
                    (D) Knowingly operating or participating with or on 
                behalf of an offshore United States dollar clearing 
                system that conducts transactions involving the 
                Government of North Korea or North Korean covered 
                property.
                    (E) Conducting or facilitating one or more 
                significant transactions in North Korean covered 
                property involving covered goods (as that term is 
                defined in section 1027.100 of title 31, Code of 
                Federal Regulations, or any successor regulation) or 
                the currency of a country other than the country in 
                which the person is operating at the time of the 
                transaction.
            (2) Form of report.--Each report required under paragraph 
        (1) shall be submitted in unclassified form but may contain a 
        classified annex.
    (b) Imposition of Sanctions.--
            (1) In general.--If the President determines that a 
        financial institution identified under subsection (a) has 
        knowingly engaged in conduct described in that subsection, the 
        President shall apply the following sanctions with respect to 
        that financial institution:
                    (A) Prohibit the designation of the financial 
                institution, or the continuation of any prior 
                designation of the financial institution, as a primary 
                dealer in United States Government debt instruments.
                    (B) Prohibit the financial institution from serving 
                as agent of the United States Government or as a 
                repository for funds of the United States Government.
                    (C) One or more of the following:
                            (i) Prohibit the opening, and prohibit or 
                        impose strict conditions on the maintaining, in 
                        the United States of any correspondent account 
                        or payable-through account by the financial 
                        institution if the financial institution is a 
                        foreign financial institution.
                            (ii) Prohibit any transactions in foreign 
                        exchange that are subject to the jurisdiction 
                        of the United States and in which the financial 
                        institution has any interest.
                            (iii) In accordance with the International 
                        Emergency Economic Powers Act (50 U.S.C. 1701 
                        et seq.), block and prohibit all transactions 
                        in all property and interests in property of 
                        the financial institution 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.
            (2) Civil penalties.--If the President determines that a 
        financial institution identified under subsection (a) that is a 
        United States financial institution has knowingly engaged in 
        conduct described in that subsection--
                    (A) if the financial institution has taken 
                reasonable steps to prevent a recurrence of conduct 
                described in that subsection and is cooperating fully 
                with the efforts of the President to enforce the 
                provisions of this Act--
                            (i) unless the financial institution is 
                        described in clause (ii), the President shall 
                        impose a civil penalty not to exceed $100,000 
                        for each reportable act described in 
                        subparagraphs (A) through (E) of subsection 
                        (a)(1) that is knowingly conducted; or
                            (ii) if the financial institution has not 
                        previously been reported for similar conduct 
                        under subsection (a), the President shall issue 
                        a cautionary letter to that financial 
                        institution; or
                    (B) if the financial institution is not a financial 
                institution described in subparagraph (A), the 
                President shall impose a civil penalty not to exceed 
                $250,000 for each reportable act described in 
                subparagraphs (A) through (E) of subsection (a)(1) that 
                is knowingly conducted.
    (c) Suspension for Law Enforcement Purposes.--The President may 
suspend the submission of the reports described in subsection (a) and 
the application of sanctions and penalties described in subsection (b) 
for a one-year period if--
            (1) such reporting and application of sanctions and 
        penalties could compromise an ongoing law enforcement 
        investigation or prosecution; or
            (2) a criminal prosecution is pending, or a criminal or 
        civil fine or penalty has been imposed or conditionally 
        deferred, for the conduct reported pursuant to subsection (a).
    (d) Suspension and Termination of Sanctions and Penalties.--
            (1) Suspension.--The President may suspend the application 
        of any sanctions or penalties under subsection (b) for a period 
        of not more than one year if the President certifies to the 
        appropriate congressional committees that the Government of 
        North Korea is taking steps toward--
                    (A) the verification of its compliance with 
                applicable United Nations Security Council Resolutions; 
                and
                    (B) fully accounting for and repatriating United 
                States citizens and permanent residents (including 
                deceased United States citizens and permanent 
                residents)--
                            (i) abducted or unlawfully held captive by 
                        the Government of North Korea; or
                            (ii) detained in violation of the Agreement 
                        Concerning a Military Armistice in Korea, 
                        signed at Panmunjom July 27, 1953 (commonly 
                        referred to as the ``Korean War Armistice 
                        Agreement'').
            (2) Renewal of suspension.--The President may renew a 
        suspension described in paragraph (1) for additional periods of 
        not more than 180 days if the President certifies to the 
        appropriate congressional committees that the Government of 
        North Korea continues to take steps as described in paragraph 
        (1).
            (3) Termination of sanctions.--Subject to subsection (f), 
        the President may terminate the application of any sanctions or 
        penalties under subsection (b) if the President certifies that 
        the Government of North Korea has made significant progress 
        towards--
                    (A) completely, verifiably, and irreversibly 
                dismantling all of its nuclear, chemical, biological, 
                and radiological weapons programs, including all 
                programs for the development of systems designed in 
                whole or in part for the delivery of such weapons; and
                    (B) fully accounting for and repatriating United 
                States citizens and permanent residents (including 
                deceased United States citizens and permanent 
                residents)--
                            (i) abducted or unlawfully held captive by 
                        the Government of North Korea; or
                            (ii) detained in violation of the Agreement 
                        Concerning a Military Armistice in Korea, 
                        signed at Panmunjom July 27, 1953 (commonly 
                        referred to as the ``Korean War Armistice 
                        Agreement'').
    (e) Waiver.--Subject to subsection (f), the President may waive the 
application of sanctions or penalties under subsection (b) with respect 
to a financial institution if the President determines that the waiver 
is in the national security interest of the United States.
    (f) Congressional Review of Proposed Actions To Waive or Terminate 
Sanctions.--
            (1) Submission to congress of proposed action.--
                    (A) In general.--Notwithstanding any other 
                provision of law, before taking any action described in 
                subparagraph (B), the President shall submit to the 
                appropriate congressional committees and leadership a 
                report that describes the proposed action and the 
                reasons for that action.
                    (B) Actions described.--An action described in this 
                subparagraph is--
                            (i) an action to suspend, renew a 
                        suspension, or terminate under subsection (d) 
                        the application of sanctions or penalties under 
                        subsection (b); or
                            (ii) with respect to sanctions or penalties 
                        under subsection (b) imposed by the President 
                        with respect to a person, an action to waive 
                        under subsection (e) the application of those 
                        sanctions or penalties with respect to that 
                        person.
                    (C) Description of type of action.--Each report 
                submitted under subparagraph (A) with respect to an 
                action described in subparagraph (B) shall include a 
                description of whether the action--
                            (i) is not intended to significantly alter 
                        United States foreign policy with regard to 
                        North Korea; or
                            (ii) is intended to significantly alter 
                        United States foreign policy with regard to 
                        North Korea.
                    (D) Inclusion of additional matter.--
                            (i) In general.--Each report submitted 
                        under subparagraph (A) that relates to an 
                        action that is intended to significantly alter 
                        United States foreign policy with regard to 
                        North Korea shall include a description of--
                                    (I) the significant alteration to 
                                United States foreign policy with 
                                regard to North Korea;
                                    (II) the anticipated effect of the 
                                action on the national security 
                                interests of the United States; and
                                    (III) the policy objectives for 
                                which the sanctions affected by the 
                                action were initially imposed.
                            (ii) Requests from banking and financial 
                        services committees.--The Committee on Banking, 
                        Housing, and Urban Affairs of the Senate or the 
                        Committee on Financial Services of the House of 
                        Representatives may request the submission to 
                        the Committee of the matter described in 
                        subclauses (II) and (III) of clause (i) with 
                        respect to a report submitted under 
                        subparagraph (A) that relates to an action that 
                        is not intended to significantly alter United 
                        States foreign policy with regard to North 
                        Korea.
            (2) Period for review by congress.--
                    (A) In general.--During the period of 30 calendar 
                days beginning on the date on which the President 
                submits a report under paragraph (1)(A)--
                            (i) in the case of a report that relates to 
                        an action that is not intended to significantly 
                        alter United States foreign policy with regard 
                        to North Korea, the Committee on Banking, 
                        Housing, and Urban Affairs of the Senate and 
                        the Committee on Financial Services of the 
                        House of Representatives should, as 
                        appropriate, hold hearings and briefings and 
                        otherwise obtain information in order to fully 
                        review the report; and
                            (ii) in the case of a report that relates 
                        to an action that is intended to significantly 
                        alter United States foreign policy with regard 
                        to North Korea, the Committee on Foreign 
                        Relations of the Senate and the Committee on 
                        Foreign Affairs of the House of Representatives 
                        should, as appropriate, hold hearings and 
                        briefings and otherwise obtain information in 
                        order to fully review the report.
                    (B) Exception.--The period for congressional review 
                under subparagraph (A) of a report required to be 
                submitted under paragraph (1)(A) shall be 60 calendar 
                days if the report is submitted on or after July 10 and 
                on or before September 7 in any calendar year.
                    (C) Limitation on actions during initial 
                congressional review period.--Notwithstanding any other 
                provision of law, during the period for congressional 
                review provided for under subparagraph (A) of a report 
                submitted under paragraph (1)(A) proposing an action 
                described in paragraph (1)(B), including any additional 
                period for such review as applicable under the 
                exception provided in subparagraph (B), the President 
                may not take that action unless a joint resolution of 
                approval with respect to that action is enacted in 
                accordance with paragraph (3).
                    (D) Limitation on actions during presidential 
                consideration of a joint resolution of disapproval.--
                Notwithstanding any other provision of law, if a joint 
                resolution of disapproval relating to a report 
                submitted under paragraph (1)(A) proposing an action 
                described in paragraph (1)(B) passes both Houses of 
                Congress in accordance with paragraph (3), the 
                President may not take that action for a period of 12 
                calendar days after the date of passage of the joint 
                resolution of disapproval.
                    (E) Limitation on actions during congressional 
                reconsideration of a joint resolution of disapproval.--
                Notwithstanding any other provision of law, if a joint 
                resolution of disapproval relating to a report 
                submitted under paragraph (1)(A) proposing an action 
                described in paragraph (1)(B) passes both Houses of 
                Congress in accordance with paragraph (3), and the 
                President vetoes the joint resolution, the President 
                may not take that action for a period of 10 calendar 
                days after the date of the President's veto.
                    (F) Effect of enactment of a joint resolution of 
                disapproval.--Notwithstanding any other provision of 
                law, if a joint resolution of disapproval relating to a 
                report submitted under paragraph (1)(A) proposing an 
                action described in paragraph (1)(B) is enacted in 
                accordance with paragraph (3), the President may not 
                take that action.
            (3) Joint resolutions of disapproval or approval.--
                    (A) Joint resolutions of disapproval or approval 
                defined.--In this paragraph:
                            (i) Joint resolution of approval.--The term 
                        ``joint resolution of approval'' means only a 
                        joint resolution of either House of Congress--
                                    (I) the title of which is as 
                                follows: ``A joint resolution approving 
                                the President's proposal to take an 
                                action relating to the application of 
                                certain sanctions with respect to North 
                                Korea.''; and
                                    (II) the sole matter after the 
                                resolving clause of which is the 
                                following: ``Congress approves of the 
                                action relating to the application of 
                                sanctions imposed with respect to North 
                                Korea proposed by the President in the 
                                report submitted to Congress under 
                                section 101(f)(1)(A) of the Banking 
                                Restrictions Involving North Korea 
                                (BRINK) Act of 2017 on _______ relating 
                                to ________.'', with the first blank 
                                space being filled with the appropriate 
                                date and the second blank space being 
                                filled with a short description of the 
                                proposed action.
                            (ii) Joint resolution of disapproval.--The 
                        term ``joint resolution of disapproval'' means 
                        only a joint resolution of either House of 
                        Congress--
                                    (I) the title of which is as 
                                follows: ``A joint resolution 
                                disapproving the President's proposal 
                                to take an action relating to the 
                                application of certain sanctions with 
                                respect to North Korea.''; and
                                    (II) the sole matter after the 
                                resolving clause of which is the 
                                following: ``Congress disapproves of 
                                the action relating to the application 
                                of sanctions imposed with respect to 
                                North Korea proposed by the President 
                                in the report submitted to Congress 
                                under section 101(f)(1)(A) of the 
                                Banking Restrictions Involving North 
                                Korea (BRINK) Act of 2017 on _______ 
                                relating to ________.'', with the first 
                                blank space being filled with the 
                                appropriate date and the second blank 
                                space being filled with a short 
                                description of the proposed action.
                    (B) Introduction.--During the period of 30 calendar 
                days provided for under paragraph (2)(A), including any 
                additional period as applicable under the exception 
                provided in paragraph (2)(B), a joint resolution of 
                approval or joint resolution of disapproval may be 
                introduced--
                            (i) in the House of Representatives, by the 
                        majority leader or the minority leader; and
                            (ii) in the Senate, by the majority leader 
                        (or the majority leader's designee) or the 
                        minority leader (or the minority leader's 
                        designee).
                    (C) Floor consideration in house of 
                representatives.--
                            (i) Reporting and discharge.--If a 
                        committee of the House of Representatives to 
                        which a joint resolution of approval or joint 
                        resolution of disapproval has been referred has 
                        not reported the joint resolution within 10 
                        calendar days after the date of referral, that 
                        committee shall be discharged from further 
                        consideration of the joint resolution.
                            (ii) Proceeding to consideration.--
                        Beginning on the third legislative day after 
                        each committee to which a joint resolution of 
                        approval or joint resolution of disapproval has 
                        been referred reports the joint resolution to 
                        the House or has been discharged from further 
                        consideration of the joint resolution, it shall 
                        be in order to move to proceed to consider the 
                        joint resolution in the House. All points of 
                        order against the motion are waived. Such a 
                        motion shall not be in order after the House 
                        has disposed of a motion to proceed on the 
                        joint resolution. The previous question shall 
                        be considered as ordered on the motion to its 
                        adoption without intervening motion. The motion 
                        shall not be debatable. A motion to reconsider 
                        the vote by which the motion is disposed of 
                        shall not be in order.
                            (iii) Consideration.--The joint resolution 
                        of approval or joint resolution of disapproval 
                        shall be considered as read. All points of 
                        order against the joint resolution and against 
                        its consideration are waived. The previous 
                        question shall be considered as ordered on the 
                        joint resolution to final passage without 
                        intervening motion except 2 hours of debate 
                        equally divided and controlled by the sponsor 
                        of the joint resolution (or a designee) and an 
                        opponent. A motion to reconsider the vote on 
                        passage of the joint resolution shall not be in 
                        order.
                    (D) Consideration in the senate.--
                            (i) Committee referral.--A joint resolution 
                        of approval or joint resolution of disapproval 
                        introduced in the Senate shall be--
                                    (I) referred to the Committee on 
                                Banking, Housing, and Urban Affairs if 
                                the joint resolution relates to a 
                                report submitted under paragraph (1)(A) 
                                with respect to an action that is not 
                                intended to significantly alter United 
                                States foreign policy with regard to 
                                North Korea; and
                                    (II) referred to the Committee on 
                                Foreign Relations if the joint 
                                resolution relates to a report 
                                submitted under paragraph (1)(A) with 
                                respect to an action that is intended 
                                to significantly alter United States 
                                foreign policy with respect to North 
                                Korea.
                            (ii) Reporting and discharge.--If the 
                        committee to which a joint resolution of 
                        approval or joint resolution of disapproval was 
                        referred has not reported the joint resolution 
                        within 10 calendar days after the date of 
                        referral of the joint resolution, that 
                        committee shall be discharged from further 
                        consideration of the joint resolution and the 
                        joint resolution shall be placed on the 
                        appropriate calendar.
                            (iii) Proceeding to consideration.--
                        Notwithstanding Rule XXII of the Standing Rules 
                        of the Senate, it is in order at any time after 
                        the Committee on Banking, Housing, and Urban 
                        Affairs or the Committee on Foreign Relations, 
                        as the case may be, reports a joint resolution 
                        of approval or joint resolution of disapproval 
                        to the Senate or has been discharged from 
                        consideration of such a joint resolution (even 
                        though a previous motion to the same effect has 
                        been disagreed to) to move to proceed to the 
                        consideration of the joint resolution, and all 
                        points of order against the joint resolution 
                        (and against consideration of the joint 
                        resolution) are waived. The motion to proceed 
                        is not debatable. The motion is not subject to 
                        a motion to postpone. A motion to reconsider 
                        the vote by which the motion is agreed to or 
                        disagreed to shall not be in order.
                            (iv) Rulings of the chair on procedure.--
                        Appeals from the decisions of the Chair 
                        relating to the application of the rules of the 
                        Senate, as the case may be, to the procedure 
                        relating to a joint resolution of approval or 
                        joint resolution of disapproval shall be 
                        decided without debate.
                            (v) Consideration of veto messages.--Debate 
                        in the Senate of any veto message with respect 
                        to a joint resolution of approval or joint 
                        resolution of disapproval, including all 
                        debatable motions and appeals in connection 
                        with the joint resolution, shall be limited to 
                        10 hours, to be equally divided between, and 
                        controlled by, the majority leader and the 
                        minority leader or their designees.
                    (E) Rules relating to senate and house of 
                representatives.--
                            (i) Coordination with action by other 
                        house.--If, before the passage by one House of 
                        a joint resolution of approval or joint 
                        resolution of disapproval of that House, that 
                        House receives an identical joint resolution 
                        from the other House, the following procedures 
                        shall apply:
                                    (I) The joint resolution of the 
                                other House shall not be referred to a 
                                committee.
                                    (II) With respect to the joint 
                                resolution of the House receiving the 
                                joint resolution from the other House--
                                            (aa) the procedure in that 
                                        House shall be the same as if 
                                        no joint resolution had been 
                                        received from the other House; 
                                        but
                                            (bb) the vote on passage 
                                        shall be on the joint 
                                        resolution of the other House.
                            (ii) Treatment of a joint resolution of 
                        other house.--If one House fails to introduce a 
                        joint resolution of approval or joint 
                        resolution of disapproval, a joint resolution 
                        of approval or joint resolution of disapproval 
                        of the other House shall be entitled to 
                        expedited procedures in that House under this 
                        subsection.
                            (iii) Treatment of house joint resolution 
                        in senate.--If, following passage of a joint 
                        resolution of approval or joint resolution of 
                        disapproval in the Senate, the Senate receives 
                        an identical joint resolution from the House of 
                        Representatives, that joint resolution shall be 
                        placed on the appropriate Senate calendar.
                            (iv) Application to revenue measures.--The 
                        provisions of this subparagraph shall not apply 
                        in the House of Representatives to a joint 
                        resolution of approval or joint resolution of 
                        disapproval that is a revenue measure.
                    (F) Rules of house of representatives and senate.--
                This paragraph is enacted by Congress--
                            (i) as an exercise of the rulemaking power 
                        of the Senate and the House of Representatives, 
                        respectively, and as such is deemed a part of 
                        the rules of each House, respectively, but 
                        applicable only with respect to the procedure 
                        to be followed in that House in the case of a 
                        joint resolution of approval or joint 
                        resolution of disapproval, and supersedes other 
                        rules only to the extent that it is 
                        inconsistent with such rules; and
                            (ii) with full recognition of the 
                        constitutional right of either House to change 
                        the rules (so far as relating to the procedure 
                        of that House) at any time, in the same manner, 
                        and to the same extent as in the case of any 
                        other rule of that House.
    (g) Briefing Required.--Not later than 180 days after the date of 
the enactment of this Act, and every 180 days thereafter, the President 
shall brief the appropriate congressional committees on the status of 
efforts by the President to prevent conduct described in subparagraphs 
(A) through (E) of subsection (a)(1).
    (h) Rule of Construction.--Nothing in this section shall be 
construed to prohibit any person from, or authorize or require the 
imposition of sanctions with respect to any person for, conducting or 
facilitating any transaction for the sale or donation of agricultural 
commodities, food, medicine, or medical devices.
    (i) Appropriate Congressional Committees and Leadership Defined.--
In this section, the term ``appropriate congressional committees and 
leadership'' means--
            (1) the Committee on Banking, Housing, and Urban Affairs, 
        the Committee on Foreign Relations, and the majority and 
        minority leaders of the Senate; and
            (2) the Committee on Financial Services, the Committee on 
        Foreign Affairs, and the Speaker, the majority leader, and the 
        minority leader of the House of Representatives.

SEC. 102. EXPANSION OF LICENSING REQUIREMENTS FOR TRANSACTIONS IN NORTH 
              KOREAN COVERED PROPERTY.

    (a) License Required.--
            (1) In general.--Except as provided in paragraph (2), not 
        later than 180 days after the date of the enactment of this 
        Act, the President shall prescribe regulations prohibiting any 
        transaction involving the manufacture, sale, purchase, 
        transfer, import, or export of North Korean covered property by 
        a United States person or conducted in the United States.
            (2) Exception.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the Secretary may grant licenses and permits for 
                the following purposes:
                            (i) For any purpose covered by an exemption 
                        or waiver under section 208 of the North Korea 
                        Sanctions and Policy Enhancement Act of 2016 
                        (22 U.S.C. 9228), including humanitarian, 
                        diplomatic, consular, law enforcement, and 
                        other purposes.
                            (ii) To import food products into North 
                        Korea if such food products are not defined as 
                        luxury goods.
                            (iii) To meet an urgent and compelling 
                        humanitarian need.
                            (iv) For activities to promote human rights 
                        in North Korea, the development of private 
                        agriculture and markets in North Korea, and the 
                        free flow of information to, from, and within 
                        North Korea.
                            (v) To import agricultural products, 
                        medicine, or medical devices into North Korea 
                        if such products, medicine, or devices are 
                        classified as designated ``EAR 99'' under 
                        subchapter C of chapter VII of title 15, Code 
                        of Federal Regulations, or any successor 
                        regulations (commonly known as the ``Export 
                        Administration Regulations''), and not 
                        controlled under--
                                    (I) the Export Administration Act 
                                of 1979 (50 U.S.C. App. 2401 et seq.), 
                                as continued in effect under the 
                                International Emergency Economic Powers 
                                Act (50 U.S.C. 1701 et seq.);
                                    (II) the Arms Export Control Act 
                                (22 U.S.C. 2751 et seq.);
                                    (III) part B of title VIII of the 
                                Nuclear Proliferation Prevention Act of 
                                1994 (22 U.S.C. 6301 et seq.); or
                                    (IV) the Chemical and Biological 
                                Weapons Control and Warfare Elimination 
                                Act of 1991 (22 U.S.C. 5601 et seq.).
                    (B) Exception.--The Secretary may not grant a 
                license or permit under subparagraph (A) for an 
                activity described in section 104(a) of the North Korea 
                Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
                9214(a)).
    (b) Penalties.--
            (1) In general.--A person shall be fined not more than 
        $5,000,000, imprisoned for not more than 20 years, or both, if 
        the person knowingly--
                    (A) engages in a transaction described in 
                subsection (a)(1), except pursuant to a license or 
                permit granted under this section or regulations 
                prescribed pursuant to this section; or
                    (B) evades a requirement to obtain a license or 
                permit under this section or a regulations prescribed 
                pursuant to this section.
            (2) Forfeiture of property.--Any property, real or 
        personal, that is involved in a transaction that is a violation 
        of subsection (a)(1), is involved in an attempt to conduct such 
        a transaction, or constitutes or is derived from proceeds 
        traceable to such a transaction, is subject to forfeiture to 
        the United States.
    (c) Report Required.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, and annually thereafter, the 
        President shall submit to the appropriate congressional 
        committees a report listing any licenses or permits granted 
        under subsection (a).
            (2) Form.--Each report required under paragraph (1) shall 
        be submitted in unclassified form but may include a classified 
        annex.
            (3) Public availability.--Not later than 30 days after the 
        submission of a report under paragraph (1), the Secretary of 
        the Treasury and the Secretary of State shall each publish the 
        unclassified part of the report on a publicly available 
        Internet website of the Department of the Treasury and the 
        Department of State, as the case may be.
    (d) Termination of Requirements.--The President may terminate the 
prohibition on transactions described in subsection (a) and the 
imposition of penalties under subsection (b) if the President submits 
to the appropriate congressional committees the certification described 
in section 402 of the North Korea Sanctions and Policy Enhancement Act 
of 2016 (22 U.S.C. 9252).
    (e) Modification of Definition of Specified Unlawful Activity for 
Money Laundering Purposes.--Section 1956(c)(7)(D) of title 18, United 
States Code, is amended--
            (1) by striking ``or section 104(a) of'' and inserting 
        ``section 104(a) of''; and
            (2) by inserting before the semicolon at the end the 
        following: ``, or section 102(b) of the Banking Restrictions 
        Involving North Korea (BRINK) Act of 2017 (relating to 
        transactions in certain North Korean property)''.

SEC. 103. AUTHORIZATION OF IMPOSITION OF SANCTIONS WITH RESPECT TO THE 
              PROVISION OF SPECIALIZED FINANCIAL MESSAGING SERVICES TO 
              NORTH KOREAN FINANCIAL INSTITUTIONS AND SANCTIONED 
              PERSONS.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) providers of specialized financial messaging services 
        have been used as a critical link between the Government of 
        North Korea and the international financial system;
            (2) the Financial Action Task Force has repeatedly called 
        for jurisdictions to apply countermeasures to protect the 
        financial system from the risks of money laundering and 
        proliferation financing emanating from North Korea;
            (3) credible published reports have implicated the 
        Government of North Korea in stealing approximately $81,000,000 
        from the Bangladesh Bank and attempting to steal another 
        $951,000,000 from other banks using a financial messaging 
        service; and
            (4) directly providing specialized financial messaging 
        services to, or enabling or facilitating direct or indirect 
        access to such messaging services for, any financial 
        institution designated by the United Nations Security Council 
        is inconsistent with applicable United Nations Security Council 
        resolutions.
    (b) Authorization of Imposition of Sanctions.--The President may 
impose sanctions pursuant to the International Emergency Economic 
Powers Act (50 U.S.C. 1701 et seq.) with respect to a person if, on or 
after the date that is 90 days after the date of the enactment of this 
Act, the person knowingly and directly provides specialized financial 
messaging services to, or knowingly enables or facilitates direct or 
indirect access to such messaging services for--
            (1) a North Korean financial institution;
            (2) a person, including a financial institution, that is 
        designated pursuant to--
                    (A) an applicable Executive order;
                    (B) an applicable United Nations Security Council 
                resolution; or
                    (C) section 104 of the North Korea Sanctions and 
                Policy Enhancement Act of 2016 (22 U.S.C. 9214); or
            (3) a person subject to sanctions under this Act.
    (c) Enabling or Facilitating Access to Specialized Financial 
Messaging Services.--For purposes of this section, enabling or 
facilitating direct or indirect access to specialized financial 
messaging services to a person described in paragraph (1) or (2) of 
subsection (b) includes doing so by serving as an intermediary 
financial institution with access to such messaging services.
    (d) Suspension and Termination of Sanctions.--
            (1) Suspension.--The President may suspend the application 
        of any sanctions under subsection (b) for a period of not more 
        than one year if the President certifies to the appropriate 
        congressional committees that the Government of North Korea is 
        taking steps toward--
                    (A) the verification of its compliance with 
                applicable United Nations Security Council Resolutions; 
                and
                    (B) fully accounting for and repatriating United 
                States citizens and permanent residents (including 
                deceased United States citizens and permanent 
                residents)--
                            (i) abducted or unlawfully held captive by 
                        the Government of North Korea; or
                            (ii) detained in violation of the Agreement 
                        Concerning a Military Armistice in Korea, 
                        signed at Panmunjom July 27, 1953 (commonly 
                        referred to as the ``Korean War Armistice 
                        Agreement'').
            (2) Renewal of suspension.--The President may renew a 
        suspension described in paragraph (1) for additional periods of 
        not more than 180 days if the President certifies to the 
        appropriate congressional committees that the Government of 
        North Korea continues to take steps as described in paragraph 
        (1).
            (3) Termination of sanctions.--The President may terminate 
        the application of any sanctions under subsection (b) if the 
        President certifies that the Government of North Korea has made 
        significant progress towards--
                    (A) completely, verifiably, and irreversibly 
                dismantling all of its nuclear, chemical, biological, 
                and radiological weapons programs, including all 
                programs for the development of systems designed in 
                whole or in part for the delivery of such weapons; and
                    (B) fully accounting for and repatriating United 
                States citizens and permanent residents (including 
                deceased United States citizens and permanent 
                residents)--
                            (i) abducted or unlawfully held captive by 
                        the Government of North Korea; or
                            (ii) detained in violation of the Agreement 
                        Concerning a Military Armistice in Korea, 
                        signed at Panmunjom July 27, 1953 (commonly 
                        referred to as the ``Korean War Armistice 
                        Agreement'').

SEC. 104. AUTHORIZATION OF IMPOSITION OF SANCTIONS WITH RESPECT TO 
              GOVERNMENTS THAT FAIL TO COMPLY WITH UNITED NATIONS 
              SECURITY COUNCIL SANCTIONS AGAINST NORTH KOREA.

    (a) Briefing Required.--Not later than 90 days after the date of 
the enactment of this Act, the President shall brief the appropriate 
congressional committees regarding each government of a foreign country 
that the President has identified as failing to--
            (1) close the branches, subsidiaries, or representative 
        offices of North Korean financial institutions in that country;
            (2) expel representatives of North Korean financial 
        institutions;
            (3) close the representative offices and expel the 
        representatives of persons designated under applicable United 
        Nations Security Council resolutions;
            (4) prohibit joint ventures with North Korean financial 
        institutions;
            (5) deregister any vessel that constitutes North Korean 
        covered property; or
            (6) expel North Korean nationals, including diplomats, 
        working on behalf of persons designated under applicable United 
        Nations Security Council resolutions.
    (b) Publication.--The Secretary of the Treasury shall publish in 
the Federal Register the names of each foreign country that has failed 
to carry out the activities described in paragraphs (1) through (6) of 
subsection (a).
    (c) Sanctions Authorized.--With respect to any government of a 
foreign country included in the briefing under subsection (a), the 
President may, until such time as the President determines that the 
government has taken substantial steps to terminate conduct described 
in that subsection, impose one or more of the following sanctions with 
respect to that government:
            (1) Prohibit or curtail the export of any goods or 
        technology to that foreign country pursuant to the authorities 
        provided in section 6 of the Export Administration Act of 1979 
        (50 U.S.C. 4605) (as continued in effect pursuant to the 
        International Emergency Economic Powers Act (50 U.S.C. 1701 et 
        seq.)).
            (2) Withhold assistance under the Foreign Assistance Act of 
        1961 (22 U.S.C. 2151 et seq.) to that government.
            (3) Instruct the United States executive director at each 
        international financial institution (as defined in section 
        1701(c) of the International Financial Institutions Act (22 
        U.S.C. 262r(c))) to use the voice and vote of the United States 
        to oppose the provision of loans, benefits, or other use of the 
        funds of the institution to that government.
    (d) Rule of Construction.--This section shall not be construed to 
limit the use of other sanctions authorities available to the President 
in response to conduct described in subsection (a).

SEC. 105. GRANTS TO CONDUCT RESEARCH ON FINANCIAL NETWORKS AND 
              FINANCIAL METHODS OF THE GOVERNMENT OF NORTH KOREA.

    (a) Grants Authorized.--
            (1) In general.--The President, acting through the Attorney 
        General, the Secretary of State, the Secretary of the Treasury, 
        or the Director of National Intelligence, may award grants to, 
        and enter into cooperative agreements with, States, units of 
        local government, nongovernmental organizations, and relevant 
        international organizations to further the purposes of this 
        title and provide data to address the issues identified in 
        section 2.
            (2) Research initiatives.--Grants awarded and cooperative 
        agreements entered into under paragraph (1) shall include 
        grants and agreements for the purpose of conducting research 
        initiatives on the following:
                    (A) The methods used by the Government of North 
                Korea to deal in, transact in, or conceal the 
                ownership, control, or origin of North Korean covered 
                property.
                    (B) The relationship between proliferation by the 
                Government of North Korea and the financial industry or 
                financial institutions.
                    (C) The export by any person to the United States 
                of North Korean covered property.
                    (D) The involvement of any person in human 
                trafficking involving citizens or nationals of North 
                Korea.
                    (E) Information relating to transactions described 
                in section 102(a).
                    (F) Information relating to activities described in 
                section 104(a).
                    (G) Information relating to the identification, 
                blocking, and release of property or proceeds described 
                in section 107(a).
                    (H) The effectiveness of law enforcement and 
                diplomatic initiatives of Federal, State, and foreign 
                governments to comply with the provisions of applicable 
                United Nations Security Council resolutions.
                    (I) The effectiveness of compliance programs within 
                the financial industry to ensure compliance with 
                applicable United Nations Security Council resolutions.
    (b) Interagency Coordination.--The President shall ensure that any 
information collected pursuant to subsection (a) is shared among the 
agencies involved in investigations described in section 102(b) of the 
North Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
9212).
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated for each of fiscal years 2018 through 2021 such sums as 
may be necessary to carry out this section.

SEC. 106. REPORT ON USE BY THE GOVERNMENT OF NORTH KOREA OF BENEFICIAL 
              OWNERSHIP RULES TO ACCESS THE INTERNATIONAL FINANCIAL 
              SYSTEM.

    (a) In General.--Not later than November 11, 2018, the Director of 
the Financial Crimes Enforcement Network of the Department of the 
Treasury shall submit to the appropriate congressional committees and 
publish in the Federal Register a report setting forth the findings of 
the Director regarding how the Government of North Korea is using laws 
regarding beneficial ownership of property to access the international 
financial system.
    (b) Elements.--The Director shall include in the report required 
under subsection (a) proposals for such legislative and administrative 
action as the Director considers appropriate.

SEC. 107. SENSE OF CONGRESS ON IDENTIFICATION AND BLOCKING OF PROPERTY 
              OF NORTH KOREAN OFFICIALS.

    (a) In General.--It is the sense of Congress that the President 
should collaborate with the Stolen Asset Recovery Initiative of the 
World Bank Group and the United Nations Office on Drugs and Crime to 
prioritize the identification, blocking, and release for humanitarian 
purposes of--
            (1) any property owned or controlled by a North Korean 
        official; or
            (2) any significant proceeds of kleptocracy by the 
        Government of North Korea or a North Korean official.
    (b) North Korean Official Defined.--In this section, the term 
``North Korean official'' includes--
            (1) the individuals described in section 304(a)(2)(B) of 
        the North Korea Sanctions and Policy Enhancement Act of 2016 
        (22 U.S.C. 9243(a)(2)(B)); and
            (2) such additional officials as the President may 
        determine to be officials of the Government of North Korea.

SEC. 108. SENSE OF CONGRESS REGARDING THE KAESONG INDUSTRIAL COMPLEX.

    (a) Findings.--Congress finds the following:
            (1) On October 14, 2006, the United Nations Security 
        Council adopted Resolution 1718, paragraph 8(d) of which 
        requires member states of the United Nations to ensure that 
        persons under their jurisdiction prevent any funds, financial 
        assets, and economic resources from being used by persons or 
        entities engaged in or proving support for the nuclear, 
        chemical, or biological weapons programs of North Korea or the 
        ballistic missile programs of North Korea.
            (2) On April 11, 2011, the President signed Executive Order 
        13570 (50 U.S.C. 1701 note; relating to prohibiting certain 
        transactions with respect to North Korea), which prohibits the 
        importation into the United States, directly or indirectly, of 
        any goods, services, or technology from North Korea, except as 
        provided in statute or in licenses, regulations, orders, or 
        directives that may be issued pursuant to that Executive order.
            (3) In April 2013, the Under Secretary of the Treasury for 
        Terrorism and Financial Intelligence said, in reference to the 
        Kaesong Industrial Complex, ``Precisely what North Koreans do 
        with earnings from Kaesong, I think, is something that we are 
        concerned about.''.
            (4) In February 2016, on announcing the suspension of 
        operations at the Kaesong Industrial Complex, the Unification 
        Ministry of the Republic of Korea stated that the Government of 
        North Korea may have used the proceeds from the Kaesong 
        Industrial Complex to finance its nuclear weapons program.
            (5) On November 30, 2016, the United States Security 
        Council approved Resolution 2321, paragraph 32 of which 
        requires member states of the United Nations to prohibit public 
        and private financial support for trade with North Korea from 
        within their territories or by persons subject to their 
        jurisdiction, including the granting of export credits, 
        guarantees, or insurance to persons involved in such trade, 
        except as approved in advance by a committee appointed by the 
        Security Council on a case-by-case basis.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the United States stands in solidarity with its ally in 
        the Republic of Korea, and has expressed that solidarity with 
        the sacrifice of 36,914 people of the United States and with 
        the continued presence of 29,500 members of the Armed Forces of 
        the United States in the Republic of Korea;
            (2) the nuclear weapons program of North Korea poses a 
        grave and imminent threat to the freedom and security of both 
        the United States and the Republic of Korea;
            (3) the Kaesong Industrial Complex yielded few, if any, 
        apparent benefits with regard to the reform, liberalization, or 
        disarmament of North Korea;
            (4) the unconditional provision of revenue from the Kaesong 
        Industrial Complex to the Government of North Korea undermines 
        the financial pressure necessary to strict and effective 
        enforcement of United Nations Security Council sanctions;
            (5) the strict and effective enforcement of United Nations 
        Security Council sanctions is the last plausible option to 
        achieve the complete, verifiable, irreversible, and peaceful 
        nuclear disarmament of North Korea; and
            (6) the Kaesong Industrial Complex should not be reopened 
        until the Government of North Korea has completely, verifiably, 
        and irreversibly dismantled all of its nuclear, chemical, 
        biological, and radiological weapons programs, including all 
        programs for the development of systems designed in whole or in 
        part for the delivery of such weapons.

                 TITLE II--DIVESTMENT FROM NORTH KOREA

SEC. 201. AUTHORITY OF STATE AND LOCAL GOVERNMENTS TO DIVEST FROM 
              COMPANIES THAT INVEST IN NORTH KOREA.

    (a) Sense of Congress.--It is the sense of Congress that the United 
States should support the decision of any State or local government, 
for moral, prudential, or reputational reasons, to divest from, or 
prohibit the investment of assets of the State or local government in, 
a person that engages in investment activities involving North Korean 
covered property if North Korea is subject to economic sanctions 
imposed by the United States or the United Nations Security Council.
    (b) Authority To Divest.--Notwithstanding any other provision of 
law, a State or local government may adopt and enforce measures that 
meet the requirements of subsection (c) to divest the assets of the 
State or local government from, or prohibit investment of the assets of 
the State or local government in, any person that the State or local 
government determines, using credible information available to the 
public, engages in investment activities involving North Korean covered 
property of a value of more than $10,000.
    (c) Requirements.--Any measure taken by a State or local government 
under subsection (b) shall meet the following requirements:
            (1) Notice.--The State or local government shall provide 
        written notice to each person with respect to which a measure 
        under this section is to be applied.
            (2) Timing.--The measure applied under this section shall 
        apply to a person not earlier than the date that is 90 days 
        after the date on which written notice under paragraph (1) is 
        provided to the person.
            (3) Opportunity to demonstrate compliance.--
                    (A) In general.--The State or local government 
                shall provide to each person with respect to which a 
                measure is to be applied under this section an 
                opportunity to demonstrate to the State or local 
                government that the person does not engage in 
                investment activities in North Korean covered property.
                    (B) Nonapplication.--If a person with respect to 
                which a measure is to be applied under this section 
                demonstrates to the State or local government under 
                subparagraph (A) that the person does not engage in 
                investment activities in North Korean covered property, 
                the measure shall not apply to that person.
            (4) Sense of congress on avoiding erroneous targeting.--It 
        is the sense of Congress that a State or local government 
        should not adopt a measure under subsection (b) with respect to 
        a person unless the State or local government has--
                    (A) made every effort to avoid erroneously 
                targeting the person; and
                    (B) verified that the person engages in investment 
                activities in North Korean covered property.
    (d) Notice to Department of Justice.--Not later than 30 days after 
a State or local government applies a measure under this section, the 
State or local government shall notify the Attorney General of that 
measure.
    (e) Authorization for Prior Applied Measures.--
            (1) In general.--Notwithstanding any other provision of 
        this section or any other provision of law, a State or local 
        government may enforce a measure (without regard to the 
        requirements of subsection (c), except as provided in paragraph 
        (2)) applied by the State or local government before the date 
        of the enactment of this Act that provides for the divestment 
        of assets of the State or local government from, or prohibits 
        the investment of the assets of the State or local government 
        in, any person that the State or local government determines, 
        using credible information available to the public, engages in 
        investment activities in North Korean covered property that are 
        identified in that measure.
            (2) Application of notice requirements.--A measure 
        described in paragraph (1) shall be subject to the requirements 
        of paragraphs (1), (2), and (3)(A) of subsection (c) on and 
        after the date that is two years after the date of the 
        enactment of this Act.
    (f) No Preemption.--A measure applied by a State or local 
government authorized under subsection (b) or (e) is not preempted by 
any Federal law.
    (g) Definitions.--In this section:
            (1) Asset.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``asset'' means public monies, and 
                includes any pension, retirement, annuity, endowment 
                fund, or similar instrument, that is controlled by a 
                State or local government.
                    (B) Exception.--The term ``asset'' does not include 
                employee benefit plans covered by title I of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1001 et seq.).
            (2) Investment.--The term ``investment'' includes--
                    (A) a commitment or contribution of funds or 
                property;
                    (B) a loan or other extension of credit; and
                    (C) the entry into or renewal of a contract for 
                goods or services.
    (h) Effective Date.--
            (1) In general.--Except as provided in paragraph (2) and 
        subsection (e), this section applies to measures applied by a 
        State or local government before, on, or after the date of the 
        enactment of this Act.
            (2) Notice requirements.--Except as provided in subsection 
        (h), subsections (c) and (d) apply to measures applied by a 
        State or local government on or after the date of the enactment 
        of this Act.

SEC. 202. SAFE HARBOR FOR CHANGES OF INVESTMENT POLICIES BY ASSET 
              MANAGERS.

    (a) In General.--Section 13(c)(1) of the Investment Company Act of 
1940 (15 U.S.C. 80a-13(c)(1)) is amended--
            (1) in subparagraph (A) by striking ``or'' at the end;
            (2) in subparagraph (B) by striking the period and 
        inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(C) engage in investment activities involving 
                North Korean covered property, as defined in section 3 
                of the Banking Restrictions Involving North Korea 
                (BRINK) Act of 2017.''.
    (b) Securities and Exchange Commission Regulations.--Not later than 
120 days after the date of the enactment of this Act, the Securities 
and Exchange Commission shall issue any revisions the Securities and 
Exchange Commission determines to be necessary to the regulations 
requiring disclosure by each registered investment company that divests 
itself of securities in accordance with section 13(c) of the Investment 
Company Act of 1940 (15 U.S.C. 80a-13(c)), including in accordance with 
paragraph (1)(C) of that section, as added by subsection (a)(3).

SEC. 203. SENSE OF CONGRESS REGARDING CERTAIN ERISA PLAN INVESTMENTS.

    It is the sense of Congress that--
            (1) a fiduciary of an employee benefit plan, as defined in 
        section 3(3) of the Employee Retirement Income Security Act of 
        1974 (29 U.S.C. 1002(3)), may divest plan assets from, or avoid 
        investing plan assets in, any person the fiduciary determines 
        engages in investment activities involving North Korean covered 
        property, if--
                    (A) the fiduciary makes that determination using 
                credible information that is available to the public; 
                and
                    (B) the fiduciary prudently determines that the 
                result of that divestment or avoidance of investment 
                would not be expected to provide the employee benefit 
                plan with--
                            (i) a lower rate of return than alternative 
                        investments with commensurate degrees of risk; 
                        or
                            (ii) a higher degree of risk than 
                        alternative investments with commensurate rates 
                        of return; and
            (2) by divesting assets or avoiding the investment of 
        assets as described in paragraph (1), the fiduciary is not 
        breaching the responsibilities, obligations, or duties imposed 
        upon the fiduciary by subparagraph (A) or (B) of section 
        404(a)(1) of the Employee Retirement Income Security Act of 
        1974 (29 U.S.C. 1104(a)(1)).

SEC. 204. RULE OF CONSTRUCTION.

    Nothing in this Act or any other provision of law authorizing 
sanctions with respect to North Korea shall be construed to affect or 
displace--
            (1) the authority of a State or local government to issue 
        and enforce rules governing the safety, soundness, and solvency 
        of a financial institution subject to its jurisdiction; or
            (2) the regulation and taxation by the several States of 
        the business of insurance, pursuant to the Act of March 9, 1945 
        (59 Stat. 34, chapter 20; 15 U.S.C. 1011 et seq.) (commonly 
        known as the ``McCarran-Ferguson Act'').

                     TITLE III--GENERAL AUTHORITIES

SEC. 301. RULEMAKING.

    The President may prescribe such rules and regulations as may be 
necessary to carry out this Act.

SEC. 302. AUTHORITY TO CONSOLIDATE REPORTS.

    (a) In General.--Any and all reports required to be submitted to 
the appropriate congressional committees under this Act that are 
subject to a deadline for submission consisting of the same unit of 
time may be consolidated into a single report that is submitted 
pursuant to that deadline.
    (b) Contents.--Any reports consolidated under subsection (a) shall 
contain all information required under this Act and any other elements 
that may be required by existing law.

SEC. 303. RULE OF CONSTRUCTION.

    Nothing in this Act shall be construed to limit the authority or 
obligation of the President--
            (1) to apply the sanctions described in section 104 of the 
        North Korea Sanctions and Policy Enhancement Act of 2016 (22 
        U.S.C. 9214) with regard to persons that meet the criteria for 
        designation under such section; or
            (2) to exercise any other law enforcement authorities 
        available to the President.
                                 <all>