Public Law 105-261, Strom Thurmond NDAA for FY 1999, Sections 1511-1522

        Subtitle B--Satellite Export Controls
SEC. 1511. <<NOTE: 22 USC 2778 note.>> SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) United States business interests must not be placed 
        above United States national security interests;
            (2) United States foreign policy and the policies of the 
        United States regarding commercial relations with other 
        countries should affirm the importance of observing and adhering 
        to the Missile Technology Control Regime (MTCR);
            (3) the United States should encourage universal observance 
        of the Guidelines to the Missile Technology Control Regime;
            (4) the exportation or transfer of advanced communication 
        satellites and related technologies from United States sources 
        to foreign recipients should not increase the risks to the 
        national security of the United States;
            (5) due to the military sensitivity of the technologies 
        involved, it is in the national security interests of the United 
        States that United States satellites and related items be 
        subject to the same export controls that apply under United 
        States law and practices to munitions;
            (6) the United States should not issue any blanket waiver of 
        the suspensions contained in section 902 of the Foreign 
        Relations Authorization Act, Fiscal Years 1990 and 1991 (Public 
        Law 101-246), regarding the export of satellites of United

[[Page 112 STAT. 2174]]

        States origin intended for launch from a launch vehicle owned by 
        the People's Republic of China;
            (7) the United States should pursue policies that protect 
        and enhance the United States space launch industry; and
            (8) the United States should not export to the People's 
        Republic of China missile equipment or technology that would 
        improve the missile or space launch capabilities of the People's 
        Republic of China.

SEC. 1512. <<NOTE: 22 USC 2778 note.>> CERTIFICATION OF EXPORTS OF 
            MISSILE EQUIPMENT OR TECHNOLOGY TO CHINA.

    The President shall certify to the Congress at least 15 days in 
advance of any export to the People's Republic of China of missile 
equipment or technology (as defined in section 74 of the Arms Export 
Control Act (22 U.S.C. 2797c)) that--
            (1) such export is not detrimental to the United States 
        space launch industry; and
            (2) the missile equipment or technology, including any 
        indirect technical benefit that could be derived from such 
        export, will not measurably improve the missile or space launch 
        capabilities of the People's Republic of China.

SEC. 1513. <<NOTE: 22 USC 2778 note.>> SATELLITE CONTROLS UNDER THE 
            UNITED STATES MUNITIONS LIST.

    (a) Control of Satellites on the United States Munitions List.--
Notwithstanding any other provision of law, all satellites and related 
items that are on the Commerce Control List of dual-use items in the 
Export Administration Regulations (15 CFR part 730 et seq.) on the date 
of the enactment of this Act shall be transferred to the United States 
Munitions List and controlled under section 38 of the Arms Export 
Control Act (22 U.S.C. 2778).
    (b) Defense Trade Controls Registration Fees.--Section 45 of the 
State Department Basic Authorities Act of 1956 (22 U.S.C. 2717) is 
amended--
            (1) in subsection (a)--
                    (A) by striking out ``$700,000'' and inserting in 
                lieu thereof ``100 percent''; and
                    (B) by striking out ``(a) Defense Trade Controls 
                Registration Fees.--''; and
            (2) by striking out subsection (b).

    (c) Effective Date.--(1) Subsection (a) shall take effect on March 
15, 1999, and shall not apply to any export license issued before such 
effective date or to any export license application made under the 
Export Administration Regulations before such effective date.
    (2) The amendments made by subsection (b) shall be effective as of 
October 1, 1998.
    (d) Report.--Not later than January 1, 1999, the Secretary of State, 
in consultation with the Secretary of Defense and the Secretary of 
Commerce, shall submit to Congress a report containing--
            (1) a detailed description of the plans of the Department of 
        State to implement the requirements of this section, including 
        any organizational changes that are required and any Executive 
        orders or regulations that may be required;
            (2) an identification and explanation of any steps that 
        should be taken to improve the license review process for

[[Page 112 STAT. 2175]]

        exports of the satellites and related items described in 
        subsection (a), including measures to shorten the timelines for 
        license application reviews, and any measures relating to the 
        transparency of the license review process and dispute 
        resolution procedures;
            (3) an evaluation of the adequacy of resources available to 
        the Department of State, including fiscal and personnel 
        resources, to carry out the additional activities required by 
        this section; and
            (4) any recommendations for additional actions, including 
        possible legislation, to improve the export licensing process 
        under the Arms Export Control Act for the satellites and related 
        items described in subsection (a).

SEC. 1514. <<NOTE: 22 USC 2778 note.>> NATIONAL SECURITY CONTROLS ON 
            SATELLITE EXPORT LICENSING.

    (a) Actions by the President.--Notwithstanding any other provision 
of law, the President shall take such actions as are necessary to 
implement the following requirements for improving national security 
controls in the export licensing of satellites and related items:
            (1) Mandatory technology control plans.--All export licenses 
        shall require a technology transfer control plan approved by the 
        Secretary of Defense and an encryption technology transfer 
        control plan approved by the Director of the National Security 
        Agency.
            (2) Mandatory monitors and reimbursement.--
                    (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 aspects of the launch in order to 
                ensure that no unauthorized transfer of technology 
                occurs, including technical assistance and technical 
                data. The costs of such monitoring services shall be 
                fully reimbursed to the Department of Defense by the 
                person or entity receiving such services. All 
                reimbursements received under this subparagraph shall be 
                credited to current appropriations available for the 
                payment of the costs incurred in providing such 
                services.
                    (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, operation, 
                      maintenance, modification, and repair of 
                      satellites, satellite components, missiles, other 
                      equipment, launch facilities, and launch vehicles;
                          (ii) satellite processing and launch 
                      activities, including launch preparation, 
                      satellite transportation, integration of the 
                      satellite with the launch vehicle, testing and 
                      checkout prior to launch, satellite launch, and 
                      return of equipment to the United States;
                          (iii) activities relating to launch failure, 
                      delay, or cancellation, including post-launch 
                      failure investigations; and
                          (iv) all other aspects of the launch.

[[Page 112 STAT. 2176]]

            (3) Mandatory licenses for 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 requirements 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 establish and 
                implement a technology transfer control 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 certification.--All 
        technology transfer control plans for satellites or related 
        items shall require any United States person or entity 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 
        or entity to certify after the launch that it has complied with 
        this notification requirement.
            (5) Mandatory intelligence community review.--The Secretary 
        of Commerce and the Secretary of State shall provide to the 
        Secretary of Defense and the Director of Central Intelligence 
        copies of all export license applications and technical 
        assistance agreements submitted for approval in connection with 
        launches in foreign countries of satellites to verify the 
        legitimacy of the stated end-user or end-users.
            (6) Mandatory sharing of approved licenses and agreements.--
        The Secretary of State shall provide copies of all approved 
        export licenses and technical assistance agreements associated 
        with launches in foreign countries of satellites to the 
        Secretaries of Defense and Energy, the Director of Central 
        Intelligence, and the Director of the Arms Control and 
        Disarmament Agency.
            (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 head of the department or 
        agency issuing the license 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) Establishing safeguards program.--The Secretary of 
        Defense shall establish a program for recruiting, training, and 
        maintaining a staff dedicated to monitoring launches in foreign 
        countries of satellites and related items of United States 
        origin.

    (b) Exception.--This section shall not apply to the export of a 
satellite or related items for launch in, or by nationals of,

[[Page 112 STAT. 2177]]

a country that is a member of the North Atlantic Treaty Organization or 
that is a major non-NATO ally of the United States.
    (c) Effective <<NOTE: President.>> Date.--The President shall take 
the actions required by subsection (a) not later than 45 days after the 
date of the enactment of this Act.

SEC. 1515. <<NOTE: 22 USC 2778 note.>> REPORT ON EXPORT OF SATELLITES 
            FOR LAUNCH BY PEOPLE'S REPUBLIC OF CHINA.

    (a) Requirement for Report.--Each report to Congress submitted 
pursuant to subsection (b) of section 902 of the Foreign Relations 
Authorization Act, Fiscal Years 1990 and 1991 (22 U.S.C. 2151 note; 
Public Law 101-246) to waive the restrictions contained in subsection 
(a) of that section on the export to the People's Republic of China of 
any satellite of United States origin or related items shall be 
accompanied by a detailed justification setting forth the following:
            (1) A detailed description of all militarily sensitive 
        characteristics integrated within, or associated with, the 
        satellite.
            (2) An estimate of the number of United States civilian 
        contract personnel expected to be needed in country to carry out 
        the proposed satellite launch.
            (3)(A) A detailed description of the United States 
        Government's plan to monitor the proposed satellite launch to 
        ensure that no unauthorized transfer of technology occurs, 
        together with an estimate of the number of officers and 
        employees of the United States that are expected to be needed in 
        country to carry out monitoring of the proposed satellite 
        launch; and
            (B) the estimated cost to the Department of Defense of 
        monitoring the proposed satellite launch and the amount of such 
        cost that is to be reimbursed to the department.
            (4) The reasons why the proposed satellite launch is in the 
        national security interest of the United States.
            (5) The impact of the proposed export on employment in the 
        United States, including the number of new jobs created in the 
        United States, on a State-by-State basis, as a direct result of 
        the proposed export.
            (6) The number of existing jobs in the United States that 
        would be lost, on a State-by-State basis, as a direct result of 
        the proposed export not being licensed.
            (7) The impact of the proposed export on the balance of 
        trade between the United States and the People's Republic of 
        China and on reducing the current United States trade deficit 
        with the People's Republic of China.
            (8) The impact of the proposed export on the transition of 
        the People's Republic of China from a nonmarket economy to a 
        market economy and the long-term economic benefit to the United 
        States.
            (9) The impact of the proposed export on opening new markets 
        to United States-made products through the purchase by the 
        People's Republic of China of United States-made goods and 
        services not directly related to the proposed export.
            (10) The impact of the proposed export on reducing acts, 
        policies, and practices that constitute significant trade 
        barriers to United States exports or foreign direct investment 
        in the People's Republic of China by United States nationals.

[[Page 112 STAT. 2178]]

            (11) The increase that will result from the proposed export 
        in the overall market share of the United States for goods and 
        services in comparison to Japan, France, Germany, the United 
        Kingdom, and Russia.
            (12) The impact of the proposed export on the willingness of 
        the People's Republic of China to modify its commercial and 
        trade laws, practices, and regulations to make United States-
        made goods and services more accessible to that market.
            (13) The impact of the proposed export on the willingness of 
        the People's Republic of China to reduce formal and informal 
        trade barriers and tariffs, duties, and other fees on United 
        States-made goods and services entering that country.

    (b) Militarily Sensitive Characteristics Defined.--In this section, 
the term ``militarily sensitive characteristics'' includes antijamming 
capability, antennas, crosslinks, baseband processing, encryption 
devices, radiation-hardened devices, propulsion systems, pointing 
accuracy, kick motors, and other such characteristics as are specified 
by the Secretary of Defense.

SEC. 1516. <<NOTE: 22 USC 2778 note.>> RELATED ITEMS DEFINED.

    In this subtitle, the term ``related items'' means the satellite 
fuel, ground support equipment, test equipment, payload adapter or 
interface hardware, replacement parts, and non-embedded 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 )).

                Subtitle C--Other Export Control Matters

SEC. 1521. AUTHORITY FOR EXPORT CONTROL ACTIVITIES OF THE DEPARTMENT OF 
            DEFENSE.

    (a) Functions of the Under Secretary for Policy.--Section 134(b) of 
title 10, United States Code, is amended by adding at the end the 
following new paragraph:
    ``(3) Subject to the authority, direction, and control of the 
Secretary of Defense, the Under Secretary shall have responsibility for 
supervising and directing activities of the Department of Defense 
relating to export controls.''.
    (b) Establishment of Deputy Under Secretary for Technology Security 
Policy.--(1) Chapter 4 of title 10, United States Code, is amended by 
inserting after section 134a the following new section:

``Sec. 134b. Deputy Under Secretary of Defense for Technology Security 
                        Policy

    ``(a) There is in the Office of the Under Secretary of Defense for 
Policy a Deputy Under Secretary of Defense for Technology Security 
Policy.
    ``(b) The Deputy Under Secretary serves as the Director of the 
Defense Technology Security Administration (or any successor 
organization charged with similar responsibilities).
    ``(c) The principal duties of the Deputy Under Secretary are--
            ``(1) assisting the Under Secretary of Defense for Policy in 
        supervising and directing the activities of the Department of 
        Defense relating to export controls; and

[[Page 112 STAT. 2179]]

            ``(2) assisting the Under Secretary of Defense for Policy in 
        developing policies and positions regarding the appropriate 
        export control policies and procedures that are necessary to 
        protect the national security interests of the United States.

    ``(d) The Deputy Under Secretary shall perform such additional 
duties and exercise such authority as the Secretary of Defense may 
prescribe.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 134a the 
following new item:

``134b. Deputy Under Secretary of Defense for Technology Security 
           Policy.''.

     <<NOTE: 10 USC 134 note.>> (c) Time for Implementation.--The 
Secretary of Defense shall complete the actions necessary to implement 
the amendment made by subsection (a) and to establish the office of 
Deputy Under Secretary of Defense for Technology Security Policy in 
accordance with section 134b of title 10, United States Code, as added 
by subsection (b), not later than 60 days after the date of the 
enactment of this Act.

     <<NOTE: 10 USC 134 note.>> (d) Report.--Not later than 90 days 
after the date of the enactment of this Act, the Secretary of Defense 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
on the plans of the Secretary for implementing the amendments made by 
subsections (a) and (b). The report shall include the following:
            (1) A description of any organizational changes that are to 
        be made within the Department of Defense to implement those 
        amendments.
            (2) A description of the role of the Chairman of the Joint 
        Chiefs of Staff in the export control activities of the 
        Department of Defense after those subsections are implemented, 
        together with a discussion of how that role compares to the 
        Chairman's role in those activities before the implementation of 
        those subsections.

SEC. 1522. <<NOTE: 50 USC app. 2404 note.>> RELEASE OF EXPORT 
            INFORMATION BY DEPARTMENT OF COMMERCE TO OTHER AGENCIES FOR 
            PURPOSE OF NATIONAL SECURITY ASSESSMENT.

    (a) Release of Export Information.--The Secretary of Commerce shall, 
upon the written request of an official specified in subsection (c), 
transmit to that official any information relating to exports that is 
held by the Department of Commerce and is requested by that official for 
the purpose of assessing national security risks. The Secretary shall 
transmit such information within 10 business days after receiving such a 
request.
    (b) Nature of Information.--The information referred to in 
subsection (a) includes information concerning--
            (1) export licenses issued by the Department of Commerce;
            (2) exports that were carried out under an export license 
        issued by the Department of Commerce; and
            (3) exports from the United States that were carried out 
        without an export license.

    (c) Requesting Officials.--The officials referred to in subsection 
(a) are the Secretary of State, the Secretary of Defense, the Secretary 
of Energy, and the Director of Central Intelligence. Each of those 
officials may delegate to any other official within

[[Page 112 STAT. 2180]]

their respective departments and agency the authority to request 
information under subsection (a). 

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