article: .-- (1) Definition.--For purposes of this section, a joint resolution means a resolution introduced by any Member of Congress after the date the notification described in section 3 is received, the resolving clause of which contains only the following: ``That Congress does not agree with the justification contained in the notification submitted by the President pursuant to the China Nonproliferation Act on ______________ and that the President shall exercise the mandatory measures under section 4 of the Act and one or all of the tier ____ measures under that Act.''; with the first blank space being filled with the appropriate date and the second blank space being filled with the appropriate tier. (2) Referral to committee.-- (A) Senate.--A joint resolution introduced in the Senate shall be referred to the Committee on Foreign Relations of the Senate. (B) House of representatives.--A joint resolution introduced in the House of Representatives shall be referred to the Committee on International Relations of the House of Representatives. (C) Reporting.--A joint resolution may not be reported before the 8th day after the date on which the joint resolution is introduced. (3) Discharge of committee.--If the committee to which a joint resolution is referred in either House has not reported the joint resolution (or an identical joint resolution) at the end of 15 calendar days during which that House is in session after the date on which the joint resolution is introduced-- (A) the committee shall be deemed to be discharged from further consideration of the joint resolution; and (B) the joint resolution shall be placed on the appropriate calendar of that House. (4) Floor consideration.-- (A) In general.-- (i) Motion to proceed to consideration.-- When the committee to which a joint resolution is referred in either House has reported, or has been deemed to be discharged (under paragraph (3)) from further consideration of, a joint resolution-- (I) it is at any time thereafter in order (even though a previous motion to the same effect has been disagreed to) for any Member of that House to move to proceed to the consideration of the joint resolution; and (II) all points of order against the joint resolution (and against consideration of the joint resolution) are waived. (ii) Treatment of motion.--A motion under clause (i)-- (I) is privileged in the Senate and is highly privileged in the House of Representatives; (II) is not debatable; and (III) is not subject to amendment, a motion to postpone, or a motion to proceed to the consideration of other business. (iii) No motion to reconsider.--A motion to reconsider the vote by which a motion under clause (i) is agreed to or disagreed to shall not be in order. (iv) Agreement to motion.--If a motion under clause (i) is agreed to, the joint resolution shall remain the unfinished business of the House until the House disposes of the joint resolution. (B) Debate.-- (i) Time.--Debate on a joint resolution, and on all debatable motions and appeals in connection with consideration of a joint resolution, shall be limited to not more than 10 hours, which shall be divided equally between those favoring and those opposing the joint resolution. A motion further to limit debate is in order and not debatable. (ii) Amendments and motions out of order.-- An amendment to a joint resolution, a motion to postpone, to proceed to the consideration of other business, or to recommit such a joint resolution, or a motion to reconsider the vote by which such a joint resolution is agreed to or disagreed to is not in order. (C) Vote on final passage.--A vote on final passage of the joint resolution shall be taken in each House on or before the close of the 15th calendar day during which that House is in session after the resolution is reported by the committee of that House to which it was referred, or after the committee has been discharged from further consideration of the resolution. (D) Rulings of the chair of procedure.--Appeals from the decisions of the Chair relating to the application of the rules of either House to the procedure relating to a joint resolution shall be decided without debate. (5) Coordination with action by other house.-- (A) In general.--If, before the passage by 1 House of a joint resolution of that House, that House receives from the other House a joint resolution, the procedures stated in this paragraph shall apply. (B) No referral.--The joint resolution of the other House shall not be referred to a committee. (C) Procedure.--With respect to a joint resolution of the House receiving the joint resolution-- (i) the procedure in that House shall be the same as if no joint resolution had been received from the other House; but (ii) the vote on final passage shall be on the joint resolution of the other House. (6) Rules of the senate and the house of representatives.-- This subsection is enacted by Congress-- (A) as an exercise of the rulemaking power of the Senate and the House of Representatives, respectively; and (i) 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; and (ii) supersedes other rules only to the extent that the subsection is inconsistent with those rules; and (B) with full recognition of the constitutional right of either House to change the rules (so far as the rules relate 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. SEC. 7. DETERMINATION EXEMPTING PERSON OR THE PEOPLE'S REPUBLIC OF CHINA FROM SECTIONS 4 AND 5. (a) In General.--Sections 4 and 5 shall not apply to a person or to the People's Republic of China 15 days after the President reports to the Committee on International Relations of the House of Representatives, the Committee on Foreign Relations of the Senate, the Committee on Armed Services of the Senate, the Select Committee on Intelligence of the Senate, and the Committee on Governmental Affairs of the Senate, that the President has determined, on the basis of information provided by that person, or otherwise obtained by the President, that-- (1) the person did not, on or after January 1, 2000, knowingly transfer to or export from the People's Republic of China the goods, services, or technology the apparent transfer or export of which caused that person to be identified in a report submitted pursuant to section 3(a); (2) the person is subject to the primary jurisdiction of a government that is an adherent to one or more relevant nonproliferation regimes, the person was identified in a report submitted pursuant to section 3(a) with respect to a transfer of goods, services, or technology described in section 3(a)(1), and such transfer was made consistent with the guidelines and parameters of all such relevant regimes of which such government is an adherent; or (3) it is important to the national security of the United States not to apply the provisions of section 4 or 5. (b) Opportunity To Provide Information.--Congress urges the President-- (1) in every appropriate case, to contact in a timely fashion each person identified in each report submitted pursuant to section 3(a), or the government with primary jurisdiction over such person, in order to afford such person or government, the opportunity to provide explanatory, exculpatory, or other additional information with respect to the transfer that caused such person to be identified in a report submitted pursuant to section 3(a); and (2) to exercise the authority in subsection (a) in all cases where information obtained from a foreign person identified in a report submitted pursuant to section 3(a), or from the government with primary jurisdiction over such person, establishes that the exercise of such authority is warranted. (c) Submission in Classified Form.--The determination and report of the President under subsection (a) should be submitted in unclassified form, with classified annexes as necessary. SEC. 8. NOTIFICATION TO SECURITIES COMMISSION OF INCLUSION IN REPORT. (a) Definitions.--In this section, the following definitions shall apply: (1) Commission.--The term ``Commission'' means the Securities and Exchange Commission. (2) Registered national securities association.--The term ``registered national securities association'' means an association registered under section 15A(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78o-3(b)). (3) Registered national securities exchange.--The term ``registered national securities exchange'' means a national securities exchange registered under 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f). (4) Registration statement.--The term ``registration statement'' has the same meaning as in section 2 of the Securities Act of 1933 (15 U.S.C. 77b). (5) Securities laws.--The terms ``securities laws'' and ``security'' have the same meanings as in section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c). (b) Notification to the Commission.--Each report prepared by the President under section 3 shall be transmitted to the Commission at the times specified in section 3(b). (c) Regulations.--Not later than 6 months after the date of enactment of this Act, the Commission shall promulgate regulations-- (1) to ensure that securities investors are notified of the identity of any person included in a report prepared by the President under section 3, the securities of which are listed, or authorized for listing, on a registered national securities exchange (or tier or segment thereof) or by a registered national securities association; and (2) to require each person included in a report of the President under section 3 to provide notice of such inclusion in each written report, statement, or other filing or notice required from that person under the securities laws, including-- (A) any registration statement; (B) any annual or quarterly report, statement, or other filing or notice; (C) any proxy, consent, authorization, information statement, or other notice required to be sent to shareholders with respect to any security registered pursuant to the securities laws; (D) any report, statement, or other filing or notice required in connection with an initial public offering; and (E) any report, statement, or other filing required in connection with a merger, acquisition, tender offer, or similar transaction.
summary: (Sec. 3) Requires the President to include in the report information: (1) on any action taken by a person identified in a prior annual report that establishes that the person has discontinued, rectified, or mitigated a prior proliferation activity identified under this Act; (2) on measures taken against such persons or against China in response to proliferation activities; and (3) other specified information. Requires submission of such reports in unclassified form, with classified annexes as necessary. (Sec. 4) Directs the President to apply certain measures for at least 12 months to each person identified in the annual report. Includes among such measures: (1) those set forth Executive Order No. 12938; (2) prohibition of U.S. Government transfers or sales to such person of any item on the U.S. Munitions List, and termination of all sales and after-sale servicing to such person of any defense articles, defense services, or design and construction services under the Arms Export Control Act; (3) denial of licenses, suspension of existing licenses, and termination of all transfers or sales and after-sale servicing for the transfer to such person of any item the export of which is controlled under the Export Administration Act of 1979 or the Export Administration regulations; (4) prohibition of U.S. Government procurement of any goods or services from such person; (5) prohibition of U.S. assistance to such person in the form of grants, loans, credits, guarantees, or otherwise; (6) immediate suspension of any agreements or efforts for the co-development or co-production with such person of any item on the U.S. Munitions List. Sets conditions for the lifting of such measures. (Sec. 5) Requires the President to apply additional specified tier 1, tier 2, and tier 3 measures against China if certain circumstances exist. Requires one or more tier 2 measures if a person's proliferation activities are not rectified, or a person has engaged in additional proliferation activities, one year after imposition of section (4) measures, and one or more tier 3 measures if similar circumstances exist two years after imposition of section (4) measures. (Sec. 6) Sets forth procedures for congressional review of any presidential decision not to impose sanctions under this Act, or to exempt a person or China from such sanctions. Mandates imposition of such sanctions if Congress disapproves by joint resolution the President's decision. (Sec. 7) Requires transmittal to the Securities and Exchange Commission (SEC) of the President's annual report under this Act. Requires the SEC to promulgate regulations to: (1) ensure that securities investors are notified of the identity of any person in the report the securities of which are listed, or authorized for listing, on a registered national securities exchange (or tier or segment) or by a registered national securities association; and (2) require each person included in such a report to provide notice of such inclusion in each written report, registration statement, or other filing or notice required from that person under the securities laws.