text: .--
              (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.
target: (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.
feat_title: China Nonproliferation Act