[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 973 Engrossed in House (EH)]


  1st Session

                               H. R. 973

_______________________________________________________________________

                                 AN ACT

    To modify authorities with respect to the provision of security 
assistance under the Foreign Assistance Act of 1961 and the Arms Export 
                  Control Act, and for other purposes.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
106th CONGRESS
  1st Session
                                H. R. 973

_______________________________________________________________________

                                 AN ACT


 
    To modify authorities with respect to the provision of security 
assistance under the Foreign Assistance Act of 1961 and the Arms Export 
                  Control Act, 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.

    This Act may be cited as the ``Security Assistance Act of 1999''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
             TITLE I--TRANSFERS OF EXCESS DEFENSE ARTICLES

Sec. 101. Excess defense articles for central European countries.
Sec. 102. Excess defense articles for certain independent States of the 
                            former Soviet Union.
              TITLE II--FOREIGN MILITARY SALES AUTHORITIES

Sec. 201. Termination of foreign military financed training.
Sec. 202. Sales of excess Coast Guard property.
Sec. 203. Competitive pricing for sales of defense articles.
Sec. 204. Reporting of offset agreements.
Sec. 205. Notification of upgrades to direct commercial sales.
Sec. 206. Expanded prohibition on incentive payments.
Sec. 207. Administrative fees for leasing of defense articles.
    TITLE III--STOCKPILING OF DEFENSE ARTICLES FOR FOREIGN COUNTRIES

Sec. 301. Additions to United States war reserve stockpiles for allies.
Sec. 302. Transfer of certain obsolete or surplus defense articles in 
                            the war reserves stockpile for allies.
     TITLE IV--INTERNATIONAL ARMS SALES CODE OF CONDUCT ACT OF 1999

Sec. 401. Short title.
Sec. 402. Findings.
Sec. 403. International arms sales code of conduct.
 TITLE V--AUTHORITY TO EXEMPT INDIA AND PAKISTAN FROM CERTAIN SANCTIONS

Sec. 501. Waiver authority.
Sec. 502. Consultation.
Sec. 503. Reporting requirement.
Sec. 504. Appropriate congressional committees defined.
    TITLE VI--TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES

Sec. 601. Authority to transfer naval vessels.
Sec. 602. Inapplicability of aggregate annual limitation on value of 
                            transferred excess defense articles.
Sec. 603. Costs of transfers.
Sec. 604. Expiration of authority.
Sec. 605. Repair and refurbishment of vessels in United States 
                            shipyards.
Sec. 606. Sense of the Congress relating to transfer of naval vessels 
                            and aircraft to the Government of the 
                            Philippines.
                  TITLE VII--MISCELLANEOUS PROVISIONS

Sec. 701. Annual military assistance reports.
Sec. 702. Publication of arms sales certifications.
Sec. 703. Notification requirements for commercial export of 
                            significant military equipment on United 
                            States Munitions List.
Sec. 704. Enforcement of Arms Export Control Act.
Sec. 705. Violations relating to material support to terrorists.
Sec. 706. Authority to consent to third party transfer of ex-U.S.S. 
                            Bowman County to USS LST Ship Memorial, 
                            Inc.
Sec. 707. Exceptions relating to prohibitions on assistance to 
                            countries involved in transfer or use of 
                            nuclear explosive devices.
Sec. 708. Continuation of the export control regulations under IEEPA.

             TITLE I--TRANSFERS OF EXCESS DEFENSE ARTICLES

SEC. 101. EXCESS DEFENSE ARTICLES FOR CENTRAL EUROPEAN COUNTRIES.

    Section 105 of Public Law 104-164 (110 Stat. 1427) is amended by 
striking ``1996 and 1997'' and inserting ``2000 and 2001''.

SEC. 102. EXCESS DEFENSE ARTICLES FOR CERTAIN INDEPENDENT STATES OF THE 
              FORMER SOVIET UNION.

    (a) Uses For Which Funds Are Available.--Notwithstanding section 
516(e) of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j(e)), 
during each of the fiscal years 2000 and 2001, funds available to the 
Department of Defense may be expended for crating, packing, handling, 
and transportation of excess defense articles transferred under the 
authority of section 516 of that Act to Georgia, Kazakhstan, 
Kyrgyzstan, Moldova, Turkmenistan, Ukraine, and Uzbekistan.
    (b) Content of Congressional Notification.--Each notification 
required to be submitted under section 516(f) of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2321j(f)) with respect to a proposed transfer of 
a defense article described in subsection (a) shall include an estimate 
of the amount of funds to be expended under subsection (a) with respect 
to that transfer.

              TITLE II--FOREIGN MILITARY SALES AUTHORITIES

SEC. 201. TERMINATION OF FOREIGN MILITARY FINANCED TRAINING.

    Section 617 of the Foreign Assistance Act of 1961 (22 U.S.C. 2367) 
is amended--
            (1) by inserting in the second sentence ``and the Arms 
        Export Control Act'' after ``under this Act'' the first place 
        it appears;
            (2) by striking ``under this Act'' the second place it 
        appears; and
            (3) by inserting in the third sentence ``and under the Arms 
        Export Control Act'' after ``this Act''.

SEC. 202. SALES OF EXCESS COAST GUARD PROPERTY.

    Section 21(a)(1) of the Arms Export Control Act (22 U.S.C. 
2761(a)(1)) is amended in the text above subparagraph (A) by inserting 
``and the Coast Guard'' after ``Department of Defense''.

SEC. 203. COMPETITIVE PRICING FOR SALES OF DEFENSE ARTICLES.

    Section 22(d) of the Arms Export Control Act (22 U.S.C. 2762(d)) is 
amended--
            (1) by striking ``Procurement contracts'' and inserting 
        ``(1) Procurement contracts''; and
            (2) by adding at the end the following:
    ``(2) Direct costs associated with meeting additional or unique 
requirements of the purchaser shall be allowable under contracts 
described in paragraph (1). Loadings applicable to such direct costs 
shall be permitted at the same rates applicable to procurement of like 
items purchased by the Department of Defense for its own use.''.

SEC. 204. REPORTING OF OFFSET AGREEMENTS.

    (a) Government-to-Government Sales.--Section 36(b)(1) of the Arms 
Export Control Act (22 U.S.C. 2776(b)(1)) is amended in the fourth 
sentence by striking ``(if known on the date of transmittal of such 
certification)'' and inserting ``and, if known on the date of 
transmittal of such certification, a description of the offset 
agreement. Such description may be included in the classified portion 
of such numbered certification''.
    (b) Commercial Sales.--Section 36(c)(1) of the Arms Export Control 
Act (22 U.S.C. 2776(c)(1)) is amended in the second sentence by 
striking ``(if known on the date of transmittal of such 
certification)'' and inserting ``and, if known on the date of 
transmittal of such certification, a description of the offset 
agreement. Such description may be included in the classified portion 
of such numbered certification''.

SEC. 205. NOTIFICATION OF UPGRADES TO DIRECT COMMERCIAL SALES.

    Section 36(c) of the Arms Export Control Act (22 U.S.C. 2776(c)) is 
amended by adding at the end the following new paragraph:
    ``(4) The provisions of subsection (b)(5) shall apply to any 
equipment, article, or service for which a numbered certification has 
been transmitted to Congress pursuant to paragraph (1) in the same 
manner and to the same extent as that subsection applies to any 
equipment, article, or service for which a numbered certification has 
been transmitted to Congress pursuant to subsection (b)(1). For 
purposes of such application, any reference in subsection (b)(5) to `a 
letter of offer' or `an offer' shall be deemed to be a reference to `a 
contract'.''.

SEC. 206. EXPANDED PROHIBITION ON INCENTIVE PAYMENTS.

    (a) In General.--Section 39A(a) of the Arms Export Control Act (22 
U.S.C. 2779a(a)) is amended--
            (1) by inserting ``or licensed'' after ``sold''; and
            (2) by inserting ``or export'' after ``sale''.
    (b) Definition of United States Person.--Section 39A(d)(3)(B)(ii) 
of the Arms Export Control Act (22 U.S.C. 2779a(d)(3)(B)(ii)) is 
amended by inserting ``or by an entity described in clause (i)'' after 
``subparagraph (A)''.

SEC. 207. ADMINISTRATIVE FEES FOR LEASING OF DEFENSE ARTICLES.

    Section 61(a) of the Arms Export Control Act (22 U.S.C. 2796(a)) is 
amended in paragraph (4) of the first sentence by inserting after 
``including reimbursement for depreciation of such articles while 
leased,'' the following: ``a fee for the administrative services 
associated with processing such leasing,''.

    TITLE III--STOCKPILING OF DEFENSE ARTICLES FOR FOREIGN COUNTRIES

SEC. 301. ADDITIONS TO UNITED STATES WAR RESERVE STOCKPILES FOR ALLIES.

    Paragraph (2) of section 514(b) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2321h(b)(2)) is amended to read as follows:
            ``(2)(A) The value of such additions to stockpiles of 
        defense articles in foreign countries shall not exceed 
        $340,000,000 for fiscal year 1999 and $60,000,000 for fiscal 
        year 2000.
            ``(B)(i) Of the amount specified in subparagraph (A) for 
        fiscal year 1999, not more than $320,000,000 may be made 
        available for stockpiles in the Republic of Korea and not more 
        than $20,000,000 may be made available for stockpiles in 
        Thailand.
            ``(ii) Of the amount specified in subparagraph (A) for 
        fiscal year 2000, not more than $40,000,000 may be made 
        available for stockpiles in the Republic of Korea and not more 
        than $20,000,000 may be made available for stockpiles in 
        Thailand.''.

SEC. 302. TRANSFER OF CERTAIN OBSOLETE OR SURPLUS DEFENSE ARTICLES IN 
              THE WAR RESERVES STOCKPILE FOR ALLIES.

    (a) Items in the Korean Stockpile.--
            (1) In general.--Notwithstanding section 514 of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2321h), the President is 
        authorized to transfer to the Republic of Korea, in return for 
        concessions to be negotiated by the Secretary of Defense, with 
        the concurrence of the Secretary of State, any or all of the 
        items described in paragraph (2).
            (2) Covered items.--The items referred to in paragraph (1) 
        are munitions, equipment, and material such as tanks, trucks, 
        artillery, mortars, general purpose bombs, repair parts, 
        ammunition, barrier material, and ancillary equipment, if such 
        items are--
                    (A) obsolete or surplus items;
                    (B) in the inventory of the Department of Defense;
                    (C) intended for use as reserve stocks for the 
                Republic of Korea; and
                    (D) as of the date of enactment of this Act, 
                located in a stockpile in the Republic of Korea.
    (b) Items in the Thailand Stockpile.--
            (1) In general.--Notwithstanding section 514 of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2321h), the President is 
        authorized to transfer to Thailand, in return for concessions 
        to be negotiated by the Secretary of Defense, with the 
        concurrence of the Secretary of State, any or all of the items 
        in the WRS-T stockpile described in paragraph (2).
            (2) Covered items.--The items referred to in paragraph (1) 
        are munitions, equipment, and material such as tanks, trucks, 
        artillery, mortars, general purpose bombs, repair parts, 
        ammunition, barrier material, and ancillary equipment, if such 
        items are--
                    (A) obsolete or surplus items;
                    (B) in the inventory of the Department of Defense;
                    (C) intended for use as reserve stocks for 
                Thailand; and
                    (D) as of the date of enactment of this Act, 
                located in a stockpile in Thailand.
    (c) Valuation of Concessions.--The value of concessions negotiated 
pursuant to subsections (a) and (b) shall be at least equal to the fair 
market value of the items transferred. The concessions may include cash 
compensation, services, waiver of charges otherwise payable by the 
United States, and other items of value.
    (d) Prior Notifications of Proposed Transfers.--Not less 30 days 
before making a transfer under the authority of this section, the 
President shall transmit to the chairmen of the Committee on Foreign 
Relations of the Senate and the Committee on International Relations of 
the House of Representatives a detailed notification of the proposed 
transfer, which shall include an identification of the items to be 
transferred and the concessions to be received.
    (e) Termination of Authority.--No transfer may be made under the 
authority of this section more than three years after the date of 
enactment of this Act.

     TITLE IV--INTERNATIONAL ARMS SALES CODE OF CONDUCT ACT OF 1999

SEC. 401. SHORT TITLE.

    This title may be cited as the ``International Arms Sales Code of 
Conduct Act of 1999''.

SEC. 402. FINDINGS.

    The Congress finds the following:
            (1) The proliferation of conventional arms and conflicts 
        around the globe are multilateral problems. The only way to 
        effectively prevent rogue nations from acquiring conventional 
        weapons is through a multinational ``arms sales code of 
        conduct''.
            (2) Approximately 40,000,000 people, over 75 percent of 
        whom were civilians, died as a result of civil and 
        international wars fought with conventional weapons during the 
        45 years of the cold war, demonstrating that conventional 
        weapons can in fact be weapons of mass destruction.
            (3) Conflict has actually increased in the post cold war 
        era.
            (4) It is in the national security and economic interests 
        of the United States to reduce dramatically the 
        $840,000,000,000 that all countries spend on armed forces every 
        year, $191,000,000,000 of which is spent by developing 
        countries, an amount equivalent to 4 times the total bilateral 
        and multilateral foreign assistance such countries receive 
        every year.
            (5) The Congress has the constitutional responsibility to 
        participate with the executive branch in decisions to provide 
        military assistance and arms transfers to a foreign government, 
        and in the formulation of a policy designed to reduce 
        dramatically the level of international militarization.
            (6) A decision to provide military assistance and arms 
        transfers to a government that is undemocratic, does not 
        adequately protect human rights, or is currently engaged in 
        acts of armed aggression should require a higher level of 
        scrutiny than does a decision to provide such assistance and 
        arms transfers to a government to which these conditions do not 
        apply.

SEC. 403. INTERNATIONAL ARMS SALES CODE OF CONDUCT.

    (a) Negotiations.--The President shall attempt to achieve the 
foreign policy goal of an international arms sales code of conduct with 
all Wassenaar Arrangement countries. The President shall take the 
necessary steps to begin negotiations with all Wassenaar Arrangement 
countries within 120 days after the date of the enactment of this Act. 
The purpose of these negotiations shall be to conclude an agreement on 
restricting or prohibiting arms transfers to countries that do not meet 
the following criteria:
            (1) Promotes democracy.--The government of the country--
                    (A) was chosen by and permits free and fair 
                elections;
                    (B) promotes civilian control of the military and 
                security forces and has civilian institutions 
                controlling the policy, operation, and spending of all 
                law enforcement and security institutions, as well as 
                the armed forces;
                    (C) promotes the rule of law, equality before the 
                law, and respect for individual and minority rights, 
                including freedom to speak, publish, associate, and 
                organize; and
                    (D) promotes the strengthening of political, 
                legislative, and civil institutions of democracy, as 
                well as autonomous institutions to monitor the conduct 
                of public officials and to combat corruption.
            (2) Respects human rights.--The government of the country--
                    (A) does not engage in gross violations of 
                internationally recognized human rights, including--
                            (i) extra judicial or arbitrary executions;
                            (ii) disappearances;
                            (iii) torture or severe mistreatment;
                            (iv) prolonged arbitrary imprisonment;
                            (v) systematic official discrimination on 
                        the basis of race, ethnicity, religion, gender, 
                        national origin, or political affiliation; and
                            (vi) grave breaches of international laws 
                        of war or equivalent violations of the laws of 
                        war in internal conflicts;
                    (B) vigorously investigates, disciplines, and 
                prosecutes those responsible for gross violations of 
                internationally recognized human rights;
                    (C) permits access on a regular basis to political 
                prisoners by international humanitarian organizations 
                such as the International Committee of the Red Cross;
                    (D) promotes the independence of the judiciary and 
                other official bodies that oversee the protection of 
                human rights;
                    (E) does not impede the free functioning of 
                domestic and international human rights organizations; 
                and
                    (F) provides access on a regular basis to 
                humanitarian organizations in situations of conflict or 
                famine.
            (3) Not engaged in certain acts of armed aggression.--The 
        government of the country is not currently engaged in acts of 
        armed aggression in violation of international law.
            (4) Full participation in united nations register of 
        conventional arms.--The government of the country is fully 
        participating in the United Nations Register of Conventional 
        Arms.
    (b) Reports to Congress.--(1) In the report required in sections 
116(d) and 502B of the Foreign Assistance Act of 1961, the Secretary of 
State shall describe the extent to which the practices of each country 
evaluated meet the criteria in paragraphs (1) through (4) of subsection 
(a).
    (2) Not later than 6 months after the commencement of the 
negotiations under subsection (a), and not later than the end of every 
6-month period thereafter until an agreement described in subsection 
(a) is concluded, the President shall report to the appropriate 
committees of the Congress on the progress made during these 
negotiations.
    (c) Definition.--The term ``Wassenaar Arrangement countries'' means 
Argentina, Australia, Austria, Belgium, Bulgaria, Canada, the Czech 
Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, 
Italy, Japan, Luxembourg, Netherlands, New Zealand, Norway, Poland, 
Portugal, the Republic of Korea, Romania, Russia, Slovakia, Spain, 
Sweden, Switzerland, Turkey, Ukraine, and the United Kingdom.

 TITLE V--AUTHORITY TO EXEMPT INDIA AND PAKISTAN FROM CERTAIN SANCTIONS

SEC. 501. WAIVER AUTHORITY.

    (a) Authority.--
            (1) In general.--Except as provided in subsection (b), the 
        President may waive, with respect to India or Pakistan, the 
        application of any sanction or prohibition (or portion thereof) 
        contained in section 101 or 102 of the Arms Export Control Act 
        (22 U.S.C. 2799aa or 2799aa-1), section 620E(e) of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2375(e)), or section 2(b)(4) 
        of the Export Import Bank Act of 1945 (12 U.S.C. 635(b)(4)).
            (2) Effective date.--A waiver of the application of a 
        sanction or prohibition (or portion thereof) under paragraph 
        (1) shall be effective only for a period ending on or before 
        September 30, 2000.
    (b) Exception.--The authority to waive the application of a 
sanction or prohibition (or portion thereof) under subsection (a) shall 
not apply with respect to a sanction or prohibition contained in 
subparagraph (B), (C), or (G) of section 102(b)(2) of the Arms Export 
Control Act.
    (c) Notification.--A waiver of the application of a sanction or 
prohibition (or portion thereof) contained in section 541 of the 
Foreign Assistance Act of 1961 shall not become effective until 15 days 
after notice of such waiver has been reported to the congressional 
committees specified in section 634A(a) of such Act in accordance with 
the procedures applicable to reprogramming notifications under that 
section.

SEC. 502. CONSULTATION.

    Prior to each exercise of the authority provided in section 501, 
the President shall consult with the appropriate congressional 
committees.

SEC. 503. REPORTING REQUIREMENT.

    Not later than August 31, 2000, the Secretary of State shall 
prepare and submit to the appropriate congressional committees a report 
on economic and national security developments in India and Pakistan.

SEC. 504. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.

    In this title, the term ``appropriate congressional committees'' 
means--
            (1) the Committee on International Relations and the 
        Committee on Appropriations of the House of Representatives; 
        and
            (2) the Committee on Foreign Relations and the Committee on 
        Appropriations of the Senate.

    TITLE VI--TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES

SEC. 601. AUTHORITY TO TRANSFER NAVAL VESSELS.

    (a) Dominican Republic.--The Secretary of the Navy is authorized to 
transfer to the Government of the Dominican Republic the medium 
auxiliary floating dry dock AFDM 2. Such transfer shall be on a grant 
basis under section 516 of the Foreign Assistance Act of 1961 (22 
U.S.C. 2321j).
    (b) Ecuador.--The Secretary of the Navy is authorized to transfer 
to the Government of Ecuador the ``OAK RIDGE'' class medium auxiliary 
repair dry dock ALAMOGORDO (ARDM 2). Such transfer shall be on a sales 
basis under section 21 of the Arms Export Control Act (22 U.S.C. 2761).
    (c) Egypt.--The Secretary of the Navy is authorized to transfer to 
the Government of Egypt the ``NEWPORT'' class tank landing ships 
BARBOUR COUNTY (LST 1195) and PEORIA (LST 1183). Such transfers shall 
be on a sales basis under section 21 of the Arms Export Control Act (22 
U.S.C. 2761).
    (d) Greece.--(1) The Secretary of the Navy is authorized to 
transfer to the Government of Greece the ``KNOX'' class frigate CONNOLE 
(FF 1056). Such transfer shall be on a grant basis under section 516 of 
the Foreign Assistance Act of 1961 (22 U.S.C. 2321j).
    (2) The Secretary of the Navy is authorized to transfer to the 
Government of Greece the medium auxiliary floating dry dock COMPETENT 
(AFDM 6). Such transfer shall be on a sales basis under section 21 of 
the Arms Export Control Act (22 U.S.C. 2761).
    (e) Mexico.--The Secretary of the Navy is authorized to transfer to 
the Government of Mexico the ``NEWPORT'' class tank landing ship 
NEWPORT (LST 1179) and the ``KNOX'' class frigate WHIPPLE (FF 1062). 
Such transfers shall be on a sales basis under section 21 of the Arms 
Export Control Act (22 U.S.C. 2761).
    (f) Poland.--The Secretary of the Navy is authorized to transfer to 
the Government of Poland the ``OLIVER HAZARD PERRY'' class guided 
missile frigate CLARK (FFG 11). Such transfer shall be on a grant basis 
under section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 
2321j).
    (g) Taiwan.--The Secretary of the Navy is authorized to transfer to 
the Taipei Economic and Cultural Representative Office in the United 
States (which is the Taiwan instrumentality designated pursuant to 
section 10(a) of the Taiwan Relations Act) the ``NEWPORT'' class tank 
landing ship SCHENECTADY (LST 1185). Such transfer shall be on a sales 
basis under section 21 of the Arms Export Control Act (22 U.S.C. 2761).
    (h) Thailand.--The Secretary of the Navy is authorized to transfer 
to the Government of Thailand the ``KNOX'' class frigate TRUETT (FF 
1095). Such transfer shall be on a grant basis under section 516 of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2321j).
    (i) Turkey.--The Secretary of the Navy is authorized to transfer to 
the Government of Turkey the ``OLIVER HAZARD PERRY'' class guided 
missile frigates FLATLEY (FFG 21) and JOHN A. MOORE (FFG 19). Such 
transfers shall be on a sales basis under section 21 of the Arms Export 
Control Act (22 U.S.C. 2761).

SEC. 602. INAPPLICABILITY OF AGGREGATE ANNUAL LIMITATION ON VALUE OF 
              TRANSFERRED EXCESS DEFENSE ARTICLES.

    The value of a vessel transferred to another country on a grant 
basis under section 516 of the Foreign Assistance Act of 1961 (22 
U.S.C. 2321j) pursuant to authority provided by section 601 shall not 
be counted for the purposes of section 516(g) of the Foreign Assistance 
Act of 1961 in the aggregate value of excess defense articles 
transferred to countries under that section in any fiscal year.

SEC. 603. COSTS OF TRANSFERS.

    Any expense incurred by the United States in connection with a 
transfer of a vessel authorized by section 601 shall be charged to the 
recipient.

SEC. 604. EXPIRATION OF AUTHORITY.

    The authority to transfer vessels under section 601 shall expire at 
the end of the 2-year period beginning on the date of the enactment of 
this Act.

SEC. 605. REPAIR AND REFURBISHMENT OF VESSELS IN UNITED STATES 
              SHIPYARDS.

    The Secretary of the Navy shall require, to the maximum extent 
possible, as a condition of a transfer of a vessel under section 601, 
that the country to which the vessel is transferred have such repair or 
refurbishment of the vessel as is needed, before the vessel joins the 
naval forces of that country, performed at a shipyard located in the 
United States, including a United States Navy shipyard.

SEC. 606. SENSE OF THE CONGRESS RELATING TO TRANSFER OF NAVAL VESSELS 
              AND AIRCRAFT TO THE GOVERNMENT OF THE PHILIPPINES.

    (a) Sense of the Congress.--It is the sense of the Congress that--
            (1) the President should transfer to the Government of the 
        Philippines, on a grant basis under section 516 of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2321j), the excess defense 
        articles described in subsection (b); and
            (2) the United States should not oppose the transfer of F-5 
        aircraft by a third country to the Government of the 
        Philippines.
    (b) Excess Defense Articles.--The excess defense articles described 
in this subsection are the following:
            (1) UH-1 helicopters, A-4 aircraft, and the ``POINT'' class 
        Coast Guard cutter POINT EVANS.
            (2) Amphibious landing craft, naval patrol vessels 
        (including patrol vessels of the Coast Guard), and other naval 
        vessels (such as frigates), if such vessels are available.

                  TITLE VII--MISCELLANEOUS PROVISIONS

SEC. 701. ANNUAL MILITARY ASSISTANCE REPORTS.

    Section 655(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2415(b)) is amended to read as follows:
    ``(b) Information Relating to Military Assistance and Military 
Exports.--Each such report shall show the aggregate dollar value and 
quantity of defense articles (including excess defense articles), 
defense services, and international military education and training 
activities authorized by the United States and of such articles, 
services, and activities provided by the United States, excluding any 
activity that is reportable under title V of the National Security Act 
of 1947, to each foreign country and international organization. The 
report shall specify, by category, whether such defense articles--
            ``(1) were furnished by grant under chapter 2 or chapter 5 
        of part II of this Act or under any other authority of law or 
        by sale under chapter 2 of the Arms Export Control Act;
            ``(2) were furnished with the financial assistance of the 
        United States Government, including through loans and 
        guarantees; or
            ``(3) were licensed for export under section 38 of the Arms 
        Export Control Act.''.

SEC. 702. PUBLICATION OF ARMS SALES CERTIFICATIONS.

    Section 36 of the Arms Export Control Act (22 U.S.C. 2776) is 
amended in the second subsection (e) (as added by section 155 of Public 
Law 104-164)--
            (1) by inserting ``in a timely manner'' after ``to be 
        published''; and
            (2) by striking ``the full unclassified text of'' and all 
        that follows and inserting the following: ``the full 
        unclassified text of--
            ``(1) each numbered certification submitted pursuant to 
        subsection (b);
            ``(2) each notification of a proposed commercial sale 
        submitted under subsection (c); and
            ``(3) each notification of a proposed commercial technical 
        assistance or manufacturing licensing agreement submitted under 
        subsection (d).''.

SEC. 703. NOTIFICATION REQUIREMENTS FOR COMMERCIAL EXPORT OF 
              SIGNIFICANT MILITARY EQUIPMENT ON UNITED STATES MUNITIONS 
              LIST.

    (a) Notification Requirement.--Section 38 of the Arms Export 
Control Act (22 U.S.C. 2778) is amended by adding at the end the 
following:
    ``(i) As prescribed in regulations issued under this section, a 
United States person to whom a license has been granted to export an 
item identified as significant military equipment on the United States 
Munitions List shall, not later than 15 days after the item is 
exported, submit to the Department of State a report containing all 
shipment information, including a description of the item and the 
quantity, value, port of exit, and destination of the item.''.
    (b) Quarterly Reports to Congress.--Section 36(a) of the Arms 
Export Control Act (22 U.S.C. 2776(a)) is amended--
                    (A) in paragraph (11), by striking ``and'' at the 
                end;
                    (B) in paragraph (12), by striking ``third-party 
                transfers.'' and inserting ``third-party transfers; 
                and''; and
                    (C) by adding after paragraph (12) (but before the 
                last sentence of the subsection), the following:
            ``(13) a report on all exports of significant military 
        equipment for which information has been provided pursuant to 
        section 38(i).''.

SEC. 704. ENFORCEMENT OF ARMS EXPORT CONTROL ACT.

    The Arms Export Control Act (22 U.S.C. 2751 et seq.) is amended in 
sections 38(e), 39A(c), and 40(k) by inserting after ``except that'' 
each place it appears the following: ``section 11(c)(2)(B) of such Act 
shall not apply, and instead, as prescribed in regulations issued under 
this section, the Secretary of State may assess civil penalties for 
violations of this Act and regulations prescribed thereunder and 
further may commence a civil action to recover such civil penalties, 
and except further that''.

SEC. 705. VIOLATIONS RELATING TO MATERIAL SUPPORT TO TERRORISTS.

    Section 38(g)(1)(A)(iii) of the Arms Export Control Act (22 U.S.C. 
2778(g)(1)(A)(iii)) is amended by adding at the end before the comma 
the following: ``or section 2339A of such title (relating to providing 
material support to terrorists)''.

SEC. 706. AUTHORITY TO CONSENT TO THIRD PARTY TRANSFER OF EX-U.S.S. 
              BOWMAN COUNTY TO USS LST SHIP MEMORIAL, INC.

    (a) Findings.--Congress makes the following findings:
            (1) It is the long-standing policy of the United States 
        Government to deny requests for the retransfer of significant 
        military equipment that originated in the United States to 
        private entities.
            (2) In very exceptional circumstances, when the United 
        States public interest would be served by the proposed 
        retransfer and end-use, such requests may be favorably 
        considered.
            (3) Such retransfers to private entities have been 
        authorized in very exceptional circumstances following 
        appropriate demilitarization and receipt of assurances from the 
        private entity that the item to be transferred would be used 
        solely in furtherance of Federal Government contracts or for 
        static museum display.
            (4) Nothing in this section should be construed as a 
        revision of long-standing policy referred to in paragraph (1).
            (5) The Government of Greece has requested the consent of 
        the United States Government to the retransfer of HS Rodos (ex-
        U.S.S. Bowman County (LST 391)) to the USS LST Ship Memorial, 
        Inc.
    (b) Authority To Consent to Retransfer.--
            (1) In general.--Subject to paragraph (2), the President 
        may consent to the retransfer by the Government of Greece of HS 
        Rodos (ex-U.S.S. Bowman County (LST 391)) to the USS LST Ship 
        Memorial, Inc.
            (2) Conditions for consent.--The President should not 
        exercise the authority under paragraph (1) unless USS LST 
        Memorial, Inc.--
                    (A) utilizes the vessel for public, nonprofit, 
                museum-related purposes;
                    (B) submits a certification with the import 
                application that no firearms frames or receivers, 
                ammunition, or other firearms as defined in section 
                5845 of the National Firearms Act (26 U.S.C. 5845) will 
                be imported with the vessel; and
                    (C) complies with regulatory policy requirements 
                related to the facilitation of monitoring by the 
                Federal Government of, and the mitigation of potential 
                environmental hazards associated with, aging vessels, 
                and has a demonstrated financial capability to so 
                comply.

SEC. 707. EXCEPTIONS RELATING TO PROHIBITIONS ON ASSISTANCE TO 
              COUNTRIES INVOLVED IN TRANSFER OR USE OF NUCLEAR 
              EXPLOSIVE DEVICES.

    (a) In General.--Section 2 of the Agriculture Export Relief Act of 
1998 (Public Law 105-194; 112 Stat. 627) is amended--
            (1) by striking subsection (d); and
            (2) by striking the second sentence of subsection (e).
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of the enactment of this Act or September 30, 
1999, whichever occurs earlier.

SEC. 708. CONTINUATION OF THE EXPORT CONTROL REGULATIONS UNDER IEEPA.

    To the extent that the President exercises the authorities of the 
International Emergency Economic Powers Act to carry out the provisions 
of the Export Administration Act of 1979 in order to continue in full 
force and effect the export control system maintained by the Export 
Administration regulations issued under that Act, including regulations 
issued under section 8 of that Act, the following shall apply:
            (1) The penalties for violations of the regulations 
        continued pursuant to the International Emergency Economic 
        Powers Act shall be the same as the penalties for violations 
        under section 11 of the Export Administration Act of 1979, as 
        if that section were amended--
                    (A) by amending subsection (a) to read as follows:
    ``(a) In General.--Except as provided in subsection (b), whoever 
knowingly violates or conspires to or attempts to violate any provision 
of this Act or any license, order, or regulation issued under this 
Act--
            ``(1) except in the case of an individual, shall be fined 
        not more than $500,000 or 5 times the value of any exports 
        involved, whichever is greater; and
            ``(2) in the case of an individual, shall be fined not more 
        than $250,000 or 5 times the value of any exports involved, 
        whichever is greater, or imprisoned not more than 5 years, or 
        both.'';
                    (B) in subsection (b)--
                            (i) in paragraphs (1)(A) and (2)(A) by 
                        striking ``five times'' and inserting ``10 
                        times'';
                            (ii) in paragraph (1)(B) by striking 
                        ``$250,000'' and inserting ``$500,000''; and
                            (iii) in paragraph (2)(B) by striking 
                        ``$250,000, or imprisoned not more than 5 
                        years'' and inserting ``$500,000, or imprisoned 
                        not more than 10 years'';
                    (C) in subsection (c)(1)--
                            (i) by striking ``$10,000'' and inserting 
                        ``$250,000''; and
                            (ii) by striking ``except that the civil 
                        penalty'' and all that follows through the end 
                        of the paragraph and inserting ``except that 
                        the civil penalty for a violation of the 
                        regulations issued pursuant to section 8 may 
                        not exceed $50,000.''; and
                    (D) in subsection (h)(1), by inserting after ``Arms 
                Export Control Act (22 U.S.C. 2778)'' the following: 
                ``section 16 of the Trading with the enemy Act (50 
                U.S.C. 16), or, to the extent the violation involves 
                the export of goods or technology controlled under this 
                or any other Act or defense articles or defense 
                services controlled under the Arms Export Control Act, 
                section 371 or 1001 of title 18, United States Code,''.
            (2) The authorities set forth in section 12(a) of the 
        Export Administration Act of 1979 may be exercised in carrying 
        out the regulations continued pursuant to the International 
        Emergency Economic Powers Act.
            (3) The provisions of sections 12(c) and 13 of the Export 
        Administration Act of 1979 shall apply in carrying out the 
        regulations continued pursuant to the International Emergency 
        Economic Powers Act.
            (4) The continuation of the provisions of the Export 
        Administration Regulations pursuant to the International 
        Emergency Economic Powers Act shall not be construed as not 
        having satisfied the requirements of that Act.

            Passed the House of Representatives June 15, 1999.

            Attest:

                                                                 Clerk.