Eligibility requirements under the Arms Export Control Act

(a)

General requirements relating to misuse of United States–origin defense articles or services

Section 3(c) of the Arms Export Control Act (22 U.S.C. 2753(c)) is amended— (1)in paragraph (1), by striking (either in terms of quantities or in terms of the gravity of the consequences regardless of the quantities involved) each place it appears; and (2)in paragraph (2)— (A)by striking (2) and inserting (2)(A); and (B)by adding at the end the following new subparagraph:

(B)The Inspector General of the Department of State shall submit to Congress an annual report that contains— (i)a determination of the Inspector General as to whether or not the Department of State has complied fully and comprehensively with the requirements of this subsection and subsection (e) during the preceding year; and (ii)a detailed description of the basis of the determination under clause (i).

(b)

Congressional approval for sales to non-NATO countries that have misused United States–origin defense articles or services

(1)

Amendment

Section 3 of the Arms Export Control Act (22 U.S.C. 2753) is amended by adding at the end the following new subsection:

(h)(1)A license permitting a proposed letter of offer to sell defense articles or defense services with respect to which a certification is required to be submitted pursuant to subsection (b) or (c) of section 36 to a country described in paragraph (2) may be issued only if Congress enacts a joint resolution approving the sale in accordance with the procedures described in paragraph (3). (2)A country referred to in paragraph (1) is a country, other than a country that is a member of the North Atlantic Treaty Organization, Australia, New Zealand, or Japan, that is the subject of a report issued under subsection (c) or (e) of this section at any time during the previous five years. (3)A joint resolution referred to in paragraph (1)— (A)may only be introduced by either chair or ranking minority member of the appropriate congressional committees (as such term is defined in section 36(e)(1)); and (B)shall be considered in the House of Representatives and the Senate in accordance with the procedures applicable to the consideration of a joint resolution of disapproval under subsection (b) or (c) of section 36, as the case may be.

(2)

Effective date

The amendment made by paragraph (1) applies with respect to a country described in paragraph (2) of section 3(h) of the Arms Export Control Act (as added by paragraph (1)) that is the subject of a report issued under subsection (c) or (e) of section 3 of such Act on or after October 1, 2006.

Estimate and justification for sales program under the Arms Export Control Act

(a)

Quarterly reports

(1)

In general

Section 25(a) of the Arms Export Control Act (22 U.S.C. 2765(a)) is amended by striking (a) Except as provided and all that follows through are deemed most likely actually to result in the issuance of a letter of offer or of an export license during such year; and inserting the following:

(a)(1)Not later than the first day of each calendar quarter, the President shall transmit to the appropriate congressional committees a report that sets forth an Arms Sales Proposal covering all proposed sales and licensed commercial exports under this Act of major weapons or weapons-related defense equipment for $7,000,000 or more, or of any other weapons or weapons-related defense equipment for $25,000,000 or more, which are likely to result in a letter of offer or of an export license during such calendar quarter or the succeeding calendar quarter.

(2)

Additional information

Section 25(a) of the Arms Export Control Act (22 U.S.C. 2765(a), as amended by paragraph (1), is further amended— (A)by striking (2) an estimate and inserting the following:

(2)Except as provided in subsection (d)(1) of this section, the President shall include in the report required by paragraph (1) for the first calendar quarter of each calendar year— (A)an estimate

;

(B)by redesignating paragraphs (3) through (14) as subparagraphs (B) through (M), respectively; (C)in paragraph (2)(C) (as redesignated), by striking paragraphs (1) and (2) of this subsection and inserting subparagraph (A) ; (D)in paragraph (2)(D) (as redesignated)— (i)by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively; and (ii)in clause (ii) (as redesignated)— (I)by striking subsection (d) and inserting subsection (d)(2); and (II)by redesignating clauses (i) through (iii) as subclauses (I) through (III), respectively; and (E)in paragraph (2)(K) (as redesignated)— (i)by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively; and (ii)in clause (ii) (as redesignated), by striking subparagraph (A) and inserting clause (i). (3)

Definition

Section 25(a) of the Arms Export Control Act (22 U.S.C. 2765(a), as amended by paragraphs (1) and (2), is further amended by adding at the end the following new paragraph:

(3)In this subsection, the term calendar quarter means any three-month period beginning on January 1, April 1, July 1, or October 1 of a calendar year.

(b)

Additional information

Section 25(b) of the Arms Export Control Act (22 U.S.C. 2765(b)) is amended to read as follows:

(b)(1)(A)Not later than 15 days after the date on which the President transmits to the appropriate congressional committees a report under subsection (a), the President shall make available to the appropriate congressional committees all information, in the possession of the President as of the date on which such report is so transmitted, regarding each proposed sale and export listed in such report. (B)Such information shall include, but not be limited to— (i)technical details of all equipment, technology, software and armament that may be included as part of the sale or export; (ii)communications between the United States and the purchasing country regarding the sale or export; (iii)intelligence information relevant to the sale or export; and (iv)any other relevant information relating to the sale or export. (2)Either chair of the appropriate congressional committees may waive the requirement of paragraph (1) with respect to a proposed sale or export.

(c)

Exception; definition

Section 25 of the Arms Export Control Act (22 U.S.C. 2765) is amended— (1)in the first subsection (d) (as added by section 113(2) of the International Security and Development Cooperation Act of 1985 (Public Law 99–83; 99 Stat. 198))— (A)by striking (d) and inserting (d)(1); and (B)by striking subsection (a)(4) and inserting subsection (a)(2)(C); (2)by redesignating the second subsection (d) (as added by section 112(b) of the International Security and Development Cooperation Act of 1985 (Public Law 99–83; 99 Stat. 198)) as paragraph (2) of the first subsection (d); and (3)in subsection (d)(2) (as redesignated)— (A)by striking subsection (a)(5)(B) and inserting subsection (a)(2)(D)(ii); and (B)by striking the semicolon at the end and inserting a period. (d)

Conforming amendments

The heading of section 25 of the Arms Export Control Act (22 U.S.C. 2765) is amended— (1)by striking

annual

and inserting

quarterly

; and (2)by inserting

annual

before

justification

. (e)

Reports on commercial and governmental military exports; congressional actions

Section 36 of the Arms Export Control Act (22 U.S.C. 2776) is amended— (1)in subsection (b), by adding at the end the following new paragraph:

(7)A certification for a proposed sale or export of defense articles or defense services may be transmitted pursuant to this subsection only if information with respect to the sale or export of such defense articles or defense services is included in the report transmitted to the appropriate congressional committees pursuant to section 25(a) of this Act for the most recent calendar quarter (as such term is defined in such section) or the preceding calendar quarter.

; and

(2)in subsection (c), by adding at the end the following new paragraph:

(6)A certification for a proposed sale or export of defense articles or defense services may be transmitted pursuant to this subsection only if information with respect to the sale or export of such defense articles or defense services is included in the report transmitted to the appropriate congressional committees pursuant to section 25(a) of this Act for the most recent calendar quarter (as such term is defined in such section) or the preceding calendar quarter.

(f)

Effective date

The amendments made by this section apply with respect to reports required to be transmitted under section 25 of the Arms Export Control Act (22 U.S.C. 2765) for 2007 and each subsequent calendar year.

Reports on commercial and governmental military exports under the Arms Export Control Act; congressional actions

(a)

Expedited procedures for congressional disapproval

(1)

Government sales

Section 36(b) of the Arms Export Control Act (22 U.S.C. 2776(b)) is amended— (A)by striking paragraphs (2) and (3); (B)by inserting after paragraph (1) the following new paragraph:

(2)(A)Except as provided in subparagraph (B), the provisions of subsections (b), (c), (d), (e), and (f) of section 152 of the Trade Act of 1974 (19 U.S.C. 2192(b), (c), (d), (e) and (f)) apply to a joint resolution described in paragraph (1) to the same extent as such provisions apply to a joint resolution described in section 152 of such Act. (B)A joint resolution described in subparagraph (A) may only be introduced by either the chair or ranking minority member of the appropriate congressional committees.

;

(C)by redesignating paragraphs (4) through (6) as paragraphs (3) through (5), respectively; (D)in paragraph (4)(C), by striking paragraph (6) and inserting paragraph (5); and (E)in paragraph (6), by striking paragraph (5)(C) and inserting paragraph (4)(C). (2)

Commercial sales

Section 36(c)(3) of the Arms Export Control Act (22 U.S.C. 2776(c)(3)) is amended to read as follows:

(3)(A)Except as provided in subparagraph (B), the provisions of subsections (b), (c), (d), (e), and (f) of section 152 of the Trade Act of 1974 (19 U.S.C. 2192(b), (c), (d), (e) and (f)) apply to a joint resolution described in paragraph (2) to the same extent as such provisions apply to a joint resolution described in section 152 of such Act. (B)A joint resolution described in subparagraph (A) may only be introduced by either the chair or ranking minority member of the appropriate congressional committees.

(b)

Requirement to provide advance notification and consultation on certain sales and exports

Section 36 of the Arms Export Control Act (22 U.S.C. 2776) is amended by adding at the end the following new subsection:

(h)(1)(A)Not later than 20 calendar days prior to the submission of a certification under subsection (b), (c), or (d) of this section, the President shall provide advance notification in writing to, and consult with, the chairs and ranking minority members of the appropriate congressional committees of the offer to sell or export the defense articles or defense services with respect to which such a certification is required to be submitted pursuant to any such subsection. (B)(i)The requirement of subparagraph (A) to provide 20 calendar days advance notification in writing to the chairs and ranking minority members of the appropriate congressional committees shall not apply if the chairs and ranking minority members of the appropriate congressional committees have agreed, at their discretion, to waive such requirement. (ii)The requirements of subparagraph (A) shall not apply if the President states in the certification that an emergency exists that requires the sale or export of defense articles or defense services to be in the national security interests of the United States in accordance with subsection (b), (c), or (d) of this section. (2)(A)The President shall not submit a certification under subsection (b), (c), or (d) of this section if either chair or ranking minority member of the appropriate congressional committees requests a deferral of the submission of the certification based on the impact of the proposed sale or export of defense articles or defense services described in paragraph (1) on the security or foreign policy interests of the United States. (B)(i)The requirement of subparagraph (A) shall not apply if the President transmits to the chairs and ranking minority members of the appropriate congressional committees a report in writing that contains a determination of the President that extraordinary circumstances exist which necessitates the obviation of such requirement and a detailed description of such circumstances. (ii)The authority of clause (i) may not be delegated to any official who holds a position that is lower in rank or status than the Secretary of State.

(c)

Requirement to provide information relating to certain sales and exports

Section 36 of the Arms Export Control Act (22 U.S.C. 2776), as amended by subsection (a), is further amended by adding at the end the following new subsection:

(i)(1)In the case of a certification for the offer to sell or export defense articles or defense services to a country other than a country that is a member of the North Atlantic Treaty Organization, Australia, New Zealand, or Japan, unless the President states in the certification that there has not been a violation of any agreement with the United States under section 3 of this Act or section 505 of the Foreign Assistance Act of 1961 (22 U.S.C. 2314) involving such country which would necessitate the transmission to Congress of a report under subsection (c) or (e) of section 3 of this Act, the President shall, upon the written request of either chair or ranking minority member of the appropriate congressional committees, transmit to the appropriate congressional committees a report in writing that contains an explanation of the facts and circumstances prompting the omission of such statement in the certification. (2)(A)A written request to the President under paragraph (1) shall toll the 30-day period described in subsection (b), (c), or (d) of this section with respect to the enactment of a joint resolution to prohibit the sale or export of the defense articles or defense services from the date on which the request is received by the President until the date on which the President’s report is received by the appropriate congressional committees. (B)(i)The requirement of subparagraph (A) shall not apply if the President transmits to the appropriate congressional committees a report in writing that contains a determination of the President that the national security interests of the United States would be adversely affected by the application of such requirement to the proposed sale or export of the defense articles or defense services. (ii)The authority of clause (i) may not be delegated by the President to any other official of the Government of the United States.

(d)

Definition

Section 36(e) of the Arms Export Control Act (22 U.S.C. 2776(e)) is amended— (1)by redesignating paragraphs (1) and (2) as paragraphs (2) and (3), respectively; and (2)by inserting before paragraph (2) (as redesignated) the following new paragraph:

(1)the term “appropriate congressional committee means— (A)the Committee on International Relations of the House of Representatives; and (B)the Committee on Foreign Relations of the Senate;

(e)

Conforming amendments

Section 36 of the Arms Export Control Act (22 U.S.C. 2776) is amended— (1)in subsections (a), (b)(1), (c)(1), and (f), by striking Speaker of the House of Representatives and to the chairman of the Committee on Foreign Relations of the Senate and inserting chairs of the appropriate congressional committees; (2)in subsection (b)— (A)in paragraph (1), by striking such committee or the Committee on Foreign Affairs of the House of Representatives and inserting either chair of the appropriate congressional committees; (B)in paragraph (4), by striking Congress and inserting chairs of the appropriate congressional committees; and (C)in paragraph (5)— (i)in subparagraph (A), by striking chairman of the Committee on Foreign Affairs of the House of Representatives and the chairman of the Committee on Foreign Relations of the Senate and inserting chairs of the appropriate congressional committees; (ii)in subparagraph (B), by striking Congress and inserting chairs of the appropriate congressional committees; and (iii)in subparagraph (C), by striking Speaker of the House of Representatives and the chairman of the Committee on Foreign Relations of the Senate and inserting chairs of the appropriate congressional committees; and (3)in subsection (c)— (A)in paragraph (1), by striking such committee or the Committee on Foreign Affairs of the House of Representatives and inserting either chair of the appropriate congressional committees; and (B)in subparagraphs (A) and (C) of paragraph (2), by striking Congress receives and inserting chairs of the appropriate congressional committees receive; and (C)in paragraph (4), by striking Congress each place it appears and inserting the chairs of the appropriate congressional committees.

Notification and consultation requirements relating to certain initiatives and negotiations

(a)

Initiatives and negotiations relating to nuclear cooperation

The President shall keep the appropriate congressional committees fully and completely informed of any initiative or negotiations relating to a new or amended agreement for peaceful nuclear cooperation pursuant to section 123 of the Atomic Energy Act of 1954 prior to the President’s announcement of such initiative or negotiations. The President shall consult with the appropriate congressional committees concerning such initiative or negotiations beginning not less than 15 calendar days before such announcement. (b)

Initiatives and negotiations with state sponsors of terrorism

The President shall keep the appropriate congressional committees fully and completely informed of any initiative relating to or negotiations with any country the government of which the Secretary of State has determined, for purposes of section 6(j) of the Export Administration Act of 1979, section 620A of the Foreign Assistance Act of 1961, section 40 of the Arms Export Control Act, or any other provision of law, is a government that has repeatedly provided support for acts of international terrorism, either directly with such country or as part of a multilateral initiative. The President shall consult with the appropriate congressional committees concerning such initiative or negotiations not less than 15 calendar days before the announcement or inception of such initiative or negotiations. (c)

Definition

In this section, the term appropriate congressional committees means the Committee on International Relations of the House of Representatives and the Committee on Foreign Relations of the Senate.