[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3847 Enrolled Bill (ENR)]

        S.3847

                      One Hundred Eleventh Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
             the fifth day of January, two thousand and ten


                                 An Act


 
 To implement certain defense trade cooperation treaties, 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 Cooperation Act of 2010''.

              TITLE I--DEFENSE TRADE COOPERATION TREATIES

    SEC. 101. SHORT TITLE.
    This title may be cited as the ``Defense Trade Cooperation Treaties 
Implementation Act of 2010''.
    SEC. 102. EXEMPTIONS FROM REQUIREMENTS.
    (a) Retransfer Requirements.--Section 3(b) of the Arms Export 
Control Act (22 U.S.C. 2753(b)) is amended by inserting ``a treaty 
referred to in section 38(j)(1)(C)(i) of this Act permits such transfer 
without prior consent of the President, or if'' after ``if''.
    (b) Bilateral Agreement Requirements.--Section 38(j)(1) of such Act 
(22 U.S.C. 2778(j)(1)) is amended--
        (1) in the subparagraph heading for subparagraph (B), by 
    inserting ``for canada'' after ``Exception''; and
        (2) by adding at the end the following new subparagraph:
            ``(C) Exception for defense trade cooperation treaties.--
                ``(i) In general.--The requirement to conclude a 
            bilateral agreement in accordance with subparagraph (A) 
            shall not apply with respect to an exemption from the 
            licensing requirements of this Act for the export of 
            defense items to give effect to any of the following 
            defense trade cooperation treaties, provided that the 
            treaty has entered into force pursuant to article II, 
            section 2, clause 2 of the Constitution of the United 
            States:

                    ``(I) The Treaty Between the Government of the 
                United States of America and the Government of the 
                United Kingdom of Great Britain and Northern Ireland 
                Concerning Defense Trade Cooperation, done at 
                Washington and London on June 21 and 26, 2007 (and any 
                implementing arrangement thereto).
                    ``(II) The Treaty Between the Government of the 
                United States of America and the Government of 
                Australia Concerning Defense Trade Cooperation, done at 
                Sydney September 5, 2007 (and any implementing 
                arrangement thereto).

                ``(ii) Limitation of scope.--The United States shall 
            exempt from the scope of a treaty referred to in clause 
            (i)--

                    ``(I) complete rocket systems (including ballistic 
                missile systems, space launch vehicles, and sounding 
                rockets) or complete unmanned aerial vehicle systems 
                (including cruise missile systems, target drones, and 
                reconnaissance drones) capable of delivering at least a 
                500 kilogram payload to a range of 300 kilometers, and 
                associated production facilities, software, or 
                technology for these systems, as defined in the Missile 
                Technology Control Regime Annex Category I, Item 1;
                    ``(II) individual rocket stages, re-entry vehicles 
                and equipment, solid or liquid propellant motors or 
                engines, guidance sets, thrust vector control systems, 
                and associated production facilities, software, and 
                technology, as defined in the Missile Technology 
                Control Regime Annex Category I, Item 2;
                    ``(III) defense articles and defense services 
                listed in the Missile Technology Control Regime Annex 
                Category II that are for use in rocket systems, as that 
                term is used in such Annex, including associated 
                production facilities, software, or technology;
                    ``(IV) toxicological agents, biological agents, and 
                associated equipment, as listed in the United States 
                Munitions List (part 121.1 of chapter I of title 22, 
                Code of Federal Regulations), Category XIV, 
                subcategories (a), (b), (f)(1), (i), (j) as it pertains 
                to (f)(1), (l) as it pertains to (f)(1), and (m) as it 
                pertains to all of the subcategories cited in this 
                paragraph;
                    ``(V) defense articles and defense services 
                specific to the design and testing of nuclear weapons 
                which are controlled under United States Munitions List 
                Category XVI(a) and (b), along with associated defense 
                articles in Category XVI(d) and technology in Category 
                XVI(e);
                    ``(VI) with regard to the treaty cited in clause 
                (i)(I), defense articles and defense services that the 
                United States controls under the United States 
                Munitions List that are not controlled by the United 
                Kingdom, as defined in the United Kingdom Military List 
                or Annex 4 to the United Kingdom Dual Use List, or any 
                successor lists thereto; and
                    ``(VII) with regard to the treaty cited in clause 
                (i)(II), defense articles for which Australian laws, 
                regulations, or other commitments would prevent 
                Australia from enforcing the control measures specified 
                in such treaty.''.

    SEC. 103. ENFORCEMENT.
    (a) Criminal Violations.--Section 38(c) of such Act (22 U.S.C. 
2778(c)) is amended by striking ``this section or section 39, or any 
rule or regulation issued under either section'' and inserting ``this 
section, section 39, a treaty referred to in subsection (j)(1)(C)(i), 
or any rule or regulation issued under this section or section 39, 
including any rule or regulation issued to implement or enforce a 
treaty referred to in subsection (j)(1)(C)(i) or an implementing 
arrangement pursuant to such treaty''.
    (b) Enforcement Powers of President.--Section 38(e) of such Act (22 
U.S.C. 2278(e)) is amended by striking ``defense services,'' and 
inserting ``defense services, including defense articles and defense 
services exported or imported pursuant to a treaty referred to in 
subsection (j)(1)(C)(i),''.
    (c) Notification Regarding Exemptions From Licensing 
Requirements.--Section 38(f) of such Act (22 U.S.C. 2778(f)) is amended 
by adding at the end the following new paragraph:
        ``(4) Paragraph (2) shall not apply with respect to an 
    exemption under subsection (j)(1) to give effect to a treaty 
    referred to in subsection (j)(1)(C)(i) (and any implementing 
    arrangements to such treaty), provided that the President 
    promulgates regulations to implement and enforce such treaty under 
    this section and section 39.''.
    (d) Incentive Payments.--Section 39A(a) of such Act (22 U.S.C. 
2779a(a)) is amended by inserting ``or exported pursuant to a treaty 
referred to in section 38(j)(1)(C)(i) of this Act'' after ``under this 
Act''.
    SEC. 104. CONGRESSIONAL NOTIFICATION.
    (a) Retransfers and Reexports.--Section 3(d)(3)(A) of such Act (22 
U.S.C. 2753(d)(3)(A)) is amended by inserting ``or has been exempted 
from the licensing requirements of this Act pursuant to a treaty 
referred to in section 38(j)(1)(C)(i) of this Act where such treaty 
does not authorize the transfer without prior United States Government 
approval'' after ``approved under section 38 of this Act''.
    (b) Discrimination.--Section 5(c) of such Act (22 U.S.C. 2755(c)) 
is amended by inserting ``or any import or export under a treaty 
referred to in section 38(j)(1)(C)(i) of this Act'' after ``under this 
Act''.
    (c) Annual Estimate of Sales.--Section 25(a) of such Act (22 U.S.C. 
2765(a)) is amended--
        (1) in paragraph (1), by inserting ``, as well as exports 
    pursuant to a treaty referred to in section 38(j)(1)(C)(i) of this 
    Act,'' after ``commercial exports under this Act''; and
        (2) in paragraph (2), by inserting ``, as well as exports 
    pursuant to a treaty referred to in section 38(j)(1)(C)(i) of this 
    Act,'' after ``commercial exports''.
    (d) Presidential Certifications.--
        (1) Exports.--Section 36(c) of such Act (22 U.S.C. 2776(c)) is 
    amended by adding at the end the following new paragraph:
        ``(6) The President shall notify the Speaker of the House of 
    Representatives and the Chairman of the Committee on Foreign 
    Relations of the Senate at least 15 days prior to an export 
    pursuant to a treaty referred to in section 38(j)(1)(C)(i) of this 
    Act to which the provisions of paragraph (1) of this subsection 
    would apply absent an exemption granted under section 38(j)(1) of 
    this Act, for which purpose such notification shall contain 
    information comparable to that specified in paragraph (1) of this 
    subsection.''.
        (2) Commercial technical assistance or manufacturing licensing 
    agreements.--Section 36(d) of such Act (22 U.S.C. 2776(d)) is 
    amended by adding at the end the following new paragraph:
        ``(6) The President shall notify the Speaker of the House of 
    Representatives and the Chairman of the Committee on Foreign 
    Relations of the Senate at least 15 days prior to an export 
    pursuant to a treaty referred to in section 38(j)(1)(C)(i) of this 
    Act to which the provisions of paragraph (1) of this subsection 
    would apply absent an exemption granted under section 38(j)(1) of 
    this Act, for which purpose such notification shall contain 
    information comparable to that specified in paragraph (1) of this 
    subsection.''.
    (e) Fees and Political Contributions.--Section 39(a) of such Act 
(22 U.S.C. 2779(a)) is amended--
        (1) in paragraph (1), by striking ``; or'' and inserting a 
    semicolon;
        (2) in paragraph (2), by inserting ``or'' after the semicolon; 
    and
        (3) by adding at the end the following new paragraph:
        ``(3) exports of defense articles or defense services pursuant 
    to a treaty referenced in section 38(j)(1)(C)(i) of this Act;''.
    SEC. 105. LIMITATION ON IMPLEMENTING ARRANGEMENTS.
    (a) In General.--No amendment to an implementing arrangement 
concluded pursuant to a treaty referred to in section 38(j)(1)(C)(i) of 
the Arms Export Control Act, as added by this Act, shall enter into 
effect for the United States unless the Congress adopts, and there is 
enacted, legislation approving the entry into effect of that amendment 
for the United States.
    (b) Covered Amendments.--
        (1) In general.--The requirements specified in subsection (a) 
    shall apply to any amendment other than an amendment that addresses 
    an administrative or technical matter. The requirements in 
    subsection (a) shall not apply to any amendment that solely 
    addresses an administrative or technical matter.
        (2) U.S.-UK implementing arrangement.--In the case of the 
    Implementing Arrangement Pursuant to the Treaty Between the 
    Government of the United States of America and the Government of 
    the United Kingdom of Great Britain and Northern Ireland Concerning 
    Defense Trade Cooperation, signed at Washington February 14, 2008, 
    amendments to which the requirements specified in subsection (a) 
    apply shall include--
            (A) any amendment to section 2, paragraphs (1), (2), or (3) 
        that modifies the criteria governing operations, programs, and 
        projects to which the treaty applies;
            (B) any amendment to section 3, paragraphs (1) or (2) that 
        modifies the criteria governing end-use requirements and the 
        requirements for approved community members responding to 
        United States Government solicitations;
            (C) any amendment to section 4, paragraph (4) that modifies 
        the criteria for including items on the list of defense 
        articles exempt from the treaty;
            (D) any amendment to section 4, paragraph (7) that modifies 
        licensing and other applicable requirements relating to items 
        added to the list of defense articles exempt from the scope of 
        the treaty;
            (E) any amendment to section 7, paragraph (4) that modifies 
        the criteria for eligibility in the approved community under 
        the treaty for nongovernmental United Kingdom entities and 
        facilities;
            (F) any amendment to section 7, paragraph (9) that modifies 
        the conditions for suspending or removing a United Kingdom 
        entity from the approved community under the treaty;
            (G) any amendment to section 7, paragraphs (11) or (12) 
        that modifies the conditions under which individuals may be 
        granted access to defense articles exported under the treaty;
            (H) any amendment to section 9, paragraphs (1), (3), (7), 
        (8), (9), (12), or (13) that modifies the circumstances under 
        which United States Government approval is required for the re-
        transfer or re-export of a defense article, or to exceptions to 
        such requirement; and
            (I) any amendment to section 11, paragraph (4)(b) that 
        modifies conditions of entry to the United Kingdom community 
        under the treaty.
        (3) U.S.-Australia implementing arrangement.--In the case of 
    the Implementing Arrangement Pursuant to the Treaty Between the 
    Government of the United States of America and the Government of 
    the Australia Concerning Defense Trade Cooperation, signed at 
    Washington March 14, 2008, amendments to which the requirements 
    specified in subsection (a) apply shall include--
            (A) any amendment to section 2, paragraphs (1), (2), or (3) 
        that modifies the criteria governing operations, programs, and 
        projects to which the treaty applies;
            (B) any amendment to section 3, paragraphs (1) or (2) that 
        modifies the criteria governing end-use requirements and the 
        requirements for approved community members responding to 
        United States Government solicitations;
            (C) any amendment to section 4, paragraph (4) that modifies 
        criteria for including items on the list of defense articles 
        exempt from the scope of the treaty;
            (D) any amendment to section 4, paragraph (7) that modifies 
        licensing and other applicable requirements relating to items 
        added to the list of defense articles exempt from the scope of 
        the treaty;
            (E) any amendment to section 6, paragraph (4) that modifies 
        the criteria for eligibility in the approved community under 
        the treaty for nongovernmental Australian entities and 
        facilities;
            (F) any amendment to section 6, paragraph (9) that modifies 
        the conditions for suspending or removing an Australian entity 
        from the Australia community under the treaty;
            (G) any amendment to section 6, paragraphs (11), (12), 
        (13), or (14) that modifies the conditions under which 
        individuals may be granted access to defense articles exported 
        under the treaty;
            (H) any amendment to section 9, paragraphs (1), (2), (4), 
        (7), or (8) that modifies the circumstances under which United 
        States Government approval is required for the re-transfer or 
        re-export of a defense article, or to exceptions to such 
        requirement; and
            (I) any amendment to section 11, paragraph (6) that 
        modifies conditions of entry to the Australian community under 
        the treaty.
    (c) Congressional Notification for Other Amendments To Implementing 
Arrangements.--Not later than 15 days before any amendment to an 
implementing arrangement to which subsection (a) does not apply shall 
take effect, the President shall provide to the Committee on Foreign 
Relations of the Senate and the Committee on Foreign Affairs of the 
House of Representatives a report containing--
        (1) the text of the amendment; and
        (2) an analysis of the amendment's effect, including an 
    analysis regarding why subsection (a) does not apply.
    SEC. 106. IMPLEMENTING REGULATIONS.
    The President is authorized to issue regulations pursuant to the 
Arms Export Control Act (22 U.S.C. 2751 et seq.) to implement and 
enforce the Treaty Between the Government of the United States of 
America and the Government of the United Kingdom of Great Britain and 
Northern Ireland Concerning Defense Trade Cooperation, done at 
Washington and London on June 21 and 26, 2007 (and any implementing 
arrangement thereto) and the Treaty Between the Government of the 
United States of America and the Government of Australia Concerning 
Defense Trade Cooperation, done at Sydney, September 5, 2007 (and any 
implementing arrangement thereto), consistent with other applicable 
provisions of the Arms Export Control Act, as amended by this Act, and 
with the terms of any resolution of advice and consent adopted by the 
Senate with respect to either treaty.
    SEC. 107. RULE OF CONSTRUCTION.
    Nothing in this title, the Treaty Between the Government of the 
United States of America and the Government of the United Kingdom of 
Great Britain and Northern Ireland Concerning Defense Trade 
Cooperation, done at Washington and London on June 21 and 26, 2007 (and 
any implementing arrangement thereto), the Treaty Between the 
Government of the United States of America and the Government of 
Australia Concerning Defense Trade Cooperation, done at Sydney, 
September 5, 2007 (and any implementing arrangement thereto), or in any 
regulation issued to implement either treaty, shall be construed to 
modify or supersede any provision of law or regulation other than the 
Arms Export Control Act (22 U.S.C. 2751 et seq.), as amended by this 
Act, and the International Traffic in Arms Regulations (subchapter M of 
chapter I of title 22, Code of Federal Regulations).

             TITLE II--AUTHORITY TO TRANSFER NAVAL VESSELS

    SEC. 201. SHORT TITLE.
    This title may be cited as the ``Naval Vessel Transfer Act of 
2010''.
    SEC. 202. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN RECIPIENTS.
    (a) Transfers by Grant.--The President is authorized to transfer 
vessels to foreign countries on a grant basis under section 516 of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2321j), as follows:
        (1) India.--To the Government of India, the OSPREY class 
    minehunter coastal ships KINGFISHER (MHC-56) and CORMORANT (MHC-
    57).
        (2) Greece.--To the Government of Greece, the OSPREY class 
    minehunter coastal ships OSPREY (MHC-51), BLACKHAWK (MHC-58), and 
    SHRIKE (MHC-62).
        (3) Chile.--To the Government of Chile, the NEWPORT class 
    amphibious tank landing ship TUSCALOOSA (LST-1187).
        (4) Morocco.--To the Government of Morocco, the NEWPORT class 
    amphibious tank landing ship BOULDER (LST-1190).
    (b) Transfer by Sale.--The President is authorized to transfer the 
OSPREY class minehunter coastal ship ROBIN (MHC-54) to the Taipei 
Economic and Cultural Representative Office of the United States (which 
is the Taiwan instrumentality designated pursuant to section 10(a) of 
the Taiwan Relations Act (22 U.S.C. 3309(a)) on a sale basis under 
section 21 of the Arms Export Control Act (22 U.S.C. 2761).
    (c) Grants Not Counted in Annual Total of Transferred Excess 
Defense Articles.--The value of a vessel transferred to another country 
on a grant basis pursuant to authority provided by subsection (a) shall 
not be counted against the aggregate value of excess defense articles 
transferred in any fiscal year under section 516 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2321j).
    (d) Costs of Transfers.--Any expense incurred by the United States 
in connection with a transfer authorized by this section shall be 
charged to the recipient (notwithstanding section 516(e) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2321j(e))).
    (e) Repair and Refurbishment in United States Shipyards.--To the 
maximum extent practicable, the President shall require, as a condition 
of the transfer of a vessel under this section, that the recipient 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 
the recipient, performed at a shipyard located in the United States, 
including a United States Navy shipyard.
    (f) Expiration of Authority.--The authority to transfer a vessel 
under this section shall expire at the end of the 2-year period 
beginning on the date of the enactment of this Act.

                        TITLE III--OTHER MATTERS

    SEC. 301. EXPEDITED CONGRESSIONAL DEFENSE EXPORT REVIEW PERIOD FOR 
      ISRAEL.
    The Arms Export Control Act (22 U.S.C. 2751 et seq.) is amended--
        (1) in sections 3(d)(2)(B), 3(d)(3)(A)(i), 3(d)(5), 
    21(e)(2)(A), 36(b), 36(c), 36(d)(2)(A), 62(c)(1), and 63(a)(2), by 
    inserting ``Israel,'' before ``or New Zealand'' each place it 
    appears; and
        (2) in section 3(b)(2), by inserting ``the Government of 
    Israel,'' before ``or the Government of New Zealand''.
    SEC. 302. EXTENSION OF WAR RESERVES STOCKPILE AUTHORITY.
    (a) Department of Defense Appropriations Act, 2005.--Section 
12001(d) of the Department of Defense Appropriations Act, 2005 (Public 
Law 108-287; 118 Stat. 1011) is amended by striking ``more than 4 years 
after'' and inserting ``more than 8 years after''.
    (b) Foreign Assistance Act of 1961.--Section 514(b)(2)(A) of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2321h(b)(2)(A)) is amended by 
striking ``fiscal years 2007 and 2008'' and inserting ``fiscal years 
2011 and 2012''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.