[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3470 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 3470

    To provide for the transfer of naval vessels to certain foreign 
                   countries, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 13, 2013

 Mr. Royce (for himself and Mr. Engel) introduced the following bill; 
         which was referred to the Committee on Foreign Affairs

_______________________________________________________________________

                                 A BILL


 
    To provide for the transfer of naval vessels to certain foreign 
                   countries, 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 AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Naval Vessel 
Transfer and Arms Export Control Amendments Act of 2013''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
    TITLE I--TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN RECIPIENTS

Sec. 101. Transfer of naval vessels to certain foreign recipients.
              TITLE II--ARMS EXPORT CONTROL ACT AMENDMENTS

Sec. 201. Increase in congressional notification thresholds.
Sec. 202. Licensing of certain commerce-controlled items.
Sec. 203. Amendments relating to removal of items from the United 
                            States Munitions List.
Sec. 204. Amendment to definition of ``security assistance'' under the 
                            Foreign Assistance Act of 1961.
Sec. 205. Amendments to definitions of ``defense article'' and 
                            ``defense service'' under the Arms Export 
                            Control Act.
Sec. 206. Revision of statutory references to former NATO support 
                            organizations and related NATO agreements.
Sec. 207. Technical amendments.

    TITLE I--TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN RECIPIENTS

SEC. 101. 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) Mexico.--To the Government of Mexico, the OLIVER HAZARD 
        PERRY class guided missile frigates USS CURTS (FFG-38) and USS 
        MCCLUSKY (FFG-41).
            (2) Thailand.--To the Government of Thailand, the OLIVER 
        HAZARD PERRY class guided missile frigates USS RENTZ (FFG-46) 
        and USS VANDEGRIFT (FFG-48).
    (b) Transfer by Sale.--The President is authorized to transfer the 
OLIVER HAZARD PERRY class guided missile frigates USS TAYLOR (FFG-50), 
USS GARY (FFG-51), USS CARR (FFG-52), and USS ELROD (FFG-55) 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) Alternative Transfer Authority.--Notwithstanding the authority 
provided in subsections (a) and (b) to transfer specific vessels to 
specific countries, the President is authorized, subject to the same 
conditions that would apply for such country under this Act, to 
transfer any vessel named in this Act to any country named in this Act 
such that the total number of vessels transferred to such country does 
not exceed the total number of vessels authorized for transfer to such 
country by this Act.
    (d) 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) or 
(c) 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).
    (e) 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)).
    (f) 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 
that recipient, performed at a shipyard located in the United States, 
including a United States Navy shipyard.
    (g) Expiration of Authority.--The authority to transfer a vessel 
under this section shall expire at the end of the 3-year period 
beginning on the date of the enactment of this Act.

              TITLE II--ARMS EXPORT CONTROL ACT AMENDMENTS

SEC. 201. INCREASE IN CONGRESSIONAL NOTIFICATION THRESHOLDS.

    (a) Foreign Military Sales.--
            (1) In general.--Section 36(b)(1) of the Arms Export 
        Control Act (22 U.S.C. 2776(b)(1)) is amended--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by striking ``$50,000,000'' and 
                        inserting ``$100,000,000'';
                            (ii) by striking ``$200,000,000'' and 
                        inserting ``$300,000,000''; and
                            (iii) by striking ``$14,000,000'' and 
                        inserting ``$25,000,000''; and
                    (B) in the matter following subparagraph (P)--
                            (i) by inserting ``of any defense articles 
                        or defense services under this Act for 
                        $200,000,000 or more, any design and 
                        construction services for $300,000,000 or more, 
                        or any major defense equipment for $75,000,000 
                        or more,'' after ``The letter of offer shall 
                        not be issued, with respect to a proposed 
                        sale''; and
                            (ii) by inserting ``of any defense articles 
                        or services under this Act for $100,000,000 or 
                        more, any design and construction services for 
                        $200,000,000 or more, or any major defense 
                        equipment for $50,000,000 or more,'' after ``or 
                        with respect to a proposed sale''.
            (2) Technical and conforming amendments.--Section 36(b) of 
        the Arms Export Control Act (22 U.S.C. 2776(b)) is amended--
                    (A) in paragraph (1), by striking ``Subject to 
                paragraph (6), in'' and inserting ``In'';
                    (B) in paragraph (5)(C), by striking ``Subject to 
                paragraph (6), if'' and inserting ``If''; and
                    (C) by striking paragraph (6).
    (b) Commercial Sales.--Section 36(c) of the Arms Export Control Act 
(22 U.S.C. 2776(c)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``Subject to paragraph (5), in'' 
                and inserting ``In'';
                    (B) by striking ``$14,000,000'' and inserting 
                ``$25,000,000''; and
                    (C) by striking ``$50,000,000'' and inserting 
                ``$100,000,000'';
            (2) in paragraph (2)--
                    (A) in subparagraph (A), by inserting after ``for 
                an export'' the following: ``of any major defense 
                equipment sold under a contract in the amount of 
                $75,000,000 or more or of defense articles or defense 
                services sold under a contract in the amount of 
                $200,000,000 or more, (or, in the case of a defense 
                article that is a firearm controlled under category I 
                of the United States Munitions List, $1,000,000 or 
                more)''; and
                    (B) in subparagraph (C), by inserting after 
                ``license'' the following: ``for an export of any major 
                defense equipment sold under a contract in the amount 
                of $50,000,000 or more or of defense articles or 
                defense services sold under a contract in the amount of 
                $100,000,000 or more, (or, in the case of a defense 
                article that is a firearm controlled under category I 
                of the United States Munitions List, $1,000,000 or 
                more)'';
            (3) by striking paragraph (5); and
            (4) by redesignating paragraph (6) as paragraph (5).

SEC. 202. LICENSING OF CERTAIN COMMERCE-CONTROLLED ITEMS.

    Section 38 of the Arms Export Control Act (22 U.S.C. 2778) is 
amended by adding at the end the following new subsection:
    ``(k) Licensing of Certain Commerce-Controlled Items.--
            ``(1) In general.--A license or other approval from the 
        Department of State granted in accordance with this section may 
        also authorize the export of items subject to the Export 
        Administration Regulations if such items are to be used in or 
        with defense articles controlled on the United States Munitions 
        List.
            ``(2) Other requirements.--The following requirements shall 
        apply with respect to a license or other approval to authorize 
        the export of items subject to the Export Administration 
        Regulations under paragraph (1):
                    ``(A) Separate approval from the Department of 
                Commerce shall not be required for such items if such 
                items are approved for export under a Department of 
                State license or other approval.
                    ``(B) Such items subject to the Export 
                Administration Regulations that are exported pursuant 
                to a Department of State license or other approval 
                would remain under the jurisdiction of the Department 
                of Commerce with respect to any subsequent 
                transactions.
                    ``(C) The inclusion of the term `subject to the 
                EAR' or any similar term on a Department of State 
                license or approval shall not affect the jurisdiction 
                with respect to such items.
            ``(3) Definition.--In this subsection, the term `Export 
        Administration Regulations' means--
                    ``(A) the Export Administration Regulations as 
                maintained and amended under the authority of the 
                International Emergency Economic Powers Act (50 U.S.C. 
                1701 et seq.); or
                    ``(B) any successor regulations.''.

SEC. 203. AMENDMENTS RELATING TO REMOVAL OF ITEMS FROM THE UNITED 
              STATES MUNITIONS LIST.

    (a) Requirements for Removal of Major Defense Equipment and 
Significant Military Equipment From the United States Munitions List.--
Section 38(f) of the Arms Export Control Act (22 U.S.C. 2778(f)) is 
amended by adding at the end the following:
            ``(5)(A) Except as provided in subparagraph (B), the 
        President shall take such actions as may be necessary to ensure 
        that any major defense equipment or significant military 
        equipment that is removed from the United States Munitions List 
        and transferred to the Commerce Control List for purposes of 
        commercial export is not subsequently modified so as to 
        transform such equipment into a defense article.
            ``(B) The President may authorize the transformation of 
        major defense equipment or significant military equipment that 
        is removed from the United States Munitions List and 
        transferred to the Commerce Control List for purposes of 
        commercial export into a defense article if the President--
                    ``(i) determines that such transformation is 
                appropriate and in the national interests of the United 
                States; and
                    ``(ii) provides notice of such transformation to 
                the chairman of the Committee on Foreign Affairs of the 
                House of Representatives and the chairman of the 
                Committee on Foreign Relations of the Senate consistent 
                with the notification requirements of section 
                36(b)(5)(A) of this Act.
            ``(C) In this paragraph--
                    ``(i) the term `Commerce Control List' means--
                            ``(I) items transferred from the United 
                        States Munitions List to the Commerce Control 
                        List and designated as `600 series' items on 
                        the Commerce Control List under the Export 
                        Administration Regulations, as proposed by the 
                        Bureau of Industry and Security of the 
                        Department of Commerce on July 15, 2011 (76 
                        Fed. Reg. 41958); or
                            ``(II) any successor regulations; and
                    ``(ii) the term `defense article' means an item 
                designated by the President pursuant to subsection 
                (a)(1).''.
    (b) Notification and Reporting Requirements for Major Defense 
Equipment and Significant Military Equipment Removed From the United 
States Munitions List.--Section 38(f) of the Arms Export Control Act 
(22 U.S.C. 2778(f)), as amended by this section, is further amended by 
adding at the end the following:
            ``(6) The President shall ensure that any item that is 
        major defense equipment or significant military equipment and 
        is removed from the United States Munitions List shall continue 
        to be subject to the notification and reporting requirements of 
        the following provisions of law:
                    ``(A) Section 516(f) of the Foreign Assistance Act 
                of 1961 (22 U.S.C. 2321j(f)).
                    ``(B) Section 655 of the Foreign Assistance Act of 
                1961 (22 U.S.C. 2415).
                    ``(C) Section 3(d)(3)(A) of this Act.
                    ``(D) Section 25 of this Act.
                    ``(E) Sections 36(b), (c), and (d) of this Act.''.

SEC. 204. AMENDMENT TO DEFINITION OF ``SECURITY ASSISTANCE'' UNDER THE 
              FOREIGN ASSISTANCE ACT OF 1961.

    Section 502B(d) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2304(d)) is amended--
            (1) in paragraph (1), by striking ``and'' at the end;
            (2) in paragraph (2)(C) to read as follows:
                    ``(C) any license in effect with respect to the 
                export to or for the armed forces, police, 
                intelligence, or other internal security forces of a 
                foreign country of--
                            ``(i) defense articles or defense services 
                        under section 38 of the Armed Export Control 
                        Act; or
                            ``(ii) `600 series' items on the Commerce 
                        Control List under the Export Administration 
                        Regulations, as proposed by the Bureau of 
                        Industry and Security of the Department of 
                        Commerce on July 15, 2011 (76 Fed. Reg. 41958), 
                        or any successor regulations;''; and
            (3) by adding at the end the following new paragraphs:
            ``(3) the term `Commerce Control List' means--
                    ``(A) items transferred from the United States 
                Munitions List to the Commerce Control List and 
                designated as `600 series' items on the Commerce 
                Control List under the Export Administration 
                Regulations, as proposed by the Bureau of Industry and 
                Security of the Department of Commerce on July 15, 2011 
                (76 Fed. Reg. 41958); or
                    ``(B) any successor regulations; and
            ``(4) the term `Export Administration Regulations' means--
                    ``(A) the Export Administration Regulations as 
                maintained and amended under the authority of the 
                International Emergency Economic Powers Act (50 U.S.C. 
                1701 et seq.); or
                    ``(B) any successor regulations.''.

SEC. 205. AMENDMENTS TO DEFINITIONS OF ``DEFENSE ARTICLE'' AND 
              ``DEFENSE SERVICE'' UNDER THE ARMS EXPORT CONTROL ACT.

    Section 47 of the Arms Export Control Act (22 U.S.C. 2794) is 
amended--
            (1) in the matter preceding subparagraph (A) of paragraph 
        (3), by striking ``includes'' and inserting ``means, with 
        respect to a sale or transfer by the United States under the 
        authority of this Act or any other foreign assistance or sales 
        program of the United States''; and
            (2) in paragraph (4), by striking ``includes'' and 
        inserting ``means, with respect to a sale or transfer by the 
        United States under the authority of this Act or any other 
        foreign assistance or sales program of the United States,''.

SEC. 206. REVISION OF STATUTORY REFERENCES TO FORMER NATO SUPPORT 
              ORGANIZATIONS AND RELATED NATO AGREEMENTS.

    Section 21(e)(3) of the Arms Export Control Act (22 U.S.C. 
2761(e)(3)) is amended--
            (1) in subparagraphs (A) and (C)(i), by striking 
        ``Maintenance and Supply Agency of the North Atlantic Treaty 
        Organization'' and inserting ``North Atlantic Treaty 
        Organization (NATO) Support Organization and its executive 
        agencies''; and
            (2) in subparagraph (C)(i)(II), by striking ``a specific 
        weapon system'' and inserting ``activities''.

SEC. 207. TECHNICAL AMENDMENTS.

    The Arms Export Control Act (22 U.S.C. 2751 et seq.) is amended--
            (1) in sections 3(a), 3(d)(1), 3(d)(3)(A), 3(e), 5(c), 6, 
        21(g), 36(a), 36(b)(1), 36(b)(5)(C), 36(c)(1), 36(f), 38(f)(1), 
        40(f)(1), 40(g)(2)(B), 101(b), and 102(a)(2), by striking ``the 
        Speaker of the House of Representatives and'' each place it 
        appears and inserting ``the Speaker of the House of 
        Representatives, the Committee on Foreign Affairs of the House 
        of Representatives, and'';
            (2) in section 21(i)(1) by inserting after ``the Speaker of 
        the House of Representatives'' the following ``, the Committees 
        on Foreign Affairs and Armed Services of the House of 
        Representatives,'';
            (3) in sections 25(e), 38(f)(2), 38(j)(3), and 38(j)(4)(B), 
        by striking ``International Relations'' each place it appears 
        and inserting ``Foreign Affairs'';
            (4) in sections 27(f) and 62(a), by inserting after ``the 
        Speaker of the House of Representatives,'' each place it 
        appears the following: ``the Committee on Foreign Affairs of 
        the House of Representatives,''; and
            (5) in section 73(e)(2), by striking ``the Committee on 
        National Security and the Committee on International Relations 
        of the House of Representatives'' and inserting ``the Committee 
        on Armed Services and the Committee on Foreign Affairs of the 
        House of Representatives''.
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