[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3939 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 3939

    To provide for the transfer of not more than two Virginia class 
    submarines from the inventory of the Navy to the Government of 
 Australia on a sale basis under section 21 of the Arms Export Control 
                      Act, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 9, 2023

  Mr. Meeks (for himself, Mr. Bera, and Mr. Courtney) introduced the 
following bill; which was referred to the Committee on Foreign Affairs, 
and in addition to the Committee on Armed Services, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
    To provide for the transfer of not more than two Virginia class 
    submarines from the inventory of the Navy to the Government of 
 Australia on a sale basis under section 21 of 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 ``AUKUS Undersea Defense Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The new trilateral security partnership between 
        Australia, the United Kingdom, and the United States (in this 
        section referred to as the ``AUKUS partnership'') is intended 
        to positively contribute to peace and stability in the Indo-
        Pacific region through enhanced deterrence.
            (2) This trilateral security partnership builds on and 
        enhances the United States, Australia, and the United Kingdom's 
        commitment to a free and open Indo-Pacific, and more broadly to 
        a rules-based international order.
            (3) Australia has a strong record of leadership in the 
        international nuclear non-proliferation regime and is fully 
        committed to responsible stewardship of naval nuclear 
        propulsion technology.
            (4) Pillar 1 of the AUKUS partnership aims to provide 
        Australia with a conventionally armed, nuclear-powered 
        submarine capability while upholding the highest non-
        proliferation standards.
            (5) In support of this Pillar 1 goal, the United States and 
        the United Kingdom plan to increase port visits to Australia of 
        conventionally armed, nuclear-powered submarines then begin 
        forward rotations of such submarines to Australia at Submarine 
        Rotational Force-West.
            (6) In support of these goals, the United States will 
        transfer Virginia-class submarines to Australia to bolster its 
        critical undersea capabilities and enhance its undersea 
        presence in the Indo-Pacific region.
            (7) Pillar 1 of the AUKUS partnership will enhance all 
        three nations' defense industrial capacity to produce and 
        sustain interoperable nuclear-powered submarines, expand 
        collective undersea presence in the Indo-Pacific, and 
        contribute to freedom of navigation, security, and stability in 
        the Indo-Pacific region.
            (8) Trilateral security cooperation that strengthens joint 
        capabilities, enhances the ability to share information and 
        technology safely, and integrates defense industrial bases and 
        supply chains will contribute to the security of each nation as 
        well as peace and stability in the Indo-Pacific region.

SEC. 3. AUSTRALIA, UNITED KINGDOM, AND UNITED STATES SUBMARINE SECURITY 
              ACTIVITIES.

    (a) Authorization To Transfer Submarines.--
            (1) In general.--Subject to paragraph (6), the President 
        may transfer not more than two Virginia class submarines from 
        the inventory of the Navy to the Government of Australia on a 
        sale basis under section 21 of the Arms Export Control Act (22 
        U.S.C. 2761).
            (2) Costs of transfer.--Any expense incurred by the United 
        States in connection with the transfer authorized by this 
        subsection shall be charged to the Government of Australia.
            (3) Waiver of certification requirement.--The requirement 
        for the Chief of Naval Operations to make a certification under 
        section 8678 of title 10, United States Code, shall not apply 
        to a transfer under this subsection.
            (4) Use of funds.--The Secretary of the Navy may use the 
        proceeds of a transfer under this subsection--
                    (A) for the acquisition of vessels to replace the 
                vessels transferred to the Government of Australia; or
                    (B) to carry out any other authority the use of 
                which the Secretary of the Navy determines would 
                improve the submarine industrial base.
            (5) Crediting of receipts.--Notwithstanding any provision 
        of law pertaining to the crediting of amounts received from a 
        sale under the terms of the Arms Export Control Act (22 U.S.C. 
        2761), any receipt of the United States as a result of a 
        transfer under this section shall--
                    (A) be credited, at the discretion of the Secretary 
                of the Navy to--
                            (i) the appropriation, fund, or account 
                        used in incurring the original obligation;
                            (ii) an appropriate appropriation, fund, or 
                        account currently available for the purposes 
                        for which the expenditures were made; or
                            (iii) any other appropriation, fund, or 
                        account available for the purpose specified in 
                        paragraph (4)(B); and
                    (B) remain available for obligation until expended 
                for the same purpose as the appropriation to which the 
                receipt is credited.
            (6) Applicability of existing law to transfer special 
        nuclear material and utilization facilities for military 
        applications.--
                    (A) In general.--With respect to any special 
                nuclear material for use in utilization facilities or 
                any portion of a vessel transferred under this 
                subsection constituting utilization facilities for 
                military applications under section 91 of the Atomic 
                Energy Act of 1954 (42 U.S.C. 2121), transfer of such 
                material or such facilities shall only occur in 
                accordance with such section 91.
                    (B) Use of funds.--The Secretary of Energy may use 
                proceeds from a transfer described in subparagraph (A) 
                for the acquisition of submarine naval nuclear 
                propulsion plants and the nuclear fuel to replace the 
                propulsion plants and fuel transferred to the 
                Government of Australia.
    (b) Repair and Refurbishment of AUKUS Submarines.--Section 8680 of 
title 10, United States Code, is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following:
    ``(c) Repair and Refurbishment of Certain Submarines.--(1) 
Notwithstanding any other provision of this section, the Secretary of 
the Navy shall determine the appropriate shipyard in the United States, 
Australia, or the United Kingdom to perform any repair or refurbishment 
of a United States submarine involved in submarine security activities 
between Australia, the United Kingdom, and the United States (in this 
section referred to as `AUKUS').
    ``(2) Repair or refurbishment described in paragraph (1) may be 
carried out by personnel of the United States, United Kingdom, or 
Australia in accordance with the international arrangements governing 
AUKUS submarine security activities.''.

SEC. 4. ACCEPTANCE OF CONTRIBUTIONS IN SUPPORT OF AUSTRALIA, UNITED 
              KINGDOM, AND UNITED STATES SUBMARINE SECURITY ACTIVITIES.

    (a) In General.--Chapter 155 of title 10, United States Code, is 
amended by inserting after section 2608 the following new section:
``Sec. 2609. Acceptance of contributions for Australia, United Kingdom, 
              and United States submarine security activities; 
              Submarine Security Activities Account
    ``(a) Acceptance Authority.--The Secretary of Defense may accept 
from the Government of Australia contributions of money made by the 
Government of Australia for use by the Department of Defense in support 
of non-nuclear related aspects of submarine security activities between 
Australia, the United Kingdom, and the United States (in this section 
referred to as `AUKUS').
    ``(b) Establishment of Submarine Security Activities Account.--(1) 
There is established in the Treasury of the United States a special 
account to be known as the `Submarine Security Activities Account'.
    ``(2) Contributions of money accepted by the Secretary of Defense 
under subsection (a) shall be credited to the Submarine Security 
Activities Account.
    ``(c) Use of the Submarine Security Activities Account.--(1) The 
Secretary of Defense may use funds in the Submarine Security Activities 
Account--
            ``(A) for any purpose authorized by law that the Secretary 
        determines would support AUKUS submarine security activities; 
        or
            ``(B) to carry out a military construction project that is 
        consistent with the purposes for which the contributions were 
        made and is not otherwise authorized by law.
    ``(2) Funds in the Submarine Security Activities Account may be 
used as described in this subsection without further specific 
authorization in law.
    ``(d) Transfers of Funds.--(1) In carrying out subsection (c), the 
Secretary of Defense may transfer funds available in the Submarine 
Security Activities Account to appropriations available to the 
Department of Defense.
    ``(2) In carrying out subsection (c), and in accordance with the 
Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.), the Secretary of 
Defense may transfer funds available in the Submarine Security 
Activities Account to appropriations or funds of the Department of 
Energy available to carry out activities related to AUKUS submarine 
security activities.
    ``(3) Funds transferred under this subsection shall be available 
for obligation for the same time period and for the same purpose as the 
appropriation to which transferred.
    ``(4) Upon a determination by the Secretary that all or part of the 
funds transferred from the Submarine Security Activities Account are 
not necessary for the purposes for which such funds were transferred, 
all or such part of such funds shall be transferred back to the 
Submarine Security Activities Account.
    ``(e) Investment of Money.--(1) Upon request by the Secretary of 
Defense, the Secretary of the Treasury may invest money in the 
Submarine Security Activities Account in securities of the United 
States or in securities guaranteed as to principal and interest by the 
United States.
    ``(2) Any interest or other income that accrues from investment in 
securities referred to in paragraph (1) shall be deposited to the 
credit of the Submarine Security Activities Account.
    ``(f) Report.--(1) Not later than 60 days after the date on which 
contributions of money accepted by the Secretary of Defense under 
subsection (a) are credited to the Submarine Security Activities 
Account under subsection (b), the Secretary of Defense shall submit to 
the appropriate congressional committees a report on--
            ``(A) the amount of money so transferred;
            ``(B) a description of the intended use of the funds; and
            ``(C) any other matters related to the administration of 
        the Submarine Security Activities Account as determined 
        necessary by the Secretary.
    ``(2) The report required by this subsection shall be submitted in 
unclassified form but may include a classified annex.
    ``(3) In this subsection, the term `appropriate congressional 
committees' means--
            ``(A) the congressional defense committees; and
            ``(B) the Committee on Foreign Affairs of the House of 
        Representatives and the Committee on Foreign Relations of the 
        Senate.
    ``(g) Relationship to Other Laws.--The authority to accept or 
transfer funds under this section is in addition to any other authority 
to accept or transfer funds.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2608 the following:

``2609. Acceptance of contributions for Australia, United Kingdom, and 
                            United States submarine security 
                            activities; Submarine Security Activities 
                            Account.''.

SEC. 5. AUSTRALIA, UNITED KINGDOM, AND UNITED STATES SUBMARINE SECURITY 
              TRAINING.

    (a) In General.--The President may transfer or authorize the export 
of defense services to the Government of Australia under the Arms 
Export Control Act (22 U.S.C. 2751 et seq.) that may also be directly 
exported to Australian private-sector personnel to support the 
development of the Australian submarine industrial base necessary for 
submarine security activities between Australia, the United Kingdom, 
and the United States (in this section referred to as ``AUKUS''), 
including in cases in which such private-sector personnel are not 
officers, employees, or agents of the Government of Australia.
    (b) Application of Requirements for Further Transfer.--Any transfer 
of defense services to the Government of Australia pursuant to 
subsection (a) to persons other than those directly provided such 
defense services pursuant to subsection (a) shall only be made in 
accordance with the requirements of the Arms Export Control Act (22 
U.S.C. 2751 et seq.).
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