[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1997 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                S. 1997

  To promote peace through strength in Taiwan, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 14, 2023

   Mr. Rubio introduced the following bill; which was read twice and 
             referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL


 
  To promote peace through strength in Taiwan, 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 ``Taiwan Peace through Strength Act of 
2023''.

SEC. 2. ANTICIPATORY POLICY PLANNING AND ANNUAL REVIEW OF UNITED STATES 
              WAR PLANS TO DEFEND TAIWAN.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, and annually thereafter, the Secretary of 
Defense shall conduct a classified review of United States war plans to 
defend Taiwan and share the results of the review with the Chairman and 
Ranking Member of the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives.
    (b) Elements.--The review conducted under subsection (a) shall 
include the following elements:
            (1) An assessment of Taiwan's current and near-term 
        capabilities and United States force readiness and the adequacy 
        of United States conflict contingency plans.
            (2) A comprehensive assessment of risks to the United 
        States and United States interests, including readiness 
        shortfalls that pose strategic risk.
            (3) A review of indicators of the near-term likelihood of 
        the use of force by the People's Liberation Army against 
        Taiwan.
            (4) The compilation of a pre-approved list of military 
        capabilities, including both asymmetric and traditional 
        capabilities selected to suit the operational environment and 
        to allow Taiwan to respond effectively to a variety of 
        contingencies across all phases of conflict involving the 
        People's Liberation Army, that the Secretary of Defense has 
        pre-cleared for Taiwan to acquire, and that would reduce the 
        threat of conflict, thwart an invasion, and mitigate other 
        risks to the United States and Taiwan.

SEC. 3. FAST-TRACKING SALES TO TAIWAN UNDER FOREIGN MILITARY SALES 
              PROGRAM.

    (a) Preclearance of Certain Foreign Military Sales Items.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, and annually thereafter, the 
        Secretary of State, in coordination with the Secretary of 
        Defense and in conjunction with relevant coordinating entities, 
        such as the National Disclosure Policy Committee and the Arms 
        Transfer and Technology Release Senior Steering Group, shall--
                    (A) compile and submit to the relevant 
                congressional committees a list of available and 
                emerging military platforms, technologies, and 
                equipment; and
                    (B) upon listing such platforms, technologies, and 
                equipment, pre-clear and prioritize for sale and 
                release to Taiwan through the Foreign Military Sales 
                program such platforms, technologies, and equipment.
            (2) Selection of items.--The items pre-cleared for sale 
        pursuant to paragraph (1)--
                    (A) shall represent a full-range of asymmetric 
                capabilities as well as the conventional capabilities 
                informed by United States readiness and risk 
                assessments and determined by Taiwan to be required for 
                various wartime scenarios and peacetime duties; and
                    (B) shall include each item on the list of approved 
                items compiled by the Secretary of Defense pursuant to 
                section 2(b)(4).
            (3) Exception.--The Secretary of State may exclude an item 
        from the list described in paragraph (1)(A) if the Secretary of 
        State submits to the appropriate congressional committees a 
        determination that the costs of providing such items, including 
        the potential costs of technology slippage, exceeds the costs 
        to the United States of failing to arm Taiwan with such items, 
        including the likelihood of being drawn into conflict with the 
        People's Republic of China.
            (4) Rule of construction.--The list compiled pursuant to 
        section 2(b)(4) shall not be construed as limiting the type, 
        timing, or quantity of items that may be requested by, or sold 
        to, Taiwan under the Foreign Military Sales program.
            (5) Final determination of disputes.--The Department of 
        Defense shall serve as the lead Federal agency for purposes of 
        making final determinations when disputes arise between 
        agencies about the appropriateness of specific items for sale 
        to Taiwan.
    (b) Prioritized Processing of Foreign Military Sales Requests From 
Taiwan.--
            (1) Requirement.--The Secretary of Defense and the 
        Secretary of State shall prioritize and expedite the processing 
        of requests from Taiwan under the Foreign Military Sales 
        program, and may not delay the processing of requests for 
        bundling purposes.
            (2) Duration.--The requirement under paragraph (1) shall 
        continue until the Secretary of Defense determines and 
        certifies to the Committee on Armed Services of the Senate and 
        the Committee on Armed Services of the House of Representatives 
        that the threat to Taiwan has significantly abated.
            (3) Annual report.--Not later than 180 days after the date 
        of the enactment of this Act, and annually thereafter for 10 
        years, the Secretary of Defense shall submit to the Committee 
        on Armed Services of the Senate and the Committee on Armed 
        Services of the House of Representatives a report describing 
        steps taken to implement the requirement under paragraph (1).
    (c) Priority Production.--
            (1) Requirement.--The Secretary of Defense shall require 
        that contractors awarded Department of Defense contracts to 
        provide items for sale to Taiwan under the Foreign Military 
        Sales program shall, as a condition of receiving such 
        contracts, expedite and prioritize the production of such items 
        above the production of other Foreign Military Sales items 
        regardless of the order in which contracts were signed.
            (2) Duration.--The requirement under paragraph (1) shall 
        continue until the Secretary of Defense determines and 
        certifies to the Committee on Armed Services of the Senate and 
        the Committee on Armed Services of the House of Representatives 
        that the threat to Taiwan has significantly abated.
            (3) Annual report.--Contractors covered under paragraph (1) 
        shall be required to report annually to the Committee on Armed 
        Services of the Senate and the Committee on Armed Services of 
        the House of Representatives on efforts to expedite and 
        prioritize production as required under such paragraph.
    (d) Interagency Policy.--The Secretary of State and the Secretary 
of Defense shall jointly review and update interagency policies and 
implementation guidance related to Foreign Military Sales requests from 
Taiwan, including incorporating the preclearance and prioritization 
provisions of this section.

SEC. 4. AMENDMENTS TO TAIWAN RELATIONS ACT.

    (a) Policy.--Section 2(b)(5) of the Taiwan Relations Act (22 U.S.C. 
3301(b)(5)) is amended by striking ``arms of a defensive character'' 
and inserting ``arms conducive to the deterrence of acts of aggression 
by the People's Liberation Army''.
    (b) Provision of Defense Articles and Services.--Section 3(a) of 
the Taiwan Relations Act (22 U.S.C. 3302(a)) is amended by striking 
``such defense articles and defense services in such quantity as may be 
necessary to enable Taiwan to maintain a sufficient self-defense 
capability'' and inserting ``such defense articles and defense services 
in such quantity as may be necessary to enable Taiwan to implement a 
strategy to deter acts of aggression by the People's Liberation Army 
and to deny an invasion of Taiwan by the People's Liberation Army''.
    (c) Rule of Construction.--Section 4 of the Taiwan Relations Act 
(22 U.S.C. 3303) is amended by adding at the end the following new 
subsection:
    ``(e) Security Cooperation and Deterrence of Use of Force by 
People's Liberation Army.--Nothing in this Act, nor the facts of the 
President's action in extending diplomatic recognition to the People's 
Republic of China, the absence of diplomatic relations between the 
people of Taiwan and the United States, or the lack of formal 
recognition by the United States, and attendant circumstances thereto, 
shall be construed to constitute a legal or practical obstacle to any 
otherwise lawful action of the President or of any United States 
Government agency that is needed to advance or protect United States 
interests pertaining to Taiwan, including actions intended to 
strengthen security cooperation between the United States and Taiwan or 
to otherwise deter the use of force against Taiwan by the People's 
Liberation Army.''.

SEC. 5. MILITARY PLANNING MECHANISM.

    The Secretary of Defense shall establish a high-level military 
planning mechanism between the United States and Taiwan to oversee a 
Joint and Combined Exercise Program and coordinate International 
Military Education and Training assistance and professional exchanges 
aimed at determining and coordinating the acquisition of capabilities 
for both United States and Taiwan military forces to address the needs 
of currently anticipated and future contingencies. The mechanism may be 
modeled after the Joint United States Military Advisory Group Thailand, 
or any such similar existing arrangement, as determined by the 
Secretary of Defense.

SEC. 6. PROHIBITION ON DOING BUSINESS IN CHINA.

    (a) Requirement.--The Secretary of Defense shall require any 
contractor awarded a Department of Defense contract, as a condition of 
receiving such contract, not to conduct any business in the People's 
Republic of China with any entity that is owned by or controlled by the 
Government of the People's Republic of China or the Chinese Communist 
Party, or any subsidiary of such a company.
    (b) Determination of Noncompliance.--If the Secretary of Defense 
determines that a Department of Defense contractor is noncompliant with 
the requirement in subsection (a)--
            (1) such noncompliance shall be considered grounds for 
        termination of the contract; and
            (2) the Secretary of Defense shall terminate the contract.

SEC. 7. TAIWAN CRITICAL MUNITIONS ACQUISITION FUND.

    (a) Establishment.--There shall be established in the Treasury of 
the United States a revolving fund to be known as the ``Taiwan Critical 
Munitions Acquisition Fund'' (in this section referred to as the 
``Fund'').
    (b) Purpose.--Subject to the availability of appropriations, 
amounts in the Fund shall be made available by the Secretary of 
Defense--
            (1) to ensure that adequate stocks of critical munitions 
        necessary for a denial defense are available to allies and 
        partners of the United States in advance of a potential 
        operation to defend the autonomy and territory of Taiwan; and
            (2) to finance the acquisition of critical munitions 
        necessary for a denial defense in advance of the transfer of 
        such munitions to foreign countries for such a potential 
        operation.
    (c) Additional Authority.--Subject to the availability of 
appropriations, the Secretary of Defense may also use amounts made 
available to the Fund--
            (1) to keep on continuous order munitions that the 
        Secretary of Defense considers critical due to a reduction in 
        current stocks as a result of the drawdown of stocks provided 
        to the government of one or more foreign countries; or
            (2) with the concurrence of the Secretary of State, to 
        procure munitions identified as having a high-use rate.
    (d) Deposits.--
            (1) In general.--The Fund shall consist of each of the 
        following:
                    (A) Collections from sales made under letters of 
                offer (or transfers made under the Foreign Assistance 
                Act of 1961 (22 U.S.C. 2151 et seq.)) of munitions 
                acquired using amounts made available from the Fund 
                pursuant to this section, representing the value of 
                such items calculated, as applicable, in accordance 
                with--
                            (i) subparagraph (B) or (C) of section 
                        21(a)(1) of the Arms Export Control Act (22 
                        U.S.C. 2761(a)(1));
                            (ii) section 22 of the Arms Export Control 
                        Act (22 U.S.C. 2762); or
                            (iii) section 644(m) of the Foreign 
                        Assistance Act of 1961 (22 U.S.C. 2403(m)).
                    (B) Such amounts as may be appropriated pursuant to 
                the authorization under this section or otherwise made 
                available for the purposes of the Fund.
                    (C) Not more than $2,000,000,000 may be transferred 
                to the Fund for any fiscal year, in accordance with 
                subsection (e), from amounts authorized to be 
                appropriated for the Department of Defense in such 
                amounts as the Secretary of Defense determines 
                necessary to carry out the purposes of this section, 
                which shall remain available until expended. The 
                transfer authority provided under this subparagraph is 
                in addition to any other transfer authority available 
                to the Secretary of Defense.
            (2) Contributions from foreign governments.--
                    (A) In general.--Subject to subparagraph (B), the 
                Secretary of Defense may accept contributions of 
                amounts to the Fund from any foreign government or 
                international organization. Any amounts so accepted 
                shall be credited to the Taiwan Critical Munitions 
                Acquisition Fund and shall be available for use as 
                authorized under subsection (b).
                    (B) Limitation.--The Secretary of Defense may not 
                accept a contribution under this paragraph if the 
                acceptance of the contribution would compromise, or 
                appear to compromise, the integrity of any program of 
                the Department of Defense.
                    (C) Notification.--If the Secretary of Defense 
                accepts any contribution under this paragraph, the 
                Secretary shall notify the appropriate committees of 
                Congress. The notice shall specify the source and 
                amount of any contribution so accepted and the use of 
                any amount so accepted.
    (e) Notification.--
            (1) In general.--No amount may be transferred pursuant to 
        subsection (d)(1)(C) until the date that is 15 days after the 
        date on which the Secretary of Defense submits to the 
        appropriate committees of Congress--
                    (A) notice in writing of the amount and purpose of 
                the proposed transfer; and
                    (B) in the case of an authorization pursuant to 
                subsection (f)(1)(A), a description of the manner in 
                which the use of critical munitions is necessary to 
                meet national defense requirements.
            (2) Ammunition purchases.--No amounts in the Fund may be 
        used to purchase ammunition, as authorized by this section, 
        until the date that is 15 days after the date on which the 
        Secretary of Defense notifies the appropriate committees of 
        Congress in writing of the amount and purpose of the proposed 
        purchase.
            (3) Foreign transfers.--No munition purchased using amounts 
        in the Fund may be transferred to a foreign country until the 
        date that is 15 days after the date on which the Secretary of 
        Defense notifies the appropriate committees of Congress in 
        writing of the proposed transfer.
    (f) Limitations.--
            (1) Limitation on transfer.--No munition acquired by the 
        Secretary of Defense using amounts made available from the Fund 
        pursuant to this section may be transferred to any foreign 
        country unless such transfer is authorized by the Arms Export 
        Control Act (22 U.S.C. 2751 et seq.), the Foreign Assistance 
        Act of 1961 (22 U.S.C. 2151 et seq.), or other applicable law, 
        except as follows:
                    (A) The Secretary of Defense, with the concurrence 
                of the Secretary of State, may authorize the use by the 
                Department of Defense of munitions acquired under this 
                section prior to transfer to a foreign country, if such 
                use is necessary to meet national defense requirements 
                and the Department bears the costs of replacement and 
                transport, maintenance, storage, and other such 
                associated costs of such munitions.
                    (B) Except as required by subparagraph (A), amounts 
                made available to the Fund may be used to pay for 
                storage, maintenance, and other costs related to the 
                storage, preservation, and preparation for transfer of 
                munitions acquired under this section prior to their 
                transfer, and the administrative costs of the 
                Department of Defense incurred in the acquisition of 
                such items, to the extent such costs are not eligible 
                for reimbursement pursuant to section 43(b) of the Arms 
                Export Control Act (22 U.S.C. 2792(b)).
            (2) Certification requirement.--
                    (A) In general.--No amounts in the Fund may be used 
                pursuant to this section unless the President--
                            (i) certifies to the appropriate committees 
                        of Congress that the Special Defense 
                        Acquisition Fund established pursuant to 
                        chapter 5 of the Arms Export Control Act (22 
                        U.S.C. 2795 et seq.) cannot be used to fulfill 
                        the same functions and objectives for which 
                        such amounts to be made available from the Fund 
                        are to be used; and
                            (ii) includes in such certification a 
                        justification for the certification, which may 
                        be included in a classified annex, if 
                        necessary.
                    (B) Nondelegation.--The President may not delegate 
                any responsibility of the President under subparagraph 
                (A).
    (g) Termination.--The authority for the Fund under this section 
shall expire on December 31, 2040.
    (h) Appropriate Committees of Congress Defined.--In this section, 
the term ``appropriate committees of Congress'' means--
            (1) the Committee on Armed Services, the Committee on 
        Appropriations, and the Committee on Foreign Relations of the 
        Senate; and
            (2) the Committee on Armed Services, the Committee on 
        Appropriations, and the Committee on Foreign Affairs of the 
        House of Representatives.

SEC. 8. INCREASING PRODUCTION CAPACITY FOR WEAPONS FOR UNITED STATES 
              STOCKPILES.

    (a) Report Requirement Relating to Increase in Contracted 
Entities.--Section 222c(e) of title 10, United States Code, as amended 
by section 1701(c) of the James M. Inhofe National Defense 
Authorization Act for Fiscal Year 2023 (Public Law 117-263), is further 
amended by adding at the end the following new paragraph:
            ``(4) Steps taken to increase the number of entities 
        contracted to supply each class of weapons described in section 
        1705(c) of the James M. Inhofe National Defense Authorization 
        Act for Fiscal Year 2023 (Public Law 117-263) in order to 
        produce redundancy in the supply of such weapons.''.
    (b) Modification to Quarterly Briefings on Replenishment and 
Revitalization of Weapons Provided to Ukraine and Taiwan.--Section 1703 
of the James M. Inhofe National Defense Authorization Act for Fiscal 
Year 2023 (Public Law 117-263) is amended--
            (1) in the section heading, by inserting ``and taiwan'' 
        after ``ukraine'';
            (2) in subsection (a), by inserting ``, the Committee on 
        Foreign Relations of the Senate, and the Committee on Foreign 
        Affairs of the House of Representatives'' after ``congressional 
        defense committees'';
            (3) in subsection (d)(2), by inserting ``or Taiwan'' after 
        ``Ukraine'';
            (4) in subsection (e), by striking ``December 31, 2026'' 
        and inserting ``December 31, 2040''; and
            (5) by striking subsection (f) and inserting the following:
    ``(f) Covered System.--In this section, the term `covered system' 
means--
            ``(1) any system provided to the Government of Ukraine or 
        the Government of Taiwan pursuant to--
                    ``(A) section 506 of the Foreign Assistance Act of 
                1961 (22 U.S.C. 2318); or
                    ``(B) section 614 of the Foreign Assistance Act of 
                1961 (22 U.S.C. 2364);
            ``(2) any system provided to the Government of Ukraine 
        pursuant to the Ukraine Security Assistance Initiative 
        established under section 1250 of the National Defense 
        Authorization Act for Fiscal Year 2016 (Public Law 114-92), 
        including as amended by this Act, if such system was provided 
        to Ukraine after February 24, 2022; or
            ``(3) any system provided to the Government of Taiwan--
                    ``(A) pursuant to section 5502(b) of this Act; or
                    ``(B) that is necessary for a denial defense of 
                Taiwan.''.
    (c) Assessment on Expanding National Technology and Industrial 
Base.--Section 222d(b) of title 10, United States Code, as added by 
section 1701(d)(1) of the James M. Inhofe National Defense 
Authorization Act for Fiscal Year 2023 (Public Law 117-263), is amended 
by adding at the end the following new paragraph:
            ``(13) An assessment of the feasibility and advisability of 
        expanding the national technology and industrial base (as 
        defined in section 4801 of this title) to include entities 
        outside of the United States, Canada, the United Kingdom, New 
        Zealand, Israel, and Australia in order to increase the number 
        of suppliers of weapons described in section 1705(c) of the 
        James M. Inhofe National Defense Authorization Act for Fiscal 
        Year 2023 (Public Law 117-263), with particular attention to 
        member states of the North Atlantic Treaty Organization, treaty 
        allies of the United States in the Indo-Pacific, and members of 
        the Quadrilateral Security Dialogue.''.
    (d) Minimum Annual Production Levels.--The Secretary of Defense 
shall include minimum annual production levels for weapons described in 
section 1705(c) of the James M. Inhofe National Defense Authorization 
Act for Fiscal Year 2023 (Public Law 117-263) in any contract for the 
procurement of such weapons entered into on or after the date of the 
enactment of this Act.
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