[Congressional Record Volume 162, Number 90 (Wednesday, June 8, 2016)]
[Senate]
[Page S3656]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 4575. Mr. McCAIN submitted an amendment intended to be proposed by 
him to the bill S. 2943, to authorize appropriations for fiscal year 
2017 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle H of title VIII, add the following:

     SEC. 899C. IMPROVED DEFENSE COOPERATION AND ACCESS TO 
                   COMMERCIAL INNOVATION.

       (a) Competitive Pricing Discretion in Foreign Military 
     Sales Contracting.--Section 22(d)(1) of the Arms Export 
     Control Act (22 U.S.C. 2762(d)(1)) is amended by striking 
     ``shall'' and inserting ``may, at the discretion of the 
     Secretary of Defense,''.
       (b) Commercial Item ITAR Exemption.--Any commercial item as 
     defined in section 103 of title 41, United States Code, that 
     is incorporated in a defense product shall be regulated under 
     the Export Administration Regulations (part 730 of title 15, 
     Code of Federal Regulations) and exempt from regulation under 
     the International Traffic in Arms Regulations (subchapter M 
     of chapter I of title 22, Code of Federal Regulations) unless 
     the Secretary of Defense or the Secretary of State makes a 
     written determination prior to incorporation of the 
     commercial item in the defense product that the International 
     Traffic in Arms Regulations should apply.
       (c) Post-export Supply Chain Transfers Within National 
     Technology Industrial Base Countries.--The government of a 
     country that is part of the national technology industrial 
     base (as that term is defined in section 2500 of title 10, 
     United States Code) may transfer United States-origin 
     material within that government's supply chain without 
     further United States Government approval or the need to 
     comply with additional export licensing requirements provided 
     that the material remains in the ownership of such 
     government.
       (d) Integration of Supply Chain Within National Technology 
     Industrial Base.--
       (1) In general.--A company included on the list under 
     paragraph (2) with facilities in both the United States and 
     in a country that is part of the national technology 
     industrial base (as that term is defined in section 2500 of 
     title 10, United States Code) may transfer controlled 
     material between a United States facility and a facility 
     located in a national technology industrial base country 
     without the need for United States Government approval or the 
     need for an additional export control license. Any such 
     transfer must comply with United States security 
     classification requirements.
       (2) Approved company list.--The list referred to in 
     paragraph (1) is a list maintained by the Secretary of 
     Defense and the Secretary of State of companies the 
     Secretaries have determined are qualified for the streamlined 
     transfer authority under such paragraph.
       (e) Non-missile Technology Exports.--Export control 
     policies, procedures, and practices specific to implementing 
     the Missile Technology Control Regime shall not apply to the 
     review and approval of exports of non-missile technologies 
     such as unmanned autonomous vehicles, optionally piloted 
     vehicles, and commercial space craft.
       (f) Implementation of Treaties on Defense Cooperation.--The 
     Secretary of State and the Secretary of Defense shall conduct 
     a review of the exempted technologies lists that apply to 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 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 June 21 and 26, 2007, with the aim 
     of reducing the applicable lists to the minimum compatible 
     with international obligations.
       (g) Enhancing Program Licensing.--Not later than September 
     30, 2018, the Secretary of Defense and the Secretary of State 
     shall establish a structure for implementing a revised 
     program export licensing framework intended to provide 
     comprehensive export licensing authorization to support large 
     international cooperative defense programs between multiple 
     nations and determine what, if any, regulatory authorities 
     require modification.
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