[111th Congress Public Law 266]
[From the U.S. Government Printing Office]



[[Page 124 STAT. 2797]]

Public Law 111-266
111th Congress

                                 An Act


 
 To implement certain defense trade cooperation treaties, and for other 
             purposes. <<NOTE: Oct. 8, 2010 -  [S. 3847]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Security 
Cooperation Act of 2010.>> 
SECTION 1. <<NOTE: 22 USC 2751 note.>> SHORT TITLE.

    This Act may be cited as the ``Security Cooperation Act of 2010''.

TITLE I-- <<NOTE: Defense Trade Cooperation Treaties Implementation Act 
of 2010.>> DEFENSE TRADE COOPERATION TREATIES
SEC. 101. <<NOTE: 22 USC 2751 note.>> 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

[[Page 124 STAT. 2798]]

                                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,

[[Page 124 STAT. 2799]]

                                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 <<NOTE: 22 USC 2778.>> (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) <<NOTE: Deadlines. Applicability.>>  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

[[Page 124 STAT. 2800]]

        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. <<NOTE: 22 USC 2778 note.>> 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) <<NOTE: Applicability.>>  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;

[[Page 124 STAT. 2801]]

                    (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;

[[Page 124 STAT. 2802]]

                    (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.-- <<NOTE: Deadline. President. Reports.>> 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. <<NOTE: President. 22 USC 2778 note.>> 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. <<NOTE: 22 USC 2778 note.>> 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).

[[Page 124 STAT. 2803]]

  TITLE II-- <<NOTE: Naval Vessel Transfer Act of 2010.>> 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.-- <<NOTE: President.>> 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.-- <<NOTE: President.>> 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.-- <<NOTE: Time period.>> 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.

[[Page 124 STAT. 2804]]

                        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 <<NOTE: 22 USC 2753, 2761, 2776, 2796a, 
        2796b.>> 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''.

    Approved October 8, 2010.

LEGISLATIVE HISTORY--S. 3847:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 156 (2010):
            Sept. 27, considered and passed Senate.
            Sept. 28, considered and passed House.

                                  <all>