    [United States Statutes at Large, Volume 124, 111th Congress, 2nd Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    Public Law 111-266
    111th Congress

    An Act

    To implement certain defense trade cooperation treaties, 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 ``Security Cooperation Act of 2010''.

    TITLE I-- <> DEFENSE TRADE COOPERATION TREATIES
    SEC. 101. <> 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 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 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 <> (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) <>  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 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. <> 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) <>  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 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 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.-- <> 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. <> 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. <> 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 2803]]

    TITLE II-- <> 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.-- <> 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.-- <> 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.-- <> 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 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 <> 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.