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