,i #aacth ,,congress #ast ,session ,h4 ,r4 #cdgj ,,in ,,the ,,house ,,of ,,representatives ,november #ac1 #bjac,mr4 ,royce 7for himself and ,mr4 ,engel7 introduced the following bill2 which was referred to the ,committee on ,foreign ,affairs ,a ,,bill ,to provide for the transfer of naval vessels to certain foreign countries1 and for other purposes4 #a4 ,short title and table of contents 7a7 ,short title ,this ,act may be cited as the ,naval ,vessel ,transfer and ,arms ,export ,control ,amendments ,act of #bjac4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title and table of contents4,title ,i--,transfer of naval vessels to certain foreign recipients,sec4 #aja4 ,transfer of naval vessels to certain foreign recipients4,title ,,ii--,arms ,export ,control ,act amendments,sec4 #bja4 ,increase in congressional notification thresholds4,sec4 #bjb4 ,licensing of certain commerce-controlled items4,sec4 #bjc4 ,amendments relating to removal of items from the ,united ,states ,munitions ,list4,sec4 #bjd4 ,amendment to definition of security assistance under the ,foreign ,assistance ,act of #aifa4,sec4 #bje4 ,amendments to definitions of defense article and defense service under the ,arms ,export ,control ,act4,sec4 #bjf4 ,revision of statutory references to former ,,nato support organizations and related ,,nato agreements4,sec4 #bjg4 ,technical amendments4 ,i ,transfer of naval vessels to certain foreign recipients #aja4 ,transfer of naval vessels to certain foreign recipients 7a7 ,transfers by grant ,the ,president is authorized to transfer vessels to foreign countries on a grant basis under section #eaf of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bcba;j71 as follows3 7#a7 ,mexico ,to the ,government of ,mexico1 the ,,oliver ,,hazard ,,perry class guided missile frigates ,,uss ,,curts 7,,ffg-#ch7 and ,,uss ,,mcclusky 7,,ffg-#da74 7#b7 ,thailand ,to the ,government of ,thailand1 the ,,oliver ,,hazard ,,perry class guided missile frigates ,,uss ,,rentz 7,,ffg-#df7 and ,,uss ,,vandegrift 7,,ffg-#dh74 7b7 ,transfer by sale ,the ,president is authorized to transfer the ,,oliver ,,hazard ,,perry class guided missile frigates ,,uss ,,taylor 7,,ffg-#ej71 ,,uss ,,gary 7,,ffg-#ea71 ,,uss ,,carr 7,,ffg-#eb71 and ,,uss ,,elrod 7,,ffg-#ee7 to the ,taipei ,economic and ,cultural ,representative ,office of the ,united ,states 7which is the ,taiwan instrumentality designated pursuant to section #aj7;a7 of the ,taiwan ,relations ,act 7#bb ,u4,s4,c4 #ccji7;a777 on a sale basis under section #ba of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgfa74 7c7 ,alternative transfer authority ,notwithstanding the authority provided in subsections 7a7 and 7b7 to transfer specific vessels to specific countries1 the ,president is authorized1 subject to the same conditions that would apply for such country under this ,act1 to transfer any vessel named in this ,act to any country named in this ,act such that the total number of vessels transferred to such country does not exceed the total number of vessels authorized for transfer to such country by this ,act4 7d7 ,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 7a7 or 7c7 shall not be counted against the aggregate value of excess defense articles transferred in any fiscal year under section #eaf of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bcba;j74 7e7 ,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 #eaf7;e7 of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bcba;j7e774 7f7 ,repair and refurbishment in united states shipyards ,to the maximum extent practicable1 the ,president shall require1 as a condition of the transfer of a vessel under this section1 that the recipient to which the vessel is transferred have such repair or refurbishment of the vessel as is needed1 before the vessel joins the naval forces of that recipient1 performed at a shipyard located in the ,united ,states1 including a ,united ,states ,navy shipyard4 7g7 ,expiration of authority ,the authority to transfer a vessel under this section shall expire at the end of the #c-year period beginning on the date of the enactment of this ,act4 ,,ii ,arms ,export ,control ,act amendments #bja4 ,increase in congressional notification thresholds 7a7 ,foreign military sales 7#a7 ,in general ,section #cf7;b77#a7 of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bggf7;b77#a77 is amended-- 7,a7 in the matter preceding subparagraph 7,a7-- 7i7 by striking #ej1jjj1jjj and inserting #ajj1jjj1jjj2 7ii7 by striking #bjj1jjj1jjj and inserting #cjj1jjj1jjj2 and 7iii7 by striking #ad1jjj1jjj and inserting #be1jjj1jjj2 and 7,b7 in the matter following subparagraph 7,p7-- 7i7 by inserting of any defense articles or defense services under this ,act for #bjj1jjj1jjj or more1 any design and construction services for #cjj1jjj1jjj or more1 or any major defense equipment for #ge1jjj1jjj or more1 after ,the letter of offer shall not be issued1 with respect to a proposed sale2 and 7ii7 by inserting of any defense articles or services under this ,act for #ajj1jjj1jjj or more1 any design and construction services for #bjj1jjj1jjj or more1 or any major defense equipment for #ej1jjj1jjj or more1 after or with respect to a proposed sale4 7#b7 ,technical and conforming amendments ,section #cf7;b7 of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bggf7;b77 is amended-- 7,a7 in paragraph 7#a71 by striking ,subject to paragraph 7#f71 in and inserting ,in2 7,b7 in paragraph 7#e77;,c71 by striking ,subject to paragraph 7#f71 if and inserting ,if2 and 7,c7 by striking paragraph 7#f74 7b7 ,commercial sales ,section #cf7;c7 of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bggf7;c77 is amended-- 7#a7 in paragraph 7#a7-- 7,a7 by striking ,subject to paragraph 7#e71 in and inserting ,in2 7,b7 by striking #ad1jjj1jjj and inserting #be1jjj1jjj2 and 7,c7 by striking #ej1jjj1jjj and inserting #ajj1jjj1jjj2 7#b7 in paragraph 7#b7-- 7,a7 in subparagraph 7,a71 by inserting after for an export the following3 of any major defense equipment sold under a contract in the amount of #ge1jjj1jjj or more or of defense articles or defense services sold under a contract in the amount of #bjj1jjj1jjj or more1 7or1 in the case of a defense article that is a firearm controlled under category ,i of the ,united ,states ,munitions ,list1 #a1jjj1jjj or more72 and 7,b7 in subparagraph 7,c71 by inserting after license the following3 for an export of any major defense equipment sold under a contract in the amount of #ej1jjj1jjj or more or of defense articles or defense services sold under a contract in the amount of #ajj1jjj1jjj or more1 7or1 in the case of a defense article that is a firearm controlled under category ,i of the ,united ,states ,munitions ,list1 #a1jjj1jjj or more72 7#c7 by striking paragraph 7#e72 and 7#d7 by redesignating paragraph 7#f7 as paragraph 7#e74 #bjb4 ,licensing of certain commerce-controlled items ,section #ch of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bggh7 is amended by adding at the end the following new subsection3 7k7 ,licensing of certain commerce-,controlled items 7#a7 ,in general ,a license or other approval from the ,department of ,state granted in accordance with this section may also authorize the export of items subject to the ,export ,administration ,regulations if such items are to be used in or with defense articles controlled on the ,united ,states ,munitions ,list4 7#b7 ,other requirements ,the following requirements shall apply with respect to a license or other approval to authorize the export of items subject to the ,export ,administration ,regulations under paragraph 7#a73 7,a7 ,separate approval from the ,department of ,commerce shall not be required for such items if such items are approved for export under a ,department of ,state license or other approval4 7,b7 ,such items subject to the ,export ,administration ,regulations that are exported pursuant to a ,department of ,state license or other approval would remain under the jurisdiction of the ,department of ,commerce with respect to any subsequent transactions4 7,c7 ,the inclusion of the term subject to the ,,ear or any similar term on a ,department of ,state license or approval shall not affect the jurisdiction with respect to such items4 7#c7 ,definition ,in this subsection1 the term ,export ,administration ,regulations means-- 7,a7 the ,export ,administration ,regulations as maintained and amended under the authority of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq472 or 7,b7 any successor regulations4 4 #bjc4 ,amendments relating to removal of items from the ,united ,states ,munitions ,list 7a7 ,requirements for removal of major defense equipment and significant military equipment from the united states munitions list ,section #ch7;f7 of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bggh7;f77 is amended by adding at the end the following3 7#e7 7,a7 ,except as provided in subparagraph 7,b71 the ,president shall take such actions as may be necessary to ensure that any major defense equipment or significant military equipment that is removed from the ,united ,states ,munitions ,list and transferred to the ,commerce ,control ,list for purposes of commercial export is not subsequently modified so as to transform such equipment into a defense article4 7,b7 ,the ,president may authorize the transformation of major defense equipment or significant military equipment that is removed from the ,united ,states ,munitions ,list and transferred to the ,commerce ,control ,list for purposes of commercial export into a defense article if the ,president-- 7i7 determines that such transformation is appropriate and in the national interests of the ,united ,states2 and 7ii7 provides notice of such transformation to the chairman of the ,committee on ,foreign ,affairs of the ,house of ,representatives and the chairman of the ,committee on ,foreign ,relations of the ,senate consistent with the notification requirements of section #cf7;b77#e77;,a7 of this ,act4 7,c7 ,in this paragraph-- 7i7 the term ,commerce ,control ,list means-- 7,i7 items transferred from the ,united ,states ,munitions ,list to the ,commerce ,control ,list and designated as #fjj series items on the ,commerce ,control ,list under the ,export ,administration ,regulations1 as proposed by the ,bureau of ,industry and ,security of the ,department of ,commerce on ,july #ae1 #bjaa 7#gf ,fed4 ,reg4 #daieh72 or 7,,ii7 any successor regulations2 and 7ii7 the term defense article means an item designated by the ,president pursuant to subsection 7a77#a74 4 7b7 ,notification and reporting requirements for major defense equipment and significant military equipment removed from the united states munitions list ,section #ch7;f7 of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bggh7;f771 as amended by this section1 is further amended by adding at the end the following3 7#f7 ,the ,president shall ensure that any item that is major defense equipment or significant military equipment and is removed from the ,united ,states ,munitions ,list shall continue to be subject to the notification and reporting requirements of the following provisions of law3 7,a7 ,section #eaf7;f7 of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bcba;j7f774 7,b7 ,section #fee of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bdae74 7,c7 ,section #c7;d77#c77;,a7 of this ,act4 7,d7 ,section #be of this ,act4 7,e7 ,sections #cf7;b71 7c71 and 7d7 of this ,act4 4 #bjd4 ,amendment to definition of security assistance under the ,foreign ,assistance ,act of #aifa ,section #ejb;,b7d7 of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bcjd7;d77 is amended-- 7#a7 in paragraph 7#a71 by striking and at the end2 7#b7 in paragraph 7#b77;,c7 to read as follows3 7,c7 any license in effect with respect to the export to or for the armed forces1 police1 intelligence1 or other internal security forces of a foreign country of-- 7i7 defense articles or defense services under section #ch of the ,armed ,export ,control ,act2 or 7ii7 #fjj series items on the ,commerce ,control ,list under the ,export ,administration ,regulations1 as proposed by the ,bureau of ,industry and ,security of the ,department of ,commerce on ,july #ae1 #bjaa 7#gf ,fed4 ,reg4 #daieh71 or any successor regulations2 2 and 7#c7 by adding at the end the following new paragraphs3 7#c7 the term ,commerce ,control ,list means-- 7,a7 items transferred from the ,united ,states ,munitions ,list to the ,commerce ,control ,list and designated as #8#fjj series' items on the ,commerce ,control ,list under the ,export ,administration ,regulations1 as proposed by the ,bureau of ,industry and ,security of the ,department of ,commerce on ,july #ae1 #bjaa 7#gf ,fed4 ,reg4 #daieh72 or 7,b7 any successor regulations2 and 7#d7 the term ,export ,administration ,regulations means-- 7,a7 the ,export ,administration ,regulations as maintained and amended under the authority of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq472 or 7,b7 any successor regulations4 4 #bje4 ,amendments to definitions of defense article and defense service under the ,arms ,export ,control ,act ,section #dg of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgid7 is amended-- 7#a7 in the matter preceding subparagraph 7,a7 of paragraph 7#c71 by striking includes and inserting means1 with respect to a sale or transfer by the ,united ,states under the authority of this ,act or any other foreign assistance or sales program of the ,united ,states2 and 7#b7 in paragraph 7#d71 by striking includes and inserting means1 with respect to a sale or transfer by the ,united ,states under the authority of this ,act or any other foreign assistance or sales program of the ,united ,states14 #bjf4 ,revision of statutory references to former ,,nato support organizations and related ,,nato agreements ,section #ba7;e77#c7 of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgfa7;e77#c77 is amended-- 7#a7 in subparagraphs 7,a7 and 7,c77i71 by striking ,maintenance and ,supply ,agency of the ,north ,atlantic ,treaty ,organization and inserting ,north ,atlantic ,treaty ,organization 7,,nato7 ,support ,organization and its executive agencies2 and 7#b7 in subparagraph 7,c77i77,,ii71 by striking a specific weapon system and inserting activities4 #bjg4 ,technical amendments ,the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgea et seq47 is amended-- 7#a7 in sections #c7;a71 #c7;d77#a71 #c7;d77#c77;,a71 #c7;e71 #e7;c71 #f1 #ba7;g71 #cf7;a71 #cf7;b77#a71 #cf7;b77#e77;,c71 #cf7;c77#a71 #cf7;f71 #ch7;f77#a71 #dj7;f77#a71 #dj7;g77#b77;,b71 #aja7;b71 and #ajb7;a77#b71 by striking the ,speaker of the ,house of ,representatives and each place it appears and inserting the ,speaker of the ,house of ,representatives1 the ,committee on ,foreign ,affairs of the ,house of ,representatives1 and2 7#b7 in section #ba7;i77#a7 by inserting after the ,speaker of the ,house of ,representatives the following 1 the ,committees on ,foreign ,affairs and ,armed ,services of the ,house of ,representatives12 7#c7 in sections #be7;e71 #ch7;f77#b71 #ch7;j77#c71 and #ch7;j77#d77;,b71 by striking ,international ,relations each place it appears and inserting ,foreign ,affairs2 7#d7 in sections #bg7;f7 and #fb7;a71 by inserting after the ,speaker of the ,house of ,representatives1 each place it appears the following3 the ,committee on ,foreign ,affairs of the ,house of ,representatives12 and 7#e7 in section #gc7;e77#b71 by striking the ,committee on ,national ,security and the ,committee on ,international ,relations of the ,house of ,representatives and inserting the ,committee on ,armed ,services and the ,committee on ,foreign ,affairs of the ,house of ,representatives4